Changes from plenary report to adopted text

The European Parliament,

– having regard to the Commission proposal of 2 May 2018 for an Interinstitutional Agreement between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (COM(2018)0323) and the amended proposal (COM(2020)0444),

– having regard to the draft interinstitutional agreement between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap for the introduction of new own resources,

– having regard to Articles 295, 310, 311, 312, 323 and 324 of the Treaty on the Functioning of the European Union (TFEU),

– having regard to the Paris Agreement adopted at the twenty-first session of the Conference of the Parties (COP21) to the United Nations Framework Convention on Climate Change, held in Paris, in December 2015,

– having regard to its resolution of 14 November 2018 on the Multiannual Financial Framework 2021-2027 – Parliament’s position with a view to an agreement,

– having regard to its resolution of 10 October 2019 on the 2021-2027 multiannual financial framework and own resources: time to meet citizens’ expectations,

– having regard to its resolution of 17 April 2020 on EU coordinated action to combat the COVID-19 pandemic and its consequences,

– having regard to its resolution of 15 May 2020 on the new multiannual financial framework, own resources and the recovery plan,

– having regard to the conclusions of the European Council adopted on 21 July 2020,

– having regard to its resolution of 23 July 2020 on the conclusions of the extraordinary European Council meeting of 17-21 July 2020,

– having regard to its legislative resolution of 16 September 2020 on the draft Council decision on the system of own resources of the European Union,

– having regard to Rule 148(1) of its Rules of Procedure,

– having regard to the letter from the Committee on Budgets,

– having regard to the report of the Committee on Constitutional Affairs (A9-0261/2020),

A. Whereas it is appropriate to adopt, in the context of the multiannual financial framework (MFF), an interinstitutional agreement setting out provisions for its implementation;

B. Whereas an overall political agreement was reached on 10 November 2020 between representatives of the European Parliament, the Council and the Commission on the MFF for 2021-2027, on own resources and on the European Recovery Instrument (Next Generation EU(NGEU));

C. Whereas such political agreement includes a renewed Interinstitutional Agreement on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources (“the IIA”);

D. Whereas, furthermore, a political agreement was reached on 5 November 2020 on the proposal for a regulation of the European Parliament and of the Council on the protection of the Union’s budget in case of generalised deficiencies as regards the rule of law in the Member States;

E. Whereas this new agreement will replace the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management;

F. Whereas the implementation of the budgetary discipline and cooperation between the institutions on budgetary matters and sound financial management requires the Council to share necessary information with Parliament in the framework of the discharge procedure concerning the European Council and the Council, so as to ensure that Parliament has the necessary information on how the Council is implementing its budget, either directly or via the Commission;

G. Whereas the new agreement contains important new elements in particular a roadmap for the introduction of new own resources during the next seven years, provisions on enhanced budgetary scrutiny of the spending of NGEU funding and arrangements to monitor spending on climate and biodiversity objectives and on gender equality and mainstreaming;

H. Whereas the IIA contains for the first time provisions on the own resources of the European Union, namely a new Annex setting out a roadmap towards the introduction of new own resources over the MFF period 2021-2027 that will be sufficient to cover the interests and repayment costs of the European Union Recovery Instrument (NGEU); whereas the roadmap adds credibility and sustainability to the amendment to the Own Resources decision ensuring that the own resources ceilings are sufficiently high to be able to cover the Union's liability, in accordance with the principle of budgetary discipline within the meaning of Article 310(4) TFEU; whereas revenue from own resources in excess of the needs for repayment will continue to fund the Union budget as general revenue in line with the principle of universality; whereas the roadmap does not preclude further proposals for new own resources during the financial period 2021-2027;

I. Whereas the IIA contains a new part on cooperation as regards the European Union Recovery Instrument (NGEU) that aims to ensure appropriate involvement of the budgetary authority in the governance of external assigned revenue under NGEU; whereas that part refers to a new Joint declaration on budgetary scrutiny of new proposals based on Article 122 TFEU with potential appreciable implications for the Union budget;

J. Whereas the agreement provides for the monitoring of spending across Union programmes on climate and biodiversity objectives, gender equality and the United Nations Sustainable Development Goals; whereas the IIA contains significant improvements concerning the design and implementation of methodologies for tracking the climate spending target of 30 % of the overall Union budget and the European Union Recovery Instrument expenditures, for developing a new MFF biodiversity annual spending target of 7,5 % from 2024 and 10 % in 2026 and 2027, and for measuring gender expenditure, including the promotion of gender mainstreaming;

L. Whereas the IIA is understood to be horizontal in application and does not preclude the co-legislators from agreeing, within the scope of a specific regulation, to additional measures to improve the quality and comparability of data, particularly as regards direct management programmes, or to further improve the involvement of the budgetary authority in the governance of external assigned revenue;

M. Whereas the IIA includes for the first time provisions relating to cooperation and dialogue on the part of the institutions during the negotiations on the MFF, with the aim of operationalising the treaty requirements according to which the institutions are to take any measure necessary to facilitate the adoption of an MFF and to promote consultation and the reconciliation of their positions on budgetary matters;

N. Whereas the IIA safeguards existing provisions and includes new arrangements on the mobilisation of special instruments, namely the European Globalisation Adjustment Fund, the Solidarity and Emergency Aid Reserve, the Brexit Adjustment Reserve, the Single Margin Instrument and the Flexibility Instrument;

O. Whereas the IIA provides for further targeted adjustments on the transparency of programming and forecasts;

P. Whereas the European Union Recovery Instrument includes a new Recovery and Resilience Facility; whereas it is appropriate, in the context of the political agreement reached on the European Union Recovery Instrument and the involvement of the budgetary authority in the governance of external assigned revenue under this instrument, to recall the need for an objective, fair and transparent legal framework for the selection of the projects that will be funded under the Recovery and Resilience Facility, as well as to highlight the role of regional and local authorities in helping to achieve a recovery that is symmetrical not only between Member States but also between regions.

1. Approves the conclusion of the agreement annexed hereto;

2. Instructs its President to sign the agreement with the President of the Council and the President of the Commission and arrange for its publication in the Official Journal of the European Union;

3. Instructs its President to forward this decision, including its annex, to the Council and the Commission for information.