Changes from plenary report to adopted text

RemovedSUGGESTIONS

AddedIMPROVEMENT OF INTERINSTITUTIONAL COOPERATION IN BUDGETARY MATTERS

RemovedA. Whereas an overall political agreement was reached on 10 November 2020 between representatives of the European Parliament, the Council and the Commission on the Multiannual Financial Framework (MFF) for 2021-2027, Own resources and Recovery Instrument; 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 for the introduction of new own resources (“the IIA”);

AddedA. INTERINSTITUTIONAL COOPERATION PROCEDURE

RemovedB. Whereas the IIA contains for the first time provisions on the own resources, namely a new Annex setting out a roadmap towards the introduction of new own resources over the period of the multiannual financial framework 2021-2027 that are sufficient to cover the interests and repayment costs of the Recovery Instrument (Next Generation EU), and which revenues in excess of the needs for repayment shall continue to fund the Union budget as general revenue in line with the principle of universality;

Added14. The details of interinstitutional cooperation during the budgetary procedure are set out in Annex I.

RemovedC. Whereas the IIA contains a new part on cooperation as regards the Recovery Instrument / Next Generation EU (NGEU) that aims to ensure an appropriate involvement of the budgetary authority in the governance of external assigned revenue under NGEU; whereas such 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;

Added15. In line with Article 312(5) TFEU, the Institutions shall take any measure necessary to facilitate the adoption of a new MFF or a revision thereof, in accordance with the special legislative procedure referred to in Article 312(2) of the TFEU. Such measures will include regular meetings and exchange of information between the European Parliament and the Council and, on the initiative of the Commission, meetings of the Presidents of the Institutions as set out in Article 324 TFEU in order to promote consultation and the reconciliation of the positions of the Institutions. Where a proposal for a new MFF or for a substantial revision has been presented, the Institutions will seek to determine specific arrangements for cooperation and dialogue between them throughout the procedure leading to its adoption.

RemovedD. Whereas the IIA contains significant improvements when it comes to the design and implementation of methodologies for tracking the 30% climate spending target, for developing a new MFF biodiversity spending target of 7,5% from 2024 and 10% in 2026 and 2027, and for measuring gender expenditure, including the promotion of gender mainstreaming;

AddedBudgetary transparency

RemovedE. Whereas the IIA contains a new part on the quality and comparability of data on beneficiaries aiming at the introduction of standardised measures to collect, compare and aggregate information and figures on the final beneficiaries of Union funding;

Added16. The Commission shall prepare an annual report to accompany the general budget of the Union, bringing together available non-confidential information relating to:

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

Added(a) the assets and liabilities of the Union, including those arising from borrowing and lending operations carried out by the Union in accordance with its powers under the Treaties;

RemovedG. Whereas the IIA includes for the first time provisions related to cooperation and dialogue during the negotiation of the MFF, aimed at operationalising the Treaty requirements to take any measure necessary to facilitate the adoption of an MFF and to promote consultation and the reconciliation of positions in budgetary matters;

Added(b) the revenue, expenditure, assets and liabilities of the European Development Fund, the European Financial Stability Facility, the European Stability Mechanism, and other possible future mechanisms;

RemovedH. Whereas the new IIA, finally, secures existing provisions on the mobilisation of special instruments and further targeted adjustments on the transparency of programming and forecasts;

Added(c) the expenditure incurred by Member States in the framework of enhanced cooperation, to the extent that it is not included in the general budget of the Union;

Removed1. Approves the conclusion of the agreement.

Added(d) climate expenditure, on the basis of an effective methodology set out by the Commission and, where relevant, in accordance with sectoral legislation, for monitoring climate spending and its performance with a view to achieving an overall target of at least 30 % of the total amount of the Union budget and the European Union Recovery Instrument expenditures supporting climate objectives, taking into consideration the effects of the phasing out of the funding under the European Union Recovery Instrument and differentiating between climate change mitigation and adaptation, where feasible.

AddedWhere there is insufficient progress towards the climate spending target in one or more of the relevant programmes, the Institutions, in accordance with their responsibilities and the relevant legislation, will consult each other on appropriate measures to be taken to ensure that Union spending on climate objectives over the entire MFF 20212027 corresponds to at least 30 % of the total amount of the Union budget and the European Union Recovery Instrument expenditures;

Added(e) expenditure contributing to halting and reversing the decline of biodiversity, on the basis of an effective, transparent and comprehensive methodology set out by the Commission, in cooperation with the European Parliament and with the Council, and, where relevant, in accordance with sectoral legislation, with a view to working towards the ambition of providing 7,5 % in 2024 and 10 % in 2026 and in 2027 of annual spending under the MFF to biodiversity objectives, while considering the existing overlaps between climate and biodiversity goals;

Added(f) the promotion of equality between women and men as well as rights and equal opportunities for all throughout the implementation and monitoring of the relevant programmes, and the mainstreaming of those objectives as well as gender mainstreaming, including by strengthening the assessment of gender impact in impact assessments and evaluations under the Better Law-Making framework. The Commission will examine how to develop a methodology to measure the relevant expenditure at programme level in the MFF 2021-2027. The Commission will use that methodology as soon as it is available. No later than 1 January 2023, the Commission will implement that methodology for certain centrally managed programmes to test its feasibility. At mid-term, it will be explored whether the methodology can be extended to other programmes for the remainder of the MFF 2021-2027;

Added(g) the implementation of the United Nations Sustainable Development Goals in all relevant Union programmes of the MFF 20212027.

AddedThe effective methodologies referred to in points (d) and (e) of the first paragraph will, as far as possible include a reference to the contribution of the Union budget to the European Green Deal, which includes the "do no harm" principle.

AddedThe effective methodology referred to in point (d) of the first paragraph will be transparent, comprehensive, result-oriented and performance-based, will include annual consultation by the Commission of the European Parliament and of the Council, and will identify relevant measures to be taken in case of insufficient progress towards achieving applicable targets.

AddedNone of the methodologies referred to in this point should lead to an excessive administrative burden on project holders or on beneficiaries.

Added17. The Commission shall prepare an annual report on the implementation of the European Union Recovery Instrument. That annual report shall bring together available non-confidential information relating to:

Addedassets and liabilities arising from borrowing and lending operations carried out under Article 5 of the Own Resources Decision;

Addedthe aggregate amount of proceeds assigned to Union programmes in implementation of the European Union Recovery Instrument in the previous year, broken down by programme and budget line;

Addedthe contribution of the borrowed funds to the achievements of the objectives of the European Union Recovery Instrument and the specific Union programmes.

AddedB. INCORPORATION OF FINANCIAL PROVISIONS IN LEGISLATIVE ACTS

Added18. Each legislative act, concerning a multiannual programme, adopted in accordance with the ordinary legislative procedure shall contain a provision in which the legislator lays down the financial envelope for the programme.

AddedThat amount shall constitute the prime reference amount for the European Parliament and for the Council during the annual budgetary procedure.

AddedFor programmes referred to in Annex II to the MFF Regulation, the prime reference amount is automatically increased by the additional allocations referred to in Article 5(1) of the MFF Regulation.

AddedThe European Parliament and the Council, and the Commission when it draws up the draft budget, undertake not to depart by more than 15 % from that amount for the entire duration of the programme concerned, unless new, objective, long-term circumstances arise for which explicit and precise reasons are given, with account being taken of the results obtained from implementing the programme, in particular on the basis of assessments. Any increase resulting from such variation shall remain beneath the existing ceiling for the heading concerned, without prejudice to the use of instruments referred to in the MFF Regulation and in this Agreement.

AddedThe fourth paragraph does not apply to the additional allocations referred to in the third paragraph.

AddedThis point does not apply to appropriations for cohesion adopted in accordance with the ordinary legislative procedure and pre-allocated per Member State which contain a financial envelope for the entire duration of the programme or to the large-scale projects referred to in Article 18 of the MFF Regulation.

Added19. Legally binding Union acts concerning multiannual programmes that are not adopted in accordance with the ordinary legislative procedure shall not contain an "amount deemed necessary".

AddedShould the Council wish to include a financial reference amount, that amount shall be taken as illustrating the will of the legislator and shall not affect the budgetary powers of the European Parliament and of the Council as set out in the TFEU. A provision to that effect shall be included in all legally binding Union acts which contain such a financial reference amount.

AddedC. EXPENDITURE RELATING TO FISHERIES AGREEMENTS

Added20. Expenditure on fisheries agreements shall be subject to the following specific rules.

AddedThe Commission undertakes to keep the European Parliament regularly informed about the preparation and conduct of the negotiations on fisheries agreements, including the budgetary implications of those agreements.

AddedIn the course of the legislative procedure relating to fisheries agreements, the Institutions undertake to make every effort to ensure that all procedures are carried out as quickly as possible.

AddedAmounts provided for in the budget for new fisheries agreements or for the renewal of fisheries agreements which enter into force after 1 January of the financial year concerned shall be put in reserve.

AddedIf appropriations relating to fisheries agreements, including the reserve, prove insufficient, the Commission shall provide the European Parliament and the Council with the necessary information on the causes of the situation and on measures which might be adopted under established procedures. Where necessary, the Commission shall propose appropriate measures.

AddedEach quarter, the Commission shall present to the European Parliament and to the Council detailed information about the implementation of fisheries agreements in force and a financial forecast for the remainder of the year.

Added21. Without prejudice to the relevant procedure governing the negotiation of fisheries agreements, the European Parliament and the Council commit themselves, in the framework of budgetary cooperation, to arrive at a timely agreement on the adequate financing of fisheries agreements.

AddedD. FINANCING OF THE COMMON FOREIGN AND SECURITY POLICY (CFSP)

Added22. The total amount of CFSP operating expenditure shall be entered entirely in one budget chapter, entitled CFSP. That amount shall cover the real predictable needs, assessed in the framework of the establishment of the draft budget, on the basis of forecasts drawn up annually by the High Representative of the Union for Foreign Affairs and Security Policy (the "High Representative"). A reasonable margin shall be allowed to cover unforeseen actions. No funds may be entered in a reserve.

Added23. As regards CFSP expenditure which is charged to the Union budget in accordance with Article 41 of the Treaty on European Union, the Institutions shall endeavour, in the Conciliation Committee as referred to in Article 314(5) TFEU, and on the basis of the draft budget established by the Commission, to secure agreement each year on the amount of the operating expenditure, and on the distribution of that amount between the articles of the CFSP budget chapter. In the absence of agreement, it is understood that the European Parliament and the Council shall enter in the budget the amount contained in the previous budget or the amount proposed in the draft budget, whichever is the lower.

AddedThe total amount of CFSP operating expenditure shall be distributed between the articles of the CFSP budget chapter as suggested in the third paragraph. Each article shall cover actions already adopted, actions which are foreseen but not yet adopted and amounts for future that is unforeseen actions to be adopted by the Council during the financial year concerned.

AddedWithin the CFSP budget chapter, the articles into which the CFSP actions are to be entered could read along the following lines:

Addedsingle major missions as referred to in point (g) of Article 52(1) of the Financial Regulation;

Addedother missions (for crisis management operations, conflict prevention, resolution and stabilisation, and monitoring and implementation of peace and security processes);

Addednon-proliferation and disarmament;

Addedemergency measures;

Addedpreparatory and follow-up measures;

AddedEuropean Union Special Representatives.

AddedSince, under the Financial Regulation, the Commission has the authority to transfer appropriations autonomously between articles within the CFSP budget chapter, the flexibility deemed necessary for speedy implementation of CFSP actions shall accordingly be assured. In the event of the amount of the CFSP budget chapter during the financial year being insufficient to cover the necessary expenses, the European Parliament and the Council shall seek a solution as a matter of urgency, on a proposal from the Commission.