Changes from plenary report to adopted text

RemovedDRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

AddedTEXTS ADOPTED

Removedon the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council on a general regime of conditionality for the protection of the Union budget

AddedP8_TA(2019)0038

Removed(09980/1/2020 – C9-0407/2020 – 2018/0136(COD))

AddedProtection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States ***I

Removed(Ordinary legislative procedure: second reading)

AddedCommittee on Budgets

Change 1

RemovedThe European Parliament,

AddedCommittee on Budgetary Control

Removed– having regard to the Council position at first reading (09980/1/2020 – C90407/2020),

AddedPE628.374

Removed– having regard to the opinion of the Court of Auditors of 17 August 2018,

AddedAmendments adopted by the European Parliament on 17 January 2019 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 (COM(2018)0324 – C8-0178/2018 – 2018/0136(COD))

Removed– having regard to the opinion of the Commission (COM(2020)0843),

Added(Ordinary legislative procedure: first reading)

Removed– having regard to its position at first reading on the Commission proposal to Parliament and the Council (COM(2018)0324),

AddedRecital 1: (1) The Union is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities, enshrined in Article 2 of the Treaty on European Union (TEU) and in the criteria for Union membership. As recalled by Article 2 TEU, those values are common to the Member States in a society in which pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail.

Removed– having regard to Article 294(7) of the Treaty on the Functioning of the European Union,

AddedRecital 1 a (new): (1a) Member States should uphold their obligations and set an example by genuinely fulfilling them and move towards a shared culture of the rule of law as a universal value to be applied by all concerned even-handedly. Full respect for and promotion of those principles is an essential prerequisite for the legitimacy of the European project as a whole and a basic condition for building citizens' trust in the Union and ensuring the effective implementation of its policies.

Removed– having regard to the provisional agreement approved by the committees responsible under Rule 74(4) of its Rules of Procedure,

AddedRecital 1 b (new): (1b) In accordance with Article 2, Article 3(1) and Article 7 TEU, the Union has the possibility to act in order to protect its constitutional core and the common values on which it was founded, including its budgetary principles. Member States, Union institutions, bodies, offices and agencies, and candidate countries are obliged to respect, protect and promote those principles and values, and they have a duty of sincere cooperation.

Removed– having regard to Rule 67 of its Rules of Procedure,

AddedRecital 2: (2) The rule of law requires that all public powers act within the constraints set out by law, in accordance with the values of democracy and respect for fundamental rights, and under the control of independent and impartial courts. It requires, in particular, that the principles of legality7, including a transparent, accountable and democratic process for enacting law, legal certainty8, prohibition of arbitrariness of the executive powers9, separation of powers10, access to justice and effective judicial protection before independent and impartial courts11 are respected12. Those principles are reflected inter alia at the level of the Venice Commission of the Council of Europe and also on the basis of the relevant case law of the European Court of Human Rights12a. / 11 Judgment of the Court of Justice of 27 February 2018, Associação Sindical dos Juízes Portugueses v Tribunal de Contas C-64/16, ECLI:EU:C:2018:117, paragraphs 31, 40-41; judgment of the Court of Justice of 25 July 2018, LM, C-216/18 PPU, ECLI:EU:C:2018:586, paragraphs 63-67. / 12a Report of the Venice Commission of 4 April 2011 Study No. 512/2009 (CDL-AD(2011)003rev).

Removed– having regard to the recommendation for second reading of the Committee on Budgets and the Committee on Budgetary Control (A9-0262/2020),

AddedRecital 2 a (new): (2a) The accession criteria, or Copenhagen criteria, established by the Copenhagen European Council in 1993 and strengthened by the Madrid European Council in 1995, are the essential conditions that all candidate countries must satisfy to become a Member State. Those criteria include the stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities; a functioning market economy and the capacity to cope with competition and market forces; and the ability to meet the obligations of Union membership.

Removed1. Approves the Council position at first reading;

AddedRecital 2 b (new): (2b) The failure of a candidate country to meet the required standards, values and democratic principles results in that country’s accession to the Union being delayed until it fully meets those standards. The obligations incumbent on candidate countries under the Copenhagen criteria continue to apply to Member States after joining the Union by virtue of Article 2 TEU and the principle of sincere cooperation enshrined in Article 4 TEU. Member States should therefore be assessed on a regular basis in order to verify that their laws and practices continue to comply with those criteria and the common values on which the Union is founded, thereby providing a sound legal and administrative framework for the implementation of Union policies.

Removed2. Approves the joint statement by Parliament, the Council and the Commission annexed to this resolution;

AddedRecital 3: (3) While there is no hierarchy among Union values, respect for the rule of law is essential for the protection of the other fundamental values on which the Union is founded, such as freedom, democracy, equality and respect for human rights. Respect for the rule of law is intrinsically linked to respect for democracy and for fundamental rights: there can be no democracy and respect for fundamental rights without respect for the rule of law and vice versa. Coherence and consistency of internal and external democracy, rule of law and fundamental rights policy is key to the credibility of the Union.

Removed3. Takes note of the Commission statement annexed to this resolution;

AddedRecital 6: (6) Independence and impartiality of the judiciary should always be guaranteed and investigation and prosecution services should be able to properly execute their function. They should be endowed with sufficient resources and procedures to act effectively and in full respect of the right to a fair trial. These conditions are required as a minimum guarantee against unlawful and arbitrary decisions by public authorities that could impair these fundamental principles and harm the financial interests of the Union.

Removed4. Notes that the act is adopted in accordance with the Council position;

AddedRecital 7 a (new): (7a) The independence of the prosecution and the judiciary comprises both the formal (de jure) and actual (de facto) independence of the prosecution and the judiciary and the individual prosecutors and judges.

Removed5. Instructs its President to sign the act with the President of the Council, in accordance with Article 297(1) of the Treaty on the Functioning of the European Union;

AddedRecital 8: (8) Respect for the rule of law is not only essential for citizens of the Union, but also for business initiatives, innovation, investment, economic, social and territorial cohesion and the proper functioning of the internal market, which will flourish sustainably only where a solid legal and institutional framework is in place.

Removed6. Instructs its Secretary-General to sign the act, once it has been verified that all the procedures have been duly completed, and, in agreement with the Secretary-General of the Council, to arrange for its publication in the Official Journal of the European Union;

AddedRecital 8 a (new): (8a) Integrating existing Union monitoring mechanisms, such as the Cooperation and Verification Mechanism, the Justice Scoreboard and the Anti-Corruption reports, into a broader rule of law monitoring framework could provide more efficient and effective control mechanisms for the protection of the financial interest of the Union.

Removed7. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

AddedRecital 8 b (new): (8b) Lack of transparency, arbitrary discrimination, distortion of competition and an uneven playing field within and outside the internal market, impact on the integrity of the single market and on the fairness, stability and legitimacy of the tax system, increased economic inequalities, unfair competition between states, social dissatisfaction, mistrust and democratic deficit are some of the negative effects of harmful tax practices.