Changes from plenary report to adopted text

RemovedArticle 138 – paragraph 2 – subparagraph 4 – point l: (l) beneficial owners and any affiliated entities of the person or entity referred to in points (k) and (j).

RemovedArticle 139 – paragraph 1 – point e – point iii: (iii) been discovered by the Commission, an authorising officer, OLAF, the Court of Auditors, the EPPO or a Member State audit institution, following checks, audits or investigations;

RemovedArticle 139 – paragraph 1 – point g: (g) it has been established by a final judgment or final administrative decision that the person or entity has created an entity in a different jurisdiction with the intent to circumvent fiscal, social or any other legal obligations including those related to working rights, employment and labour conditions, in the jurisdiction of its registered office, central administration or principal place of business;

RemovedArticle 139 – paragraph 2 – subparagraph 1: The authorising officer responsible shall exclude a person or entity referred to in Article 138(2)(i), (j), (k) and (l) where that person or entity is in one or more of the exclusion situations referred to in Article 139(1). In the absence of a final judgment or a final administrative decision, the decision shall be taken on the basis of a preliminary classification in law of a conduct as referred to in those points, having regard to the established facts and findings under Article 139, paragraph 3, fourth subparagraph, points (a) and (d), contained in the recommendation of the panel referred to in Article 146.

RemovedArticle 139 – paragraph 9 – subparagraph 1 – point a: (a) the person or entity has taken remedial measures as specified in paragraph 10 of this Article, to an extent that is sufficient to demonstrate its reliability. This point shall not apply in the case referred to in point (d) of paragraph 1 of this Article;

RemovedArticle 139 – paragraph 10 – subparagraph 1 – introductory part: The remedial measures referred to in point (a) of the first subparagraph of paragraph 9 shall include, in particular:

RemovedArticle 139 – paragraph 10 – subparagraph 2: In order to comply with the requirements of paragraph 9 of this Article, the person or entity shall submit remedial measures that have been assessed by an external independent auditor or be considered sufficient by a decision of a national or Union authority. This is without prejudice to the assessment of the panel referred to in Article 146.

RemovedArticle 142 – paragraph 1 – subparagraph 1 – point b – point i: (i) five years for the cases referred to in Article 139(1), points (c)(iv), (d) and (i);

RemovedArticle 142 – paragraph 1 – subparagraph 1 – point b – point ii: (ii) three years for the cases referred to in points (c)(i), (ii), (iii), (v) and (vi) and (e) to (h) of Article 139(1);

RemovedArticle 142 – paragraph 1 – subparagraph 1 – point b – point ii a (new): (iia) ten years where a person or entity referred to in Article 138(2) is excluded under several of the grounds listed in Article 139(1)(c)(iv), (d) and (i) or under one of those grounds more than once.

RemovedArticle 143 – paragraph 1 – subparagraph 1 – introductory part: In order to, where necessary, reinforce the deterrent effect of the exclusion and/or financial penalty, the Commission shall, subject to a decision of the authorising officer responsible, publish on its website the following information related to the exclusion and, where applicable, the financial penalty in the cases referred to in points (c) to (i) of Article 139(1):

RemovedArticle 144 – paragraph 1 – subparagraph 1 – point d: (d) has professional conflicting interests which may negatively affect the performance of the contract in accordance with point 20.6 of Annex I.

RemovedArticle 144 – paragraph 1 – subparagraph 1 – point d a (new): (da) is subject to a decision of the authorising officer responsible prohibiting the award of the contract due to a foreign subsidy distorting the internal market; the authorising officer responsible shall act in accordance with the internal rules of the Union institution concerned.

RemovedArticle 151 a (new): Article151a / Financing not linked to costs under direct management with Member States as beneficiaries of grants, non-repayable financial support or loans / 1. Where a Union programme or facility adopted as of the date of application of this Regulation is implemented in direct management with Member States as beneficiaries of grants, non-repayable financial support or loans provided in the form indicated in Article 126(1)(a)(ii), the Commission shall, following the approval of the milestones, targets or performance indicators in accordance with the relevant basic act, conclude an agreement with the Member State concerned constituting an individual legal commitment within the meaning of this Regulation. / 2. The agreement referred to in paragraph 1 shall provide for the obligations of the Member State: / (a) to implement the measures agreed in compliance with applicable rules, in particular regarding the prevention, detection and correction of fraud, corruption, conflicts of interest, and double-funding, and to recover amounts wrongly paid or incorrectly used; / (b) to ensure that the financing provided has been properly used in accordance with all applicable rules; / (c) to have an effective and efficient internal control system; / (d) to accompany a request for payment by: / (i) a management declaration that the relevant milestones, targets or performance indicators have been met with the support of the funds, that the information submitted with the request for payment is c…

RemovedArticle 153 – paragraph 5 – subparagraph 2: For contracts awarded by the Union delegations or awarded exclusively in the interest of Union delegations in third countries, the contracting authority may restrict the submission by letter to only one of the means indicated above. Where the contracting authority makes use of this provision, it shall document the reasons for the restriction.

RemovedWhile the intention of the Commission with this new provision is understandable, it runs the risk of restricting competition, especially if participants are not allowed to submit their application documents by post or by courier service. To ensure that the decision remains justified and comprehensible for all applicants, the contracting authority should document its reasons for the decision.

RemovedArticle 169 – paragraph 2 – subparagraph 6: In a situation of extreme urgency resulting from a crisis, new contracting authorities may be added after the launch of the procurement procedure and before contract signature, subject to the conditions set out in Article 164(6) and provided that the modification does not alter the subject matter of the contract or the framework contract.

RemovedArticle 169 – paragraph 3 a (new): 3a. Where appropriate, two or more Member States may mandate a Union institution, Union body referred to in Articles 70 and 71 or executive agency referred to in Article 69 (‘mandated contracting authority’) to act as a central purchasing body to procure on behalf of the Member States or in their own name, under the following conditions: / (a) The mandated contracting authority shall assess the utility, necessity and proportionality of the request of two or more Member States; / (b) Where the mandated contracting authority intends not to follow the request, it shall inform the Member States concerned and shall give reasons for its refusal; / (c) Where it agrees to procure on behalf of the Member States, the mandated contracting authority shall draw up the proposal for a mandate agreement to be signed by the participating Member States. Such agreement shall include the practical arrangements for the involvement of the participating Member States, the conditions and time frames for possible opt-in and opt-out, and, where appropriate, rules for the allocations of the quantities between the participating Member States; / (d) The mandated contracting authority shall conduct the procurement procedure following its own rules.

RemovedArticle 176 – paragraph 3 – subparagraph 1 – point c – point i: (i) the thresholds referred to in Article 179(1), and in point 39 of Annex I in the field of external actions, applicable at the time of the modification; and

RemovedTechnical correction.

RemovedArticle 179 – paragraph 1 – subparagraph 2 a (new): The provisions of Article 153(5), Article 179(1), Article 180(3) as well as Point 11.1(m), Point 14 and Point 18.1 of the Annex, which refer to procurement by Union Delegations in third countries, shall also apply to European Parliament Liaison Offices and other equivalent European Parliament offices in third countries.

RemovedThe same provisions applicable to the procurement of Union Delegations should also apply

RemovedArticle 196 – paragraph 3 – point e: (e) low value grants and very low value grants.

RemovedThe lessons learned from providing small-scale support during the pandemic to small and medium-sized enterprises and individual applicants should be implemented by introducing a new category of a very low value grant of an amount of up to EUR 5000 in order to improve efficiency and reducing bureaucracy. This is linked to the simplification and crisis management aims of the recast.

RemovedArticle 200 – paragraph 1 – point c a (new): (c a) applicants for very low value grants shall provide simplified documentation, which includes the information referred to in point (a), proof of existence, bank details, and may benefit from a simplified application form, whose content is to be defined by the authorising officer; by derogation, applicants shall not be requested to provide the information as requested in points (b) and (c);

RemovedThe lessons learned from providing small-scale support during the pandemic to small and medium-sized enterprises and individual applicants should be implemented by introducing a new category of a very low value grant of an amount of up to EUR 5000 in order to improve efficiency and reducing bureaucracy. This is linked to the simplification and crisis management aims of the recast.

RemovedArticle 217 – title: Management of the common provisioning fund

RemovedThe CPF is organised in compartments, and it can happen that there are at the same time over- and under-provisioned compartments, so the Commission may have to simultaneously request replenishment of one and repay a surplus from another back to the budget. It would be more efficient to allow transfer of surplus provisions from fully constituted over-provisioned compartments to compartments facing challenges. This in turn makes the concept of effective provisioning rate obsolete. The amendments to this Article are linked to admissible amendments to Articles 22, 52 and 224a.

RemovedArticle 217 – paragraph 1: deleted

RemovedThe CPF is organised in compartments, and it can happen that there are at the same time over- and under-provisioned compartments, so the Commission may have to simultaneously request replenishment of one and repay a surplus from another back to the budget. It would be more efficient to allow transfer of surplus provisions from fully constituted over-provisioned compartments to compartments facing challenges. This in turn makes the concept of effective provisioning rate obsolete. The amendments to this Article are linked to admissible amendments to Articles 22, 52 and 224a.

RemovedArticle 217 – paragraph 2: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

RemovedThe CPF is organised in compartments, and it can happen that there are at the same time over- and under-provisioned compartments, so the Commission may have to simultaneously request replenishment of one and repay a surplus from another back to the budget. It would be more efficient to allow transfer of surplus provisions from fully constituted over-provisioned compartments to compartments facing challenges. This in turn makes the concept of effective provisioning rate obsolete. The amendments to this Article are linked to admissible amendments to Articles 22, 52 and 224a.

RemovedArticle 217 – paragraph 3: deleted

RemovedThe CPF is organised in compartments, and it can happen that there are at the same time over- and under-provisioned compartments, so the Commission may have to simultaneously request replenishment of one and repay a surplus from another back to the budget. It would be more efficient to allow transfer of surplus provisions from fully constituted over-provisioned compartments to compartments facing challenges. This in turn makes the concept of effective provisioning rate obsolete. The amendments to this Article are linked to admissible amendments to Articles 22, 52 and 224a.

RemovedArticle 217 – paragraph 4 – introductory part: 4. After the constitution of the common provisioning and after the end of the eligibility period referred to in Article 215(6), the following operations in the context of the budgetary procedure shall be made and presented in the working document referred to in point (h) of Article 41(5):

RemovedThe CPF is organised in compartments, and it can happen that there are at the same time over- and under-provisioned compartments, so the Commission may have to simultaneously request replenishment of one and repay a surplus from another back to the budget. It would be more efficient to allow transfer of surplus provisions from fully constituted over-provisioned compartments to compartments facing challenges. This in turn makes the concept of effective provisioning rate obsolete. The amendments to this Article are linked to admissible amendments to Articles 22, 52 and 224a.

RemovedArticle 217 – paragraph 4 – point a: (a) any surplus of provisions for a budgetary guarantee or a financial assistance to a third country may be used in accordance with Article 215(5) including for another budgetary guarantee and financial assistance, and for that purpose it shall be held in the common provisioning fund for five years before any remaining amount is returned to the budget;

RemovedThe CPF is organised in compartments, and it can happen that there are at the same time over- and under-provisioned compartments, so the Commission may have to simultaneously request replenishment of one and repay a surplus from another back to the budget. It would be more efficient to allow transfer of surplus provisions from fully constituted over-provisioned compartments to compartments facing challenges. This in turn makes the concept of effective provisioning rate obsolete. The amendments to this Article are linked to admissible amendments to Articles 22, 52 and 224a.

RemovedArticle 224 – paragraph 2: deleted

RemovedArticle 224 – paragraph 7: deleted

RemovedArticle 224 a (new): Article 224a / Diversified funding strategy / 1. Where the Commission is empowered, in relevant basic acts, to borrow funds on behalf of the Union on the capital markets or from financial institutions, the Commission shall implement a diversified funding strategy comprising borrowing and debt management operations. The diversified funding strategy shall be implemented through all necessary transactions aiming at a regular capital market presence, shall be based on pooling of funding instruments and shall make use of a common liquidity pool. / 2. The Commission shall establish the necessary arrangements for the implementation of the diversified funding strategy. The Commission shall regularly and comprehensively inform the European Parliament and the Council about all aspects of its borrowing and debt management strategy. / 3. Without prejudice to the basic acts empowering the Commission to borrow funds on behalf of the Union, the European Parliament and the Council shall approve, in the context of the budgetary procedure, the maximum amount that the Commission is authorised to borrow under the diversified funding strategy during that financial year.

RemovedArticle 238 – paragraph 1 – subparagraph 3: deleted

RemovedAs stated in Parliament's resolution of 24 November 2021, Parliament should have an appropriate role in the setting up, supervision and scrutiny of trust funds, including for emergency and post-emergency actions. The amendments to this Article give Parliament and Council the power to approve any trust fund, and are linked to admissible amendments to increase democratic accountability of the budget, inter alia to Articles 52 and 224a.

RemovedArticle 238 – paragraph 1 – subparagraph 4: The establishment of a Union trust fund shall be subject to the approval of the European Parliament and of the Council.

RemovedAs stated in Parliament's resolution of 24 November 2021, Parliament should have an appropriate role in the setting up, supervision and scrutiny of trust funds, including for emergency and post-emergency actions. The amendments to this Article give Parliament and Council the power to approve any trust fund, and are linked to admissible amendments to increase democratic accountability of the budget, inter alia to Articles 52 and 224a.

RemovedArticle 238 – paragraph 1 – subparagraph 4 a (new): A Union trust fund for emergency and post-emergency action shall be deemed to be approved by the European Parliament and the Council unless the European Parliament or the Council decide not to approve it within two months of the date of publication of the draft decision referred to in the fifth subparagraph of this paragraph.

RemovedFor trust funds for emergency and post-emergency action, it is appropriate that a time limit is set for the approval by Parliament and Council, so as to preserve the possibility to act in an emergency. This kind of trust funds should be deemed approved unless Parliament or Council object within that time limit. The amendments to this Article are linked to admissible amendments to increase democratic accountability of the budget, inter alia to Articles 52 and 224a.

RemovedArticle 238 – paragraph 2: 2. The Commission shall submit its draft decisions concerning the financing of a Union trust fund to the competent committee where provided for in the basic act under which the Union contribution to the Union trust fund is provided. The competent committee shall not be invited to pronounce itself on the aspects which have already been submitted to the European Parliament and to the Council for approval under the third, fourth and fifth subparagraphs of paragraph 1 respectively.

RemovedAs stated in Parliament's resolution of 24 November 2021, Parliament should have an appropriate role in the setting up, supervision and scrutiny of trust funds, including for emergency and post-emergency actions. The amendments to this Article give Parliament and Council the power to approve any trust fund, and are linked to admissible amendments to increase democratic accountability of the budget, inter alia to Articles 52 and 224a.

RemovedArticle 240 – paragraph 1: (1) With a view to coordinating actions with multiple partners to address effectively global challenges with the appropriate scale, the Union may, on a proposal by the Commission, make contributions in the form of financing not linked to costs to multi-donor, pooled funded global initiatives when these support the achievement of Union policy objectives and where budget implementation instruments provided for in other Titles of this Regulation would not be sufficient to achieve such Union policy objectives.

RemovedArticle 240 – paragraph 1 a (new): (1a) Such contributions shall be subject to a decision by the European Parliament and the Council. / Except in urgent circumstances, the European Parliament and the Council, the latter acting by qualified majority, shall deliberate upon a proposal for a contribution, as referred to in paragraph 1, within eight weeks of its receipt by both institutions. In urgent circumstances, the European Parliament and the Council shall deliberate within four weeks of receipt of the proposal. / A contribution proposal shall be approved or considered to be approved, if, within the eight-week period, any of the following occurs: / (a) the European Parliament and the Council approve it; / (b) either the European Parliament or the Council approves it and the other institution refrains from acting; / (c) neither the European Parliament nor the Council takes a decision to amend or refuse the proposal.

RemovedArticle 240 – paragraph 2 – subparagraph 1 – point iii: (iii) there is adequate reporting on the results achieved by the initiative, including through relevant output and impact indicators;

RemovedArticle 240 – paragraph 2 – subparagraph 1 – point iv: (iv) the initiative operates under rules ensuring sound financial management, transparency, non discrimination and equal treatment in the use of Union funds in accordance with the principle of proportionality that provide a level of protection comparable to other budget implementation instruments provided for in other Titles of this Regulation;

RemovedArticle 240 – paragraph 2 – subparagraph 1 – point v: (v) there are appropriate systems to prevent and combat irregularities and fraud as well as to report on their functioning at regular intervals, including internal and external auditing systems, and there are appropriate rules for recoveries of funds by the initiative, including their use for the same initiative;

RemovedArticle 240 – paragraph 2 – subparagraph 1 – point v a (new): (va) the Union’s participation brings visibility for the Union.

RemovedArticle 240 – paragraph 2 – subparagraph 2: In the event of suspected cases of serious irregularities such as fraud, corruption or conflict of interests, the authorising officer responsible, the EPPO in respect of those Member States participating in enhanced cooperation pursuant to Regulation (EU) 2017/1939, OLAF, audit authorities of the Commission, and the Court of Auditors shall be granted access to all relevant information and carry out joint audit, control, or investigative missions with the relevant body under the initiative, in line with Article 129.

RemovedArticle 244 – paragraph 2 – subparagraph 1 a (new): In the case of non-perishable supplies financed from administrative appropriations and in compliance with the accounting rules and standards referred to in Article 80, Union institutions and bodies may not provide non-financial donations before the value of the depreciated supply represents 80 % of the purchase price.

RemovedArticle 260 – paragraph 1: 1. The examination by the Court of Auditors of whether all revenue has been received and all expenditure incurred in a lawful and proper manner, including in relation to assigned revenue and the related items of expenditure, shall have regard to the Treaties, the budget, this Regulation, the delegated acts adopted pursuant to this Regulation and all other relevant acts adopted pursuant to the Treaties. That examination may take account of the multiannual character of programmes and related supervisory and control systems.

RemovedIt should be clearly stated that the examination by the Court of Auditors must also include assigned revenue. This amendment is needed for coherence with admissible amendments to Article 22.

RemovedArticle 265 – paragraph 3: 3. If the European Parliament postpones the decision giving a discharge, the Commission and the other Union institutions and Union bodies provided for in Articles 70 and 71 shall make every effort to take measures, as soon as possible, to remove or facilitate removal of the obstacles to that decision.