Changes from plenary report to adopted text

RemovedRequirements for the reference trajectory

RemovedThe reference trajectory shall ensure that:

Removed(a) the public debt ratio is put or remains on a plausibly downward path, leading to sustainable debt reduction or stays at prudent levels;

Removed(b) the government deficit is brought and maintained below the 3% of GDP reference value;

Removed(c) the fiscal adjustment effort over the period of the national medium-term fiscal-structural plan is at least proportional to the total effort over the entire adjustment period;

Removed(d) the public debt ratio stabilises over the adjustment period and is reduced every year over the projection period on average by at least one percentage point of debt to GDP for the Member States with a debt-to-GDP ratio exceeding 90% and at least half a percentage point for the Member States with a debt-to-GDP ratio of 60% to 90%.

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RemovedIf a Member State’s government deficit is above 3% while the public debt is below the 60% of GDP reference value, point (d) shall not apply.

RemovedThe reference trajectories shall be differentiated for each Member State. ▌.

RemovedThe reference trajectory procedure

Removed1. At least three months before the date for Member States ▌to submit their medium-term fiscal-structural plans for the first time and mutatis mutandis thereafter, the Commission shall provide the following information to the European Parliament and the Council:

Removed(a) the country-specific underlying medium-term public debt projection framework based on the debt sustainability analysis methodology and results;

Removed(b) its country-specific macroeconomic forecast and assumptions.

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Removed1a. At least two months before the date for Member States to submit their medium-term fiscal-structural plans, the Commission and the Member State concerned shall hold a dialogue with the objective of ensuring that the reference trajectory complies with Articles 5 and 6. As part of that dialogue, the Member State concerned shall be allowed to present a proposal for a reference trajectory to the Commission, taking into account the information referred in paragraph 1, points (a) and (b). The proposal for a reference trajectory shall be accompanied by an opinion of the independent fiscal institution of the Member State concerned. However, failure by the independent fiscal institution to deliver such an opinion within a reasonable timeframe shall not prevent the submission of the Member State’s proposal for a reference trajectory.

RemovedWhere, in the course of the dialogue referred to in the first subparagraph, the Member State concerned chooses not to present a proposal for a reference trajectory or fails to do so in a timely manner, or where the Commission and the Member State concerned are unable to agree on a reference trajectory the Commission shall put forward a reference trajectory meeting the requirements set out in Article 6.

RemovedThe Commission shall transmit the reference trajectories to European Parliament and the Council, together with the proposals for reference trajectories by the Member States and all data, assumptions and calculations underlying those trajectories, in such a way that allows for their replication.

Removed2. For Member States having a government deficit below the 3% of GDP reference value and public debt below the 60% of GDP reference value, the Commission shall provide technical information regarding the structural primary balance necessary to ensure that the headline deficit is maintained below the 3% of GDP reference value without any additional policy measures over a 10-year period after the end of the national medium-term fiscal-structural plan.

Removed3. Each Member State having a public debt above the 60% of GDP reference value or a government deficit above the 3% of GDP reference value shall update its proposal for a reference trajectory at least two months before the submission of the next ▌medium-term fiscal-structural plans.

RemovedAssessment of plausibility and debt sustainability

RemovedTo assess plausibility that the projected public debt ratio of the Member State concerned is on a downward path which, with appropriate fiscal policies, leads to sustainable debt reduction or remains at a prudent level, the Commission shall use a replicable, predictable and transparent methodology based on the following conditions:

Removed(a) public debt ratio declines or stays at prudent levels, under the deterministic scenarios of the Commission’s medium-term public debt projection framework, based on debt sustainability analysis methodology;

Removed(b) the risk of the public debt ratio not decreasing in the 5 years following the adjustment period of the national medium-term fiscal-structural plan is sufficiently low, that risk being assessed with the help of the Commission’s stochastic analysis.

RemovedThe Commission shall inform the European Parliament and the Council of its analysis of plausibility and the underlying data, subject to confidentiality arrangements where necessary.

RemovedBy … [12 months from the date of entry into force of this Regulation], the Commission shall adopt a delegated act in accordance with Article 33 to supplement this Regulation by defining the methodology for debt sustainability analysis and the methodology for the assessment of plausibility referred to in paragraph 1. Delegated acts shall be sufficiently detailed in the disclosure of models and ranges of variables and assumptions so as to enable replicability of the debt sustainability analysis.

RemovedFor the purpose of the delegated act on debt sustainability analysis, the Commission shall identify the relevant factors to assess the sustainability of debt, taking into consideration, in particular the future evolution of sustainable growth; interest rates; the level of inflation; liquidity risks; the structure of the debt; contingent liabilities; the potential growth impact of the reforms and investments underpinning the implemented national medium-term fiscal-structural plans, as well as climate risks.

RemovedFor the first year in which the Member States are to submit their medium-term fiscal-structural plans, and as long as the delegated act referred to in paragraph 3 is not adopted, the underlying medium-term public debt projection framework shall be based on the most recent update of the Debt Sustainability Monitor.

RemovedNATIONAL MEDIUM-TERM FISCAL-STRUCTURAL PLANS

RemovedSubmission of the national medium-term fiscal-structural plans

RemovedEach Member State shall submit to the Council and to the Commission a national medium-term fiscal-structural plan before end-April following the entry into force of this Regulation. The Member State concerned and the Commission may agree to extend this deadline by a reasonable period if necessary. The European Parliament shall, without undue delay, be informed in writing about each extension and the reasons underlying it.

RemovedEach Member State shall submit to the Council and to the Commission a new national medium-term fiscal-structural plan before the end of April of the final year covered by the ongoing medium-term fiscal-structural plan.

RemovedThe national medium-term fiscal-structural plan shall be accompanied by an opinion of the independent fiscal institution of the Member State concerned, in particular regarding the fulfilment of the criteria in Article 15 and the assumptions used in the reference trajectory. However, failure by the independent fiscal institution to deliver such an opinion within a reasonable timeframe shall not prevent the submission of the plan by the Member State.

RemovedPrior to the submission of its national medium-term fiscal-structural plan to the Council and Commission, each Member State shall establish a structured cooperation mechanism to receive contributions to that national medium-term fiscal-structural plan from civil society, social partners, regional authorities and other relevant stakeholders. The recommendations and suggestions submitted in the framework of the structured cooperation mechanism shall be included as an annex to the national medium-term fiscal-structural plans.

RemovedPrior to the submission of its national medium-term fiscal-structural plan to the Council and Commission, each Member State shall debate the draft national medium-term fiscal-structural plan with its national parliament.

RemovedThe Member State shall make its national medium-term fiscal-structural plan public upon its submission to the Council and the Commission, along with the reference trajectory and all data, assumptions and documents related to the negotiations used for the reference trajectory.

RemovedTechnical dialogue

RemovedPrior to the submission of its national medium-term fiscal-structural plan, the Member State concerned shall hold with the Commission a technical dialogue, with the objective of ensuring that the national medium-term fiscal-structural plan complies with Articles 11, 12, 14 and, where relevant, Article 13. The Commission shall ensure equal treatment of Member States. To ensure transparency and accountability, the Commission shall retain the minutes and all related documents prepared ahead, during and after each technical dialogue until at least the end of the second intended adjustment period. After the submission of the national medium-term fiscal structural plan to the Council and the Commission, the European Parliament shall have access to those documents upon request, subject to confidentiality arrangements, where necessary.

RemovedContent of the national medium-term fiscal-structural plan

Removed1. A national medium-term fiscal-structural plan shall provide the information listed in Annex II. In particular, it shall present a net expenditure path, set in the form of nominal targets, covering a period of at least 4 years, as well as the underlying macroeconomic assumptions and the planned fiscal-structural measures in order to demonstrate compliance with the requirements of Article 12.

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RemovedRequirements for the national medium-term fiscal-structural plans

RemovedThe national medium-term fiscal-structural plan shall:

Removed(a) ensure the primary structural fiscal adjustment necessary to put or keep public debt on a plausibly downward path leading to sustainable debt reduction, by the end of the adjustment period at the latest, or remain at prudent levels, and to bring and maintain the government deficit below the 3% of GDP reference value over the medium term;

Removed(b) explain how it will ensure the delivery of investment and reforms responding to the main challenges identified within the European Semester, in the country-specific recommendations and, correct, if applicable, the identified macroeconomic imbalances under the Macroeconomic Imbalances Procedure, the warnings by the Commission or the recommendations by the Council made pursuant to Article 121(4) TFEU;

RemovedIn addition, the national medium-term fiscal-structural plan shall explain how it will ensure consistency with the broad guidelines for the economic policies of the Member States and with the employment guidelines in accordance with Article 121(2) and Article 148(2) TFEU and, if applicable, prevent social convergence risks identified within the European Semester in accordance with Article 3, second paragraph, point (b);

Removed(ba) explain how it will address the following common priorities of the Union:

Removed(i) the European Green Deal , including the transition to climate neutrality by 2050 and the translation at national level through the National Energy and Climate Plans;

Removed(ii) the European Pillar of Social Rights including the related targets on employment, skills and poverty reduction by 2030;

Removed(iii) the Digital Decade Policy Programme 2030, and reflected at national level through the National Digital Decade Strategic Roadmaps;

Removed(iv) a Strategic Compass for Security and Defence - For a European Union that protects its citizens, values and interests and contributes to international peace and security.

Removed(bb) explain how it will ensure consistency with the updated National Energy and Climate Plans, the European Climate Law and the National Digital Decade Roadmaps;

Removed(bc) assess the national public investment gaps, including to achieve each of the common priorities of the Union referred to in point (ba);

Removed(c) if applicable, explain how it will ensure the delivery of a relevant set of reforms and investments referred to in Article 13, underpinning an extension of the Member State’s adjustment period by 3 years at most;

Removed(d) explain how it will ensure consistency and, where appropriate, complementarity, with the Recovery and Resilience Plan of the Member State concerned during the period of availability of the Recovery and Resilience Facility in accordance with Regulation (EU) 2021/241 and with any Union investment instruments that address the Union’s common priorities or serve the same purpose as the Recovery and Resilience Facility;

Removed(da) explain how it will ensure consistency and, where appropriate, complementarity with Union funds, in particular with the cohesion policy funds benefiting the Member State concerned.

RemovedRequirements for an extension of the adjustment period

Removed1. Where a Member State commits to a relevant set of reforms and investments in accordance with the criteria set out in paragraph 2, the adjustment period may be extended by 3 years at most.

Removed2. The set of reform and investment commitments underpinning an extension of the adjustment period, shall be commensurate with the degree of public debt challenges and challenges to medium-term growth in the Member State concerned.

RemovedThe set of reforms and investment commitments shall fulfil, as a general rule, taken altogether, the following criteria: