Changes from plenary report to adopted text

Added4. Without prejudice to the tasks and functions attributed in accordance with Regulation (EU) No 473/2013 for Member States whose currency is the euro, all Member States shall ensure that the following tasks are undertaken by one of the institutions referred to in paragraph 1:

Removed(ea) regularly exchange best practices among each other coordinated by the European Fiscal Board (EFB);

Added(a) producing, assessing or endorsing annual and multiannual macroeconomic forecasts;

Removed(eb) regularly consult relevant stakeholders.

Added(d) monitoring compliance with country-specific numerical fiscal rules unless performed by other bodies in accordance with Article 6;

Removed4. Member States shall ensure that the institutions referred to in paragraph 1 have the following tasks:

Added(e) undertaking tasks in accordance with relevant articles of the Regulation [XXX preventive arm of the SGP] and of Regulation [XXX corrective arm of the SGP]*;

Removed(a) producing the annual and multiannual macroeconomic and budgetary forecasts underlying the government’s medium-term planning or supporting or, where applicable according to national rules, endorsing the planning by the budgetary authorities;

Added(f) assessing the consistency, coherence and effectiveness of the national budgetary framework;

Removed(b) producing debt sustainability assessments underlying the government’s medium-term planning by the budgetary authorities or supporting or, where applicable according to national rules, endorsing the assessment;

Added(g) upon invitation, participate in regular hearings and discussions at the national Parliament.

Removed(c) producing assessments on the impacts of policies, including reform and investment commitments under the national medium term fiscal-structural plans, on fiscal sustainability and sustainable and inclusive growth by the budgetary authorities or supporting or, where applicable according to national rules, endorsing;

Added5. The institutions shall issue assessments in the context of the tasks referred to in paragraph 4 (a), (d), (e) and (f) without prejudice to the tasks and functions attributed in accordance with Regulation (EU) No 473/2013. Member States shall comply with these assessments, or alternatively explain why they are not following them. The explanation shall be public and be presented two months from the issuance of such assessments.

Removed(d) monitoring compliance with country-specific numerical fiscal rules in accordance with Article 6;

Removed(e) monitoring compliance with the Union fiscal framework in accordance with Regulations [XXX preventive arm of the SGP] and [XXX corrective arm of the SGP] *;

Removed(f) conducting, on a regular basis, reviews of the national budgetary framework, in order to assess, among others, the consistency, coherence and effectiveness of the framework, including mechanisms and rules that regulate fiscal relationships between public authorities across sub-sectors of general government;

Removed(g) participate in regular hearings and discussions at the national Parliament and be available to provide technical analysis and advice to the national Parliament upon request.

Removed5. Member States shall ensure that the budgetary authorities of the Member State concerned comply with the assessments or opinions issued by the institutions in the context of the tasks referred to in paragraph 4. Where such budgetary authorities do not comply with those assessments or opinions, they shall publicly justify the decision not to comply within a month from the issuance of such assessments or opinions.

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Changed* Regulation (EU) of the Council of [insert date] [insert full title] (OJ L ..)...).’

(9) Article 9 is amended as follows:

Change 37

Changeda)(a) paragraph 1 is replaced by the following:

Change 38

Changed‘1. Member States shall establish a credible, effective national medium-term budgetary framework providing for the adoption of a fiscal planning periodhorizon of at least 43 years to ensure that national fiscal planning follows a multiannual fiscal planning perspective.’

Change 39

Changedb)(b) paragraph 2 is amended as follows:

Change 40

Added(i) the introductory phrase is replaced by the following:

Added‘2. National medium-term budgetary frameworks shall include procedures for establishing the following items:’

(ii) point (a) is replaced by the following:

Change 41

Changed‘(a) comprehensive and transparent multiannual budgetary objectives as referred to in Article 2, point (e) in terms of the general government deficit, debt and any other summary fiscal indicator such as expenditure, ensuring that they are consistent with any country-specific numerical fiscal rules as provided for in Chapter IV of this Directive and the relevant provisions of Regulation [XXX preventive arm of the SGP].’;

(iii) point (c) is replaced by the following:

Change 42

Changed‘(c) a description of medium-term policies, including investment and reforms, and if applicable, specifying the investments and reforms in the common priorities of the Union referred to in Article 12, point (ba), of the Regulation [on the preventive arm], envisaged with an impact on general government finances, resiliencefinances and sustainable and inclusive growth, broken down by major revenue and expenditure item, showing how the adjustment towards the national budgetary objectives over the medium term as referred to in Article 2, point (e), is achieved compared to projections under unchanged policies.’;policies.’

(iv) point (d) is replaced by the following:

Change 43

Changed‘(d) an assessment as to how in the light of their direct medium-term and long-term impact on general government finances, the policies envisaged are likely to affect the medium-term and long-term sustainability of the public finances and sustainable and inclusive growth. The assessment shall specify, toTo the extent possible and based onpossible, athe transparentassessment andshall replicabletake scientificinto methodology,account the macrofiscal risks from climate change and theirits environmental and distributional impacts, and the implications on public finance of climate-related mitigation and adaptation policies over the medium-term andimpacts. long-term.’;’

Change 44

Changedc)(c) paragraph 3 is deleted;

(10) Articles 10 and 11 are replaced by the following:

‘Article 10

Annual budget legislation shall be consistent with the national budgetary objectives over the medium term as referred to in Article 2, point (e). Any departure shall be duly explained.’;

Change 45

RemovedThis Directive shall not prevent a Member State’s new government from updating its medium-term budgetary framework plan to reflect its new policy priorities, nevertheless this is not to be encouraged, as it would imply lost momentum, particularly on the implementation of the reform agenda. In such case, the new government shall indicate the differences between the previous and the new medium-term budgetary plan. The ambition of the reforms and investments in the revised plan shall not be lower than the original plan.’;

AddedArticle 11

AddedThis Directive shall, in no way, prevent a Member State’s new government from updating its medium-term budgetary plan to reflect its new policy priorities. In such case, the new government shall indicate the differences between the previous and the new medium-term budgetary plan.’;

(11) in Chapter VI, the title is replaced by the following: ‘TRANSPARENCY OF GENERAL GOVERNMENT FINANCES’

(12) Article 12 is replaced by the following:

‘Article 12

Change 46

ChangedMember States shall ensure that any measures taken in compliance with Chapters II, III and IV are consistent across,across all subsectors of general government and cover comprehensively those subsectors. To that effect MembersMember States shall, in particular, require consistent public sector accounting rules and procedures,procedures by the general government, and the integrity of their underlying data collection and processing systems.’;

(13) Article 14 is replaced by the following:

‘Article 14

Change 47

Changed1. Within the framework of the annual and multiannual budgetary legislation processes, Member States shall publish information on bodies and funds which do not form part of the regular budgets but are part of the general government, including subsectors of general government. Member States shall also publish valuesamounts corresponding to the combined impact on general government balances and debts of those bodies and funds whereby the impact on the balances shall include past and expected future operations and the impact on debts shall include outstanding and expected new liabilities.funds.

Change 48

Changed2. Member States shall publish detailed information on the impact of tax expenditures on revenues for the national budgetary objectives as referred to in Article 2, point (e), based on a transparent methodology.revenues.

Change 49

Changed3. For all subsectors of general government, Member States shall publish relevant information on contingent liabilities with potentially large impact on public budgets, including government guarantees, non-performing loans, and liabilities stemming from the operation of public corporations, ▌ including the extent thereof. Member States shall also publish information on disaster and climate-related contingent liabilities to the extent possible. Member States shall publishPublished information on past calls on one-off guarantees and expenditure recordedshall, forto standardisedthe guarantees.extent Publishedpossible, informationtake shallinto includeaccount information on economicfiscal lossescosts incurred due to disasters and climate-related shocks, including the fiscal costs borne by the public sector and the instruments used to mitigate or cover them.shocks. Member States shall publish information on the participation of general government in the capital of private and public corporations in respect of economically significant amounts.’amounts.

Change 50

Removed(14) Article 14a. is added as follows

Removed‘Article 14a.

Removed1. By 14 December 20XX the Commission shall publish a review of the effectiveness of this Directive.

Removed2. By 31 December 2025, the Commission shall report on the state of play and future direction of public sector financial accounting in the Union, taking into account the progress made since its 2013 assessment of the suitability of the International Public Sector Accounting Standards for the Member States.’

(14) Article 15 is replaced by the following:

‘Article 15

Change 51

Changed1. Member States shall bring into force the provisions necessary to comply with this Directive by 31 December 202X.2025. They shall forthwith communicate to the Commission the text of those provisions. The Council encourages Member States to draw up, for themselves and in the interests of the Union, their own correlation tables which will, as far as possible, illustrate the correlation between this Directive and the transposition measures, and to make them public.

2. When Member States adopt those provisions, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made.

Change 52

Changed3. The Commission shall prepare an interim progress report on the implementation of the main provisions of this Directive on the basis of relevant information from Member States, which shall be submitted to the European Parliament and to the Council by 1430 DecemberJune 20XX.2025.

Change 53

Changed4. Member States shall communicate to the Commission the text of the main provisions which they adopt in the field covered by this Directive.’Directive.

(15) Article 16 is deleted.

Change 54

Added(16) Article 16a is added as follows: