Changes from plenary report to adopted text

(3) Article 4 is replaced by the following:

‘Article 4

1. The Council, when considering whether effective action has been taken in response to its recommendations made in accordance with Article 126(7) TFEU, shall base its decision on the report submitted by the Member State concerned in accordance with Article 3(5) of this Regulation and its implementation, as well as on any other publicly announced and sufficiently detailed decisions by the government of the Member State concerned.

Change 34

ChangedWhere the Council establishes, in accordance with Article 126(8) TFEU, that the Member State concerned has failed to take effective action, it shall report to the European Council accordingly.’;accordingly.

Change 35

Added2. Any decision by the Council under Article 126(8) TFEU to make public its recommendations where it is established that no effective action has been taken, shall be taken immediately after the expiry of the deadline set in accordance with Article 3(4) of this Regulation.’;’

(4) Article 5 is amended as follows:

(a) paragraph 1 is replaced by the following:

Change 36

Changed‘1.‘ 1. Any Council decision to give notice to the participating Member State concerned to take measures for the deficit reduction in accordance with Article 126(9) TFEU shall be taken within two months of the Council decision under Article 126(8) TFEU establishing that no effective action has been taken. In the notice, the Council shall request that the Member State implements a corrective net expenditure path which ensures that the general government deficit remains or is brought and maintained below the referencein valueaccordance withinwith the deadlinerequirements setestablished in the notice. For theArticle years3(4). whereThe theCouncil generalshall governmentalso deficitindicate ismeasures expectedconducive to exceed the referenceachievement value,of the corrective net expenditure path shall be consistent with a minimum annual adjustment of at least 0,5% of GDP as a benchmark.path.’;

Change 37

RemovedThe corrective net expenditure path shall also put the debt ratio on a plausibly downward path leading to sustainable debt reduction or keep it at a prudent level having regard to the criteria established in Article 6 of Regulation (EU) [on the preventive arm]. The corrective net expenditure path shall ensure that the average annual fiscal adjustment effort in the first three years is at least as high as the average annual fiscal effort of the total adjustment period. The Council shall also indicate measures conducive to the achievement of the corrective net expenditure path.’;

(b) paragraph 2 is replaced by the following:

Change 38

Removed‘2. Where effective action has been taken in compliance with a notice under Article 126(9) TFEU or where exceptional circumstances outside the control of the government with major impact on the public finances of the Member State concerned, including on the respect of the corrective net expenditure path referred to in paragraph 1 of this Article, occur after the adoption of that notice, the Council may decide, on a recommendation from the Commission, to adopt a revised notice under Article 126(9) TFEU. The revised notice, taking into account the relevant factors referred to in Article 2(3) of this Regulation may, in particular, extend the deadline for the correction of the excessive deficit by one year as a rule. In case the Council has established the existence of a severe economic downturn in the euro area or in the Union as a whole in accordance with Article 24 of Regulation (EU) [on the preventive arm], the Council may also decide, on a recommendation from the Commission, to adopt a revised notice under Article 126(9) TFEU, on condition that it does not endanger fiscal sustainability in the medium term. The revised notice may, in particular, extend the deadline for the correction of the excessive deficit by one year as a rule.’;

Added‘2. The Council may decide, on a recommendation from the Commission, to adopt a revised notice under Article 126(9) TFEU where:

Added(a) effective action has been taken in response to such a notice and the conditions referred to in Article 25 of Regulation (EU) [on the preventive arm] apply, or

Added(b) the conditions referred to in Article 24 of Regulation (EU) [on the preventive arm] apply.

AddedThe revised notice may, in particular, extend the deadline for the correction of the excessive deficit by one year as a rule.’;’

(5) in Article 6, paragraph 1 is replaced by the following:

Change 39

Changed‘1. The Council, when considering whether effective action has been taken in response to its notice made in accordance with Article 126(9) TFEU, shall base its decision on the report submitted by the Member State concerned in accordance with Article 5(1a) of this Regulation and its implementation, as well as on any other publicly announced and sufficiently detailed decisions by the government of the Member State concerned. The outcome of the surveillance mission carried out by the Commission in accordance with Article 10a of this Regulation shall be taken into account.’;account.’;’

▸4 unchanged paragraphs

(6) Article 8 is replaced by the following:

‘Article 8

1. Any Council decision under Article 126(11) TFEU to intensify sanctions shall be taken no later than two months after the reporting dates pursuant to Regulation (EC) No 479/2009.

2. Any Council decision under Article 126(12) TFEU to abrogate some or all of its decisions shall be taken as soon as possible and in any event no later than two months after the reporting dates pursuant to Regulation (EC) No 479/2009.

Change 40

Changed3. A Council decision shall only be taken pursuant to Article 126(12) TFEU where budgetarythe forecastsdeficit ashas providedbeen bybrought below the Commissionreference indicatevalue thatand theis deficitprojected hasby beenthe broughtCommission durablyto belowremain so in the referencecurrent valueand following year and, where the excessive deficit procedure was opened on the basis of the debt criterion, the Member State concerned respected the corrective net expenditure path set by the Council in accordance with Article 3(4) or Article 5(1) of this Regulation over the previous 2 years and is projected to continue to do so in the current year on the basis of the Commission forecast.’;Regulation.’;’

(7) in Article 9, paragraph 1 is replaced by the following:

‘1. The excessive deficit procedure shall be held in abeyance:

(a) where the Member State concerned acts in compliance with recommendations made in accordance with Article 126(7) TFEU;

Change 41

Changed(b) where the participating Member State concerned acts in compliance with notices given in accordance with Article 126(9) TFEU.’;TFEU.’;’

▸6 unchanged paragraphs

(8) Article 10 is replaced by the following:

‘Article 10

1. The Council and the Commission shall regularly monitor the implementation of action taken:

- by the Member State concerned in response to recommendations made under Article 126(7) TFEU;

- by the participating Member State concerned in response to notices given under Article 126(9) TFEU.

2. Where action by a participating Member State is not being implemented or, in the Council's view, is proving to be inadequate, the Council shall immediately take a decision under Article 126(9) TFEU or Article 126(11) TFEU respectively.

Change 42

Changed3. Where actual data pursuant to Regulation (EC) No 479/2009 indicate that an excessive deficit has not been corrected by a participating Member State within the time limits specified either in recommendations issued under Article 126(7) TFEU or notices issued under Article 126(9) TFEU, the Council shall immediately take a decision under Article 126(9) TFEU or Article 126(11) TFEU respectively.’;respectively.’;’

(9) Article 10a is amended as follows:

(a) paragraph 1 is replaced by the following:

Change 43

Changed‘1. The Commission shall ensure a permanent dialogue with authorities of the Member States in accordance with the objectives of this Regulation. To that end, the Commission shall, in particular, carry out missions for the purpose of the assessment of the actual economic situation in the Member State and the identification of any risks or difficulties in complying with the objectives of this Regulation and allow an exchange with other relevant stakeholders, including the national independent fiscal institutions.’;institutions.’;’

(b) paragraph 2 is replaced by the following:

Change 44

Changed‘2. Following the adoption by the Council of a notice under Article 126(9) TFEU, the Commission shall carry out a dedicated monitoring mission to the Member State concerned to discuss the measures that the Member State intends to take in response to the measures judged necessary following the notice under Article 126(9) TFEU.and Uponif invitationrequested by the parliament of the Member State concerned, the Commission may present its assessment of the economic and fiscal situation in the Member State. Enhanced surveillance may be undertaken for Member States which are the subject of recommendations and notices issued following a decision pursuant to Article 126(8) TFEU and decisions under Article 126(11) TFEU for the purposes of on-site monitoring. The Member States concerned shall provide all necessary information for the preparation and the conduct of the monitoring mission.’;mission.’;’

(10) Article 12 is replaced by the following:

‘Article 12

Change 45

Changed1. The amount of the fine shall amount to up to 0,05% of the latest estimate of the previous year’s GDP for a 6-month period and be paid every 6 months until the Council assesses that the Member State concerned has taken effective action in response to the notice issued under Article 126(9) TFEU.

Change 46

Changed2. In each 6-month period following that in which a fine is imposed, until the decision on the existence of an excessive deficit is abrogated, the Council shall assess whether the participating Member State concerned has taken effective action in response to the Council notice in accordance with Article 126(9) TFEU. In this semi-annual assessment the Council shall decide, in accordance with Article 126(11) TFEU, to intensify the sanctions, unless the participating Member State concerned has complied with the Council’s notice.notice.’;

Change 47

Removed3. The cumulated amount of the fines referred to in paragraphs 1 and 2 shall not exceed 0,5 % of GDP.’;

(11) Articles 14 and 15 are replaced by the following:

‘Article 14

1. In accordance with Article 126(12) TFEU, the Council shall abrogate the sanctions referred to in Article 126(11), first and second indent, TFEU depending on the significance of the progress made by the participating Member State concerned in correcting the excessive deficit.

Change 48

RemovedIn accordance with Article 126(12) TFEU, the Council shall abrogate all outstanding sanctions if the decision on the existence of an excessive deficit is abrogated. Fines imposed in accordance with Article 12 of this Regulation will not be reimbursed to the participating Member State concerned.’;

AddedArticle 15

Removed(12) Articles 16 and 17 are deleted.

AddedIn accordance with Article 126(12) TFEU, the Council shall abrogate all outstanding sanctions if the decision on the existence of an excessive deficit is abrogated. Fines imposed in accordance with Article 12 of this Regulation will not be reimbursed to the participating Member State concerned.’;’

Change 49

Changed(13) in(12) Article 17a, paragraph 116 is replaced by the following:

Change 50

Removed‘1. By 31 December 2028 and every five years thereafter, the Commission shall publish a report on the application of this Regulation.

Added‘Article 16

RemovedThat report shall review at least:

AddedThe fines referred to in Article 12 shall constitute general revenue for the Union budget.’;’

Removed(a) the effectiveness of this Regulation;

Added(12a) Article 17 is deleted.

Removed(b) the progress in ensuring closer coordination of economic policies and sustained convergence of economic performances of the Member States in accordance with the TFEU.

Added(13) Article 17a is replaced by the following:

Removed2. Where appropriate, the report referred to in paragraph 1 shall be accompanied by a proposal for amendments to this Regulation.