On the draft Council decision on the conclusion, on behalf of the Union, of the Agreement between the European Union and the Principality of… Liechtenstein on supplementary rules in relation to the Instrument for Financial Support for Border Management and Visa Policy, as part of the Integrated Border Management Fund, for the period 2021 to 2027

a. Background

Regulation (EU) 2021/1148 of the European Parliament and of the Council establishing the Instrument for Financial Support for Border Management and Visa Policy for the period 2021-2027 (BMVI Regulation)’) was adopted on 7 July 2021.

The purpose of the BMVI Regulation is to provide financing assistance to those (Member) States that apply the Schengen acquis provisions on external borders. It constitutes a development of the Schengen acquis to which the countries associated to the implementation, application and further development of the Schengen acquis participate (‘Schengen associated countries’ or ‘associated countries’).

The Principality of Liechtenstein notified on 18 August 2021 its decision to accept the content of the BMVI Regulation and to implement it in its internal legal order.

Paragraph 6 of Article 7 of the BMVI Regulation provides that ’arrangements’ should be made to specify the nature and modes of the participation in the BMVI of countries associated with the implementation, application and development of the Schengen acquis, in accordance with the relevant provisions of the respective association agreements. These arrangements take the form of agreements concluded by the Union with the Schengen associated countries in accordance with Article 216 TFEU.

On 21 February 2022, the Council authorised the Commission to open negotiations with Iceland, the Kingdom of Norway, the Swiss Confederation and the Principality of Liechtenstein for the arrangements on the financial contributions of those countries and the supplementary rules necessary for their participation in the Instrument for Financial Support for Border Management and Visa Policy for the period 2021 to 2027, including provisions ensuring the protection of the Union's financial interests and the powers of audit of the Court of Auditors, to be concluded pursuant Regulation (EU) 2021/1148 of the European Parliament and of the Council. The negotiations with the Principality of Liechtenstein were successfully concluded by the initialling of the Agreement on 16 June 2023.

On 29 September 2023 the Commission submitted to the Council a proposal for a Council Decision on the conclusion, on behalf of the European Union, of the Agreement between the European Union and the Principality of Liechtenstein on supplementary rules in relation to the instrument for financial support for border management and visa policy, as part of the Integrated Border Management Fund.

On 13 November 2023, the Council adopted a Decision on the signing, on behalf of the Union, and provisional application of the Agreement between the European Union and the Principality of Liechtenstein on supplementary rules in relation to the Instrument for Financial Support for Border Management and Visa Policy, as part of the Integrated Border Management Fund, for the period 2021 to 2027. The Agreement was signed on 28 November 2023 in Brussels.

On 4 December 2023, the Council requested the European Parliament to give its consent to the draft Council Decision on the conclusion of the above-mentioned Agreement.

b. Position of the Rapporteur

The Instrument for Financial Support for Border Management and Visa Policy, as part of the Integrated Border Management Fund, constitutes a specific instrument in the context of the Schengen acquis designed to ensure strong and effective European integrated border management at external borders, while safeguarding the free movement of persons, in full compliance with the Member States' and associated countries' commitments on fundamental rights, and to support a uniform implementation of the common visa policy, thereby contributing to guaranteeing a high level of security in Member States and associated countries and strengthening the overall functioning of the Schengen area.

The Rapporteur agrees that BMVI offers the opportunity to implement actions in shared management, direct and indirect management modes, and the Agreement should therefore ensure that the implementation in any of these methods is made in the Principality of Liechtenstein in accordance with the principles and rules of the Union on financial management and control.

The Rapporteur considers as well that, given the specific nature of the Schengen acquis and the importance of its uniform application for the integrity of the Schengen area, all rules applicable to the management of the programmes should apply for the Principality of Liechtenstein in the same way as for Member States.

The Rapporteur considers that the conclusion of formal, legally binding agreements in the framework of cooperation with associated countries, as opposed to other type of arrangements, is of crucial importance in order to ensure transparency, public scrutiny and democratic oversight. This is especially important when it comes to the use of the EU budget.

Other specific provisions should be further complied with. By virtue of the Schengen association agreements, the Principality of Liechtenstein must fully accept the Union measures, including the BMVI Regulation, which develop or build upon the Schengen acquis, and take the necessary measures to ensure compliance with the provisions relevant for the financial management and control which are laid down in the TFEU and in Union law that derives its legal basis from the TFEU.

The agreements also introduce specific mechanisms for swift adjustments to the agreement with the Principality of Liechtenstein, in the event of changes to key Union legislation relevant to the implementation, such as the Financial Regulation and the Common Provisions Regulation. The agreement ensures, as well, that the mid-term review of the BMVI takes into account the delayed participation of the Schengen associated countries.

Furthermore, for budgetary and financial controls, the Member States are subject to horizontal obligations (e.g. the competence of the Court of Auditors, of the European Anti-Fraud Office (OLAF), of the EPPO and of the Commission), either derived from the Treaty directly or from secondary Union legislation, including the Common Provisions Regulation as mentioned above. These obligations apply to the Member States ipso facto and are therefore not laid down in the BMVI Regulation. Consequently, these obligations need to be extended to the Principality of Liechtenstein via the Agreement concerned.

Finally, the agreement also contains a provision on European Travel Information and Authorisation System (ETIAS).

As a conclusion, your Rapporteur finds that it is appropriate to establish an Agreement setting out the supplementary rules necessary for the participation of the Principality of Liechtenstein in the Instrument for Financial Support for Border Management and Visa Policy (the "BMVI") as part of the Integrated Border Management Fund for the programming period 2021 to 2027 in accordance with Article 7(6) of Regulation (EU) 2021/1148 (the "BMVI Regulation").

In light of the above, the rapporteur recommends that Parliament gives its consent to the draft Council decision and instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States.

The rapporteur declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.