Changes from report parliamentary committee draft to plenary report

Added3. The annual progress report referred to in paragraph 1 shall also contain the information set out in Annex III.

Added4. Each Member State shall make its annual progress report public.

Added4a. Member States shall discuss the progress report in their national parliaments and with civil society, social partners and relevant stakeholders, in accordance with their national legal frameworks.

AddedMonitoring by the Commission

Added1. The Commission shall monitor the implementation of the national medium-term fiscal-structural plan, and in particular, the net expenditure path and the reforms and investments underpinning the adjustment period.

Added2. The Commission shall set up a control account, ▌and shall keep track of cumulative upward (debit) and downward (credit) deviations of actual net expenditures from the net expenditure path.

Added2a. The cumulated balance of the control account in a given period is the sum of the yearly debits and credits registered during that period.

Added2b. A Member State shall be deemed not to be in compliance with its net expenditure path where the cumulated balance of the control account during the adjustment period is higher than 1% of GDP in the years of positive GDP growth.

Added2c. By way of derogation from paragraph 2b, in order to account for certain strategic investments addressing the common priorities of the Union that have added value for the Union as a whole, the Commission may exceptionally allow a Member State to temporarily exceed the limit set out in paragraph 2b during a defined period of a maximum of 5 years, ensuring that the deviation falls below that limit by the end of that period.

AddedRole of independent fiscal institutions

Added1. Each national independent fiscal institution referred to in Article 8 of Council Directive […] [on the national budgetary frameworks] shall provide an assessment of compliance of the budgetary outturns data reported in the progress report referred to in Article 20 with the net expenditure path, including of non-quantifiable targets. Where applicable, each national independent fiscal institution shall also analyse the factors underlying a deviation from the net expenditure path.

Added1a. The qualitative and quantitative assessments in the opinions of the national independent fiscal institution referred to in paragraph 1 shall take into account different views and allow for the disclosure of minority and divergent positions. For that purpose, relevant stakeholders shall be regularly consulted.

Added1b. Opinions and assessments delivered by the independent fiscal institutions in accordance with this Regulation shall be made public.

AddedRole of the European Fiscal Board

Added1. The Commission shall establish the European Fiscal Board (EFB), an independent expert group, which shall have an advisory role in respect of the Union’s economic policy coordination. The Commission shall be represented on the EFB but shall not have voting rights.

Added2. The EFB shall:

Added(a) be independent and not seek or take instructions from the budgetary authorities of the Member States, from the Commission or from any other public or private bodies;

Added(b) have the capacity to produce opinions in a timely manner and communicate publicly;

Added(c) ensure a diversity of views and backgrounds in the composition of its members;

Added(d) allow for the disclosure of minority and divergent positions in its opinions;

Added(e) have adequate and stable own resources to carry out its mandate in an effective manner, including any type of analysis within its mandate;

Added(f) have adequate and timely access to all information by the Commission and the Member States needed to fulfil its mandate;

Added(g) regularly consult relevant stakeholders.

Added3. The EFB shall carry out the tasks laid down in Article 2 of Commission Decision (EU) 2015/1937. In addition, it shall provide advice to the European Parliament, the Council, the Commission and the Eurogroup.

AddedCommission warning and Council recommendation for policy measures

Added1. In the event of a significant risk of deviation from the net expenditure path as monitored by the control account or a risk that the government deficit may exceed the 3% of GDP reference value, the Commission may address a warning to the Member State concerned in accordance with Article 121(4) TFEU.

Added2. On the basis of a Commission recommendation, the Council shall, within one month of the Commission warning referred to in paragraph 1, adopt a recommendation to the Member State concerned for the necessary policy measures, in accordance with Article 121(4) TFEU.

AddedSevere economic downturn in the euro area or the Union as a whole

AddedOn a recommendation from the Commission, the Council may adopt a recommendation allowing Member States to deviate from their net expenditure path, in the event of a severe economic downturn in the euro area or the Union as a whole, provided that, according to a quantitative and qualitative analysis by the Commission, such deviation does not endanger fiscal sustainability in the medium term. The Council shall specify a time-limit for such deviation.

AddedThe Commission recommendations referred to in the first subparagraph shall be accompanied by an opinion of the EFB. However, failure by the EFB to deliver such an opinion within a reasonable timeframe shall not prevent the Commission from putting forward a recommendation.

AddedAs long as the severe economic downturn in the euro area or the Union as a whole persists, the Commission shall continue to monitor debt sustainability and ensure policy coordination and a consistent policy mix that takes into account the euro area and the Union dimension.

AddedThe Council, on a recommendation from the Commission, may extend the period during which Member States may deviate from the net expenditure paths, provided that the severe economic downturn in the euro area or the Union as a whole persists. An extension may be granted more than once. However, each extension shall be for an additional period of one year at most.

AddedExceptional circumstances outside the control of the Member State leading to a major impact on the public finances of the Member State concerned

AddedOn a recommendation from the Commission, the Council may adopt a recommendation allowing a Member State to deviate from its net expenditure path where exceptional circumstances outside the control of the Member State lead to a major impact on the public finances of the Member State concerned, provided that, according to a quantitative and qualitative analysis by the Commission, it does not endanger fiscal sustainability in the medium term. The Council shall specify a time-limit for such a deviation.

AddedThe Council, on a recommendation from the Commission, may extend the period during which the Member State may deviate from the net expenditure path, provided that the exceptional circumstances persist. An extension may be granted more than once. However, each extension shall be for an additional period of one year at most.

AddedDEMOCRATIC ACCOUNTABILITY AND TRANSPARENCY

AddedRole of the European Parliament

Added1. The European Parliament shall be duly involved in a regular and structured way in the European Semester in order to increase transparency, democratic accountability and ownership for the decisions taken, in particular by means of the dialogues referred to in this Regulation.

Added2. The Commission shall transmit to the European Parliament the national medium-term fiscal-structural plans submitted by the Member States. The Commission shall inform the European Parliament of its overall assessment of those medium-term fiscal-structural plans. The competent committee of the European Parliament may request the Commission and relevant stakeholders, including social partners, to appear before it. On such occasions, the Commission shall be invited to present its assessment of medium-term fiscal-structural plans and the relevant stakeholders shall be invited to comment thereon.

Added3. The Council and the Commission shall regularly inform the European Parliament of the application of this Regulation.

Added4. The Council and the Commission shall include in their report to the European Parliament the results of the multilateral surveillance carried out pursuant to this Regulation.

Added5. The Eurogroup shall annually report to the European Parliament on the outcome of its work on the specific responsibilities related to the single currency in the area of multilateral surveillance.

Added6. Information shall be prepared and transmitted by the Commission to the Council and any of its preparatory bodies in the context of this Regulation, or the application thereof, and shall be made available to the European Parliament simultaneously and on equal terms without undue delay, subject to confidentiality arrangements where necessary. Such information shall include, but shall not be limited to:

Added(a) the debt sustainability assessments and its methodological framework;

Added(b) the reference trajectories;

Added(c) the national medium-term fiscal-structural plans submitted by the Member States and the proposed net expenditure path;

Added(d) an overview of the Commission’s preliminary findings concerning general progress in implementation of national medium-term fiscal-structural plan, including the balance of the control account;

Added(e) an overview of the Commission’s preliminary findings concerning the satisfactory fulfilment of the set of reform and investment commitments underpinning the extension of the adjustment period;

Added(f) the evaluation of the country-specific recommendations and social convergence risks, and the progress towards the implementation of the principles of the European Pillar of Social Rights;

Added(g) the revisions of national medium-term fiscal-structural plans;

Added(h) the outcome of missions to Member States under Articles 34 and 35;

Added(i) the Commission warning under Article 23;

Added(j) the risk of non-compliance with the net expenditure paths;

Added(k) the Commission's quantitative and qualitative analysis that, in case of activation of the escape clauses pursuant to Article 24 and Article 25, medium-term sustainability shall not be endangered;

Added(l) any other relevant information and documentation provided by the Commission to the competent committee of the European Parliament in relation to the implementation of coordination of economic policies and multilateral budgetary surveillance.

Added7. Relevant outcomes of discussions held in Council preparatory bodies shall be shared with the competent committee of the European Parliament.

Added8. The competent committee of the European Parliament may invite the Commission to provide information on the state of play of the national medium-term fiscal-structural plans in the context of the medium-term fiscal-structural plan dialogues referred to in Article 26a.

Added9. The Commission shall take into account in its policy guidance any elements arising from the views expressed through the European Semester and medium-term fiscal-structural plan dialogues as referred to in Articles 26 and 26a, including any resolutions by the European Parliament.

AddedEuropean Semester Dialogue

AddedIn order to enhance the dialogue between the institutions of the Union, in particular the European Parliament, the Council and the Commission, and to ensure transparency and accountability, the President of the Council, the Commission and, where appropriate, the President of the European Council or the President of the Eurogroup, shall appear before the European Parliament when invited, to discuss the policy guidance to Member States issued by the Commission, the conclusions drawn by the European Council and the results of multilateral surveillance carried out under this Regulation. A representative of the Economic and Financial Committee, the Economic Policy Committee, the Employment Committee and the Social Protection Committee may be invited by the European Parliament within the framework of the European Semester Dialogue ▌. Relevant stakeholders, in particular the social partners, shall be involved within the framework of the European Semester, on the main policy issues where appropriate, in accordance with the provisions of the TFEU and national legal and political arrangements.