Changes from report parliamentary committee draft to plenary report

ChangedDRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

▸9 unchanged paragraphs

on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) No 1173/2011 and (EU) No 473/2013 as regards alignment with the EU economic governance framework and further simplification of that framework

(COM(2025)0591 – C100227/2025 – 2025/0311(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2025)0591),

– having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C100227/2025),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the opinion of the European Central Bank of 18 November 2025,

– having regard to Rule 60 of its Rules of Procedure,

Changed– having regard to the report of the Committee on Economic and Monetary Affairs (A100000/2026),(A10-0099/2026),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Change 1

RemovedRecital 7: (7) In order to enhance the dialogue between the institutions of the Union, in particular the European Parliament, the Council and the Commission, and to ensure greater transparency and accountability, Regulation (EU) No 1173/2011 allows for an economic dialogue between the institutions of the Union, upon the invitation of the competent committee of the European Parliament, to discuss decisions taken in relation to the imposition of financial sanctions due to non-compliance with the Union’s fiscal rules.

AddedAMENDMENTS BY THE EUROPEAN PARLIAMENT*

RemovedRecital 27: (27) In order to increase transparency, accountability and ownership for the decisions taken in the context of Regulation (EU) No 473/2013, an economic dialogue may take place between the European Parliament, the Council and the Commission on the specification of the content of the DBPs, the results of the discussion of the Eurogroup on the Commission DBP opinions to the extent that they have been made public, and the overall assessment of the budgetary situation and prospects in the euro area as a whole.

Addedto the Commission proposal

RemovedRegulation (EU) No 1173/2011

Added---------------------------------------------------------

RemovedArticle 1 – paragraph 1 – point 11, Article 13 – title: Review and reports on the application of this Regulation

Added2025/0311(COD)

RemovedRegulation (EU) No 473/2013

AddedProposal for a

RemovedArticle 2 – paragraph 1 – point 14 – point a – point ii, Article 15 – paragraph 1 – point d: deleted

AddedREGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

RemovedRegulation (EU) No 473/2013

Addedamending Regulations (EU) No 1173/2011 and (EU) No 473/2013 as regards alignment with the EU economic governance framework and further simplification of that framework

RemovedArticle 2 – paragraph 1 – point 14 – point a– point ii a (new), Article 15 – paragraph 1 – point d: (iia) point (d) is replaced by the following: / ‘(d) Council recommendations made public under Article 126(8) TFEU.’;

AddedTHE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

RemovedRegulation (EU) No 473/2013

AddedHaving regard to the Treaty on the Functioning of the European Union, and in particular Article 121(6) in combination with Article 136 thereof,

RemovedArticle 2 – paragraph 1 – point 14 – point b, Article 15 – paragraph 2: deleted

AddedHaving regard to the proposal from the European Commission,

RemovedRegulation (EU) No 473/2013

AddedAfter transmission of the draft legislative act to the national parliaments,

RemovedArticle 2 – paragraph 1 – point 14 – point b a (new), Article 15 – paragraph 2: (ba) paragraph 2 is amended as follows: / ‘2. The competent committee of the European Parliament may offer the opportunity to the Member State that is the subject of the Council acts referred to in paragraph 1(d) to participate in an exchange of views’.

AddedHaving regard to the opinion of the European Central Bank,

RemovedThe reintroduction of the "economic dialogue" (Article 15 of Regulation (EU) No 473/2013) intends to retain the Parliament's role.

AddedActing in accordance with the ordinary legislative procedure,

AddedWhereas:

Added(1) The Union’s economic governance framework was reformed in 2024. The reform aimed to facilitate effective economic surveillance, anchored in a common framework that ensures equal treatment and multilateral policy coordination. The objectives of the reform were to further promote sound and sustainable public finances, sound and inclusive growth and resilience through reforms and investment, prevent the occurrence of excessive deficits, and strengthen national ownership. In order to achieve those objectives, the reform introduced new concepts and made changes to the structure of the Union’s economic governance framework. The reform was implemented by the adoption of Regulation (EU) 2024/1263 of the European Parliament and of the Council, Council Regulation (EU) 2024/1264 and Council Directive (EU) 2024/1265.

Added(2) In its Communication of 11 February 2025 entitled ‘A simpler and faster Europe: Communication on implementation and simplification’, the Commission set out a vision for an implementation and simplification agenda that aims to boost competitiveness and safeguard economic, social and environmental goals by reducing regulatory burdens and simplifying Union law, thereby making its implementation easier.

Added(3) In the context of the 2024 reform of the Union’s economic governance framework and with the view to simplifying, consolidating and codifying legislation, it is necessary to amend Regulations (EU) No 1173/2011 and (EU) No 473/2013 of the European Parliament and of the Council in order to ensure consistency with other acts of the economic governance framework and contribute to its streamlining and simplification.

Added(4) Member States whose currency is the euro have a particular interest in and a responsibility to conduct economic policies that promote the proper functioning of the economic and monetary union and to avoid policies that jeopardise that functioning. Article 136 of the TFEU allows the adoption of specific measures in the euro area which go beyond the provisions applicable to all Member States, for the purpose of ensuring the proper functioning of the economic and monetary union, including the additional sanctions introduced by Regulation (EU) No 1173/2011 to enhance the credibility of the fiscal surveillance framework of the Union and to deter from the misrepresentation, whether intentional or due to serious negligence, of government deficit and debt data that is an essential input to economic policy coordination in the Union.

Added(5) One of the key goals of the 2024 reform of the Union’s economic governance framework was to strengthen fiscal surveillance and enforcement procedures to deliver on the commitment of promoting sound and sustainable public finances and sustainable and inclusive growth. Enforcement mechanisms were thus reinforced, including by de-constraining the effective use of financial sanctions by lowering their amounts. In line with the 2024 reform, Regulation (EU) No 1173/2011 should be amended to ensure its consistency with other elements of the framework, namely the provisions of Regulation (EU) 2024/1263 and Regulation (EC) No 1467/97.

Added(6) The 2024 reform of the Union’s economic governance framework eliminated the concept of a significant deviation and the related procedure from the requirements of Regulation (EU) 2024/1263, in line with the intention of the co-legislators to simplify the fiscal framework and to apply a risk-based approach. With the removal of the significant deviation procedure, the requirement for a Member State to lodge with the Commission an interest-bearing deposit, triggered by a failure to comply with a significant deviation procedure, should be deleted from Regulation (EU) No 1173/2011. Article 1, point (10), of Regulation (EU) 2024/1264 amended Regulation (EC) No 1467/97 by reducing the amount of financial sanctions allowed under the corrective arm, while making the imposition of those sanctions more gradual. Regulation (EU) No 1173/2011 should be amended to reflect those principles for the imposition of financial sanctions with respect to the imposition of fines.

Added(7) In order to enhance the dialogue between the institutions of the Union, in particular the European Parliament, the Council and the Commission, and to ensure greater transparency and accountability, Regulation (EU) No 1173/2011 allows for an economic dialogue between the institutions of the Union, upon the invitation of the competent committee of the European Parliament, to discuss decisions taken in relation to the imposition of financial sanctions due to non-compliance with the Union’s fiscal rules. ▌

Added(8) The power to adopt delegated acts related to the imposition of sanctions concerning the manipulation of statistics, conferred on the Commission under Regulation (EU) No 1173/2011, is no longer needed and should be deleted.

Added(9) Regulation (EU) No 1173/2011 should be amended to clarify the deadline and the content of the Commission’s report on the application of that Regulation.

Added(10) The national medium-term fiscal-structural plans, introduced by Regulation (EU) 2024/1263, are the cornerstone of the 2024 reform. They replaced the Stability and Convergence Programmes and the National Reform Programmes, thereby bringing together the fiscal, reform and investment commitments of each Member State within a common framework. Regulation (EU) No 473/2013 should be amended to take into account the introduction of the national medium-term fiscal-structural plans in the common framework.

Added(10a) Regulation (EU) 2024/1263 requires national medium-term fiscal-structural plans to address the Union’s common priorities. In accordance with Article 13, point (c), of that Regulation, those common priorities include a fair, green and digital transition, including the climate objectives set out in Regulation (EU) 2021/1119 of the European Parliament and of the Council, as well as social and economic resilience, including the European Pillar of Social Rights, energy security, and, where necessary, the build-up of defence capabilities.

Added(11) Regulation (EU) 2024/1263 established provisions to ensure consistency with Regulation (EU) No 1176/2011 of the European Parliament and of the Council, in particular by integrating in the procedure set out by Regulation (EU) 2024/1263 measures and reforms to be taken in the context of the procedure for prevention and correction of excessive macroeconomic imbalances. Specifically, in accordance with Article 31(1), point (a), of Regulation (EU) 2024/1263, an unsatisfactory implementation of reforms and investments included in a Member State’s national medium-term fiscal-structural plan that are relevant for macroeconomic imbalances is to be taken into account by the Commission when undertaking in-depth reviews and when considering whether to establish the existence of an excessive imbalance under Regulation (EU) No 1176/2011. Moreover, in accordance with Article 17(2) of Regulation (EU) 2024/1263, when an excessive imbalance procedure is launched, the Member State is to submit a revised medium-term fiscal-structural plan, which is also to serve as its corrective action plan under Regulation (EU) No 1176/2011.

Added(12) In order to simplify the Union’s fiscal framework and increase transparency, the 2024 reform introduced a single operational indicator anchored in debt sustainability which serves as a basis for setting the fiscal path and for carrying out annual fiscal surveillance for each Member State. That single operational indicator, based on the net expenditure path, replaces the medium-term objective, the structural balance, the net expenditure benchmark and the debt reduction benchmark of the previous fiscal framework. Member States under an excessive deficit procedure (EDP) receive a corrective net expenditure path based on Council Regulation (EC) No 1467/97.

Added(13) In order to simplify the legal framework, the definition of an independent body in Regulation (EU) No 473/2013 should be amended to refer to Article 8a of Council Directive 2011/85/EU which established provisions to ensure that the requirements for independence safeguards, resources and tasks apply to those independent bodies in all Member States. Moreover, Article 4(5) of Directive 2011/85/EU already provides for a technical dialogue between Member States and the Commission on the assumptions underpinning the macroeconomic and budgetary forecasts. It is therefore not necessary to include that provision in Regulation (EU) No 473/2013.

Added(14) Directive 2011/85/EU establishes the procedures for national medium-term budgetary frameworks providing for the adoption of multiannual fiscal planning. Moreover, Article 9(2), point (c), of that Directive sets the parameters for the national medium-term budgetary frameworks encompassing a description of envisaged medium-term policies, including reforms and investments, with an impact on general government finances and sustainable and inclusive growth. In order to simplify the legal framework, Regulation (EU) No 473/2013 should be amended to avoid a repetition of the provisions set out in Directive 2011/85/EU.

Added(15) Regulation (EU) 2024/1263 provides that independent fiscal institutions may be asked to issue opinions on the macroeconomic forecast and on the macroeconomic assumptions underpinning the net expenditure path of the national medium-term fiscal-structural plan or of the revised national medium-term fiscal-structural plan. From 2032 onwards, the opinion of those institutions becomes mandatory, provided that they have built sufficient capacity. Moreover, independent fiscal institutions may be asked to provide an assessment of the budgetary outturns reported in the annual progress report with the net expenditure path as set by the Council. The relevant independent fiscal institutions may also be requested to analyse the factors behind a deviation from the set net expenditure path. In order to ensure consistency with the 2024 reform of the Union’s economic governance framework and improve the effectiveness of independent fiscal institutions, Regulation (EU) No 473/2013 should be amended to reflect the changes to the role of independent fiscal institutions introduced by Regulation (EU) 2024/1263.

Added(16) Regulation (EU) No 473/2013 should be amended to ensure that national budgetary procedures are consistent with the recommendations issued in the context of Regulation (EU) 2024/1263, with recommendations and decisions issued in the context of Regulation (EC) No 1467/1997, with decisions under Regulation (EU) No 1173/2011 where appropriate and with the rules and procedures laid down in Directive 2011/85/EU.

Added(17) Regulation (EU) No 473/2013 should be amended to prescribe that the draft budgetary plans (‘DBPs’) should be consistent and comply with the requirements resulting from the 2024 reform of the Union’s governance framework. The DBPs should reflect the implementation of the Council Recommendations regarding the medium-term fiscal-structural plans. In that respect, they should set out how the fiscal policy strategy will be delivered in the next year, and present the concrete expenditure and revenue measures that ensure compliance with the net expenditure path set by the Council under Regulation (EU) 2024/1263 or explain any deviations from that net expenditure path. If the Member State is under an EDP, the DBPs should present concrete expenditure and revenue measures that ensure compliance with the corrective path set under Regulation (EC) No 1467/97.

Added(18) At the same time, for simplification purposes and to reduce administrative burden, Regulation (EU) No 473/2013 should be amended to reduce the reporting obligation of Member States regarding data that in the past proved not to provide a clear value added. In addition, to reduce the reporting burden and considering that reporting to the Commission is sufficient to allow for the coordination of the national debt issuance of Member States on the Union’s Sovereign Debt Markets, Regulation (EU) No 473/2013 should be amended to eliminate ex ante reporting by Member States on their public debt issuance plans to the Eurogroup.