Changes from report parliamentary committee draft to plenary report

Added(c) complementing the multilateral surveillance system of budgetary policies, as established by Regulation (EU) 2024/1263, with additional monitoring requirements in order to ensure that Union policy recommendations in the budgetary area are appropriately integrated in the national budgetary preparations;

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Added* Regulation (EU) 2024/1263 of the European Parliament and of the Council of 29 April 2024 on the effective coordination of economic policies and on multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97 (OJ L, 2024/1263, 30.4.2024, ELI: http://data.europa.eu/eli/reg/2024/1263/oj).’;

Added(b) point (e) is deleted;

Added(2) Article 2 is amended as follows:

Added(a) paragraph 1 is amended as follows:

Added(i) the first subparagraph is amended as follows:

Added‘(a) ‘independent body’ means an independent fiscal institution established in accordance with Article 8a of Directive 2011/85/EU;’;

Added– point (d) is replaced by the following:

Added‘(d) ‘national medium-term fiscal-structural plan’ means the national medium-term fiscal-structural plan as defined in Article 2, point (6), of Regulation (EU) 2024/1263;’;

Added– the following points (e) and (f) are added:

Added‘(e) ‘net expenditure path’ means the net expenditure path as defined in Article 2, point (5), of Regulation (EU) 2024/1263;

Added(f) ‘corrective net expenditure path’ means the corrective net expenditure path referred to in Article 3(4) of Regulation (EC) No 1467/97.’;

Added(ii) the second subparagraph is deleted;

Added(b) paragraph 2 is replaced by the following:

Added‘2. The definitions of ‘general government sector’ and of ‘subsectors of the general government sector’ set out in Annex A to Regulation (EU) No 549/2013 of the European Parliament and of the Council* shall also apply to this Regulation.

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Added* Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union (OJ L 174, 26.6.2013, p. 1, ELI: http://data.europa.eu/eli/reg/2013/549/oj).’;

Added(3) Article 3 is replaced by the following:

Added‘Article 3

AddedConsistency with the framework for economic policy coordination

AddedThe Member States’ budgetary procedure shall be consistent with all of the following:

Added(1) the recommendations issued in the context of Regulation (EU) 2024/1263;

Added(2) where appropriate, the Council recommendations and decisions issued in the context of Regulation (EC) No 1467/97;

Added(3) where appropriate, decisions under Regulation (EU) No 1173/2011;

Added(4) the rules and procedures laid down in Directive 2011/85/EU.’;

Added(4) Article 4 is amended as follows:

Added(a) paragraph 1 is deleted;

Added(b) paragraph 4 is replaced by the following:

Added‘4. National multi-annual fiscal planning under Directive 2011/85/EU and draft budgets referred to in paragraph 2 of this Article shall be based on independent macroeconomic forecasts, and shall indicate whether the budgetary forecasts have been produced or endorsed by an independent body. Those forecasts shall be made public together with the relevant national multi-annual fiscal planning documents under Directive 2011/85/EU and the draft budgets that they underpin.’;

Added(5) Article 5 is amended as follows:

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

Added‘1. Irrespective of the other tasks set out in Article 8a of Directive 2011/85/EU, Member States shall have in place one or more independent bodies for:

Added(a) providing the opinion referred to in Article 11(2) and the assessment referred to in Article 23 of Regulation (EU) 2024/1263;

Added(b) monitoring compliance with the national numerical fiscal rules referred to in Articles 5 and 8a of Directive 2011/85/EU’;

Added(b) paragraph 2 is deleted;

Added(6) Article 6 is replaced by the following:

Added‘Article 6

AddedMonitoring requirements

Added1. Member States shall submit annually to the Commission and to the Eurogroup a draft budgetary plan for the forthcoming year by 15 October. That draft budgetary plan shall be consistent with the framework set out in Article 3.

Added2. As soon as the draft budgetary plans referred to in paragraph 1 have been submitted to the Commission, they shall be made public.

Added3. The draft budgetary plan shall contain the following information for the year covered by the draft budget and the previous one:

Added(a) the growth rate of net expenditure, as defined in Article 2, point (2) of Regulation (EU) 2024/1263, and the breakdown of its components implied by the draft budget;

Added(b) a description and quantification of the revenue and expenditure measures included in the draft budget;

Added(c) a quantification of the expenditure on programmes of the Union fully matched by revenue from Union funds, as well as national expenditure on co-financing of programmes funded by the Union included in the draft budget;

Added(d) the projections at unchanged policies for expenditure and revenue as a percentage of GDP for the general government and their main components, including gross fixed capital formation;

Added(e) the macroeconomic projections underpinning the draft budget, including the main assumptions and important economic developments relevant for the draft budget;

Added(f) revenue and expenditure projections for the general government and their main components, based on the most recent available outcome data and consistent with the growth rate of net expenditure, the revenue and expenditure measures, the expenditure on programmes of the Union fully matched by revenue from Union funds and the macroeconomic projections, as referred to in points (a) to (e);

Added(g) the budget balance for the general government, implied by the revenue and expenditure projections, broken down by subsector of general government, as well as the general government debt;

Added(h) relevant information on the general government expenditure by purpose, including on education, healthcare, employment and defence, including investment in defence;

Added(i) the underlying assumptions and methodologies used to estimate the budgetary impact of expenditure and revenue measures;

Added(j) indications on how commitments for reforms and investments set out in the draft budgetary plan, including in particular public investment, address the current recommendations to the Member State concerned in accordance with Articles 121 and 148 TFEU▌ and are instrumental to the achievement of sustainable and inclusive growth and social and economic resilience and contribute to the Union’s objectives set out in Article 13, point (c), of Regulation (EU) 2024/1263;

AddedThe description of revenue and expenditure measures referred to in the first subparagraph, point (b), may be less detailed for measures with a budgetary impact estimated to be lower than 0.1% of GDP. Particular and explicit attention shall be paid to major fiscal policy reform plans, including those with potential spill-over effects for other Member States whose currency is the euro.

Added4. The draft budgetary plan shall explain how the draft budget for the forthcoming year ensures compliance with the net expenditure path set by the Council under Regulation (EU) 2024/1263, or, where applicable, possible deviations from that net expenditure path. For Member States in an excessive deficit procedure under Regulation (EC) No 1467/97, the draft budgetary plan shall explain how the draft budget for the forthcoming year ensures compliance with the corrective net expenditure path.

Added5. The specification of the content of the draft budgetary plan shall be set out in a harmonised framework established by the Commission in cooperation with the Member States.’;

Added(7) Article 7 is amended as follows:

Added(a) paragraph 2 is replaced by the following:

Added‘2. Notwithstanding paragraph 1, where, in exceptional cases, after consulting the Member State concerned within one week of submission of the draft budgetary plan, the Commission identifies, on the basis of transparent and publicly available methodologies and indicators, particularly serious non-compliance of the draft budgetary plan with the net expenditure path set by the Council under Regulation (EU) 2024/1263 or with the corrective net expenditure path under the excessive deficit procedure established under Regulation (EC) No 1467/97, the Commission shall adopt its opinion within two weeks of submission of the draft budgetary plan. In its opinion, the Commission shall request that a revised draft budgetary plan be submitted as soon as possible and in any event within three weeks of the date of its opinion. The Commission's request shall be reasoned and shall be made public.

AddedArticle 6(2), (3) and (4) shall apply to revised draft budgetary plans submitted pursuant to the first subparagraph of this paragraph.

AddedThe Commission shall adopt a new opinion on the revised draft budgetary plan as soon as possible and in any event within three weeks of submission of the revised draft budgetary plan.’;