Changes from adopted text to adopted text

Added(2) a suspension of commitments;

Added(3) a reduction of commitments, including through financial corrections or transfers to other spending programmes;

Added(4) a reduction of pre-financing;

Added(5) an interruption of payment deadlines;

Added(6) a suspension of payments.

Added2. Unless the decision adopting the measures provides otherwise, the imposition of appropriate measures shall not affect the obligation of government entities referred to in point (a) of paragraph 1 or of Member States referred to in point (b) of paragraph 1 to implement the programme or fund affected by the measure, and in particular the obligation to make payments to final recipients or beneficiaries.

Added3. The measures taken shall be proportionate to the nature, gravity, duration and scope of the generalised deficiency as regards the rule of law. They shall, insofar as possible, target the Union actions affected or potentially affected by that deficiency. [Am. 48]

Added3a. The Commission shall provide information and guidance for the benefit of final recipients or beneficiaries on the obligations by Member States referred to in paragraph 2 via a website or internet portal.

AddedThe Commission shall also provide, on the same website or portal, adequate tools for final recipients or beneficiaries to inform the Commission about any breach of these obligations that, in the view of these final recipients or beneficiaries, directly affects them. This paragraph shall be applied in a manner that ensures protection of persons reporting on breaches of Union law, in line with the principles set out in Directive XXX (Directive on the protection of persons reporting on breaches of Union law). Information provided by final recipients or beneficiaries in accordance with this paragraph may only be taken into account by the Commission if accompanied by a proof that the concerned final recipient or beneficiary has lodged a formal complaint to the competent authority. [Am. 49]

Added3b. Based on the information provided by the final recipients or beneficiaries in accordance with paragraph 3 a, the Commission shall ensure that any amount due by government entities or Member States in accordance with paragraph 2 is effectively paid to final recipients or beneficiaries.

AddedWhere necessary:

Addeda) with reference to funds from the Union budget managed in accordance with Article 62(1)(c) of the Financial Regulation, the Commission shall:

Addedi) recover the payment made to any of the bodies referred to in points (v) to (vii) of Article 62(1)(c) of the Financial Regulation for an amount equivalent to the amount not paid to final recipients or beneficiaries, in breach of paragraph 2 of this Article;

Addedii) transfer an amount equivalent to the amount referred to in the previous point to the Union reserve referred to in Article 12 of Council Regulation XXX (MFF Regulation). Such amount shall be considered margin left available within the meaning of point (a) of Article 12(1) of Council Regulation XXX (MFF Regulation) and shall be mobilised in accordance with Article 12(2) of Council Regulation XXX (MFF Regulation), for the benefit, to the possible extent, of the final recipients or beneficiaries referred to in paragraph 2 of this Article;

Addedb) with reference to funds from the Union budget managed in accordance with Article 62(1)(b) of the Financial Regulation:

Addedi) the obligation of government authorities or of Member States referred to in paragraph 2 of this Article shall be considered an obligation of Member States within the meaning of [Article 63] of Regulation XXX (CPR Regulation). Any breach of such obligation shall be treated in accordance with [Article 98] of Regulation XXX (CPR Regulation);

Addedii) the amount resulting from reduced support from the Funds to a programme, in application of [Article 98] of Regulation XXX (CPR Regulation) shall be transferred by the Commission to the Union reserve referred to in Article 12 of Council Regulation XXX (MFF Regulation). Such amount shall be considered margin left available within the meaning of point a) of Article 12(1) of Council Regulation XXX (MFF Regulation) and shall be mobilised in accordance with paragraph 2 of Article 12 of Council Regulation XXC (MFF Regulation), for the benefit, to the possible extent, of the final recipients or beneficiaries referred to in paragraph 2 of this Article. [Am. 50]

AddedArticle 5 Procedure

Added1. Where the Commission, taking into account any opinions of the Panel, finds that it has reasonable grounds to believe that the conditions of Article 3 are fulfilled, it shall send a written notification to that Member State, setting out the grounds on which it based its finding. The Commission shall without delay inform the European Parliament and the Council of such notification and its contents. [Am. 51]

Added2. When assessing whether the conditions of Article 3 are fulfilled, the Commission may shall take into account all relevant information, including opinions of the Panel, decisions of the Court of Justice of the European Union, resolutions of the European Parliament, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations and networks. The Commission shall also take into account the criteria used in the context of Union accession negotiations, in particular the chapters of the acquis on judiciary and fundamental rights, justice, freedom and security, financial control and taxation, as well as the guidelines used in the context of the Cooperation and Verification Mechanism to track the progress of a Member State. [Am. 52]

Added3. The Commission may request any additional information required for its assessment, both before and after having made a finding pursuant to paragraph 1.

Added4. The Member State concerned shall provide all the required information and may make observations within a time limit specified by the Commission, which shall not be less than 1 one month nor more than three months from the date of notification of the finding. In its observations, the Member State may propose the adoption of remedial measures. [Am. 53]

Added5. The Commission shall take into account the information received and any observations made by the Member State concerned, as well as the adequacy of any proposed remedial measures, when deciding whether or not to submit a proposal for adopt a decision on the appropriate any measures referred to in Article 4. The Commission shall decide on the follow-up to be given to the information received within an indicative time limit of one month, and in any case within a reasonable timeframe from the date of receipt of that information. [Am. 54]

Added5a. When assessing the proportionality of the measures to be imposed, the Commission shall have due regard to the information and guidance referred to in paragraph 2. [Am. 55]

Added6. Where the Commission considers that the generalised deficiency as regards the rule of law is established, it shall submit a proposal for an implementing act adopt a decision on the appropriate measures to the Council referred to in Article 4 by means of an implementing act. [Am. 56]

Added6a. At the same time as it adopts its decision, the Commission shall simultaneously submit to the European Parliament and to the Council a proposal to transfer to a budgetary reserve an amount equivalent to the value of the measures adopted. [Am. 57]

Added6b. By way of derogation from Article 31(4) and (6) of the Financial Regulation, the European Parliament and the Council shall deliberate upon the transfer proposal within four weeks of its receipt by both institutions. The transfer proposal shall be considered to be approved unless, within the four-week period, the European Parliament, acting by majority of the votes cast, or the Council, acting by qualified majority, amend or reject it. If the European Parliament or the Council amend the transfer proposal, Article 31(8) of the Financial Regulation shall apply. [Am. 58]

Added6c. The decision referred to in paragraph 6 shall enter into force if neither the European Parliament nor the Council reject the transfer proposal within the period referred to in paragraph 6b. [Am. 59]

Added7. The decision shall be deemed to have been adopted by the Council, unless it decides, by qualified majority, to reject the Commission proposal within one month of its adoption by the Commission. [Am. 60]

Added8. The Council, acting by a qualified majority, may amend the Commission’s proposal and adopt the amended text as a Council decision. [Am. 61]

AddedArticle 6 Lifting of measures

Added1. The Member State concerned may, at any time, submit to the Commission a formal notification including evidence to show that the generalised deficiency as regards the rule of law has been remedied or has ceased to exist. [Am. 62]

Added2. At the request of the Member State concerned or on its own initiative, the Commission, taking into account any opinions of the Panel, shall assess the situation in the Member State concerned within an indicative time limit of one month, and in any case within a reasonable timeframe from the date of receipt of the formal notification. Once the generalised deficiencies as regards the rule of law which on the grounds of which the appropriate measures referred to in Article 4 were adopted cease to exist in full or in part, the Commission shall, submit to the Council a proposal for without delay, adopt a decision lifting those measures in full or in part. At the same time as it adopts its decision, the Commission shall simultaneously submit to the European Parliament and to the Council a proposal to lift, in full or in part, the budgetary reserve referred to in Article 5(6a). The procedure set out in paragraphs 2, 4, 5, 6, and 7 6b and 6c of Article 5 shall apply. [Am. 63]

Added3. Where measures concerning the suspension of the approval of one or more programmes or amendments thereof referred to in point (i) of Article 4(2)(b) or the suspension of commitments referred to in point (ii) of Article 4(2)(b) are lifted, amounts corresponding to the suspended commitments shall be entered in the budget subject to Article 7 of Council Regulation (EU, Euratom) No XXXX (MFF Regulation). Suspended commitments of year n may not be entered in the budget beyond year n+2. As from year n+3, an amount equivalent to the suspended commitments shall be entered in the Union Reserve for Commitments provided for in Article 12 of Council Regulation (EU, Euratom) No XXXX (MFF Regulation). [Am. 64]

AddedArticle 7 Information of the European Parliament

AddedThe Commission shall immediately inform the European Parliament of any measures proposed or adopted pursuant to Articles 4 and 5 [Am. 65]

AddedArticle 7a Reporting

AddedThe Commission shall report to the European Parliament and the Council on the application of this Regulation, in particular on the effectiveness of the measures adopted, if any, at the latest five years after its entry into force.

AddedThe report shall be accompanied where necessary by appropriate proposals. [Am. 66]

AddedArticle 8 Entry into force

AddedThis Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. It shall apply from 1 January 2021. [Am. 67]

AddedArticle 8a Inclusion in the Financial Regulation

AddedThe contents of this Regulation shall be inserted into the Financial Regulation upon its next revision. [Am. 68]

AddedThis Regulation shall be binding in its entirety and directly applicable in all Member States.

AddedDone at

AddedFor the European Parliament For the Council

AddedThe President The President