BETA


2013/0313(COD) Financial rules applicable to the general budget of the Union

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead BUDG GRÄSSLE Ingeborg (icon: PPE PPE) MULDER Jan (icon: ALDE ALDE)
Committee Opinion CONT
Committee Opinion ITRE
Committee Opinion TRAN
Committee Opinion REGI
Lead committee dossier:
Legal Basis:
Euratom Treaty A 106a-pa, TFEU 322-p1

Events

2014/07/09
   EC - Commission response to text adopted in plenary
Documents
2014/05/29
   Final act published in Official Journal
Details

PURPOSE: to revise the Financial Regulation in order to take into account the outcome of the negotiations on the multiannual financial framework for the years 2014-2020.

LEGISLATIVE ACT: Regulation (EU, Euratom) n° 547/2014 of the European Parliament and of the Council amending Regulation (EU, Euratom) No 966/2012 on the financial rules applicable to the general budget of the Union.

CONTENT: the EU Financial Regulation contains all the principles and rules for the implementation of the EU budget and is applicable to all areas of EU expenditure and all revenue.

Following the adoption of Council Regulation (EU, Euratom) No 1311/2013 , and Regulation (EU) No 1316/2013 of the European Parliament and of the Council establishing the Connecting Europe Facility, the new Regulation includes in the Financial Regulation the carry-over rules for the Emergency Aid Reserve and for projects financed under the Connecting Europe Facility.

As regards the Emergency Aid Reserve , the corresponding appropriations are entered in Title ‘Reserves’ of the general budget of the Union. Therefore, the amended Regulation aims to provide for the carry-over to year n+1 of the appropriations placed in reserve and not used in year n.

Furthermore, the Financial Regulation should allow for the carry-over to the following financial year of commitment appropriations not used by the end of each of financial years 2014, 2015 and 2016 for projects financed under the Connecting Europe Facility . The carry-over should be submitted for approval to the European Parliament and the Council.

Lastly, following the adoption of Regulation (EU) No 1303/2013 laying down common provisions on the structural and investment funds, the Financial Regulation is amended in order to make de-committed appropriations available again for the purposes of the implementation of the performance reserve and the uncapped guarantee and securitisation financial instruments in favour of small and medium-sized enterprises (‘SMEs’).

ENTRY INTO FORCE: 18.06.2014.

2014/05/15
   CSL - Draft final act
Documents
2014/05/15
   CSL - Final act signed
2014/05/15
   EP - End of procedure in Parliament
2014/05/06
   EP/CSL - Act adopted by Council after Parliament's 1st reading
2014/05/06
   CSL - Council Meeting
2014/04/16
   EP - Results of vote in Parliament
2014/04/16
   EP - Decision by Parliament, 1st reading/single reading
Details

The European Parliament adopted by 622 votes to 28, with 14 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU, Euratom) No 966/2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002.

Parliament adopted its position at first reading following the ordinary legislative procedure. The amendments adopted in plenary are the result of an agreement reached between the European Parliament and the Council. They amended the proposal as follows:

Performance reserve and financial instruments in favour of SMEs : Parliament and the Council agreed to include in the financial regulation specific provisions as regards the establishment of a performance reserve and instruments in favour of SMEs.

The amended text stipulated that following the adoption of Regulation (EU) No 1303/2013 of the European Parliament and of the Council (general provisions on the structural and investment funds), it is necessary to amend Regulation (EU, Euratom) No 966/2012 in order to make decommitted appropriations available again for the purposes of the implementation of the performance reserve and the uncapped guarantee and securitisation financial instruments in favour of SMEs.

Carry-over of commitment appropriations for the Connecting Europe Facility : even limited delays in the completion of projects financed under the Connecting Europe Facility may result in a loss of annual commitment appropriations and undermine the viability of those projects. To prevent this, it has been decided to allow for the carry-over to the following financial year of commitment appropriations not used by the end of each of financial years 2014, 2015 and 2016 for projects financed under the Connecting Europe Facility. The carry-over should be submitted for approval to the European Parliament and the Council.

A joint statement on the separate discharge for Joint Undertakings under Article 209 of the Financial Regulation is annexed to the legislative resolution.

The European Parliament, the Council and the Commission agree that in order for the Joint Undertakings to benefit from simplified financial rules better adapted to their public-private nature, they should be set up under Article 209 of the Financial Regulation.

In view of the specific nature and the current status of the Joint Undertakings, the three institutions agreed that the Joint Undertakings should continue to be subject to a separate discharge to be given by the European Parliament upon recommendation of the Council.

Documents
2014/02/14
   EP - Committee report tabled for plenary, 1st reading/single reading
Details

The Committee on Budgets adopted the report by Ingeborg GRÄSSLE (EPP, DE) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU, Euratom) No 966/2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002.

The committee recommended that Parliament’s position in first reading following the ordinary legislative procedure should amend the Commission proposal as follows:

Performance reserve and on the SME initiative : Members proposed including in the Financial Regulation specific provisions covering the setting-up of a performance reserve and on the SME initiative in the present MFF-related revision of the Financial Regulation. The amended text stipulated that following the adoption of Regulation (EU) No 1303/2013 of the European Parliament and of the Council, it is necessary to amend Regulation (EU, Euratom) No 966/2012 in order to make decommitted appropriations available again for the purposes of the implementation of the performance reserve and the uncapped guarantee and securitisation financial instruments in favour of small and medium sized enterprises.

Joint statement on the separate discharge for Joint Undertakings under Article 209 of the Financial Regulation : the report endorsed, in line with the request from

CONT Committee Chair to BUDG Committee Chair, a specific joint declaration that was agreed in the context of the negotiations on Commission’s Delegated Regulation on the Model Financial Regulation for Public-Private-Partnership Bodies (PPPs).

The European Parliament, the Council and the Commission agree that in order for the Joint Undertakings to benefit from simplified financial rules better adapted to their public-private nature, they should be set up under Article 209 of the Financial Regulation.

The Commission should: (i) ensure that the financial rules of the Joint Undertakings include derogations from the Model Financial Regulation for PPP bodies to reflect the introduction of the separate discharge in their constituent acts; (ii) propose, in 2014, relevant modifications to Articles 209 and 60(7) of the Financial Regulation in the framework of the future revision of the Financial Regulation.

Documents
2014/02/12
   EP - Vote in committee, 1st reading/single reading
2014/02/03
   EP - Committee draft report
Documents
2013/12/03
   CofA - Court of Auditors: opinion, report
Details

OPINION No 4/2013 of the Court of Auditors .

The Court has no comments on the Commission’s proposed amendments to the financial rules proposed by Commission which seek, following the political agreement on the multiannual financial framework for the years 2014-20 and on the establishment of the Connecting Europe Facility , to make it possible to:

carry over, to year n+1, any appropriations of the Emergency Aid Reserve placed in the reserve and not used in year n, carry over, to the following financial year, commitment appropriations not used at the end of a financial year for projects financed under the Connecting Europe Facility.

The Court noted that it has not been consulted on the proposal for a Council regulation laying down the multiannual financial framework for the years 2014-2020. Such a consultation would have been appropriate in respect of matters triggering or likely to trigger modifications to the financial rules which, pursuant to Article 322 TFEU, determine the procedure to be adopted for establishing and implementing the budget.

The Court also stated that, according to the Commission’s explanatory memorandum, no further agreement was reached in the context of the multiannual financial framework for the years 2014-20 concerning the treatment of funds resulting from the agreements on the fight against the illegal traffic in tobacco products. The Court recalled its Opinion on the Hercule III programme to promote activities in the field of the protection of the European Union’s financial interests.

2013/10/08
   EP - Committee referral announced in Parliament, 1st reading/single reading
2013/09/30
   EP - GRÄSSLE Ingeborg (PPE) appointed as rapporteur in BUDG
2013/09/20
   EC - Legislative proposal published
Details

PURPOSE: amend Regulation (EU, Euratom) No 966/2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (Financial Regulation).

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: the European Parliament, the Council and the Commission agreed to revise the Financial Regulation in order to take into account the outcome of the negotiations on the multiannual financial framework for the years 2014-2020.

Therefore, the adoption of the new Financial Regulation was accompanied by the following joint statement of the European Parliament, Council and the Commission:

" The European Parliament, the Council and the Commission agree that the Financial Regulation would be revised in order to include amendments made necessary by the outcome of the negotiations on the multiannual financial framework for the years 2014-2020, including on the following issues:

the carry-over rules for the Emergency Aid Reserve and for projects financed under the Connecting Europe Facility; the carry-over of unused appropriations and of the budgetary balance, as well as the related proposal to enter these in a reserve for payments and commitments; the possible inclusion of the European Development Fund in the Union budget; the treatment of funds resulting from the agreements on the fight against the illegal traffic in tobacco products."

On 27 June 2013, a political agreement was reached between Parliament, the Council Presidency and the Commission on the Multiannual Financial Framework 2014-2020 (MFF) package and on the draft Regulation of the European Parliament and the Council establishing the Connecting Europe Facility (CEF).

This proposal shall take into account the various points raised in the aforementioned joint statement and amend Article 13 of the FR to include the carry-over rules for the emergency aid reserve and projects financed under the Connecting Europe.

New flexibilities for unused commitment and payment appropriations have been introduced in the draft Council Regulation laying down the multiannual financial framework for the years 2014-2020 (MFF Regulation). They will be implemented by means of the technical adjustments of the MFF as provided for in the draft MFF Regulation and mobilised in the framework of the budgetary procedure pursuant to Article 314 of the Treaty on the Functioning of the European Union. Therefore, no further modifications of the FR are required for those flexibilities.

Concerning the European Development Fund (EDF), the Commission intends to propose the budgetisation of the EDF as of 2021.

No further agreement was reached in the context of the multiannual financial framework for the years 2014-2020 concerning the treatment of funds resulting from the agreements on the fight against the illegal traffic in tobacco products. Therefore, the Commission will continue implementing the agreements and propose, as it has done in its proposal for the Hercule III programme , appropriate financial means necessary to fight cigarette smuggling and counterfeiting by the EU, in addition to efforts undertaken by the Member States.

IMPACT ASSESSMENT: no impact assessment was undertaken given that the present proposal merely implements the outcome of the negotiations on the multiannual financial framework for the years 2014-2020 and has a very limited scope.

LEGAL BASIS: Article 322 of the Treaty on the Functioning of the European Union (TFEU), in conjunction with Article 106a of the Treaty establishing the European Atomic Energy Community.

CONTENT: the proposal aims to amend Regulation (EU, EURATOM) No 966/2012 in order to include the carryover rules for the Emergency Aid Reserve and for projects financed under the Connecting Europe Facility .

From a technical point of view, the amendments may be summarised as follows:

as regards the annual amount of the Emergency Aid Reserve (EAR) (EUR 280 million per year at 2011 prices) entered in the general budget of the Union, an amendment needs to be made to Regulation (EU, EURATOM) No 966/2012 in order to provide for the carry-over to year n+1 of the appropriations placed in reserve and not used in year n; as regards projects financed under the Connecting Europe Facility and their nature, they will in many cases require complex contracting procedures. Under those circumstances, even limited delays may result in a loss of annual commitment appropriations and undermine the viability of those projects. To prevent this, Regulation (EU, EURATOM) No 966/2012 should allow for automatic carry-over to the following financial year of commitment appropriations not used at the end of a financial year for projects financed under the Connecting Europe Facility .

Documents

Votes

A7-0108/2014 - Ingeborg Gräßle - Résolution législative

2014/04/16 Outcome: +: 622, -: 28, 0: 14
DE FR ES PL GB IT RO CZ PT SE BE HU BG NL SK DK AT IE EL LT FI HR SI LV LU MT EE CY
Total
90
70
47
47
68
40
27
20
20
20
21
19
16
25
13
12
17
12
14
10
10
10
7
7
6
5
5
5
icon: PPE PPE
231

Czechia PPE

2

Denmark PPE

For (1)

1

Luxembourg PPE

3

Malta PPE

For (1)

1

Estonia PPE

For (1)

1
2
icon: S&D S&D
167

Netherlands S&D

3

Ireland S&D

2

Lithuania S&D

1

Finland S&D

2

Slovenia S&D

For (1)

1

Luxembourg S&D

For (1)

1

Estonia S&D

For (1)

1
icon: ALDE ALDE
73

Slovakia ALDE

For (1)

1
3

Greece ALDE

1

Finland ALDE

For (1)

1

Slovenia ALDE

2

Luxembourg ALDE

For (1)

1

Estonia ALDE

2
icon: Verts/ALE Verts/ALE
55

United Kingdom Verts/ALE

5

Portugal Verts/ALE

For (1)

1

Netherlands Verts/ALE

3

Denmark Verts/ALE

For (1)

1

Austria Verts/ALE

2

Finland Verts/ALE

2

Latvia Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1

Estonia Verts/ALE

Abstain (1)

1
icon: ECR ECR
51

Belgium ECR

For (1)

1

Netherlands ECR

For (1)

1

Denmark ECR

For (1)

1

Lithuania ECR

1

Latvia ECR

For (1)

1
icon: GUE/NGL GUE/NGL
32

Spain GUE/NGL

Abstain (1)

1

United Kingdom GUE/NGL

1

Sweden GUE/NGL

1

Netherlands GUE/NGL

2

Denmark GUE/NGL

For (1)

1

Ireland GUE/NGL

Abstain (1)

1

Croatia GUE/NGL

1

Latvia GUE/NGL

For (1)

1

Cyprus GUE/NGL

1
icon: EFD EFD
26

France EFD

Against (1)

1

Poland EFD

Abstain (1)

3

Belgium EFD

Against (1)

1

Bulgaria EFD

For (1)

1

Netherlands EFD

For (1)

1

Slovakia EFD

For (1)

1

Greece EFD

1

Lithuania EFD

2

Finland EFD

For (1)

1
icon: NI NI
28

Spain NI

1

Italy NI

2

Belgium NI

Against (1)

1

Hungary NI

2

Austria NI

Abstain (1)

4

Ireland NI

For (1)

1

History

(these mark the time of scraping, not the official date of the change)

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shadows
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shadows
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docs/3/body
EC
events/3/docs/0/url
Old
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New
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activities
  • date: 2013-09-20T00:00:00 docs: url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2013&nu_doc=639 title: COM(2013)0639 type: Legislative proposal published celexid: CELEX:52013PC0639:EN body: EC commission: DG: url: http://ec.europa.eu/dgs/budget/ title: Budget Commissioner: LEWANDOWSKI Janusz type: Legislative proposal published
  • date: 2013-10-08T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP shadows: group: ALDE name: MULDER Jan responsible: True committee: BUDG date: 2013-09-30T00:00:00 committee_full: Budgets rapporteur: group: PPE name: GRÄSSLE Ingeborg body: EP responsible: False committee_full: Budgetary Control committee: CONT body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE body: EP responsible: False committee_full: Regional Development committee: REGI body: EP responsible: False committee_full: Transport and Tourism committee: TRAN
  • date: 2014-02-12T00:00:00 body: EP type: Vote in committee, 1st reading/single reading committees: body: EP shadows: group: ALDE name: MULDER Jan responsible: True committee: BUDG date: 2013-09-30T00:00:00 committee_full: Budgets rapporteur: group: PPE name: GRÄSSLE Ingeborg body: EP responsible: False committee_full: Budgetary Control committee: CONT body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE body: EP responsible: False committee_full: Regional Development committee: REGI body: EP responsible: False committee_full: Transport and Tourism committee: TRAN
  • body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A7-2014-0108&language=EN type: Committee report tabled for plenary, 1st reading/single reading title: A7-0108/2014 type: Committee report tabled for plenary, 1st reading/single reading committees: body: EP shadows: group: ALDE name: MULDER Jan responsible: True committee: BUDG date: 2013-09-30T00:00:00 committee_full: Budgets rapporteur: group: PPE name: GRÄSSLE Ingeborg body: EP responsible: False committee_full: Budgetary Control committee: CONT body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE body: EP responsible: False committee_full: Regional Development committee: REGI body: EP responsible: False committee_full: Transport and Tourism committee: TRAN date: 2014-02-14T00:00:00
  • date: 2014-04-16T00:00:00 docs: url: http://www.europarl.europa.eu/oeil/popups/sda.do?id=24225&l=en type: Results of vote in Parliament title: Results of vote in Parliament url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P7-TA-2014-0423 type: Decision by Parliament, 1st reading/single reading title: T7-0423/2014 body: EP type: Results of vote in Parliament
  • date: 2014-05-06T00:00:00 body: CSL type: Council Meeting council: Economic and Financial Affairs ECOFIN meeting_id: 3310
  • date: 2014-05-06T00:00:00 body: EP/CSL type: Act adopted by Council after Parliament's 1st reading
  • date: 2014-05-15T00:00:00 body: CSL type: Final act signed
  • date: 2014-05-15T00:00:00 body: EP type: End of procedure in Parliament
  • date: 2014-05-29T00:00:00 type: Final act published in Official Journal docs: url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32014R0547 title: Regulation 2014/547 url: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2014:163:TOC title: OJ L 163 29.05.2014, p. 0018
commission
  • body: EC dg: Budget commissioner: LEWANDOWSKI Janusz
committees/0
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committee_full
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shadows
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committees/0
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rapporteur
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Budgetary Control
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Industry, Research and Energy
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committees/3
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Transport and Tourism
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committee_full
Regional Development
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REGI
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council
  • body: CSL type: Council Meeting council: Economic and Financial Affairs ECOFIN meeting_id: 3310 url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=SMPL&ROWSPP=25&RESULTSET=1&NRROWS=500&DOC_LANCD=EN&ORDERBY=DOC_DATE+DESC&CONTENTS=3310*&MEET_DATE=06/05/2014 date: 2014-05-06T00:00:00
docs
  • date: 2013-12-03T00:00:00 docs: url: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C:2014:004:TOC title: OJ C 004 08.01.2014, p. 0001 title: N7-0075/2014 summary: OPINION No 4/2013 of the Court of Auditors . The Court has no comments on the Commission’s proposed amendments to the financial rules proposed by Commission which seek, following the political agreement on the multiannual financial framework for the years 2014-20 and on the establishment of the Connecting Europe Facility , to make it possible to: carry over, to year n+1, any appropriations of the Emergency Aid Reserve placed in the reserve and not used in year n, carry over, to the following financial year, commitment appropriations not used at the end of a financial year for projects financed under the Connecting Europe Facility. The Court noted that it has not been consulted on the proposal for a Council regulation laying down the multiannual financial framework for the years 2014-2020. Such a consultation would have been appropriate in respect of matters triggering or likely to trigger modifications to the financial rules which, pursuant to Article 322 TFEU, determine the procedure to be adopted for establishing and implementing the budget. The Court also stated that, according to the Commission’s explanatory memorandum, no further agreement was reached in the context of the multiannual financial framework for the years 2014-20 concerning the treatment of funds resulting from the agreements on the fight against the illegal traffic in tobacco products. The Court recalled its Opinion on the Hercule III programme to promote activities in the field of the protection of the European Union’s financial interests. type: Court of Auditors: opinion, report body: CofA
  • date: 2014-02-03T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE527.995 title: PE527.995 type: Committee draft report body: EP
  • date: 2014-05-15T00:00:00 docs: url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=ADV&RESULTSET=1&DOC_ID=[%n4]%2F14&DOC_LANCD=EN&ROWSPP=25&NRROWS=500&ORDERBY=DOC_DATE+DESC title: 00078/2014/LEX type: Draft final act body: CSL
  • date: 2014-07-09T00:00:00 docs: url: /oeil/spdoc.do?i=24225&j=0&l=en title: SP(2014)471 type: Commission response to text adopted in plenary
events
  • date: 2013-09-20T00:00:00 type: Legislative proposal published body: EC docs: url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2013&nu_doc=639 title: EUR-Lex title: COM(2013)0639 summary: PURPOSE: amend Regulation (EU, Euratom) No 966/2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (Financial Regulation). PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: the European Parliament, the Council and the Commission agreed to revise the Financial Regulation in order to take into account the outcome of the negotiations on the multiannual financial framework for the years 2014-2020. Therefore, the adoption of the new Financial Regulation was accompanied by the following joint statement of the European Parliament, Council and the Commission: " The European Parliament, the Council and the Commission agree that the Financial Regulation would be revised in order to include amendments made necessary by the outcome of the negotiations on the multiannual financial framework for the years 2014-2020, including on the following issues: the carry-over rules for the Emergency Aid Reserve and for projects financed under the Connecting Europe Facility; the carry-over of unused appropriations and of the budgetary balance, as well as the related proposal to enter these in a reserve for payments and commitments; the possible inclusion of the European Development Fund in the Union budget; the treatment of funds resulting from the agreements on the fight against the illegal traffic in tobacco products." On 27 June 2013, a political agreement was reached between Parliament, the Council Presidency and the Commission on the Multiannual Financial Framework 2014-2020 (MFF) package and on the draft Regulation of the European Parliament and the Council establishing the Connecting Europe Facility (CEF). This proposal shall take into account the various points raised in the aforementioned joint statement and amend Article 13 of the FR to include the carry-over rules for the emergency aid reserve and projects financed under the Connecting Europe. New flexibilities for unused commitment and payment appropriations have been introduced in the draft Council Regulation laying down the multiannual financial framework for the years 2014-2020 (MFF Regulation). They will be implemented by means of the technical adjustments of the MFF as provided for in the draft MFF Regulation and mobilised in the framework of the budgetary procedure pursuant to Article 314 of the Treaty on the Functioning of the European Union. Therefore, no further modifications of the FR are required for those flexibilities. Concerning the European Development Fund (EDF), the Commission intends to propose the budgetisation of the EDF as of 2021. No further agreement was reached in the context of the multiannual financial framework for the years 2014-2020 concerning the treatment of funds resulting from the agreements on the fight against the illegal traffic in tobacco products. Therefore, the Commission will continue implementing the agreements and propose, as it has done in its proposal for the Hercule III programme , appropriate financial means necessary to fight cigarette smuggling and counterfeiting by the EU, in addition to efforts undertaken by the Member States. IMPACT ASSESSMENT: no impact assessment was undertaken given that the present proposal merely implements the outcome of the negotiations on the multiannual financial framework for the years 2014-2020 and has a very limited scope. LEGAL BASIS: Article 322 of the Treaty on the Functioning of the European Union (TFEU), in conjunction with Article 106a of the Treaty establishing the European Atomic Energy Community. CONTENT: the proposal aims to amend Regulation (EU, EURATOM) No 966/2012 in order to include the carryover rules for the Emergency Aid Reserve and for projects financed under the Connecting Europe Facility . From a technical point of view, the amendments may be summarised as follows: as regards the annual amount of the Emergency Aid Reserve (EAR) (EUR 280 million per year at 2011 prices) entered in the general budget of the Union, an amendment needs to be made to Regulation (EU, EURATOM) No 966/2012 in order to provide for the carry-over to year n+1 of the appropriations placed in reserve and not used in year n; as regards projects financed under the Connecting Europe Facility and their nature, they will in many cases require complex contracting procedures. Under those circumstances, even limited delays may result in a loss of annual commitment appropriations and undermine the viability of those projects. To prevent this, Regulation (EU, EURATOM) No 966/2012 should allow for automatic carry-over to the following financial year of commitment appropriations not used at the end of a financial year for projects financed under the Connecting Europe Facility .
  • date: 2013-10-08T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2014-02-12T00:00:00 type: Vote in committee, 1st reading/single reading body: EP
  • date: 2014-02-14T00:00:00 type: Committee report tabled for plenary, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A7-2014-0108&language=EN title: A7-0108/2014 summary: The Committee on Budgets adopted the report by Ingeborg GRÄSSLE (EPP, DE) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU, Euratom) No 966/2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002. The committee recommended that Parliament’s position in first reading following the ordinary legislative procedure should amend the Commission proposal as follows: Performance reserve and on the SME initiative : Members proposed including in the Financial Regulation specific provisions covering the setting-up of a performance reserve and on the SME initiative in the present MFF-related revision of the Financial Regulation. The amended text stipulated that following the adoption of Regulation (EU) No 1303/2013 of the European Parliament and of the Council, it is necessary to amend Regulation (EU, Euratom) No 966/2012 in order to make decommitted appropriations available again for the purposes of the implementation of the performance reserve and the uncapped guarantee and securitisation financial instruments in favour of small and medium sized enterprises. Joint statement on the separate discharge for Joint Undertakings under Article 209 of the Financial Regulation : the report endorsed, in line with the request from CONT Committee Chair to BUDG Committee Chair, a specific joint declaration that was agreed in the context of the negotiations on Commission’s Delegated Regulation on the Model Financial Regulation for Public-Private-Partnership Bodies (PPPs). The European Parliament, the Council and the Commission agree that in order for the Joint Undertakings to benefit from simplified financial rules better adapted to their public-private nature, they should be set up under Article 209 of the Financial Regulation. The Commission should: (i) ensure that the financial rules of the Joint Undertakings include derogations from the Model Financial Regulation for PPP bodies to reflect the introduction of the separate discharge in their constituent acts; (ii) propose, in 2014, relevant modifications to Articles 209 and 60(7) of the Financial Regulation in the framework of the future revision of the Financial Regulation.
  • date: 2014-04-16T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=24225&l=en title: Results of vote in Parliament
  • date: 2014-04-16T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P7-TA-2014-0423 title: T7-0423/2014 summary: The European Parliament adopted by 622 votes to 28, with 14 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU, Euratom) No 966/2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002. Parliament adopted its position at first reading following the ordinary legislative procedure. The amendments adopted in plenary are the result of an agreement reached between the European Parliament and the Council. They amended the proposal as follows: Performance reserve and financial instruments in favour of SMEs : Parliament and the Council agreed to include in the financial regulation specific provisions as regards the establishment of a performance reserve and instruments in favour of SMEs. The amended text stipulated that following the adoption of Regulation (EU) No 1303/2013 of the European Parliament and of the Council (general provisions on the structural and investment funds), it is necessary to amend Regulation (EU, Euratom) No 966/2012 in order to make decommitted appropriations available again for the purposes of the implementation of the performance reserve and the uncapped guarantee and securitisation financial instruments in favour of SMEs. Carry-over of commitment appropriations for the Connecting Europe Facility : even limited delays in the completion of projects financed under the Connecting Europe Facility may result in a loss of annual commitment appropriations and undermine the viability of those projects. To prevent this, it has been decided to allow for the carry-over to the following financial year of commitment appropriations not used by the end of each of financial years 2014, 2015 and 2016 for projects financed under the Connecting Europe Facility. The carry-over should be submitted for approval to the European Parliament and the Council. A joint statement on the separate discharge for Joint Undertakings under Article 209 of the Financial Regulation is annexed to the legislative resolution. The European Parliament, the Council and the Commission agree that in order for the Joint Undertakings to benefit from simplified financial rules better adapted to their public-private nature, they should be set up under Article 209 of the Financial Regulation. In view of the specific nature and the current status of the Joint Undertakings, the three institutions agreed that the Joint Undertakings should continue to be subject to a separate discharge to be given by the European Parliament upon recommendation of the Council.
  • date: 2014-05-06T00:00:00 type: Act adopted by Council after Parliament's 1st reading body: EP/CSL
  • date: 2014-05-15T00:00:00 type: Final act signed body: CSL
  • date: 2014-05-15T00:00:00 type: End of procedure in Parliament body: EP
  • date: 2014-05-29T00:00:00 type: Final act published in Official Journal summary: PURPOSE: to revise the Financial Regulation in order to take into account the outcome of the negotiations on the multiannual financial framework for the years 2014-2020. LEGISLATIVE ACT: Regulation (EU, Euratom) n° 547/2014 of the European Parliament and of the Council amending Regulation (EU, Euratom) No 966/2012 on the financial rules applicable to the general budget of the Union. CONTENT: the EU Financial Regulation contains all the principles and rules for the implementation of the EU budget and is applicable to all areas of EU expenditure and all revenue. Following the adoption of Council Regulation (EU, Euratom) No 1311/2013 , and Regulation (EU) No 1316/2013 of the European Parliament and of the Council establishing the Connecting Europe Facility, the new Regulation includes in the Financial Regulation the carry-over rules for the Emergency Aid Reserve and for projects financed under the Connecting Europe Facility. As regards the Emergency Aid Reserve , the corresponding appropriations are entered in Title ‘Reserves’ of the general budget of the Union. Therefore, the amended Regulation aims to provide for the carry-over to year n+1 of the appropriations placed in reserve and not used in year n. Furthermore, the Financial Regulation should allow for the carry-over to the following financial year of commitment appropriations not used by the end of each of financial years 2014, 2015 and 2016 for projects financed under the Connecting Europe Facility . The carry-over should be submitted for approval to the European Parliament and the Council. Lastly, following the adoption of Regulation (EU) No 1303/2013 laying down common provisions on the structural and investment funds, the Financial Regulation is amended in order to make de-committed appropriations available again for the purposes of the implementation of the performance reserve and the uncapped guarantee and securitisation financial instruments in favour of small and medium-sized enterprises (‘SMEs’). ENTRY INTO FORCE: 18.06.2014. docs: title: Regulation 2014/547 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32014R0547 title: OJ L 163 29.05.2014, p. 0018 url: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2014:163:TOC
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  • PURPOSE: to revise the Financial Regulation in order to take into account the outcome of the negotiations on the multiannual financial framework for the years 2014-2020.

    LEGISLATIVE ACT: Regulation (EU, Euratom) n° 547/2014 of the European Parliament and of the Council amending Regulation (EU, Euratom) No 966/2012 on the financial rules applicable to the general budget of the Union.

    CONTENT: the EU Financial Regulation contains all the principles and rules for the implementation of the EU budget and is applicable to all areas of EU expenditure and all revenue.

    Following the adoption of Council Regulation (EU, Euratom) No 1311/2013, and Regulation (EU) No 1316/2013 of the European Parliament and of the Council establishing the Connecting Europe Facility, the new Regulation includes in the Financial Regulation the carry-over rules for the Emergency Aid Reserve and for projects financed under the Connecting Europe Facility.

    As regards the Emergency Aid Reserve, the corresponding appropriations are entered in Title ‘Reserves’ of the general budget of the Union. Therefore, the amended Regulation aims to provide for the carry-over to year n+1 of the appropriations placed in reserve and not used in year n.

    Furthermore, the Financial Regulation should allow for the carry-over to the following financial year of commitment appropriations not used by the end of each of financial years 2014, 2015 and 2016 for projects financed under the Connecting Europe Facility. The carry-over should be submitted for approval to the European Parliament and the Council.

    Lastly, following the adoption of Regulation (EU) No 1303/2013 laying down common provisions on the structural and investment funds, the Financial Regulation is amended in order to make de-committed appropriations available again for the purposes of the implementation of the performance reserve and the uncapped guarantee and securitisation financial instruments in favour of small and medium-sized enterprises (‘SMEs’).

    ENTRY INTO FORCE: 18.06.2014.

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  • The European Parliament adopted by 622 votes to 28, with 14 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU, Euratom) No 966/2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002.

    Parliament adopted its position at first reading following the ordinary legislative procedure. The amendments adopted in plenary are the result of an agreement reached between the European Parliament and the Council. They amended the proposal as follows:

    Performance reserve and financial instruments in favour of SMEs: Parliament and the Council agreed to include in the financial regulation specific provisions as regards the establishment of a performance reserve and instruments in favour of SMEs.

    The amended text stipulated that following the adoption of Regulation (EU) No 1303/2013 of the European Parliament and of the Council (general provisions on the structural and investment funds), it is necessary to amend Regulation (EU, Euratom) No 966/2012 in order to make decommitted appropriations available again for the purposes of the implementation of the performance reserve and the uncapped guarantee and securitisation financial instruments in favour of SMEs.

    Carry-over of commitment appropriations for the Connecting Europe Facility: even limited delays in the completion of projects financed under the Connecting Europe Facility may result in a loss of annual commitment appropriations and undermine the viability of those projects. To prevent this, it has been decided to allow for the carry-over to the following financial year of commitment appropriations not used by the end of each of financial years 2014, 2015 and 2016 for projects financed under the Connecting Europe Facility. The carry-over should be submitted for approval to the European Parliament and the Council.

    A joint statement on the separate discharge for Joint Undertakings under Article 209 of the Financial Regulation is annexed to the legislative resolution.

    The European Parliament, the Council and the Commission agree that in order for the Joint Undertakings to benefit from simplified financial rules better adapted to their public-private nature, they should be set up under Article 209 of the Financial Regulation.

    In view of the specific nature and the current status of the Joint Undertakings, the three institutions agreed that the Joint Undertakings should continue to be subject to a separate discharge to be given by the European Parliament upon recommendation of the Council.

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  • The Committee on Budgets adopted the report by Ingeborg GRÄSSLE (EPP, DE) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU, Euratom) No 966/2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002.

    The committee recommended that Parliament’s position in first reading following the ordinary legislative procedure should amend the Commission proposal as follows:

    Performance reserve and on the SME initiative: Members proposed including in the Financial Regulation specific provisions covering the setting-up of a performance reserve and on the SME initiative in the present MFF-related revision of the Financial Regulation. The amended text stipulated that following the adoption of Regulation (EU) No 1303/2013 of the European Parliament and of the Council, it is necessary to amend Regulation (EU, Euratom) No 966/2012 in order to make decommitted appropriations available again for the purposes of the implementation of the performance reserve and the uncapped guarantee and securitisation financial instruments in favour of small and medium sized enterprises.

    Joint statement on the separate discharge for Joint Undertakings under Article 209 of the Financial Regulation: the report endorsed, in line with the request from

    CONT Committee Chair to BUDG Committee Chair, a specific joint declaration that was agreed in the context of the negotiations on Commission’s Delegated Regulation on the Model Financial Regulation for Public-Private-Partnership Bodies (PPPs).

    The European Parliament, the Council and the Commission agree that in order for the Joint Undertakings to benefit from simplified financial rules better adapted to their public-private nature, they should be set up under Article 209 of the Financial Regulation.

    The Commission should: (i) ensure that the financial rules of the Joint Undertakings include derogations from the Model Financial Regulation for PPP bodies to reflect the introduction of the separate discharge in their constituent acts; (ii) propose, in 2014, relevant modifications to Articles 209 and 60(7) of the Financial Regulation in the framework of the future revision of the Financial Regulation.

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  • PURPOSE: amend Regulation (EU, Euratom) No 966/2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (Financial Regulation).

    PROPOSED ACT: Regulation of the European Parliament and of the Council.

    ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

    BACKGROUND: the European Parliament, the Council and the Commission agreed to revise the Financial Regulation in order to take into account the outcome of the negotiations on the multiannual financial framework for the years 2014-2020.

    Therefore, the adoption of the new Financial Regulation was accompanied by the following joint statement of the European Parliament, Council and the Commission:

    " The European Parliament, the Council and the Commission agree that the Financial Regulation would be revised in order to include amendments made necessary by the outcome of the negotiations on the multiannual financial framework for the years 2014-2020, including on the following issues:

    • the carry-over rules for the Emergency Aid Reserve and for projects financed under the Connecting Europe Facility;
    • the carry-over of unused appropriations and of the budgetary balance, as well as the related proposal to enter these in a reserve for payments and commitments;
    • the possible inclusion of the European Development Fund in the Union budget;
    • the treatment of funds resulting from the agreements on the fight against the illegal traffic in tobacco products."

    On 27 June 2013, a political agreement was reached between Parliament, the Council Presidency and the Commission on the Multiannual Financial Framework 2014-2020 (MFF) package and on the draft Regulation of the European Parliament and the Council establishing the Connecting Europe Facility (CEF).

    This proposal shall take into account the various points raised in the aforementioned joint statement and amend Article 13 of the FR to include the carry-over rules for the emergency aid reserve and projects financed under the Connecting Europe.

    New flexibilities for unused commitment and payment appropriations have been introduced in the draft Council Regulation laying down the multiannual financial framework for the years 2014-2020 (MFF Regulation). They will be implemented by means of the technical adjustments of the MFF as provided for in the draft MFF Regulation and mobilised in the framework of the budgetary procedure pursuant to Article 314 of the Treaty on the Functioning of the European Union. Therefore, no further modifications of the FR are required for those flexibilities.

    Concerning the European Development Fund (EDF), the Commission intends to propose the budgetisation of the EDF as of 2021.

    No further agreement was reached in the context of the multiannual financial framework for the years 2014-2020 concerning the treatment of funds resulting from the agreements on the fight against the illegal traffic in tobacco products. Therefore, the Commission will continue implementing the agreements and propose, as it has done in its proposal for the Hercule III programme, appropriate financial means necessary to fight cigarette smuggling and counterfeiting by the EU, in addition to efforts undertaken by the Member States.

    IMPACT ASSESSMENT: no impact assessment was undertaken given that the present proposal merely implements the outcome of the negotiations on the multiannual financial framework for the years 2014-2020 and has a very limited scope.

    LEGAL BASIS: Article 322 of the Treaty on the Functioning of the European Union (TFEU), in conjunction with Article 106a of the Treaty establishing the European Atomic Energy Community.

    CONTENT: the proposal aims to amend Regulation (EU, EURATOM) No 966/2012 in order to include the carryover rules for the Emergency Aid Reserve and for projects financed under the Connecting Europe Facility.

    From a technical point of view, the amendments may be summarised as follows:

    • as regards the annual amount of the Emergency Aid Reserve (EAR) (EUR 280 million per year at 2011 prices) entered in the general budget of the Union, an amendment needs to be made to Regulation (EU, EURATOM) No 966/2012 in order to provide for the carry-over to year n+1 of the appropriations placed in reserve and not used in year n;
    • as regards projects financed under the Connecting Europe Facility and their nature, they will in many cases require complex contracting procedures. Under those circumstances, even limited delays may result in a loss of annual commitment appropriations and undermine the viability of those projects. To prevent this, Regulation (EU, EURATOM) No 966/2012 should allow for automatic carry-over to the following financial year of commitment appropriations not used at the end of a financial year for projects financed under the Connecting Europe Facility.
activities/1/committees/0/date
2013-09-30T00:00:00
activities/1/committees/0/rapporteur
  • group: EPP name: GRÄSSLE Ingeborg
committees/0/date
2013-09-30T00:00:00
committees/0/rapporteur
  • group: EPP name: GRÄSSLE Ingeborg
activities/0/docs/0/celexid
CELEX:52013PC0639:EN
activities/1
date
2013-10-08T00:00:00
body
EP
type
Committee referral announced in Parliament, 1st reading/single reading
committees
procedure/dossier_of_the_committee
BUDG/7/14091
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision
committees/1
body
EP
responsible
False
committee_full
Budgetary Control
committee
CONT
activities
  • date: 2013-09-20T00:00:00 docs: url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2013&nu_doc=639 type: Legislative proposal published title: COM(2013)0639 body: EC type: Legislative proposal commission: DG: url: http://ec.europa.eu/dgs/budget/ title: Budget Commissioner: LEWANDOWSKI Janusz
committees
  • body: EP responsible: True committee_full: Budgets committee: BUDG
  • body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE
  • body: EP responsible: False committee_full: Regional Development committee: REGI
  • body: EP responsible: False committee_full: Transport and Tourism committee: TRAN
links
European Commission
other
  • body: EC dg: url: http://ec.europa.eu/dgs/budget/ title: Budget commissioner: LEWANDOWSKI Janusz
procedure
Mandatory consultation of other institutions
European Court of Auditors
reference
2013/0313(COD)
instrument
Regulation
legal_basis
stage_reached
Preparatory phase in Parliament
summary
subtype
Legislation
title
Financial rules applicable to the general budget of the Union
type
COD - Ordinary legislative procedure (ex-codecision procedure)
subject