BETA

Awaiting Parliament 1st reading / single reading / budget 1st stage



2016/0282(COD) Financial rules applicable to the general budget of the Union: simplification
RoleCommitteeRapporteurShadows
Opinion AFET CRISTEA Andi (S&D)
Opinion AGRI DESS Albert (EPP)
Lead BUDG GRÄSSLE Ingeborg (EPP), ASHWORTH Richard (ECR) SARVAMAA Petri (EPP), AYALA SENDER Inés (S&D), MAŇKA Vladimír (S&D), ALI Nedzhmi (ALDE), NÍ RIADA Liadh (GUE/NGL), STAES Bart (Verts/ALE), TARAND Indrek (Verts/ALE), VALLI Marco (EFD)
Lead CONT GRÄSSLE Ingeborg (EPP), ASHWORTH Richard (ECR) SARVAMAA Petri (EPP), AYALA SENDER Inés (S&D), MAŇKA Vladimír (S&D), ALI Nedzhmi (ALDE), NÍ RIADA Liadh (GUE/NGL), STAES Bart (Verts/ALE), TARAND Indrek (Verts/ALE), VALLI Marco (EFD)
Opinion DEVE MCAVAN Linda (S&D)
Opinion EMPL LAVRILLEUX Jérôme (EPP)
Opinion ENVI
Opinion ITRE BUZEK Jerzy (EPP)
Opinion JURI GUTELAND Jytte (S&D)
Opinion LIBE VIOTTI Daniele (S&D)
Opinion PECH ITURGAIZ Carlos (EPP)
Opinion REGI KREHL Constanze (S&D)
Opinion TRAN VAN DE CAMP Wim (EPP)
Lead committee dossier: CJ13/8/09028
Legal Basis RoP 055, TFEU 042-p1, TFEU 043-p2, TFEU 046, TFEU 149, TFEU 153-p2-a1, TFEU 164, TFEU 168-p4, TFEU 172, TFEU 175-p3, TFEU 177-p1, TFEU 178-p1, TFEU 189, TFEU 209-p1, TFEU 212, TFEU 322-p2, TFEU 349-p1sub1-as1

Activites

  • 2017/06/08 Committee report tabled for plenary, 1st reading/single reading
    • A8-0211/2017 summary
  • 2017/05/30 Committee decision to open interinstitutional negotiations with report adopted in committee
  • 2017/05/30 Vote in committee, 1st reading/single reading
  • #3529
  • 2017/04/03 Council Meeting
  • 2017/01/19 Referral to associated committees announced in Parliament
  • 2016/11/21 Committee referral announced in Parliament, 1st reading/single reading
  • 2016/09/14 Legislative proposal published
    • COM(2016)0605 summary
    • DG {'url': 'http://ec.europa.eu/info/departments/budget_en', 'title': 'Budget'}, KING Julian

Documents

  • Legislative proposal published: COM(2016)0605
  • Debate in Council: 3529
  • Committee report tabled for plenary, 1st reading/single reading: A8-0211/2017
AmendmentsDossier
1364 2016/0282(COD)
2017/03/06 PECH 4 amendments...
source: 600.921
2017/03/13 TRAN 272 amendments...
source: 601.013
2017/03/15 ITRE 18 amendments...
source: 600.928
2017/03/21 LIBE 32 amendments...
source: 601.233
2017/03/28 AGRI 411 amendments...
source: 601.213
2017/03/30 EMPL 56 amendments...
source: 601.227
2017/04/04 DEVE 25 amendments...
source: 602.755
2017/04/18 BUDG, CONT 546 amendments...
source: 603.011

History

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

activities/6/docs/0/text
  • The Committee on Budgets, in conjunction with the Committee on Budgetary Control, adopted the report drawn up by Ingeborg GRÄSSLE (EPP, DE) and Richard ASHWORTH (ECR, UK) on the proposal for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union.

    The Committees on Employment and Social Affairs, Industry, Research and Energy, Transport and Tourism, Regional Development and Agriculture and Rural Development, exercising their prerogatives as associated committees in accordance with Article 54 of the Rules of Procedure, also gave their opinions on the report.

    The Commission proposed, in a single text, a revision of the general financial rules accompanied by corresponding amendments to the sectoral financial rules contained in 15 legislative acts on multiannual programmes.

    The committee recommended that the European Parliament's position adopted at first reading in accordance with the ordinary legislative procedure should amend the Commission proposal.

    The amendments concern in particular the following points:

    Timetable: Members regretted the fact that deadlines for the examination of the proposal do not allow appropriate consideration of the opinions of the European Parliament and of the Council. They also regretted that the proposal under consideration was not preceded by an impact assessment and suggested an amendment in order to ensure that future major amendments to the Financial Regulation are accompanied by an impact assessment.

    Performance: Members suggest integrating performance more into spending decisions. Performance should be described on the basis of the achievement of objectives and the direct application of the principle of sound financial management. Without seeking to prejudge the relevance of the programme concerned, there should be a link between objectives set and performance, indicators, results, additionality and economy, efficiency and effectiveness in the use of appropriations.

    Transparency: communication should be more targeted at recipients, aimed at increasing visibility for citizens, while ensuring through defined-measures that the messages are received by beneficiaries. The utmost transparency regarding data on beneficiaries should be sought, without prejudice to the rules on the protection of personal data.

    Horizontal principles: the report stressed that horizontal principles, i.e. partnership involvement, sustainable development, gender equality and non-discrimination, have generated important contributions to effective implementation of ESI Funds and should be upheld as forerunners for any kind of investment involving the Union budget, including financial instruments and EFSI.

    Simplification in favour of recipients of EU funds: Member States should increasingly make use of simplified cost options and of ‘single lump sum’ financing in order to make the associated administration less burdensome and to simplify the rules governing the allocation of funds.

    Union public procurement should ensure the efficient, transparent and appropriate use of Union funds while reducing the administrative burden on recipients of Union funding and on managing authorities.

    Audits and controls: these should focus more on beneficiaries who represent a high risk for the Union budget, taking into account past irregularities.

    Non-profit rule: whereas the Commission intends to abolish the non-profit rule, Members proposed to retain it. The non-profit rule should be seen as one of the main instruments to avoid misuse of the public money.

    Audit: in line with the principle of sound financial management, additional safeguards should be put in place for cross-reliance on audits. The Commission should therefore preserve the right of audit if necessary. In addition, funds and projects should be audited when EU funds account for more than 50 % of the funding.

    Trust funds: Members considered it too early to extend the scope of Union trust funds to internal actions on the grounds that these funds can significantly change the budgets adopted by the European Parliament and the Council and carry the risk of using funds from financing instruments for purposes not foreseen in the basic acts establishing those instruments.

    Blending facilities: this should promote a wide mix of contributions from national and EU budgets or private investors in order to optimise the use of available resources and attract as much private investment as possible and follow a well-defined and transparent governance process.

    Reports: Members proposed a number of changes to the reporting requirements. They aim to streamline reporting requirements, reduce the number of reports and ensure that budget authorities have sufficient time to prepare the discharge.

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  • PURPOSE: to revise the financial rules applicable to the general budget of the Union in the aim of simplification.

    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 Commission considers that simpler and more flexible EU financial rules are key in enhancing EU budget’s ability to adapt to changing circumstances and to respond to unexpected developments.

    Over the last 30 years, the number of general financial rules contained in the Financial Regulation has increased sharply. In addition, a number of sectoral financial rules have emerged: the rules for participation to the Framework Programme for Research and Innovation, the Common Provisions to the European Structural and Investment Funds and the Common Implementing Rules for the External Action.

    Users of EU funds have repeatedly complained about the proliferation of rules both at general and at sectoral level, their heterogeneity and their complexity making it costly and prone to errors.

    A first step towards more coherent and simpler financial rules was achieved in 2012, however, there is room for further simplification. This is confirmed by the experience gained since 2014 and by the work of the High Level Group of Independent Experts on Monitoring Simplification for Beneficiaries of the European Structural and Investment Funds.

    The Commission proposed that efforts must continue in order to remove bottlenecks, ensure synergies and complementarities between ESI Funds and the other EU funds and improve efficiency of delivery and control requirements.

    Simpler and more flexible financial rules will contribute to optimising spending and impact of the MFF 2014-2020 and constitute as such one of the key elements of the Commission's initiative for a Budget Focused on Results (BFOR).

    CONTENT: this legislative proposal forms an integral part of the mid-term review/revision of the multiannual financial framework (MFF) 2014-2020. It contributes to two of its main objectives: simplification and flexibility. It paves the way for the preparation of the next generation of spending programmes (post-2020).

    The Commission therefore proposes in a single act an ambitious revision of the general financial rules accompanied by corresponding changes to the sectorial financial rules set out in 15 legislative acts concerning multiannual programmes:

    (1) Simplification for recipients of EU funds: many measures aim at simplifying life for recipients of EU funds. They relate to: (i) grants; (ii) simpler rules for "contribution in kind" valuation; (iii) recognition of volunteer work; (iv) grant awards without calls for proposal under specific conditions; (v) simplified forms of grants; (vi) removal of the non-cumulative award check for low-value grants and of the non-profit principle.

    (2) From multiple layers of controls to cross reliance on audit, assessment or authorisation, and harmonisation of reporting requirements: the aim of these measures is to encourage reliance as far as possible on one single audit, assessment or authorisation (conformity to State aids for instance), when the audit, assessment or authorisation meets the necessary conditions to be taken into account in the EU system.

    More generally, in order to avoid multiple layers of controls, rules for implementing partners (international organisations, EIB/EIF, national promotional banks, national agencies, NGOs) will be simplified by relying increasingly on their procedures and policies once assessed positively.

    (3) Allowing the application of only one set of rules to hybrid actions or in the case of combination of measures or instruments: the proposal aims at achieving further simplification for the partners of the EU by a number of measures to avoid the parallel application of different rules and procedures, notably through facilitating the combination of European Structural and Investment Funds (ESIF) funding with financial instruments and the European Fund for Strategic Investments (EFSI).

    (4) More effective use of financial instruments: (i) optimise use of reflows; (ii) ensuring a level playing field among key EU implementing partners; (iii) reducing burdensome requirements related to publication of individual data of final recipients or to the exclusion criteria.

    (5) More flexible budget management: the proposal sets out several ways for more budgetary flexibility, in order to allow the Union to respond to unforeseen challenges and new tasks more effectively and to achieve swifter crisis management - among which:

    • the creation of a "flexibility cushion" for unforeseen needs and new crises in the external actions geographic instruments budget;
    • a more efficient activation of the solidarity and globalization adjustment funds, and the extension of Trust-Funds to internal policies;
    • the creation of a EU crisis reserve with the reuse of decommitted appropriations;
    • the creation of a common provisioning fund holding the resources provisioned for financial operations.

    (6) Focus on results and streamlining of reporting: the proposal includes a series of measures aimed at focusing better the budget on results, establishing a clear performance framework, enhancing transparency and streamlining reporting.

    (7) Simpler and leaner EU administration: the proposal provides for a series of simplification measures aims at allowing the EU institutions to work more efficiently, notably by implementing jointly administrative appropriations to achieve economies of scale.

    (8) Providing possibility for citizen engagement: the proposal provides a possibility for citizens to be consulted on the implementation of the Union budget by the Commission, Member States and any other entity implementing the Union budget.

committees/7/date
2016-11-09T00:00:00
committees/7/rapporteur
  • group: EPP name: BUZEK Jerzy
committees/9/date
2016-10-26T00:00:00
committees/9/rapporteur
  • group: EPP name: ITURGAIZ Carlos
committees/11/date
2016-11-08T00:00:00
committees/11/rapporteur
  • group: EPP name: VAN DE CAMP Wim
procedure/Mandatory consultation of other institutions
Economic and Social Committee Committee of the Regions
activities
  • date: 2016-09-14T00:00:00 docs: url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2016&nu_doc=0605 type: Legislative proposal published title: COM(2016)0605 body: EC type: Legislative proposal published commission: DG: url: http://ec.europa.eu/dgs/budget/ title: Budget Commissioner: KING Julian
committees
  • body: EP responsible: False committee_full: Foreign Affairs committee: AFET
  • body: EP responsible: False committee_full: Agriculture and Rural Development committee: AGRI
  • body: EP responsible: True committee_full: Budgets committee: BUDG
  • body: EP responsible: False committee: CONT date: 2016-10-12T00:00:00 committee_full: Budgetary Control rapporteur: group: ECR name: ASHWORTH Richard
  • body: EP responsible: False committee: DEVE date: 2016-10-11T00:00:00 committee_full: Development rapporteur: group: S&D name: MCAVAN Linda
  • body: EP responsible: False committee_full: Employment and Social Affairs committee: EMPL
  • body: EP responsible: False committee_full: Environment, Public Health and Food Safety committee: ENVI
  • body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE
  • body: EP responsible: False committee_full: Civil Liberties, Justice and Home Affairs committee: LIBE
  • body: EP responsible: False committee_full: Fisheries committee: PECH
  • body: EP responsible: False committee_full: Regional Development committee: REGI
  • body: EP responsible: False committee_full: Transport and Tourism committee: TRAN
links
other
  • body: EC dg: url: http://ec.europa.eu/dgs/budget/ title: Budget commissioner: KING Julian
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2016/0282(COD)
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Regulation
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Legislation
title
Financial rules applicable to the general budget of the Union: simplification
type
COD - Ordinary legislative procedure (ex-codecision procedure)
subject