2018/0136(COD) | [ParlTrack]

Proposal for a regulation
Article 5 – paragraph 6

6. 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 on the appropriate measures to the Council~~adopt a decision on the appropriate measures to the European Parliament and the Council by means of an implementing act.

Amendment 101 #

Proposal for a regulation
Article 5 – paragraph 6

6. Where the Commission considers that the generalised deficiency as regards the ~~rule of law~~Union values is established, it shall ~~submit a proposal for an implementing act on the appropriate measures to the Council~~adopt a decision on the appropriate measures by means of an implementing act.

Amendment 102 #

Proposal for a regulation
Article 5 – paragraph 6

Amendment 103 #

Proposal for a regulation
Article 5 – paragraph 6 a (new)

6 a. At the same time as it adopts its decision, the Commission shall submit to the European Parliament and the Council a proposal to transfer to a budgetary reserve and amount equivalent to the value of the measures adopted. By way of derogation from paragraphs 4 and 6 of Article 31 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, the Parliament acting by a majority of the votes cast, or the Council acting by qualified majority, amend or reject it. The decision shall enter into force if neither the European Parliament nor the Council reject the transfer proposal within this period.

Amendment 104 #

Proposal for a regulation
Article 5 – paragraph 6 a (new)

6 a. 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.

Amendment 105 #

Proposal for a regulation
Article 5 – paragraph 6 a (new)

6 a. Where the appropriate measures decided by the Commission have an impact on the budgetary allocations, the Commission shall submit to the European Parliament and to the Council a proposal to transfer the amount equivalent to the value of the measures.

Amendment 106 #

Proposal for a regulation
Article 5 – paragraph 6 b (new)

6 b. 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.

Amendment 107 #

Proposal for a regulation
Article 5 – paragraph 6 b (new)

6 b. 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.

Amendment 108 #

Proposal for a regulation
Article 5 – paragraph 7

~~7. 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.~~deleted

Amendment 109 #

Proposal for a regulation
Article 5 – paragraph 7

Amendment 110 #

Proposal for a regulation
Article 5 – paragraph 7

Amendment 111 #

Proposal for a regulation
Article 5 – paragraph 8

~~8. The Council, acting by a qualified majority, may amend the Commission’s proposal and adopt the amended text as a Council decision.~~deleted

Amendment 112 #

Proposal for a regulation
Article 5 – paragraph 8

~~8. The Council, acting by a qualified majority, may amend the Commission’s proposal and adopt the amended text as a Council decision.~~deleted

Amendment 113 #

Proposal for a regulation
Article 6 – paragraph 1

1. The Member State concerned may, at any time, submit to the Commission evidence to show that the generalised deficiency as regards the ~~rule of law~~Union values has been remedied or has ceased to exist.

Amendment 114 #

Proposal for a regulation
Article 6 – paragraph 2

2. The Commission shall assess the situation in the Member State concerned, assisted by the Democracy, Rule of Law and Fundamental Rights Expert Panel. Once the generalised deficiencies as regards the ~~rule of law~~Union values which on the grounds of which the appropriate measures were adopted cease to exist in full or in part, the Commission shall ~~submit to the Council a proposal for~~adopt a decision lifting those measures in full or in part. ~~The procedure set out i~~At the same time as it adopts its decision, the Commission shall simultaneously submit to the European pPar~~agraphs 2, 4, 5, 6 and 7 of~~liament and to the Council a proposal to transfer the amount equivalent to the value of the measures. The procedure set out in Article 5 shall apply.

Amendment 115 #

Proposal for a regulation
Article 6 – paragraph 2

2. The Commission shall assess the situation in the Member State concerned. Once the generalised deficiencies as regards the rule of law which on the grounds of which the appropriate measures were adopted cease to exist in full or in part, the Commission shall ~~submit to the Council a proposal for a decision lifting~~adopt a decision lifting those measures in full or in part. At the same time, the Commission shall submit to the European Parliament and the Council a proposal to lift in full or in part, the budgetary reserve referred to those measures ~~in full or in part~~adopted. The procedure set out in paragraphs 2, 4, 5, 6 and 76a of Article 5 shall apply.

Amendment 116 #

Proposal for a regulation
Article 7

~~Information of the European Parliament The Commission shall immediately inform the European Parliament of any measures proposed or adopted pursuant to Articles 4 and 5~~Article 7 deleted

Amendment 117 #

Proposal for a regulation
Article 7

~~Information of the European Parliament The Commission shall immediately inform the European Parliament of any measures proposed or adopted pursuant to Articles 4 and 5~~Article 7 deleted

Amendment 118 #

Proposal for a regulation
Article 7 – title

~~Information~~Role of the European Parliament

Amendment 119 #

Proposal for a regulation
Article 7 – paragraph 1

The Commission shall immediately inform the European Parliament of any measures proposed or adopted pursuant to Articles 4, 5 and 56

Amendment 120 #

Proposal for a regulation
Article 7 – paragraph 1 a (new)

In order to enhance the dialogue among the Union institutions, in particular the European Parliament, the Council and the Commission, and to ensure greater transparency and accountability, the competent committee of the European Parliament may invite the President of the Council and the Commission and, where appropriate, the President of the European Council to appear before the committee to discuss decisions taken pursuant to this Regulation. The competent committee of the European Parliament may offer the opportunity to the Member State concerned by such decisions to participate in an exchange of views.

Amendment 121 #

Proposal for a regulation
Article 8 – paragraph 1

This 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.~~

Amendment 28 #

Proposal for a regulation
Title 1

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the protection of the Union's budget in case of generalised deficiencies as regards the ~~rule of law~~Union values in the Member States

Amendment 29 #

Proposal for a regulation
Recital 1

(1) ~~The rule of law is one of the essential values upon which the Union is founded. As recalled by Article 2 of the Treaty on European Union, these values are common to the Member States~~Respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities, are the essential values upon which the Union is founded. These values are common to the Member States in a society in which pluralism, non- discrimination, tolerance, justice, solidarity and equality between women and men prevail. These values are enshrined in Article 2 of the Treaty on European Union and in the criteria for Union membership as recalled by Article 49 of the Treaty.

Amendment 30 #

Proposal for a regulation
Recital 1

(1) The ~~rule of law is one~~Union is founded ofn the ~~essential values upon which the Union is founded~~values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities. As recalled by Article 2 of the Treaty on European Union, these values are common to the Member States.

Amendment 31 #

Proposal for a regulation
Recital 1 a (new)

(1 a) In accordance with Article 2 and 7 of the Treaty on European Union, the Member States and the institutions of the Union are obliged to respect, protect and promote the principles and values referred to therein.

Amendment 32 #

Proposal for a regulation
Recital 1 b (new)

(1 b) Member States shall duly and sincerely cooperate to take on the obligations of Union membership as recalled in the Treaty on the European Union.

Amendment 33 #

Proposal for a regulation
Recital 2

(2) The rule of law requires that all public powers act within the constraints set out by law, in accordance with the values of democracy and fundamental rights, and under the control of independent and impartial courts. It requires, in particular, that the principles of legality7 , legal certainty8 , prohibition of arbitrariness of the executive powers9 , separation of powers10 , and effective judicial protection by independent courts11 are respected12 . _________________ 7 Judgment of the Court of Justice of 29 April 2004, CAS Succhi di Frutta, C- 496/99 PECLI:EU:C:2004:236, paragraph 63. 8 Judgment of the Court of Justice of 12 November 1981, Amministrazione delle finanze dello Stato v Srl Meridionale Industria Salumi and others Ditta Italo Orlandi & Figlio and Ditta Vincenzo Divella v Amministrazione delle finanze dello Stato. Joined cases 212 to 217/80, ECLI:EU:C:1981:270, paragraph 10. 9 Judgment of the Court of Justice of 21 September 1989, Hoechst, Joined cases 46/87 and 227/88, ECLI:EU:C:1989:337, paragraph 19. 10 Judgment of the Court of Justice of 10 November 2016, Kovalkovas, C-477/16, ECLI:EU:C:2016:861, paragraph 36; Judgment of the Court of Justice of 10 November 2016, PPU Poltorak, C-452/16, ECLI:EU:C:2016:858, paragraph 35; and Judgment of the Court of Justice of 22 December 2010, DEB,C-279/09, ECLI:EU:C:2010:811, paragraph 58. 11 Judgment of the Court of Justice of 27 February 2018, Associação Sindical dos Juízes Portugueses v Tribunal de Contas C-64/16, ECLI:EU:C:2018:117, paragraphs 31, 40-41. 12 Communication from the Commission "A new EU Framework to strengthen the Rule of Law", COM(2014) 158 final, Annex I.deleted

Amendment 34 #

Proposal for a regulation
Recital 3

(3) The rule of law is a prerequisite for the protection of the other fundamental values on which the Union is founded, such as freedom, democracy, equality and respect for human rights. Respect for the rule of law is intrinsically linked to respect for democracy and for fundamental rights: there can be no democracy and respect for fundamental rights without respect for the rule of law and vice versafundamental values on which the Union is founded are intrinsically linked: there can be no hierarchy of values within the Union.

Amendment 35 #

Proposal for a regulation
Recital 4

(4) Whenever the Member States implement the Union’s budget, and whatever method of implementation they use, respect for the ~~rule of law~~Union values is an essential precondition to comply with the principles of sound financial management enshrined in Article 317 of the Treaty on the Functioning of the European Union.

Amendment 36 #

Proposal for a regulation
Recital 5

Amendment 37 #

Proposal for a regulation
Recital 6

(6) Judicial bodies should act independently and impartially and investigation and prosecution services should be able to properly execute their function. They should be endowed with sufficient resources and procedures to act effectively and in full respect of the right to a fair trial. These conditions are required as a minimum guarantee against unlawful and arbitrary decisions by public authorities that could harm the financial interests of the Union.deleted

Amendment 38 #

Proposal for a regulation
Recital 7

(7) The independence of the judiciary presupposes, in particular, that the body concerned is able to exercise its judicial functions wholly autonomously, without being subject to any hierarchical constraint or subordinated to any other body, and without taking orders or instructions from any source whatsoever, and that it is thus protected against external interventions or pressure liable to impair the independent judgment of its members and to influence their decisions. The guarantees of independence and impartiality require rules, particularly as regards the composition of the body and the appointment, length of service and the grounds for rejection and dismissal of its members, in order to dismiss any reasonable doubt in the minds of individuals as to the imperviousness of that body to external factors and its neutrality with respect to the interests before it.deleted

Amendment 39 #

Proposal for a regulation
Recital 8

(8) Respect for the rule of law is not only important for citizens of the Union, but also for business initiatives, innovation, investment and the proper functioning of the internal market, which will flourish most where a solid legal and institutional framework is in place.deleted

Amendment 40 #

Proposal for a regulation
Recital 9

(9) Article 19 TEU, which gives concrete expression to the value of the rule of law stated in Article 2 TEU, requires the Member States to provide effective judicial protection in the fields covered by Union law, including those relating to the implementation of the Union’s budget. The very existence of effective judicial review designed to ensure compliance with Union law is the essence of the rule of law and requires independent courts13 . Maintaining the independence of the courts is essential, as confirmed by the second subparagraph of Article 47 of the Charter of Fundamental Rights of the European Union14 . This is true, in particular, for the judicial review of the validity of the measures, contracts or other instruments giving rise to public expenditure or debts, inter alia in the context of public procurement procedures which may also be brought before the courts. _________________ 13 14deleted Case C-64/16, para 32-36. Case C-64/16, para 40-41.

Amendment 41 #

Proposal for a regulation
Recital 10

~~(10) There is hence a clear relationship between respect for the rule of law and an efficient implementation of the Union budget in accordance with the principles of sound financial management.~~deleted

Amendment 42 #

Proposal for a regulation
Recital 11

(11) Generalised deficiencies in the Member States as regards the ~~rule of law which affect in particular the proper functioning of public authorities and effective judicial review,~~Union vlaues can seriously harm the financial interests of the Union.

Amendment 43 #

Proposal for a regulation
Recital 11 a (new)

(11 a) The Commission should be able continuously to monitor the state of the rule of law in the Member States and an EU mechanism on democracy, the rule of law and fundamental rights could be set up as requested by the European Parliament in its resolution of 25 October 20161. _________ 1 European Parliament resolution of 25 October 2016 with recommendations to the Commission on the establishment of an EU mechanism on democracy, the rule of law and fundamental rights (2015/2254(INL)), OJ C 215,19.6.2018, p. 162–177

Amendment 44 #

Proposal for a regulation
Recital 12

(12) The identification of a generalised deficiency requires a qualitative assessment by the Commission~~. That assessment~~, assisted by a representative panel of independent experts. That assessment should be impartial and transparent, and could be based on the information from all available sources and recognized institutions, including judgments of the Court of Justice of the European Union, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations and networks, such as the bodies of the Council of Europe and the European networks of supreme courts and councils for the judiciary.

Amendment 45 #

Proposal for a regulation
Recital 12

Amendment 46 #

Proposal for a regulation
Recital 12

(12) The identification of a generalised deficiency requires a qualitative assessment by the Commission. That assessment cshould be based on the information from all available sources and recognized institutions, including judgments of the Court of Justice of the European Union, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations and networks, such as the bodies of the Council of Europe and the European networks of supreme courts and councils for the judiciary.

Amendment 47 #

Proposal for a regulation
Recital 13

(13) The possible measures to be adopted in the event of generalised deficiencies and the procedure to be followed to adopt them should be determined. Those measures should include the transfer of allocations, the replacement of recipients, the suspension of payments and of commitments, a reduction of funding under existing commitments, and a prohibition to conclude new commitments with recipients.

Amendment 48 #

Proposal for a regulation
Recital 14

Amendment 49 #

Proposal for a regulation
Recital 14 a (new)

(14 a) It is essential that the legitimate interests of the final recipients and beneficiaries are properly safeguarded when measures are adopted in the event of generalised deficiencies. The Commission should take into account the potential impact on final recipients and beneficiaries when considering the measures to be adopted. To strengthen the protection of the final recipients or beneficiaries, the Commission should actively monitor the respect of the legal obligation of the Member States to continue making payments after adopting measures in accordance with this Regulation, and inform the final recipients or beneficiaries of their rights in case any infringements occur.

Amendment 50 #

Proposal for a regulation
Recital 15

Amendment 51 #

Proposal for a regulation
Recital 15

Amendment 52 #

Proposal for a regulation
Recital 15 a (new)

(15 a) In view of their effect on the Union budget, measures with budgetary impact imposed pursuant to this Regulation should only enter into force after the European Parliament and the Council have approved a transfer in the budget of an amount equivalent to the value of the measures adopted. To facilitate the adoption of decisions which are required to protect the financial interests of the Union, such transfers should be considered to be approved unless, within a set period, the European Parliament or the Council, the latter acting by qualified majority, amend or reject them.

Amendment 53 #

Proposal for a regulation
Recital 15 a (new)

(15 a) In view of their effect on the Union's budget, measures imposed pursuant to this Regulation should only enter into force after the European Parliament and the Council have approved a transfer to a budgetary reserve of an amount equivalent to the value of the measures adopted. To facilitate the adoption of decisions which are required to protect the financial interest of the Union, that transfer should be considered adopted unless, within a set period, the European Parliament or the Council, the latter acting by a qualified majority, amend or reject it.

Amendment 54 #

Proposal for a regulation
Recital 15 a (new)

(15 a) Final beneficiaries of the Union budget, other than where a government entity is the recipient, should not be affected by breaches of rules for which they are not responsible.

Amendment 55 #

Proposal for a regulation
Recital 16

(16) Before proposing the adoption of any measure pursuant to this Regulation, the Commission should inform the Member State concerned why it considers that a generalised deficiency regarding the rule of law might exist in that Member State. The Commission should immediately inform the European Parliament and the Council about the notification and its content. The Member State concerned should be allowed to submit its observations. The Commission ~~and the Council~~ should take those observations into account.

Amendment 56 #

Proposal for a regulation
Recital 16

(16) Before proposing the adoption of any measure pursuant to this Regulation, the Commission should inform the Member State concerned why it considers that a generalised deficiency regarding the ~~rule of law~~Unions values might exist in that Member State. The Member State should be allowed to submit its observations. The Commission ~~and the Council~~ should take those observations into account.

Amendment 57 #

Proposal for a regulation
Recital 17

(17) The Co~~uncil~~mmission should lift measures with suspensive effect onand send a proposal ~~from the Commiss~~to the European Parliament and the Council to lift in full or in part the budgetary reserve of the measures in question, if the situation leading to the imposition of those measures has been sufficiently remedied.

Amendment 58 #

Proposal for a regulation
Recital 17

(17) The Co~~uncil~~mmission should lift measures with suspensive effect on a proposal from the Commission, if the situation leading to the imposition of those measures has been sufficiently remedied.

Amendment 59 #

Proposal for a regulation
Recital 18

~~(18) The Commission should keep the European Parliament informed of any measures proposed and adopted pursuant to this Regulation,~~deleted

Amendment 60 #

Proposal for a regulation
Article 1 – paragraph 1

This Regulation establishes the rules necessary for the protection of the Union’s budget in the case of generalised deficiencies as regards the ~~rule of law~~Union values in the Member States.

Amendment 61 #

Proposal for a regulation
Article 2 – paragraph 1 – point a

(a) 'the rule of law' ~~refers~~shall be understood having regard to the Union values enshrined in Article 2 of the Treaty on European Union ~~which~~and the membership criteria; it includes the principles of ~~leg~~equality, implying a transparent, accountable, democratic and pluralistic process for enacting laws; legal certainty; prohibition of arbitrariness of the executive powers; effective judicial protection by independent courts, including of fundamental rights; separation of powers and equality before the law;

Amendment 62 #

Proposal for a regulation
Article 2 – paragraph 1 – point a

(a) 'the ~~rule of law~~Union values' refers to the Union values enshrined in Article 2 of the Treaty on European Union which includes the principles of legality, implying a transparent, accountable, democratic and pluralistic process for enacting laws; legal certainty; prohibition of arbitrariness of the executive powers; effective judicial protection by independent courts, including of fundamental rights; separation respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of powers ~~and equality before the law~~ons belonging to minorities;

Amendment 63 #

Proposal for a regulation
Article 2 – paragraph 1 – point b

Amendment 64 #

Proposal for a regulation
Article 2 – paragraph 1 – point b

(b) 'generalised deficiency as regards the ~~rule of law~~Union values' means a widespread or recurrent practice or omission, or measure by public authorities which affects the ~~rule of law~~Union values;

Amendment 65 #

Proposal for a regulation
Article 2 a (new)

Article 2 a Monitoring The Commission shall continuously monitor and assess the correct implementation of the Union law and the respect for the rule of law.

Amendment 66 #

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

1. Appropriate measures shall be taken where a generalised deficiency as regards the ~~rule of law~~Union values in a Member State affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union, ~~in particular~~and:

Amendment 67 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) the proper functioning of the authorities of that Member State implementing the Union budget, in particular in the context of public procurement or grant procedures, and when carrying out monitoring and controlsCommission activates the EU Rule of Law Framework;

Amendment 68 #

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) the proper functioning of investigation and public prosecution services in relation to the prosecution of fraud, corruption or other breaches of Union law relating to the implementation of the Union budgetone third of the Member States, the European Parliament or the Commission submits a reasoned proposal to the Council in accordance with Article 7(1) TEU to determine that there is a clear risk of a serious breach by that Member State of the values referred to in Article 2 TEU;

Amendment 69 #

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) the proper functioning of investigation and public prosecution services in relation to the prosecution of fraud, including tax fraud,corruption or other breaches of Union law relating to the implementation of the Union budget;

Amendment 70 #

Proposal for a regulation
Article 3 – paragraph 1 – point c

(c) ~~the effective judicial review by independent courts of actions or omissions by the authoriti~~one third of the Member States or the Commission submits a reasoned proposal to the European Council in accordance with Article 7(2) TEU to determine the existence of a serious and persistent breach by that Member State of the values referred to in ~~points (a) and b)~~Article 2 TEU;

Amendment 71 #

Proposal for a regulation
Article 3 – paragraph 1 – point d

(d) the prevention and sanctioning of fraud, corruption or other breaches of Union law relating to the implementation of the Union budget, and the imposition of effective and dissuasive penalties on recipients by national courts or by administrative authorities;deleted

Amendment 72 #

Proposal for a regulation
Article 3 – paragraph 1 – point e

~~(e) the recovery of funds unduly paid;~~deleted

Amendment 73 #

Proposal for a regulation
Article 3 – paragraph 1 – point e a (new)

(e a) the prevention and sanctioning of tax evasion and the proper functioning of authorities contributing to administrative cooperation in tax matters;

Amendment 74 #

Proposal for a regulation
Article 3 – paragraph 1 – point f

(f) the effective and timely cooperation with the European Anti-fraud Office and with the European Public Prosecutor’s Office in their investigations or prosecutions pursuant to their respective legal acts and to the principle of loyal cooperation.deleted

Amendment 75 #

Proposal for a regulation
Article 3 – paragraph 2 – introductory part

2. ~~The following may, in particular, be considered generalised deficiencies as regards the rule of law,~~In the assessment of the state of generalised deficiencies as regards the Union values, the Commission shall be assisted by a representative panel of independent experts ("Democracy, Rule of Law and Fundamental Rights Expert Panel"). The Democracy, Rule of Law and Fundamental Rights Expert Panel shall assess the situation on the basis of a quantitative and qualitative review of the data and information available, including decisions of the Court of Justice of the European Union, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations.

Amendment 76 #

Proposal for a regulation
Article 3 – paragraph 2 – point a

~~(a) endangering the independence of judiciary;~~deleted

Amendment 77 #

Proposal for a regulation
Article 3 – paragraph 2 – point b

(b) failing to prevent, correct and sanction arbitrary or unlawful decisions by public authorities, including by law enforcement authorities, withholding financial and human resources affecting their proper functioning or failing to ensure the absence of conflicts of interests;deleted

Amendment 78 #

Proposal for a regulation
Article 3 – paragraph 2 – point c

Amendment 79 #

Proposal for a regulation
Article 3 – paragraph 2 – point c a (new)

(c a) endangering the ability of a Member State to respect the obligations of Union membership, including the capacity effectively to implement the rules, standards and policies that constitute the body of Union law;

Amendment 80 #

Proposal for a regulation
Article 3 – paragraph 2 a (new)

2 a. The assessment by the Democracy, Rule of Law and Fundamental Rights Expert Panel shall be made public by the Commission.

Amendment 81 #

Proposal for a regulation
Article 3 a (new)

Article 3 a Democracy, Rule of Law and Fundamental Rights Expert Panel 1. The Democracy, Rule of Law and Fundamental Rights Expert Panel shall be composed of the following members: (a) one independent expert designated by the parliament of each Member State; the Members of the expert panel shall be qualified constitutional court or supreme court judges, not currently in active service; (b) ten further experts designated by the European Parliament with a two-third majority, chosen from a list of experts nominated by: (i) the federation of All European Academies (ALLEA); (ii) the European Network of National Human Rights Institutions (ENNHRI); (iii) the Council of Europe (including the Venice Commission, GRECO and the Council of Europe Commissioner for Human Rights); (iv) CEPEJ and the Council of Law and Bar Societies Europe (CCBE); (v) the United Nations (UN), the OSCE and the Organisation for Economic Co- operation and Development (OECD). 2. The composition of the Democracy, Rule of Law and Fundamental Rights Expert Panel shall ensure gender balance. 3. The Democracy, Rule of Law and Fundamental Rights Expert Panel shall elect its Chair from among its members. 4. In order to facilitate the work of the Democracy, Rule of Law and Fundamental Rights Expert Panel, the Commission shall provide a secretariat to the Expert Panel, enabling it to function efficiently, in particular by gathering data and information sources to be reviewed and assessed, and by providing administrative support.

Amendment 82 #

Proposal for a regulation
Article 4 – paragraph -1 (new)

-1. In cases referred to in point (a) of Article 3(1), one or more of the following appropriate measures may be adopted: (a) where the Commission implements the Union’s budget in shared management pursuant to point (b) of Article 62 of the Financial Regulation, a modification of the method to implement the budget from shared to direct management; (b) where the Commission implements the Union’s budget in indirect management pursuant to point (c) of Article 62 of the Financial Regulation, and where a Member State organisation which is responsible for the deficiencies as regards the Union values is involved in the managment of the funds: (i) a replacement of the entity implementing the budget for the benefit of strengthening the Union values in the Member State concerned; (ii) a modification of the method to implement the budget from indirect to direct management.

Amendment 83 #

Proposal for a regulation
Article 4 – paragraph -1 a (new)

-1 a. In cases referred to in point (b) of Article 3(1), one or more of the following appropriate measures may be adopted: (a) where the Commission implements the Union’s budget in direct management pursuant to point(a) of Article 62 of the Financial Regulation, and where a government entity is the recipient: (i) a transfer of programme financial allocations to any other instrument for the benefit of strengthening the Union values in the Member State concerned; (ii) a replacement of the recipient by another government entity or a different entity for the benefit of strengthening the Union values in the Member State concerned; (b) where the Commission implements the Union’s budget in shared management pursuant to point (b) of Article 62 of the Financial Regulation: (i) a transfer of programme financial allocations to another programme for the benefit of strengthening the Union values in the Member State concerned; (ii) measures referred to in point (a) of Article 4(-1); (c) where the Commission implements the Union’s budget in indirect management pursuant to point (c) of Article 62 of the Financial Regulation, and where a Member State organisation which is responsible for the deficiencies as regards the Union values is involved in the management of the funds: (i) a transfer of programme financial allocations to another programme for the benefit of strengthening the Union values in the Member State concerned; (ii) measures referred to in point (b) of Article4(-1); (d) where the Commission implements the Union’s budget in indirect management pursuant to point (c) of Article 62 of the Financial Regulation, and where a Member State organisation is the recipient, a transfer of programme financial allocations to another programme for the benefit of strengthening the Union values in the Member State concerned.

Amendment 84 #

Proposal for a regulation
Article 4 – paragraph 1 – introductory part

1. OIn cases referred to in point (c) of Article 3(1), one or more of the following appropriate measures may be adopted

Amendment 85 #

Helmut SCHOLZ

Proposal for a regulation
Article 4 – paragraph 1 – point a – point 2 a (new)

(2 a) where applicable, a suspension of indirect management and implementation in direct management in its stead;

Amendment 86 #

Proposal for a regulation
Article 4 – paragraph 1 – point a – point 2 a (new)

(2 a) measures referred to in point(a) of Article 4(-1a).

Amendment 87 #

Helmut SCHOLZ

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 6 a (new)

(6 a) where applicable, a suspension of shared management and implementation in direct management in its stead;

Amendment 88 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 6 a (new)

(6 a) measures referred to in point (b) of Article 4(-1a).

Amendment 89 #

Proposal for a regulation
Article 4 – paragraph 1 – point b a (new)

(b a) (c) where the Commission implements the Union’s budget in indirect management pursuant to point (c) of Article 62 of the Financial Regulation, and where a Member State organisation which is responsible for the deficiencies as regards the Union values is involved in the management of the funds: (i) a suspension of payments or of the implementation of the legal commitment or a termination of the legal commitment pursuant to Article 131(3) of the Financial Regulation; (ii) a prohibition to enter into new legal commitments; (iii) measures referred to in point (c) of Article 4(-1a).

Amendment 90 #

Proposal for a regulation
Article 4 – paragraph 1 – point b b (new)

(b b) (d) where the Commission implements the Union’s budget in indirect management pursuant to point (c) of Article 62 of the Financial Regulation, and where a Member State organisation is the recipient: (i) a suspension of payments or of the implementation of the legal commitment or a termination of the legal commitment pursuant to Article 131(3) of the Financial Regulation; (ii) a prohibition to enter into new legal commitments; (iii) measures referred to in point (d) of Article 4(-1a).

Amendment 91 #

Proposal for a regulation
Article 4 – paragraph 2

2. 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. The Commission shall actively monitor whether the legal entitlements of final recipients or beneficiaries are respected. If the Commission finds evidence that the Member State is not fulfilling its obligation to secure the payments and legitimate interests of final recipients or beneficiaries, it shall take all appropriate measures to assist those recipients or beneficiaries in enforcing their claims.

Amendment 92 #

Proposal for a regulation
Article 4 – paragraph 2

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

Amendment 93 #

Proposal for a regulation
Article 4 – paragraph 3

3. The measures taken shall be proportionate to the nature, gravity and scope of the generalised deficiency as regards the ~~rule of law~~Union values. They shall, insofar as possible, target the Union actions affected or potentially affected by that deficiency.

Amendment 94 #

Proposal for a regulation
Article 5 – paragraph 1

1. Where the Commission 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.

Amendment 95 #

Proposal for a regulation
Article 5 – paragraph 2

2. The Commission ~~may~~shall take into account all relevant information, including ~~decisions of the Court of Justice of the European Union, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations~~the assessment made by the Democracy, Rule of Law and Fundamental Rights Expert Panel.

Amendment 96 #

Proposal for a regulation
Article 5 – paragraph 2

2. The Commission may take into account all relevant information, including decisions of the Court of Justice of the European Union, reports of the Court of Auditors, resolutions of the European Parliament and conclusions and recommendations of relevant international organisations.

Amendment 97 #

Proposal for a regulation
Article 5 – paragraph 2

2. The Commission ~~may~~shall take into account all relevant information, including, where available, decisions of the Court of Justice of the European Union, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations.

Amendment 98 #

Proposal for a regulation
Article 5 – paragraph 4

4. The Member State concerned shall provide all required information and may make observations within a time limit specified by the Commission, which shall not be less than 1 month or more than 3 months from the date of notification of the finding. In its observations, the Member State may propose the adoption of remedial measures.

Amendment 99 #

Proposal for a regulation
Article 5 – paragraph 5

5. 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 measures.

source: 628.677

2018/10/19 REGI 123 amendments...

Amendment 10 #

Proposal for a regulation
Recital 1

(1) The rule of law is one of the essential values upon which the Union is founded. It shall have a common definition and shall be understood similarly in all Member States. As recalled by Article 2 of the Treaty on European Union, these values are common to the Member States.

Amendment 100 #

Proposal for a regulation
Article 5 – paragraph 2

2. The Commission ~~may~~shall take into account all relevant proved information, including from governmental entities, decisions of the Court of Justice of the European Union, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations.

Amendment 101 #

Proposal for a regulation
Article 5 – paragraph 2

2. The ~~Commission~~independent panel of experts may take into account all relevant information, including decisions of the Court of Justice of the European Union, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations.

Amendment 102 #

Proposal for a regulation
Article 5 – paragraph 3

3. The Commission may, based on a ruling of the European Court of Justice, request any additional information required for its assessment, both before and after having made a finding pursuant to paragraph 1.

Amendment 103 #

Proposal for a regulation
Article 5 – paragraph 3

Amendment 104 #

Proposal for a regulation
Article 5 – paragraph 3

3. The Commission and the independent panel of experts may request any additional information required for its assessment, both before and after having made a finding pursuant to paragraph 1.

Amendment 105 #

Proposal for a regulation
Article 5 – paragraph 4

4. The Member State concerned shall provide all required information and may make observations within a reasonable time limit specified by the Commission, which shall not be less than 1 month from the date of notification of the finding. In its observations, the Member State may propose the adoption of remedial measures.

Amendment 106 #

Proposal for a regulation
Article 5 – paragraph 5

5. The Commission shall take into account the assessment by the independent panel of experts, 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 a decision on the appropriate measures.

Amendment 107 #

Proposal for a regulation
Article 5 – paragraph 5 a (new)

5a. Before adopting a decision on the appropriate measures, the Commission shall carry out an assessment of the potential impact of those measures on final recipients or beneficiaries of the payments related to the affected programmes or funds. The Commission shall take into due account the information and guidance referred to in paragraph 2 when assessing the proportionality of the measures.

Amendment 108 #

Proposal for a regulation
Article 5 – paragraph 6

6. Where the Commission considers that the generalised deficiency as regards the rule of law as defined in Article 3(2) is established, it shall submit a proposal for an implementing act on the appropriate measures to the ~~Council~~European Parliament for opinion and to the Council for decision. After taking into account the European Parliament’s opinion, 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. The Council, acting by a qualified majority, may amend the Commission’s proposal and adopt the amended text as a Council decision.

Amendment 109 #

Proposal for a regulation
Article 5 – paragraph 6

6. 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 on~~on the appropriate measures to the European Parliament. If the European Parliament, acting by majority of the votes cast, gives its consent to the approp~~riate measures~~osal, the Commission shall submit a proposal for an implementing act to the Council.

Amendment 11 #

Amendment 110 #

Proposal for a regulation
Article 5 – paragraph 6

6. Where the Commission considers that the generalised deficiency as regards the rule of law is established, it ~~shall submit a proposal~~adopt a decision for an implementing act on the appropriate measures ~~to the Council~~by means of an implementing act.

Amendment 111 #

Proposal for a regulation
Article 5 – paragraph 6

6. Where the Commission considers that the generalised deficiency as regards the rule of law is established, it shall submit a proposal for a~~n implementing~~ delegated act on the appropriate measures to the Council.

Amendment 112 #

Proposal for a regulation
Article 5 – paragraph 6 a (new)

6a. At the same time as it adopts its decision, the Commission shall simultaneously submit to the European Parliament and the Council a proposal to transfer to a budgetary reserve an amount equivalent to the value of the measures adopted.

Amendment 113 #

Proposal for a regulation
Article 5 – paragraph 6 b (new)

6b. By way of derogation from paragraphs 4 and 6 of Article 31 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, paragraph 8 of Article 31 of the Financial Regulation shall apply.

Amendment 114 #

Proposal for a regulation
Article 5 – paragraph 6 c (new)

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

Amendment 115 #

Proposal for a regulation
Article 5 – paragraph 7

7. ~~The dec~~Where the Commission ~~shall be deemed to have been adopted by the Council, unless it decides, by qualified majority, to reject the Commission proposal within one m~~considers that the generalised deficiency as regards the rule of law as defined in Article 3(1) is established, it shall submit a proposal for a decision on the appropriate measures to the European Parliament and to the Council for opinion. Taking into account the European Parliament and Council opinions, the Commission shall take a decision on th ~~of its adoption by the Commission~~e appropriate measures, or a decision not to enforce the rule-of-law conditionality.

Amendment 116 #

Proposal for a regulation
Article 5 – paragraph 7

7. The decision shall be deemed to have been adopted by the Council~~, unless it~~ and the Parliament according to the rules on delegated acts. The Council may decides, by qualified majority, to reject the Commission proposal within one month of its adoption by the Commission. The European Parliament may also decide to reject the Commission proposal.

Amendment 117 #

Proposal for a regulation
Article 5 – paragraph 7

7. 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 ~~adopt~~transmission by the Commission, or it shall be deemed to have been rejected.

Amendment 118 #

Proposal for a regulation
Article 5 – paragraph 7

7. 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~~ by unanimity, without the participation of the Member State concerned.

Amendment 119 #

Proposal for a regulation
Article 5 – paragraph 8

~~8. The Council, acting by a qualified majority, may amend the Commission’s proposal and adopt the amended text as a Council decision.~~deleted

Amendment 12 #

Proposal for a regulation
Recital 2

(2) The rule of law must be defined in detail. It generally requires that all public powers act within the constraints set out by law, in accordance with the values of democracy and fundamental rights, and under the control of independent and impartial courts. It requires, in particular, that the principles of legality7 , legal certainty8 , prohibition of arbitrariness of the executive powers9 , separation of powers10 , and effective judicial protection by independent courts11 are respected12 . _________________ 7 Judgment of the Court of Justice of 29 April 2004, CAS Succhi di Frutta, C- 496/99 PECLI:EU:C:2004:236, paragraph 63. 8 Judgment of the Court of Justice of 12 November 1981, Amministrazione delle finanze dello Stato v Srl Meridionale Industria Salumi and others Ditta Italo Orlandi & Figlio and Ditta Vincenzo Divella v Amministrazione delle finanze dello Stato. Joined cases 212 to 217/80, ECLI:EU:C:1981:270, paragraph 10. 9 Judgment of the Court of Justice of 21 September 1989, Hoechst, Joined cases 46/87 and 227/88, ECLI:EU:C:1989:337, paragraph 19. 10 Judgment of the Court of Justice of 10 November 2016, Kovalkovas, C-477/16, ECLI:EU:C:2016:861, paragraph 36; Judgment of the Court of Justice of 10 November 2016, PPU Poltorak, C-452/16, ECLI:EU:C:2016:858, paragraph 35; and Judgment of the Court of Justice of 22 December 2010, DEB,C-279/09, ECLI:EU:C:2010:811, paragraph 58. 11 Judgment of the Court of Justice of 27 February 2018, Associação Sindical dos Juízes Portugueses v Tribunal de Contas C- 64/16, ECLI:EU:C:2018:117, paragraphs 31, 40-41. 12 Communication from the Commission "A new EU Framework to strengthen the Rule of Law", COM(2014) 158 final, Annex I.

Amendment 120 #

Proposal for a regulation
Article 5 – paragraph 8

~~8. The Council, acting by a qualified majority, may amend the Commission’s proposal and adopt the amended text as a Council decision.~~deleted

Amendment 121 #

Proposal for a regulation
Article 5 – paragraph 8

8. The Council, acting by ~~a qualified majority~~unanimity with the non-participation of the Member State concerned, may amend the Commission’s proposal and adopt the amended text as a Council decision.

Amendment 122 #

Proposal for a regulation
Article 5 – paragraph 8 a (new)

8a. Throughout the period of application of the measures, the Commission shall actively monitor whether the legal entitlements of final recipients or beneficiaries are being respected. The Commission shall also facilitate the submission to it of complaints from final recipients or beneficiaries where they consider their legal entitlements are not being respected. Where the Commission finds that the Member State or the government entity concerned fails to fulfil its legal obligation to make payments, and the legitimate interests of final recipients or beneficiaries are not being respected, it shall take any appropriate measures to assist those final recipients or beneficiaries in enforcing their claims.

Amendment 123 #

Proposal for a regulation
Article 6 – paragraph 2

2. The Commission ~~shall assess~~and the independent panel of experts shall assess within one month the situation in the Member State concerned. ~~Once~~If the generalised deficiencies as regards the rule of law ~~which~~ on the grounds of which the appropriate measures were adopted cease to exist in full or in part, the Commission shall submit to the Council a proposal for a decision lifting those measures in full or in part. The procedure set out in paragraphs 2, 4~~, 5, 6~~ and 75 of Article 5 shall apply. 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.

Amendment 124 #

Proposal for a regulation
Article 6 – paragraph 2

2. The Commission 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 reception of the formal notification. Once the generalised deficiencies as regards the rule of law which on the grounds of which the appropriate measures were adopted cease to exist in full or in part, the Commission shall ~~submit to the Council a proposal for a decision lifting those measures in full or in part.~~ , 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, 6b and 76c of Article 5 shall apply.

Amendment 125 #

Proposal for a regulation
Article 6 – paragraph 3

3. 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.~~

Amendment 126 #

Proposal for a regulation
Article 7

~~Information of the European Parliament The Commission shall immediately inform the European Parliament of any measures proposed or adopted pursuant to Articles 4 and 5~~Article 7 deleted

Amendment 127 #

Proposal for a regulation
Article 7 – paragraph 1

The ~~Commission shall immediately inform the European Parliament of any~~European Parliament may invite the Commission for a structured dialogue on the measures proposed or adopted ~~pursuant~~, having regard to Articles 4, 5 and 56, including on the issue of the protection of final beneficiaries.

Amendment 128 #

Proposal for a regulation
Article 7 – paragraph 1

The Commission shall immediately inform the European Parliament and the Council of any measures proposed or adopted pursuant to Articles 4 and 5.

Amendment 13 #

Proposal for a regulation
Recital 2 a (new)

(2a) Member States should be assessed on a regular basis in order to verify that their laws and practices comply with the common values on which the Union is founded, thereby providing a sound legal and administrative framework for the implementation of Union policies. The obligations incumbent on a candidate country under the Copenhagen criteria, which include the stability of institutions guaranteeing democracy, the rule of law, human rights, and respect for and protection of minorities, as well as the ability to take on the obligations of Union membership, continue to apply to the Member States after joining the Union. These obligations are set out in Article 2 TEU, and the principle of sincere cooperation is established by Article 4 TEU.

Amendment 14 #

Proposal for a regulation
Recital 3

(3) The rule of law is a prerequisite for the protection of the other fundamental values on which the Union is founded, such as freedom, democracy, equality and respect for human rights. Respect for the rule of law is intrinsically linked to respect for democracy and for fundamental rights: there can be no democracy and respect for fundamental rights without respect for the rule of law and vice versa. The coherence and consistency of internal and external democracy, rule of law and respect for fundamental human rights is key to the credibility of the Union.

Amendment 15 #

Proposal for a regulation
Recital 3

(3) The rule of law is a prerequisite for the protection of the other fundamental values on which the Union is founded, such as freedom, democracy, equality and respect for human rights as well as non- discrimination of its citizens and its Member States. Respect for the rule of law is intrinsically linked to respect for democracy and for fundamental rights: there can be no democracy and respect for fundamental rights without respect for the rule of law and vice versa.

Amendment 16 #

Proposal for a regulation
Recital 11

(11) Generalised deficiencies in the Member States as regards the rule of law which affect in particular the proper functioning of public authorities and effective judicial review, can seriously harm the financial interests of the Union. Efficient investigations into such deficiencies, and the application of effective and proportionate measures when a generalised deficiency is established, are needed not only to secure the financial interests of the Union, including the effective collection of revenue, but also to ensure public trust in the Union and its institutions. Only an independent judiciary that upholds the rule of law and legal certainty in all Member States can ultimately guarantee that money from the EU budget is sufficiently protected.

Amendment 17 #

Proposal for a regulation
Recital 12

(12) The identification of a generalised deficiency requires a qualitative assessment by the Commission. That assessment could be based on the information from all available sources and recognized institutions, including judgments of the Court of Justice of the European Union, reports of the Court of Auditors, expert opinions of the relevant European Union Agencies, and conclusions and recommendations of relevant international organisations and networks, such as the bodies of the Council of Europe and the European networks of supreme courts and councils for the judiciary. In order to secure transparency through meaningful and effective democratic debate, the Commission should allow the participation of interested EU citizens and stakeholders' groups, whose opinions and arguments should be taken into account in the decision-making process.

Amendment 18 #

Proposal for a regulation
Recital 12

(12) The identification of a generalised deficiency requires a ~~qual~~transparent and impartial assessment - at the initiative ~~assessment by the Commission. That~~ of the Commission in duly justified cases - by an independent panel of experts, the composition of which should follow the resolution of the European Parliament of 25 October 2016 with recommendations to the Commission on the establishment of an EU mechanism on democracy, the rule of law and fundamental rights. The assessment cshould be based on the information from all available sources and recognized institutions, including judgments of the Court of Justice of the European Union, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations and networks, such as the bodies of the Council of Europe and the European networks of supreme courts and councils for the judiciary.

Amendment 19 #

Proposal for a regulation
Recital 12

(12) The identification of a potential generalised deficiency requires a ~~qualitative assessment by the Commission~~n impartial, transparent, qualitative assessment at the initiative of the Commission, under the same conditions applicable to all Member States. That assessment cshould ~~be based on~~factor in all the information from all available sources and recognizsed institutions, including judgments of the Court of Justice of the European Union, which is the only institution which can rule on fulfilment or otherwise of the conditions set out in the EU treaties, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations and networks, such as the bodies of the Council of Europe and the European networks of supreme courts and councils for the judiciary.

Amendment 20 #

Proposal for a regulation
Recital 12

(12) The identification of a potential generalised deficiency requires a ~~qualitative assessment by the Commission~~n impartial, transparent, qualitative assessment at the initiative of the Commission, under the same conditions applicable to all Member States. That assessment cshould ~~be based on~~factor in all the information from all available sources and recognizsed institutions, including judgments of the Court of Justice of the European Union, which is the only institution that can rule on fulfilment or otherwise of the conditions set out in the EU treaties, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations and networks, such as the bodies of the Council of Europe and the European networks of supreme courts and councils for the judiciary.

Amendment 21 #

Proposal for a regulation
Recital 13

(13) The possible measures to be adopted in the event of generalised deficiencies and the procedure to be followed to adopt them should be determined. Those measures should include the suspension of payments and of commitments, a reduction of funding under existing commitments, and a prohibition to conclude new commitments with recipients. Any decision to enforce conditionality should provide serious guarantees, based on impact assessments, to ensure that final beneficiaries of EU funds are not adversely affected.

Amendment 22 #

Proposal for a regulation
Recital 13

(13) The possible measures to be adopted in the event of generalised deficiencies and the procedure to be followed to adopt them should be ~~determined~~clear, and should ensure equal criteria and equal treatment among all Member States. Those measures should include the suspension of payments and of commitments, a reduction of funding under existing commitments, and a prohibition to conclude new commitments with recipients.

Amendment 23 #

Proposal for a regulation
Recital 13

(13) The possible measures to be adopted in the event of generalised deficiencies and the procedure to be followed to adopt them should be determined. Those measures should include the suspension of payments, a~~nd of commitments, a reduction of funding under existing commitment~~ modification of the implementation method, a transfer of financial allocations, and a prohibition to conclude new commitments with recipients.

Amendment 24 #

Proposal for a regulation
Recital 14

(14) The principle of proportionality should apply when determining the measures to be adopted, in particular taking into account the seriousness of the situation, the time which has elapsed since the relevant conduct started, its duration and its recurrence, the intention, and the degree of cooperation of the Member State concerned in putting an end to the generalised deficiency as regards the rule of law, and the effects of that deficiency on the respective Union funds. The scope and level of the suspension of commitments to be imposed should be proportionate, should respect the equality of treatment between Member States, and should take into account the economic and social circumstances of the Member State concerned and the impact of the suspension on the economy of the Member State concerned. The impact of suspensions on programmes of critical importance to address rule-of-law conditions should be a specific factor to be taken into account.

Amendment 25 #

Proposal for a regulation
Recital 14 a (new)

(14a) It is essential that the legitimate interests of final recipients and beneficiaries are properly safeguarded when measures are adopted in the event of generalised deficiencies. When considering the measures to be adopted, the Commission should take into account their potential impact on final recipients and beneficiaries. To strengthen the protection of the final recipients or beneficiaries, the Commission should actively monitor the respect of the legal obligation of government entities and Member States to continue making payments after adopting measures on basis of this regulation, and inform the final recipients or beneficiaries of their rights in case any infringements occur.

Amendment 26 #

Proposal for a regulation
Recital 14 b (new)

(14b) It is essential that individual recipients of scholarships through programmes such as Erasmus, research grants and similar individual grants should not be affected if measures are adopted concerning a Member State in the event of generalised deficiencies.

Amendment 27 #

Proposal for a regulation
Recital 15

Amendment 28 #

Proposal for a regulation
Recital 15

Amendment 29 #

Proposal for a regulation
Recital 15

Amendment 30 #

Proposal for a regulation
Recital 16

(16) Before ~~proposing the adoption of~~ any measure pursuant to this Regulation is proposed for adoption, the European Court of Justice should have ruled on the situation regarding a breach of the rule of law. However, the Commission ~~should~~must inform the Member State concerned why it considers that a generalised deficiency regarding the rule of law might exist in that Member State. The Member State ~~should~~must be allowed to submit its observations. The Commission, Parliament and the Council should take those observations into account.

Amendment 31 #

Proposal for a regulation
Recital 16

(16) Before ~~proposing the adoption of~~ any measure pursuant to this Regulation is proposed for adoption, the European Court of Justice should have ruled on the situation regarding breach of the rule of law. However, the Commission ~~should~~must inform the Member State concerned why it considers that a generalised deficiency regarding the rule of law might exist in that Member State. The Member State ~~should~~must be allowed to submit its observations. The Commission, Parliament and the Council should take those observations into account.

Amendment 32 #

Proposal for a regulation
Recital 16

(16) Before proposing the adoption of any measure pursuant to this Regulation, the Commission should inform the Member State concerned why it considers that a generalised deficiency regarding the rule of law might exist in that Member State. The Commission should immediately inform the European Parliament and the Council about the notification and its contents. The Member State concerned should be allowed to submit its observations. The Commission ~~and the Council~~ should take those observations into account.

Amendment 33 #

Proposal for a regulation
Recital 16

(16) Before proposing the adoption of any measure pursuant to this Regulation, the Commission should inform the Member State concerned of the outcome of the evaluation undertaken by the independent panel of experts, and why it considers that a generalised deficiency regarding the rule of law might exist in that Member State. The Member State should be allowed to submit its observations. The Commission, the Parliament and the Council should take those observations into account.

Amendment 34 #

Proposal for a regulation
Recital 16

(16) Before proposing the adoption of any measure pursuant to this Regulation, the Commission should inform the Member State concerned why it considers that a generalised deficiency regarding the rule of law might exist in that Member State. The Member State should be allowed to submit its observations. The Commission, the European Parliament and the Council should take those observations into account.

Amendment 35 #

Proposal for a regulation
Recital 17

~~(17) The Council should lift measures with suspensive effect on a proposal from the Commission, if the situation leading to the imposition of those measures has been sufficiently remedied.~~deleted

Amendment 36 #

Proposal for a regulation
Recital 17

(17) The Co~~uncil~~mmission should lift measures with suspensive effect ~~on a proposal from the Commiss~~, and submit a proposal to the Parliament and the Council to lift in full or in part the budgetary reserve of the measures in question, if the situation leading to the imposition of those measures has been sufficiently remedied.

Amendment 37 #

Proposal for a regulation
Recital 18

~~(18) The Commission should keep the European Parliament informed of any measures proposed and adopted pursuant to this Regulation,~~deleted

Amendment 38 #

Proposal for a regulation
Recital 18

(18) The Commission should keep the European Parliament and the Council informed of any measures proposed and adopted pursuant to this Regulation,

Amendment 39 #

Proposal for a regulation
Article 2 – paragraph 1 – point a

(a) 'the rule of law' refers to the Union value enshrined in Article 2 of the Treaty on European Union which includes amongst others the principles of legality, implying a transparent, accountable, democratic and pluralistic process for enacting laws; legal certainty; ~~prohibition of arbitrariness of the executive powers; effective judicial protection by independent courts, including of fundamental rights; separation of powers and equality before the la~~tolerance, solidarity and respect for human dignity, freedom, equality and human rights including the rights of persons belonging to minorities; prohibition of arbitrariness of the executive powers; effective judicial protection by independent courts, including of fundamental rights, equal treatment, absence of discrimination, freedom of opinion and expression, and fundamental labour rights; separation of powers and equality before the law, especially by effective limits on government powers by the legislature, by the judiciary and by independent audit and review;

Amendment 40 #

Proposal for a regulation
Article 2 – paragraph 1 – point b

(b) 'generalised deficiency as regards the rule of law' means a widespread or recurrent practice or omission, or measure by public authorities which affects the rule of law, with this situation being confirmed by a ruling by the European Court of Justice, which is the only authority empowered to rule on matters concerning respect for the rule of law;

Amendment 41 #

Proposal for a regulation
Article 2 – paragraph 1 – point b

(b) 'generalised deficiency as regards the rule of law' means a widespread or recurrent practice or omission, or measure by public authorities which affects the rule of law, with this situation being confirmed by a decision of the European Court of Justice, which is the only authority empowered to rule on matters concerning respect for the rule of law;

Amendment 42 #

Proposal for a regulation
Article 2 – paragraph 1 – point b

(b) 'generalised deficiency as regards the rule of law' means a widespread or recurrent practice or omission, or measure by public authorities which affects the rule of law as described in Article 3;

Amendment 43 #

Proposal for a regulation
Article 2 – paragraph 1 – point c a (new)

(ca) 'independent panel of experts' is to be considered as referred to in the resolution of the European Parliament of 25 October 2016 with recommendations to the Commission on the establishment of an EU mechanism on democracy, the rule of law and fundamental rights.

Amendment 44 #

Proposal for a regulation
Article 3 – title

MeGeneralised deficiency asu resgards the rule of law

Amendment 45 #

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

1. ~~Appropriate measures shall be taken where a g~~Generalised deficiencyies as regards the rule of law in a Member State that affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union are, in particular:

Amendment 46 #

1. Appropriate measures shall be taken where a generalised deficiency as regards ~~the rule of law~~Union values in a Member State affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union, in particular:

Amendment 47 #

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

1. Appropriate measures shall be taken where a generalised deficiency as regards the rule of law in a Member State affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union by breach of secondary EU law, in particular:

Amendment 48 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

Amendment 49 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

Amendment 50 #

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) the pEurope~~r functioning of investigation and public prosecution services in relation to the prosecution of fraud, corruption or other breaches of Union law relating to the implementation of the Union budget~~an Parliament, one third of the Member States, or the Commission submits a reasoned proposal to the Council in accordance with Article 7(1) TEU to determine that there is a clear risk of a serious breach by that Member State of the values referred to in Article 2 TEU;

Amendment 51 #

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) the proper functioning of investigation and public prosecution services in relation to the prosecution of fraud, corruption or other breaches of Union law and an effective criminal investigation system relating to the implementation of the Union budget;

Amendment 52 #

Proposal for a regulation
Article 3 – paragraph 1 – point c

(c) ~~the effective judicial review by independent courts of actions or omissions by the authorities referred to in points (a) and b);~~one third of the Member States or the Commission submits a reasoned proposal to the European Council in accordance with Article 7(2) TEU to determine the existence of a serious and persistent breach by that Member State of the values referred to in Article 2 TEU.

Amendment 53 #

Proposal for a regulation
Article 3 – paragraph 1 – point d

Amendment 54 #

Proposal for a regulation
Article 3 – paragraph 1 – point e

~~(e) the recovery of funds unduly paid;~~deleted

Amendment 55 #

Proposal for a regulation
Article 3 – paragraph 1 – point f

Amendment 56 #

Proposal for a regulation
Article 3 – paragraph 1 – point f a (new)

(fa) the freedom of opinion and expression required in order to permit the uncovering of cases of fraud, corruption or other breaches of EU law, including the freedom of the press, freedom of association and academic freedom.

Amendment 57 #

Proposal for a regulation
Article 3 – paragraph 1 – point f a (new)

(fa) the fiscal discipline of that Member State, in particular the avoidance of excessive government deficit in line with Article 126 TFEU.

Amendment 58 #

Proposal for a regulation
Article 3 – paragraph 2 – point c

(c) limiting the availability and effectiveness of legal remedies, including through restrictive procedural rules, lack of implementation of judgments with a particular focus on decisions of the Court of Justice of the European Union deriving from infringement procedures, or limiting the effective investigation, prosecution or sanctioning of breaches of law.

Amendment 59 #

Proposal for a regulation
Article 3 – paragraph 2 – point c a (new)

(ca) disproportionately restricting the freedom of the press, freedom of association and academic freedom;

Amendment 6 #

Proposal for a regulation
Title 1

~~Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States~~The Committee on Regional Development calls on the Committee on Budgets and the Committee on Budgetary Control, as the committees responsible, to propose rejection of the Commission proposal.

Amendment 60 #

Proposal for a regulation
Article 3 – paragraph 2 – point c b (new)

(cb) failing that to ensure that the government is accountable under the law, as are private actors;

Amendment 61 #

Proposal for a regulation
Article 3 – paragraph 2 – point c c (new)

(cc) failing to ensure that laws are publicised and just, and protect fundamental rights, including the security of persons and property and certain core human rights;

Amendment 62 #

Proposal for a regulation
Article 3 – paragraph 2 – point c d (new)

(cd) failing to ensure that the processes by which the laws are enacted, administered, and enforced are accessible, fair, and efficient;

Amendment 63 #

Proposal for a regulation
Article 3 – paragraph 2 – point c e (new)

(ce) failing to ensure that justice is delivered timely by competent, ethical, and independent representatives and neutral parties who are accessible, have adequate resources, and reflect the make-up of the communities they serve;

Amendment 64 #

Proposal for a regulation
Article 3 – paragraph 2 – point c f (new)

(cf) failing to ensure that government powers are subject to non-governmental checks, and that government officials are sanctioned for misconduct.

Amendment 65 #

Proposal for a regulation
Article 4 – title

~~Content of m~~Measures

Amendment 66 #

Proposal for a regulation
Article 4 – paragraph 1 – introductory part

1. One or more of the following appropriate measures may be adopted in the case of a generalised deficiency as regards the rule of law:

Amendment 67 #

Proposal for a regulation
Article 4 – paragraph 1 – introductory part

1. ~~One or more of t~~The following appropriate measures may be adopted:

Amendment 68 #

Proposal for a regulation
Article 4 – paragraph 1 – point a – point 1

(1) a suspension of payments ~~or of the implementation of the legal commitment or a termination of the legal commitment pursuant to Article [131(3)] of the Financial Regulation~~;

Amendment 69 #

Proposal for a regulation
Article 4 – paragraph 1 – point a – point 1 a (new)

(1a) a transfer of financial allocations to another programme for the benefit of strengthening the Union values in the Member State concerned;

Amendment 7 #

Proposal for a regulation
Citation 3 a (new)

Having regard to the resolution of the European Parliament of 25 October 2016, with recommendations to the Commission on the establishment of an EU mechanism on democracy, the rule of law and fundamental rights,

Amendment 70 #

Proposal for a regulation
Article 4 – paragraph 1 – point b

(b) where the Commission implements the Union’s budget in shared management pursuant to [point (b) of Article 62] of the Financial Regulation: (1) a suspension of the approval of one or more programmes or an amendment thereof; (2) (3) a reduction of commitments, including through financial corrections or transfers to other spending programmes; (4) (5) an interruption of payment deadlines; (6)deleted a suspension of commitments; a reduction of pre-financing; a suspension of payments.

Amendment 71 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – introductory part

(b) where the Commission implements the Union’s budget in shared management pursuant to [point (b) of Article 62] of the Financial Regulation, in the case of a generalised deficiency as regards the rule of law, save where point ba applies:

Amendment 72 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 1

~~(1) a suspension of the approval of one or more programmes or an amendment thereof;~~deleted

Amendment 73 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 1

(1) a ~~suspens~~modification of the ~~approval of one or more programmes or an amendment thereof~~method to implement the budget from shared to direct management in cooperation with regional and local authorities, where appropriate;

Amendment 74 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 2

~~(2) a suspension of commitments;~~deleted

Amendment 75 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 2

(2) a ~~suspension of commitments;~~ transfer of financial allocations to another programme for the benefit of strengthening the Union values in the Member State concerned.

Amendment 76 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 3

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

Amendment 77 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 3

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

Amendment 78 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 4

~~(4) a reduction of pre-financing;~~deleted

Amendment 79 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 4

~~(4) a reduction of pre-financing;~~deleted

Amendment 8 #

Proposal for a regulation
Citation 5 a (new)

Having regard to the Presidency conclusions of the Copenhagen European Council of 21 and 22 June 1993 ("Copenhagen criteria")

Amendment 80 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 4

~~(4) a reduction of pre-financing;~~deleted

Amendment 81 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 5

~~(5) an interruption of payment deadlines;~~deleted

Amendment 82 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 5

~~(5) an interruption of payment deadlines;~~deleted

Amendment 83 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 6

~~(6) a suspension of payments.~~deleted

Amendment 84 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 6

~~(6) a suspension of payments.~~deleted

Amendment 85 #

Proposal for a regulation
Article 4 – paragraph 1 – point b a (new)

(ba) as far as ESI Funds are concerned, where the Commission implements the Union’s budget in shared management pursuant to [point (b) of Article 62] of the Financial Regulation, the measures defined in the Common Provisions Regulation should apply in the case of a generalised deficiency as regards the rule of law.

Amendment 86 #

Proposal for a regulation
Article 4 – paragraph 2

Amendment 87 #

Proposal for a regulation
Article 4 – paragraph 2

2. 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. Any decision to enforce conditionality should provide serious guarantees, based on impact assessments, to ensure that final beneficiaries of EU funds are not adversely affected.

Amendment 88 #

Proposal for a regulation
Article 4 – paragraph 2

2. ~~Unless the decision adopting the measures provides otherwise, t~~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.

Amendment 89 #

Proposal for a regulation
Article 4 – paragraph 3 a (new)

3a. The scope and level of the suspension of commitments to be imposed shall be proportionate, shall respect the equality of treatment between Member States and shall take into account the economic and social circumstances of the Member State concerned and the impact of the suspension on the economy of the Member State concerned. The impact of suspensions on programmes of critical importance to address rule-of-law conditions shall be a specific factor to be taken into account.

Amendment 9 #

Proposal for a regulation
Citation 5 b (new)

Having regard to the rule of law checklist established by the European Commission for democracy through law ("Venice Commission"), CDL-AD(2016)007,

Amendment 90 #

Proposal for a regulation
Article 5 – paragraph 1

1. Where the Commission finds that it has reasonable grounds to believe that the conditions of Article 3 are fulfilled, it shall ask for an assessment by the independent panel of experts, and send a written notification to thate Member State concerned, setting out the grounds on which it based its finding. The Commission shall also inform the European Parliament and the Council of this notification.

Amendment 91 #

Proposal for a regulation
Article 5 – paragraph 1

1. Where, based on a ruling of the European Court of Justice, the Commission finds th~~at it has~~ere are reasonable grounds to believe that the conditions of Article 3 are fulfilled, it shall send a written notification to thate Member State concerned, setting out the grounds on which it based its findings, but only after first informing Parliament and the Council.

Amendment 92 #

Proposal for a regulation
Article 5 – paragraph 1

Amendment 93 #

Proposal for a regulation
Article 5 – paragraph 1

1. Where the Commission 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 immediately inform the Parliament and the Council of the notification and its contents.

Amendment 94 #

Proposal for a regulation
Article 5 – paragraph 1

1. Where the Commission finds that it has ~~reasonable~~proved and clearly identified 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

Amendment 95 #

Proposal for a regulation
Article 5 – paragraph 1 a (new)

1a. The Commission shall provide all the necessary guarantees to ensure that the same criteria are applied to all Member States, in line with the principles of equal treatment and non- discrimination, in assessing the rule-of- law situation. It shall ensure that the same measures are taken in comparable cases.

Amendment 96 #

Proposal for a regulation
Article 5 – paragraph 1 a (new)

1a. The Commission shall ensure equal treatment by concomitantly adopting similar and non-discriminatory measures applicable to all Member States.

Amendment 97 #

Proposal for a regulation
Article 5 – paragraph 2

2. TWhen assessing whether the conditions of Article 3 are fulfilled, the Commission may take into account all relevant information, including 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. , non-governmental organisations and networks, such as the bodies of the Council of Europe and the European networks of supreme courts and councils for the judiciary. The Commission shall also take into account the criteria used in the context of EU accession negotiations, in particular the chapters on judiciary and fundamental rights (23), justice, freedom and security (24), financial control (32) and taxation (16), as well as the guidelines used in the context of the Cooperation and Verification Mechanism to track the progress of a Member State.

Amendment 98 #

Proposal for a regulation
Article 5 – paragraph 2

2. The Commission may take into account all relevant information, including decisions of the Court of Justice of the European Union, reports of the Court of Auditors, recommendations and decisions of the Commission related to excessive deficit procedures concerning the Member States, and conclusions and recommendations of relevant international organisations.

Amendment 99 #

Proposal for a regulation
Article 5 – paragraph 2

2. The Commission may take into account all relevant information, including decisions of the Court of Justice of the European Union, reports of the Court of Auditors, ~~and~~ conclusions and recommendations of relevant international organisations and expert opinions of the relevant European Union Agencies.

source: 629.516

2018/11/09 BUDG, CONT 192 amendments...

Amendment 100 #

Proposal for a regulation
Recital 13

(13) The possible measures to be adopted in the event of generalised deficiencies and the procedure to be followed to adopt them should be determined. Those measures should include the change of shared management to direct/indirect management, to reallocate funds to the Rights and Values Programme, and ultimately the suspension of payments and of commitments, a reduction of funding under existing commitments, and a prohibition to conclude new commitments with recipients.

Amendment 101 #

Proposal for a regulation
Recital 13

Amendment 102 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Recital 13

(13) The possible measures to be adopted in the event of generalised deficiencies and the procedure to be followed to adopt them should be determined, and an assessment made of the impact they will have on citizens in the Member State concerned. It is important to ensure that measures penalising actions or omissions by the state apparatus do not have an adverse effect on citizens. Those measures should include the suspension of payments and of commitments, a reduction of funding under existing commitments, and a prohibition to conclude new commitments with recipients.

Amendment 103 #

Proposal for a regulation
Recital 13

(13) The possible measures to be adopted in the event of generalised deficiencies and the procedure to be followed to adopt them should be determined. Those measures should include the suspension of payments and of commitments, a reduction of funding under existing commitments, and a prohibition to conclude new commitments with recipients. In the case of ESI funds the measures defined in the Common Provisions Regulation should apply.

Amendment 104 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Recital 14

(14) The principle of proportionality should apply when determining the measures to be adopted, in particular taking into account the seriousness of the situation, the time which has elapsed since the relevant conduct started, its duration and its recurrence, the intention, and the degree of cooperation of the Member State concerned in putting an end to the generalised deficiency as regards the rule of law, and the effects ofeffects of that deficiency on the respective Union funds and how citizens and businesses will be affected. The measures taken should in each case be restricted to those Union actions actually affected by thate deficienc~~y on the respective Union funds~~ies identified.

Amendment 105 #

Proposal for a regulation
Recital 14

Amendment 106 #

Proposal for a regulation
Recital 14

Amendment 107 #

Proposal for a regulation
Recital 14 a (new)

(14 a) The rights of the final beneficiaries should be upheld and guaranteed when measures are executed, unless the final beneficiaries are involved in damaging the Union’s financial interest in any way.

Amendment 108 #

Proposal for a regulation
Recital 15

Amendment 109 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Recital 15

(15) In order to ensure uniform implementation of this Regulation and in view of the importance of the financial effects of measures being imposed pursuant to this Regulation, implementing powers should be conferred on the Council which should act on the basis of a Commission proposal~~. To facilitate the adoption of decisions which are required to protect the financial interests of the Union, reversed qualified majority voting should be us~~ following a preliminary stage in which the Council and the Commission examine with the Member State the alleged deficiencies and the measures the Commission may require to remedy them. To facilitate the adoption of decisions which are required to protect the financial interests of the Union, a unanimous vote should be used. The European Parliament should be consulted before the measures provided for in this Regulation may be adopted.

Amendment 110 #

Proposal for a regulation
Recital 15

Amendment 111 #

Proposal for a regulation
Recital 15

Amendment 112 #

Proposal for a regulation
Recital 15

(15). In order to ensure uniform implementation of this Regulation and in view of the importance of the financial effects of measures being imposed pursuant to this Regulation, implementing powers should be conferred on the Council which should act on the basis of a Commission proposal after consultation of the European Parliament. To facilitate the adoption of decisions which are required to protect the financial interests of the Union, reversed qualified majority voting should be used, based on a report by a group of neutral experts.

Amendment 113 #

Proposal for a regulation
Recital 15 a (new)

(15a) In view of their effect on the Union budget, measures with budgetary impact imposed pursuant to this Regulation should only enter into force after the European Parliament and the Council have approved a transfer in the budget of an amount equivalent to the value of the measures adopted. To facilitate the adoption of decisions which are required to protect the financial interests of the Union, such transfers should be considered to be approved unless, within a set period, the European Parliament or the Council, the latter acting by qualified majority, amend or reject them.

Amendment 114 #

Proposal for a regulation
Recital 15 a (new)

(15a) In order to ensure a swift decision on the measures which are required to protect the financial interests of the Union, provisional application should be made possible in the event of protracted discussions in the Council.

Amendment 115 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Recital 16

(16) Before proposing the adoption of any measure pursuant to this Regulation, the Commission should inform the Member State concerned why it considers that ~~a generalised deficiency regarding the rule of law might exist in that Member Sta~~the principles of separation of state powers and of independence and impartiality in judicial review may have been affected. The Member State should be allowed to submit its observations contradicting the Commission’s view. The Commission and the Council should take those observations into account.

Amendment 116 #

Proposal for a regulation
Recital 16

(16) Before proposing the adoption of any measure pursuant to this Regulation, the Commission should inform the Member State concerned why it considers that a generalised deficiency regarding the ~~rule of law~~Union values might exist in that Member State. The Member State should be allowed to submit its observations. The Commission ~~and the Council~~ should take those observations into account.

Amendment 117 #

Proposal for a regulation
Recital 17

Amendment 118 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Recital 18

~~(18) The Commission should keep the European Parliament informed of any measures proposed and adopted pursuant to this Regulation,~~deleted

Amendment 119 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Article 1 – paragraph 1

This Regulation establishes the rules necessary for the protection of the Union’s budget in the case of generalised deficiencies as regards the ~~rule of la~~principles of separation of state powers and of independence and impartiality in judicial review in the Member States.

Amendment 120 #

Proposal for a regulation
Article 1 – paragraph 1

This Regulation establishes the rules necessary for the protection of the Union’s budget in the case of generalised deficiencies as regards the ~~rule of law~~Union values in the Member States.

Amendment 121 #

Proposal for a regulation
Article 1 – paragraph 1

This Regulation establishes the rules necessary for the protection of the Union’s budget in the case of generalised deficiencies as regards the rule of law in the Member States; infringement procedures can only be launched by the Commission if such concerns relate at the same time to breach of a specific provision of EU law.

Amendment 122 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Article 2 – paragraph 1 – point a

(a) ‘the rule of law’ refers to the Union value enshrined in Article 2 of the Treaty on European Union which includes the principles of legality, implying a transparent, accountable, democratic and pluralistic process for enacting laws; legal certainty; prohibition of arbitrariness of the executive powers; effective judicial protection by independent courts, including of fundamental rights; separation of powers and equality before the law;deleted

Amendment 123 #

Proposal for a regulation
Article 2 – paragraph 1 – point a

Amendment 124 #

Proposal for a regulation
Article 2 – paragraph 1 – point a

(a) 'the rule of law' refers to the Union value enshrined in Article 2 of the Treaty on European Union which includes the principles of legality, implying a transparent, accountable, democratic and pluralistic process for enacting laws; legal certainty; prohibition of arbitrariness of the executive powers; effective judicial protection by independent courts, including of fundamental rights; separation of powers and equality before the law; The rules defining the ‘rule of law’ require: – a pyramid power structure and dissemination to a large number of bodies; – public participation in the exercise of power through judicial control of compliance with the law by State organs and through redress against illegal acts by the authorities; – guarantee of fundamental rights and freedoms of the individual; – limit imposed on each of the three powers by the other two; – political control exercised by elected assembly; – separation of powers within the State; – hierarchical structure of executive and judicial power, allowing for control the existing authority in the exercise thereof.

Amendment 125 #

Proposal for a regulation
Article 2 – paragraph 1 – point a

Amendment 126 #

Proposal for a regulation
Article 2 – paragraph 1 – point b

(b) 'generalised deficiency as regards the ~~rule of law' means a widespread or recurrent~~Union values' means any situation where a systemic threat to the Union values may be established or where the Union values are directly or indirectly undermined in a systemic way either because of the combined impact of practice ors, omissions, or measures or inactions by public authorities ~~which affects the rule of law~~or because of widespread or recurrent practices, omissions, measures or inactions by public authorities resulting in undermining one or several components of the Union values;

Amendment 127 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Article 2 – paragraph 1 – point b

(b) '‘generalised deficiency as regards the ruprinciples of ~~law'~~separation of state powers and of independence and impartiality in judicial review’ means a widespread or recurrent practice or omission, or measure by public authorities which affects the ~~rule of la~~principles of separation of state powers and of independence and impartiality in judicial review;

Amendment 128 #

Proposal for a regulation
Article 2 – paragraph 1 – point b

(b) 'generalised deficiency as regards the rule of law' means a widespread or recurrent practice or omission, or measure by public authorities which affects the ~~rule of law~~values of the respect for human dignity, freedom, democracy, equality, the rule of law and respect of human rights, including the rights of persons belonging to minorities, values that are common to Member States in a society in which pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail;

Amendment 129 #

Anneli JÄÄTTEENMÄKI, Louis MICHEL

Proposal for a regulation
Article 2 – paragraph 1 – point c

(c) 'government entity' means allny public authorit~~ies~~y at all levels of government, including national, regional and local authorities, as well as Member State organisations within the meaning of [point 42 of Article 2] of Regulation (EU, Euratom) No […] (the ‘Financial Regulation’).

Amendment 130 #

Proposal for a regulation
Article 2 a (new)

Article 2a Monitoring The Commission shall continuously monitor and assess the correct implementation of the Union law and the respect of the rule of law.

Amendment 131 #

Proposal for a regulation
Article 2 a (new)

Article 2a Measures 1. Appropriate measures shall be taken where a generalised deficiency as regards the Union values in a Member State affects or risks affecting the proper implementation of the EU budget, in particular the management and control activities, in accordance with the principles of sound financial management and the protection of the financial interests of the Union, and where: (a) the Commission activates the EU Rule of Law Framework; (b) one third of the Member States, the European Parliament or the Commission submit a reasoned proposal to the Council in accordance with Article 7(1) TEU to determine that there is a clear risk of a serious breach by that Member State of the values referred to in Article 2 TEU; (c) one third of the Member States or the Commission submit a reasoned proposal to the European Council in accordance with Article 7(2) TEU to determine the existence of a serious and persistent breach by that Member State of the values referred to in Article 2 TEU. 2. In the assessment of the state of generalised deficiencies as regards the Union values, the Commission shall be assisted by a representative panel of independent experts (Democracy, Rule of Law and Fundamental Rights Expert Panel). The Democracy, Rule of Law and Fundamental Rights Expert Panel shall assess the situation on the basis of a quantitative and qualitative review of the data and information available, including decisions of the Court of Justice of the European Union, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations. 3. The assessment by the Democracy, Rule of Law and Fundamental Rights Expert Panel shall be made public by the Commission, including a justification and the methodology used. Or. en (See amendment relating to Article 3.)

Amendment 132 #

Proposal for a regulation
Article 2 a (new)

Article 2a Generalised deficiencies The following may, in particular, be considered generalised deficiencies as regards the rule of law: (a) endangering the independence of judiciary; (b) failing to prevent, correct and sanction arbitrary or unlawful decisions by public authorities, including by law enforcement authorities, withholding financial and human resources affecting their proper functioning or failing to ensure the absence of conflicts of interests; (c) limiting the availability and effectiveness of legal remedies, including through restrictive procedural rules, lack of implementation of judgments, or limiting the effective investigation, prosecution or sanctioning of breaches of law. Or. en (See amendment relating to Article 3 – paragraph 2.)

Amendment 133 #

Proposal for a regulation
Article 3

1. taken where a generalised deficiency as regards the rule of law in a Member State affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union, in particular: (a) the proper functioning of the authorities of that Member State implementing the Union budget, in particular in the context of public procurement or grant procedures, and when carrying out monitoring and controls; (b) investigation and public prosecution services in relation to the prosecution of fraud, corruption or other breaches of Union law relating to the implementation of the Union budget; (c) independent courts of actions or omissions by the authorities referred to in points (a) and b); (d) fraud, corruption or other breaches of Union law relating to the implementation of the Union budget, and the imposition of effective and dissuasive penalties on recipients by national courts or by administrative authorities; (e) the recovery of funds unduly paid; (f) cooperation with the European Anti-fraud Office and with the European Public Prosecutor’s Office in their investigations or prosecutions pursuant to their respective legal acts and to the principle of loyal cooperation. 2. The following may, in particular, be considered generalised deficiencies as regards the rule of law, (a) endangering the independence of judiciary; (b) failing to prevent, correct and sanction arbitrary or unlawful decisions by public authorities, including by law enforcement authorities, withholding financial and human resources affecting their proper functioning or failing to ensure the absence of conflicts of interests; (c) effectiveness of legal remedies, including through restrictive procedural rules, lack of implementation of judgments, or limiting the effective investigation, prosecution or sanctioning of breaches of law. Article 3 deleted Measures Appropriate measures shall be the proper functioning of the effective judicial review by the prevention and sanctioning of the effective and timely limiting the availability and Or. en (See amendment relating to Article 2 a (new).)

Amendment 134 #

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

1. Appropriate measures ~~shall~~may be taken, by the government entities at the request of the Commission, where a generalised deficiency as regards the rule of law in a Member State affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union, in particular:

Amendment 135 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

1. Appropriate measures shall be taken where a generalised deficiency as regards the ruprinciples of ~~law in a Member State affects or risks affecting the principles of sound financial management or~~separation of state powers and of independence and impartiality in judicial review in a Member State affects the protection of the financial interests of the Union, in particular:

Amendment 136 #

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

1. Appropriate balanced and proportionate measures shall be taken where a generalised deficiency as regards the rule of law in a Member State under the Constitution affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union, in particular:

Amendment 137 #

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

Amendment 138 #

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

1. ~~Appropriate measures~~Measures referred to in Article 4 shall be taken where a generalised deficiency as regards the rule of law in a Member State affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union, in particular:

Amendment 139 #

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

1. ~~Appropriate m~~Measures shall be taken where a generalised deficiency as regards the rule of law in a Member State affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union, in particular:

Amendment 140 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

Amendment 141 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) ensuring the proper functioning of the authorities of that Member State implementing the Union budget, in particular in the context of public procurement or grant procedures, and when carrying out monitoring and controls;

Amendment 142 #

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) ensuring the proper functioning of investigation and public prosecution services in relation to the prosecution of fraud, corruption or other breaches of Union law relating to the implementation of the Union budget;

Amendment 143 #

Proposal for a regulation
Article 3 – paragraph 1 – point c

(c) ~~the~~implementing an effective judicial review by independent courts of actions or omissions by the authorities referred to in points (a) and b);

Amendment 144 #

Proposal for a regulation
Article 3 – paragraph 1 – point d

(d) ensuring the prevention and sanctioning of fraud, corruption or other breaches of Union law relating to the implementation of the Union budget, and the imposition of effective and dissuasive penalties on recipients by national courts or by administrative authorities;

Amendment 145 #

Proposal for a regulation
Article 3 – paragraph 1 – point e

~~(e) the recovery of funds unduly paid;~~deleted

Amendment 146 #

Proposal for a regulation
Article 3 – paragraph 1 – point e

(e) assuring the recovery of funds unduly paid;

Amendment 147 #

Proposal for a regulation
Article 3 – paragraph 1 – point e a (new)

(ea) the prevention and sanctioning of tax evasion and tax competition and the proper functioning of authorities contributing to administrative cooperation in tax matters;

Amendment 148 #

Ingeborg GRÄSSLE

Proposal for a regulation
Article 3 – paragraph 1 – point e a (new)

(ea) the proper functioning of authorities contributing to administrative cooperation in tax matters;

Amendment 149 #

Proposal for a regulation
Article 3 – paragraph 1 – point f

(f) the effective and timely cooperation with the European Anti-fraud Office ~~and with the European Public Prosecutor’s Office in their~~in its investigations or prosecutions pursuant to their respective legal acts and to the principle of loyal cooperation.

Amendment 150 #

Proposal for a regulation
Article 3 – paragraph 1 – point f

(f) the effective and timely cooperation with the European Anti-fraud Office and, subject to the participation of the Member State concerned, with the European Public Prosecutor’s Office in their investigations or prosecutions pursuant to their respective legal acts and to the principle of loyal cooperation.

Amendment 151 #

Proposal for a regulation
Article 3 – paragraph 1 – point f

(f) providing the effective and timely cooperation with the European Anti-fraud Office and with the European Public Prosecutor’s Office in their investigations or prosecutions pursuant to their respective legal acts and to the principle of loyal cooperation.

Amendment 152 #

Proposal for a regulation
Article 3 – paragraph 1 – point f a (new)

(fa) fiscal discipline of Member States, notably the avoidance of excessive government deficits in line with Article 126 TFEU.

Amendment 153 #

Proposal for a regulation
Article 3 – paragraph 2

~~2. The following may, in particular, be consider~~deleted generalised deficiencies as regards the rule of law, (a) judiciary; (b) sanction arbitrary or unlawful decisions by public authorities, including by law enforcement authorities, withholding financial and human resources affecting their proper functioning or failing to ensure the absence of conflicts of interests; (c) effectiveness of legal remedies, including through restrictive procedural rules, lack of implementation of judgments, or limiting the effective investigation, prosecution or sanctioning of breaches of law. dangering the independence of failing to prevent, correct and limiting the availability and Or. en (See amendment relating to Article 2 a (new).)

Amendment 154 #

Jens GEIER, Sylvia-Yvonne KAUFMANN

Proposal for a regulation
Article 3 – paragraph 2 – point c

(c) limiting the availability and effectiveness of legal remedies, including through restrictive procedural rules, lack of implementation of judgments, with particular focus on decisions of the Court of Justice of the European Union deriving from infringement procedures, or limiting the effective investigation, prosecution or sanctioning of breaches of law.

Amendment 155 #

Proposal for a regulation
Article 3 – paragraph 2 – point c

(c) limiting the availability and effectiveness of legal remedies, including through restrictive procedural rules, lack of implementation of judgments, or limiting the effective investigation, prosecution or sanctioning of breaches of law and action which erodes the independence of lawyers and encroaches on safeguards for confidential communication between lawyers and their clients.

Amendment 156 #

Monika HOHLMEIER

(ca) measures interfering with the independence of the attorneyship;

Amendment 157 #

Monika HOHLMEIER

Proposal for a regulation
Article 3 – paragraph 2 – point c b (new)

(cb) measures that weaken the protection of the confidential communication between lawyer and client.

Amendment 158 #

Proposal for a regulation
Article 3 a (new)

Article 3a Democracy, Rule of Law and Fundamental Rights Expert Panel 1. The Democracy, Rule of Law and Fundamental Rights Expert Panel shall be composed of the following members: (a) one independent expert designated by the parliament of each Member State; the members of the expert panel shall be qualified constitutional court or supreme court judges, not currently in active service; (b) ten further experts designated by the European Parliament by a majority of two-thirds of the votes cast, chosen from a list of experts nominated by: (i) the federation of All European Academies (ALLEA); (ii) the European Network of National Human Rights Institutions (ENNHRI); (iii) the Council of Europe (including the Venice Commission, GRECO and the Council of Europe Commissioner for Human Rights); (iv) CEPEJ and the Council of Law and Bar Societies Europe (CCBE); (v) the United Nations (UN), the OSCE and the Organisation for Economic Co-operation and Development (OECD). 2. The composition of the Democracy, Rule of Law and Fundamental Rights Expert Panel shall ensure gender balance.

Amendment 159 #

Proposal for a regulation
Article 4 – title

~~Content of measures~~Measures for the protection of the Union’s budget

Amendment 160 #

Proposal for a regulation
Article 4 – paragraph -1 (new)

-1. In cases referred to in point (a) of Article 2a(1), one or more of the following appropriate measures may be adopted: (a) where the Commission implements the Union’s budget in shared management pursuant to point (b) of Article 62 of the Financial Regulation, a modification of the method to implement the budget from shared to direct management; (b) where the Commission implements the Union’s budget in indirect management pursuant to point (c) of Article 62 of the Financial Regulation, and where a Member State organisation which is responsible for the deficiencies as regards the Union values is involved in the management of the funds: (i) a replacement of the entity implementing the budget for the benefit of strengthening the Union values in the Member State concerned; (ii) a modification of the method to implement the budget from indirect to direct management.

Amendment 161 #

Proposal for a regulation
Article 4 – paragraph -1 a (new)

-1a. In cases referred to in point (b) of Article 2a(1), one or more of the following appropriate measures may be adopted: (a) where the Commission implements the Union’s budget in direct management pursuant to point(a) of Article 62 of the Financial Regulation, and where a government entity is the recipient: (i) a transfer of financial allocations from the programme to any other instrument for the benefit of strengthening the Union values in the Member State concerned; (ii) a replacement of the recipient by another government entity or a different entity for the benefit of strengthening the Union values in the Member State concerned; (b) where the Commission implements the Union’s budget in shared management pursuant to point (b) of Article 62 of the Financial Regulation: (i) a transfer of financial allocations from the programme to another programme for the benefit of strengthening the Union values in the Member State concerned; (ii) measures referred to in point (a) of Article 4(-1); (c) where the Commission implements the Union’s budget in indirect management pursuant to point (c) of Article 62 of the Financial Regulation, and where a Member State organisation which is responsible for the deficiencies as regards the Union values is involved in the management of the funds: (i) a transfer of financial allocations from the programme to another programme for the benefit of strengthening the Union values in the Member State concerned; (ii) measures referred to in point (b) of Article4(-1); (d) where the Commission implements the Union’s budget in indirect management pursuant to points (c) of Article 62 of the Financial Regulation, and where a Member State organisation is the recipient, a transfer of financial allocations from the programme to another programme for the benefit of strengthening the Union values in the Member State concerned.

Amendment 162 #

Proposal for a regulation
Article 4 – paragraph 1 – introductory part

1. OIn cases referred to in point (c) of Article 2a(1), one or more of the following appropriate measures may be adopted

Amendment 163 #

Proposal for a regulation
Article 4 – paragraph 1 – introductory part

1. OWhen the conditions of Article 3 are fulfilled, one or more of the following ~~appropriate~~ measures may be adopted

Amendment 164 #

Proposal for a regulation
Article 4 – paragraph 1 – point a – point -1 (new)

(-1) reallocating payments to the Rights and Values Programme;

Amendment 165 #

Proposal for a regulation
Article 4 – paragraph 1 – point a – point 1

(1) a suspension of payments or of the implementation of the legal commitment or a termination of the legal commitment pursuant to Article [131(3)] of the Financial Regulation for/with the respective government entity;

Amendment 166 #

Proposal for a regulation
Article 4 – paragraph 1 – point a – point 2

(2) a prohibition to enter into new legal commitments for the respective government entity;

Amendment 167 #

Proposal for a regulation
Article 4 – paragraph 1 – point a – point 2 a (new)

(2a) measures referred to in point (a) of Article 4(-1a).

Amendment 168 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – introductory part

(b) where the Commission implements the Union’s budget in shared management pursuant to [point (b) of Article 62] of the Financial Regulation, except for the ESI funds where the measures defined in the Common Provisions Regulation shall apply:

Amendment 169 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point -1 (new)

(-1) taking the funds of one or more programmes into direct or indirect management of the Commission;

Amendment 170 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point -1 a (new)

(-1a) reallocating payments to the Rights and Values Programme;

Amendment 171 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 1

~~(1) a suspension of the approval of one or more programmes or an amendment thereof;~~deleted

Amendment 172 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 1

~~(1) a suspension of the approval of one or more programmes or an amendment thereof;~~deleted

Amendment 173 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 2

~~(2) a suspension of commitments;~~deleted

Amendment 174 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 2

~~(2) a suspension of commitments;~~deleted

Amendment 175 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 2

(2) a suspension of commitments for one program;

Amendment 176 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 3

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

Amendment 177 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 3

(3) a reduction of commitments, for one programme, including through financial corrections or transfers to other spending programmes from the same Member State;

Amendment 178 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 3

(3) a reduction of commitments, restricted to the current year and for the amount of the deficiency detected, including through financial corrections or transfers to other spending programmes;

Amendment 179 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 4

~~(4) a reduction of pre-financing;~~deleted

Amendment 180 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 4

~~(4) a reduction of pre-financing;~~deleted

Amendment 181 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 4

(4) a reduction of pre-financing for one program;

Amendment 182 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 5

(5) an interruption of payment deadlines for one program;

Amendment 183 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 6

~~(6) a suspension of payments.~~deleted

Amendment 184 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 6

(6) a suspension of payments for one program.

Amendment 185 #

Proposal for a regulation
Article 4 – paragraph 1 – point b – point 6 a (new)

(6a) measures referred to in point (b) of Article 4(-1a).

Amendment 186 #

Proposal for a regulation
Article 4 – paragraph 1 – point b a (new)

(ba) where the Commission implements the Union’s budget in indirect management pursuant to points (c) of Article 62 of the Financial Regulation, and where a Member State organisation which is responsible for the deficiencies as regards the Union values is involved in the management of the funds: (i) a suspension of payments or of the implementation of the legal commitment or a termination of the legal commitment pursuant to Article 131(3) of the Financial Regulation; (ii) a prohibition to enter into new legal commitments; (iii) measures referred to in point (c) of Article 4(-1a).

Amendment 187 #

Proposal for a regulation
Article 4 – paragraph 1 – point b b (new)

(bb) where the Commission implements the Union’s budget in indirect management pursuant to points (c) of Article 62 of the Financial Regulation, and where a Member State organisation is the recipient: (i) a suspension of payments or of the implementation of the legal commitment or a termination of the legal commitment pursuant to Article 131(3) of the Financial Regulation; (ii) a prohibition to enter into new legal commitments; (iii) measures referred to in point (d) of Article 4(-1a).

Amendment 188 #

Proposal for a regulation
Article 4 – paragraph 2

Amendment 189 #

Proposal for a regulation
Article 4 – paragraph 2

2. ~~Unless the decision adopting the measures provides otherwise, the imposition of appropriate measures~~The imposition of the measures referred to in paragraph 1 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. Article 68, paragraph 1, point b of Regulation (EU, Euratom) No XXXX (Common Provisions Regulation) shall not apply.

Amendment 190 #

Proposal for a regulation
Article 4 – paragraph 2

2. 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. Any decision to enforce conditionality shall provide serious guarantees, based on impact assessments, to ensure that final beneficiaries of EU funds are not adversely affected.

Amendment 191 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Article 4 – paragraph 3

3. The measures taken shall be ~~proportiona~~restricted to the ~~nature, gravity and scope of the generalised deficiency as regards the rule of law. They shall, insofar as possible,~~extent of the deficiency identified. They shall only target the Union actions affected or potentially affected by that deficiency.

Amendment 192 #

Proposal for a regulation
Article 4 – paragraph 3

Amendment 193 #

Proposal for a regulation
Article 4 – paragraph 3

3. 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.

Amendment 194 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Article 4 – paragraph 3 a (new)

3a. Before taking such measures, the Commission shall conduct a mandatory assessment of the impact of the measures on citizens, businesses and civil society in the Member State concerned.

Amendment 195 #

Proposal for a regulation
Article 5 – paragraph -1 (new)

-1. The Commission shall establish a risk assessment framework that assesses the state of the rule of law in all Member States, based on criteria laid down in Article 3. The Commission shall prepare and publish these assessments annually.

Amendment 196 #

Proposal for a regulation
Article 5 – paragraph -1 a (new)

-1a. The Commission in its risk assessment framework shall implement a system of continuously assessing the presence of corruption risks in the public procurement processes involving EU funds by analysing data on individual procurement processes and contracts, and by monitoring the ownership structure of recurrent contract winners with a large share of total contract value, with the aim of detecting the channelling of EU funds to closed networks, if it occurs, and, in the case of Member States not participating in the European Public Prosecutor’s Office, a system of regularly monitoring the follow-up to OLAF’s recommendations made to the national prosecutorial authorities.

Amendment 197 #

Proposal for a regulation
Article 5 – paragraph 1

1. Where the Commission 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.

Amendment 198 #

Proposal for a regulation
Article 5 – paragraph 1 a (new)

1a. If the European Parliament considers it necessary it may initiate the action of the European Commission set out in paragraph 1.

Amendment 199 #

Proposal for a regulation
Article 5 – paragraph 1 a (new)

1a. The Commission shall ensure equal treatment by concomitantly adopting similar and non-discriminatory measures applicable to all Member States.

Amendment 200 #

Proposal for a regulation
Article 5 – paragraph 2

2. TBefore resorting to a written notification pursuant to paragraph 1 the Commission ~~may~~shall take into account all relevant information, including decisions of the Court of Justice of the European Union, reports of the Court of Auditors~~, and conclusions and recommendations of relevant international organisations.~~ . The Commission shall take into account in particular: (i) the Venice Commission’s Rule of Law Checklist; (ii) the Council of Europe Recommendation CM/Rec (2010)12 ‘Judges: independence, efficiency and responsibilities’; (iii) the Venice Commission Report on the Independence of the Judicial System Part I: the Independence of Judges (CDL- AD(2010)004); (iv) the Venice Commission Report on Part II: the Prosecution Service (CDL- AD(2010)040); (v) the relevant evaluation and compliance reports of the Group of States against Corruption (GRECO); (vi) the relevant anti-corruption recommendations of the European Semester; (vii) the relevant findings of the EU Justice Scoreboard; (viii) the reports and recommendations of OLAF. The Commission may take into account: (i) the conclusions and recommendations of relevant international organisations; (ii) the studies of the academia and other scientific institutions; (iii) the findings of relevant non- governmental organisations.

Amendment 201 #

Proposal for a regulation
Article 5 – paragraph 2

Amendment 202 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Article 5 – paragraph 2

2. The Commission ~~may~~shall take into account ~~all relevant information, including~~ decisions of the Court of Justice of the European Union, and reports of the Court of Auditors~~, and conclusions and recommendations of relevant international organisations~~.

Amendment 203 #

Proposal for a regulation
Article 5 – paragraph 2

2. The Commission ~~may~~shall take into account ~~all relevant information, including~~ decisions of the Court of Justice of the European Union, as well as reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations.

Amendment 204 #

Proposal for a regulation
Article 5 – paragraph 2

2. The Commission may take into account all relevant information, including decisions of the Court of Justice of the European Union, reports of the Court of Auditors, recommendations and decisions of the Commission related to procedures for excessive deficit of Member States, and conclusions and recommendations of relevant international organisations.

Amendment 205 #

Proposal for a regulation
Article 5 – paragraph 3

3. The Commission ~~may~~shall request ~~any~~from the Member State concerned additional information required for its assessment, ~~both before and after having made a finding pursuant to~~prior to notification of a finding referred to in paragraph 1.

Amendment 206 #

Proposal for a regulation
Article 5 – paragraph 4

5. The Commission shall hear the Member State concerned and 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~~previously, as well as the results of the impact assessment conducted pursuant to Article 4(3a), when deciding whether or not to submit a proposal for a decision on the appropriate measures.

Amendment 208 #

Proposal for a regulation
Article 5 – paragraph 5

5. 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 a decision on ~~the appropriate measures~~any of the measures referred to in Article 4.

Amendment 209 #

Proposal for a regulation
Article 5 – paragraph 5 a (new)

5a. Where the appropriate measures decided by the Commission have an impact on the budgetary allocations, the Commission shall submit to the European Parliament and to the Council a proposal to transfer the amount equivalent to the value of the measures.

Amendment 210 #

Proposal for a regulation
Article 5 – paragraph 6

6. Where the Commission considers that the generalised deficiency as regards the ~~rule of law~~Union values is established, it shall ~~submit~~adopt a decision on the a pprop~~osal for an implementing act on the appropriate measures to the Council.~~riate measures by means of an implementing act. The Commission shall publish its proposal in the Official Journal including the justification and the methodology used in the procedure

Amendment 211 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Article 5 – paragraph 6

6. Where the Commission considers that the generalised deficiency as regards the ~~rule of la~~principles of separation of state powers and of independence and impartiality in judicial review is established, it shall submit a proposal for an implementing act on the appropriate measures to the Council.

Amendment 212 #

Proposal for a regulation
Article 5 – paragraph 6

6. Where the Commission, after a period of evaluation of the effects of the application of the remedial measures, considers that the generalised deficiency as regards the rule of law is established, it shall submit a proposal for an implementing act on the appropriate measures to the Council.

Amendment 213 #

Proposal for a regulation
Article 5 – paragraph 6

6. 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 on the appropriate measures to the Council and Parliament.

Amendment 214 #

Proposal for a regulation
Article 5 – paragraph 6

6. 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 on the ~~appropriate measures~~measures referred to in Article 4 to the Council.

Amendment 215 #

Proposal for a regulation
Article 5 – paragraph 6 a (new)

6a. The Commission shall publish its proposal in the Official Journal including the justification and the methodology used in the procedure.

Amendment 216 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Article 5 – paragraph 6 a (new)

6a. The Council, in agreement with the Commission, shall open a preliminary stage in which the Commission shall examine with the Member State the alleged deficiencies and the measures the Commission may require to remedy them. The preliminary stage may not last for less than three months. Should the Council decide by simple majority that the Member State concerned has in the meantime remedied the deficiencies identified, the implementing act shall lapse automatically.

Amendment 217 #

Proposal for a regulation
Article 5 – paragraph 6 a (new)

6a. At the same time as it adopts its proposal for an implementing act, as referred to in paragraph 6 of this Article, the Commission shall 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.

Amendment 218 #

Proposal for a regulation
Article 5 – paragraph 6 a (new)

6a. Where the appropriate measures decided by the Commission have an impact on the budgetary allocations, the Commission shall submit to the European Parliament and to the Council a proposal to transfer the amount equivalent to the value of the measures.

Amendment 219 #

Proposal for a regulation
Article 5 – paragraph 6 b (new)

6b. 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.

Amendment 220 #

Proposal for a regulation
Article 5 – paragraph 7

Amendment 221 #

Proposal for a regulation
Article 5 – paragraph 7

Amendment 222 #

Proposal for a regulation
Article 5 – paragraph 7

Amendment 223 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Article 5 – paragraph 7

7. The ~~decision shall be deemed to have been adopted by the Council, unless it~~Council shall decides, by ~~qualified majority, to reject~~unanimous vote on the Commission proposal within one month of ~~its adoption by the Commission~~the end of the preliminary stage.

Amendment 224 #

Proposal for a regulation
Article 5 – paragraph 7

7. The decision shall be deemed to have been adopted or rejected by the Council, ~~unless it decides, by qualified majority, to reject the Commission proposal~~acting unanimously, as for other measures imposing sanctions on Member States under the TFEU, within one month of its adoption by the Commission.

Amendment 225 #

Proposal for a regulation
Article 5 – paragraph 7

7. The decision shall be ~~deemed to have been~~ adopted by the Council, ~~unless it decides, by qualified majority, to reject the Commissi~~by unanimity with the non- p~~roposal within one month of its adoption by the Commission~~articipation of the Member State concerned.

Amendment 226 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Article 5 – paragraph 7 a (new)

7a. The European Parliament shall adopt the proposal under the consent procedure.

Amendment 227 #

Proposal for a regulation
Article 5 – paragraph 8

~~8. The Council, acting by a qualified majority, may amend the Commission’s proposal and adopt the amended text as a Council decision.~~deleted

Amendment 228 #

Proposal for a regulation
Article 5 – paragraph 8

8. The Council, acting ~~by a qualified majorit~~unanimously, may amend the Commission’s proposal and adopt the amended text as a Council decision.

Amendment 229 #

Proposal for a regulation
Article 5 – paragraph 8

8. The Council, acting by ~~a qualified majority,~~unanimity with the non-participation of the Member State concerned may amend the Commission’s proposal and adopt the amended text as a Council decision.

Amendment 230 #

Proposal for a regulation
Article 5 – paragraph 8

8. The Council, acting by a qualified majority, may adopt the proposal of the Commission or may amend the Commission’s proposal and adopt the amended text as a Council decision.

Amendment 231 #

Proposal for a regulation
Article 5 – paragraph 8

8. The Council, acting by a qualified majority, may a~~mend~~dopt the Commission’s proposal ~~and adopt the amended text~~, amended or otherwise, as a Council decision.

Amendment 232 #

Proposal for a regulation
Article 5 – paragraph 8 a (new)

8a. Where the Council reaches no decision within two months after the submission of the proposal by the Commission referred to in paragraph 6 of this Article, and until such time as the Council has decided, the Commission shall be empowered to apply the proposed measures provisionally.

Amendment 233 #

Proposal for a regulation
Article 6 – paragraph 1

Amendment 234 #

Proposal for a regulation
Article 6 – paragraph 1

1. The Member State concerned may, at any time, submit to the Commission evidence to show that the generalised deficiency as regards the rule of law has sufficiently been remedied or has ceased to exist.

Amendment 235 #

Proposal for a regulation
Article 6 – paragraph 2

2. TAt the request of the Member State concerned or on its own initiative, the Commission shall assess the situation in theat Member State concerned, assisted by the Democracy, Rule of Law and Fundamental Rights Expert Panel. Once the generalised deficiencies as regards the ~~rule of law~~Union values which on the grounds of which the appropriate measures were adopted cease to exist in full or in part, the Commission shall ~~submit to the Council a proposal for~~adopt a decision lifting those measures in full or in part. ~~The procedure set out i~~At the same time as it adopts its decision, the Commission shall simultaneously submit to the European pPar~~agraphs 2, 4, 5, 6 and 7 of~~liament and to the Council a proposal to transfer the amount equivalent to the value of the measures. The procedure set out in Article 5 shall apply.

Amendment 236 #

Proposal for a regulation
Article 6 – paragraph 2

2. The Commission shall assess, by one month from the date of receiving the Member State request, the situation in the Member State concerned. Once the generalised deficiencies as regards the rule of law which on the grounds of which the appropriate measures were adopted cease to exist in full or in part, the Commission shall submit to the Council a proposal for a decision lifting those measures in full or in part. The procedure set out in paragraphs 2~~, 4, 5, 6~~ and 78 of Article 5 shall apply.

Amendment 237 #

Proposal for a regulation
Article 6 – paragraph 2

~~Information of the European Parliament The Commission shall immediately inform the European Parliament of any measures proposed or adopted pursuant to Articles 4 and 5~~Article 7 deleted

Amendment 239 #

Proposal for a regulation
Article 7 – title

~~Information~~Role of the European Parliament

Amendment 240 #

Proposal for a regulation
Article 7 – paragraph 1

The Commission shall immediately inform the European Parliament of any measures proposed or adopted pursuant to Articles 4, 5 and 56

Amendment 241 #

Proposal for a regulation
Article 7 – paragraph 1 a (new)

In order to enhance the dialogue between the Union institutions, in particular the European Parliament, the Council and the Commission, and to ensure greater transparency and accountability, the competent committee of the European Parliament may invite the President of the Council and the Commission and, where appropriate, the President of the European Council to appear before the committee to discuss decisions taken pursuant to this Regulation. The competent committee of the European Parliament may offer the opportunity to the Member State concerned by such decisions to participate in an exchange of views.

Amendment 242 #

Proposal for a regulation
Article 8 – paragraph 1

This 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.~~

Amendment 49 #

Stanisław ŻÓŁTEK, André ELISSEN, Marco ZANNI

Proposal for a regulation
–

The European Parliament rejects the Commission proposal.

Amendment 50 #

Proposal for a regulation
–

The European Parliament rejects the Commission proposal.

Amendment 51 #

Proposal for a regulation
Title 1

Amendment 52 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Recital 1

(1) ~~The rule of law is one of the essential values upon which~~Respect for certain constitutional principles common to the legal systems of the Member States is important to ensure sound management of the Union i’s f~~ounded. As recalled by Article 2 of the Treaty on European Union, these values are common to the Member States~~inancial interests. Respect for the principle of separation of state powers, and supervision by an independent and impartial court able to ensure effective judicial protection, are particularly important.

Amendment 53 #

Proposal for a regulation
Recital 1

Amendment 54 #

Proposal for a regulation
Recital 1

(1) TNotwithstanding that bad law has been and continues to be written, the rule of law is meant to be one of the essential values upon which the Union is founded. As recalled by Article 2 of the Treaty on European Union, these values are common to the Member States.

Amendment 55 #

Proposal for a regulation
Recital 1 a (new)

(1a) However, doctrinaire assessments of the rule of law, far from uniform, are, on the contrary, as diverse as they are surprising, with frequent inconsistencies between Member States. The rule of law must be based on the assumption of a clear and well-articulated hierarchy of rules, each with its specific place in the constitutional order, with precise laws that delimit exactly the actions of the implementing bodies empowered to monitor compliance with individual and general rules.

Amendment 56 #

Proposal for a regulation
Recital 1 a (new)

(1a) In accordance with Article 7 TEU, the Union has the possibility to act in cases of there being a clear risk of a serious breach by a Member State of the values referred to in Article 2 TEU. Member States, Union institutions, bodies, office and agencies, as well as candidate countries are obliged to respect, protect and promote those principles and values.

Amendment 57 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Recital 2

(2) The rule of law requires that all public powers act within the constraints set out by law, in accordance with the values of democracy and fundamental rights, and under the control of independent and impartial courts. It requires, in particular, that the principles of legality7 , legal certainty8 , prohibition of arbitrariness of the executive powers 9 , separation of powers10 and effective judicial protection by independent courts11 are respected12 . _________________ 7 Judgment of the Court of Justice of 29 April 2004, CAS Succhi di Frutta, C- 496/99 PECLI:EU:C:2004:236, paragraph 63. 8 Judgment of the Court of Justice of 12 November 1981, Amministrazione delle finanze dello Stato v Srl Meridionale Industria Salumi and others Ditta Italo Orlandi & Figlio and Ditta Vincenzo Divella v Amministrazione delle finanze dello Stato. Joined cases 212 to 217/80, ECLI:EU:C:1981:270, paragraph 10. 9 Judgment of the Court of Justice of 21 September 1989, Hoechst, Joined cases 46/87 and 227/88, ECLI:EU:C:1989:337, paragraph 19. 10 Judgment of the Court of Justice of 10 November 2016, Kovalkovas, C-477/16, ECLI:EU:C:2016:861, paragraph 36; Judgment of the Court of Justice of 10 November 2016, PPU Poltorak, C-452/16, ECLI:EU:C:2016:858, paragraph 35; and Judgment of the Court of Justice of 22 December 2010, DEB,C-279/09, ECLI:EU:C:2010:811, paragraph 58. 11 Judgment of the Court of Justice of 27 February 2018, Associação Sindical dos Juízes Portugueses v Tribunal de Contas C-64/16, ECLI:EU:C:2018:117, paragraphs 31, 40-41. 12 Communication from the Commission "A new EU Framework to strengthen the Rule of Law", COM(2014) 158 final, Annex I.deleted

Amendment 58 #

Proposal for a regulation
Recital 2

Amendment 59 #

Proposal for a regulation
Recital 2

(2) The rule of law requires that all public powers - including representatives of institutions such as the European Central Bank - act within the constraints set out by law, in accordance with the values of democracy and fundamental rights, and under the control of independent and impartial courts. It requires, in particular, that the principles of legality7 , of legal certainty8 , of the primacy of law over even international standards, of prohibition of arbitrariness of the executive powers9 , of separation of powers10 , and of effective judicial protection by independent courts11 are respected12 . _________________ 7 Judgment of the Court of Justice of 29 April 2004, CAS Succhi di Frutta, C- 496/99 PECLI:EU:C:2004:236, paragraph 63. 8 Judgment of the Court of Justice of 12 November 1981, Amministrazione delle finanze dello Stato v Srl Meridionale Industria Salumi and others Ditta Italo Orlandi & Figlio and Ditta Vincenzo Divella v Amministrazione delle finanze dello Stato. Joined cases 212 to 217/80, ECLI:EU:C:1981:270, paragraph 10. 9 Judgment of the Court of Justice of 21 September 1989, Hoechst, Joined cases 46/87 and 227/88, ECLI:EU:C:1989:337, paragraph 19. 10 Judgment of the Court of Justice of 10 November 2016, Kovalkovas, C-477/16, ECLI:EU:C:2016:861, paragraph 36; Judgment of the Court of Justice of 10 November 2016, PPU Poltorak, C-452/16, ECLI:EU:C:2016:858, paragraph 35; and Judgment of the Court of Justice of 22 December 2010, DEB,C-279/09, ECLI:EU:C:2010:811, paragraph 58. 11 Judgment of the Court of Justice of 27 February 2018, Associação Sindical dos Juízes Portugueses v Tribunal de Contas C- 64/16, ECLI:EU:C:2018:117, paragraphs 31, 40-41. 12 Communication from the Commission "A new EU Framework to strengthen the Rule of Law", COM(2014) 158 final, Annex I.

Amendment 60 #

Proposal for a regulation
Recital 2

~~(2)~~2. The rule of law requires that all public powers act within the constraints set out by law, in accordance with the Constitution of each Member State, with the values of democracy and fundamental rights, and under the control of independent and impartial courts. It requires, in particular, that the principles of legality7 , legal certainty8 , prohibition of arbitrariness of the executive powers9 , separation of powers10, and effective judicial protection11 by independent courts are respected12 . _________________ 7 Judgment of the Court of Justice of 29 April 2004, CAS Succhi di Frutta, C- 496/99 PECLI:EU:C:2004:236, paragraph 63. 8 Judgment of the Court of Justice of 12 November 1981, Amministrazione delle finanze dello Stato v Srl Meridionale Industria Salumi and others Ditta Italo Orlandi & Figlio and Ditta Vincenzo Divella v Amministrazione delle finanze dello Stato. Joined cases 212 to 217/80, ECLI:EU:C:1981:270, paragraph 10. 9 Judgment of the Court of Justice of 21 September 1989, Hoechst, Joined cases 46/87 and 227/88, ECLI:EU:C:1989:337, paragraph 19. 10 Judgment of the Court of Justice of 10 November 2016, Kovalkovas, C-477/16, ECLI:EU:C:2016:861, paragraph 36; Judgment of the Court of Justice of 10 November 2016, PPU Poltorak, C-452/16, ECLI:EU:C:2016:858, paragraph 35; and Judgment of the Court of Justice of 22 December 2010, DEB,C-279/09, ECLI:EU:C:2010:811, paragraph 58. 11 Judgment of the Court of Justice of 27 February 2018, Associação Sindical dos Juízes Portugueses v Tribunal de Contas C- 64/16, ECLI:EU:C:2018:117, paragraphs 31, 40-41. 12 Communication from the Commission "A new EU Framework to strengthen the Rule of Law", COM(2014) 158 final, Annex I.

Amendment 61 #

Proposal for a regulation
Recital 2

(2) The rule of law requires that all public powers act within the constraints set out by law, in accordance with the values of democracy and fundamental rights, and under the control of independent ~~and~~, impartial and effective courts. It requires, in particular, that the principles of legality7 , legal certainty8 , prohibition of arbitrariness of the executive powers9 , separation of powers10 , and effective judicial protection by independent courts11 are respected12 . _________________ 7 Judgment of the Court of Justice of 29 April 2004, CAS Succhi di Frutta, C- 496/99 PECLI:EU:C:2004:236, paragraph 63. 8 Judgment of the Court of Justice of 12 November 1981, Amministrazione delle finanze dello Stato v Srl Meridionale Industria Salumi and others Ditta Italo Orlandi & Figlio and Ditta Vincenzo Divella v Amministrazione delle finanze dello Stato. Joined cases 212 to 217/80, ECLI:EU:C:1981:270, paragraph 10. 9 Judgment of the Court of Justice of 21 September 1989, Hoechst, Joined cases 46/87 and 227/88, ECLI:EU:C:1989:337, paragraph 19. 10 Judgment of the Court of Justice of 10 November 2016, Kovalkovas, C-477/16, ECLI:EU:C:2016:861, paragraph 36; Judgment of the Court of Justice of 10 November 2016, PPU Poltorak, C-452/16, ECLI:EU:C:2016:858, paragraph 35; and Judgment of the Court of Justice of 22 December 2010, DEB,C-279/09, ECLI:EU:C:2010:811, paragraph 58. 11 Judgment of the Court of Justice of 27 February 2018, Associação Sindical dos Juízes Portugueses v Tribunal de Contas C- 64/16, ECLI:EU:C:2018:117, paragraphs 31, 40-41. 12 Communication from the Commission "A new EU Framework to strengthen the Rule of Law", COM(2014) 158 final, Annex I.

Amendment 62 #

(2a) The rule of law is based on the existence of a minimum body of conditions of which we can identify the following: – autonomy of the law; – predictability; – separation of powers within the State; – constitutional power structure; – promotion of human rights; – benevolent, open and cooperative attitude on the part of the State towards civil society; – principle of separation of powers within the State upheld; – real and genuine democracy; – institutionalised and guaranteed human and civil rights; – a coherent and hierarchical legal order; – a system of internal regulation of public authorities through political, administrative hierarchical and judicial control; – control of the constitutionality of laws; – unrestricted access to justice and organisation of legal proceedings at several instances; – control of the constitutionality of laws; – control of legality of activities of public administration; – independent judiciary: – existence of the institution of ombudsman.

Amendment 63 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Recital 3

Amendment 64 #

Proposal for a regulation
Recital 3

Amendment 65 #

Proposal for a regulation
Recital 3

(3) The rule of law is a prerequisite for the protection of the other fundamental values on which the Union is founded, such as freedom, democracy, equality and respect for human rights. Respect for the rule of law is intrinsically linked to respect for democracy and for fundamental rights: there can be no democracy and respect for fundamental rights without respect for the rule of law and vice versa. This applies particularly where a Member State has elected a sovereign government with a democratic mandate with which the senior officials of the various European Union institutions may not agree.

Amendment 66 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Recital 4

(4) Whenever the Member States implement the Union’s budget, and whatever method of implementation they use, respect for the ~~rule of law~~aforementioned common constitutional principles is an essential precondition to comply with the ~~principles of~~ sound financial management ~~enshrined~~referred to in Article 317 of the Treaty on the Functioning of the European Union.

Amendment 67 #

Proposal for a regulation
Recital 4

Amendment 68 #

Proposal for a regulation
Recital 4

(4) Whenever the Member States implement the Union’s budget, and whatever method of implementation they use, respect for the rule of law is an essential precondition to comply with the principles of sound financial management enshrined in Article 317 of the Treaty on the Functioning of the European Union. In this regard, and whether implementing their own or the Union's budget, Member States with a democratic mandate with which senior officials of the various European Union institutions do not agree should not be prevented by any of those institutions from carrying out that mandate.

Amendment 69 #

Proposal for a regulation
Recital 5

Amendment 70 #

Proposal for a regulation
Recital 5

(5) Sound financial management can only be ensured by the Member States if public authorities act in accordance with the law, and if breaches thereof are effectively pursued by investigative and prosecution services, and if decisions of public authorities can be subject to effective judicial review by independent courts and by the Court of Justice of the European Union. This also extends to breaches of the law by the Union's own institutions, such as those which may have occurred in the ECB's dealings with Greece and the elected government led by Syriza.

Amendment 71 #

Proposal for a regulation
Recital 6

Amendment 72 #

Proposal for a regulation
Recital 7

Amendment 73 #

Proposal for a regulation
Recital 7

(7) The independence of the judiciary presupposes, in particular, that the body concerned is able to exercise its judicial functions wholly autonomously, without being subject to any hierarchical constraint or subordinated to any other body, and without taking orders or instructions from any source whatsoever, and that it is thus protected against external interventions or pressure liable to impair the independent judgment of its members and to influence their decisions. The guarantees of independence and impartiality require rules, particularly as regards the composition of the body and the appointment, length of service and the grounds for abstention, rejection and dismissal of its members, in order to dismiss any reasonable doubt in the minds of individuals as to the imperviousness of that body to external factors and its neutrality with respect to the interests before it.

Amendment 74 #

Proposal for a regulation
Recital 7 a (new)

(7a) Respect for the rule of law is indispensable for the protection of all the fundamental values listed in Article 2 TEU. It is also an essential condition for the observance of all rights and obligations deriving from the Treaties and international law; respect for the rule of law is a prerequisite for EU membership.

Amendment 75 #

Proposal for a regulation
Recital 7 a (new)

(7a) The independence of the prosecution and the judiciary comprises both the formal (de jure) and actual (de facto) independence of the prosecution and the judiciary and the individual prosecutors and judges.

Amendment 76 #

Proposal for a regulation
Recital 8

Amendment 77 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Recital 8

(8) Respect for the ~~rule of law~~se common constitutional principles is not only important for citizens of the Union, but also for business initiatives, innovation, investment and the proper functioning of the internal market, which will flourish most where a solid legal and institutional framework is in place.

Amendment 78 #

Proposal for a regulation
Recital 8

(8) Respect for the rule of law is not only important for citizens of the Union, but also for business initiatives, innovation, investment, economic, social and territorial cohesion and the proper functioning of the internal market, which will flourish most where a solid legal and institutional framework is in place.

Amendment 79 #

Proposal for a regulation
Recital 8 a (new)

(8a) Social and fiscal dumping harm fair competition and endanger the financial interests of the Union. Therefore it needs to be prevented by the Member States.

Amendment 80 #

Proposal for a regulation
Recital 8 b (new)

(8b) Lack of transparency, arbitrary discrimination, distortion of competition and an uneven playing field within and outside the internal market, impact on the integrity of the single market and on the fairness, stability and legitimacy of the tax system, increased economic inequalities, unfair competition between states, social dissatisfaction, mistrust and democratic deficit are some of the negative effects of harmful tax practices.

Amendment 81 #

Proposal for a regulation
Recital 9

(9) Article 19 TEU, which gives concrete expression to the value of the rule of law stated in Article 2 TEU, requires the Member States to provide effective judicial protection in the fields covered by Union law, including those relating to the implementation of the Union’s budget. The very existence of effective judicial review designed to ensure compliance with Union law is the essence of the rule of law and requires independent courts13 . Maintaining the independence of the courts is essential, as confirmed by the second subparagraph of Article 47 of the Charter of Fundamental Rights of the European Union14 . This is true, in particular, for the judicial review of the validity of the measures, contracts or other instruments giving rise to public expenditure or debts, inter alia in the context of public procurement procedures which may also be brought before the courts. _________________ 13 Case C-64/16, para 32-36. 14 Case C-64/16, para 40-41.deleted

Amendment 82 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

(9) Article 19 TEU~~, which gives concrete expression to the value of the rule of law stated in Article 2 TEU,~~ requires the Member States to provide effective judicial protection in the fields covered by Union law, including those relating to the implementation of the Union’s budget. ~~The very existence of effective judicial review designed to ensure compliance with Union law is the essence of the rule of law and requires independent courts13.~~ Maintaining the independence of the courts is essential, as confirmed by the second subparagraph of Article 47 of the Charter of Fundamental Rights of the European Union14. This is true, in particular, for the judicial review of the validity of the measures, contracts or other instruments giving rise to public expenditure or debts, inter alia in the context of public procurement procedures which may also be brought before the courts. ~~_________________ 13 14~~Case C-64/16, para 32-36. Case C-64/16, para 40-41.

Amendment 83 #

Proposal for a regulation
Recital 10

Amendment 84 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Recital 10

(10) There is hence a clear relationship between respect for the ~~rule of la~~principles of separation of state powers and of independence and impartiality in judicial review and an efficient implementation of the Union budget in accordance with the principles of sound financial management.

Amendment 85 #

Proposal for a regulation
Recital 11

(11) Generalised deficiencies in the Member States as regards the ~~rule of law which affect in particular the proper functioning of public authorities and effective judicial review,~~Union values can seriously harm the financial interests of the Union.

Amendment 86 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Recital 11

(11) Generalised deficiencies ~~in the Member States as regards the rule of law which affect in particular~~as regards the proper functioning of public authorities and effective judicial review, can seriously harm the financial interests of the Union.

Amendment 87 #

Anneli JÄÄTTEENMÄKI, Sophia IN 'T VELD, Louis MICHEL

Proposal for a regulation
Recital 11 a (new)

(11a) The scale of tax evasion and avoidance is estimated by the Commission to be up to EUR 1 trillion a year. The negative impacts of such practices on the Member States' and Union's budgets and on citizens are evident and could undermine trust in democracy.

Amendment 88 #

Proposal for a regulation
Recital 11 a (new)

(11a) The Commission should be able to continuously monitor the state of the rule of law in the Member States and an EU mechanism on democracy, the rule of law and fundamental rights could be set up as requested by the European Parliament in its resolution of 25 October 20161a. _________________ 1a European Parliament resolution of 25 October 2016 with recommendations to the Commission on the establishment of an EU mechanism on democracy, the rule of law and fundamental rights (2015/2254(INL)), OJ C 215,19.6.2018, p. 162–177

Amendment 89 #

Proposal for a regulation
Recital 11 b (new)

(11b) Member States must comply with European competition law and ensure that tax legislation is compatible with the principles of the internal market and does not create distortion of competition.

Amendment 90 #

Proposal for a regulation
Recital 11 c (new)

(11c) Corporate tax avoidance has a direct impact on national and EU budgets and on the breakdown of the tax effort between categories of tax payers as well as between economic factors.

Amendment 91 #

Proposal for a regulation
Recital 11 d (new)

(11d) Member States should fully apply the principle of sincere cooperation in matters of tax competition.

Amendment 92 #

Proposal for a regulation
Recital 11 e (new)

(11e) The Commission as guardian of the Treaties should ensure that EU law and the principle of sincere cooperation between Member States are fully complied with.

Amendment 93 #

Proposal for a regulation
Recital 11 f (new)

(11f) Assessing and monitoring Member States' tax policies at Union level would ensure that no new harmful tax measures are implemented in Member States. Monitoring compliance of Member States, their jurisdictions, regions or other administrative structures with the common Union list of non-cooperative jurisdictions would safeguard the single market and ensure its proper and coherent functioning.

Amendment 94 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Recital 12

(12) The identification of a generalised deficiency requires a qualitative and quantitative assessment by the Commission. That assessment cshould be based on the ~~information from all available sources and recognized institutions, including~~ judgments of the Court of Justice of the European Union, and reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations and networks, such as the bodies of the Council of Europe and the European networks of supreme courts and councils for the judiciary.

Amendment 95 #

Proposal for a regulation
Recital 12

(12) The identification of a generalised deficiency requires a qualitative assessment by the Commission. ~~That assessment could be based on~~In order to provide an objective and systematic assessment, the Commission should regularly publish an assessment of threats to the rule of law, including risks of systemic corruption, in each Member State based on a set of indicators and independent reports, including the information from all available sources and recognized institutions, including judgments of the Court of Justice of the European Union, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations and networks, such as the bodies of the Council of Europe and the European networks of supreme courts and councils for the judiciary.

Amendment 96 #

Proposal for a regulation
Recital 12

Amendment 97 #

Proposal for a regulation
Recital 12 a (new)

(12a) The Commission in its analysis of risks of systemic corruption in each Member State should include the following set of indicators: avoiding the publication of calls for tenders in the official public procurement journal, leaving little time for bidders to submit, changing the technical criteria of eligibility after publication, overly complex eligibility criteria (proxy of tailoring the conditions to a single company), use of invitation tenders, use of hard-to-quantify evaluation criteria (increasing room for discretion) with large weight, extremely short decision time (suggesting premeditation) or excessively long decision time due to legal challenge, single bid received on an otherwise competitive market, recurrent contract award to the same. The data should be received from the analysis of big data obtained from individual public procurement procedures and contract using data mining techniques.

Amendment 98 #

Laura AGEA, Laura FERRARA, Rosa D'AMATO, Ignazio CORRAO, Fabio Massimo CASTALDO

Proposal for a regulation
Recital 12 a (new)

(12a) When identifying generalised deficiencies, the Commission should bear in mind that data concerning a higher number of reports generally equate to a more effective monitoring and control system and should not by themselves be regarded as indicators of a generalised deficiency.

Amendment 99 #

Proposal for a regulation
Recital 13

(13). The possible equitable and proportionate measures to be adopted in the event of generalised deficiencies and the procedure to be followed to adopt them should be determined. Those measures ~~should~~may include the suspension of payments and of commitments, a reduction of funding under existing commitments, and a prohibition to conclude new commitments with recipients, in the presence of irrefutable evidence.

source: 630.466

2018/11/15 LIBE 144 amendments...

Amendment 100 #

Proposal for a regulation
Article 2 – paragraph 1 – point b

(b) 'generalised deficiency as regards democracy, the rule of law and fundamental rights' means a widespread or recurrent practice or omission, or measure by public authorities which affects the ~~rule of law~~democracy, the rule of law and fundamental rights;

Amendment 101 #

Proposal for a regulation
Article 2 – paragraph 1 – point b

(b) 'generalised deficiency as regards the rule of law' means a widespread or recurrent practice or omission, or measure by public authorities which ~~affects the rule of law~~constitute a threat to the implementation of the Union budget in the respective Member State;

Amendment 102 #

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

1. ~~Appropriate measures shall be taken where a generalised deficiency as regards~~In the event it decides to act according to Article 7(3) TEU, the Council may take appropriate measures pursuant to this Regulation where a serious and persistent breach of the rule of law inby a Member State affects ~~or risks affecting~~ the principles of sound financial management or the protection of the financial interests of the Union~~, in particular:~~.

Amendment 103 #

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

1. Appropriate, balanced and proportional measures shall be taken where a generalised deficiency as regards the rule of law in a Member State, as defined by its constitution, affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union, in particular:

Amendment 104 #

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

1. Appropriate measures shall be taken where a generalised deficiency as regards the rule of law, human rights and democracy in a Member State affects or risks affecting the pr~~inciples of sound~~oper implementation of the Union’s budget, in particular the management and control activities, in accordance with the principles of sound and socially responsible financial management orand the protection of the financial interests of the Union, ~~in particular~~and if at least one of the following conditions is met:

Amendment 105 #

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

1. Appropriate measures shall be taken where a generalised deficiency as regards democracy, the rule of law and fundamental rights in a Member State affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union, in particular:

Amendment 106 #

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

1. Appropriate measures shall be taken where a generalised deficiency as regards the rule of law, democracy and fundamental rights in a Member State affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union, in particular:

Amendment 107 #

Proposal for a regulation
Article 3 – paragraph 1 – point -a (new)

(-a) where the annual report with country-specific recommendations under the comprehensive, permanent and objective Union mechanism for the protection of democracy, the rule of law and fundamental rights finds that there is evidence for such a generalised deficiency, and after an exchange of views has taken place on these findings in an inter-parliamentary debate;

Amendment 108 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

Amendment 109 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) the ~~proper functioning of the authorities of that Member State implementing the Union budget, in particular in the context of public procurement or grant procedures,~~Commission considers that there is no satisfactory follow-up to the "rule of law recommendation" issued on the basis of the Communication of 11 March 2014 from the Commission to the European Parliament and wthe~~n carrying out monitoring and controls~~ Council entitled “A new EU Framework to strengthen the Rule of Law";

Amendment 110 #

Proposal for a regulation
Article 3 – paragraph 1 – point b

Amendment 111 #

Proposal for a regulation
Article 3 – paragraph 1 – point b

Amendment 112 #

Proposal for a regulation
Article 3 – paragraph 1 – point c

~~(c) the effective judicial review by independent courts of actions or omissions by the authorities referred to in points (a) and b);~~deleted

Amendment 113 #

Proposal for a regulation
Article 3 – paragraph 1 – point c

Amendment 114 #

Proposal for a regulation
Article 3 – paragraph 1 – point c

(c) the effective judicial review by independent courts of actions or omissions by the authorities referred to in points (a) and b) in cases of threat to the implementation of the Union budget;

Amendment 115 #

Proposal for a regulation
Article 3 – paragraph 1 – point d

Amendment 116 #

Proposal for a regulation
Article 3 – paragraph 1 – point d

Amendment 117 #

Proposal for a regulation
Article 3 – paragraph 1 – point e

~~(e) the recovery of funds unduly paid;~~deleted

Amendment 118 #

Proposal for a regulation
Article 3 – paragraph 1 – point e

~~(e) the recovery of funds unduly paid;~~deleted

Amendment 119 #

Proposal for a regulation
Article 3 – paragraph 1 – point f

Amendment 120 #

Proposal for a regulation
Article 3 – paragraph 1 – point f

Amendment 121 #

Proposal for a regulation
Article 3 – paragraph 2

2. The following may, in particular, be considered generalised deficiencies as regards the rule of law, (a) endangering the independence of judiciary; (b) sanction arbitrary or unlawful decisions by public authorities, including by law enforcement authorities, withholding financial and human resources affecting their proper functioning or failing to ensure the absence of conflicts of interests; (c) effectiveness of legal remedies, including through restrictive procedural rules, lack of implementation of judgments, or limiting the effective investigation, prosecution or sanctioning of breaches of law.deleted failing to prevent, correct and limiting the availability and

Amendment 122 #

Proposal for a regulation
Article 3 – paragraph 2

~~2. The following may, in particular, be consider~~deleted generalised deficiencies as regards the rule of law, (a) judiciary; (b) sanction arbitrary or unlawful decisions by public authorities, including by law enforcement authorities, withholding financial and human resources affecting their proper functioning or failing to ensure the absence of conflicts of interests; (c) effectiveness of legal remedies, including through restrictive procedural rules, lack of implementation of judgments, or limiting the effective investigation, prosecution or sanctioning of breaches of law.dangering the independence of failing to prevent, correct and limiting the availability and

Amendment 123 #

Proposal for a regulation
Article 3 – paragraph 2 – introductory part

2. The following ~~may, in particular,~~shall be considered generalised deficiencies as regards the rule of law,

Amendment 124 #

Proposal for a regulation
Article 3 – paragraph 2 – point a

(a) endangering the independence of judiciary, including by setting any limitations on the ability to exercise judicial functions autonomously by externally intervening in guarantees of independence, by constraining judgement under external order, by arbitrarily revising rules on the appointment or terms of service of judicial personnel, or by influencing judicial staff in any way that jeopardises their impartiality;

Amendment 125 #

Proposal for a regulation
Article 3 – paragraph 2 – point a

(a) endangering the independence of judiciary, by limiting the possibility for judges to work without external pressure or by exerting whatever pressure on magistrates working on cases, related to irregularities with the implementation of the Union budget;

Amendment 126 #

Proposal for a regulation
Article 3 – paragraph 2 – point b

Amendment 127 #

Proposal for a regulation
Article 3 – paragraph 2 – point c

(c) limiting the availability and effectiveness of legal remedies, including through restrictive procedural rules, lack of implementation of judgments, or limiting the effective investigation, prosecution or sanctioning of breaches of law in relation to the implementation of the Union budget.

Amendment 128 #

Proposal for a regulation
Article 3 – paragraph 2 a (new)

2 a. Establishing a generalised deficiency as regards the rule of law shall be based on a quantified assessment carried out by the European Commission containing clear evidence of a threat to the implementation of the Union budget in a Member State for three consecutive years. This assessment should be carried out annually for all Member States. The evaluation criteria are described in paragraph 2 of Article 3.

Amendment 129 #

Proposal for a regulation
Article 3 a (new)

Article 3 a Democracy, Rule of Law and Fundamental Rights Expert Panel 1. In the assessment of the state of generalised deficiencies as regards the rule of law, human rights and democracy, the Commission shall be assisted by a representative panel of independent experts (the Democracy, Rule of Law and Fundamental Rights Expert Panel). The Democracy, Rule of Law and Fundamental Rights Expert Panel shall assess the situation on the basis of a quantitative and qualitative review of all the data and information available. 2. The assessment by the Democracy, Rule of Law and Fundamental Rights Expert Panel shall be made public by the Commission. 3. The Democracy, Rule of Law and Fundamental Rights Expert Panel shall be composed of the following members: (a) one independent expert designated by the parliament of each Member State who shall be a qualified constitutional court or supreme court judge not currently in active service; (b) ten further experts designated by the European Parliament with a two-third majority, chosen from a list of experts nominated by: (i) the European Federation of Academies of Sciences and Humanities (ALLEA); (ii) the European Network of National Human Rights Institutions(ENNHRI); (iii) the Council of Europe (including the Venice Commission, the Group of States Against Corruption (GRECO) and the Council of Europe Commissioner for Human Rights); (iv) European Commission for the efficiency of justice (CEPEJ) and the Council of Bars and Law Societies of Europe (CCBE); (v) the United Nations (UN), the Organization for Security and Co-operation in Europe (OSCE) and the Organisation for Economic Co-operation and Development (OECD). 4. The composition of the Democracy, Rule of Law and Fundamental Rights Expert Panel shall ensure gender balance. 5. The Democracy, Rule of Law and Fundamental Rights Expert Panel shall elect its chairperson from among its members. 6. In order to facilitate the work of the Democracy, Rule of Law and Fundamental Rights Expert Panel, the Commission shall provide a secretariat to the Expert Panel, enabling it to function efficiently, in particular by gathering data and information sources to be reviewed and assessed, and by providing administrative support.

Amendment 130 #

Proposal for a regulation
Article 4 – paragraph 1 – introductory part

1. One or more of the following appropriate measures ~~may~~shall be adopted in the following order:

Amendment 131 #

Proposal for a regulation
Article 4 – paragraph 1 – point -a (new)

(-a) establishing a dialogue between the European Commission and the Member State for which the assessment has revealed widespread disregard for the rule of law;

Amendment 132 #

Proposal for a regulation
Article 4 – paragraph 1 – point -a a (new)

(-a a) establishing cooperation between the Member State and the European Commission by providing technical support from the European Commission's Structural Reform Support Service;

Amendment 133 #

Proposal for a regulation
Article 4 – paragraph 1 – point a – introductory part

(a) after an independent assessment of the effect and proportionality of the measure taken, a Commission proposal for a Council decision to impose a financial penalty on the Member State, where the Commission implements the Union’s budget in direct or indirect management pursuant to points (a) and (c) of Article 62 of the Financial Regulation, and where a government entity is the recipient:

Amendment 134 #

Proposal for a regulation
Article 4 – paragraph 1 – point b

(b) where the Commission implements the Union’s budget in shared management pursuant to [point (b) of Article 62] of the Financial Regulation: (1) one or more programmes or an amendment thereof; (2) (3) including through financial correcdeleted a suspension of the approval of a suspension of commitments; a reduction of commitments, a reduction of pre-financing; an interruptions o~~r transfers to other spending programmes; (4) (5) deadlines; (6)~~f payment a suspension of payments.

Amendment 135 #

Proposal for a regulation
Article 4 – paragraph 2

Amendment 136 #

Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 1 (new)

The additional national budgetary resources needed to fulfil the obligation referred to in the previous subparagraph shall not be counted for the purposes of the Stability and Growth Pact.

Amendment 137 #

Proposal for a regulation
Article 4 – paragraph 3

3. The measures taken shall be proportionate to the nature, gravity, persistence and scope of the ~~generalised deficiency as regards the rule of law. They shall, insofar as possible, target the Union actions affected or potentially~~breach of the rule of law. They shall exclusively target the financial interests of the Union affected by that ~~deficiency~~breach.

Amendment 138 #

Proposal for a regulation
Article 4 – paragraph 3

3. The measures taken shall be proportionate to the nature, gravity, duration and scope of the generalised deficiency as regards the rule of law, human rights and democracy. They shall, insofar as possible, target the Union actions affected or potentially affected by that deficiency.

Amendment 139 #

Proposal for a regulation
Article 5 – paragraph 1

Amendment 140 #

Proposal for a regulation
Article 5 – paragraph 1

1. Where the Commission finds on the basis of three consecutive assessments 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

Amendment 141 #

Proposal for a regulation
Article 5 – paragraph 1

1. Where the Commission finds, on the basis of the assessment carried out in full cooperation with the Democracy, Rule of Law and Fundamental Rights Expert Panel, 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 .

Amendment 142 #

Proposal for a regulation
Article 5 – paragraph 2

2. The Commission may take into account all relevant information, including decisions of the Court of Justice of the European Union, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations.deleted

Amendment 143 #

Proposal for a regulation
Article 5 – paragraph 2

2. ~~The Commission may~~In conducting the assessment pursuant to paragraph 1, the Commission and the Democracy, Rule of Law and Fundamental Rights Expert Panel shall take into account all relevant information, including ~~decision~~, inter alia, judgments of the Court of Justice of the European Union~~, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations.~~ and of the European Court of Human Rights, reports of the Court of Auditors, the European Ombudsman and the European Union Agency for Fundamental Rights, conclusions and recommendations of relevant international organisations and networks, such as the bodies of the Council of Europe and the European networks of supreme courts and councils for the judiciary as well as reporting from non-governmental and civil society organisations working in the field of human rights protection and promotion.

Amendment 144 #

Proposal for a regulation
Article 5 – paragraph 3

~~3. The Commission may request any additional information required for its assessment, both before and after having made a finding pursuant to paragraph 1.~~deleted

Amendment 145 #

Proposal for a regulation
Article 5 – paragraph 4

4. The Member State concerned shall provide all required information and may make observations within a time limit specified by the Commission, which shall not be less than 1 month from the date of notification of the finding. In its observations, the Member State may propose the adoption of remedial measures.deleted

Amendment 146 #

Proposal for a regulation
Article 5 – paragraph 4

4. The Member State concerned shall provide all required information and may make observations within a time limit specified by the Commission, which shall not be less than 13 months from the date of notification of the finding. In its observations, the Member State may propose the adoption of remedial measures.

Amendment 147 #

Proposal for a regulation
Article 5 – paragraph 5

5. The Commission shall ~~take~~submit to the Council a proposal for a decision on the appropriate measures taking 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 a decision on the appropriate~~ measures.

Amendment 148 #

Proposal for a regulation
Article 5 – paragraph 5 a (new)

5 a. If the Commission considers that the proposed remedial measures are inadequate for three consecutive years, it shall establishe cooperation by providing technical support from the Structural Reform Support Service in order to undertake reforms by the Member State which do not lead to a generalised deficiency as regards the rule of law.

Amendment 149 #

Proposal for a regulation
Article 5 – paragraph 6

Amendment 150 #

Proposal for a regulation
Article 5 – paragraph 6

6. ~~Where~~If the Commission considers that the generalised deficiency as regards the rule of law is established~~, it shall submit a proposal for an implementing ac~~ despite the cooperation dialogue and cooperation and after an independent assessment onf the ~~appropriate measures to the Council~~effect and proportionality, it shall submit a proposal for a Council decision on financial sanctions.

Amendment 151 #

Proposal for a regulation
Article 5 – paragraph 6

6. Where the Commission considers that the generalised deficiency as regards the rule of law, human rights and democracy is established, it shall submit a proposal for an implementing act on the appropriate measures to the Council.

Amendment 152 #

Proposal for a regulation
Article 5 – paragraph 6

Amendment 153 #

Proposal for a regulation
Article 5 – paragraph 6 a (new)

6 a. Before submitting the proposal for an implementing act pursuant to article 5(6), the Commission shall carry out a detailed assessment regarding the potential impacts that these measures might have on the final beneficiaries and how to ensure that their rights and legitimate interests will be properly safeguarded. The Commission shall also assess the possible budgetary implications of a reduction in the Union funding for the national budget of the Member States concerned with due regard to the principles of proportionality and non- discrimination.

Amendment 154 #

Proposal for a regulation
Article 5 – paragraph 6 a (new)

6 a. After receiving the proposal for a Council decision from the European Commission, the Council shall conduct a dialogue or a series of dialogues with the Member State and shall carefully review the assessment of the effect and proportionality of the proposed financial sanction.

Amendment 155 #

Proposal for a regulation
Article 5 – paragraph 7

Amendment 156 #

Proposal for a regulation
Article 5 – paragraph 7

Amendment 157 #

Proposal for a regulation
Article 5 – paragraph 7

7. 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~~Council shall take any decision on a financial sanction by unanimity.

Amendment 158 #

Proposal for a regulation
Article 5 – paragraph 8

~~8. The Council, acting by a qualified majority, may amend the Commission’s proposal and adopt the amended text as a Council decision.~~deleted

Amendment 159 #

Proposal for a regulation
Article 5 – paragraph 8

8. The Council, acting by a qualified majority and after obtaining the consent of the European Parliament, may a~~mend~~dopt the Commission’s proposal ~~and adopt the amended text~~, amended or otherwise, as a Council decision.

Amendment 160 #

Proposal for a regulation
Article 5 – paragraph 8

8. The Council~~, acting by a qualified majority,~~ may amend the Commission’s proposal and adopt the amended text as a Council decision. pursuant to the procedure set out in Article 7(3) TEU.

Amendment 161 #

Proposal for a regulation
Article 6 – title

LVarying or lifting of measures

Amendment 162 #

Proposal for a regulation
Article 6 – paragraph 1

1. The Member State concerned may, at any time, submit to the Commission evidence to show that the ~~generalised deficiency as regards~~serious and persistent breach of the rule of law has been remedied or has ceased to exist.

Amendment 163 #

Proposal for a regulation
Article 6 – paragraph 1

1. The Member State concerned may, at any time, submit to the Commission evidence to show that the generalised deficiency as regards the rule of law, human rights and democracy has been remedied or has ceased to exist.

Amendment 164 #

Proposal for a regulation
Article 6 – paragraph 2

2. The Commission shall assess the situation in the Member State concerned. Once the ~~generalised deficiencies as regards~~serious and persistent breach of the rule of law which on the grounds of which the appropriate measures were adopted ceases to exist in full or in part, the Commission shall submit to the Council a proposal for a decision varying or lifting those measures in full or in part. The ~~procedure set out in paragraphs 2, 4, 5, 6 and 7 of Article 5 shall apply~~Council may amend the Commission’s proposal and adopt the amended text as a Council decision pursuant to the procedure set out in Article 7(4) TEU.

Amendment 165 #

Proposal for a regulation
Article 6 – paragraph 2

2. The Commission shall regularly assess the situation in the Member State concerned, covering also the impact, on human rights and fundamental freedoms, of the remedial measures adopted by the Commission. Once the generalised deficiencies as regards the rule of law ~~which~~, human rights and democracy on the grounds of which the appropriate measures were adopted cease to exist in full or in part, the Commission shall, without delay, submit to the Council a proposal for a decision lifting those measures in full or in part. The procedure set out in paragraphs 2, 4, 5, 6, 6(a) and 78 of Article 5 shall apply.

Amendment 166 #

Proposal for a regulation
Article 6 – paragraph 2

2. The Commission shall assess on a regular basis the situation in the Member State concerned. Once the generalised deficiencies as regards the rule of law which on the grounds of which the appropriate measures were adopted cease to exist in full or in part, the Commission shall submit to the Council a proposal for a decision lifting those measures in full or in part. The procedure set out in paragraphs 2, 4, 5, 6, 6a and 7 of Article 5 shall apply.

Amendment 167 #

Proposal for a regulation
Article 6 – paragraph 3

3. 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).

Amendment 168 #

Proposal for a regulation
Article 6 – paragraph 3

3. 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.

Amendment 169 #

Proposal for a regulation
Article 7 – paragraph 1

The Commission shall immediately inform the European Parliament ofat any ~~measures proposed or adopted pursuant to Articles 4 and 5~~stage of the procedure.

Amendment 170 #

Auke ZIJLSTRA, Nicolas BAY, Gilles LEBRETON, Giancarlo SCOTTÀ

Proposal for a regulation
Article 7 a (new)

Article 7 a Reporting The 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, and on the impact of such measures on the rights and principles enshrined in the Charter of fundamental rights of the European Union, at the latest three years after its entry into force. The report shall be accompanied, where necessary, by appropriate proposals.

Amendment 27 #

Proposal for a regulation
–

The Committee on Civil Liberties, Justice and Home Affairs calls on the Committees on Budgets and on Budgetary Control, as the committees responsible, to propose a rejection of the Commission proposal.

Amendment 28 #

Marek JUREK

Proposal for a regulation
–

Amendment 29 #

Proposal for a regulation
Title 1

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the protection of the Union's budget in case of ~~generalised deficiencies as regards~~occurred determination of the existence of a serious and persistent breach of the rule of law ~~in the~~by a Member States

Amendment 30 #

Proposal for a regulation
Title 1

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the protection of the Union's budget in case of generalised deficiencies as regards democracy, the rule of law and fundamental rights in the Member States

Amendment 31 #

Proposal for a regulation
Title 1

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the protection of the Union's budget in case of generalised deficiencies as regards the rule of law, human rights and democracy in the Member States

Amendment 32 #

Proposal for a regulation
Citation 2 a (new)

Having regard to the Charter of Fundamental Rights of the European Union,

Amendment 33 #

Proposal for a regulation
Citation 2 b (new)

Having regard to the European Convention on Human Rights and to the European Social Charter, the Additional Protocol thereto and the revised version thereof,

Amendment 34 #

Proposal for a regulation
Recital 1

(1) The rule of law ~~is one of the essential values upon which~~, democracy and fundamental rights are in a triangular relationship, reinforcing each other and together safeguarding the constitutional core of the Union and its ~~founded~~Member States. As recalled by Article 2 of the Treaty on European Union, these values are common to the Member States.

Amendment 35 #

Proposal for a regulation
Recital 1

Amendment 36 #

Proposal for a regulation
Recital 1

(1) TDemocracy, the rule of law ~~is one of th~~and fundamental rights are essential values upon which the Union is founded. As recalled by Article 2 of the Treaty on European Union, these values are common to the Member States.

Amendment 37 #

Proposal for a regulation
Recital 1 a (new)

(1 a) Respect for the rule of law entails the full observance and promotion of its core elements, namely legality, including a transparent, accountable and democratic process for enacting law; legal certainty; prohibition of arbitrariness; access to justice before independent and impartial courts, including judicial review of administrative acts; respect for human rights; and non-discrimination and equality before the law.

Amendment 38 #

Proposal for a regulation
Recital 1 a (new)

(1 a) The Union is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minority, and these values are common to the Member States in a society in which pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail.

Amendment 39 #

Auke ZIJLSTRA, Nicolas BAY, Gilles LEBRETON, Giancarlo SCOTTÀ

Proposal for a regulation
Recital 1 a (new)

(1 a) Member States should uphold and cultivate the value of the rule of law and set an example by moving towards a shared culture of the rule of law, which is an essential condition for the legitimacy of the European project as a whole and the basic condition for building citizens' trust in the Union.

Amendment 40 #

Proposal for a regulation
Recital 1 a (new)

(1 a) The Commission´s interference in the Member States´ internal affairs is misleadingly presented as protecting the Union´s financial interests.

Amendment 41 #

Proposal for a regulation
Recital 2

(2) The rule of law requires that all public powers act within the constraints set out by law, in accordance with the Constitution of every Member State, the values of democracy and fundamental rights, and under the control of independent and impartial courts. It requires, in particular, that the principles of legality7 , legal certainty8 , prohibition of arbitrariness of the executive powers9 , separation of powers10 , and effective judicial protection by independent courts11 are respected12 . __________________ 7 Judgment of the Court of Justice of 29 April 2004, CAS Succhi di Frutta, C- 496/99 PECLI:EU:C:2004:236, paragraph 63. 8 Judgment of the Court of Justice of 12 November 1981, Amministrazione delle finanze dello Stato v Srl Meridionale Industria Salumi and others Ditta Italo Orlandi & Figlio and Ditta Vincenzo Divella v Amministrazione delle finanze dello Stato. Joined cases 212 to 217/80, ECLI:EU:C:1981:270, paragraph 10. 9 Judgment of the Court of Justice of 21 September 1989, Hoechst, Joined cases 46/87 and 227/88, ECLI:EU:C:1989:337, paragraph 19. 10 Judgment of the Court of Justice of 10 November 2016, Kovalkovas, C-477/16, ECLI:EU:C:2016:861, paragraph 36; Judgment of the Court of Justice of 10 November 2016, PPU Poltorak, C-452/16, ECLI:EU:C:2016:858, paragraph 35; and Judgment of the Court of Justice of 22 December 2010, DEB,C-279/09, ECLI:EU:C:2010:811, paragraph 58. 11 Judgment of the Court of Justice of 27 February 2018, Associação Sindical dos Juízes Portugueses v Tribunal de Contas C- 64/16, ECLI:EU:C:2018:117, paragraphs 31, 40-41. 12 Communication from the Commission "A new EU Framework to strengthen the Rule of Law", COM(2014) 158 final, Annex I.

Amendment 42 #

Proposal for a regulation
Recital 2

(2) The rule of law requires that all public powers act within the constraints set out by law, in accordance with the ~~valu~~principles of democracy and respect for fundamental rights, and under the control of independent and impartial courts. It requires, in particular, that the principles of legality7 , legal certainty8 , prohibition of arbitrariness of the executive powers9 , separation of powers10 , and effective judicial protection by independent courts11 are respected12 . __________________ 7 Judgment of the Court of Justice of 29 April 2004, CAS Succhi di Frutta, C- 496/99 PECLI:EU:C:2004:236, paragraph 63. 8 Judgment of the Court of Justice of 12 Judgment of the Court of Justice of 12 November 1981, Amministrazione delle finanze dello Stato v Srl Meridionale Industria Salumi and others Ditta Italo Orlandi & Figlio and Ditta Vincenzo Divella v Amministrazione delle finanze dello Stato. Joined cases 212 to 217/80, ECLI:EU:C:1981:270, paragraph 10. 9 Judgment of the Court of Justice of 21 September 1989, Hoechst, Joined cases 46/87 and 227/88, ECLI:EU:C:1989:337, paragraph 19. 10 Judgment of the Court of Justice of 10 November 2016, Kovalkovas, C-477/16, ECLI:EU:C:2016:861, paragraph 36; Judgment of the Court of Justice of 10 November 2016, PPU Poltorak, C-452/16, ECLI:EU:C:2016:858, paragraph 35; and Judgment of the Court of Justice of 22 December 2010, DEB,C-279/09, ECLI:EU:C:2010:811, paragraph 58. 11 Judgment of the Court of Justice of 27 February 2018, Associação Sindical dos Juízes Portugueses v Tribunal de Contas C- 64/16, ECLI:EU:C:2018:117, paragraphs 31, 40-41. 12 Communication from the Commission "A new EU Framework to strengthen the Rule of Law", COM(2014) 158 final, Annex I.

Amendment 43 #

Auke ZIJLSTRA, Nicolas BAY, Gilles LEBRETON, Giancarlo SCOTTÀ

Proposal for a regulation
Recital 2 a (new)

(2 a) Fundamental rights in the Union are stipulated, in particular, in the Charter of Fundamental Rights of the European Union and in the European Convention for the Protection of Human Rights and Fundamental Freedoms.

Amendment 44 #

Proposal for a regulation
Recital 2 a (new)

(2 a) The Treaty defines the Commission as an impartial referee: the Commission however sees itself as a political body, thereby jeopardizing the EU.

Amendment 45 #

Proposal for a regulation
Recital 3

(3) The rule of law is a prerequisite for the protection of the other fundamental values on which the Union is founded, such as freedom, democracy, equality and respect for human rights. Respect for the rule of law is intrinsically linked to respect for democracy and for fundamental rights: there can be no democracy and respect for fundamental rights without respect for the rule of law and vice versa. Deterioration of the rule of law in one Member State negatively affects the rule of law in the Union as a whole.

Amendment 46 #

Proposal for a regulation
Recital 3

(3) The rule of law is a prerequisite for the protection of the other fundamental values on which the Union is founded, such as freedom, democracy, equality and respect for human rights. Respect for the rule of law is intrinsically linked to respect for democracy ~~and~~, for fundamental rights as well as for upholding all rights and obligations deriving from the Treaties and from international law: there can be no democracy and respect for fundamental rights without respect for the rule of law and vice versa.

Amendment 47 #

Proposal for a regulation
Recital 3

(3) TDemocracy, the rule of law is a prerequisite for the protection of the other fundamental values on which the Union is founded, such as freedom, democracy, equality and respect for human rights. Respect for the rule of law is intrinsically linked to respect for democracy and for fundamental rights: tand fundamental rights are in a triangular relationship, reinforcing each other and together safeguarding the constitutional core of the Union and its Member States. There can be no democracy and respect for fundamental rights without respect for the rule of law and vice versa.

Amendment 48 #

Proposal for a regulation
Recital 3

(3) ~~The r~~Rule of law ~~is a prerequisite for the protection of the other fundamental values on which the Union is~~, human rights and democracy are strictly interlinked and mutually reinforcing; the interdependence between a foun~~ded, such as freedom, democracy, equality and respect for human rights. Respect for the rule of law is in~~ctioning democracy, strong and accountable institutions, trians~~ically linked to respect for democracy and for fundamental rights: there can be no democracy and respect for fundamental rights without respect for the rule of law~~parent and inclusive decision-making and effective rule of law is essential for an effective respect for human rights and vice versa.

Amendment 49 #

Proposal for a regulation
Recital 3 a (new)

(3 a) Articles 2 and 6 TEU require Member States to fully respect, protect and promote the principle of rule of law, human rights and democracy as well as their constitutive elements. The Union principle of mutual trust does not preclude the establishment of mechanisms to assess the compliance of the Member States with the provisions enshrined in such articles.

Amendment 50 #

Proposal for a regulation
Recital 3 a (new)

(3 a) Respect for the rule of law is essential not only for citizens of the Union but also for entrepreneurship, innovation, investment and the smooth functioning of the internal market, which need a stable legal and institutional framework to realize their full potential and in order to achieve sustainable long-term growth.

Amendment 51 #

Proposal for a regulation
Recital 4

(4) Whenever the Member States implement the Union’s budget, and whatever method of implementation they use, respect for the rule of law, human rights and democracy is an essential precondition to comply with the principles of sound financial management enshrined in Article 317 of the Treaty on the Functioning of the European Union.

Amendment 52 #

Proposal for a regulation
Recital 5

(5) Sound financial management can only be ensured by the Member States if public authorities act in accordance with the law, and if breaches thereof are effectively pursued by investigative and prosecution services, and if decisions of public authorities can be subject to effective judicial review by independent courts and by the Court of Justice of the European Union. This applies in particular to judicial review of the legality of measures, contracts or other instruments that result in public expenditure or debts, inter alia in the context of procurement procedures in respect of which the courts may also be seized.

Amendment 53 #

Proposal for a regulation
Recital 6

Amendment 54 #

Proposal for a regulation
Recital 6

(6) ~~Judicial bodies should act i~~Independen~~tly~~ce and impartiallyity of the judiciary should always be guaranteed and investigation and prosecution services should be able to properly execute their function. They should be endowed with sufficient resources and procedures to act effectively and in full respect of the right to a fair trial. These conditions are required as a minimum guarantee against unlawful and arbitrary decisions by public authorities that could ~~harm~~impair these f~~inancial interests of the Union~~undamental principles.

Amendment 55 #

Proposal for a regulation
Recital 7

Amendment 56 #

Proposal for a regulation
Recital 8

Amendment 57 #

Proposal for a regulation
Recital 8

Amendment 58 #

Proposal for a regulation
Recital 8

(8) Respect for the rule of law ~~is not only important for citizens of the Union, but also~~, human rights and democracy is essential for allowing citizens to fully participate in the democratic life of the Union. It is also important for business initiatives, innovation, and investment and for the pro~~per~~ motion of a social rights-based and well-functioning ~~of the~~ internal market~~, which will flourish most where a solid legal and institutional framework is in place~~ compliant with the principles enshrined in Article 3 TEU.

Amendment 59 #

Proposal for a regulation
Recital 8

(8) Respect for democracy, the rule of law and fundamental rights is not only important for citizens of the Union, but also for business initiatives, innovation, investment and the proper functioning of the internal market, which will flourish most where a solid legal and institutional framework is in place.

Amendment 60 #

Proposal for a regulation
Recital 8

(8) Respect for the rule of law, human rights and democracy is not only important for citizens of the Union, but also for business initiatives, innovation, investment and the proper functioning of the internal market, which will flourish most where a solid legal and institutional framework is in place.

Amendment 61 #

Auke ZIJLSTRA, Nicolas BAY, Gilles LEBRETON, Giancarlo SCOTTÀ

Proposal for a regulation
Recital 8 a (new)

(8 a) In situations where a Member State no longer guarantees respect for the rule of law, democracy or fundamental rights, or in cases of a breach of the rule of law, the Union and its Member States have a duty to protect the integrity and application of the Treaties and to protect the rights of everyone within its jurisdiction.

Amendment 62 #

Proposal for a regulation
Recital 8 a (new)

(8 a) Reaffirms its commitment to the overriding principles of cultural identity and national sovereignty, principles that form an indivisible whole with the principle of freedom.

Amendment 63 #

Proposal for a regulation
Recital 9

(9) Article 19 TEU, which gives concrete expression to the value of the rule of law stated in Article 2 TEU, requires the Member States to provide effective judicial protection in the fields covered by Union law, including those relating to the implementation of the Union’s budget. The very existence of effective judicial review designed to ensure compliance with Union law is the essence of the rule of law and requires independent courts13 . Maintaining the independence of the courts is essential, as confirmed by the second subparagraph of Article 47 of the Charter of Fundamental Rights of the European Union14 . This is true, in particular, for the judicial review of the validity of the measures, contracts or other instruments giving rise to public expenditure or debts, inter alia in the context of public procurement procedures which may also be brought before the courts. __________________ 13 Case C-64/16, para 32-36. 14 Case C-64/16, para 40-41.deleted

Amendment 64 #

Proposal for a regulation
Recital 9

(9) Article 19 TEU~~, which gives concrete expression to the value of the rule of law stated in Article 2 TEU,~~ requires the Member States to provide effective judicial protection in the fields covered by Union law, including those relating to the implementation of the Union’s budget. The ~~very existence of effective judicial review designed to ensure compliance with Union law is the essence of the rule of law and requir~~effectiveness of justice systems is a key aspect of the rule of law and it is essential for ensuring equal treatment, sanctioning government abuses iand~~ependent courts13~~ preventing arbitrariness. Maintaining the independence of the courts is essential, as confirmed by the second subparagraph of Article 47 of the Charter of Fundamental Rights of the European Union14 . This is true, in particular, for the judicial review of the validity of the measures, contracts or other instruments giving rise to public expenditure or debts, inter alia in the context of public procurement procedures which may also be brought before the courts. __________________ 13 14__________________ 13 Case C-64/16, para 32-36. Case C-64/16, para 32-36. 14 Case C-64/16, para 40-41. Case C-64/16, para 40-41.

Amendment 65 #

Proposal for a regulation
Recital 9

(9) Article 19 TEU, which gives concrete expression to the value of the rule of law stated in Article 2 TEU, requires the Member States to provide effective judicial protection in the fields covered by Union law, including those relating to the implementation of the Union’s budget. The very existence of effective judicial review designed to ensure compliance with Union law is the essence of the rule of law and requires independent courts13 ~~. M~~. Ensuring the right to an effective remedy and to a fair trial and maintaining the independence of the courts is essential, as confirmed by ~~the second subparagraph of~~ Article 47 of the Charter of Fundamental Rights of the European Union14 . This is true, in particular, for the judicial review of the validity of the measures, contracts or other instruments giving rise to public expenditure or debts, inter alia in the context of public procurement procedures which may also be brought before the courts. __________________ 13 Case C-64/16, para 32-36. 14 Case C-64/16, para 40-41.

Amendment 66 #

Proposal for a regulation
Recital 10

(10) There is ~~hence~~ a clear relationship between respect for the rule of law, human rights and democracy and an efficient implementation of the Union budget in accordance with the principles of sound and socially responsible financial management.

Amendment 67 #

Proposal for a regulation
Recital 10

(10) There is ~~hence a clear~~a relationship between respect for the rule of law, democracy and fundamental rights and an efficient implementation of the Union budget in accordance with the principles of sound financial management.

Amendment 68 #

Proposal for a regulation
Recital 11

Amendment 69 #

Proposal for a regulation
Recital 11

Amendment 70 #

Proposal for a regulation
Recital 11

(11) Generalised deficiencies in the Member States as regards democracy, the rule of law and fundamental rights which affect in particular the proper functioning of public authorities and effective judicial review, can seriously harm the financial interests of the Union.

Amendment 71 #

Proposal for a regulation
Recital 11

(11) Generalised deficiencies in the Member States as regards the rule of law and democracy which affect in particular the proper functioning of public authorities and effective judicial review, can seriously harm the financial interests of the Union.

Amendment 72 #

Proposal for a regulation
Recital 11

(11) ~~Generalised deficiencies in the Member States as regards the rule of law~~Serious and persistent breaches of the rule of law by a Member State which affect in particular the proper functioning of public authorities and effective judicial review, can seriously harm the financial interests of the Union.

Amendment 73 #

Proposal for a regulation
Recital 11

(11) Generalised deficiencies in the Member States as regards the rule of law ~~which affect in particular the proper functioning of public authorities and effective judicial review, can seriously harm the financial interests of the Union~~, human rights and democracy can seriously harm the financial interests of the Union as well as the rights and interests of the citizens as a whole.

Amendment 74 #

Proposal for a regulation
Recital 12

(12) The ide~~ntific~~termination of ~~a generalised deficiency~~the existence of a serious and persistent breach of the rule of law requires a qualitative assessment ~~by the Commission~~. That assessment could be based on the information from all available sources and recognized institutions, including judgments of the Court of Justice of the European Union, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations and networks, such as the bodies of the Council of Europe and the European networks of supreme courts and councils for the judiciary.

Amendment 75 #

Proposal for a regulation
Recital 12

(12) The identification of a generalised deficiency requires ~~a qualitative assessment by the Commission. That assessment could be based on the information from all available sources and recognized institutions, including judg~~the existence of a comprehensive, permanent and objective Union mechanism for the protection of democracy, the rule of law and fundamental rights. The main elements of the Court of Justice of the European Union, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations and networks, such as the bodies of the Council of Europe and the European networks of supreme courts and councils for the judiciarysuch a mechanism should consist of an annual evidence-based and non- discriminatory review, assessing, on an equal footing, all Union Member States' compliance with the values stipulated in Article 2 TEU, and with country-specific recommendations, to be followed by an inter-parliamentary debate.

Amendment 76 #

Josep-Maria TERRICABRAS

Proposal for a regulation
Recital 12

(12) The identification of a generalised deficiency requires a qualitative assessment by the Commission~~. That assessment~~, assisted by a representative panel of independent experts. That assessment should be impartial and transparent and could be based on the information from all available sources and recognized institutions, including judgments of the Court of Justice of the European Union, reports of the Court of Auditors, reports and opinions of other institutions, bodies, offices or agencies of the Union, such as the European Parliament, the Economic and Social Committee, the Committee of the Regions and the European Union Agency for Fundamental Rights, and conclusions and recommendations of relevant international organisations and networks, such as the bodies of the Council of Europe and the European networks of supreme courts and councils for the judiciary.

Amendment 77 #

Proposal for a regulation
Recital 12

(12) The identification of a generalised deficiency requires a qualitative ~~assessment by the Commission~~, objective, transparent and impartial assessment carried out by the Commission in cooperation with a representative panel of independent experts. That assessment cshould be based on the information from all available sources and recognized institutions, including, inter alia, judgments of the Court of Justice of the European Union~~, reports of the Court of Auditors, and~~ and of the European Court of Human Rights, reports of the Court of Auditors, the European Ombudsman and the European Union Agency for Fundamental Rights, conclusions and recommendations of relevant international organisations and networks, such as the bodies of the Council of Europe and the European networks of supreme courts and councils for the judiciary as well as reporting from non- governmental and civil society organisations working in the field of human rights protection and promotion.

Amendment 78 #

Proposal for a regulation
Recital 12

(12) The identification of a generalised deficiency requires a ~~qualitative assess~~n assessment by the Commission that there is a direct link between, on one hand, the malfunctioning, and on the other side, the principles of sound financial management byand the ~~Commiss~~protection of the financial interests of the Union. That assessment could be based on the information, accompanied with specific evidence for such deficiencies, from all available sources and recognized institutions, including judgments of the Court of Justice of the European Union, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations and networks, such as the bodies of the Council of Europe and the European networks of supreme courts and councils for the judiciary.

Amendment 79 #

Proposal for a regulation
Recital 12 a (new)

(12 a) The evaluation should be based on clear evidence, objective and not based on external influences, especially political ones, without discrimination of Member States, and should evaluate all Member States on an equal footing; this assessment should respect the principle of subsidiarity, necessity and proportionality; the assessment should constitute a single framework applicable to all Member States and should replace existing instruments and mechanisms such as the Cooperation and Verification Mechanism for Bulgaria and Romania.

Amendment 80 #

Proposal for a regulation
Recital 13

(13) The possible measures to be adopted in the event of ~~generalised deficiencies~~occurred determination of the existence of a serious and persistent breach of the rule of law by a Member State which affects the financial interests of the Union and the procedure to be followed to adopt them should be determined. Those measures should include the suspension of payments and of commitments, a reduction of funding under existing commitments, and a prohibition to conclude new commitments with recipients.

Amendment 81 #

Proposal for a regulation
Recital 13

(13) The possible fair and proportionate measures to be adopted in the event of generalised deficiencies and the procedure to be followed to adopt them should be determined. Those measures shcould include the suspension of payments and of commitments, a reduction of funding under existing commitments, and a prohibition to conclude new commitments with recipients if incontestable evidence exists.

Amendment 82 #

Proposal for a regulation
Recital 13

(13) The possible measures to be adopted in the event of generalised deficiencies and the procedure to be followed to adopt them should be determined. Those measures should include ~~the suspension of payments and of commitments, a reduction of funding under existing commitments, and a prohibition to conclude new commitments with recipients~~enhancing cooperation between the Member State and the European Commission by providing technical support from the European Commission's Structural Reform Support Service.

Amendment 83 #

Proposal for a regulation
Recital 14

(14) The principles of necessity, proportionality and non-discrimination should apply when determining the measures to be adopted, in particular taking into account the seriousness of the situation, the time which has elapsed since the relevant conduct started, its duration and its recurrence, the intention, and the degree of cooperation of the Member State concerned in putting an end to the generalised deficiency as regards the rule of law, human rights and democracy and the effects of that deficiency on the respective Union funds.

Amendment 84 #

Proposal for a regulation
Recital 14

Amendment 85 #

Proposal for a regulation
Recital 14 a (new)

(14 a) It is of paramount importance that the fundamental rights and the legitimate interests of the final recipients and beneficiaries are duly taken into account in determining the measures to be adopted. The Commission should always assess in detail, before the adoption of any possible measure under this Regulation, the potential impact that these might have on final beneficiaries and how to ensure that their rights and legitimate interests will be properly safeguarded. The Commission should also assess, before determining the measures to be adopted, the possible budgetary implications of a reduction in Union funding for the national budget of the Member States concerned with due regard to the principles of proportionality and non- discrimination.

Amendment 86 #

Proposal for a regulation
Recital 14 a (new)

(14 a) It is essential that the legitimate interests of final recipients and beneficiaries are properly safeguarded when measures are adopted in the event of a generalised deficiency. When considering the measures to be adopted, the Commission should take into account their potential impact on final recipients and beneficiaries.

Amendment 87 #

Proposal for a regulation
Recital 15

Amendment 88 #

Proposal for a regulation
Recital 15

(15) In order to ensure uniform implementation of this Regulation and in view of the importance of the financial effects of measures being imposed pursuant to this Regulation, ~~implementing~~ powers should be conferred on the Council which should act on the basis of a Commission proposal~~. To facilitate the adoption of decisions which are required to protect the financial interests of the Union, reversed qualified majority voting should be used~~ for a Council decision.

Amendment 89 #

Proposal for a regulation
Recital 15

Amendment 90 #

Proposal for a regulation
Recital 15

Amendment 91 #

Proposal for a regulation
Recital 16

(16) Before proposing and proceeding with the adoption of any measure pursuant to this Regulation, the Commission should inform the Member State concerned why it considers that a generalised deficiency regarding the rule of law might exist in that Member State. The Member State should be allowed to submit its observations. The Commission and the Council should take those observationsand the Council should take the observations submitted by the Member State concerned into account.

Amendment 92 #

Proposal for a regulation
Recital 17

(17) The Council should vary or lift measures with suspensive effect on a proposal from the Commission, if the situation leading to the imposition of those measures has been sufficiently remedied.

Amendment 93 #

Proposal for a regulation
Article 1 – paragraph 1

This Regulation establishes the rules necessary for the protection of the Union’s budget in the case of ~~generalised deficiencies as regards~~occurred determination of the existence of a serious and persistent breach of the rule of law ~~in the~~by a Member States.

Amendment 94 #

Proposal for a regulation
Article 1 – paragraph 1

This Regulation establishes the rules necessary for the protection of the Union’s budget in the case of generalised deficiencies as regards the rule of law, human rights and democracy in the Member States.

Amendment 95 #

Proposal for a regulation
Article 2 – paragraph 1 – point a

(a) 'democracy, the rule of law~~' refers to the Union valu~~ and fundamental rights' are enshrined in Article 2 of the Treaty on European Union ~~which~~and includes the principles of legality, implying a transparent, accountable, democratic and pluralistic process for enacting laws; free and fair elections, legal certainty; prohibition of arbitrariness of the executive powers; effective judicial protection by independent courts~~, including of fundamental rights~~; separation of powers and equality before the law; and the fundamental rights as stipulated in the Charter of Fundamental Rights of the EU and in the European Convention for the Protection of Human Rights and Fundamental Freedoms;

Amendment 96 #

Proposal for a regulation
Article 2 – paragraph 1 – point a

(a) 'the rule of law, human rights and democracy' refers to the ~~Union value~~provisions enshrined in Articles 2 and 6 of the Treaty on European Union ~~which~~and in the Charter of Fundamental Rights of the European Union, and includes also the principles of legality, implying a transparent, accountable, democratic and pluralistic process for enacting laws; legal certainty; prohibition of arbitrariness ~~of the execu~~; access to justivce ~~powers;~~and effective judicial protection byefore independent and impartial courts, including ~~of fundamental~~judicial review of administrative acts; respect for human rights; separation of powers; non-discrimination and equality before the law;

Amendment 97 #

Proposal for a regulation
Article 2 – paragraph 1 – point b

(b) '~~generalised deficiency as regards the rule of law' means a widespread or recurrent prac~~serious and persistent breach of the rule of law' means the occurred determination, pursuant to Article ~~or omission, or measure by public authorities which affects the rule of law~~7(2) TEU, of the existence of a serious and persistent breach of the rule of law by a Member State;

Amendment 98 #

Proposal for a regulation
Article 2 – paragraph 1 – point b

(b) 'generalised deficiency as regards the rule of law~~' means a widespread or recurrent~~, human rights and democracy' means any situation where a systemic threat to the rule of law, human rights and democracy may be established or where they are directly or indirectly undermined in a systemic way, either by the combined impact of practice ors, omissions, or measures or inactions by public authorities ~~which affects the rule of law;~~ or by widespread or recurrent practices, omissions, measures or inactions by public authorities;

Amendment 99 #