PURPOSE: to adopt contingency measures on the implementation and financing of the EU budget for 2019 in the event of Brexit without agreement.

LEGISLATIVE ACT: Council Regulation (EU, Euratom) 2019/1197 on measures concerning the implementation and financing of the general budget of the Union in 2019 in relation to the withdrawal of the United Kingdom from the Union.

CONTENT: after its withdrawal, the United Kingdom will no longer be a member of the European Union; the treaties and secondary legislation will no longer be applicable to that country. The United Kingdom or entities established on its territory will no longer be eligible for funding under Union programmes unless relevant provisions for the participation of third countries are incorporated in the legal acts of Union expenditure programmes.

This Regulation lays down rules on relations between the European Union, on the one hand, and the United Kingdom and its beneficiaries, on the other, as regards the financing and implementation of the general budget of the Union in 2019 in the absence of a withdrawal agreement. These rules shall allow the EU to continue to make payments to UK beneficiaries for contracts signed and decisions taken before the date of withdrawal, as long as the UK continues to pay its contribution set in the EU budget for 2019.

Under the agreed contingency framework, the eligibility of the United Kingdom and entities established in the United Kingdom for funding from the EU budget in 2019 shall be maintained provided that the United Kingdom has:

- confirmed in writing, by 30 April 2019 at the latest, that it will contribute to the financing of the EU budget for 2019 as adopted;

- made its first payment to the Union budget for the period after its withdrawal by 13 May 2019;

- confirmed in writing to the Commission its commitment to authorise audits and controls carried out entirely by the Union, in accordance with the applicable rules.

The Commission should adopt a decision on the fulfilment of the conditions.

As long as the conditions for eligibility of the United Kingdom and persons and entities established in the United Kingdom under this Regulation continue to be fulfilled, it is also appropriate to provide for their eligibility, in 2019, for the purposes of conditions set in calls, tenders, contests or any other procedure which may lead to financing from the Union's budget, with the exception of specific cases related to security and to the loss of membership of the United Kingdom in the European Investment Bank and to provide Union funding to them.

Such Union funding shall be limited to eligible expenditure incurred in 2019, except for public procurement contracts signed before the end of 2019.

In addition, the contingency measures shall make it possible to maintain the funding of beneficiaries from EU Member States where their eligibility depends on the United Kingdom's EU membership, provided that, before the date of withdrawal from the United Kingdom, the relevant contracts or legal decisions have been signed or adopted.

This urgent procedure shall cease to apply if the United Kingdom stops payments or if significant deficiencies have been observed in the execution of the controls and audits.

ENTRY INTO FORCE: 16.7.2019.

APPLICATION: from the date following that on which the Treaties cease to apply in the United Kingdom and in its territory in accordance with Article 50(3) of the TEU. The Regulation shall not apply if a withdrawal agreement with the United Kingdom entered into force on the above date.

Regulation 2019/1197
OJ L 189 15.07.2019, p. 0001

Results of vote in Parliament

The European Parliament adopted by 569 votes to 21, with 23 abstentions, a legislative resolution on the draft Council regulation on measures concerning the implementation and financing of the general budget of the Union in 2019 in relation to the withdrawal of the United Kingdom from the Union.

Parliament has given its consent to the draft Council Regulation.

The proposed Regulation seeks to lay down rules on the relations between the Union on the one hand, and the United Kingdom and its beneficiaries on the other as regards the financing and implementation of the general budget of the Union (‘the budget’) in 2019. It also seeks to avoid, or at least minimise, any unnecessary disruption for beneficiaries of EU spending programmes and other actions at the time of withdrawal, also with the expectation that this will facilitate a financial settlement between the Union and the United Kingdom.

The Council's draft defines the conditions under which the United Kingdom and persons and entities established in the United Kingdom could continue to be eligible in 2019 with regard to the agreements signed with them and the decisions adopted with regard to them until the date on which the Treaties cease to apply to and in the United Kingdom (date of withdrawal).

T8-0412/2019

The Committee on Budgets adopted the report by Jean ARTHUIS (ALDE, FR) on the draft Council regulation on measures concerning the implementation and financing of the general budget of the Union in 2019 in relation to the withdrawal of the United Kingdom from the Union.

The committee recommended that the European Parliament give its consent to the draft Council regulation.

A8-0197/2019

PURPOSE: to minimise the negative effects of the United Kingdom's withdrawal on the Union budget and on the implementation of Union policies.

PROPOSED ACT: Council Regulation.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act.

BACKGROUND: the United Kingdom and persons and entities established in United Kingdom are participating in a number of Union programmes or actions on the basis of the United Kingdom's membership in the Union. The participation takes place on the basis of agreements with the United Kingdom or persons or entities established in the United Kingdom or decisions in favour of the United Kingdom or persons or entities established in the United Kingdom which constitute legal commitments.

After withdrawal, the UK will no longer be member of the European Union; the Treaties and the secondary legislation will not be applicable to the United Kingdom. The United Kingdom or entities established in the United Kingdom will cease to be eligible to receive funding under those Union programmes, unless relevant provisions for participation of third countries are included in the legal acts of EU spending programmes.

It is therefore necessary to establish rules on relations between the European Union, on the one hand, and the United Kingdom and its beneficiaries, on the other hand, with regard to the financing and implementation of the general budget of the Union in 2019.

CONTENT: the proposed emergency framework lays down rules on relations between the European Union, on the one hand, and the United Kingdom and its beneficiaries, on the other, as regards the financing and implementation of the general budget of the Union in the absence of a withdrawal agreement. The purpose of this proposal is to avoid, or at least minimise, any unnecessary disruption for beneficiaries of EU spending programmes and other actions at the time of withdrawal, also with the expectation that this will facilitate a financial settlement between the Union and the United Kingdom.

The Council's draft lays down conditions under which the United Kingdom and persons and entities established in the United Kingdom could continue to be eligible in 2019 with regard to the agreements signed with them and the decisions adopted with regard to them until the date on which the Treaties cease to apply to and in the United Kingdom ('date of withdrawal').

The conditions would be that the United Kingdom has:

- confirmed the commitment in writing to the Commission to continue to pay a contribution to the budget in 2019 calculated on the basis of the estimated own resources from the United Kingdom as set out in the budget for 2019 as definitively adopted, that a first instalment has been paid by the United Kingdom;

- made its first payment to the Union budget for the period after its withdrawal by 13 May 2019;

- confirmed the commitment in writing to the Commission to allow audits and controls in full by the Union in compliance with the applicable rules. In view of the need for certainty, it is appropriate to limit the time for the fulfilment of the conditions.

In order to ensure that the proposed Regulation has a beneficial effect for all Member States, it is intended to deduct a specific amount from the amount of the United Kingdom's contribution to be entered in the general budget of the Union. This specific amount should benefit Member States, which would otherwise be disadvantaged as a result of the adoption of the Regulation, as specified in the specific practical arrangements establishing the distribution of payments due and charging the Commission with the disbursement of the specific amount.

As long as the conditions for eligibility of the United Kingdom and persons and entities established in the United Kingdom under this Regulation continue to be fulfilled, it is also appropriate to provide for their eligibility, in 2019, for the purposes of conditions set in calls, tenders, contests or any other procedure which may lead to financing from the Union's budget. These should be limited to eligible expenditure incurred in 2019, with the exception of certain public contracts signed before the end of 2019 and the United Kingdom direct payment scheme for farmers for the 2019 application year.

06823/2019

PURPOSE: to minimise the negative effects of the United Kingdom's withdrawal on the Union budget and on the implementation of Union policies.

PROPOSED ACT: Council Regulation.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act.

BACKGROUND: the United Kingdom and persons and entities established in United Kingdom are participating in a number of Union programmes or actions on the basis of the United Kingdom's membership in the Union. The participation takes place on the basis of agreements with the United Kingdom or persons or entities established in the United Kingdom or decisions in favour of the United Kingdom or persons or entities established in the United Kingdom which constitute legal commitments.

After withdrawal, the UK will no longer be member of the European Union; the Treaties and the secondary legislation will not be applicable to the United Kingdom. The United Kingdom or entities established in the United Kingdom will cease to be eligible to receive funding under those Union programmes, unless relevant provisions for participation of third countries are included in the legal acts of EU spending programmes.

It is therefore necessary to establish rules on relations between the European Union, on the one hand, and the United Kingdom and its beneficiaries, on the other hand, with regard to the financing and implementation of the general budget of the Union in 2019.

CONTENT: the proposed emergency framework lays down rules on relations between the European Union, on the one hand, and the United Kingdom and its beneficiaries, on the other, as regards the financing and implementation of the general budget of the Union in the absence of a withdrawal agreement. The purpose of this proposal is to avoid, or at least minimise, any unnecessary disruption for beneficiaries of EU spending programmes and other actions at the time of withdrawal, also with the expectation that this will facilitate a financial settlement between the Union and the United Kingdom.

The Council's draft lays down conditions under which the United Kingdom and persons and entities established in the United Kingdom could continue to be eligible in 2019 with regard to the agreements signed with them and the decisions adopted with regard to them until the date on which the Treaties cease to apply to and in the United Kingdom ('date of withdrawal').

The conditions would be that the United Kingdom has:

- confirmed the commitment in writing to the Commission to continue to pay a contribution to the budget in 2019 calculated on the basis of the estimated own resources from the United Kingdom as set out in the budget for 2019 as definitively adopted, that a first instalment has been paid by the United Kingdom;

- made its first payment to the Union budget for the period after its withdrawal by 13 May 2019;

- confirmed the commitment in writing to the Commission to allow audits and controls in full by the Union in compliance with the applicable rules. In view of the need for certainty, it is appropriate to limit the time for the fulfilment of the conditions.

In order to ensure that the proposed Regulation has a beneficial effect for all Member States, it is intended to deduct a specific amount from the amount of the United Kingdom's contribution to be entered in the general budget of the Union. This specific amount should benefit Member States, which would otherwise be disadvantaged as a result of the adoption of the Regulation, as specified in the specific practical arrangements establishing the distribution of payments due and charging the Commission with the disbursement of the specific amount.

As long as the conditions for eligibility of the United Kingdom and persons and entities established in the United Kingdom under this Regulation continue to be fulfilled, it is also appropriate to provide for their eligibility, in 2019, for the purposes of conditions set in calls, tenders, contests or any other procedure which may lead to financing from the Union's budget. These should be limited to eligible expenditure incurred in 2019, with the exception of certain public contracts signed before the end of 2019 and the United Kingdom direct payment scheme for farmers for the 2019 application year.

06823/2019

COM(2019)0064

PE634.809

COM(2019)0064
EUR-Lex

COM(2019)0064
EUR-Lex