What changed between the plenary report and the adopted text

Added:INTERINSTITUTIONAL AGREEMENT BETWEEN THE EUROPEAN PARLIAMENT, THE COUNCIL OF THE EUROPEAN UNION AND THE EUROPEAN COMMISSION ON BUDGETARY DISCIPLINE, ON COOPERATION IN BUDGETARY MATTERS AND ON SOUND FINANCIAL MANAGEMENT, AS WELL AS ON NEW OWN RESOURCES, INCLUDING A ROADMAP TOWARDS THE INTRODUCTION OF NEW OWN RESOURCES

Removed:Introduction

Added:THE EUROPEAN PARLIAMENT, THE COUNCIL OF THE EUROPEAN UNION AND THE EUROPEAN COMMISSION,

Removed:On 2 May 2018 the Commission presented its proposals for a new multiannual financial framework (MFF) for the years 2021 to 2027.

Added:hereinafter referred to as the "Institutions",

Removed:The proposal for a new Council Regulation laying down the multiannual financial framework for the years 2021 to 2027 was accompanied by a proposal for a Council decision on the system of Own Resources of the European Union and three related proposals, as well as a proposal for an Interinstitutional Agreement (IIA)between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management and a proposal for a Regulation of the European Parliament and of the Council on the protection of the Union's budget in the case of generalised deficiencies as regards the rule of law in the Member States.

Added:Having regard to the Treaty on the Functioning of the European Union, and in particular Article 295 thereof,

Removed:As part of the EU’s response to the COVID-19 crisis, and responding to the call of the European Parliament for a recovery fund, on 27 May 2020 the Commission proposed a European Recovery Plan (Next Generation EU), including a new Recovery and Resilience Facility, and amended its MFF and Own Resources proposals, the draft IIA and several other MFF related proposals.

Added:HAVE AGREED AS FOLLOWS:

Removed:After the European Council reached an agreement on the Recovery Fund and the 2021-2027 MFF on 21 July 2021, the European Parliament adopted a resolution on the conclusions of the European Council, in which, while welcoming the EU Heads of State and Governments’ acceptance of a recovery fund, Parliament stated that it could not accept the political agreement reached in its current form, expressed its readiness to enter into negotiations with Council to improve the political agreement on the 2021-2027 MFF and outlined its priorities (a rule of law mechanism, own resources, EU flagship programmes, horizontal issues, Recovery and Resilience Facility and democratic principle, a safety net for beneficiaries of EU programmes or ‘contingency plan) with a view to achieving an overall agreement.

Added:1. The purpose of this Agreement is to implement budgetary discipline, to improve the functioning of the annual budgetary procedure and cooperation between the Institutions on budgetary matters as well as to ensure sound financial management, and to implement a cooperation and establish a roadmap towards the introduction, over the period of the multiannual financial framework 20212027 ("MFF 20212027"), of new own resources that are sufficient to cover the repayment of the European Union Recovery Instrument established under Council Regulation (EU) 2020/…+ (the "EURI Regulation").

Removed:A political agreement on a rule of law conditionality mechanism was reached on Thursday 5 November.

Added:2. Budgetary discipline as referred to in this Agreement covers all expenditure. This Agreement is binding on the Institutions for as long as it is in force. The Annexes to this Agreement form an integral part thereof.

Removed:The European Parliament and Council entered into negotiations on the MFF, the own resources decision and the IIA on 27 August. The three institutions reached a political agreement on 10 November 2020.

Added:3. This Agreement does not alter the respective budgetary and legislative powers of the Institutions as laid down in the Treaties, in Council Regulation (EU, Euratom) 2020/…+ (the "MFF Regulation"), in Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (the "Financial Regulation") and in Council Decision (EU, Euratom) 2020/…++ (the "Own Resources Decision"), and is without prejudice to the powers of national parliaments in respect of own resources.

Removed:Interinstitutional Agreement between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management as well as on new own resources, including a roadmap for the introduction of new own resources, resulting from the political agreement

Added:4. Any amendment of this Agreement requires the common agreement of the Institutions.

Removed:The interinstitutional agreement sets out provisions for the implementation of the multiannual financial framework. It is organised in four parts:

Added:5. This Agreement is in four parts:

Change 3

Changed:Part I contains provisions related to the multiannual financial framework (MFF) and to the thematic and non-thematic special instruments.instruments;

Change 4

Changed:Part II relates to interinstitutional cooperation in budgetary matters.matters;

Change 5

Changed:Part III contains provisions related to the sound financial management of Union funds.funds;

Change 6

Changed:Part IV contains provisions related to the quality and comparability of data on beneficiaries within athe viewcontext toof protectingthe protection of the Union’sUnion budgetbudget.

Change 7

Removed:The IIA is legally binding on the institutions. A number of important requests from Parliament were accepted and incorporated into the IIA, in particular provisions on:

Added:6. This Agreement enters into force on …+ and replaces the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management.

Removed:- cooperation on a roadmap towards the introduction of new own resources over the period of the multiannual financial framework 2021-2027, with a view to covering at least the repayment of funds used for expenditure under the Next Generation EU fund (NGEU) and the related interests, as well as guiding principles for the introduction of such a basket of new own resources;

Added:PART I

Removed:- cooperation between the institutions to ensure appropriate involvement of the budgetary authority in the governance of external assigned revenue under NGEU and full transparency and visibility of all funds under NGEU;

Added:MFF AND SPECIAL INSTRUMENTS

Removed:- the monitoring of spending on climate and biodiversity objectives , gender equality and mainstreaming and the UN Sustainable Development Goals;

Added:A. PROVISIONS RELATED TO THE MFF

Removed:- enhanced flexibility instruments to respond to unforeseen needs;

Added:7. The Institutions shall, for the purposes of sound financial management, ensure as far as possible during the budgetary procedure and at the time the general budget of the Union is adopted that sufficient margins are left available beneath the ceilings for the various headings of the MFF, except for the sub-heading "Economic, social and territorial cohesion".

Removed:- cooperation and dialogue between the institutions to facilitate the adoption of a new MFF or a revision thereof, in accordance with Article 312(5) and Article 324 TFEU;

Added:Updating of forecasts for payment appropriations

Removed:- standardised measures to collect, compare and aggregate information on the final beneficiaries of Union funding to enhance the protection of the Union budget and Next Generation EU against fraud and irregularities.

Added:8. Every year, the Commission shall update the forecasts for payment appropriations for the period at least until 2027. That update shall take into account all relevant information, including the real implementation of budget appropriations for commitments and budget appropriations for payments, as well as the implementation forecasts. It shall also consider the rules designed to ensure that payment appropriations develop in an orderly manner compared to commitment appropriations and to the growth forecasts of the Union's gross national income (GNI).