What changed between the plenary report and the adopted text

Removed:2. The reciprocal access referred to in paragraph 1 point (b), may be granted for a limited period of at least one year, whenever a country grants eligibility on equal terms to entities from the Union and from countries eligible under the Facility.

Removed:The Commission shall decide on the reciprocal access after consulting the concerned Beneficiary.

Removed:3. All supplies and materials financed and procured under this Facility shall originate from any country referred to paragraph 1 point (a) and point (b), unless if the supplies and materials cannot be sourced at reasonable conditions in any of those countries. In that case, the procurement shall be in line with the applicable Union regulations on due diligence in supply chains. In addition, the rules on restrictions in paragraph 6 apply.

Removed:4. The eligibility rules under this Article shall not apply to, and shall not create nationality restrictions for, natural persons employed or otherwise legally contracted by an eligible contractor or, where applicable, subcontractor except where the nationality restrictions are based on the rules provided for in paragraph 6.

Removed:5. For actions jointly co-financed by an entity or implemented in direct management or indirect management with entities as referred to in Article 62(1), point (c) of Regulation (EU, Euratom) 2018/1046, the rules of those entities shall also apply. This is without prejudice to the restrictions established under paragraph 6, which shall be duly reflected in the agreements concluded with those entities.

Removed:6. The eligibility rules and origin of supplies and materials referred to in paragraphs 1 and 3 and the nationality of the natural persons referred to in paragraph 4 may be restricted with regard to the nationality, geographical location or nature of the legal entities participating to award procedures as well as with regard to the geographical origin of supplies and materials, in the following cases:

Removed:(a) where such restrictions are required on account of the specific nature and/or objectives of the activity or specific award procedure and/or where these restrictions are necessary for the action’s effective implementation;

Removed:(b) where the action or specific award procedures affect security or public order, in particular concerning strategic assets and interests of the Union, its Member States, or any of the Beneficiaries, including the security, resilience and protection of integrity of digital infrastructure (including 5G network infrastructure), communication and information systems, and related supply chains and the action or award procedure is not in line with the Economic Security Strategy, upon prior approval by the Audit Board.

Removed:7. Tender applicants and candidates from non-eligible countries may be accepted as eligible only in substantiated cases of urgency or where services are unavailable in the markets of the countries or territories concerned, or in other duly substantiated cases where application of the eligibility rules would make the realisation of an action impossible or exceedingly difficult, with full transparency and supported by legitimate justification.

Removed:7a. Regarding the functioning of public procurement and state aid controls, the Commission shall ensure, through annual audit and controls that the system is remaining functional. In that respect, the Commission shall submit an annual report on the functioning of such controls in the Beneficiary to the European Parliament and to the Council.

Removed:7b. If the Commission’s assessment of public procurement and state aid controls is positive, the assessment shall be reflected in the implementation of funds from the Instrument for Pre-Accession Assistance.

Removed:1. The Commission shall conclude a Framework Agreement with each Beneficiary for the implementation of the Facility setting out specific arrangements for the management, control, supervision, monitoring, evaluation, reporting and audit of funds under the Facility, as well as to prevent, detect, investigate and correct irregularities, fraud, corruption and conflicts of interest. The Framework Agreement shall be preceded by a public consultation and a positive assessment of the respective national parliament.

Removed:1a. Monitoring committees shall be set up, inspired by the European Code of Conduct on Partnership following the best practices for the preparation of calls for proposals, progress reports, monitoring and evaluation of projects, measures and activities.

Removed:2. The Framework Agreement shall be complemented by loan agreements in accordance with Article 17, setting out specific provisions for the management and implementation of funding provided in the forms of loans. Framework Agreements, including any related documentation, shall be transmitted to the European Parliament and the Council simultaneously and without delay and shall be made public.

Removed:3. Funding, including pre-financing, shall only be granted to the Beneficiaries after a positive assessment by the Commission of fulfilment of the preconditions as referred to in Article 5, and after the respective Framework Agreements and the applicable loan agreements have entered into force.

Removed:4. The Framework Agreement and the loan agreements concluded with each of the Beneficiaries, and agreements concluded with person or entities receiving Union funds, shall ensure that the obligations set out in Article 129 of Regulation (EU, Euratom) 2018/1046 are fulfilled.

Removed:5. The Framework Agreement shall lay down the necessary detailed provisions concerning:

Removed:(a) the commitment of the Beneficiary to make decisive progress towards a robust legal framework to fight fraud, and establish more efficient and effective control systems, including appropriate mechanisms and measures to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interest as well as to avoid, report and counter any corrupt practices, nepotism, favouritism or undue regional or sectoral concentration of resource allocation or use and to strengthen the fight against money laundering, organised crime, the misuse of public funds, terrorism financing, tax avoidance, tax fraud or tax evasion , and other illegal activities affecting the funds provided under the Facility;

Removed:(b) the rules on the release, withholding, reduction and redistribution of funds in accordance with Article 21.

Removed:(c) the activities related to management, control, supervision, monitoring, evaluation, reporting and audit under the Facility, as well as system reviews, investigations, anti-fraud measures and cooperation;

Removed:(d) the rules on reporting to the Commission on whether and how the payment conditions referred to in Article 12 are fulfilled, including by allowing the examination of the fulfilment of milestones and targets connected to reforms and investments;

Removed:(e) the rules on taxes, duties and charges in accordance with Article 27(9) and (10) of Regulation (EU) 2021/947;

Removed:(ea) the recognition of the responsibilities of the Audit Board referred to in Article XX, and the modalities of the Beneficiaries’ cooperation with it;

Removed:(f) the measures to prevent, detect, investigate and correct irregularities, fraud, corruption and conflicts of interest, and the obligation to notify the Audit Board, the Commission, the Court of Auditors and OLAF and, where applicable, the EPPO, without delay of suspected or actual cases of irregularities, fraud, corruption and conflict of interests and other illegal activities affecting the funds provided under the Facility and their follow-up, including when they concern the entity implementing the fund under the loan agreement;

Removed:(g) the obligations referred to in Articles 22 and 23, including precise rules and timeframe on collection of data by the Beneficiary and access for the Commission,OLAF, the European Court of Auditors and, where applicable, EPPO, including for information held by the entity implementing the fund under the loan agreement;

Removed:(ga) to provide a similar level of access to information and authority to carry out on-the-spot controls as the Commission and the Court of Auditors to the independent external auditor appointed by the Audit Board; the Western Balkans shall also use the Early Detection and Exclusion System and report irregularities in relation to the use of the funds to the Commission;

Removed:(h) a procedure to ensure that disbursement requests for the loan support fall within the available loan amount, taking into consideration Article 6(3);

Removed:(i) the right of the Commission to reduce proportionately the support provided under the Facility and recover any amount spent to achieve the objectives of the Facility or to ask for early repayment of the loan, in cases of irregularities, fraud, corruption and conflicts of interests affecting the financial interests of the Union that have not been corrected by the Beneficiary, or of a serious breach of an obligation resulting from the Framework Agreement;

Removed:(j) rules and modalities for the Beneficiaries to report for the purpose of monitoring the implementation of the Facility and assess the achievements of the objectives set out in Article 3.

Removed:1. By way of derogation from Article 12(4) of Regulation (EU, Euratom) 2018/1046, unused commitment and payment appropriations under the Facility shall be automatically carried over and may be committed and used, respectively, up to 31 December of the following financial year. The amount carried over shall be used first in the following financial year.

Removed:2. The Commission shall submit to the European Parliament and the Council information on commitment appropriations carried over, including the amounts involved, in accordance with Article 12(6) of Regulation (EU, Euratom) 2018/1046.

Removed:3. By way of derogation from Article 15 of Regulation (EU, Euratom) 2018/1046 on making appropriations available again, commitment appropriations corresponding to the amount of decommitments made as a result of total or partial non-implementation of an action under the Facility shall be made available again to the benefit of the budget line of origin.

Removed:4. Budgetary commitments for actions extending over more than one financial year may be broken down over several years into annual instalments, in accordance with Article 112(2) of Regulation (EU, Euratom) 2018/1046.

Removed:Reform Agendas

Removed:1. In order to receive any support under the Facility, each Beneficiary shall submit to the Commission a Reform Agenda for the duration of the Facility, building on the structural reforms part of the latest Economic Reform Programme and the related Joint Policy Guidance agreed at the Economic and Financial Dialogue in May 2023, its national growth strategy where applicable, the revised enlargement methodology, the most recent Enlargement Package and the Economic and Investment Plan for the Western Balkans.

Removed:2. The Reform Agendas shall provide an overarching framework to achieve the general and specific objectives set out in Article 3, setting out the reforms to be undertaken by the Beneficiary, as well as investment areas, towards the achievement of the general and specific objectives set out in Article 3. The Reform Agendas shall comprise measures for the implementation of reforms and investments through a comprehensive and coherent package. In the areas of the ‘fundamentals’, including the rule of law, the fight against corruption, including high-level corruption, fundamental rights and the freedom of expression, the Reform Agendas shall reflect the assessments in the most recent Enlargement Package and the Rule of law report, as well as of the relevant international institutions, including OSCE/ODIHR and the Venice Commission and the relevant reports and resolutions from the European Parliament. The Reform Agendas shall include an estimation of the financial amounts needed for the implementation of the reforms and investments under the Facility in line with the general and specific objectives set out in Article 3.

Removed:3. The Reform Agenda shall define specific targets and milestones within the Reform Agendas for each priority area, such as energy efficiency, renewable energy adoption, digital infrastructure development, judicial reforms, and anti-corruption measures. Those targets shall be specific, measurable, achievable, relevant, and time-bound, facilitating effective monitoring and evaluation of progress and be consistent with the latest macroeconomic and fiscal policy framework submitted to the Commission in the context of the Economic and Financial Dialogue with the EU.

Removed:4. The Reform Agendas shall be consistent with and support the reform priorities identified in the context of the Beneficiary’s accession path, and other relevant documents, such as the Stabilisation and Association Agreement, the National Energy and Climate Plan, the Nationally Determined Contribution under the Paris Agreement and the ambition to reach climate neutrality by 2050 at the latest.

Removed:5. The Reform Agendas shall respect the general principles set out in Article 4.

Removed:6. The Commission shall invite the Beneficiaries to submit within three months from the entry into force of this Regulation their respective Reform Agendas. National economic reform programmes and the Commission’s annual progress reports shall serve as the starting point. The Commission shall transmit the Beneficiaries’ Reform Agendas to the European Parliament and the Council as soon as they are available.

Removed:7. In case of a redistribution of support under the Facility leading to a Beneficiary receiving additional support, the Commission shall invite the Beneficiary to submit within three months a revised Reform Agenda for the remaining duration of the Facility. The Commission shall inform the European Parliament and the Council prior to taking any decision on the redistribution of financial support and inviting Beneficiaries to submit a revised Reform Agenda.

Removed:1. The Facility shall incentivise the implementation of the Reform Agenda of each Beneficiary by putting payment conditions on the release of funds. These payment conditions shall apply to funds under Article 6(2) point (a) and Article 6(3) and shall take the form of measurable qualitative or quantitative steps, and be linked to the achievement of concrete milestones and targets. Such steps shall reflect progress on specific socio-economic reforms, including on fundamentals of the enlargement process, Union values, rule of law, justice and fundamental rights, linked to the achievement of the different objectives of the Facility, set out in Article 3, consistent with the latest Enlargement Package and the Rule of Law Report.

Removed:The fulfilment of the payment conditions shall trigger full or partial release of funds, depending on the degree of their completion and fulfilment of the preconditions referred to in Article 5(1).

Removed:2. In respect of financing implemented through the fund referred to in Article 19, the fulfilment of the payment conditions referred to in paragraph 1 shall constitute a preliminary validation. The funds shall be paid following receipt of a payment request from the ´fund managers of the joint fund established under the WBIF for receiving donors’ contributions.

Removed:Funds under the Facility shall not support activities or measures, which could compromise the integrity or institutional framework of a Beneficiary, in accordance with its constitutional order and relevant international commitments.

Removed:3. Macro financial stability, sound public financial management, transparency and oversight of the budget are general conditions for payments that have to be fulfilled for any release of funds.

Removed:1. The Reform Agendas shall in particular set out the following elements, which shall be reasoned and substantiated:

Removed:(a) measures constituting a needs-based coherent, comprehensive and adequately balanced response to the objectives set out in Article 3 in the form of measurable milestones and targets, including structural reforms, investments, and measures to ensure compliance with preconditions if appropriate;

Removed:(aa) measures related to justice, the fight against corruption, fraud and organised crime, covered under negotiating chapters 23 and 24, public finance management and internal control, covered under negotiating chapter 32, as well as state aid control, covered under negotiating chapter 8;

Removed:(b) an explanation of how the measures are consistent with the general principles referred to in Article 4, as well as the requirements, strategies, plans and programmes referred to in Articles 4 and 11;

Removed:(c) an explanation of the extent to which the measures are expected to contribute to ▌:

Removed:(i) reinforcing democratic institutions, good governance, public administration and capacity building, media freedom and civil society;

Removed:(ii) international justice, good neighbourly relations and reconciliation;

Removed:(iii) decentralisation and local development;

Removed:(iv) climate, biodiversity and environmental objectives, in particular through convergence with Union climate and environmental standards and compatibility with the principle of ’do no significant harm’;

Removed:(v) social cohesion, including progress towards Union social and economic standards, reduction of inequality, equality and the inclusion of vulnerable groups;

Removed:(vi) the digital transformation, innovation, education, training and employment;

Removed:(vii) gender equality and the empowerment of women and girls, including the protection and promotion of women’s and girls’ rights in line with EU Gender Action Plans and relevant Council conclusions and international conventions;

Removed:(viii) non-discrimination, tolerance and the respect for the rights of persons belonging to all minorities, including ethnic and religious minorities and the LGBTI community;

Removed:(ix) ensure the protection of whistleblowers;