What changed between the plenary report and the adopted text

Removed:(d) for the reforms and investments, a legally binding indicative ex-ante costing and measurable timetable, and the envisaged payment conditions for release of funds in the form of qualitative and quantitative steps in the form of concrete targets and milestones to be implemented by 31 August 2027 at the latest;

Removed:(e) the arrangements for the effective monitoring, reporting and evaluation of the Reform Agenda by the Beneficiary, applying methodologies from the Better Regulation Guidelines, including the proposed measurable qualitative and quantitative steps and relevant indicators set out in paragraph 2;

Removed:(f) an explanation of the Beneficiary’s system and planned measures to effectively prevent, detect and correct irregularities, fraud, corruption, high-level corruption, conflicts of interests, organised crime and money laundering and to enforce State aid control rules, and the proposed measures to address existing deficiencies in the first years of the implementation of the Reform Agenda;

Removed:(fa) for the preparation and, where available, for the implementation of Reform Agendas, a summary of the consultation process, conducted in accordance with the national legal framework, of relevant stakeholders, including national parliaments, local and regional representative bodies and authorities, social partners and civil society organisations, and how the input of those stakeholders is reflected in Reform Agendas;

Removed:(fb) the arrangements that aim to avoid double funding from the Facility and other Union programmes or donors, in particular support provided under Regulation (EU) 2021/1529;

Removed:(fc) information on the actual and planned contributions from other donors;

Removed:(fd) an explanation of how the Beneficiaries shall ensure an adequate level of protection of the financial interests of the Union by applying comparable standards as provided for in Regulation (EU, Euratom) 2018/1046 and other related Union law;

Removed:(fe) provisions facilitating transparency and accountability through the means of easy public access to information related to the distribution of Facility funds;

Removed:(g) any other relevant information.

Removed:▌

Removed:2a. The Reform Agendas shall be results-based and include indicators for assessing progress towards the achievement of the general and specific objectives set out in Article 3. Those indicators shall be based on internationally agreed indicators and those already available in relation to Beneficiaries' policies. Indicators shall also, to the extent possible, be coherent with the key performance indicators included in the Instrument for Pre-Accession assistance (IPA III) Results Framework, in the EFSD+ Results Measurement Framework and in the WBIF and shall also include indicators on consultation and transparency. The indicators shall be defined, specific, measurable, achievable, relevant, and time-Bound. Each indicator shall provide for quantitative and qualitative thresholds in order for the payment conditions to be considered as satisfactorily fulfilled.

Removed:2b. The Commission shall be empowered to adopt delegated acts to supplement this Regulation in order to set out the common indicators to be used for reporting on the progress and for the purpose of monitoring and evaluation of the Facility towards the achievement of the general and specific objectives.

Removed:1. The Commission shall assess the relevance, comprehensiveness and appropriateness of each Beneficiary’s Reform Agenda or, where applicable, any amendment to that Agenda, without undue delay. When carrying out its assessment, the Commission shall act in close cooperation with the Beneficiary concerned, and may make observations or seek additional information or require the Beneficiary to review or modify its Reform Agenda.

Removed:2. When assessing the Reform Agendas, the Commission shall take into account relevant available analytical information on the Beneficiary, the justification and the elements provided by the Beneficiary as referred to in Article 13, as well as any other relevant information such as the information listed in Article 11.

Removed:3. In its assessment, the Commission shall consider in particular the following criteria:

Removed:(a) whether the Reform Agenda represents a needs-based, relevant, comprehensive, coherent and adequately balanced response to the objectives set out in Article 3;

Removed:(aa) whether the Reform Agenda and its measures are consistent with the principles, strategies, plans and programmes referred to in Articles 4 and 11;

Removed:(b) whether the Reform Agenda can be expected to accelerate progress towards bridging the socio-economic gap between the Beneficiary and the Union, and thereby enhances their economic, social and environmental development and supports the convergence towards the Union’s standards, reduces inequalities and reinforces social cohesion;

Removed:(c) whether the Reform Agenda can be expected to accelerate the transition of the Beneficiaries towards sustainable, climate-neutral and climate resilient and inclusive economies by improving regional connectivity, making progress on the twin transition of green and digital, including biodiversity, reducing strategic dependencies and boosting research and innovation, education, training, employment and skills and the wider labour market, with particular attention on youth;

Removed:(ca) whether the measures included in Reform Agenda are compatible with the principles of ‘do no significant harm’ and of ‘leaving no one behind’;

Removed:(cb) whether the Reform Agenda can be expected to promote:

Removed:(i) 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) gender equality and the empowerment of women and girls,

Removed:(v) 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:(vi) the protection of whistleblowers;

Removed:(d) whether the Reform Agenda can be expected to further strengthen the fundamentals of the enlargement process as defined in Article 3.2 point (i);

Removed:(e) whether the Reform Agenda complies with the relevant preconditions and payment conditions;

Removed:(f) whether the payment conditions proposed by the Beneficiary are appropriate and ambitious, consistent with the assessment from the latest Enlargement Package, as well as sufficiently meaningful and clear to allow for the corresponding release of funds in case of their fulfilment and whether the proposed reporting indicators are appropriate and sufficient to monitor and report on the progress made towards the overall objectives;

Removed:(g) whether the arrangements proposed by the Beneficiary are expected to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interests, organised crime and money laundering as well as to effectively investigate and prosecute criminal offences affecting the funds under the Facility, and ensure that there is no double funding from the Facility and other Union programmes, in particular support provided under Regulation (EU) 2021/1259, as well as other donors from the Facility and other Union programmes as well as other donors;

Removed:(ga) whether the arrangements proposed by the Beneficiary are expected to ensure an adequate level of protection of Union financial interests by applying comparable standards as provided for in Regulation (EU, Euratom) 2018/1046;

Removed:(gb) whether the Reform Agenda effectively reflects the inputs of relevant stakeholders, including national parliaments, local and regional representative bodies and authorities, social partners and civil society organisations.

Removed:4. For the purpose of the assessment of the Reform Agendas submitted by the Beneficiaries, the Commission may be assisted by independent experts.

Removed:4a. The Commission shall request the Beneficiary to review or modify its Reform Agenda to address the potential risks where the outcome of its assessment reveals that some or all criteria as stated in Article paragraph 3 are not met. Such a revision would be aligned with the approval process for the cross-border programmes in which the Beneficiaries participate.

Removed:1. In the case of a positive assessment ▌of ▌the Reform Agenda submitted by the Beneficiary, in accordance with Article 14 or, where applicable, of its amendment submitted in accordance with Article 16, the Commission is empowered to adopt a delegated act in accordance with Article 26 to supplement this Regulation with provisions setting out the matters referred to in paragraphs 2 and 3 of this Article ▌.

Removed:2. The delegated act shall outline the necessary reforms to be implemented by the Beneficiary, identify the specific investment areas to be supported and set out the ▌conditions under which payments will be made under the Reform Agenda, including the indicative timetable, and the milestones and targets required for the disbursal of the amounts referred to in Article 6(1)((a) and (2). The delegated act shall serve as a critical instrument in guiding the Beneficiary's actions towards the fulfilment of the agreed-upon objectives and ensuring accountability and progress in the reform process.

Removed:3. The delegated act shall also lay down:

Removed:(a) the indicative amount of overall funds available to the Beneficiary, and the scheduled instalments to be released including pre-financing, structured in accordance with Article 13, once the Beneficiary has achieved satisfactory fulfilment of the relevant payment conditions in the form of qualitative and quantitative steps identified in relation to the implementation of the Reform Agenda;

Removed:(b) the breakdown by instalment of financing between loan support and non-repayable support;

Removed:(c) the time limit by which the final payment conditions for the reforms must be completed;

Removed:(d) the arrangements and timetable for monitoring, reporting and implementation of the Reform Agenda, in particular the involvement of the national parliaments of the Beneficiaries and other stakeholders, including, where relevant, measures necessary for complying with Article 24;

Removed:(e) the indicators referred to in Article 13(2) for assessing progress towards the achievement of the general and specific objectives in Article 3;

Removed:(ea) the Commission’s assessment of the preconditions as referred to in Article 5;

Removed:(eb) the arrangements for partial payments, indicating precisely the proportion of each relevant payment condition in each instalment scheduled to be released;

Removed:(ec) how the reversal of measures or the non-fulfilment of preconditions after completion of the Facility shall be assessed;

Removed:(ed) the obligation for the Beneficiary to lodge a financial guarantee, acceptable to the accounting officer of the Commission, of 5 % of the financial envelope of the Reform Agenda, which shall be enforceable on demand by the Commission when it assesses that, after the implementation period of the Facility has ended, the Beneficiary has reversed at least one measure in the Reform Agenda.

Removed:1. Where the Reform Agenda, including relevant payment conditions, is no longer achievable by the Beneficiary, either partially or totally, because of objective circumstances, the Beneficiary may propose an amended Reform Agenda. In that case, the Beneficiary may make a reasoned request to the Commission to amend the delegated act referred to in Article 15(1).

Removed:2. The Commission may, after informing the European Parliament and the Council, amend the delegated act, in particular to take into account a change of the amounts available in line with the principles under Article 21.

Removed:3. Where the Commission considers that the reasons put forward by the Beneficiary justify an amendment to the Reform Agenda, the Commission shall assess the amended Agenda in accordance with Article 14 and may amend the delegated act referred to in Article 15(1) without undue delay.

Removed:4. In an amendment, the Commission may accept timelines for payment conditions extending into 2028. This does not affect the final deadline set in Article 21(8).

Removed:1. In order to finance the support under the Facility in the form of loans, the Commission shall be empowered, on behalf of the Union, to borrow the necessary funds on the capital markets or from financial institutions in accordance with Article 220a of Regulation (EU, Euratom) 2018/1046.

Removed:2. By way of derogation from Article 220(4) of the Financial Regulation the disbursements of the loan may be implemented through the WBIF on behalf of the Beneficiary. Recovered amounts shall be transferred to the Beneficiary.

Removed:3. The Commission shall enter into a loan agreement with the Beneficiary. The loan agreement shall lay down the maximum loan amount, the availability period and the detailed terms and conditions of the support under the Facility in the form of loans. The loans shall have maximum duration of 40 years as of the signature of the loan agreement.

Removed:In addition to and by way of derogation from Article 220(5) of Regulation (EU, Euratom) 2018/1046, the loan agreement shall contain the amount of pre-financing and rules on clearing of pre-financing. The Commission shall transmit to the European Parliament and the Council, simultaneously, the following elements:

Removed:(a) the amount of the loan in EUR;

Removed:(b) the average maturity of the loan;

Removed:(c) the pricing formula, and the availability period of the loan;

Removed:(d) the maximum number of instalments and a clear and precise repayment schedule.

Removed:In respect of loan amounts implemented through the WBIF, the loan agreement shall also: