What changed between the adopted text of 17 Jan 2019 and the adopted text of 4 Apr 2019

Removed: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 to the Council a proposal to transfer to a budgetary reserve an amount equivalent to the value of the measures adopted.

Added:Article 1 Subject matter

Removed: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.

Added: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.

Removed:Article 5 – paragraph 6 c (new): 6c. 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.

Added:Article 2 Definitions

Removed:Article 5 – paragraph 7: Deleted

Added:For the purposes of this Regulation, the following definitions apply:

Removed:Article 5 – paragraph 8: deleted

Added:a) 'the rule of law' refers shall be understood having regard to the Union value values enshrined in Article 2 of the Treaty on European TEU and in the criteria for Union which membership referred to in Article 49 TEU; it includes the principles of legality, implying a transparent, accountable, democratic and pluralistic process for enacting laws law; legal certainty; prohibition of arbitrariness of the executive powers; access to justice and effective judicial protection by before independent and impartial courts, including of fundamental rights as stipulated in the Charter of Fundamental Rights of the European Union and in international human rights treaties; separation of powers; non-discrimination and equality before the law; [Am. 29]

Removed:Article 6 – paragraph 1: 1. The Member State concerned may, at any time, submit to the Commission a formal notification including evidence to show that the generalised deficiency as regards the rule of law has been remedied or has ceased to exist.

Added: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, where it affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union; a generalised deficiency as regards the rule of law may also be the consequence of a systemic threat to the Union values enshrined in Article 2 TEU that affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union; [Am. 30]

Removed:Article 6 – paragraph 2: 2. At the request of the Member State concerned or on its own initiative, the Commission, taking into account any opinions of the Panel, 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 receipt of the formal notification. Once the generalised deficiencies as regards the rule of law which on the grounds of which the measures referred to in Article 4 were adopted cease to exist in full or in part, the Commission shall, 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 6c of Article 5 shall apply.

Added:c) 'government entity' means all any public authorities authority 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 […] 2018/1046 of the European Parliament and of the Council (the ‘Financial Regulation’). [Am. 31]

Removed: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).

Added:Article 2a Generalised deficiencies

Removed:Article 7: deleted / (deleted) / (deleted)

Added:The following shall, in particular, be considered generalised deficiencies as regards the rule of law where they affect or risk affecting the principles of sound financial management or the protection of the financial interests of the Union:

Removed:Article 7 a (new): Article 7a / 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, at the latest five years after its entry into force. / The report shall be accompanied where necessary by appropriate proposals.

Added:a) endangering the independence of judiciary, including 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, by influencing judicial staff in any way that jeopardises their impartiality or by interfering with the independence of attorneyship;

Removed: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.

Added: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;

Removed:Article 8 a (new): Article 8 a / Inclusion in the Financial Regulation / The contents of this Regulation shall be inserted into the Financial Regulation upon its next revision.

Added: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;

Added:d) endangering the administrative capacity of a Member State to respect the obligations of Union membership, including the capacity to effectively implement the rules, standards and policies that make up the body of Union law;

Added:e) measures that weaken the protection of the confidential communication between lawyer and client. [Am. 32]

Added:Article 3 Measures Risks for the financial interests of the Union [Am. 33]

Added: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 may be established when one or more of the financial interests of the Union following, in particular, are affected or risk being affected: [Am. 34]

Added: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; [Am. 35]

Added:aa) the proper functioning of the market economy, thereby respecting competition and market forces in the Union as well as implementing effectively the obligations of membership, including adherence to the aim of political, economic and monetary union; [Am. 36]

Added:ab) the proper functioning of the authorities carrying out financial control, monitoring and internal and external audits, and the proper functioning of effective and transparent financial management and accountability systems; [Am. 37]

Added: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; [Am. 38]

Added:c) the effective judicial review by independent courts of actions or omissions by the authorities referred to in points a), ab) and b) b); [Am. 39]

Added:d) the prevention and sanctioning of fraud, including tax 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; [Am. 40]

Added:e) the recovery of funds unduly paid;

Added:ea) the prevention and sanctioning of tax evasion and tax competition and the proper functioning of authorities contributing to administrative cooperation in tax matters; [Am. 41]

Added: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; [Am. 42]

Added:fa) the proper implementation of the Union budget following a systemic violation of fundamental rights. [Am. 43]

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

Added:(a) endangering the independence of judiciary;

Added:(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;

Added:(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. [Am. 44]

Added:Article 3a Panel of independent experts

Added:1. The Commission shall establish a panel of independent experts (‘the Panel’).

Added:The Panel shall be composed of independent experts in constitutional law and financial and budgetary matters. One expert shall be appointed by the national parliament of each Member State and five experts shall be appointed by the European Parliament. The composition of the Panel shall ensure gender balance.

Added:Whenever appropriate, representatives of relevant organisations and networks, such as the European Federation of Academies of Sciences and Humanities, the European Network of National Human Rights Institutions, the bodies of the Council of Europe, the European Commission for the efficiency of justice, the Council of Bars and Law Societies of Europe, the Tax Justice Network, the United Nations, the Organization for Security and Co-operation in Europe and the Organisation for Economic Co-operation and Development, may be invited as observers to the Panel in accordance with the rules of procedures referred to in paragraph 6.

Added:2. The advisory tasks of the Panel shall have as their objective to assist the Commission in identifying generalised deficiencies as regards the rule of law in a Member State that affect or risk affecting the principles of sound financial management or the protection of the financial interests of the Union.

Added:The Panel shall assess the situation in all Member States annually on the basis of quantitative and qualitative criteria and information, having due regard to the information and guidance referred to in Article 5(2).

Added:3. Each year the Panel shall make public a summary of its findings.

Added:4. As part of its advisory task and taking into account the outcome of the considerations under paragraph 2, the Panel may express an opinion about a generalised deficiency as regards the rule of law in a Member State.

Added:When expressing an opinion the Panel shall endeavour to reach a consensus. If no such consensus can be reached, the Panel shall express its opinion by a simple majority of its members.

Added:5. When adopting implementing acts pursuant to Article 5(6) and Article 6(2), the Commission shall take into account any relevant opinion expressed by the Panel in accordance with paragraph 4 of this Article.

Added:6. The Panel shall elect its chairperson from among its members. The Panel shall establish its rules of procedure. [Am. 45]

Added:Article 4 Content of Measures for the protection of the Union budget [Am. 46]

Added:1. When the conditions of Article 3 are fulfilled, one or more of the following appropriate measures may be adopted: [Am. 47]

Added:a) 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:

Added:(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;

Added:(2) a prohibition to enter into new legal commitments;

Added:b) where the Commission implements the Union’s budget in shared management pursuant to [point (b) of Article 62] of the Financial Regulation:

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