What changed between the adopted text of 4 Apr 2019 and the adopted text of 16 Dec 2020

Removed: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;

Removed: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;

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

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

Removed: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]

Removed: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]

Removed: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]

Removed: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]

Removed: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]

Removed: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]

Removed: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]

Removed:e) the recovery of funds unduly paid;

Removed: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]

Removed: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]

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

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

Removed:(a) endangering the independence of judiciary;

Removed:(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:(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]

Removed:Article 3a Panel of independent experts

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

Removed: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.

Removed: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.

Removed: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.

Removed: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).

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

Removed: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.

Removed: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.

Removed: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.

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

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

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

Removed: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:

Removed:(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;

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

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

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

Removed:(2) a suspension of commitments;

Removed:(3) a reduction of commitments, including through financial corrections or transfers to other spending programmes;

Removed:(4) a reduction of pre-financing;

Removed:(5) an interruption of payment deadlines;

Removed:(6) a suspension of payments.

Removed:2. Unless the decision adopting the measures provides otherwise, the imposition of appropriate measures shall not affect the obligation of government entities referred to in point (a) of paragraph 1 or of Member States referred to in point (b) of paragraph 1 to implement the programme or fund affected by the measure, and in particular the obligation to make payments to final recipients or beneficiaries.

Removed:3. The measures taken shall be proportionate to the nature, gravity, duration and scope of the generalised deficiency as regards the rule of law. They shall, insofar as possible, target the Union actions affected or potentially affected by that deficiency. [Am. 48]

Removed:3a. The Commission shall provide information and guidance for the benefit of final recipients or beneficiaries on the obligations by Member States referred to in paragraph 2 via a website or internet portal.

Removed:The Commission shall also provide, on the same website or portal, adequate tools for final recipients or beneficiaries to inform the Commission about any breach of these obligations that, in the view of these final recipients or beneficiaries, directly affects them. This paragraph shall be applied in a manner that ensures protection of persons reporting on breaches of Union law, in line with the principles set out in Directive XXX (Directive on the protection of persons reporting on breaches of Union law). Information provided by final recipients or beneficiaries in accordance with this paragraph may only be taken into account by the Commission if accompanied by a proof that the concerned final recipient or beneficiary has lodged a formal complaint to the competent authority. [Am. 49]

Removed:3b. Based on the information provided by the final recipients or beneficiaries in accordance with paragraph 3 a, the Commission shall ensure that any amount due by government entities or Member States in accordance with paragraph 2 is effectively paid to final recipients or beneficiaries.

Removed:Where necessary:

Removed:a) with reference to funds from the Union budget managed in accordance with Article 62(1)(c) of the Financial Regulation, the Commission shall:

Removed:i) recover the payment made to any of the bodies referred to in points (v) to (vii) of Article 62(1)(c) of the Financial Regulation for an amount equivalent to the amount not paid to final recipients or beneficiaries, in breach of paragraph 2 of this Article;

Removed:ii) transfer an amount equivalent to the amount referred to in the previous point to the Union reserve referred to in Article 12 of Council Regulation XXX (MFF Regulation). Such amount shall be considered margin left available within the meaning of point (a) of Article 12(1) of Council Regulation XXX (MFF Regulation) and shall be mobilised in accordance with Article 12(2) of Council Regulation XXX (MFF Regulation), for the benefit, to the possible extent, of the final recipients or beneficiaries referred to in paragraph 2 of this Article;

Removed:b) with reference to funds from the Union budget managed in accordance with Article 62(1)(b) of the Financial Regulation:

Removed:i) the obligation of government authorities or of Member States referred to in paragraph 2 of this Article shall be considered an obligation of Member States within the meaning of [Article 63] of Regulation XXX (CPR Regulation). Any breach of such obligation shall be treated in accordance with [Article 98] of Regulation XXX (CPR Regulation);

Removed:ii) the amount resulting from reduced support from the Funds to a programme, in application of [Article 98] of Regulation XXX (CPR Regulation) shall be transferred by the Commission to the Union reserve referred to in Article 12 of Council Regulation XXX (MFF Regulation). Such amount shall be considered margin left available within the meaning of point a) of Article 12(1) of Council Regulation XXX (MFF Regulation) and shall be mobilised in accordance with paragraph 2 of Article 12 of Council Regulation XXC (MFF Regulation), for the benefit, to the possible extent, of the final recipients or beneficiaries referred to in paragraph 2 of this Article. [Am. 50]

Removed:Article 5 Procedure

Removed:1. Where the Commission, taking into account any opinions of the Panel, finds that it has reasonable grounds to believe that the conditions of Article 3 are fulfilled, it shall send a written notification to that Member State, setting out the grounds on which it based its finding. The Commission shall without delay inform the European Parliament and the Council of such notification and its contents. [Am. 51]

Removed:2. When assessing whether the conditions of Article 3 are fulfilled, the Commission may shall take into account all relevant information, including opinions of the Panel, decisions of the Court of Justice of the European Union, resolutions of the European Parliament, reports of the Court of Auditors, and conclusions and recommendations of relevant international organisations and networks. The Commission shall also take into account the criteria used in the context of Union accession negotiations, in particular the chapters of the acquis on judiciary and fundamental rights, justice, freedom and security, financial control and taxation, as well as the guidelines used in the context of the Cooperation and Verification Mechanism to track the progress of a Member State. [Am. 52]

Removed:3. The Commission may request any additional information required for its assessment, both before and after having made a finding pursuant to paragraph 1.

Removed:4. The Member State concerned shall provide all the required information and may make observations within a time limit specified by the Commission, which shall not be less than 1 one month nor more than three months from the date of notification of the finding. In its observations, the Member State may propose the adoption of remedial measures. [Am. 53]

Removed:5. The Commission shall take into account the information received and any observations made by the Member State concerned, as well as the adequacy of any proposed remedial measures, when deciding whether or not to submit a proposal for adopt a decision on the appropriate any measures referred to in Article 4. The Commission shall decide on the follow-up to be given to the information received within an indicative time limit of one month, and in any case within a reasonable timeframe from the date of receipt of that information. [Am. 54]