TEXT PROPOSED BY THE COMMISSION AMENDMENT

Amendment 1

Proposal for a regulation Title

Amendment 2

Proposal for a regulation Recital 1 a (new)

(1a) Union macro-financial assistance should be used to provide exceptional financial assistance to third countries that have run into temporary balance of payment difficulties. Unlike other Union instruments providing direct support for its external policies (such as the Instrument for Pre-accession Assistance (2), the European Neighbourhood Instrument (3), the Development Cooperation Instrument (4) etc), macro-financial assistance should not be used to provide regular financial support nor have as its primary aim supporting the economic and social development of the beneficiary countries. Nor should macro-financial assistance be used akin to conditional debt forgiveness grants.

Amendment 3

Proposal for a regulation Recital 2

(2) At present, macro-financial assistance to third countries is based on ad-hoc country specific decisions of the European Parliament and of the Council. This reduces the efficiency and effectiveness of the assistance by causing unnecessary delays between requests for macro-financial assistance and their actual implementation . (2) The framework regulation aims at clarifying the rules and improving the efficiency and effectiveness of the Union assistance, inter alia by strengthening the application of the pre-conditions, improving transparency and formalising the political assessment by the Commission, and by improving the democratic effectiveness and democratic scrutiny .

Amendment 4

Proposal for a regulation Recital 3

(3) A framework for delivering macro-financial assistance to third countries with which the Union has important political, economic and commercial ties should make the assistance more effective. In particular, it should be possible to provide macro-financial assistance to third countries to encourage them to adopt economic policy measures likely to solve a balance of payments crisis. (3) A framework for delivering macro-financial assistance to third countries should encourage them to adopt economic policy measures likely to solve a balance of payments crisis.

Amendment 5

Proposal for a regulation Recital 5

(5) The adoption of a general regulation for macro-financial assistance based on Articles 209 and 212 is without prejudice to the provisions of Article 213 of the Treaty, governing urgent financial assistance to third countries, and of the related prerogatives of the Council. deleted

Amendment 6

Proposal for a regulation Recital 7

(7) In its conclusions of 8 October 2002, the Council established criteria (the so-called Genval criteria) to guide the EU' s macro-financial assistance operations. It is appropriate to formalise these criteria in a legal act endorsed by both the Parliament and the Council while updating and clarifying them . (7) In its conclusions of 8 October 2002, the Council established criteria (the so-called Genval criteria) to guide the Union macro-financial assistance operations. It is appropriate to update and clarify these criteria in a legal act adopted by the European Parliament and the Council, inter alia in relation to the criteria for determining the appropriate form of assistance (loan, grant or combination thereof) .

Amendment 7

Proposal for a regulation Recital 8

(8) Appropriate procedures and instruments should be provided for in advance to enable the Union to ensure that macro-financial assistance can be made available expeditiously, especially when circumstances call for immediate action. This would also increase the clarity and transparency of the criteria applicable to the implementation of macro-financial assistance. (8) Appropriate procedures and instruments should be provided for in advance in order to enable the Union to make macro-financial assistance available expeditiously, especially when circumstances call for immediate action and to increase the clarity and transparency of the criteria applicable to the implementation of macro-financial assistance.

Amendment 8

Proposal for a regulation Recital 9

(9) The Commission should ensure that macro-financial assistance is in line with the key principles, objectives and measures taken within the different areas of external action and other relevant Union policies. (9) The Commission should ensure in its choice of beneficiary countries and in the content of the Memorandums of Understanding that macro-financial assistance is in line with the key principles, objectives and measures taken within the different areas of external action and other relevant Union policies.

Amendment 9

Proposal for a regulation Recital 9 a (new)

(9a) Macro-financial assistance is also a tool of Union foreign policy and should serve to enhance the visibility and influence of the Union beyond its borders. Close involvement of the European External Action Service (EEAS) for the purpose of coordination and the consistency of Union external policy should be ensured throughout the whole macro-financial assistance operation.

Amendment 10

Proposal for a regulation Recital 10

(10) Macro-financial assistance should support the beneficiary countries' commitments to common values with the Union, including democracy, the rule of law, good governance, respect for human rights, sustainable development and poverty reduction, as well as to the principles of open, rules-based and fair trade. (10) Macro-financial assistance should include measures to improve the beneficiary countries' commitment to common values with the Union, including democracy, the rule of law, good governance, respect for human rights, the fight against forced child labour, support for sustainable development and poverty reduction, as well as to the principles of open, rules-based and fair trade. The fulfilment of these objectives should be regularly monitored by the Commission.

Amendment 11

Proposal for a regulation Recital 13

(13) Macro-financial assistance should be complementary to the resources provided by the International Monetary Fund and other multilateral financial institutions and there should be a fair burden sharing with other donors. Macro-financial assistance should ensure the added value of the involvement of the Union. (11a) In general macro-financial assistance should be complementary to the resources provided by the International Monetary Fund and other European or multilateral financial institutions and there should be a fair burden sharing with those institutions and other donors. Macro-financial assistance should be provided where it ensures the added value of the involvement of the Union.

Amendment 12

Proposal for a regulation Recital 13 a (new)

(13a) In order to ensure that macro-financial assistance can meet the demands caused by urgent economic crises, the Union should ensure that sufficient financial resources are allocated to its budget. It is also necessary to ensure that macro-financial assistance is available to all eligible countries regardless of their economic size and applied appropriately in conjunction with the Union's other external financing instruments.

Amendment 13

Proposal for a regulation Recital 14 a (new)

(14a) In order to achieve a balance between the need for effectiveness and efficiency of Union assistance on the one hand, and greater coherence, transparency and democratic scrutiny on the other, the power to adopt acts in accordance with Article 290 of the Treaty of the Functioning of the European Union should be delegated to the Commission in respect of eligible countries and territories and granting assistance to particular countries and territories. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.

Amendment 14

Proposal for a regulation Recital 15

(15) In order to ensure uniform conditions for the implementation of this Regulation, as regards the approval and management of macro-financial assistance operations in beneficiary countries , implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) 182/2011 of the European Parliament and of the Council laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers. (15) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers.

Amendment 15

Proposal for a regulation Recital 16

(16) The examination procedure should be used for the adoption of implementing decisions defining the amount, form, duration and general conditions of individual macro-financial assistance operations given that such decisions have substantial budgetary implications. deleted

Amendment 16

Proposal for a regulation Recital 17

(17) The advisory procedure should be used for the adoption of the Memorandum of Understanding (MoU) laying down the economic policy measures associated with the Union's macro-financial assistance given that the MoU is not an implementing act of general scope, nor an act entailing budgetary implications or implications for third countries beyond those already entailed by the decision granting the assistance. deleted

Amendment 17

Proposal for a regulation Article 1 – paragraph 1

1. This Regulation lays down general provisions for the granting of macro-financial assistance to eligible third countries and territories as set out in Article 2. 1. This Regulation lays down general provisions for the granting of Union macro-financial assistance to eligible third countries and territories referred to in Article 2 (the ‘beneficiary countries’) .

Amendment 18

Proposal for a regulation Article 1 – paragraph 2

2. Macro-financial assistance shall be an exceptional financial instrument of untied and undesignated balance-of-payments support to eligible third countries and territories . It shall aim at restoring a sustainable external finance situation for countries facing external financing difficulties. It shall underpin the implementation of strong adjustment and structural reform measures designed to remedy balance of payments difficulties. 2. Macro-financial assistance shall be an exceptional financial instrument of untied and undesignated balance-of-payments support to beneficiary countries. It shall aim at restoring a sustainable external finance situation for beneficiary countries facing external financing difficulties. It shall underpin the implementation by such beneficiary countries of relevant bilateral agreements and programmes with the Union and shall be aimed at strong adjustment and structural reform measures designed to remedy balance of payments difficulties.

Amendment 19

Proposal for a regulation Article 1 – paragraph 3

3. Macro-financial assistance may be granted on condition of the existence of a significant and residual external financing gap jointly identified with the multilateral financial institutions over and above the resources provided by the International Monetary Fund (IMF) and other multilateral institutions, despite the implementation of strong economic stabilisation and reform programmes. 3. Macro-financial assistance may be granted on condition of the existence of a significant and residual external financing gap in the respective beneficiary country jointly identified with the European or multilateral financial institutions over and above the resources provided by the International Monetary Fund (IMF) and other European or multilateral financial institutions, despite the implementation of strong economic stabilisation and reform programmes by the respective beneficiary country .

Amendment 20

Proposal for a regulation Article 2 – title

Eligible countries Eligible countries and territories

Amendment 21

Proposal for a regulation Article 2 – introductory part

The third countries and territories eligible for macro-financial assistance shall be: 1. The third countries and territories eligible for macro-financial assistance provided that they fulfil the conditionality criteria set out in Article 6 (the ‘beneficiary countries’) shall be:

Amendment 22

Proposal for a regulation Article 2 – paragraph 1 – point c

(c) Other third countries in exceptional and duly justified circumstances. Such countries must be politically, economically and geographically close to the European Union. (c) Other third countries that play a determining role in regional stability and are of strategic importance for the Union , in exceptional and duly justified circumstances. Such countries must be politically, economically and geographically close to the Union.

Amendment 23

Proposal for a regulation Article 2 – paragraph 1 a (new)

1a. The Commission shall be empowered to adopt delegated acts in accordance with Article 14a to amend points 1 and 2 of Annex I in order to update it following appropriate political decisions regarding countries' status as candidate or potential candidate countries or regarding the scope of the European Neighbourhood Policy.

Amendment 24

Proposal for a regulation Article 2 – paragraph 1 b (new)

1b. The Commission shall be empowered to adopt delegated acts in accordance with Article 14a to supplement, when necessary, this Regulation with eligible countries that meet the criteria of point c of paragraph 1 of this Article.

Amendment 25

Proposal for a regulation Article 4 – paragraph 1

1. The amounts of macro-financial assistance provided in grants under this Regulation shall be consistent with the budget appropriations established in the multi-annual financial framework. 1. The amounts of macro-financial assistance provided under this Regulation in the form of a grant shall be consistent with the budget appropriations established in the multi-annual financial framework.

Amendment 26

Proposal for a regulation Article 4 – paragraph 2

2. The amounts of macro-financial assistance provided in loans under this Regulation shall be provisioned in accordance with Council Regulation (EC, Euratom) 480/2009 of 25 May 2009 on the Guarantee Fund for external actions. 2. The amounts of macro-financial assistance provided under this Regulation in the form of a loan shall be provisioned in accordance with Council Regulation (EC, Euratom) No 480/2009 of 25 May 2009 establishing a Guarantee Fund for external actions.

Amendment 27

Proposal for a regulation Article 4 – paragraph 3

3. Annual appropriations shall be authorised by the budgetary authority within the limits of the financial framework. The corresponding reference amounts for the period 2011 to 2013 are set out in Annex II. 3. Annual appropriations shall be authorised by the budgetary authority within the limits of the multi-annual financial framework.

Amendment 28

Proposal for a regulation Article 5 – paragraph 1

1. The amount of the assistance shall be based on the residual external financing needs of the beneficiary country. These shall be established by the Commission in cooperation with internationa l financial institutions, based on a comprehensive and well documented quantitative assessment. In particular, the Commission will draw on the latest balance of payments projections for the country in question produced by the IMF and take into account the expected financial contributions from multilateral donors. 1. The proposed amount of the assistance shall be based on the residual external financing needs of the beneficiary country. These shall be established by the Commission in cooperation with the IMF and other European or multilateral financial institutions, based on a comprehensive and well documented quantitative assessment. In particular, the Commission shall draw on the latest balance of payments projections for the beneficiary country in question produced by the IMF and other European or multilateral financial institutions and take into account the expected financial contributions from multilateral donors as well as pre-existing deployment of the Union's other external financing instruments in the respective beneficiary country.

Amendment 29

Proposal for a regulation Article 5 – paragraph 2

2. The determination of the amounts of macro-financial assistance shall also take into account the need to ensure a fair burden sharing with other donors. 2. The determination of the amount of macro-financial assistance shall also take into account the need to ensure a fair burden sharing between the Union and the other donors. The Union's contribution should be sufficient to guarantee that it brings Union added value and should not normally be below 20 %.

Amendment 30

Proposal for a regulation Article 5 – paragraph 3

3. In case the financing needs of the beneficiary country decline fundamentally during the period of disbursement of the macro-financial assistance, the Commission, acting in accordance with Article 14(2), may decide to reduce the amount of funds made available in the context of the assistance, suspend or cancel the assistance. 3. In case the financing needs of the beneficiary country decline fundamentally during the period of disbursement of the macro-financial assistance, the Commission shall re-assess the economic and financial situation in the beneficiary country and , based on that assessment, shall be empowered to adopt delegated acts in accordance with Article 14a to amend Annex IIa , to reduce the amount of funds made available in the context of the assistance, suspend or cancel the assistance.

Amendment 31

Proposal for a regulation Article 6 – paragraph 1

1. A pre-condition for granting macro-financial assistance shall be that the recipient country respects effective democratic mechanisms, including multi-party parliamentary systems, the rule of law and respect for human rights. 1. A pre-condition for granting macro-financial assistance shall be that the recipient country respects effective democratic mechanisms, including multi-party parliamentary systems, the rule of law and respect for human rights. This assessment shall be entrusted to the EEAS in cooperation with the Commission and shall take into consideration the resolutions and reports adopted by the European Parliament concerning beneficiary countries. The assessment may identify policy recommendations as regards the strengthening of democratic institutions, human rights, transparency and the fight against corruption. This report shall be added to each individual delegated act referred to in Article 7(3). With a view to protecting Union democratic values and interests and reinforcing beneficiary countries' respect for fundamental rights, the Memorandum of Understanding shall include country specific recommendations that are consistent with Union external policies aimed at strengthening the rule of law, human and labour rights, transparency and combating corruption.

Amendment 32

Proposal for a regulation Article 6 – paragraph 2

2. Macro-financial assistance shall be conditional on the existence of an IMF programme entailing the use of IMF resources. 2. Macro-financial assistance shall be conditional on the existence of an IMF programme entailing the use of IMF resources or that of another European or multilateral financial institution.

Amendment 33

Proposal for a regulation Article 6 – paragraph 3

3. The disbursement of the assistance shall be conditional on a satisfactory track record of an IMF programme. It shall also be conditional on the implementation, within a specific time frame, of a series of clearly defined economic policy measures focusing on structural reforms, to be agreed between the Commission and the beneficiary country and to be laid down in a Memorandum of Understanding. 3. The disbursement of the assistance shall be conditional on a satisfactory track record of an IMF programme or that of another European or multilateral financial institution and of respect for the political and value-based principles. It shall also be conditional on the implementation, within a specific time frame, of a series of clearly defined economic policy measures focusing on structural reforms, to be agreed between the Commission and the beneficiary country and to be laid down in a Memorandum of Understanding.

Amendment 34

Proposal for a regulation Article 7 – paragraph 2

2. If the conditions referred to in Article 1, Article 2, Article 4 and Article 6 are met, macro-financial assistance shall be granted by the Commission acting in accordance with Article 14(2). 2. Upon receiving the request, the Commission shall make an assessment as to whether the conditions referred to in Article 1, Article 2, Article 4 and Article 6 are met for granting macro-financial assistance. If those conditions are met , the Commission shall determine in its decision the amount and the form of the assistance under the conditions referred to in Article 5 and Article 3 respectively.

Amendment 35

Proposal for a regulation Article 7 – paragraphs 3 and 3a (new)

3. The decision to provide a loan shall specify the amount, the maximum average maturity, the maximum number of instalments of the macro-financial assistance. The decision to provide a grant shall specify the amount, and the maximum number of instalments. In both cases the availability period of the macro-financial assistance shall be defined. As a rule, it shall not exceed three years. 3. For the purpose of paragraph 2 the Commission shall be empowered to adopt delegated acts in accordance with Article 14a to establish and to amend Annex IIa in order to provide macro-financial assistance to a particular country or territory. In the delegated act the Commission shall, inter alia, stipulate the following:

(a) in all cases, the beneficiary of the assistance, the total maximum amount of the assistance, the form of the assistance, and the availability period of the assistance ;

(b) in case of the decision to provide a loan, the amount, the maximum average maturity, and the maximum number of instalments of the macro-financial assistance;

(c) in case of the decision to provide a grant, the amount, and the maximum number of instalments. The decision to provide a grant shall be accompanied by a justification for the grant (or grant element) of assistance.

3a. As a rule, the availability period of the macro-financial assistance shall not exceed three years.

Amendment 36

Proposal for a regulation Article 7 – paragraph 4

4. Following the approval of the decision granting macro-financial assistance, the Commission, acting in accordance with Article 14(3) , shall agree the policy measures referred to in Article 6(3), (4), (5) and (6) with the beneficiary country. 4. Following the adoption of the delegated act on granting macro-financial assistance, the Commission, in close cooperation with the EEAS , shall be empowered to adopt delegated acts in accordance with Article 14a to agree in the Memorandum of Understanding the policy measures referred to in Article 6(1) , (3), (4), (5) and (6) with the beneficiary country.

Amendment 37

Proposal for a regulation Article 7 – paragraph 5

5. Following the approval of the decision granting macro-financial assistance, the Commission shall agree the detailed financial terms of the assistance with the beneficiary country. These shall be laid down in a Grant or Loan Agreement. 5. Following the adoption of the delegated act on granting macro-financial assistance, the Commission shall agree the detailed financial terms of the assistance with the beneficiary country. These shall be laid down in a Grant or Loan Agreement.

Amendment 38

Proposal for a regulation Article 7 – paragraph 6

6. The Commission shall inform the European Parliament and the Council of developments in country-specific assistance and provide them with the relevant documents. 6. The Commission shall inform the European Parliament and the Council of developments in country-specific assistance and provide them with the relevant documents in due time .

Amendment 39

Proposal for a regulation Article 9 – paragraph 2

2. The assistance shall be disbursed in successive instalments, conditional upon the fulfilment of the conditions referred to in Article 6(2) and 6(3). 2. The assistance shall be disbursed in successive instalments, conditional upon the fulfilment of the conditions referred to in Article 6(1) , (2) and (3).

Amendment 40

Proposal for a regulation Article 9 – paragraph 3

3. The Commission shall verify at regular intervals that the conditions referred to in Article 6(2) and 6(3) continue to be met. 3. The Commission shall verify at regular intervals that the conditions referred to in Article 6(2) and (3) continue to be met. The EEAS shall verify at regular intervals, and without delay in the case of unforeseen developments, that the conditions referred to in Article 6(1) continue to be met, and inform the Commission accordingly.

Amendment 41

Proposal for a regulation Article 9 – paragraph 4

4. In case the conditions referred to in Article 6(2) and 6(3) are not met, the Commission can temporarily suspend, reduce or cancel the disbursement of the assistance. 4. In case the conditions referred to in Article 6(1) , (2) and (3) are not met, the Commission, in close cooperation with the EEAS , can temporarily suspend, reduce or cancel the disbursement of the assistance.

Amendment 42

Proposal for a regulation Article 9 – paragraph 4 a (new)

4a. In these instances, and in case the suspension of the operation is lifted after consultation of the EEAS, the Commission shall inform the European Parliament and the Council of the reasons thereof.

Amendment 43

Proposal for a regulation Article 11 – paragraph 1

1. Beneficiary countries shall regularly check that financing provided from the budget of the Union has been properly used, take appropriate measures to prevent irregularities and fraud, and, if necessary, take legal action to recover any funds provided under this Regulation that have been misappropriated. 1. Any agreements resulting from this Regulation shall contain provisions ensuring that beneficiary countries shall regularly check that financing provided from the budget of the Union has been properly used, take appropriate measures to prevent irregularities and fraud, and, if necessary, take legal action to recover any funds provided under this Regulation that have been misappropriated.

Amendment 44

Proposal for a regulation Article 11 – paragraph 3 a (new)

3a. The Memorandum of Understanding referred to in Article 6(3) and any other agreements resulting from this Regulation shall ensure the rights of the Commission and the Court of Auditors under paragraphs 2 and 3 of this Article during and after the availability period of the macro-financial assistance.

Amendment 45

Proposal for a regulation Article 12 – paragraph 1

1. The Commission shall regularly evaluate the results and efficiency of macro-financial assistance in order to ascertain whether the objectives have been met and enable it to formulate recommendations with a view to improving future operations. 1. The Commission shall regularly evaluate the results and efficiency of macro-financial assistance regarding each and every particular recipient country or territory in order to ascertain whether the objectives have been met and enable it to formulate recommendations with a view to improving future operations. When evaluating the functioning of the political conditionality under Article 6(1), the Commission shall consult the EEAS .

Amendment 46

Proposal for a regulation Article 12 – paragraph 2

2. The Commission shall send ex-post evaluation reports to the European Parliament and the Council, assessing the extent to which recently completed MFA operations have contributed to the aims of the assistance. 2. The Commission shall send ex-post evaluation reports to the European Parliament, the Council and the Court of Auditors , assessing the extent to which recently completed macro-financial assistance operations regarding a particular recipient country or territory have contributed to the aims of the assistance.

Amendment 47

Proposal for a regulation Article 12 – paragraph 2 a (new)

2a. The Court of Auditors shall audit the financial management of the assistance.

Amendment 48

Proposal for a regulation Article 14 – paragraph 3

3. Where reference is made to this paragraph, Article 4 of Regulation (EU) 182/2011 shall apply. deleted

Amendment 49

Proposal for a regulation Article 14 a (new)

Article 14a Exercise of the delegation

1. The power to adopt delegated acts referred to in Articles 2(1a), 2(1b), 5(3), 7(3) and 7(4) shall be conferred on the Commission for a period of applicability of this Regulation.

2. The delegation of power may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

3. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and the Council.

4. A delegated act adopted pursuant to Articles 2(1a), 2(1b), 5(3), 7(3) and 7(4) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of the act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or the Council.

Amendment 50

Proposal for a regulation Article 14 b (new)

Article 14b Review

1. No later than … (5) and every four years thereafter, the Commission shall present to the European Parliament and the Council a report on the application of this Regulation.

2. The report referred to in paragraph 1 shall include a detailed overview of macro-financial assistance granted under this Regulation and shall be accompanied, if appropriate, by a legislative proposal for a review of this Regulation.

Amendment 51

Proposal for a regulation Article 15

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union and shall expire on 31 December 2013 . This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Amendment 52

Proposal for a regulation Annex II