TEXT PROPOSED BY THE COMMISSION AMENDMENT

Amendment 1

Proposal for a regulation Recital 1

(1) Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities has been substantially amended several times. Since further amendments are to be made, including changes to take account of amendments introduced by the Treaty of Lisbon, the Regulation (EC, Euratom) No 1605/2002 should be replaced by this Regulation, in the interests of clarity. (1) Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities has been substantially amended several times. Since further amendments are to be made, including changes to take account of amendments introduced by the Treaty of Lisbon, the Regulation (EC, Euratom) No 1605/2002 should be replaced by this Regulation, according to the Treaty of Lisbon adopted jointly by the European Parliament and the Council according to the ordinary legislative procedure, in the interest of clarity.

Amendment 2

Proposal for a regulation Recital 2

(2) Regulation (EC, Euratom) No 1605/2002 laid down the budgetary principles and financial rules to be respected in all legislative acts and by all institutions. The fundamental principles, the concept and the structure of that Regulation and the basic rules of budgetary and financial management need to be maintained. Derogations to those fundamental principles should be reviewed and simplified as far as possible, taking into account their continuing relevance, their added-value for the annual budget of the Union (hereinafter the ‘budget’), and the burden they impose on stakeholders. It is necessary to maintain and strengthen the key elements of the financial reform: the role of the financial actors, the integration of controls in operational services, the internal auditors, the Activity Based Budgeting, the modernisation of accounting principles and rules and the basic principles for grants. (2) Regulation (EC, Euratom) No 1605/2002 laid down the budgetary principles and financial rules governing the establishment and implementation of the general budget, ensuring sound and effective management, control and protection of the financial interests of the Union, as well as increasing transparency, to be respected in all legislative acts and by all institutions. The fundamental principles, the concept and the structure of that Regulation and the basic rules of budgetary and financial management need to be maintained. Derogations to those fundamental principles should be reviewed and simplified as far as possible, taking into account their continuing relevance, their added-value for the annual budget of the Union (hereinafter the ‘budget’), and the burden they impose on stakeholders. It is necessary to maintain and strengthen the key elements of the financial reform: the role of the financial actors, the integration of controls in operational services, the internal auditors, the Activity Based Budgeting, the modernisation of accounting principles and rules and the basic principles for grants.

Amendment 3

Proposal for a regulation Recital 4 a (new)

DRAFT LEGISLATIVE RESOLUTION AMENDMENT

(4a) As regards the Union’s research framework programmes, further simplification and harmonisation of rules and procedures should be introduced, as stated in the European Parliament resolution of 11 November 2010 on simplifying the implementation of the Research Framework Programmes (2), and in the Final Report of the Expert Group on Interim Evaluation of the Seventh Framework Programme, published on 12 November 2010 on the basis of Article 7(2) of Decision No 1982/2006/EC.

Amendment 4

Proposal for a regulation Recital 5

(5) Regulation (EC, Euratom) No 1605/2002 was confined to stating the broad principles and basic rules governing the whole budgetary sector covered by the Treaties, while the implementing provisions were laid down in Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities11 in order to produce a better hierarchy of rules and make Regulation (EC, Euratom) No 1605/2002 easier to read. Under the Treaty on the Functioning of the European Union (hereinafter the ‘TFEU’) the Commission may receive delegation to adopt acts of general application to supplement or amendment certain non-essential elements of legislative acts . As a consequence, some provisions laid down in Regulation (EC, Euratom) No 2342/2002, should be incorporated into this Regulation . The detailed rules for the application of this Regulation adopted by the Commission should be confined to technical details and implementing modalities . (5) Regulation (EC, Euratom) No 1605/2002 was confined to stating the broad principles and basic rules governing the whole budgetary sector covered by the Treaties, while the implementing provisions were laid down in Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities11 in order to produce a better hierarchy of rules and make Regulation (EC, Euratom) No 1605/2002 easier to read. Under Article 290 of the Treaty on the Functioning of the European Union (hereinafter the ‘TFEU’) a legislative act may delegate to the Commission the power to adopt non-legislative acts only to supplement or amend certain non-essential elements of the legislative act . As a consequence, some provisions laid down in Regulation (EC, Euratom) No 2342/2002, should be incorporated into this Regulation.

Amendment 5

Proposal for a regulation Recital 8

(8) The rules governing interest generated by pre-financing should be simplified as they generate excessive administrative burden on both recipients of Union funds and Commission services and create misunderstandings between the Commission services and operators and partners. For reasons of simplification, in particular in respect of grant beneficiaries, and in line with the principle of sound financial management, there should no longer be an obligation to generate interest on pre-financing and to recover such interest. However, it should be possible to include such obligation in a delegation agreement in order to allow the re-use of interests generated by prefinancing for the programmes managed by some delegates, or its recovery. (8) The rules governing interest generated by pre-financing should be simplified as they generate excessive administrative burden on both recipients of Union funds and Commission services and create misunderstandings between the Commission services and operators and partners. For reasons of simplification, in particular in respect of grant beneficiaries, and in line with the principle of sound financial management, the obligation to generate interest on pre-financing and to recover such interest should be lifted immediately . However, it should be possible to include such obligation in a delegation agreement in order to allow the re-use of interests generated by prefinancing for the programmes managed by some delegates, or its recovery.

Amendment 6

Proposal for a regulation Recital 11

(11) The Treaty requires that the multiannual financial framework be laid down in the form of a regulation . It is therefore necessary to incorporate certain provisions from the multiannual financial framework for 2007-2013 into this Regulation. In particular, in order to ensure budgetary discipline, it is necessary to establish a link between the multiannual financial framework and the annual budgetary procedure. It is also necessary to include provisions on commitment of the European Parliament and of the Council to respect the allocations of commitment appropriations laid down in the basic acts for structural operations, rural development and the European Fisheries Fund. (11) As according to the Treaty the multiannual financial framework will in future be laid down in the form of a regulation and the interinstitutional agreement on budgetary discipline and sound financial management has to be amended accordingly, it is logical to incorporate certain provisions from the interinstitutional agreement into this Regulation. In particular, in order to ensure budgetary discipline, it is necessary to establish a link between the multiannual financial framework and the annual budgetary procedure. It is also necessary to include provisions on commitment of the European Parliament and of the Council to respect the allocations of commitment appropriations laid down in the basic acts for structural operations, rural development and the European Fisheries Fund.

Amendment 7

Proposal for a regulation Recital 13 a (new)

(13a) Revenue received by non-state third parties in the pursuit of the Union’s legitimate aims such as the fight against smuggling and counterfeiting of cigarettes (e.g. the ‘Phillip Morris’ agreement) should be treated as assigned revenue, in particular where these are the results of agreements concluded in the process of alternative dispute resolution.

Amendment 8

Proposal for a regulation Recital 16

(16) Concerning provisions on proportionality, the notion of tolerable risk of error should be introduced as part of the risk assessment made by the Authorising Officer. The institutions should be able to move away from the general 2 % materiality threshold used by the Court of Auditors to conclude on the legality and regularity of the underlying transactions. Tolerable risk levels constitute more appropriate basis for the Discharge Authority to judge the quality of the management of risk by the Commission. The European Parliament and the Council should therefore determine the level of tolerable risk of error per policy area, taking into account the costs and benefits of controls. (16) In order to assess the risk of error, taking account of the principle of sound financial management and appropriate controls, and to react accordingly, a management tool showing the risk of error should be used.

Amendment 9

Proposal for a regulation Recital 16 a (new)

(16a) The principle of transparency, enshrined in Article 15 TFEU which requires the institutions to work as openly as possible, requires, in the area of the implementation of the Union budget, that citizens be able to know where and for what purpose funds are spent by the Union. Such information fosters democratic debate, contributes to the participation of citizens in the decision-making process of the Union and reinforces the institutional control and scrutiny over Union expenditure. This objective should be achieved by the publication, preferably using modern communication tools, of relevant information concerning final contractors and final beneficiaries of Union funds which takes into account their legitimate interests of confidentiality and security and, as far as natural persons are concerned, their rights to respect for their private lives and the protection of their personal data. Institutions should therefore apply a selective approach in line with the principle of proportionality. Decisions to publish should be based on relevant criteria in order to provide meaningful information.

Amendment 10

Proposal for a regulation Recital 23 a (new)

(23a) For very low and low-value grants, simplified procedures in accounting and authorisation may be applied in order to create a beneficiary-driven approach.

Amendment 11

Proposal for a regulation Recital 23 b (new)

(23b) Grants may also be authorised in the field of basic research, where no outcome or result can be presented in consequence of the research activity.

Amendment 12

Proposal for a regulation Recital 24

(24) The experience with Public Private Partnerships (PPPs) institutionalised as Union bodies under Article 185 of Regulation (EC, Euratom) No 1605/2002 demonstrates that further alternatives should be added in order to increase the choice of instruments to include bodies whose rules are more flexible and accessible to the private partners than those applicable to the Union institutions. Such alternatives should operate under indirect management. An alternative should be a body established by a basic act and endowed with financial rules which should take into account the principles necessary to ensure sound financial management of Union funds. These principles should be adopted in a delegated regulation and should be based on those with which third entities entrusted with budget implementation tasks have to comply . Another alternative should be the implementation of PPPs by bodies governed by private law of a Member State . (24) The experience with Public Private Partnerships (PPPs) institutionalised as Union bodies under Article 185 of Regulation (EC, Euratom) No 1605/2002 demonstrates that further alternatives should be added in order to increase the choice of instruments to include bodies whose rules are more flexible and accessible to the private partners than those applicable to the Union institutions. Such alternatives should operate under indirect management. An alternative should be a body established by a basic act and endowed with financial rules which should take into account the principles necessary to ensure sound financial management of Union funds. These principles should be adopted in a delegated regulation on which the European Court of Auditors should be consulted and should be based on those with which third entities entrusted with budget implementation tasks have to comply.

Amendment 13

Proposal for a regulation Recital 25

(25) Basic control and audit obligations of Member States where they implement the budget indirectly in shared management, which currently exist only in sector-specific Regulations, should be, for the purposes of Article 317 of the TFEU, introduced in this Regulation. Therefore it is necessary to include provisions, setting out a coherent framework for all policy areas concerned, on a harmonised administrative structure at national level, common management and control obligations for those structures, annual management declaration of assurance with independent audit opinion thereon and an annual declaration by Member States by which they assume the responsibility for the management of Union funds they are entrusted with, financial clearance, suspension and correction mechanisms operated by the Commission. Detailed provisions should remain in sector-specific Regulations. (25) Basic control and audit obligations of Member States where they implement the budget indirectly in shared management, which currently exist only in sector-specific Regulations, should be, for the purposes of Articles 317 and 290 of the TFEU, introduced in this Regulation. Therefore it is necessary to include provisions, setting out a coherent framework for all policy areas concerned, on a harmonised administrative structure at national level, which does not create any additional control structures but allows the Member States to accredit bodies entrusted with the implementation of Union funds. The Member States should have the competence to determine the entity or organisation carrying out the functions of the accrediting authority, which may be at the same administrative level as the accredited body or already be responsible for the supervision of other authorities at present; this should not preclude the choice of any other structure on the part of the Member States as long as this is in line with the provisions of this Regulation. Furthermore, common management and control obligations for those structures, annual management declaration of assurance with independent audit opinion thereon and an annual declaration by Member States by which they assume the responsibility for the management of Union funds they are entrusted with, financial clearance, suspension and correction mechanisms operated by the Commission should be contained in this Regulation in order to create a coherent legislative framework which also improves the overall legal certainty and the efficiency of controls and remedial actions as well as the protection of the Union’s financial interests . Detailed provisions should remain in sector-specific Regulations.

Amendment 14

Proposal for a regulation Recital 33 a (new)

(33a) All draft proposals submitted to the legislative authority should be suitable for the application of user-friendly information technologies (‘e-government’) and the interoperability of data processed in the management of the budget should be ensured, which should improve efficiency. Uniform data transmission standards for data available in electronic format should be foreseen. A transitional period of two years from the entry into force of this Regulation should be granted for the attainment of these targets.

Amendment 15

Proposal for a regulation Recital 38 a (new)

(38a) Lump sums and flat rates should be used on a voluntary basis and only applied where appropriate. The terminology in use on flat rates and lump sums should be clarified.

Amendment 16

Proposal for a regulation Recital 38 b (new)

(38b) A further clarification or a reasonable definition of eligible costs should be proposed, as it would enhance compliance with the full cost principle, namely direct and indirect costs, upstream and downstream of research.

Amendment 17

Proposal for a regulation Recital 43 a (new)

(43a) In order to allow its auditees sufficient time to address findings of the Court of Auditors that could have an impact on the auditees’ final accounts or the legality and/or regularity of their underlying transactions, the Court of Auditors shall ensure that all such findings are transmitted to the institution or body concerned in good time.

Amendment 18

Proposal for a regulation Recital 44

(44) The provisions concerning provisional and final accounts should be updated, in particular in order to provide for the reporting information that should accompany the accounts sent to the Commission’s Accounting officer for the purpose of consolidation. Reference should also be made to the representation letter accompanying the transmission, by the institutions and bodies financed by the budget, to the Court of Auditors of their final accounts, as well as to the representation letter accompanying the transmission of the Union’s final consolidated accounts. Finally, an earlier deadline should be set out for the Court of Auditors to make its observations on the provisional accounts of institutions other than the Commission and bodies financed by the budget in order to allow them to draw up their final accounts taking into account the remarks by the Court of Auditors remarks. (44) The provisions concerning provisional and final accounts should be updated, in particular in order to provide for the reporting information that should accompany the accounts sent to the Commission’s Accounting officer for the purpose of consolidation. Reference should also be made to the representation letter accompanying the transmission, by the institutions and bodies financed by the budget, to the Court of Auditors of their final accounts, as well as to the representation letter accompanying the transmission of the Union’s final consolidated accounts. Finally, an earlier deadline should be set out for the Court of Auditors to make its observations on the provisional accounts of institutions other than the Commission and bodies financed by the budget in order to allow them to draw up their final accounts taking into account the remarks by the Court of Auditors remarks. In order to close the discharge procedure during the year following the year being audited, a working group will be set up to make proposals aimed at shortening the time taken by the procedure.

Amendment 19

Proposal for a regulation Recital 45

(45) As regards the information which is to be submitted by the Commission in the context of discharge, the Commission should notably submit to the European Parliament and to the Council an evaluation report on the Union’s finances based on the results achieved, in accordance with Article 318 of the TFEU. Adequate provisions should therefore be introduced in this Regulation for such report in relation to other existing reporting requirements. (45) As regards the information which is to be submitted by the Commission in the context of discharge, the Commission should notably submit to the European Parliament and to the Council an evaluation report on the Union’s finances based on the results achieved, in accordance with Article 318 of the TFEU. Adequate provisions should therefore be introduced in this Regulation for such report in relation to other existing reporting requirements. The report should include in particular elements on the achievements in the field of gender aspects of staff policy.

Amendment 20

Proposal for a regulation Recital 48

(48) As regards the specific provisions relating to the implementation of external actions, it is necessary to adapt them to the changes proposed for the methods of implementation. (48) As regards the specific provisions relating to the implementation of external actions, it is necessary to adapt them to the changes proposed for the methods of implementation and to propose a differentiated approach when the European Union is required to respond to humanitarian emergencies, international crises or third countries undergoing a process of democratic transition .

Amendment 21

Proposal for a regulation Recital 54 a (new)

(54a) It is of particular importance that the Commission carry out appropriate consultations during its preparatory work for delegated acts, 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 Council.

Amendment 22

Proposal for a regulation Recital 55

(55) The revision of this Regulation should be made only when necessary. Too frequent revisions generate disproportionate cost of adjusting administrative structures and procedures to the new rules. Furthermore, time may be too short to allow for valid conclusion to be drawn from the application of the rules in force. deleted

Amendment 23

Proposal for a regulation Recital 56 a (new)

(56a) The readability of this Regulation should be improved by attaching an index that also includes the names of each article, as well as a glossary of financial terms,

Amendment 24

Proposal for a regulation Article 1

This Regulation lays down the rules for the establishment and the implementation of the annual budget of the Union, ( hereinafter the ‘budget’) and the presentation and auditing of the accounts. 1. This Regulation lays down the rules for the establishment and the implementation of the general budget of the European Union, (‘the budget’) and the presentation and auditing of the accounts.

2. For the purposes of this Regulation: — the term ‘institution’ refers to the European Parliament, the European Council and the Council, the European Commission, the Court of Justice of the European Union and the European Court of Auditors, the European Economic and Social Committee, the Committee of the Regions, the European Ombudsman, the European Data Protection Supervisor and the European External Action Service (‘EEAS’); — the European Central Bank shall not be considered as an institution of the Union. Any reference to the ‘Union’ shall be understood as a reference to the European Union and the European Atomic Energy Community.

Amendment 25

Proposal for a regulation Article 2

Any provision concerning the implementation of the revenue and expenditure of the budget, contained in another legislative act, must comply with the budgetary principles set out in Title II . Any provision concerning the implementation of the revenue and expenditure of the budget, contained in another legislative act, must comply with this Regulation and the detailed rules for the application of this Regulation in accordance with the delegated regulation referred to in Article 199.

This Regulation shall apply to the European Parliament, the European Council and the Council, the European Commission, the Court of Justice of the European Union and the European Court of Auditors, the European Economic and Social Committee, the Committee of the Regions, the European Ombudsman, the European Data Protection Supervisor and the European External Action Service (hereinafter referred to as ‘institution(s)’). Any proposal or amendment to a proposal submitted to the legislative authority shall clearly indicate the provisions containing deviations from this Regulation or from delegated regulations adopted pursuant to this Regulation and shall state the specific reasons justifying such deviations in the respective Explanatory Memorandum of any such proposal.

This Regulation shall not apply to the European Central Bank.

This Regulation shall apply to the implementation of administrative expenditure relating to the appropriations provided in the budget for the Euratom Supply Agency.

Amendment 26

Proposal for a regulation Article 2 a (new)

Article 2a Protection of personal data This Regulation is without prejudice to the requirements of Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data and of Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data.

Amendment 27

Proposal for a regulation Article 4 – paragraph 1

1. The budget is the instrument which, for each financial year, forecasts and authorises all revenue and expenditure considered necessary for the Union and the European Atomic Energy Community . 1. All revenue and expenditure have to be included in the budget and its annexes, including, for each financial year, forecasts and all authorised revenue and expenditure considered necessary for the Union.

Amendment 28

Proposal for a regulation Article 4 – paragraph 2

2. The revenue and expenditure of the Union shall comprise: 2. The revenue and expenditure of the Union shall comprise:

(a) the revenue and expenditure of the Union , including administrative expenditure occasioned for the institutions by the provisions of the Treaty on European Union relating to the common foreign and security policy, and the operational expenditure occasioned by implementation of those provisions where this is charged to the budget ; (a) the revenue and expenditure of the Union;

(b) the expenditure and revenue of the European Atomic Energy Community. (b) the revenue and expenditure occasioned for the implementation of the respective European Development Fund.

Amendment 29

Proposal for a regulation Article 4 – paragraph 2 a (new)

2a. The expenditure of the Union referred to in paragraph 2 includes: (a) administrative expenditure, including expenditure occasioned for the institutions by the provisions of the Treaty on European Union relating to the Common Foreign and Security Policy and the operating expenditure occasioned by implementation of those provisions where this is charged to the budget; and (b) the operational expenditure, occasioned by implementation of those provisions where this is charged to the budget, including related support expenditure.

Amendment 30

Proposal for a regulation Article 4 – paragraph 2 b (new)

2b. The budget shall record the guarantee for borrowing-and-lending operations entered into by the Union in the management of the European Financial Stability Facility (EFSF) and the European Financial Stability Mechanism (EFSM) and payments to the Guarantee Fund for external actions.

Amendment 31

Proposal for a regulation Article 5 – paragraph 4

4. Interest yielded by the funds which are the property of the Union shall not be due to the Union save otherwise provided for in the agreements concluded with the entrusted entities listed in points (ii) to (viii) of Article 55(1)(b) , and in grant decisions or agreements concluded with beneficiaries . In those cases, such interest shall be re-used for the corresponding programme or recovered. 4. Interest yielded by the funds which are the property of the Union shall not be due to the Union save otherwise provided for in the agreements concluded with the entrusted entities listed in points (ii) to (viii) of Article 55(1)(b). In those cases, such interest shall be re-used for the corresponding programme and set off against the entitlements of the respective recipient or , where this would be impossible, impractical or inefficient, recovered.

Amendment 32

Proposal for a regulation Article 5 a (new)

Article 5a Lapse of a deadline 1. A deadline specified by days ends on the expiry of the last day of the period. 2. A deadline specified by weeks, by months or by a duration of time comprising more than one month - year, half-year, quarter - ends on the expiry of the day of the last week or of the last month which, in its designation or its number, corresponds to the day on which the event or the point of time occurs. 3. If, in the case of a deadline determined by months, the day on which it is due to expire does not occur in the last month, the period ends on the expiry of the last day of this month.

Amendment 33

Proposal for a regulation Article 5 b (new)

Article 5b Extension of period If a deadline is extended, the new deadline is calculated from the lapse of the previous deadline.

Amendment 34

Proposal for a regulation Article 5 c (new)

Article 5c Sundays and holidays; Saturdays If an act is to be performed on a particular day or within a deadline, and if the particular day or the last day of the deadline falls on a Sunday, a general holiday which is officially recognised, or on a Saturday, the next working day takes the place of this day .

Amendment 35

Proposal for a regulation Article 9 – paragraph 2 – point a a (new)

(aa) or, in duly substantiated cases, amounts for building projects within the meaning of Article 195(3) which have not yet been completed if the preparatory stages of the commitment procedure have not yet been completed by 31 December and the amounts are needed so that progress with works can be stepped up or debt repaid early; these amounts may then be committed up to 31 December of the following year; and

Amendment 36

Proposal for a regulation Article 9 – paragraph 2 – point b a (new)

(ba) amounts corresponding from an own resource system.

Amendment 37

Proposal for a regulation Article 9 – paragraph 4

4. Non-differentiated appropriations corresponding to obligations duly contracted at the close of the financial year shall be carried over automatically to the following financial year only. 4. Non-differentiated appropriations corresponding to obligations duly contracted at the close of the financial year shall be carried over automatically to the following financial year only. The same shall apply to de-committed and unused appropriations (commitments and payments) not covered by paragraphs 2 and 3 as well as available, unspent margins below the overall ceiling of the Multiannual Financial Framework for each heading, which shall constitute a ‘global MFF margin’ and be attributed to the different headings in the following financial year according to their needs.

Amendment 38

Proposal for a regulation Article 9 – paragraph 6

6. Without prejudice to Article 10, appropriations placed in reserve and appropriations for staff expenditure may not be carried over. 6. Without prejudice to Article 10, appropriations placed in reserve and appropriations for staff expenditure may not be carried over. For the purpose of this Article, staff expenditure comprises the remuneration and allowances for members and staff of the institutions to which the Staff Regulations apply.

Amendment 39

Proposal for a regulation Article 9 a (new)

Article 9a Unused appropriations both in commitments and payments as well as decommitted appropriations of year N may be carried over into N+1 budget, or in one of the future budgets in the framework of the annual budgetary procedure, by a decision of the budgetary authority. The Commission shall present before 1 October of the year N to the budgetary authority its forecast for unused and decommitted appropriations of year N, both in commitments and payments. Each arm of the budgetary authority shall eventually indicate how to allocate unused appropriations either in the N+1 budget or even on subsequent years. The decision will be taken jointly by the two arms of the budgetary authority following the procedure in accordance with Article 314 TFEU. The unused and decommitted appropriations shall be entered into one of the budgets and beyond the ceilings of the Multiannual Financial Framework. Unused and decommitted appropriations may be allocated either to a specific programme, or entered into a provisional chapter. In this case resources from the Member States will be called for only after the decision of the budgetary authority on the specific destination. If, after the adoption of the annual budget, margins are left under each ceiling of the financial framework, the budgetary authority may decide, before the end of the exercise, to carry over the unused margins in any ceiling of one of the subsequent years of the Multiannual Financial Framework. The total amount of the Multiannual Financial Framework will remain unchanged.

Amendment 40

Proposal for a regulation Article 13 – paragraph 3

3. If the continuity of action by the Union and management needs so require, the Council, acting by a qualified majority on a proposal of the Commission, may authorise two or more provisional twelfths both for commitments and for payments over and above those automatically made available pursuant to paragraphs 1 and 2. It shall forward the decision on authorisation without delay to the European Parliament. 3. If the continuity of action by the Union and management needs so require, the Council, acting by a qualified majority on a proposal of the Commission, may authorise expenditure in excess of one provisional twelfth but not exceeding the total of two provisional twelfths both for commitments and for payments over and above those automatically made available in accordance with paragraphs 1 and 2. It shall forward the decision on authorisation without delay to the European Parliament.

The decision shall enter into force thirty days following its adoption unless the European Parliament, acting by a majority of its Members, decides to reduce that expenditure within those thirty days . The decision shall enter into force thirty days following its adoption unless the European Parliament, acting by a majority of its component Members, decides to reduce that expenditure within that time limit.

If the European Parliament decides to reduce that expenditure, the Council shall review the decision on authorisation taking into account the amount approved by the European Parliament. If the European Parliament decides to reduce that expenditure, that reduced amount shall apply.

The additional twelfths shall be authorised in full and shall not be divisible. If, for a given chapter, the amount of the two provisional twelfths granted in accordance with the first subparagraph is not sufficient to cover the expenditure necessary to avoid a break in continuity of the Union’s activity in the area covered by the chapter in question, authorisation may exceptionally be given to exceed the amount of the appropriations entered in the relevant chapter of the budget of the preceding financial year. The budgetary authority shall act under the procedures provided for in this paragraph. However, the available overall total of the appropriations in the budget of the preceding financial year may in no circumstances be exceeded.

Amendment 41

Proposal for a regulation Article 15

Balance from financial year Carry-over of budgetary balance

1. The balance from each financial year shall be entered in the budget for the following financial year as revenue in the case of a surplus or as a payment appropriation in the case of a deficit. 1. The balance from each financial year after carry-overs according to Articles 9 and 10 shall be entered in the budget for the following financial year as additional revenue in the case of a surplus or as a payment appropriation only in the case of a deficit , in strict accordance with Article 7 of the Council Decision on Own resources, not including a quasi-automatic adaptation of Member States’ contributions to the Union budget .

2. The estimates of such revenue or payment appropriations shall be entered in the budget during the budgetary procedure and in a letter of amendment presented pursuant to Article 35. They shall be drawn up in accordance with the Council Regulation implementing the Decision on the system of the Union’s own resources. 2. The estimates of such revenue or payment appropriations shall be entered in the budget during the budgetary procedure and in a letter of amendment presented pursuant to Article 35.

3. After the presentation of the accounts for each financial year, any discrepancy with the estimates shall be entered in the budget for the following financial year through an amending budget devoted solely to that discrepancy. In such a case, the draft amending budget must be submitted by the Commission within 15 days following the submission of the provisional accounts. 3. After the presentation of the accounts for each financial year, any discrepancy with the estimates shall be entered in the budget for the following financial year through an amending budget devoted to that discrepancy and, in the case of a surplus, to corresponding additional appropriations . The draft amending budget must be submitted by the Commission within 45 days following the submission of the provisional accounts.

Amendment 42

Proposal for a regulation Article 15 a (new)

Article 15a Reserve for payments and commitments The surplus and the unspent commitments of the previous budgetary years of the current multi-annual financial framework as well as decommitted appropriations shall be entered in the reserve for payments and commitments. This reserve shall be used in first instance for any additional and/or unforeseen needs as well as to compensate any negative reserve, which procedure is laid down in Article 44. The decision to mobilise this reserve will be taken jointly by the two arms of the budgetary authority following a proposal by the Commission.

Amendment 43

Proposal for a regulation Article 16

The multiannual financial framework and the budget shall be drawn up and implemented in euro and the accounts shall be presented in euro. The multiannual financial framework and the budget shall be drawn up and implemented in euro and the accounts shall be presented in euro.

However, for the cash-flow purposes referred to in Article 65, the accounting officer and, in the case of imprest accounts, the imprest administrators, and, for the needs of the administrative management of the Commission and the European External Action Service (hereinafter referred to as ‘EEAS’) , the authorising officer responsible shall be authorised to carry out operations in national currencies as laid down in the delegated Regulation referred to in Article 199. However, for the cash-flow purposes referred to in Article 65, the accounting officer and, in the case of imprest accounts, the imprest administrators, and, for the needs of the administrative management of the Commission and the European External Action Service, the authorising officer responsible shall be authorised to carry out operations in national currencies as laid down in the delegated regulation referred to in Article 199.

The results of such currency operations shall be shown under a separate heading in the respective institution’s accounts; this shall apply mutatis mutandis to bodies referred to in Article 196b.

The Commission shall assure by appropriate means that currency fluctuations in the remuneration and for reimbursements of Union staff are being equalised at least at monthly intervals in order to ensure equal treatment of euro-based operations and salaries necessarily carried out in other currencies. Its calculation shall be based on the InforEURuro rate.

Amendment 44

Proposal for a regulation Article 18 – paragraph 2 – point e a (new)

(ea) fines imposed in the area of competition, other fines and amounts receivable as a result of out-of-court settlements, understandings, or any other similar agreements concluded with, or off payments paid by, any non-state third parties;

Amendment 45

Proposal for a regulation Article 18 – paragraph 2 – subparagraph 2 (new)

However, in the case provided for in point (b), commitment appropriations may be made available upon signature by the Member State of a contribution agreement expressed in Euro. This shall not apply to cases provided for in Article 173(2) and 175(2).

Amendment 46

Proposal for a regulation Article 18 – paragraph 3

3. The following shall constitute internal assigned revenue: 3. The following shall constitute internal assigned revenue:

(a) revenue from third parties in respect of goods, services or work supplied at their request; (a) revenue from third parties in respect of goods, services or work supplied at their request;

(b) proceeds from the sale of vehicles, equipment, installations, materials, and scientific and technical apparatus which are being replaced or scrapped when the book value is fully depreciated; (b) proceeds from the sale of vehicles, equipment, installations, materials, and scientific and technical apparatus which are being replaced or scrapped when the book value is fully depreciated;

(c) revenue arising from the repayment of amounts wrongly paid; (c) revenue arising from the repayment of amounts wrongly paid subject to Article 77 ;

(ca) revenue arising from interest on pre-financing subject to Article 5;

(d) proceeds from the supply of goods, services and works for other departments, institutions or bodies, including refunds by other institutions or bodies of mission allowances paid on their behalf; (d) proceeds from the supply of goods, services and works for other departments, institutions or bodies, including refunds by other institutions or bodies of mission allowances paid on their behalf;

(e) insurance payments received; (e) insurance payments received;

(f) revenue from the sale, letting or any other contract concerning rights connected with real estate; (f) revenue from the sale, letting, reimbursement or any other contract concerning rights connected with real estate;

(g) revenue from the sale of publications and films, including those on an electronic medium. (g) revenue from the sale of publications and films, including those on an electronic medium.

Amendment 47

Proposal for a regulation Article 19 – paragraph 2 a (new)

2a. All individual donations to the Commission exceeding EUR 999 or aggregate donations from one donor in excess of this amount in any one year will be traceable via a dedicated website.

Amendment 48

Proposal for a regulation Article 20 – paragraph 1

1. The delegated Regulation referred to in Article 199 may specify the cases where certain revenue may be deducted from requests for payment, which shall then be passed for payment of the net amount. 1. The following deductions may be made from payment requests which shall then be passed for payment of the net amount:

(a) penalties imposed on parties to procurement contracts or beneficiaries of a grant;

(b) discounts, refunds and rebates on individual invoices and cost statements;

(c) interest generated by pre-financing payments;

(d) adjustments for amounts unduly paid.

Adjustments referred to in point (d) of the first subparagraph may be made, by means of direct deduction, against a new payment of the same type to the same payee under the chapter, article and financial year in respect of which the excess payment was made, and which give rise to interim payments or payments of balances.

To the items referred to in points (c) and (d) of the first subparagraph the Union accounting rules shall apply.

Amendment 49

Proposal for a regulation Article 21 – paragraph 1

1. Appropriations shall be earmarked for specific purposes by title and chapter; the chapters shall be further subdivided into articles and items. 1. Appropriations shall be earmarked for specific purposes by title and chapter; the chapters shall be further subdivided into articles and items. Operating appropriations and investments shall be presented separately.

Amendment 50

Proposal for a regulation Article 21 – paragraph 2

2. The Commission may, within its own section of the budget, transfer appropriations autonomously as detailed in Article 23 or shall request the budgetary authority’s approval for the transfer of appropriations in the cases detailed in Article 24. 2. The Commission may, within its own section of the budget, transfer appropriations as detailed in Article 23 ; alternatively the Commission or the other institutions shall request the budgetary authority’s approval for the transfer of appropriations in the cases detailed in Article 24.

Amendment 51

Proposal for a regulation Article 21 – paragraph 3

3. Appropriations may be transferred only to budget lines for which the budget has authorised appropriations or carries a token entry ‘pro memoria’. deleted

Amendment 52

Proposal for a regulation Article 21 – paragraph 4

4. Appropriations corresponding to assigned revenue may be transferred only if such revenue is used for the purpose to which it is assigned. deleted

Amendment 53

Proposal for a regulation Article 22 – paragraph 3

3. Any institution other than the Commission may propose to the budgetary authority, within its own section of the budget, transfers from one title to another exceeding the limit of 10 % of the appropriations for the financial year on the line from which the transfer is to be made. Those transfers shall be subject to the procedure laid down in Article 24. 3. Any institution other than the Commission may propose to the budgetary authority, within its own section of the budget, transfers from one title to another exceeding the limit of 15 % of the appropriations for the financial year on the line from which the transfer is to be made. Those transfers shall be subject to the procedure laid down in Article 24.

Amendments 54, 262, 267 and 268

Proposal for a regulation Article 23

1. The Commission may, within its own section of the budget, autonomously : 1. The Commission may, within its own section of the budget:

(a) transfer commitment appropriations within each chapter; (a) transfer commitment appropriations within each chapter;

(b) transfer payment appropriations within each title; (b) transfer payment appropriations within each title after prior notification to Parliament and Council provided that neither of them opposes the transfer within three weeks ;

(c) as regards expenditure on staff and administration which is common to several titles , transfer appropriations from one title to another; (c) as regards expenditure on staff and administration, transfer appropriations from one title to another up to a maximum of 15 % of the appropriations for the year shown on the line from which the transfer is made, and up to a maximum of 30 % of the appropriations for the year shown on the line to which the transfer is made ;

(d) as regards operational expenditure, transfer appropriations between chapters within the same title, up to a maximum total of 10 % of the appropriations for the year shown on the line from which the transfer is made. (d) as regards operational expenditure, transfer appropriations between chapters within the same title, up to a maximum total of 15 % of the appropriations for the year shown on the line from which the transfer is made ;

Three weeks before making the transfers referred to in point (b) of the first subparagraph, the Commission shall inform the budgetary authority of its intention to do so. In the event of duly substantiated reasons being raised within that three-week period by either branch of the budgetary authority, the procedure laid down in Article 24 shall apply.

2. The Commission may, within its own section of the budget, decide on the following transfer appropriations from one title to another, provided it informs immediately the budgetary authority of its decision: 2. The Commission may, within its own section of the budget, decide to transfer from one title to another

(a) transfer appropriations from the ‘provisions’ title referred to in Article 43, where the only condition to lift the reserve lies in the adoption of a basic act in accordance with the ordinary legislative procedure foreseen in Article 294 TFEU; appropriations from the ‘provisions’ title referred to in Article 43, where the only condition to lift the reserve lies in the adoption of a basic act in accordance with the ordinary legislative procedure foreseen in Article 294 TFEU; provided it informs immediately the budgetary authority of its intention to do so.

(b) in duly substantiated exceptional cases of international humanitarian disasters and crises, occurring after 1 December of the budgetary year, the Commission may transfer unused budgetary appropriations for the current budgetary year still available in the budget titles falling under heading 4 of the multiannual financial framework to the budget titles concerning the crisis management aid and humanitarian aid operations. 2a. In duly reasoned exceptional cases of international humanitarian disasters and crises, occurring after 1 December of the budgetary year, the Commission may transfer unused budgetary appropriations for the current budgetary year still available in the budget titles falling under heading 4 of the multiannual financial framework to the budget titles concerning the crisis management aid and humanitarian aid operations.

The Commission shall inform the two branches of the budgetary authority immediately after making such transfers or making such use of appropriations for the following year.

2b. The Commission may supply the information justifying the transfer in the form of a staff working document.

2c. The Commission may, within its own section of the budget, propose to the budgetary authority transfers other than those referred to in paragraph 1.

Amendment 55

Proposal for a regulation Article 24 – title

Transfers by the Commission submitted to the budgetary authority Transfers by the institutions submitted to the budgetary authority

Amendment 56

Proposal for a regulation Article 24 – paragraph 1

1. The Commission shall submit its proposal of transfers simultaneously to the European Parliament and the Council. 1. The institutions shall submit their proposals simultaneously to the two arms of the budgetary authority.

Amendment 57

Proposal for a regulation Article 24 – paragraph 2

2. The budgetary authority shall take decisions on transfers of appropriations as provided for in paragraphs 3 to 6 , save as otherwise provided in Title I of Part Two. 2. The budgetary authority shall take decisions on transfers of appropriations as provided for in paragraphs 3 , 4 and 6 , save as otherwise provided in Title I of Part Two.

Amendment 58

Proposal for a regulation Article 24 – paragraph 3

3. Save in urgent circumstances, the Council, by a qualified majority, and the European Parliament, shall deliberate upon the Commission proposal within six weeks of the date on which the two institutions received the proposal for each transfer submitted to them. 3. Save in duly reasoned urgent circumstances, the Council, by a qualified majority, and the European Parliament, shall deliberate upon the institution’s proposal within six weeks of the date on which the two institutions received the proposal for each transfer submitted to them.

Amendment 59

Proposal for a regulation Article 24 – paragraph 4

4. The transfer proposal shall be approved, if within the six-week period in any of the following cases : 4. The transfer proposal shall be approved, if within the six-week period:

(a) European Parliament and the Council approve it; — both arms of the budgetary authority approve it;

(b) either the European Parliament or the Council approves it and the other institution refrains from acting; — one of the two arms of the budgetary authority approves it and the other refrains from acting;

(c) European Parliament and the Council refrain from acting or have not taken a decision contrary to the Commission proposal. — both arms of the budgetary authority refrain from acting or have not taken a decision contrary to the transfer proposal.

Amendment 60

Proposal for a regulation Article 24 – paragraph 5

5. The six-week period referred to under point 4 shall be reduced to three weeks, unless either the European Parliament or the Council requests otherwise, in any of the following cases: (a) the transfer represents less than 10 % of the appropriations of the line from which the transfer is made and does not exceed EUR 5 million; (b) the transfer concerns only payment appropriations and the overall amount of the transfer does not exceed EUR 100 million. deleted

Amendment 61

Proposal for a regulation Article 24 – paragraph 6

6. If either the European Parliament or the Council has amended the transfer while the other institution has approved it or refrains from acting, or if European Parliament and the Council have amended the transfer, the smaller amount approved either by the European Parliament or the Council shall be deemed approved, unless the Commission withdraws its proposal. 6. If one of the two arms of the budgetary authority has amended the transfer while the other approved it or refrains from acting, or if both arms have amended the transfer, the smaller amount approved either by the European Parliament or the Council shall be deemed approved, unless the institution withdraws its proposal.

Amendment 62

Proposal for a regulation Article 24 a (new)

Article 24a Specific rules on transfers 1. Appropriations may be transferred only to budget lines for which the budget has authorised appropriations or carries a token entry ‘pro memoria’. 2. Appropriations corresponding to assigned revenue may be transferred only if such revenue is used for the purpose to which it is assigned.

Amendment 63

Proposal for a regulation Article 25 – paragraph 2

2. Decisions on transfers to allow the use of the emergency aid reserve shall be taken by the budgetary authority on a proposal from the Commission , or by the Commission for a maximum of 10 % of the appropriations for the year shown on the line from which the transfer is made. 2. Decisions on transfers to allow the use of the reserve for emergency aid shall be taken by the budgetary authority on a proposal from the Commission . A separate proposal must be submitted for each individual operation.

The procedure provided for in Article 24(3) and (4) shall apply. If the Commission proposal is not agreed to by the European Parliament and the Council and there is a failure to arrive at a common position on the use of this reserve, the European Parliament and the Council shall refrain from acting on the Commission’s proposal of transfers . The procedure provided for in Article 24(3) and (4) shall apply. If the Commission proposal is not agreed to by both arms of the budgetary authority and there is a failure to arrive at a common position on the use of this reserve, both arms of the budgetary authority shall refrain from acting on the Commission’s proposal for a transfer .

Amendment 64

Proposal for a regulation Article 26 – paragraph 3

3. Specific, measurable, achievable, relevant and timed objectives shall be set for all sectors of activity covered by the budget. Achievement of those objectives shall be monitored by performance indicators for each activity and information shall be provided by the spending authorities to the budgetary authority. Such information shall be provided annually and at the latest in the documents accompanying the draft budget. 3. Specific, measurable, achievable, relevant and timed objectives shall be set for all sectors of activity covered by the budget. Achievement of those objectives shall be monitored by performance indicators for each activity and information shall be provided by the spending authorities to the budgetary authority. Such information, as referred to in Article 34(2a)(d), shall be provided annually and at the latest in the documents accompanying the draft budget.

Amendment 65

Proposal for a regulation Article 27 – paragraph 1 a (new)

1a. During the budgetary procedure, the Commission shall provide the necessary information for a comparison between changes in the appropriations required and the initial forecasts made in the financial statements. This information shall include progress made and the stage reached by the legislative authority in its consideration of proposals presented. The appropriations required shall, where appropriate, be revised in the light of the progress of deliberations on the basic act.

Amendment 66

Proposal for a regulation Article 27 – paragraph 2

2. In order to reduce the risk of fraud and irregularities, the financial statement referred to in paragraph 1 shall provide information on the internal control system set up, an assessment of the risk involved, as well as existing and planned fraud prevention and protection measures. 2. In order to reduce the risk of fraud and irregularities, the financial statement referred to in paragraph 1 shall provide information on the internal control system set up, an estimate of the costs and benefits of controls implied by such systems and an assessment of the risk involved, as well as existing and planned fraud prevention and protection measures.

Amendment 67

Proposal for a regulation Article 28 – paragraph 2 – point a a (new)

(aa) precise, consistent and transparent rules for control with respect to the rights of involved parties;

Amendment 68

Proposal for a regulation Article 28 – paragraph 2 – point d

(d) prevention, detection and correction of fraud and irregularities; (d) notwithstanding the responsibilities of the financial actors as defined in Chapter 3, prevention, detection and follow-up of correction of fraud and irregularities;

Amendment 69

Proposal for a regulation Article 28 – paragraph 2 a (new)

2a. Effective internal control shall be based on best international practices and include in particular the following: (a) segregation of tasks; (b) an appropriate risk management and control strategy including controls at beneficiary level; (c) avoidance of conflicts of interests; (d) adequate audit trails and data integrity in data systems; (e) procedures for monitoring of performance and for follow-up of identified internal control weaknesses and exceptions; (f) periodic assessment of the sound functioning of the internal control system.

Amendment 70

Proposal for a regulation Article 28 – paragraph 2 b (new)

2b. Efficient internal control shall be based on the following elements: (a) the implementation of an appropriate risk management and control strategy coordinated among appropriate actors involved in the control chain; (b) the accessibility of control results to all appropriate actors involved in the control chain; (c) reliance where appropriate on management declarations of implementation partners and independent audit opinions, provided that the quality of the underlying work is adequate and acceptable and that it has been performed in accordance with agreed standards. (d) the timely application of corrective measures including, where appropriate, dissuasive penalties; (e) clear and unambiguous legislation underlying the policies; (f) the elimination of multiple controls; (g) the principle of improving the cost-benefit ratio of controls, taking into account the risk of error referred to in Article 29.

Amendment 71

Proposal for a regulation Article 29

Tolerable risk of error Risk of error

The Legislative authority shall, in accordance with the procedure laid down in Article 322 of the TFEU, decide on a level of tolerable risk of error at an appropriate aggregation of the budget. That decision shall be taken into account during the annual discharge procedure, in accordance with Article 157(2). When presenting revised or new spending proposals, the Commission shall estimate the cost of administrative and control systems as well as the level of risk of error with the proposed legislation per fund and per Member State.

The level of tolerable risk of error shall be based on an analysis of the costs and benefits of controls. Member States and entities and persons referred to in point (b) Article 55(1) shall on request report to the Commission on the costs of controls borne by them as well as the number and size of activities financed by the budget. If, during the programme implementation, the level of error is persistently high, the Commission shall identify the weaknesses in the control systems and analyse the cost and benefits of possible corrective measures and take appropriate action such as simplification of the applicable provisions, re-design of the programme, tightening of controls or suggest, if necessary, termination of the activity.

The level of tolerable risk of error shall be closely monitored and shall be reviewed in case of major changes in the control environment. Integral to the full effectiveness of national management and control systems are management declarations on these systems submitted by the bodies accredited by the Member States.

Amendment 72

Proposal for a regulation Article 29 a (new)

Article 29a Segregation of duties The duties of accounting officer and payments officer shall be kept separate.

Amendment 73

Proposal for a regulation Article 30 – paragraph 2 – subparagraph 3

The consolidated annual accounts and the report on budgetary and financial management drawn up by each institution shall be published in the Official Journal of the European Union. The consolidated annual accounts and the report on budgetary and financial management drawn up by each institution shall be published immediately upon adoption in the Official Journal of the European Union.

Amendment 280

Proposal for a regulation Article 31 – paragraph 2

2. The Commission shall make available, in an appropriate manner, information on the recipients of funds deriving from the budget held by it when the budget is implemented on a centralised basis and directly by its departments or by Union Delegations in accordance with the second paragraph of Article 53, and information on the recipients of funds as provided by the entities to which budget implementation tasks are delegated under other modes of management. 2. The Commission shall make available, in an appropriate manner, information on its contractors and beneficiaries of funds as well as the precise nature and purpose of the measure financed from the budget when the budget is implemented on a centralised basis, and information on the contractors and beneficiaries of funds as provided by the entities to which budget implementation tasks are delegated under other modes of management.

This obligation shall also apply to the other institutions with regard to their contractors and, where applicable, their beneficiaries.

Amendment 75

Proposal for a regulation Article 31 – paragraph 3

3. This information shall be made available with due observance of the requirements of confidentiality, in particular the protection of personal data, as laid down in Directive No 95/46/EC of the European Parliament and of the Council and Regulation (EC) No 45/2001 of the European Parliament and of the Council, and of the requirements of security taking into account the specificities of each management mode referred to in Article 53 and where applicable in conformity with the relevant sector-specific rules. 3. This information shall be made available with due observance of the requirements of confidentiality and security, and where natural persons are concerned, of the right to respect for private life and of the right to the protection of personal data, as set out in Directive No 95/46/EC of the European Parliament and of the Council and Regulation (EC) No 45/2001 of the European Parliament and of the Council.

Where natural persons are concerned, the publication shall be limited to the name of the contractor or the beneficiary, its localisation, the amount awarded and the purpose of the award, and the disclosure of these data, shall be based on relevant criteria such as the periodicity of award, or the type or the importance of the award. The level of details published and the criteria for disclosure shall take into account the specificities of the sector and of each management mode referred to in Article 55; the level of details and criteria shall be defined by means of the delegated regulation referred to in Article 199 and, where applicable, in the relevant sector-specific rules.

Amendment 76

Proposal for a regulation Article 32 – paragraph 1

The European Parliament, the European Council and the Council, the Court of Justice of the European Union, the Court of Auditors, the Economic and Social Committee, the Committee of the Regions, the Ombudsman, the European Data-Protection Supervisor and the EEAS shall draw up an estimate of their revenue and expenditure, which they shall send to the Commission before 1 July each year. The European Parliament, the European Council and the Council, the Court of Justice of the European Union, the Court of Auditors, the Economic and Social Committee, the Committee of the Regions, the Ombudsman, the European Data-Protection Supervisor and the EEAS shall draw up an estimate of their revenue and expenditure, which they shall send to the Commission and in parallel, for information, to the budgetary authority before 1 July each year.

Amendment 77

Proposal for a regulation Article 32 – paragraph 3

These estimates shall also be sent by these institutions to the budgetary authority for information by no later than 1 July each year. The Commission shall draw up its own estimates, which it shall also send to the budgetary authority by the same date . The Commission shall draw up its own estimates, which it shall also send to the budgetary authority directly after adoption .

Amendment 78

Proposal for a regulation Article 33

Each body referred to in Article 200 shall, in accordance with the instrument establishing it, send to the Commission and the budgetary authority by 31 March each year an estimate of its revenue and expenditure, including the establishment plan, and its draft work programme. Each body referred to in Article 200 shall, in accordance with the instrument establishing it, send to the Commission and the budgetary authority in parallel and no later than 31 March each year an estimate of its revenue and expenditure, including the establishment plan, and its draft work programme.

Amendment 79

Proposal for a regulation Article 34 – paragraph 1 – subparagraph 2

The draft budget shall contain a summary general statement of the expenditure and revenue of the Union and consolidate the estimates referred to in Article 32. The draft budget shall contain a summary general statement of the expenditure and revenue of the Union , including a summary general statement of the reserve for payments and commitments, and consolidate the estimates referred to in Article 32.

Amendment 80

Proposal for a regulation Article 34 – paragraph 2 – subparagraph 1

2. Where relevant, the Commission shall attach to the draft budget a financial programming for the following years. 2. The Commission shall attach to the draft budget a financial programming for the following years.

Amendment 81

Proposal for a regulation Article 34 – paragraph 2 a (new)

2a. The Commission shall also attach to the draft budget: (a) an analysis of financial management in the previous year and the commitments outstanding; (b) where appropriate, an opinion on the estimates of the other institutions which may contain different estimates, accompanied by the reasons therefore; (c) any working paper it considers useful in connection with the establishment plans of the institutions and the grants which the Commission awards to the bodies referred to in Article 196b and to the European Schools. Any such working paper, showing the latest authorised establishment plan, shall present: (i) all staff employed by the Union, including its legally separate entities, displayed by type of contract, (ii) a statement of the policy on posts and external personnel and on gender balance, (iii) the number of posts actually filled at the beginning of the year in which the draft budget is presented, indicating their distribution by grade and administrative unit, (iv) a list of posts broken down per policy area, (v) for each category of external staff, the initial estimated number of full-time equivalents on the basis of the authorised appropriations as well as the number of persons actually in place at the beginning of the year in which the draft budget is presented, indicating their distribution by function group and, as appropriate, by grade; and (d) the activity statements containing: (i) information on the achievement of all previously set specific, measurable, achievable, relevant and timed objectives for the various activities as well as new objectives measured by indicators, (ii) full justification and cost-benefit approach for proposed changes in the level of appropriations, (iii) clear rationale for intervention at the Union level in keeping, inter alia, with the principle of subsidiarity, (iv) information on the implementation rates of the previous year’s activity and implementation rates for the current year. Evaluation results shall be consulted and referred to as evidence of the likely merits of proposed budget changes.

Amendment 82

Proposal for a regulation Article 34 – paragraph 2 b (new)

2b. Where the Commission entrusts the budget implementation to public private partnerships (ppp), it shall attach to the draft budget a working document presenting: (a) an annual report on the performance of existing ppps in the previous year; (b) the targets set for the year to which the draft budget relates, indicating any specific budgetary needs dedicated to attaining this target; (c) the administrative cost and implemented budget in total and per type as defined in Article 196a and per individual ppp in the preceding year; (d) the amount of financial contributions made from the Union’s budget and the value of contributions in kind made by the other partners for each ppp; (e) the staff tables, in application of paragraph (2a)(c) mutatis mutandis, of such ppps where staff are paid or partly paid by Union funds; these staff tables shall be taken into account when preparing the working document under paragraph (2a)(c). Where ppps make use of financial instruments, the working document shall set out the data in application of and notwithstanding paragraph 2c per ppp and per financial instrument.

Amendment 83

Proposal for a regulation Article 34 – paragraph 2 c (new)

2c. Where the Commission makes use of financial instruments, it shall attach to the draft budget a working document presenting: (a) the capital issued in the form of financial instruments and funded from the Union’s budget and the overall capital invested per financial instrument, including by third parties, in total and as leverage ratio per financial instrument, the value of participations in equity and quasi-equity investments; (b) revenues and repayments received in the previous year and a forecast for the year to which the draft budget relates; (c) the total amount of contingent and existing liabilities of the Union arising from the implementation of financial instruments in the previous year and in total broken down in particular by: (i) all potential liabilities towards third parties arising from guarantees, (ii) all potential liabilities arising from the maximum drawing on credit lines provided to any third parties, (iii) all potential total loss of junior debt or equity or quasi-equity participations, or (iv) any other potential or contingent liability as well as any information relevant or potentially relevant for the assessment of risks; (d) the financial provisions made in the budget for anticipated risks as well as unforeseen risks in total and per financial instrument; (e) the percentage and absolute number of cases in which guarantees were drawn on or junior debt or equity or quasi-equity participations were lost as a result of impairment or bankruptcy in total and per financial instrument for the previous year and the overall running time of the respective financial instrument; (f) the average duration between the payment of financial instruments in the form of junior debt capital (mezzanine) to the beneficiaries and the withdrawal of such capital; where this exceeds three years, the Commission shall provide an action plan for the reduction of the duration in the framework of the annual discharge procedure; (g) the geographical distribution of the application (absorption) of financial instruments per Member State and per financial instrument; (h) the administrative expenditure arising from any management fees, reimbursement or other monies paid for the management of financial instruments where this has been entrusted to third parties in total and per managing party and per financial instrument managed; (i) the staff tables, in application of paragraph (2a)(c) mutatis mutandis, where staff are paid or part paid by Union funds; these staff tables shall be taken into account when preparing the working document under paragraph (2a)(c).

Amendment 84

Proposal for a regulation Article 34 – paragraph 3

3. The Commission shall also attach to the draft budget any working paper it considers useful to support its budget requests. 3. The Commission shall also attach to the draft budget any further working paper it considers useful to support its budget requests.

Amendment 85

Proposal for a regulation Article 34 – paragraph 4 – subparagraph 2 – point d

(d) provide a detailed picture of all staff in place in the Union delegations at the time of presenting the draft budget, including a breakdown by geographic area, individual country and mission, distinguishing establishment plan posts, contract agents, local agents and seconded national experts and appropriations requested in the draft budget for such other types of personnel with corresponding estimates of the equivalent full-time staff that may be employed within the limits of the appropriations requested. (d) provide a detailed picture of all staff in place in the Union delegations at the time of presenting the draft budget, including a breakdown by geographic area, gender, individual country and mission, distinguishing establishment plan posts, contract agents, local agents and seconded national experts and appropriations requested in the draft budget for such other types of personnel with corresponding estimates of the equivalent full-time staff that may be employed within the limits of the appropriations requested.

Amendment 86

Proposal for a regulation Article 34 – paragraph 4 a (new)

4a. The Commission shall accompany the draft budget with a proposal to mobilise the reserve for payments and commitments for any arising needs not initially foreseen in the annual budget or the regulation laying down the multiannual financial framework.

Amendment 87

Proposal for a regulation Article 34 – paragraph 4 b (new)

4b. In addition, the Commission shall transmit to the European Parliament and Council, together with the draft budget, a working document on building policy drawn up by each institution and body within the meaning of Article 196b incorporating the following information: (a) for each building, expenditure and areas covered by the appropriations of the corresponding budget lines; (b) expected evolution of the global programming of areas and locations for the coming years, with a description of the building projects in planning phase referred to in Article 195(3) which are already identified; (c) final terms and costs as well as relevant information regarding project implementation of new building projects previously submitted to the budgetary authority under the procedure established in Article 195(3) and not included in previous year’s working documents; (d) final terms and costs regarding cont r act extensions not subject to the procedure established in Article 195(3) but exceeding an annual charge of EUR 500 000.

Amendment 88

Proposal for a regulation Article 35

Until the Conciliation Committee referred to in Article 314 of the TFEU is convened, the Commission may, on its own initiative or if requested by the other institutions, each in respect of its own section, present simultaneously to the European Parliament and the Council letters of amendment to the draft budget on the basis of new information which was not available at the time the draft was established, including a letter of amendment updating expenditure estimates for agriculture. On the basis of new information which was not available at the time the draft budget was established, the Commission may, on its own initiative or if requested by the other institutions, each in respect of its own section, present simultaneously to the European Parliament and the Council letters of amendment to the draft budget in due time before the Conciliation Committee referred to in Article 314 TFEU is convened. This might include a letter of amendment updating expenditure estimates for agriculture.

Amendment 89

Proposal for a regulation Article 36

Approval of the outcome of the Conciliation Committee deleted

Once the Conciliation Committee has agreed on a joint text, the European Parliament and the Council shall endeavour to approve the outcome of the Conciliation Committee as soon as possible in accordance with Article 314(6) of the TFEU, in accordance with their respective internal rules of procedure.

Amendment 90

Proposal for a regulation Article 38

1. The Commission shall present draft amending budgets for mobilising the European Solidarity Fund and draft amending budget for each of the following purposes:

(a) surplus,

(b) revision of the forecast of traditional own resources and Value Added Tax and Gross National Income bases,

(c) increase in the forecast of revenue and decrease in payment appropriations.

1. If there are unavoidable, exceptional or unforeseen circumstances, the Commission may present draft amending budgets . If there are unavoidable, exceptional or unforeseen circumstances, the Commission may present two additional draft amending budgets per year .

Requests for amending budgets, in the same circumstances as referred to in the preceding paragraph, from institutions other than the Commission shall be sent to the Commission. Requests for amending budgets, in the same circumstances as referred to in the preceding paragraph, from institutions other than the Commission shall be sent to the Commission.

Before presenting a draft amending budget, the Commission and the other institutions shall examine the scope for reallocation of the relevant appropriations, taking into account any expected under-implementation of appropriations. Before presenting a draft amending budget, the Commission and the other institutions shall examine the scope for reallocation of the relevant appropriations, taking into account any expected under-implementation of appropriations.

2. The Commission shall, save in exceptional circumstances , submit any draft amending budget simultaneously to the European Parliament and the Council by 1 September each year at the latest . It may attach an opinion to the requests for amending budgets from the other institutions. 2. The Commission shall, save in duly justified exceptional circumstances or in the case of the mobilisation of the European Solidarity Fund for which a draft amending budget can be presented at any time of the year , submit its draft amending budgets, simultaneously to the European Parliament and the Council , in April and / or in August . It may attach an opinion to the requests for amending budgets from the other institutions.

3. The European Parliament and the Council shall discuss them with due account for their urgency. 3. The European Parliament and the Council shall discuss them with due account for their urgency.

Amendment 91

Proposal for a regulation Article 40 – paragraph 1 – point a

(a) a general statement of revenue and expenditure; (a) a general statement of revenue and expenditure making a distinction between operations and investment ;

Amendment 92

Proposal for a regulation Article 41 – paragraph 2 a (new)

2a. Administrative expenditure shall be classified as follows: (a) expenditure on staff authorised in the establishment plan: there shall be an amount of appropriations and a number of establishment plan posts corresponding to this expenditure; (b) expenditure on external personnel and other expenditure referred to in point (c) of Article 23(1) and financed under the ‘administration’ heading of the multiannual financial framework; (c) expenditure on buildings and other related expenditure, including cleaning and maintenance, rental and hiring, telecommunications, water, gas and electricity; d) external personnel and technical assistance directly linked to the implementation of programmes. The administrative expenditure of the Commission of a type which is common to several titles shall be set out in a separate summary statement classified by type.

Amendment 93

Proposal for a regulation Article 41 – paragraph 2 b (new)

2b. Wherever possible and appropriate, articles and items shall correspond to individual operations carried out in the framework of a certain individual activity. The delegated regulation referred to in Article 199 shall lay down guidelines for the classification of articles and items aiming at maximum transparency and conciseness of the budget.

Amendment 94

Proposal for a regulation Article 44 – paragraph 2

This reserve must be drawn upon before the end of the financial year by means of transfer in accordance with the procedure laid down in Articles 21 and 23. This reserve must be drawn upon as soon as possible and before the end of the financial year , in first instance by means of the reserve for payments and commitments, as laid down in Article 15 (3a), or by means of transfer in accordance with the procedure laid down in Articles 21 and 23.

Amendments 95 and 287

Proposal for a regulation Article 46 – paragraph 1

1. The budget shall show: 1. The budget shall show:

(a) in the general statement of revenue and expenditure: (a) in the general statement of revenue and expenditure:

(i) the estimated revenue of the Union for the financial year concerned; (i) the estimated revenue of the Union for the financial year concerned;

(ii) the estimated revenue for the preceding financial year and the revenue for year n - 2; (ii) the estimated revenue for the preceding financial year and the revenue for year n - 2;

(iii) the commitment and payment appropriations for the financial year concerned; (iii) the commitment and payment appropriations for the financial year concerned;

(iv) the commitment and payment appropriations for the preceding financial year; (iv) he commitment and payment appropriations for the preceding financial year;

(v) the expenditure committed and the expenditure paid in year n – 2; (v) the expenditure committed and the expenditure paid in year n – 2 , the latter also expressed as a percentage of the budget ;

(vi) appropriate remarks on each subdivision, as set out in Article 41(1); (vi) appropriate remarks on each subdivision, as set out in Article 41(1);

(b) in each section of the budget, the revenue and expenditure shall be shown in the same structure as in point (a); (b) in each section of the budget, the revenue and expenditure shall be shown in the same structure as in point (a);

(c) as regards staff: (c) as regards staff:

(i) or each section of the budget, an establishment plan setting the number of posts for each grade in each category and in each service and the number of permanent and temporary posts authorised within the limits of the budget appropriations; (i) for each section of the budget, an establishment plan providing a comprehensive presentation of the entire human resources and setting the number of posts for each grade in each category and in each service and the number of permanent and temporary posts authorised within the limits of the budget appropriations , accompanied by a document presenting the full time equivalents of contract agents as well as local agents ;

(ii) an establishment plan for staff paid from the research and technological development appropriations for direct action and an establishment plan for staff paid from the same appropriations for indirect action; the establishment plans shall be classified by category and grade and shall distinguish between permanent and temporary posts, authorised within the limits of the budget appropriations; (ii) an establishment plan for staff paid from the research and technological development appropriations for direct action and an establishment plan for staff paid from the same appropriations for indirect action; the establishment plans shall be classified by category and grade and shall distinguish between permanent and temporary posts, authorised within the limits of the budget appropriations;

(iii) as regards scientific and technical staff, the classification may be based on groups of grades, in accordance with the conditions laid down in each budget; the establishment plan must specify the number of highly qualified technical or scientific personnel who are accorded special advantages under the specific provisions of the Staff Regulations; (iii) as regards scientific and technical staff, the classification may be based on groups of grades, in accordance with the conditions laid down in each budget; the establishment plan must specify the number of highly qualified technical or scientific personnel who are accorded special advantages under the specific provisions of the Staff Regulations;

(iv) an establishment plan setting the number of posts by grade and by category for each body referred to in Article which receives a grant charged to the budget. The establishment plans shall show next to the number of posts authorised for the financial year the number authorised for the preceding year; (iv) an establishment plan setting the number of posts by grade and by category for each body referred to in Article 196b which receives a grant charged to the budget. The establishment plans shall show next to the number of posts authorised for the financial year the number authorised for the preceding year;

(ca) as regards funding to international organisations, in a document annexed to the Commission section:

(i) a summary of all contributions, with a breakdown per Union programme/fund and per international organisation,

(ii) a statement of reasons explaining why it was more efficient for the Union to fund those international organisations rather than to act directly;

(d) as regards borrowing-and-lending operations: (d) as regards borrowing-and-lending operations:

(i) in the general statement of revenue, the budget lines corresponding to the relevant operations and intended to record any reimbursements received from beneficiaries who initially defaulted, leading to activation of the performance guarantee. These lines shall carry a token entry ‘pro memoria’ and be accompanied by appropriate remarks; (i) in the general statement of revenue, the budget lines corresponding to the relevant operations , in particular the implementation of financial instruments (Articles 130, 131) and intended to record any reimbursements received from beneficiaries who initially defaulted leading to activation of the performance guarantee as well as any revenue arising from the implementation of financial instruments . These lines shall carry a token entry ‘pro memoria’ and be accompanied by appropriate remarks;

(ii) in the Commission section: (ii) in the Commission section:

— the budget lines containing the Union’s performance guarantees in respect of the operations concerned. These lines shall carry a token entry ‘pro memoria’, so long as no effective charge which has to be covered by definitive resources has arisen; — the budget lines containing the Union’s performance guarantees and financial instruments in respect of the operations concerned. These lines shall carry a token entry ‘pro memoria’, so long as no effective charge which has to be covered by definitive resources has arisen;

— remarks giving the reference to the basic act and the volume of the operations envisaged, the duration and the financial guarantee given by the Union in respect of these operations; — remarks giving the reference to the basic act and the volume of the operations envisaged, the duration and the financial guarantee given, or other financial instrument implemented by the Union in respect of these operations;

— a comprehensive calculation of the rate of overall funds dedicated to financial instruments in relation to the Union’s budget;

(iii) in a document annexed to the Commission section, as an indication: (iii) in a document annexed to the Commission section, as an indication:

— all equity participations by means of financial instruments or ppp which shall be accompanied by specific remarks on their performance;

— ongoing capital operations and debt management; — ongoing capital operations and debt management;

— the capital operations and debt management for the financial year concerned; — the capital operations and debt management for the financial year concerned;

(e) the total amount of CFSP expenditure shall be entered into one budget chapter, entitled CFSP, with specific budgetary articles. Those articles shall cover CFSP expenditure and shall contain specific budget lines identifying at least the single major missions . (e) the total amount of CFSP expenditure shall be entered into one budget chapter, entitled CFSP, with specific budgetary articles. Those articles shall cover CFSP expenditure and shall contain a specific budget line per mission;

(ea) all revenue and expenditure under the respective European Development Fund which shall be entered under a special budget heading within the Commission section .

Amendment 281

Proposal for a regulation Article 47 – paragraph 1 – subparagraph 2 – point b

(b) that the limit of the total number of posts authorised by each establishment plan is not exceeded . (b) that the institution or body has taken part in a benchmarking exercise with other bodies of the Union and other institutions as initiated by the Commission’s staff screening exercise .

Amendment 96

Proposal for a regulation Article 49

Article 49 Where by implementation of an act of the Union the appropriations available in the budget or the allocations available in the multiannual financial framework would be exceeded, such act may be implemented in financial terms only after the budget has been amended and, if necessary, the financial framework has been appropriately revised. Article 49 Where by implementation of an act of the Union the appropriations available in the budget or the allocations available in the multiannual financial framework would be exceeded, such act may be implemented in financial terms only after the budget has been amended and, if necessary, the financial framework has been appropriately revised. For the purposes of this Article, and notwithstanding Article 4(2), an act of the Union shall be deemed to exist where borrowing or lending operations affect the global MFF margin (Article 9(4)) of any present or future years to which the multiannual financial framework applies.

Amendment 97

Proposal for a regulation Article 50 – paragraph 2

2. The Member States shall cooperate with the Commission so that the appropriations are used in accordance with the principle of sound financial management. 2. The Member States shall cooperate with the Commission so that the appropriations are used in accordance with the principle of sound financial management and shall perform their control and audit obligations in accordance with Article 317 of the Treaty on the Functioning of the European Union .

Amendment 98

Proposal for a regulation Article 51 – paragraph 1 – subparagraph 2

A basic act is a legal act which provides a legal basis for the action and for the implementation of the corresponding expenditure entered in the budget. A basic act is a legal act which provides a legal basis for the action and for the implementation of the corresponding expenditure entered in the budget. Article 2 applies.

Amendment 99

Proposal for a regulation Article 51 – paragraph 3

3. In application of Title V of the Treaty on European Union, a basic act may take one of the forms specified in Articles 26(2), 28(1), 29, 31(2), 33 and 37 of the Treaty on European Union. 3. In application of Title V of the Treaty on European Union (hereinafter ‘TEU’) , a basic act may take one of the following forms :

— Council Decision necessary for defining and implementing the common foreign and security policy (Article 26(2) TEU);

— Council decision on operational action required by the international situation (Article 28(1) TEU);

— Council decision defining the Union’s approach to a particular matter of geographical or thematic nature (Article 29 TEU);

— Council decisions defining a Union action or position, or implementing such action or position (Article 31(2) 1st-3rd indents TEU) or on the appointment of a special representative (Article 31(2) 4th indent, Art. 33 TEU);

— conclusion of agreements with one or more states or international organisations (Article 37 TEU).

Amendment 100

Proposal for a regulation Article 51 – paragraph 5 – point b – subparagraphs 2 a and 2 b (new)

The total amount of appropriations for the pilot schemes referred to in point (a) may not exceed EUR 40 million in any budget year. The total amount of appropriations for new preparatory actions referred to in the first subparagraph of this point may not exceed EUR 50 million in any budget year, and the total amount of appropriations actually committed for preparatory actions may not exceed EUR 100 million;

Amendment 101

Proposal for a regulation Article 51 – paragraph 5 – point c

(c) appropriations for preparatory measures in the field of Title V of the Treaty on European Union. These measures shall be limited to a short period of time and shall be designed to establish the conditions for Union action in fulfilment of the objectives of the CFSP and for the adoption of the necessary legal instruments. (c) appropriations for preparatory measures in the field of Title V of the Treaty on European Union (concerning General Provisions on the Union’s External Action and Specific Provisions on the Common Foreign and Security Policy). These measures shall be limited to a short period of time and shall be designed to establish the conditions for European Union action in fulfilment of the objectives of the CFSP and for the adoption of the necessary legal instruments;

For the purpose of Union crisis management operations, preparatory measures are designed inter alia to assess the operational requirements, to provide for a rapid initial deployment of resources, or to establish the conditions on the ground for the launching of the operation. For the purpose of Union crisis management operations, preparatory measures are designed inter alia to assess the operational requirements, to provide for a rapid initial deployment of resources, or to establish the conditions on the ground for the launching of the operation.

Preparatory measures shall be agreed by the Council, on a proposal by the High Representative of the Union for Foreign Affairs and Security Policy. Preparatory measures shall be agreed by the Council, in full association with the Commission, and the European Parliament shall be consulted in due time in advance and shall be informed in detail about the preparatory measures, in particular those regarding the CFSP and Common Security and Defence Policy actions.

In order to ensure the rapid implementation of preparatory measures, the High Representative shall inform the Commission as early as possible on the Council’s intention to launch a preparatory measure and in particular of the estimated resources required for this purpose. In conformity with this Regulation, the Commission shall take all the necessary measures to ensure a rapid disbursement of the funds. In order to ensure the rapid implementation of preparatory measures, the High Representative of the Union for Foreign Affairs and Security Policy shall inform the European Parliament and the Commission as early as possible on the Council’s intention to launch a preparatory measure and in particular of the estimated resources required for this purpose. In conformity with the provisions of this Regulation, the Commission shall take all the necessary measures to ensure a rapid disbursement of the funds;

Amendment 102

Proposal for a regulation Article 54 – paragraph 1

1. All financial actors and any other person involved in budget implementation , management, audit or control shall be prohibited from taking any action which may bring their own interests into conflict with those of the Union. Should such a case arise, the person concerned must refrain from such actions and refer the matter to the competent authority . 1. All financial actors and any other person involved in budget implementation and management, including acts preparatory thereto, audit or control shall be prohibited from taking any action which may bring their own interests into conflict with those of the Union. Should such a case arise, the person in question must refrain from such actions and refer the matter to his hierarchical superior who shall confirm in writing whether a conflict of interests exists. Where a conflict of interest is found to exist, the person subject to such interest shall cease all his/her activities in the pending matter. The hierarchical superior shall personally take any further appropriate action .

Amendment 103

Proposal for a regulation Article 54 – paragraph 2

2. There is a conflict of interests where the impartial and objective exercise of the functions of a financial actor or other person, as referred to in paragraph 1, is compromised for reasons involving family, emotional life, political or national affinity, economic interest or any other shared interest with the beneficiary. 2. There is a conflict of interests where the impartial and objective exercise of the functions of a financial actor or other person, as referred to in paragraph 1, is or might in the public perception be compromised for reasons involving family, emotional life, political or national affinity, economic interest or any other s