95 Amendments of Billy KELLEHER related to 2023/0138(COD)
Amendment 164 #
Proposal for a regulation
Recital 5
Recital 5
(5) The economic governance framework of the Union should be adapted to better take into account the growing heterogeneity of fiscal positions, public debt challenges and other vulnerabilities across Member States. The strong policy response to the COVID-19 pandemic proved highly effective in mitigating the economic and social damage of the crisis, but the crisis resulted in a significant increase in public- and private-sector debt ratios, underscoring the importance of reducing debt ratios to prudent levels in a gradual, sustained and growth-friendly manner and addressing macroeconomic imbalances, while paying due attention to employment and social objectives. At the same time, the economic governance framework of the Union should be adapted to help address the medium- and long-term challenges facing the Union including achieving a fair digital and green transition, including the Climate Law22 , ensuring energy security, open strategic autonomy, addressing demographic change, strengthening social and economic resilience and implementing the European Pillar of Social Rights1a, as well as the the strategic compass for security and defence, all of which requires reforms and sustained high levels of investment in the years to come. _________________ 1a COM(2021) 102 final 22 The European Climate Law sets a Union-wide climate neutrality objective by 2050 and requires Union institutions and Member States to progress in enhancing adaptive capacity, requiring significant public investment to reduce the negative socio-economic impacts of climate change on the EU and its Member States, including negative impacts on growth and fiscal sustainability.
Amendment 176 #
Proposal for a regulation
Recital 6
Recital 6
(6) The economic governance framework of the Union should put debt sustainability and sustainable and inclusive growth, through both reforms and investments, at its core and therefore differentiate between Member States by taking into account their public debt challenges and allowing country-specific fiscal trajectories.
Amendment 195 #
Proposal for a regulation
Recital 9
Recital 9
(9) National medium-term fiscal- structural plans should bring together the fiscal, structural reforms and investment commitments of each Member State and these plans should be the cornerstone of the economic governance framework of the Union. Each Member State should present a medium-term plan that sets out its fiscal trajectory as well as priority strategic public investment and reform commitments that together ensureshould contribute to sustained and gradual debt reduction and sustainable and inclusive growth and resilience, avoiding a pro- cyclical fiscal policy, as well as broader reform and investment commitments, including in relation to the green and digital transitions, social and economic resilience and the implementation of the European Pillar of Social Rights. During the lifetime of the Recovery and Resilience Facility25 , commitments undertaken in the national Recovery and Resilience Plans should be duly taken into account. _________________ 25 Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17).
Amendment 202 #
Proposal for a regulation
Recital 10 a (new)
Recital 10 a (new)
(10 a) Investments have proven to be an essential part of the economic and social recovery after the pandemic, and in response to inflation and the rise of the energy prices. In addition to investments in infrastructure, multiannual social investment in human capital, in particular in education, health and labour market integration, could harness the opportunities for societal and individual growth.
Amendment 204 #
Proposal for a regulation
Recital 11
Recital 11
(11) The presentation of the national medium-term fiscal-structural plan should be accompanied by an opinion of the independent fiscal institutions of the Member State and should be preceded by a technical dialogue with the Commission to ensure compliance with the provisions of this Regulation. On the basis of a recommendation from the Commission, accompanied by a report from the European Fiscal Board, the Council should set the net expenditure path and endorse the reform and investment commitments, including those taken for the possible extension of the adjustment period, as appropriate.
Amendment 211 #
Proposal for a regulation
Recital 12
Recital 12
(12) In order to simplify the Union fiscal framework and increase transparency, a single operational indicator anchored in debt sustainability should serve as a basis for setting the fiscal path and carrying out annual fiscal surveillance for each Member State. That single operational indicator should be based on nationally financed net primary expenditure, that is to say expenditure net of discretionary revenue measures and excluding interest expenditure as well as cyclical unemployment expenditure, costs related to the borrowing of funds for the loans related to the national plans in accordance with the Recovery and Resilience Facility, and expenditure on Union programmes fully matched by revenue from Union funds. This indicator allows for macro-economic stabilisation as it is not affected by the operation of automatic stabilisers, including revenue and expenditure fluctuations outside the direct control of the government.
Amendment 243 #
Proposal for a regulation
Recital 16 a (new)
Recital 16 a (new)
(16 a) In the development process of the medium-term fiscal-structural plan, Member States should also consider consulting relevant stakeholders, including local and regional authorities, social partners, civil society organisations, youth organisations.
Amendment 245 #
Proposal for a regulation
Recital 17
Recital 17
(17) When Member States use assumptions in their medium-term fiscal- structural plan that differ from the Commission’s standard medium-term debt projection framework, they should explain and duly justify the differences in a transparent manner and based on sound economic arguments. The independent fiscal institutions of the Member State should also opine on the justifications for deviating from the technical trajectory.
Amendment 253 #
Proposal for a regulation
Recital 20
Recital 20
(20) The Commission’s assessment of the national medium-term fiscal-structural plans should examine in particular the plausibility of the macroeconomic and fiscal assumptions, to the extent that they depart from those underlying the technical trajectory. In particular, the debt projections at unchanged policy to be included in the plan should be consistent and comparable with the Commission projections. The opinions of the independent fiscal institutions and European Fiscal Board should be duly taken into account by the Commission.
Amendment 261 #
Proposal for a regulation
Recital 22
Recital 22
(22) To ensure a more gradual debt reduction, the adjustment period can be extended by a maximum of 3 years if the Member State underpins its medium-term fiscal-structural plan with a set of verifiable and time-bound reforms and investment that, taken altogether: are growth-enhancing, improve the resilience of the economy, support fiscal sustainability, address the common priorities of the Union, address relevant country-specific recommendations addressed to the Member State under the European Semester, and address the country-specific investment priorities without leading to cuts in other nationally financed public investment over the adjustment period in order to ensure a macroeconomic impact of investments and avoid crowding out of other investment priorities.
Amendment 266 #
Proposal for a regulation
Recital 24 a (new)
Recital 24 a (new)
Amendment 269 #
Proposal for a regulation
Recital 25
Recital 25
(25) Where the verifiable and time- bound set of reform and investment commitments underpinning the more gradual net expenditure path is not met within the specified deadline, the Council, on a recommendation from the Commission, can recommend that adjustment be steepened, that is to say by shortening the extension of the net expenditure path. Both net expenditure significantly exceeding the net expenditure path and a significant cumulated debit balance should be considered as not in compliance with the net expenditure path. Such a measure should ensure that Member States undertake necessary consolidation even in times of economic growth.
Amendment 277 #
Proposal for a regulation
Recital 27
Recital 27
(27) Independent fiscal institutions have proven their capacity to foster fiscal discipline and strengthen the credibility of Member States’ public finances. In order to enhance national ownership and the accountability of the national governments, the role of independent fiscal institutions, traditionally mandated to monitor compliance with the national framework, should be expanded to the economic governance framework of the Union.
Amendment 291 #
(31) There should also be a country- specific escape clause to allow a deviation from the net expenditure path provided that it does not endanger fiscal sustainability in the medium term in the case of exceptional circumstances, such as unpredictable exogenous events that could not have been prevented and that require counter-cyclical fiscal measures, outside the control of the Member State which have a major impact on the public finances of the Member State. Such major impact should result in an overall size of the shock that exceeds a ‘normal’ range: for example costs of natural disasters should be factored in in budgetary planning within a certain range. Exceptional circumstances should be considered as a significant negative GDP shock. The triggering and extension of general and country-specific escape clauses are subject to a Council recommendation and accompanied by an opinion from the European Fiscal Board .
Amendment 300 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
This Regulation sets out rules ensuring effective coordination of economic policies of the Member States, thereby supporting the achievement of the Union’s objectives for growth andsustainable growth, competitiveness, and quality employment.
Amendment 313 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
It lays down detailed rules concerning the content, submission, assessment and monitoring of national medium-term fiscal- structural plans as part of multilateral budgetary surveillance by the Council and the Commission, with involvement of the European Parliament, so as to promote debt sustainability, strategic reforms and investments, and sustainable and inclusive growth in the Member States and prevent the occurrence of excessive government deficits, by medium-term planning.
Amendment 325 #
Proposal for a regulation
Article 2 – paragraph 1 – point 2
Article 2 – paragraph 1 – point 2
(2) ‘net expenditure’ means government expenditure net of interest expenditure, discretionary revenue measures, costs related to the borrowing of funds for the loans related to the national plans in accordance with the Recovery and Resilience Facility in accordance with Regulation (EU) 2021/241, cyclical elements of unemployment benefit expenditure, and other budgetary variables outside the control of the government as set out in Annex II, point (a);
Amendment 347 #
Proposal for a regulation
Article 2 – paragraph 1 – point 6
Article 2 – paragraph 1 – point 6
(6) ‘annual progress report’ means the document of a Member State reporting on the implementation of the national medium-term fiscal-structural plan, including the net expenditure path, and of the reforms and investment commitments included in its national medium-term fiscal-structural plan;
Amendment 354 #
Proposal for a regulation
Article 2 – paragraph 1 – point 7 a (new)
Article 2 – paragraph 1 – point 7 a (new)
(7 a) ‘planning horizon’ means adjustment period;
Amendment 364 #
Proposal for a regulation
Article 2 – paragraph 1 – point 10 a (new)
Article 2 – paragraph 1 – point 10 a (new)
(10 a) ‘projection period‘ means the adjustment period plus ten years.
Amendment 387 #
Proposal for a regulation
Article 3 – paragraph 2 – point c
Article 3 – paragraph 2 – point c
(c) the submission, assessment and endorsement of Member States’ medium- term fiscal-structural plans, where appropriate, as well as their monitoring via the annual progress reports;
Amendment 391 #
Proposal for a regulation
Article 3 – paragraph 2 – point d a (new)
Article 3 – paragraph 2 – point d a (new)
(d a) the surveillance to detect, prevent and correct challenges identified in the social convergence reports under the Social Convergence Framework;
Amendment 407 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
1. Where necessary, following the assessment pursuant to this Regulation of the medium-term fiscal-structural plans, the annual progress reports and the socio- economic situation of the Member States concerned, the Council shall, on the basis of recommendations from the Commission, address recommendations to those Member States making full use of the legal instruments provided in Articles 121 and 148 TFEU and related secondary legislation. Such recommendations shall identify relevant measures to be taken in case of insufficient progress towards achieving applicable targets in line with Member States' reporting under Article 3.
Amendment 433 #
Proposal for a regulation
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
To aid the preparation of the report, the European Commission may consult the relevant Member State and national independent fiscal institution on the proposed technical trajectory. The report mentioned in paragraph 1 shall also be referred to the European Parliament. The European Parliament is entitled to organise a hearing or conduct a written consultation with the relevant Commissioner in order to gather additional information on the proposed technical trajectory in the two weeks following the submission of the report.
Amendment 435 #
Proposal for a regulation
Article 6
Article 6
Amendment 510 #
Proposal for a regulation
Article 6 a (new)
Article 6 a (new)
Article6a Requirements for setting the technical trajectory When designing the technical trajectory for each Member State, the Commission shall ensure that: (a) by the end of the adjustment period, at the latest, the 10-year debt trajectory in the absence of further budgetary measures is on a credibly downward path or stays at prudent levels; (b) the government deficit is brought and maintained below the 3% of GDP reference value in the absence of further budgetary measures over the same 10- year period; (c) for the years that the Member State concerned is expected to have a deficit above the 3% of GDP reference value, and the excess is not close and temporary, the technical trajectory is also consistent with the benchmark referred to under Article 3 of Regulation (EC) No 1467/97 as amended by Regulation (EU) [on the corrective arm]; (d) the public debt ratio stabilises over the adjustment period and is reduced over the projection period. The Commission will set out the minimum annual average adjustment figure for each Member State within a range of [x] p.p of debt to GDP and [y] p.p of debt to GDP, depending on that Member State's debt levels and sustainability and the business cycle, for the whole projection period. The technical trajectories shall be differentiated for each Member State.
Amendment 514 #
Proposal for a regulation
Article 7 – paragraph 1 – introductory part
Article 7 – paragraph 1 – introductory part
1. By [1 March] of the year [xxxx] in which the Member States have to submit for the first time their medium-term fiscal- structural plans or by [1 March] of the final year covered by the ongoing medium-term fiscal-structural plan or, as appropriate, within 3 weeks from the request of the Member State to submit a new plan, the Commission shall publish:
Amendment 520 #
Proposal for a regulation
Article 7 – paragraph 1 – point a
Article 7 – paragraph 1 – point a
(a) the underlying medium-term public debt projection framework, based on the debt sustainability analysis methodology, and results;
Amendment 539 #
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. For Member States having a government deficit below the 3% of GDP reference value and public debt below the 60% of GDP reference value, the Commission shall provide technical information regarding the structural primary balance necessary to ensure that the headline deficit is maintained below the 3% of GDP reference value and the public debt ratio remains below the 60% of GDP reference value, both without any additional policy measures over a 10-year period after the end of the national medium-term fiscal-structural plan.
Amendment 543 #
Proposal for a regulation
Article 7 – paragraph 3
Article 7 – paragraph 3
3. The Commission shall update the technical trajectories and the quantitative guidance at least once every 4 yearsfor every Member State as referred to in Article 5(1) in time for the submission of the next cycle of medium- term fiscal-structural plans.
Amendment 554 #
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
To assess plausibility that the projected public debt ratio of the Member State concerned is on a downward path or remains at a prudent level, the Commission shall use the methodology referred to in Annex Va methodology based on the following conditions: (i) public debt ratio should be declining, or stay at prudent levels, under the deterministic scenarios of the Commission’s medium-term public debt projection framework described in the Debt Sustainability Monitor 2022; (ii) the risk of the public debt ratio not decreasing in the 5 years following the adjustment period of the national medium-term fiscal-structural plan is sufficiently low. The risk is assessed with the help of the Commission’s stochastic analysis. The Commission shall adopt a delegated act defining the methodology to be used for assessing plausibility, in accordance with the provisions of Article 33. The Commission shall make public its analysis of plausibility and the underlying data.
Amendment 570 #
Proposal for a regulation
Article 8 a (new)
Article 8 a (new)
Article8a Prior guidance by independent fiscal institutions 1. Each Member State shall make a draft plan available to the independent fiscal institution referred to in Article 8 of the Council Directive [on the national budgetary frameworks], at least 1 month before the submission of the national medium-term fiscal-structural plan. 2. The relevant independent fiscal institution shall assess the draft plan and shall give an opinion to the Member State. This opinion shall be made public. 3. In particular, the assessment shall address: (a) the feasibility of complying with the net expenditure path considering the macroeconomic forecast and assumptions and the expected impact of the fiscal policies included in the draft plan; (b) whether the draft plan complies with the requirements set out in Article 12; (c) the sound and verifiable economic arguments explaining the difference between the net expenditure path and the technical trajectory referred to in Article 11(2) of this Regulation.
Amendment 580 #
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
Each Member State shall submit to the Council and to the Commission a national medium-term fiscal-structural plan, accompanied by an opinion of the independent fiscal institutions of the Member State, before end-April following the entry into force of this Regulation. The Member State concerned and the Commission may agree to extend this deadline by a reasonable period if necessary.
Amendment 583 #
Proposal for a regulation
Article 9 – paragraph 1 a (new)
Article 9 – paragraph 1 a (new)
Amendment 595 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
Prior to the submission of its national medium-term fiscal-structural plan, the Member State concerned shall hold with the Commission a technical dialogue, with the objective of ensuring that the national medium-term fiscal-structural plan complies with Articles 11, 12 and, 14 and, where relevant, Article 143.
Amendment 607 #
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 1
Article 11 – paragraph 1 – subparagraph 1
The national medium-term fiscal-structural plan shall provide the information listed in Annex II. In particular, it shall present a net expenditure trajectorypath covering a period of at least 4 years, as well as the underlying macroeconomic assumptions and the planned fiscal-structural measures in order to demonstrate compliance with the requirements of Article 12.
Amendment 623 #
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. Where the national-medium-term fiscal-structural plan includes a higher net expenditure trajectory than in the technical trajectory issued by the Commission pursuant to Article 5, the Member State shall provide in its plan sound and verifiable economic arguments explaining the difference. The explanation shall be accompanied by an assessment by the Independent Fiscal Institutions of the Member State of the economic arguments put forward by the Member State.
Amendment 627 #
Proposal for a regulation
Article 12 – title
Article 12 – title
Requirements of the national medium- term fiscal-structural plans
Amendment 634 #
Proposal for a regulation
Article 12 – paragraph 1 – point a
Article 12 – paragraph 1 – point a
(a) ensure the fiscal adjustment necessary to put or keep public debt on a plauscredibly downward path by the end of the adjustment period at the latest, or remain at prudent levels, and to bring and maintain the government deficit below the 3% of GDP reference value over the medium term;
Amendment 637 #
Proposal for a regulation
Article 12 – paragraph 1 – point a a (new)
Article 12 – paragraph 1 – point a a (new)
(a a) assess the national public and private investment gaps to achieve the common priorities of the Union listed in Article 12;
Amendment 653 #
Proposal for a regulation
Article 12 – paragraph 1 – point b
Article 12 – paragraph 1 – point b
(b) explain how it will ensure the delivery of investment and reforms responding to the main challenges identified within the European Semester, in the country-specific recommendations, correct the identified macroeconomic imbalances under the Macroeconomic Imbalances Procedure if applicable, and address the common priorities of the Union referred to in Annex VI of this Regulation, including the European Green Deal, European Pillar of Social Rights and the Digital Decade while being consistent with the updated National Energy and Climate Plans and the National Digital Decade Roadmaps;
Amendment 661 #
Proposal for a regulation
Article 12 – paragraph 1 – point b a (new)
Article 12 – paragraph 1 – point b a (new)
(b a) explain how it will ensure consistency with the updated National Energy and Climate Plans and the National Digital Decade Roadmaps;
Amendment 664 #
Proposal for a regulation
Article 12 – paragraph 1 – point b b (new)
Article 12 – paragraph 1 – point b b (new)
(b b) explain how it will address the common priorities of the Union referred to in Annex VI, including the European Green Deal, European Pillar of Social Rights, including the related targets on employment, skills and poverty reduction by 2030, and the Digital Decade while being consistent with the updated National Energy and Climate Plans and the National Digital Decade Roadmaps. In addition, it shall explain how it will ensure consistency with the broad guidelines for the economic policies of the Member States and with the employment guidelines in accordance with Article 121(2) and Article 148(2) TFEU;
Amendment 675 #
Proposal for a regulation
Article 12 – paragraph 1 – point d a (new)
Article 12 – paragraph 1 – point d a (new)
(d a) quantify the current and planned green transition expenditures, in particular for activities listed in Annex VI of Regulation (EU) 2021/241 for sectors listed in NACE Rev.2 (A*64 aggregation level).
Amendment 682 #
Proposal for a regulation
Article 12 – paragraph 1 – point d b (new)
Article 12 – paragraph 1 – point d b (new)
(d b) explain how it will ensure consistency and, where appropriate, complementarity the EU funds, namely cohesion policy funds from which the Member State concerned benefits.
Amendment 699 #
Proposal for a regulation
Article 13 – paragraph 2 – subparagraph 1
Article 13 – paragraph 2 – subparagraph 1
The set of reform and investment commitments underpinning an extension of the adjustment period, shall be commensurate with the degree of public debt challenges and challenges to medium- term growth in the Member State concerned, including demographic challenges.
Amendment 708 #
Proposal for a regulation
Article 13 – paragraph 2 – subparagraph 2 – point i
Article 13 – paragraph 2 – subparagraph 2 – point i
(i) be growth enhancing or improve the resilience of the economy;
Amendment 735 #
Proposal for a regulation
Article 13 – paragraph 2 – subparagraph 2 – point v
Article 13 – paragraph 2 – subparagraph 2 – point v
Amendment 747 #
Proposal for a regulation
Article 13 – paragraph 3
Article 13 – paragraph 3
3. Each of the reform and investment commitments underpinning an extension of the adjustment period shall be sufficiently detailed, front-loadedistributed proportionally throughout the period covered by the plan and at the latest by the end of the adjustment period, time-bound and verifiable.
Amendment 752 #
Proposal for a regulation
Article 13 – paragraph 4
Article 13 – paragraph 4
4. During the lifetime of the Recovery and Resilience Facility, in accordance with Regulation (EU) 2021/241, commitments included in the approved Recovery and Resilience Plan of the Member State concerned canshall be taken into account for an extension of the adjustment period, as long as they fulfil the requirements laid down in paragraphs 1, 2 and 3 of this Article.
Amendment 754 #
Proposal for a regulation
Article 13 – paragraph 4 a (new)
Article 13 – paragraph 4 a (new)
4 a. Commitments included in the Partnership Agreement in Multiannual Financial Framework can also be taken into account for an extension of the adjustment period, as long as they fulfil the requirements laid down in paragraphs 1, 2 and 3.
Amendment 755 #
Proposal for a regulation
Article 13 – paragraph 4 b (new)
Article 13 – paragraph 4 b (new)
4 b. Commitments that are matched by at least 40% private investment may, upon request for approval from the Commission, exceptionally account for this investment evenly until the maturity of the investment, meaning that the credit recorded in the control account may be spread evenly over the lifetime of the investment.
Amendment 772 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. A Member State may request to submit a revised national medium-term fiscal-structural plan to the Commission no later than six months before the end of its adjustment periodplanning horizon if there are objective circumstances preventing the implementation of the original national medium-term fiscal- structural plan or if the submission of a new national medium-term fiscal-structural plan is requested by a new government.
Amendment 775 #
Proposal for a regulation
Article 14 – paragraph 1 a (new)
Article 14 – paragraph 1 a (new)
1 a. A revised national medium-term fiscal-structural plan submitted by a new government shall only reverse or remove investments present in the original plan if their removal does not result in unjustified additional costs for the Member State.
Amendment 776 #
Proposal for a regulation
Article 14 – paragraph 1 b (new)
Article 14 – paragraph 1 b (new)
1 b. A revised national medium term fiscal structural plan shall be accompanied by an opinion of the Independent Fiscal Institutions of the Member State on the objective circumstances preventing the implementation of the original plan and, where relevant, the necessity to remove or reverse committed investments.
Amendment 782 #
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. Prior to the submission of the revised national medium-term fiscal- structural plan, the Commission shall put forward, in a report to the Economic and Financial Committee, a new technical trajectory or technical information, where applicable .
Amendment 785 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. Taking into account the phe new technical trajectory shall, ast adjustment of the Member State concerned rule, uphold the ambition orf the lack thereof, the new technical trajectory shallprevious fiscal path, not allow backloading of the fiscal adjustment effort and shall not lead to a lower fiscal adjustment effort.
Amendment 798 #
Proposal for a regulation
Article 15 – paragraph 1
Article 15 – paragraph 1
1. The Commission shall assess each national medium-term fiscal-structural plan within 2 months of its submission. The Member State concerned and the Commission may agree to extend the period of assessment by a reasonable period if necessary, not exceeding one additional month.
Amendment 810 #
Proposal for a regulation
Article 15 – paragraph 2 – point a
Article 15 – paragraph 2 – point a
(a) whether the national medium-term fiscal-structural plan ensures that public debt is put or kept on a plauscredibly downward path by the end of the adjustment period at the latest, or stays at prudent levels;
Amendment 823 #
Proposal for a regulation
Article 15 – paragraph 2 – point c
Article 15 – paragraph 2 – point c
(c) whether the government deficit is maintained below the 3% of GDP reference value in the absence of further budgetary measures over a period of 10 years after the end of the plan;
Amendment 854 #
Proposal for a regulation
Article 15 – paragraph 2 – point f
Article 15 – paragraph 2 – point f
(f) for Member States fulfilling the criteria of Article 5(1), whether the public debt ratio at the end of the planning horizon is below the public debt ratio in the year before the start of the technical trajectory.
Amendment 885 #
Proposal for a regulation
Article 16 – paragraph 1 a (new)
Article 16 – paragraph 1 a (new)
The Commission recommendation shall be accompanied by a report from the European Fiscal Board assessing the plausibility of the expenditure path, the assumptions underlying the investment commitments if an extensions of the adjustment period is foreseen, and compliance with the criteria laid down in Article 15(2) and (3).
Amendment 899 #
Proposal for a regulation
Article 18 – paragraph 1 – introductory part
Article 18 – paragraph 1 – introductory part
The Council shall, on a recommendation from the Commission, recommend to the Member State concerned that the technical trajectory issued by the Commission, in accordance with Article 5, be the net expenditure path of the Member State where:
Amendment 907 #
Proposal for a regulation
Article 18 – paragraph 1 – point c
Article 18 – paragraph 1 – point c
(c) the Member State fails to submit an initial national medium term fiscal- structural plan or a new national medium- term fiscal-structural plan at the end of the periodfinal year covered by the previous national medium-term fiscal- structural plan.
Amendment 913 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
Where a Member State has been granted an extension of its adjustment period but fails to satisfactorily comply with its set of reform and investment commitments underpinning the extension referred to in Article 13(1), the Council may on a recommendation from the Commission, recommend that the Member State concerned submits an amended national medium-term fiscal-structural plan with a revised net expenditure path with a shorter adjustment period.
Amendment 921 #
Proposal for a regulation
Article 20 – paragraph 1
Article 20 – paragraph 1
1. Each Member State shall submit to the Commission an annual progress report on the implementation of its national medium-term fiscal-structural plan, by 15 April each year at the latesteach year in April, preferably by mid-April and not later than 30 April.
Amendment 925 #
Proposal for a regulation
Article 20 – paragraph 2
Article 20 – paragraph 2
2. The annual progress report referred to in paragraph 1 shall contain in particular information about the progress in the implementation of the net expenditure path, the implementation of broader reform and investment commitments in the European Semester context and, if applicable, in the implementation of the set of reform and investment commitments underpinning an extension of the adjustment period and progress in reducing the investment gaps referred to in Article 12 paragraph (aa).
Amendment 933 #
Proposal for a regulation
Article 21 – paragraph 1
Article 21 – paragraph 1
The Commission shall monitor the implementation of the national medium- term fiscal-structural plan, and in particular, the net expenditure path and the reform and investment commitments.
Amendment 936 #
Proposal for a regulation
Article 21 – paragraph 2
Article 21 – paragraph 2
The Commission shall set up a control account, functioning in accordance with Annex IV, and shall keep track of cumulative upward (debit) and downward (credit) deviations of actual net expenditures from the net expenditure path. The cumulated balance of the control account in a given period is the sum of the yearly debits and credits registered during that period. A Member state will be deemed not to be in compliance with its net expenditure path when: (a) net expenditure exceeds the net expenditure path by more than [xxx] % of GDP in one single year of the plan horizon;or, (b) the cumulated balance of the control account exceeds a debit of more than [xxx]% of GDP.
Amendment 951 #
Proposal for a regulation
Article 22 – paragraph 1
Article 22 – paragraph 1
Each national independent fiscal institution referred to in Article 8 of Council Directive […]32 [on the national budgetary frameworks] shall provide an assessment of compliance of the budgetary outturns data reported in the progress report referred to in Article 20 with the net expenditure path. Where applicable, each national independent fiscal institution shall also analyse the factors underlying a deviation from the net expenditure path. The assessment shall be made public and shall be submitted to the Member State and to the Commission. _________________ 32 Council Directive […] of […] [amending Council Directive 2011/85/EU on requirements for budgetary frameworks of the Member States] (OJ …., …, p,…)
Amendment 958 #
Proposal for a regulation
Article 22 a (new)
Article 22 a (new)
Amendment 970 #
Proposal for a regulation
Article 23 – paragraph 1
Article 23 – paragraph 1
1. In the event of a significant risk of deviation from the net expenditure path or a risk that the government deficit may significantly exceed the 3% of GDP reference value, the Commission may address a warning to the Member State concerned in accordance with Article 121(4) TFEU.
Amendment 982 #
Proposal for a regulation
Article 24 – paragraph 1
Article 24 – paragraph 1
On a recommendation from the Commission, the Council may adopt a recommendation, accompanied by an opinion from the European Fiscal Board, allowing Member States to deviate from their net expenditure path, in the event of a severe economic downturn in the euro area or the Union as a whole, provided it does not endanger fiscal sustainability in the medium term. The Council shall specify a time-limit for such deviation.
Amendment 1000 #
Proposal for a regulation
Article 25 – paragraph 1
Article 25 – paragraph 1
On a recommendation from the Commission, accompanied by an opinion from the European Fiscal Board, the Council may adopt a recommendation allowing a Member State to deviate from its net expenditure path where exceptional circumstances outside the control of the Member State lead to a major impact on the public finances of the Member State concerned, provided it does not endanger fiscal sustainability in the medium term. The Council shall specify a time-limit for such a deviation.
Amendment 1014 #
Proposal for a regulation
Article 26 – paragraph 1
Article 26 – paragraph 1
The European Parliament shall be duly involved in the European Semester in order to increase the transparency and ownership of, and the accountability for the decisions taken, in particular by means of an economic dialogue, as well as for setting macroeconomic and social policy priorities. The Economic and Financial Committee, the Economic Policy Committee, the Employment Committee and the Social Protection Committee shall be consulted within the framework of the European Semester where appropriate. Relevant stakeholders, in particular the social partners, shall be involved within the framework of the European Semester, on the main policy issues where appropriate, in accordance with the provisions of the TFEU and national legal and political arrangements.
Amendment 1031 #
Proposal for a regulation
Article 30 – paragraph 1
Article 30 – paragraph 1
Amendment 1036 #
Proposal for a regulation
Article 30 – paragraph 2 a (new)
Article 30 – paragraph 2 a (new)
2 a. Where the Council decides against opening an excessive imbalance procedure under Article 7 (2) of Regulation (EU) No 1176/2011 in cases where the Commission considers that the Member State concerned is affected by excessive imbalances on the basis of the in-depth review referred to in Article 5 of that Regulation, it shall publicly explain its position.
Amendment 1038 #
Proposal for a regulation
Article 31 – paragraph 2 a (new)
Article 31 – paragraph 2 a (new)
Where a Member State becomes subject to a macroeconomic adjustment programme in accordance with Article 7 of Regulation (EU) No 472/2013, the medium-term fiscal-structural plan shall be taken into account in the design of the macroeconomic adjustment programme.
Amendment 1045 #
Proposal for a regulation
Article 33 – paragraph 2
Article 33 – paragraph 2
2. The power to adopt delegated acts referred to in Article 8 and Article 32 shall be conferred for an indeterminate period of time from XXXthe entry into force of this Regulation .
Amendment 1047 #
Proposal for a regulation
Article 33 – paragraph 3
Article 33 – paragraph 3
3. The delegations of power referred to in Article 8 and Article 32 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect on the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
Amendment 1050 #
Proposal for a regulation
Article 33 – paragraph 6
Article 33 – paragraph 6
6. A delegated act adopted pursuant to Article 8 and Article 32 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of one month of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by one month at the initiative of the European Parliament or of the Council.
Amendment 1059 #
Proposal for a regulation
Article 36 – paragraph 1
Article 36 – paragraph 1
1. By [31 December 203029] and every 5 years thereafter, the Commission shall submit to the European Parliament and to the Council a report on the application of this Regulation accompanied, where appropriate, by a proposal to amend this Regulation. The Commission shall make that report public.
Amendment 1061 #
Proposal for a regulation
Article 36 – paragraph 2 – introductory part
Article 36 – paragraph 2 – introductory part
2. The report referred to in paragraph 1 shall assess and review:
Amendment 1064 #
Proposal for a regulation
Article 36 – paragraph 2 – point a
Article 36 – paragraph 2 – point a
(a) the effectiveness of this Regulation, particularly whether the provisions governing decision-making have proved sufficiently efficient in ensuring a downward path for public debt ratios or maintaining them at prudent levels in accordance with the relevant Council recommendations, in promoting debt sustainability and sustainable and inclusive growth in the Member States and in preventing the occurrence of excessive government deficits;
Amendment 1066 #
Proposal for a regulation
Article 36 – paragraph 2 – point a a (new)
Article 36 – paragraph 2 – point a a (new)
(a a) the use of the delegated powers as stated in Article 33;
Amendment 1068 #
Proposal for a regulation
Article 36 – paragraph 2 – point b
Article 36 – paragraph 2 – point b
(b) the progress in ensuring closer coordination of economic policies and sustained upward convergence of economic and social performances of the Member States.
Amendment 1076 #
Proposal for a regulation
Annex I
Annex I
Amendment 1111 #
Proposal for a regulation
Annex II – paragraph 1 – point f
Annex II – paragraph 1 – point f
(f) In case the Member State makes use of assumptions referred to under point (e) that differ from the Commission’s assumptions over the adjustment period of the national medium-term fiscal-structural plan and the subsequent10-year period in the absence of further budgetary measures, or if the proposed technical trajectory deviates from the one put forward by the Commission, due explanations and justifications based on sound economic arguments of these differences.
Amendment 1116 #
Proposal for a regulation
Annex II – paragraph 1 – point h
Annex II – paragraph 1 – point h
Amendment 1122 #
Proposal for a regulation
Annex II – paragraph 1 – point j
Annex II – paragraph 1 – point j
(j) Total public investment expenditure, as well as rReforms and public investment expenditure addressing the common priorities of the Union referred to in Annex VI.
Amendment 1126 #
Proposal for a regulation
Annex II – paragraph 1 – point l
Annex II – paragraph 1 – point l
(l) A quantification, as much as possible, of the expected impacts of reforms and investment referred to under point (k) on fiscal sustainability, growth andsustainable and inclusive growth, competitiveness and quality employment, where applicable in line with commonly agreed methodologies.
Amendment 1131 #
Proposal for a regulation
Annex II – paragraph 1 – point o
Annex II – paragraph 1 – point o
Amendment 1145 #
Proposal for a regulation
Annex III – paragraph 1 – point f
Annex III – paragraph 1 – point f
(f) During the lifetime of the Recovery and Resilience Facility, any EU investment instrument that would serve a similar purpose, information on the progress of implementation of the Recovery and Resilience Plan, to comply with the bi-annual reporting requirements in the context of the European Semester set out in Article 27 of Regulation (EU) 2021/241.
Amendment 1159 #
Proposal for a regulation
Annex IV – paragraph 3
Annex IV – paragraph 3
The cumulated balance of the control account in a given period is the sum of the yearly debits and credits registered during that period. A Member State will be deemed not to be in compliance with its net expenditure path when: (a) net expenditure exceeds the net expenditure path by more than [xxx] % of GDP in one single year of the plan horizon;or, (b) the cumulated balance of the control account exceeds a debit of more than [xxx]% of GDP.
Amendment 1163 #
Proposal for a regulation
Annex V – paragraph 1 – introductory part
Annex V – paragraph 1 – introductory part
The methodology for the assessment of plausibility pursuant to Article 8 is replicable, predictable and transparent and based on the following conditions: