Brussels (The Brussels Morning Newspaper) – The European Council assumed a revision of the EU’s financial regulation, which specifies the financial regulations applicable to the EU budget.
According to the European Council, the major reason for this targeted revision is the requirement to align the financial rule with the current multiannual financial framework (MFF) 2021-2027. Additional targeted modifications and simplifications are raised, such as better protection of the Union’s financial interests, requirements for procurement in times of crisis, and facilitated rules and procedures for beneficiaries.
What are the main changes introduced by the new regulation?
The new regulation facilitates rules and procedures, to enhance legal certainty and clarity for recipients while decreasing administrative burden for applicants. Certain derogations from the budgetary principles formed in the sectoral basic acts will be recalled in the financial regulation in line with the ‘single rulebook’ approach.
The new regulation assures that any additional administrative burden remains restricted for national administrations, and protects data protection in the process of digitalization. Building on the lessons retained from the COVID-19 pandemic, the latest regulation implements changes for more efficient crisis management, by allowing EU institutions or bodies to publicly procure goods and services on behalf of member states or to serve as a central purchasing body, to donate or resell supplies and services.
The regulation also presents the concept of negative revenues as a solution until the end of the current MFF for the financing of negative interests arising from the reduction or annulment of competition fines.
What are the next steps in the regulation?
On 16 May 2022, the EU Commission presented a recommendation for a recast regulation on the financial regulations applicable to the general budget of the Union. A provisional political agreement was discovered between the Council and the European Parliament at the trilogue on 7 December 2023.
The regulation has now been formally embraced by the European Parliament on 17 September and by the EU Council. The regulation is anticipated to enter into force and apply on the third day following its publication in the Official Journal of the European Union.
