Council Directive (EU) 2024/1265 of 29 April 2024

What it is

ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion. BACKGROUND: the proposed changes to Council Directive 2011/85/EU on requirements for Member States' budgetary frameworks are part of a package which also includes: - a proposal for a regulation replacing Regulation (EC) No 1466/972 (preventive arm of the Stability and Growth Pact) and - amendment of Regulation (EC) No 1467/973 (corrective arm of the Stability and Growth Pact). The Committee on Economic and Monetary Affairs adopted the report by Esther de LANGE (EPP, NL) and Margarida MARQUES (S&D, PT) on the proposal for a Council directive amending Directive 2011/85/EU on requirements for budgetary frameworks of the Member States. The committee responsible recommended that the European Parliament approve the Commission's proposal subject to amendments. Members considered that Member States should ensure that independent fiscal institutions, such as structurally independent bodies or bodies endowed with functional autonomy as regards the budgetary authorities of the Member States, are established by national laws, regulations or binding administrative provisions, and adequately staffed and funded . Member States should ensure diversity of views and backgrounds in the composition of these institutions. - allow for the disclosure of minority and divergent positions in such assessments and opinions; - regularly exchange best practices among each other coordinated by the European Fiscal Board (EFB); - producing the annual and multiannual macroeconomic and budgetary forecasts underlying the government’s medium-term planning or supporting or, where applicable according to national rules, endorsing the planning by the budgetary authorities; - producing debt sustainability assessments underlying the government’s medium-term planning by the budgetary authorities or supporting or, where applicable according to national rules, endorsing the assessment; - producing assessments on the impacts of policies, including reform and investment commitments under the national medium-term fiscal-structural plans, on fiscal sustainability and sustainable and inclusive growth by the budgetary authorities or supporting or, where applicable according to national rules, endorsing; - participate in regular hearings and discussions at the national Parliament and be available to provide technical analysis and advice to the national Parliament upon request. Medium-term budget frameworks should include procedures for establishing the following elements: - a description of medium-term policies, including investment and reforms, and if applicable, specifying the investments and reforms in the common priorities of the Union referred to in the Regulation on the preventive arm of the stability and growth pact; - an assessment as to how in the light of their direct medium-term and long-term impact on general government finances, the policies envisaged are likely to affect the medium-term and long-term sustainability of the public finances and sustainable and inclusive growth. The assessment should specify, to the extent possible and…

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