Legal provisions of COM(2019)354 - Governance framework for the budgetary instrument for convergence and competitiveness for the euro area

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dossier COM(2019)354 - Governance framework for the budgetary instrument for convergence and competitiveness for the euro area.
document COM(2019)354 EN
date July 24, 2019



CHAPTER I
General provisions

Contents

Article 1 - Subject matter and scope

1. This Regulation lays down provisions for the governance framework relevant for the budgetary instrument for convergence and competitiveness for the euro area within the Reform Support Programme under Regulation (EU) XXX/XX 10 .

2. This Regulation shall apply to the Member States whose currency is the euro.

Article 2 - Definitions

For the purposes of this Regulation, the following definitions apply:

(a)‘country-specific recommendations’ means the Council recommendations addressed to each Member State in accordance with Article 121(2) and Article 148(4) TFEU in the context of the European Semester of economic policy coordination;

(b)‘euro-area recommendation’ means the Council recommendation on the economic policy of the euro area in accordance with Article 136 in conjunction with Article 121(2) TFEU.

Article 3 - Objectives

This Regulation shall contribute to the convergence and competitiveness of the economies of the Member States whose currency is the euro by defining a governance framework relevant for the budgetary instrument for convergence and competitiveness, which sets out:

(a)the strategic orientations on the reform and investment priorities of the euro area as a whole;

(b)country-specific guidance on the objectives of reforms and investment relevant for the budgetary instrument for convergence and competitiveness consistent with the country-specific recommendations.

Article 4 - Strategic orientations for the euro area

1. On a recommendation from the Commission and after discussion in the Eurogroup, the Council shall establish, as part of the euro-area recommendation and on an annual basis, the strategic orientations for the reform and investment priorities of the euro area.

2. In parallel to its recommendation referred to in paragraph 1, the Commission shall inform the Council on how the strategic orientations of the preceding years have been followed by the Member States.

Article 5 - Country-specific guidance 

1. The Council shall, on a recommendation from the Commission, adopt a recommendation addressed to all Member States whose currency is the euro providing, on an annual basis, country-specific guidance on the reform and investment objectives for the purposes of the reform and investment packages, which Member States may subsequently submit under Regulation (EU) XXXX/XX [Reform Support Programme Regulation].

2. The recommendation referred to in paragraph 1 shall be consistent with the strategic orientations referred to in Article 4 and with the country-specific recommendations for the Member State concerned. In the recommendation referred to in paragraph 1, the Council shall duly take into account any macroeconomic adjustment programme approved in accordance with Article 7(2) of Regulation (EU) No 472/2013.

Article 6 - Severe economic downturn

Where relevant, based on an assessment by the Commission, the recommendation referred to in paragraph 1 of Article 5 shall establish whether a Member State is experiencing a severe economic downturn, for the purposes of a modulation of national co-financing rates provided for in Regulation (EU) XXXX/XX [Reform Support Programme Regulation].

This Article shall be without prejudice to the application of Article 2(2) of Council Regulation (EC) 1467/97.

Article 7 - Voting in Council

1. As regards the measures referred to in this Regulation, only members of the Council representing Member States whose currency is the euro shall vote.

2. A qualified majority of the members of the Council referred to in paragraph 1 shall be defined in accordance with point (a) of Article 238(3) TFEU.

Article 8 - Economic dialogue

In order to enhance the dialogue between the Union institutions, in particular the European Parliament, the Council and the Commission, and to ensure greater transparency and accountability, the competent committee of the European Parliament may invite the President of the Council, the Commission and, where appropriate, the President of the Eurogroup to appear before the committee to discuss the measures taken pursuant to this Regulation.

Article 9 - Review

1. By 31 December 2023 and every four years thereafter, the Commission shall publish a report on the application of this Regulation. That report shall assess the effectiveness of this Regulation.

2. The Commission shall send the report to the European Parliament and to the Council.

Article 10 - Entry into force

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

This Regulation shall be binding in its entirety and directly applicable in the Member States in accordance with the Treaties.