WIREDGOV

The European Parliament and the Council have agreed on new rules aimed at equipping the EU budget with simpler financial rules while securing sound treatment of European taxpayers' money. Thanks to an expanded room of manoeuvre provided by the Permanent Representatives Committee1 to the Danish presidency last Friday, subsequent contacts between the European Parliament and the Council have confirmed an agreement on a compromise text. In order to enter into force the new rules have to be formally adopted by the European Parliament and subsequently by the Council in first reading and published in the Official Journal of the EU.

The financial regulation can be considered as a corner stone of the EU legislation since it contains all the principles and rules for the implementation of the EU budget and is applicable to all areas of expenditure and all revenue. The agreement on the financial regulation paves the way for the adoption of around 70 proposals for sector specific legislative acts covering areas such as agriculture, cohesion policy, research, environment, transport, energy and external aid.

The main objectives of the revision of the financial regulation are to cut red tape, increase the leverage effect of limited EU funds and assure more accountability for the EU taxpayer.

Click here for full press release