New financial rules governing the EU budget (Financial Regulation)

 

SUMMARY OF:

Regulation (EU, Euratom) 2018/1046 — the financial rules applicable to the EU’s general budget

WHAT IS THE AIM OF THE REGULATION?

KEY POINTS

The new EU Financial Regulation:

Annual budgetary deadlines (in practice, the European Parliament, the Council and the Commission try to present the documents earlier to smoothe the procedure)

Delegated acts

The Commission has adopted two delegated acts based on the Financial Regulation:

These delegated acts replace previous regulations for these bodies.

The new rules strengthen the governance of these bodies, for example with respect to avoiding conflicts of interest. All bodies concerned must adopt financial rules based on these two delegated acts. They may only depart from them where their specific needs so require and after prior consent of the Commission.

FROM WHEN DOES THE REGULATION APPLY?

Most of the new rules have applied since 2 August 2018. Any exceptions are listed in Article 282 of the regulation.

BACKGROUND

KEY TERMS

Shell companies: companies, often without active business operations or significant assets. Although this type of company is not necessarily illegal, shell companies are sometimes used for the purposes of tax evasion, tax avoidance, and money laundering, or to achieve a specific goal such as anonymity.

MAIN DOCUMENT

Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, pp. 1-222)

RELATED DOCUMENTS

Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (OJ L 142, 29.5.2019, pp. 16-42)

Commission Delegated Regulation (EU) 2019/715 of 18 December 2018 on the framework financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article 70 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (OJ L 122, 10.5.2019, pp. 1-38)

Statements: Regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (first reading) — Adoption of the legislative act (OJ C 267I, 30.7.2018, pp. 1-3)

last update 12.07.2019