This document is an excerpt from the EUR-Lex website
Document 32020Q1222(01)
Interinstitutional agreement on budgetary discipline, cooperation, sound financial management and own resources
Over the period of the multiannual financial framework (MFF) 2021-2027, the interinstitutional agreement (IIA) aims to:
The agreement is made up of 4 parts.
Part I: The MFF and special instruments
This part contains complementary details regarding the 2021-2027 MFF, including the mobilisation procedures of special instruments not included in the MFF:
Part II: Interinstitutional cooperation in budgetary matters
This part aims to improve the cooperation between the Parliament, the Council and the Commission in relation to budgetary matters. This includes the following.
Part III: Sound financial management of EU funds
This part deals with financial programming, which means the Commission must submit to the Council and the Parliament financial programming for the MFF twice a year (with some category exemptions), structured by heading, policy area and budget line, and should identify the legislation in force, distinguishing between multiannual programmes and annual actions.
This part also deals with the cooperation procedures which apply when a new agency is created, or when an amendment to a legal act concerning an agency would have an impact on that agency’s resources. A similar procedure applies when the creation of a new European school is envisaged.
Part IV: Protecting the EU budget: data on beneficiaries
To enhance the protection of the EU budget and the EU Recovery Instrument against fraud and irregularities, the institutions agree to introduce standardised measures to collect, compare and aggregate data on the final recipients and beneficiaries of EU funding for the purposes of controls and audits. In particular:
Two Annexes form an integral part of the IIA.
Annex I lays down additional detailed rules for cooperation between the institutions during the budgetary procedure. These cover:
Annex II sets out principles of the interinstitutional cooperation in order to introduce new own resources with a view to covering the expected expenditure related to the repayment of NextGenerationEU.
As a first step, a new own resource will be introduced from 1 January 2021 made up of a share of revenues from national contributions, calculated on the weight of non-recycled plastic packaging waste.
Moreover, the Commission will propose to the Council the introduction of new own resources based on a digital levy and on a carbon border adjustment mechanism. The Commission will also review the Emissions Trading System in spring 2021 and propose to the Council a new own resource on that basis in June 2021.
These 3 new own resources are envisaged to be introduced by 1 January 2023, provided the necessary legislative procedures are completed. This would constitute the second step.
As a third step, the Commission aims to propose to the Council by June 2024 an additional new own resource. This proposal could take the form of a Financial Transaction Tax and a financial contribution linked to the corporate sector or a new common corporate tax base. These are envisaged to be introduced by 2026, provided the necessary legislative procedures are completed.
The IIA entered into force on 16 December 2020.
In December 2020, the European Parliament, the Council and the Commission concluded an IIA on budgetary discipline, cooperation on budgetary matters and sound financial management as well as on new own resources, including a roadmap towards the introduction of new own resources.
The IIA was adopted in parallel to the multiannual financial framework (MFF) Regulation, the EU’s 7-year plan covering the 2021-2027 period.
The IIA forms part of a package of legislation associated with the MFF:
For more information, see:
Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources (OJ L 433I, 22.12.2020, pp. 28-46)
Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 (OJ L 433I, 22.12.2020, pp. 11-22)
Council Regulation (EU) 2020/2094 of 14 December 2020 establishing a European Union Recovery Instrument to support the recovery in the aftermath of the COVID-19 crisis (OJ L 433I, 22.12.2020, pp. 23-27)
Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union and repealing Decision 2014/335/EU, Euratom (OJ L 424, 15.12.2020, pp. 1-10)
Council Regulation (EC) No 2012/2002 of 11 November 2002 establishing the European Union Solidarity Fund (OJ L 311, 14.11.2002, pp. 3-8)
Successive amendments to Regulation (EC) No 2012/2002 have been incorporated into the original text. This consolidated version is of documentary value only.
last update 06.04.2021