BRUSSELS (ChatnewsTV) — The European Union Council on Thursday adopted a revised financial regulation aimed at simplifying the execution of the EU budget. The revision aligns the financial rules with the bloc’s current multiannual financial framework (MFF) for 2021-2027 and introduces targeted improvements to reduce administrative burdens and increase efficiency, particularly during crises.
The revised regulation simplifies rules and procedures for recipients of EU funds, enhancing legal clarity and reducing red tape. It also improves the protection of the Union’s financial interests by ensuring stricter oversight and more streamlined processes for procurement during times of crisis.
The new regulation was informed by lessons learned from the COVID-19 pandemic, with adjustments to enable more efficient crisis management. It allows EU institutions to procure goods and services on behalf of member states or act as central purchasing bodies, with provisions for donating or reselling supplies and services.
“The changes reflect the EU’s commitment to improving crisis response and making budget processes more efficient,” said an EU Council spokesperson. “The new rules are designed to minimize administrative hurdles while safeguarding financial interests and ensuring data protection in a more digitalized environment.”
The regulation also introduces the concept of negative revenues, providing a solution for managing negative interest rates stemming from the reduction or annulment of competition fines until the end of the current MFF.
The European Parliament formally adopted the regulation on September 17, and with the Council’s approval, it will take effect shortly after its publication in the Official Journal of the European Union.
The Commission originally proposed the recast regulation in May 2022, with a provisional agreement reached between the Council and Parliament in December 2023.
