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Requirements for budgetary frameworks of the Member States

Requirements for budgetary frameworks of the Member States

Outline of the Community (European Union) legislation about Requirements for budgetary frameworks of the Member States

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Economic and monetary affairs > Stability and growth pact and economic policy coordination

Requirements for budgetary frameworks of the Member States

Document or Iniciative

Directive 2011/85/UE of the Council of 8 November 2011 on the requirements for budgetary frameworks of the Member States [Official Journal L 306 of 23.11.2011].

Summary

This Directive shall apply to the national budgetary frameworks of the Member Sates. The budgetary frameworks detail all the measures, rules and institutions through which the public administrations in the Member States conduct the budgetary policy.

The Directive lays down rules applicable to specific elements of the budgetary frameworks, in particular:

  • systems of budgetary accounting and statistical reporting;
  • rules and procedures governing the preparation of forecasts for budgetary planning;
  • country-specific numerical fiscal rules, such as the debt or deficit limits;
  • medium-term budgetary frameworks;

System of accounting and statistical reporting

Member States shall have in place public accounting systems comprehensively and consistently covering all sub-sectors of general government.

The accounting systems must also enable Member States to ensure regular public availability of fiscal data for all sub-sectors of general government.

Furthermore, the public accounting systems shall be subject to internal control and independent audits.

Forecasts for fiscal planning

Member States shall base their fiscal planning on the most realistic macroeconomic and budgetary forecasts possible. In particular, these forecasts shall include a study of the main fiscal variables based on different assumptions relating to growth and interest rates.

Member States shall make public their macroeconomic and fiscal forecasts, as well as the methods and parameters they have used. They shall also identify the institution responsible for producing these forecasts.

Member States’ forecasts are then compared with the forecasts produced by the Commission. The latter is also required to publish the methods, hypotheses and parameters used. Any significant differences between the Member States’ and the Commission’s forecasts shall be described and explained.

Numerical fiscal rules

EU budgetary surveillance shall be based on the numerical fiscal rules specific to each Member State. The objective of these rules is to avoid excessive public deficit and excessive public debt.

The fiscal rules specific to each country include in particular:

  • the target definition and scope of the rules;
  • the effective compliance with the rules, based on reliable and independent analysis carried out by independent bodies or bodies endowed with functional autonomy vis-à-vis the fiscal authorities of the Member States;
  • the consequences in the event of non-compliance.

Medium-term budgetary frameworks

Member States shall establish a medium- term budgetary framework. This framework is defined as a set of national fiscal procedures extending the development of fiscal policy beyond the annual budgetary calendar. It is accompanied by the adoption of a fiscal planning horizon of at least 3 years. The budgetary framework consists of the following elements:

  • comprehensive and transparent multiannual budgetary objectives, for example in terms of the general government deficit of public debt;
  • projections of each major expenditure and revenue item of the general government;
  • a description of medium-term policies envisaged with an impact on general government finances;
  • an assessment of the effects the policies envisaged could have on the long-term sustainability of the public finances.

Context

The Stability and Growth Pact is a set of rules which establish economic and budgetary surveillance at European level. The aim is to ensure economic and financialstability in the EU.

Member States must therefore pursue sound budgetary policies in order to avoid excessive public deficits which could put the economic and financial stability of the EU in danger.

In 2011 the Stability and Growth Pact was subject to huge reform.. The new measures adopted constitute a significant step in ensuring budget discipline, promoting the stability of the European economy, and preventing a new crisis in the Union.

The Stability and Growth Pact henceforth brings together six legislative acts which entered into force on 13 December 2011:

  • Regulation No. 1173/2011 on the implementation of efficient budgetary surveillance in the euro area;
  • the Regulation (EU) No. 1174/2011 on enforcement measures to correct excessive macroeconomic imbalances in the euro area;
  • the Regulation (EU) No. 1175/2011 amending the surveillance procedures of budgetary positions;
  • the Regulation (EU) No. 1176/2011 on the prevention and correction of macroeconomic imbalances ;
  • the Regulation (EU) No. 1177/2011 amending the procedure concerning excessive deficits;
  • Directive No. 2011/85/EU on requirements for budgetary frameworks of the Member States.

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Directive 2011/85/UE

13.12.2011

OJ L 306 of 23.11.2011

European Training Foundation

European Training Foundation

Outline of the Community (European Union) legislation about European Training Foundation

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Enlargement > The stabilisation and association process: the western balkans

European Training Foundation (ETF)

Document or Iniciative

Regulation (EC) No 1339/2008 of the European Parliament and of the Council of 16 December 2008 establishing a European Training Foundation.

Summary

This regulation establishes the European Training Foundation (ETF), repealing Regulation (ECC) No 1360/90, which originally created it. The foundation operates within the European Union (EU) external relations policy sphere, aiming to promote the development of vocational education and training systems in the following partner countries:

  • the EU candidate countries (Croatia, Turkey and the Former Yugoslav Republic of Macedonia);
  • the potential candidate countries in the western Balkans (Albania, Bosnia-Herzegovina, Kosovo, Montenegro and Serbia);
  • the southern Mediterranean, eastern European and southern Caucasus partner countries (Algeria, Armenia, Azerbaijan, Belarus, Egypt, Georgia, Israel, Jordan, Lebanon, Libya, Moldova, Morocco, the Palestinian Authority, Russia, Syria, Tunisia and Ukraine);
  • other countries, as decided by the ETF governing board on the basis of specific criteria.

The foundation provides assistance to these countries in improving the skills and competences of their citizens. This consists of participating in the reform process to develop initial and continuing vocational education and training, as well as to facilitate access thereto. The ETF also assists in promoting mobility, cooperation between educational institutions and businesses, as well as exchanges of experience and information between Member States.

In promoting the development of vocational education and training systems in the partner countries, the foundation’s functions consist more specifically of:

  • providing information, policy analysis and advice on human capital development;
  • improving knowledge of labour market skills needs;
  • providing support in capacity building;
  • promoting exchanges of information and experience among donors as well as partner countries and the EU;
  • supporting the delivery of Community assistance and analysing the effectiveness thereof (if required by the Commission).

In pursuing its functions, the foundation is to collaborate with other relevant Community bodies, in particular with the European Centre for the Development of Vocational Training (Cedefop), as well as with representatives of European social partners and relevant international organisations where appropriate.

The ETF is a non-profit making foundation that has legal personality. It is based in Turin, Italy.

Structure

The ETF governing board consists of one representative from each Member State, three representatives of the Commission, three experts appointed by the European Parliament and three representatives of the partner countries appointed by the Commission. Only the Member State and Commission representatives have a voting right, one vote each for the former and one shared for the latter. One of the Commission representatives chairs the board, convening it at least once a year. The term of office of the board is five years, renewable once.

The governing board is responsible for drawing up the annual estimate of expenditure and revenue as well as for adopting the annual work programme, draft establishment plan, definitive budget, annual activity report, rules of procedure and financial rules. It has the power to appoint and dismiss the director, as well as to prolong his/her term of office.

The director is appointed from a list of candidates put forward by the Commission for a term of five years. The term may be extended once for a maximum of three years. The director is the legal representative of the foundation and responsible for its administrative management. S/he is also responsible for preparing and organising the work of the governing board as well as for implementing its decisions. In addition, the director is to implement the annual work programme and the budget of the foundation.

The finances of the ETF consist principally of a subsidy from the general budget of the EU and of payments received for services rendered. The final accounts of the foundation, the annual activity reports and the rules of procedure are to be made public.

Background

Since its adoption, Regulation (EEC) No 1360/90 that established the ETF has been amended on several occasions. In light of additional amendments and for reasons of clarity, the regulation was repealed in order to be replaced by Regulation (EC) No 1339/2008.

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 1339/2008

20.1.2009

OJ L 354 of 31.12.2008