Council Directive (EU) 2024/1265 of 29 April 2024 amending Directive 2011/85/EU on requirements for budgetary frameworks of the Member States

1 As concerns national systems of public accounting, Member States shall have in place public accounting systems that comprehensively and consistently cover all sub-sectors of general government and that contain the information needed to generate accrual data with a view to preparing data based on the European System of National and Regional Accounts. Those public accounting systems by the general government shall be subject to internal control and independent audits.

2 Member States shall ensure timely and regular public availability of fiscal data for all sub-sectors of general government as set out by Regulation (EU) No 549/2013. In particular, Member States shall publish for central government, state government, local government and social security funds, quarterly debt and, unless they have in place integrated, comprehensive and nationally harmonised accrual financial accounting systems, deficit data separately, before the end of the following quarter or after publication of the relevant data by the Commission (Eurostat).

3 The Commission (Eurostat) shall publish the quarterly government finance statistics data in accordance with tables 25, 27 and 28 of Annex B to Regulation (EU) No 549/2013, every three months.’;

Each Member State shall establish its specific numerical fiscal rules to effectively promote compliance with its obligations deriving from the TFEU in the area of budgetary policy over a multiannual period for the general government as a whole. Such rules shall promote in particular: (a) compliance with the reference values and provisions on deficit and debt set out in Article 1 of Protocol (No 12) on the excessive deficit procedure annexed to the TEU and to the TFEU; (b) the adoption of a medium-term fiscal planning horizon, consistent with Regulation (EU) 2024/1263 of the European Parliament and of the Council .

The annual budget legislation of the Member States shall be consistent with the country-specific numerical fiscal rules in force.’;

1 Member States shall ensure that independent fiscal institutions are established by national laws, regulations or binding administrative provisions.

2 Member States may establish more than one independent fiscal institution.

3 Independent fiscal institutions shall be composed of members nominated and appointed on the basis of their experience and competence in public finances, macroeconomics or budgetary management, and by means of transparent procedures.

4 Independent fiscal institutions shall: (a) not take instructions from the budgetary authorities of the Member State concerned or from any other public or private body; (b) have the capacity to communicate publicly about their assessments and opinions in a timely manner; (c) have adequate and stable resources to carry out their tasks in an effective manner, including any type of analysis within their tasks; (d) have adequate and timely access to the information needed to fulfil their tasks; (e) be subject to regular external evaluations by independent evaluators.

5 Without prejudice to the tasks and functions attributed in accordance with Regulation (EU) No 473/2013 for Member States whose currency is the euro, all Member States shall ensure that the following tasks are undertaken by one of the independent fiscal institutions: (a) producing, assessing or endorsing annual and multiannual macroeconomic forecasts; (b) monitoring compliance with country-specific numerical fiscal rules unless performed by other bodies in accordance with Article 6; (c) undertaking tasks in accordance with Articles 11, 15(3) and 23 of Regulation (EU) 2024/1263 and Article 3(5) of Council Regulation (EC) No 1467/97 ; (d) assessing the consistency, coherence and effectiveness of the national budgetary framework; (e) upon invitation, participate in regular hearings and discussions at the national Parliament.

6 Independent fiscal institutions shall issue assessments in the context of the tasks referred to in point (a), (b), (c) or (d) of paragraph 5 of this Article without prejudice to the tasks and functions attributed in accordance with Regulation (EU) No 473/2013. Member States shall comply with those assessments or shall explain why they are not following them. That explanation shall be public and be presented within two months from the date of issuance of such assessments.

Annual budget legislation shall be consistent with the national budgetary objectives over the medium term as referred to in point (e) of the second paragraph of Article 2. Any departure shall be duly explained.

This Directive shall not prevent a Member State, in the case of a newly appointed government, from updating its medium-term budgetary plan to reflect its new policy priorities. In such case, the Member State shall indicate the differences between the previous and the new medium-term budgetary plan.’;

Member States shall ensure that any measures taken in compliance with Chapters II, III and IV are consistent across all sub-sectors of general government and comprehensively cover those sub-sectors. To that effect, Member States shall, in particular, have consistent accounting rules and procedures in place for the general government, and shall ensure the integrity of their underlying data collection and processing systems.’;

1 Within the framework of the annual and multiannual budgetary processes, Member States shall publish information on bodies and funds that do not form part of the regular budgets but are part of the general government, including sub-sectors of general government. Member States shall also publish amounts corresponding to the combined impact on general government balances and debts of those bodies and funds.

2 Member States shall publish detailed information on the impact of tax expenditure on revenues.

3 For all sub-sectors of general government, Member States shall publish relevant information on contingent liabilities with potentially large impact on public budgets, including government guarantees, non-performing loans, and liabilities stemming from the operation of public corporations, including the extent thereof. Member States shall also publish information on disaster and climate-related contingent liabilities to the extent possible. Published information shall, to the extent possible, take into account information on fiscal costs incurred due to disasters and climate-related shocks. Member States shall publish information on the participation of general government in the capital of private and public corporations in respect of economically significant amounts.’;

1 By 31 December 2025 and every five years thereafter, the Commission shall report on the state of play of: (a) public accounting by the general government in the Union, taking into account the progress made since its 2013 assessment of the suitability of the International Public Sector Accounting Standards for the Member States; (b) the capacity and tasks of independent fiscal institutions in the Union, taking into account the progress made since the entry into force of this Directive, building on the findings of the Commission’s Fiscal Governance Database and consultations with relevant stakeholders, with a view to explore minimum standards.

2 By 31 December 2030, and every five years thereafter, the Commission shall publish a review of the effectiveness of this Directive.’.

1 Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 31 December 2025.

2 When Member States adopt those laws, regulations and administrative provisions, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made.

3 Member States are encouraged to draw up, for themselves and in the interests of the Union, their own correlation tables which will, insofar as possible, illustrate the correlation between this Directive and the transposition measures, and to make them public.

4 Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive.

5 The Commission shall prepare an interim progress report on the implementation of the main provisions of this Directive on the basis of relevant information from Member States, which shall be submitted to the European Parliament and to the Council by 30 June 2025.

This Directive shall enter into force on the day of its publication in the Official Journey of the European Union.

This Directive is addressed to the Member States.