| Author (Corporate) | Council of the European Union, European Parliament |
|---|---|
| Series Title | Official Journal of the European Union |
| Series Details | L 319, Pages 1-4 |
| Publication Date | 13/12/2022 |
| Content Type | Legislation, Policy-making |
Summary:Regulation (EU, Euratom) 2022/2434 - adopted by the co-legislators on 6 December 2022 - introducing amendments to Regulation (EU, Euratom) 2018/1046 as regards the establishment of a diversified funding strategy as a general borrowing method. Further information:Regulation (EU, Euratom) 2018/1046 laid out the rules for the establishment and the implementation of the general budget of the European Union (EU) and of the European Atomic Energy Community (EAEC) and the presentation and auditing of their accounts. Article 220 of the Regulation provides that the European Commission is empowered to borrow on behalf of the EU or Euratom for purpose of on-lending the corresponding amounts to the beneficiary Member States or third countries under the conditions applicable to the borrowings. The cash flows between the borrowed funds and the loans are matched one-to-one. The funding needs for Ukraine following the Russian aggression require the mobilisation and disbursement in a cost-effective, flexible and financially sound manner. It has been deemed essential that this funding is organised under a single funding method in order to allow different policy needs to be met concurrently. Therefore, this Regulation introduces amendments to Regulation (EU, Euratom) 2018/1046 to establish the diversified funding strategy, already implemented for borrowings under Decision (EU, Euratom) 2020/2053 as the baseline method for the implementation of borrowing operations. The diversified funding strategy is a financing method through which funding transactions are organised in a manner consistent with the limits of financial liability authorised in the basic acts in order to achieve the policy objectives. The implementation of a diversified funding strategy does not change the financial liabilities arising from the borrowing. It provides the Commission with more flexibility in how the EU mobilises resources through bond issuance. This Regulation allows the Commission to finance the assistance to Ukraine under the Macro-Financial Assistance Plus instrument. The draft law was adopted by the European Commission on 9 November 2022 alongside amendments to the MFF Regulation and a draft Regulation establishing the Macro-Financial Assistance Plus (MFA +) instrument. It was adopted at first reading by the European Parliament on 24 November, and by the Council of the European Union on 6 December. The co-legislators formally signed the Act on 6 December 2022. The Act was published in the Official Journal on 13 December 2022. |
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| Source Link | Link to Main Source http://data.europa.eu/eli/reg/2022/2434/oj |
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| Subject Categories | Economic and Financial Affairs |
| Subject Tags | Economic Governance | Situation, EU Budget |
| Keywords | EU External Action, Macro-Financial Assistance [MFA] |
| International Organisations | European Union [EU] |
