CHAPTER IGENERAL PROVISIONS
Article 1Subject matter and scope
1.
This Regulation sets out provisions for enhanced monitoring of budgetary policies in the euro area and for ensuring that national budgets are consistent with the economic policy guidance issued in the context of the SGP and the European Semester for economic policy coordination, by:
(a)
complementing the European Semester, as established in Article 2-a of Regulation (EC) No 1466/97, with a common budgetary timeline;
(b)
complementing the procedure for the prevention and correction of excessive macroeconomic imbalances, as established by Regulation (EU) No 1176/2011;
(c)
complementing the multilateral surveillance system of budgetary policies, as established by Regulation (EC) No 1466/97, with additional monitoring requirements in order to ensure that Union policy recommendations in the budgetary area are appropriately integrated in the national budgetary preparations;
(d)
complementing the procedure for correcting a Member State's excessive deficit, as established by Article 126 TFEU and by Regulation (EC) No 1467/97, with closer monitoring of the budgetary policies of Member States subject to an excessive deficit procedure in order to secure a timely and lasting correction of an excessive deficit;
(e)
guaranteeing the consistency between budgetary policies and measures and reforms taken in the context of the procedure for prevention and correction of excessive macroeconomic imbalances as established by Regulation (EU) No 1176/2011 and, where appropriate, in the context of an economic partnership programme as referred to in Article 9.
2.
The application of this Regulation shall be in full compliance with Article 152 TFEU and the recommendations issued under this Regulation shall respect national practice and institutions for wage formation. In accordance with Article 28 of the Charter of Fundamental Rights of the European Union, this Regulation shall not affect the right to negotiate, conclude or enforce collective agreements or to take collective action in accordance with national law and practice.
3.
This Regulation shall apply to Member States whose currency is the euro.
Article 2Definitions
1.
For the purposes of this Regulation, the following definitions shall apply:
(a)
‘independent bodies’ means bodies that are structurally independent or bodies endowed with functional autonomy vis-à-vis the budgetary authorities of the Member State, and which are underpinned by national legal provisions ensuring a high degree of functional autonomy and accountability, including:
- (i)
a statutory regime grounded in national laws, regulations or binding administrative provisions;
- (ii)
not taking instructions from the budgetary authorities of the Member State concerned or from any other public or private body;
- (iii)
the capacity to communicate publicly in a timely manner;
- (iv)
procedures for nominating members on the basis of their experience and competence;
- (v)
adequate resources and appropriate access to information to carry out their mandate;
(b)
‘independent macroeconomic forecasts’ means macroeconomic forecasts produced or endorsed by independent bodies;
(c)
‘medium-term budgetary framework’ means medium-term budgetary framework as described in point (e) of Article 2 of Directive 2011/85/EU;
(d)
‘stability programme’ means stability programme as described in Article 3 of Regulation (EC) No 1466/97.
In order to ensure consistency across the independent macroeconomic forecasts referred to in point (b) of the first subparagraph, the Member States and the Commission shall, at least annually, engage in a technical dialogue concerning the assumptions underpinning the preparation of macroeconomic and budgetary forecasts in accordance with Article 4(5) of Directive 2011/85/EU.
2.
3.
The application of this Regulation is without prejudice to Article 9 TFEU.