EIC participates in public consultation on EU Financial Regulation

On 01st October 2021, EIC submitted its reply to the public consultation on the EU Financial Regulation (EU, Euratom 2018/1046) which is the main point of reference for the principles and procedures governing the establishment, implementation and control of the EU budget.

The Financial Regulation lays down the rules for EU “Blending” operations under the so-called ‘Indirect Management’ mode, which authorises the European Commission to entrust the implementation of the EU budget to external partners, such as national organisations in EU Member States, international organisations or the European Investment Bank. EIC observes that the corresponding fiduciary responsibilities for external partners are not sufficient to ensure compliance with applicable Union law and agreed international and Union standards. Hence, EIC recommends that entrusted entities be obliged to comply with the full EU ‘acquis communautaire’ and with the EU’s policy standards and values.

EIC calls upon the European Commission to embed the concepts of Reciprocity and ‘Team Europe’ collaboration, including a link with European content or interest, in an updated EU Financial Regulation as well as the required policy coherence with the EU Procurement Directive and with the upcoming Instrument on Distortive Foreign Subsidies.