Financial Regulation and Rules of Application

The Financial Regulation (FR) is the main point of reference for the principles and procedures governing the establishment and implementation of the EU budget and the control of the European Communities’ finances.

From 1 January 2013, a new FR is applied, which is accompanied by new Rules of Application (RAP) and which replace the former Implementing Rules (IR). The RAP contain more detailed and technical rules, which are essential for the day to day implementation of the FR.

The revised Financial Regulation and its Rules of Application have addressed the major concerns expressed in the public consultation and have brought changes in terms of:

• simplification: cutting red tape, speeding up procedures, in particular the time-to-grant, and shifting the focus from paperwork to performance;
• accountability: ensuring enhanced sound financial management and the protection of the EU's financial interests;
• leverage: introducing financial mechanisms which will enable the mobilisation of third-party funds as leverage on EU funds.

A more detailed overview of the revised FR can be found in the MEMO/12/795 published on 29/10/2012 (EN).