The current agreement consists of three parts:
Budgetary discipline under the Interinstitutional agreement covers all expenditure. It is binding on all the institutions for as long as the Agreement is in force.
These agreements have no legal basis in the Treaty. However, their legal significance are considered more than only a simple political commitment. They have been concluded by institutions which can enter into legal obligations under the powers conferred on them by the Treaties. The agreements are therefore perfectly consistent with the provisions of the Treaties.
With the entry into force of the Lisbon Treaty changes are envisaged for the financial framework as well as for the current IIA.
On 3 March 2010, the Commission adopted the proposal for the Multiannual Financial Framework Regulation and a draft Interinstitutional agreement on budgetary discipline, which should replace the IIA on budgetary discipline and sound financial management. Until these new legal acts are adopted by the European Parliament and the Council the current IIA will remain valid.
The transposition of the provisions of the current IIA to relevant successive legal instruments is based on the following logic:
The remaining provisions – mainly issues related to pure inter-institutional cooperation adjusted to the requirements of the Treaty - will be included in a new IIA. Proposals have been made by the Commission:
Proposals for a Council Regulation laying down the multiannual financial framework for the years 2007-2013 and proposal for an Interinstitutional Agreement between the European Parliament, the Council and the Commission on cooperation in budgetary matters