The purpose of the Interinstitutional Agreement, adopted in accordance with Article 295 of the Treaty of the Functioning of the European Union (TFEU), is to implement budgetary discipline and improve the functioning of the annual budgetary procedure and cooperation between the institutions on budgetary matters as well as to ensure sound financial management.

The Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management was published in OJ 2013/C 373 and covers the period 2014-2020.

The current agreement consists of three parts:

  • Part I deals with the complementary provisions related to the multiannual financial framework (MFF) and provisions on special instruments not included in the MFF.
  • Part II aims at improving the cooperation between the Parliament, the Council and the Commission in relation to budgetary matters. This will allow, for instance, more transparency at all stages of the budget negotiations and more information about how EU money is spent. These rules relate to:
    • interinstitutional cooperation in general
    • the establishment of the budget and to more specific matters (incorporation of financial provisions in legislative acts, expenditure in relation to specific policy areas such as fisheries agreements or Common Foreign  and Security Policy, etc.).
  • Part III contains provisions related to sound financial management of EU funds. This includes ensuring effective and integrated internal control of Union funds, financial programming, etc.

For more information please consult the long-term budget page on Europa:

EU budget for the future

Developments regarding the current IIA:

On 2 May 2018, the Commission adopted the proposal for the Multiannual Financial Framework Regulation (MFF) and a draft Interinstitutional Agreement (IIA) on budgetary discipline, on cooperation in budgetary matters and on sound financial management for the period 2021-2027.

Until these new legal acts are adopted by the European Parliament and the Council the current IIA will remain valid.