New rules aimed at equipping the EU budget with simpler financial rules while securing sound treatment of European taxpayers' money were agreed by the Council and the European Parliament. This financial regulation contains all the principles and rules for the implementation of the EU budget and is applicable to all areas of expenditure and all revenue.

The Council and the European Parliament reached an agreement on the new rules to simplify access to EU funds. The compromise text paves the adoption of around 70 proposals for sector specific legislative acts covering areas such as agriculture, cohesion policy, research, environment, transport, energy and external aid. The rules still have to be formally adopted by the European Parliament and subsequently by the Council in first reading. In February 2012, the European Commission gathered the 120 changes proposed to easier access to EU funds in one single document.

The main objectives of the revision of the financial regulation are to cut red tape, increase the leverage effect of limited EU funds and assure more accountability for the EU taxpayer. As an example of simplification, beneficiaries of EU funds will no longer be obliged to open a separate bank account to receive an upfront payment at the start of a project and to return to the Commission any interest yielded by this money while it stays on this account.

On the other hand, under the new rules, the Commission will be authorised to set up and manage multi donor EU trust funds for external actions, which would intervene in emergency, post-emergency crisis operations or for thematic actions. Also, the revised financial regulation facilitates also the pooling of EU resources with private funds via public and private partnerships, notably in the research field. Moreover, the new rules strengthen the accountability for European taxpayers' money.