Criteria for an extension of the adjustment period
Article 14
1. Where a Member State commits to a relevant set of reforms and investments in accordance with the criteria set out in paragraph 2, the adjustment period may be extended by up to three years. 2. The set of reforms and investment commitments underpinning an extension of the adjustment period shall fulfil, as a general rule, taken altogether, the following criteria: (a) it entails, based on credible and prudent assumptions, an improvement of the growth and resilience potential of the economy of the Member State concerned in a sustainable manner; (b) it supports fiscal sustainability, with a structural improvement of government finances over the medium term, such as reducing the government expenditure-to-GDP ratio or increasing the government revenue-to-GDP ratio; (c) it addresses the common priorities of the Union referred to in Article 13, point (c); (d) it addresses the relevant country-specific recommendations addressed to the Member State concerned, including, where applicable, recommendations issued under the macroeconomic imbalances procedure; (e) it ensures that the planned overall level of nationally financed public investment over the period covered by the national medium-term fiscal-structural plan is not lower than the medium-term level before that period, taking into account the scope and scale of the country-specific challenges. 3. Each of the reform and investment commitments underpinning an extension of the adjustment period shall be sufficiently detailed, front-loaded, time-bound and verifiable, and shall comply with the following criteria: (a) the description of the reform and investment commitments shall be clear and allow the Commission to assess them against the criteria set out in paragraph 2; (b) the reforms shall be implemented within the period covered by the national medium-term fiscal-structural plan; (c) significant progress in the implementation of the investments shall be achieved by the end of the adjustment period; (d) the description of the reforms and investments shall include indicators, where relevant, to allow the assessment of their implementation and monitoring. 4. The set of reform and investment commitments underpinning an extension of the adjustment period shall be consistent with commitments included in the approved recovery and resilience plan of the Member State concerned during the period of operation of the Recovery and Resilience Facility pursuant to Regulation (EU) 2021/241, and the Partnership Agreement agreed under the Multiannual Financial Framework with the Member State concerned.