### member states shall establish and implement a procedure for the independent examination and resolution of complaints concerning the selection or implementation of operations co - financed by the csf funds . member states shall report the results of such examinations to the commission upon request . ### member states shall ensure effective arrangements for the examination of complaints concerning the european structural and investment funds . the scope , rules and procedures concerning such arrangements shall be the responsibility of member states in accordance with their institutional and legal framework . member states shall upon request by the commission examine complaints submitted to the commission falling within the scope of their arrangements . member states shall inform the commission of the results of examinations upon request .


### territorial cohesion has been added to the goals of economic and social cohesion by the treaty , and it is necessary to address the role of cities , functional geographies and sub - regional areas facing specific geographical or demographic problems . to this end , to better mobilise potential at a local level , it is necessary to strengthen and facilitate community - led local development by laying down common rules and close coordination for all csf funds . responsibility for the implementation of local development strategies should be given to local action groups representing the interests of the community , as an essential principle . ### territorial cohesion has been added to the goals of economic and social cohesion by the treaty , and it is necessary to address the role of cities , functional geographies and sub - regional areas facing specific geographical or demographic problems , in particular mountain regions . to this end , to better mobilise potential at a local level , it is necessary to strengthen and facilitate community - led local development by laying down common rules and close coordination for all csf funds . responsibility for the implementation of local development strategies should be given to local action groups representing the interests of the community , as an essential principle .


### for each year from 2016 until and including 2022 , the member state shall submit the documents referred to in article 75 . ### by the deadline set out in article 59 of the financial regulation for each year from 2016 until and including 2024 , the certifying authority shall submit : the accounts referred to in article 128 paragraph 1 for the preceding accounting year ; the management declaration and the summary report referred to in article 114 ; the audit opinion and the control report referred to in article 116 and .


### establishing a closer link between cohesion policy and the economic governance of the union will ensure that the effectiveness of expenditure under the csf funds is underpinned by sound economic policies and that the csf funds can , if necessary , be redirected to addressing the economic problems a country is facing . this process has to be gradual , starting with amendments to the partnership contract and to the programmes in support of council recommendations to address macroeconomic imbalances and social and economic difficulties . where , despite the enhanced use of csf funds , a member state fails to take effective action in the context of the economic governance process , the commission should have the right to suspend all or part of the payments and commitments . decisions on suspensions should be proportionate and effective , taking into account the impact of the individual programmes for addressing the economic and social situation in the relevant member state and previous amendments to the partnership contract . when deciding on suspensions , the commission should also respect equality of treatment between member states , taking into account in particular the impact of the suspension on the economy of the member state concerned . the suspensions should be lifted and funds be made available again to the member state concerned as soon as the member state takes the necessary action . ### establishing a closer link between cohesion policy and the economic governance of the union will ensure that the effectiveness of expenditure under the csf funds is underpinned by sound economic policies and that the csf funds can , if necessary , be redirected to addressing the economic problems a country is facing . this process may involve amendments to the partnership contract and to the programmes in support of council recommendations to address macroeconomic imbalances and social and economic difficulties .


### annual implementation reports shall set out information on implementation of the programme and its priorities by reference to the financial data , common and programme - specific indicators and quantified target values , including changes in result indicators , and the milestones defined in the performance framework . the data transmitted shall relate to values for indicators for fully implemented operations and also for selected operations . they shall also set out actions taken to fulfil the ex - ante conditionalities and any issues which affect the performance of the programme , and the corrective measures taken . ### annual implementation reports shall set out information on implementation of the programme and its priorities by reference to the financial data , common and programme - specific indicators and quantified target values , including changes in result indicators , and the milestones defined in the performance framework . the data transmitted shall relate to values for indicators for fully implemented operations .


### annual implementation reports shall set out information on implementation of the programme and its priorities by reference to the financial data , common and programme - specific indicators and quantified target values , including changes in result indicators , and the milestones defined in the performance framework . the data transmitted shall relate to values for indicators for fully implemented operations and also for selected operations . they shall also set out actions taken to fulfil the ex ante conditionalities and any issues which affect the performance of the programme , and the corrective measures taken . ### annual implementation reports shall set out key information on implementation of the programme and its priorities by reference to the financial data , common and programme - specific indicators and quantified target values , including changes in the values of result indicators where appropriate , and beginning from the report submitted in 2017 the milestones defined in the performance framework . the data transmitted shall relate to values for indicators for fully implemented operations and also , where possible , having regard to the stage of implementation , for selected operations . they shall also set out a synthesis of the findings of all evaluations of the programme that have become available during the previous financial year , any issues which affect the performance of the programme , and the measures taken . the annual implementation report submitted in 2016 may also set out , where relevant , actions taken to fulfil ex - ante conditionalities .


### coherence and consistency with the union ' s economic governance member states shall give particular attention to prioritising growth - friendly expenditure , including spending on education , research , innovation and energy efficiency and expenditure to facilitate the access of smes to finance and to ensure environmental sustainability , the management of natural resources and climate action , and to ensuring the effectiveness of such spending . they shall also take account of maintaining or reinforcing the coverage and effectiveness of employment services and active labour market policies , with a focus on youth unemployment . 2 . in preparing their partnership contracts , member states shall programme the csf funds taking into account the most recent relevant country - specific recommendations issued by the council on the basis of article 121 and article 148 of the treaty on the functioning of the european union in accordance with their respective roles and obligations . member states shall also take into account relevant council recommendations based on the stability and growth pact and the economic adjustment programmes . each member state shall set out in the partnership contract , in accordance with article 14 of this regulation , how different union and national funding streams contribute to addressing the challenges identified by the relevant country - specific recommendations concerned and the objectives set out in their national reform programmes in close consultation with the responsible regional and local authorities . ### contribution of european structural and investment funds to the union’s strategy for smart sustainable and inclusive growth and coherence with the union ' s economic governance - 1 . to support effective targeting of smart , sustainable and inclusive growth in the partnership agreements and programmes this regulation identifies eleven thematic objectives set out in article 9 corresponding to the priorities of the europe 2020 strategy which shall receive support from the european structural and investment funds . in line with these thematic objectives , member states shall in order to ensure critical mass necessary to deliver growth and jobs , concentrate support in accordance with article 16 of this regulation and fund specific rules on thematic concentration and shall ensure the effectiveness of spending . they shall give particular attention to prioritising growth - friendly expenditure , including spending on education , research , innovation and energy efficiency and expenditure to facilitate the access of smes to finance , and to ensure environmental sustainability , and the management of natural resources and climate action as well as to modernise public administration . they shall also take account of maintaining or reinforcing the coverage and effectiveness of employment services and active labour market policies to fight unemployment , with a focus on youth and tackle the social consequences of the crisis and promote social inclusion . 2 . to ensure consistency with priorities established in the context of the european semester , in preparing their partnership agreements , member states shall plan the use of the european structural and investment funds taking into account the national reform programmes , where appropriate , and the most recent relevant country - specific recommendations and relevant council recommendations adopted in accordance with article 121 and article 148 of the treaty on the functioning of the european union in accordance with their respective roles and obligations . member states , where necessary , shall also take into account relevant council recommendations based on the stability and growth pact and the economic adjustment programmes . 2a . in order to determine the way in which the european structural and investment funds can most effectively contribute to the europe 2020 strategy , and to take account of the treaty objectives , including economic , social and territorial cohesion , member states shall select the thematic objectives for the planned use of the european structural and investment funds within the appropriate national , regional and local contexts .


### a citizen ' s summary of the contents of the annual and the final implementation reports shall be made public ### the annual and the final implementation reports , as well as a summary for citizens of their content shall be made public .


### in addition to common rules on financial management , additional provisions are necessary for the erdf , esf , cf and the emff . in particular , with a view to ensuring reasonable assurance for the commission prior to the annual clearance of accounts , applications for interim payments should be reimbursed at a rate of 90 % of the amount resulting from applying the co - financing rate for each priority as laid down in the decision adopting the operational programme to the eligible expenditure for the priority . the outstanding amounts due should be paid to the member states upon annual clearance of accounts , provided that reasonable assurance has been attained in regard to the eligibility of expenditure for the year covered by the clearance procedure . ### in addition to common rules on financial management , additional provisions are necessary for the erdf , esf , cf and the emff . in particular , with a view to ensuring reasonable assurance for the commission , applications for interim payments should be reimbursed at a rate of 90 % of the amount resulting from applying the co - financing rate for each priority axis as laid down in the decision adopting the operational programme to the eligible expenditure for the priority axis . the outstanding amounts due should be paid to the member states provided that reasonable assurance has been attained in regard to the eligibility of expenditure .


### an integrated approach to address the specific needs of geographical areas most affected by poverty or of target groups at highest risk of discrimination or exclusion , with special regard to marginalised communities , where appropriate , including the indicative financial allocation for the relevant csf funds ; ### arrangements for the partnership principle as referred in article 5 ; an indicative list of partners and a summary of the actions taken to involve those partners as referred to in article 5 and their role in the preparation of the partnership agreement and the progress report as defined in article 46 of this regulation .


### it is necessary to fix the limits of those resources for the ‘ investment for growth and jobs’ goal and to adopt objective criteria for their allocation to regions and member states . in order to encourage the necessary acceleration of development of infrastructure in transport and energy as well as information and communication technologies across the union , a connecting europe facility should be created . the allocation of the annual appropriations from the funds and the amounts transferred from the cohesion fund to the connecting europe facility to a member state should be limited to a ceiling that would be fixed taking into account the capacity of that particular member state to absorb these appropriations . in addition , in line with the headline target on poverty reduction , it is necessary to reorient the scheme for food support for the most deprived persons to promote social inclusion and the harmonious development of the union . a mechanism is envisaged which transfers resources to this instrument and ensures that these will be constituted from esf allocations through an implicit corresponding decrease of the minimum percentage of the structural funds to be allocated to the esf in each country . ### it is necessary to fix the limits of those resources for the ‘ investment for growth and jobs’ goal and to adopt objective criteria for their allocation to regions and member states . in order to encourage the necessary acceleration of development of infrastructure in transport and energy as well as information and communication technologies across the union , a connecting europe facility is created . support should be provided from the cohesion fund to transport infrastructure projects of european added value among the pre - indentified projects listed in annex 1 of regulation [ . . . ] / 2012 on establishing the connecting europe facility that will be carried out in each member state in accordance with article 84 of this regulation . the national allocations under the cohesion fund should be fully respected until 31 december 2016 . in addition , in line with the headline target on poverty reduction , it is necessary to reorient the scheme for food support for the most deprived persons to promote social inclusion and the harmonious development of the union . a mechanism is envisaged which transfers resources to this instrument and ensures that these will be constituted from esf allocations through an implicit corresponding decrease of the minimum percentage of the structural funds to be allocated to the esf in each country .


### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional development needs . ex ante conditionalities should be defined to ensure that the necessary framework conditions for the effective use of union support are in place . the fulfilment of those ex ante conditionalities should be assessed by the commission in the framework of its assessment of the partnership contract and programmes . in cases where there is a failure to fulfil an ex ante conditionality , the commission should have the power to suspend payments to the programme . ### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional development needs . ex ante conditionalities and criteria for their fulfilment should be defined to ensure that the necessary framework conditions for the effective use of union support are in place . such ex ante conditionalities should be relevant to the effectiveness of the contribution of the csf funds in the applicable cases of investment . the fulfilment of those ex ante conditionalities should be assessed by the commission in the framework of its assessment of the partnership contract and programmes , taking due account of the previous experience . in cases where , in spite of the commission’s recommendations , a member state fails significantly to fulfil an ex ante conditionality , the commission should be given the power to suspend payments to the programme . when deciding whether to suspend payments , the commission should take account of the economic and social effects of such a suspension . the suspensions should be lifted and funds be made available again as soon as the member state takes the necessary action .


### for the partnership contract and each programme respectively , a member state should organise a partnership with the representatives of competent regional , local , urban and other public authorities , economic and social partners , and bodies representing civil society , including environmental partners , non - governmental organisations , and bodies responsible for promoting equality and non - discrimination . the purpose of such a partnership is to respect the principle of multi - level governance , ensure the ownership of planned interventions by stakeholders and build on the experience and know - how of relevant actors . the commission should be empowered to adopt delegated acts providing for a code of conduct in order to ensure that partners are involved in the preparation , implementation , monitoring and evaluation of partnership contracts and programmes in a consistent manner . ### for the partnership contract and each programme respectively , a member state should , in accordance with their institutional , legal and financial framework , organise a partnership with the representatives of competent regional , local , urban and other public authorities , economic and social partners , and bodies representing civil society , including environmental partners , churches , non - governmental organisations , and bodies responsible for promoting equality and non - discrimination . the purpose of such a partnership is to respect the principle of multi - level governance , ensure the ownership of planned interventions by stakeholders and build on the experience and know - how of relevant actors . the commission should be empowered to adopt delegated acts providing for a code of conduct in order to ensure that partners are involved in the preparation , implementation , monitoring and evaluation of partnership contracts and programmes in a consistent manner .


### the co - financing rate at the level of each priority axis of operational programmes under the investment for growth and jobs goal shall be no higher than : 85 % for the cohesion fund ; 85 % for the less developed regions of member states whose average gdp per capita for the period 2007 to 2009 was below 85 % of the eu - 27 average during the same period and for the outermost regions ; 80% for the less developed regions of member states other than those referred to in point eligible for the transitional regime of the cohesion fund on 1 january 2014 ; 75% for the less developed regions of member states other than those referred to in points and , and for all regions whose gdp per capita for the 2007 - 2013 period was less than 75% of the average of the eu - 25 for the reference period but whose gdp per capita is above 75% of the gdp average of the eu - 27 ; 60 % for the transition regions other than those referred to in point ; 50 % for the more developed regions other than those referred to in point . the co - financing rate at the level of each priority axis of operational programmes under the european territorial cooperation goal shall be no higher than 75% . 4 . the co - financing rate of the additional allocation in accordance with article 84 shall be no higher than 50% . the same co - financing rate shall apply to the additional allocation under article 4 of regulation no [ … ] / 2012 [ etc regulation ] . ### the co - financing rate at the level of each priority axis of operational programmes under the investment for growth and jobs goal shall be no higher than : 85 % for the cohesion fund ; 85 % for the less developed regions of member states , for the outermost regions including additional funding and for member states consisting of one single nuts level 2 region eligible for the transitional regime of the cohesion fund on 1 january 2014 ; 80 % for the transition regions and for regions which were eligible for funding under transitional support pursuant to article 8 of regulation no 1083 / 2006 ; deleted deleted 50 % for the more developed regions other than those referred to in point . the co - financing rate at the level of each priority axis of operational programmes under the european territorial cooperation goal shall be no higher than 85% . 4 . the co - financing rate of the additional allocation for nuts level 2 regions fulfilling the criteria laid down in article 2 of protocol no 6 to the treaty of accession of austria , finland and sweden will be not higher than 50% . deleted


### title [ viii ] of the financial regulation shall apply to financial instruments referred to in paragraph 1 . contributions from the csf funds to financial instruments under paragraph 1 shall be placed in separate accounts and used , in accordance with the objectives of the respective csf funds , to support actions and final recipients consistent with the programme or programmes from which such contributions are made . ### contributions from the european structural and investment funds to financial instruments under paragraph 1 shall be placed in separate accounts and used , in accordance with the objectives of the respective european structural and investment funds , to support actions and final recipients consistent with the programme or programmes from which such contributions are made . contributions to such financial instruments are subject to the respect of the provisions of this regulation unless exceptions are expressly provided for . this is without prejudice to the rules governing the set up and functioning of the financial instruments under the financial regulation , unless they conflict with the rules of the cpr , in which case the latter prevail .


### the joint action plan shall contain : an analysis of the development needs and objectives justifying the joint action plan , taking into account the objectives of the operational programmes and , where applicable , the country - specific recommendations and the broad guidelines of the economic policies of the member states and of the union under article 121 and the council recommendations which the member states shall take into account in their employment policies under article 148 of the treaty ; ### the joint action plan shall contain : analysis of the development needs and objectives justifying the joint action plan , taking into account the objectives of the operational programmes and , where applicable , the relevant country - specific recommendations and the broad guidelines of the economic policies of the member states and of the union under article 121 and the relevant council recommendations which the member states shall take into account in their employment policies under article 148 of the treaty ;


### in 2014 : 2&#160 ; % of the amount of support from the funds and the emff for the entire programming period to the operational programme ; ### in 2014 : &#160 ; 3&#160 ; % of the amount of support from the funds for the entire programming period to the operational programme ;


### the initial pre - financing amount shall be paid in instalments as follows : in 2014 : 2&#160 ; % of the amount of support from the funds and the emff for the entire programming period to the operational programme ; in 2015 : 1 % of the amount of support from the funds and the emff for the entire programming period to the operational programme ; in 2016 : 1 % of the amount of support from the funds and the emff for the entire programming period to the operational programme . if an operational programme is adopted in 2015 or later , the earlier instalments shall be paid in the year of adoption . 2 . an annual pre - financing amount shall be paid before 1 july in the years 2016 to 2022 . in 2016 , it shall be 2 % of the amount of the support from the funds and from the emff for the whole programming period to the operational programme . in the years 2017 to 2022 , it shall be 2 , 5% of the amount of the support from the funds and from the emff for the whole programming period to the operational programme . ### the initial pre - financing amount shall be paid in instalments as follows : in 2014 : 2 . 5% of the amount of support from the funds for the entire programming period to the operational programme ; in 2015 : 2 % of the amount of support from the funds for the entire programming period to the operational programme ; in 2016 : 2 % of the amount of support from the funds for the entire programming period to the operational programme . if an operational programme is adopted in 2015 or later , the earlier instalments shall be paid in the year of adoption . 2 . an annual pre - financing amount shall be paid before 1 july in the years 2016 to 2023 . in 2016 , it shall be 2 % of the amount of the support from the funds for the whole programming period to the operational programme . in the years 2017 to 2023 , it shall be 2 , 5% of the amount of the support from the funds for the whole programming period to the operational programme .


### where the commission determines , within three months of the date of submission of the progress report that the information submitted is incomplete or unclear , it may request additional information from the member state . the member state shall provide to the commission the information requested within three months and , where appropriate , shall revise the progress report accordingly . ### where the commission determines , within two months of the date of submission of the progress report that the information submitted is incomplete or unclear in a manner which significantly affect the quality and reliability of the assessment concerned , it may without causing unjustified delays and providing reasons for the alleged lack of quality and reliability request additional information from the member state . the member state shall provide to the commission the information requested within three months and , where appropriate , shall revise the progress report accordingly .


### an analysis of the development needs and objectives justifying the joint action plan , taking into account the objectives of the operational programmes and , where applicable , the country - specific recommendations and the broad guidelines of the economic policies of the member states and of the union under article 121 and the council recommendations which the member states shall take into account in their employment policies under article 148 of the treaty ; ### an analysis of the development needs and objectives justifying the joint action plan , taking into account the objectives of the operational programmes and programmes for macro - regional development funds and , where applicable , the country - specific recommendations and the broad guidelines of the economic policies of the member states and of the union under article&#160 ; 121 and the council recommendations which the member states , or a group of member states that have established macro - regional development funds , shall take into account in their employment policies under article&#160 ; 148 of the treaty ;


### in accordance with the principles of shared management , member states should have the primary responsibility , through their management and control systems , for the implementation and control of the operations in programmes . in order to strengthen the effectiveness of the control over the selection and implementation of operations and the functioning of the management and control system , the functions of the managing authority should be specified . ### in accordance with the principles of shared management , member states , at the appropriate territorial level , in keeping with their institutional , legal and financial framework , and subject to compliance with this regulation and fund - specific rules , should have the primary responsibility , through their management and control systems , for the implementation and control of the operations in programmes . in order to strengthen the effectiveness of the control over the selection and implementation of operations and the functioning of the management and control system , the functions of the managing authority should be specified .


### implementation of financial instruments in implementing article 32 , managing authorities may provide a financial contribution to the following financial instruments : financial instruments set up at union level , managed directly or indirectly by the commission ; financial instruments set up at national , regional , transnational or cross - border level , managed by or under the responsibility of the managing authority . 2 . title [ viii ] of the financial regulation shall apply to financial instruments referred to in paragraph 1 . contributions from the csf funds to financial instruments under paragraph 1 shall be placed in separate accounts and used , in accordance with the objectives of the respective csf funds , to support actions and final recipients consistent with the programme or programmes from which such contributions are made . 3 . for financial instruments under paragraph 1 , the managing authority may provide a financial contribution to the following financial instruments : financial instruments complying with the standard terms and conditions laid down by the commission , by means of implementing acts in accordance with the examination procedure referred to in article 143 ; already existing or newly created financial instruments which are specifically designed to achieve the intended purpose and which respect the applicable union and national rules . the commission shall adopt delegated acts in accordance with article 142 laying down the specific rules regarding certain types of financial instruments referred to in point , as well as the products that may be delivered through such instruments . 4 . when supporting financial instruments referred to in paragraph 1 the managing authority may : invest in the capital of existing or newly created legal entities , including those financed from other csf funds , dedicated to implementing financial instruments consistent with the objectives of the respective csf funds , which will undertake implementations tasks ; the support to such investments shall be limited to the amounts necessary to implement new financial instruments consistent with the objectives of this regulation ; or entrust implementation tasks to : the european investment bank ; international financial institutions in which a member state is a shareholder , or financial institutions established in a member state aiming at the achievement of public interest under the control of a public authority , selected in accordance with applicable union and national rules ; a body governed by public or private law selected in accordance with applicable union and national rules . undertake implementation tasks directly , in the case of financial instruments consisting solely of loans or guarantees . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down rules concerning funding agreements , the role and responsibility of the entities to which the implementation tasks are entrusted , as well as management costs and fees . 5 . the entities referred to in paragraph 4 and , when implementing financial instruments through funds of funds , may further entrust part of the implementation to financial intermediaries provided that these entities ensure under their responsibility that the financial intermediaries satisfy the criteria laid down in [ articles 57 and 131 , and ] of the financial regulation1 . financial intermediaries shall be selected on the basis of open , transparent , proportionate and non - discriminatory procedures , avoiding conflicts of interests . 6 . the entities referred to in paragraph 4 to which implementation tasks have been entrusted shall open fiduciary accounts in their name and on behalf of the managing authority . the assets held on such fiduciary accounts shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity . 7 . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down detailed rules concerning specific requirements regarding the transfer and management of assets managed by the entities to which implementation tasks are entrusted , as well as conversion of assets between euro and national currencies . ### implementation of financial instruments in implementing article 32 , managing authorities may provide a financial contribution to the following financial instruments : financial instruments set up at union level , managed directly or indirectly by the commission ; financial instruments set up at national , regional , transnational or cross - border level , managed by or under the responsibility of the managing authority . 2 . contributions from the european structural and investment funds to financial instruments under paragraph 1 shall be placed in separate accounts and used , in accordance with the objectives of the respective european structural and investment funds , to support actions and final recipients consistent with the programme or programmes from which such contributions are made . contributions to such financial instruments are subject to the provisions of this regulation unless exceptions are expressly provided for . this is without prejudice to the rules governing the set up and functioning of the financial instruments under the financial regulation , unless they conflict with the rules of the cpr , in which case the latter prevail . 3 . for financial instruments under paragraph 1 , the managing authority may provide a financial contribution to the following financial instruments : financial instruments complying with the standard terms and conditions laid down by the commission , by means of implementing acts in accordance with the examination procedure referred to in article 143 ; already existing or newly created financial instruments which are specifically designed to achieve the specific objectives set out under the relevant priority . deleted 4 . when supporting financial instruments referred to in paragraph 1 the managing authority may : invest in the capital of existing or newly created legal entities , including those financed from other european structural and investment funds , dedicated to implementing financial instruments consistent with the objectives of the respective european structural and investment funds , which will undertake implementation tasks ; the support to such entities shall be limited to the amounts necessary to implement new investments in accordance with the provisions under article 32 and consistent with the objectives of this regulation ; or entrust implementation tasks to : the european investment bank ; international financial institutions in which a member state is a shareholder , or financial institutions established in a member state aiming at the achievement of public interest under the control of a public authority ; a body governed by public or private law . undertake implementation tasks directly , in the case of financial instruments consisting solely of loans or guarantees . in this case the managing authority is considered to be the beneficiary in the meaning of article 2 . when implementing the financial instrument , the bodies referred to in a ) b ) and c ) shall ensure compliance with applicable eu and national law , including rules covering european structural and investment funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism and tax fraud . they shall not be established and shall not maintain business relations with entities incorporated in territories , whose jurisdictions do not cooperate with the union in relation to the application of the internationally agreed tax standards and shall transpose such requirements in their contracts with the selected financial intermediaries . deleted 4 . 1 . a . where a financial instrument is implemented under paragraphs and , subject to the implementation structure of the financial instrument , the terms and conditions for contributions from programmes to financial instruments shall be set out in funding agreements in accordance with annex x at the following levels : where applicable , between the duly mandated representatives of the managing authority and the body that implements the fund of funds , and between the duly mandated representatives of the managing authority , or where applicable , the body that implements the fund of funds , and the body that implements the financial instrument . 4 . 1 . b . for financial instruments implemented under paragraph , the terms and conditions for contributions from programmes to financial instruments shall be set out in a strategy document in accordance with annex x to be examined by the monitoring committee . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down additional specific rules on the role , liabilities and responsibility of bodies implementing financial instruments , related selection criteria and products that may be delivered through financial instruments in accordance with the provisions under article 32 . the commission shall notify the delegated acts , adopted in accordance with article 142 , simultaneously to the european parliament and the council within four months of the adoption of this regulation . 5 . the bodies referred to in paragraph 4 and , when implementing funds of funds may further entrust part of the implementation to financial intermediaries provided that these entities ensure under their responsibility that the financial intermediaries satisfy the criteria laid down in article 140 , and of the financial regulation1 . financial intermediaries shall be selected on the basis of open , transparent , proportionate and non - discriminatory procedures , avoiding conflicts of interests . 6 . the bodies referred to in paragraph 4 to which implementation tasks have been entrusted shall open fiduciary accounts in their name and on behalf of the managing authority , or set up the financial instrument as a separate block of finance within a financial institution . in case of a separate block of finance , separate accounting shall distinguish programme resources invested in the financial instrument from the other resources available in the financial institution . the assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity . 6a . national public and private contributions , including where relevant in - kind contributions as referred to under article 32 , may be provided at the level of the fund of funds , at the level of the financial instrument or at the level of final recipients , in accordance with fund - specific rules . 7 . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down detailed rules concerning specific requirements regarding the transfer and management of assets managed by the entities to which implementation tasks are entrusted , as well as conversion of assets between euro and national currencies .


### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional development needs . ex ante conditionalities should be defined to ensure that the necessary framework conditions for the effective use of union support are in place . the fulfilment of those ex ante conditionalities should be assessed by the commission in the framework of its assessment of the partnership contract and programmes . in cases where there is a failure to fulfil an ex ante conditionality , the commission should have the power to suspend payments to the programme . ### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional development needs . ex ante conditionalities should be defined to ensure the necessary prior requirements that bear relation and have a direct effect on the effective and efficient use of union support are in place . the fulfilment of those ex ante conditionalities should be assessed by the commission in the framework of its assessment of the partnership contract and programmes . breach of a relevant ex ante conditionality may constitute grounds for the suspension of payments by the commission . in the event that payments are suspended , the commission should respect the principles of subsidiarity and proportionality as well as the powers at each administrative level involved .


### when deciding on the amount of a financial correction under paragraph 1 , the commission shall take account of the nature and gravity of the breach of applicable union or national law and its financial implications for the union budget . ### when deciding on the amount of a financial correction under paragraph 1 , the commission shall respect the principle of proportionality by taking account of the nature and gravity of the breach of applicable law and the financial implications for the union budget . the commission shall keep european parliament informed of decisions taken to apply financial corrections .


### preparation of the partnership contract each member state shall prepare a partnership contract for the period from 1&#160 ; january 2014 to 31&#160 ; december 2020 . 2 . the partnership contract shall be drawn up by member states in cooperation with the partners referred to in article 5 . the partnership contract shall be prepared in dialogue with the commission . 3 . the partnership contract shall cover all support from the csf funds in the member state concerned . 4 . each member state shall transmit its partnership contract to the commission within 3 months of the adoption of the common strategic framework . ### preparation of the partnership agreement each member state shall prepare a partnership agreement for the period from 1&#160 ; january 2014 to 31&#160 ; december 2020 . 2 . the partnership agreement shall be drawn up by member states in cooperation with the partners referred to in article 5 . the partnership agreement shall be prepared in dialogue with the commission . the member states shall draw up the partnership agreement following transparent procedures in relation to the public , in accordance with their institutional and legal framework . 3 . the partnership agreement shall cover all support from the european structural and investment funds in the member state concerned . 4 . each member state shall transmit its partnership agreement to the commission within 4 months of the entry into force of this regulation .


### information to be submitted to the commission the member state or the managing authority shall submit the following information on major projects to the commission as soon as preparatory work has been completed : information on the body to be responsible for implementation of the major project , and its capacity ; a description of and information on the investment and its location ; total cost and total eligible cost , taking account of the requirements set out in article 54 ; information on the feasibility studies carried out , including the options analysis , the results , and independent quality review ; a cost - benefit analysis , including an economic and a financial analysis , and a risk assessment ; an analysis of the environmental impact , taking into account climate change adaptation and mitigation needs , and disaster resilience ; the consistency with the relevant priority axes of the operational programme or programmes concerned , and its expected contribution to achieving the specific objectives of those priority axes ; the financing plan showing the total planned financial resources and the planned support from the funds , the eib , and all other sources of financing , together with physical and financial indicators for monitoring progress , taking account of the identified risks ; the timetable for implementing the major project and , where the implementation period is expected to be longer than the programming period , the phases for which support from the funds is requested during the 2014 to 2020 programming period . the commission shall provide indicative guidance on the methodology to be used in carrying out the cost - benefit analysis referred to in point above in accordance with the advisory procedure referred to in article 143 . the format for the information on major projects to be submitted shall be set up in accordance with the model adopted by the commission , by means of implementing acts . those implementing acts shall be adopted in accordance with the advisory procedure referred to in article 143 . ### information necessary for the approval of major projects before a major project is approved , the managing authority shall ensure that the following information is available : the body responsible for implementation of the major project , and its capacity ; a description of the investment and its location ; total cost and total eligible cost , taking account of the requirements set out in article 54 ; feasibility studies carried out , including the options analysis , and the results ; a cost - benefit analysis , including an economic and a financial analysis , and a risk assessment ; an analysis of the environmental impact , taking into account climate change adaptation and mitigation needs , and disaster resilience ; a description of the public consultation proposed and the involvement of partners as referred to in article 5 ; the consistency with the relevant priority axes of the operational programme or operational programmes concerned , and its expected contribution to achieving the specific objectives of those priority axes and the expected contribution to socio - economic development ; the financing plan showing the total planned financial resources and the planned support from the funds , the eib , and all other sources of financing , together with physical and financial indicators for monitoring progress , taking account of the identified risks ; the timetable for implementing the major project and , where the implementation period is expected to be longer than the programming period , the phases for which support from the funds is requested during the 2014 to 2020 programming period . the commission shall be empowered to adopt delegated acts in accordance with article 142 , laying down guidance on the methodology to be used in carrying out the cost - benefit analysis referred to in point of the first subparagraph . at the initiative of a member state , the information in article 91 to may be assessed by independent experts supported by technical assistance of the commission or , in agreement with the commission , by other independent experts . in other cases , the member state shall submit to the commission the information set out in article 91 to as soon as it is available . the commission shall adopt , by means of implementing acts , the uniform conditions on the methodology to be used in carrying out a quality review of a major project and shall establish the format for the submission of the information set out in article 91 to . those implementing acts shall be adopted in accordance with the advisory procedure referred to in article 143 .


### forms of support the csf funds shall be used to provide support in the form of grants , prizes , repayable assistance and financial instruments , or a combination thereof . in the case of repayable assistance , the support repaid to the body that provided it , or to another competent authority of the member state , shall be kept in a separate account and reused for the same purpose or in accordance with the objectives of the programme . ### forms of support the european structural and investment funds shall be used to provide support in the form of grants , prizes , repayable assistance and financial instruments , or a combination thereof . in the case of repayable assistance , the support repaid to the body that provided it , or to another competent authority of the member state , shall be kept in a separate account or separated with accounting codes and reused for the same purpose or in accordance with the objectives of the programme .


### allocation of performance reserve where the review of performance undertaken in 2017 reveals that a priority within a programme has not attained its milestones set for the year 2016 , the commission shall make recommendations to the member state concerned . 2 . on the basis of the review undertaken in 2019 , the commission shall adopt a decision , by means of implementing acts , to determine for each csf fund and member state the programmes and priorities which have attained their milestones . the member state shall propose the attribution of the performance reserve for the programmes and priorities set out in that commission decision . the commission shall approve the amendment of the programmes concerned in accordance with article 26 . where a member state fails to submit the information in accordance with article 46 and , the performance reserve for the programmes or the priorities concerned shall not be allocated . 3 . where there is evidence resulting from a performance review that a priority has failed to achieve the milestones set out in the performance framework , the commission may suspend all or part of an interim payment of a priority of a programme in accordance with the procedure laid down in fund - specific rules . 4 . where the commission , based on the examination of the final implementation report of the programme , establishes a serious failure to achieve the targets set out in the performance framework , it may apply financial corrections in respect of the priorities concerned in accordance with fund - specific rules . the commission shall be empowered to adopt delegated acts in accordance with article 142 to establish criteria and the methodology for determining the level of financial correction to be applied . 5 . paragraph 2 shall not apply to programmes under the european territorial cooperation goal and to title v of the emff regulation . ### application of the performance framework deleted 2 . on the basis of the review undertaken in 2019 , the commission shall adopt a decision , by means of implementing acts , to determine for each european structural and investment fund and member state the programmes and priorities which have attained their milestones . 3 . where there is evidence , resulting from a performance review , that there has been a serious failure with regards to a priority achieving the milestones relating only to financial and output indicators and key implementation steps set out in the performance framework and that that failure is due to clearly identified implementation weaknesses , which the commission has previously communicated pursuant to article 44 following close consultations with the member state concerned , and that member state has failed to take the necessary corrective action to address such weaknesses , the commission may , not earlier than&#160 ; four &#160 ; months of such communication , suspend all or part of an interim payment of a priority of a programme in accordance with the procedure laid down in fund - specific rules . the commission shall without delay lift the suspension of interim payments when the member state has taken the necessary corrective action . where the corrective action concerns the transfer of financial allocations to other programmes or priorities , which have attained their milestones , the commission shall approve , by means of an implementing act , the necessary amendment of the programmes concerned in accordance with article 26 . by way of derogation , in such case the commission shall decide on the amendment no later than two months of the submission of the member state request . 4 . where the commission , based on the examination of the final implementation report of the programme , establishes a serious failure to achieve the targets relating only to financial indicators , output indicators and key implementation steps set out in the performance framework due to clearly identified implementation weaknesses , which the commission has previously communicated pursuant to article 44 following close consultations with the member state concerned , and the member state has failed to take the necessary corrective action to address such weaknesses , the commission may notwithstanding article 77 apply financial corrections in respect of the priorities concerned in accordance with fund - specific rules . when applying financial corrections , the commission shall take into account - with due respect to the principle of proportionality - the absorption level , and external factors contributing to the failure . financial corrections shall not be applied where the failure to achieve targets is because of the impact of socio - economic or environmental factors , significant changes in the economic or environmental conditions in a member state or because of reasons of force majeure seriously affecting implementation of the priorities concerned . the commission shall be empowered to adopt delegated acts in accordance with article 142 to establish detailed rules on criteria for determining the level of financial correction to be applied . 5 . paragraph 2 shall not apply to programmes under the european territorial cooperation goal and to title v of the emff regulation .


### coherence and consistency with the union ' s economic governance member states shall give particular attention to prioritising growth - friendly expenditure , including spending on education , research , innovation and energy efficiency and expenditure to facilitate the access of smes to finance and to ensure environmental sustainability , the management of natural resources and climate action , and to ensuring the effectiveness of such spending . they shall also take account of maintaining or reinforcing the coverage and effectiveness of employment services and active labour market policies , with a focus on youth unemployment . 2 . in preparing their partnership contracts , member states shall programme the csf funds taking into account the most recent relevant country - specific recommendations issued by the council on the basis of article 121 and article 148 of the treaty on the functioning of the european union in accordance with their respective roles and obligations . member states shall also take into account relevant council recommendations based on the stability and growth pact and the economic adjustment programmes . each member state shall set out in the partnership contract , in accordance with article 14 of this regulation , how different union and national funding streams contribute to addressing the challenges identified by the relevant country - specific recommendations concerned and the objectives set out in their national reform programmes in close consultation with the responsible regional and local authorities . ### contribution of european structural and investment funds to the union’s strategy for smart sustainable and inclusive growth and coherence with the union ' s economic governance - 1 . to support effective targeting of smart , sustainable and inclusive growth in the partnership agreements and programmes this regulation identifies eleven thematic objectives set out in article 9 corresponding to the priorities of the europe 2020 strategy which shall receive support from the european structural and investment funds . in line with these thematic objectives , member states shall in order to ensure critical mass necessary to deliver growth and jobs , concentrate support in accordance with article 16 of this regulation and fund specific rules on thematic concentration and shall ensure the effectiveness of spending . they shall give particular attention to prioritising growth - friendly expenditure , including spending on education , research , innovation and energy efficiency and expenditure to facilitate the access of smes to finance , and to ensure environmental sustainability , and the management of natural resources and climate action as well as to modernise public administration . they shall also take account of maintaining or reinforcing the coverage and effectiveness of employment services and active labour market policies to fight unemployment , with a focus on youth and tackle the social consequences of the crisis and promote social inclusion . 2 . to ensure consistency with priorities established in the context of the european semester , in preparing their partnership agreements , member states shall plan the use of the european structural and investment funds taking into account the national reform programmes , where appropriate , and the most recent relevant country - specific recommendations and relevant council recommendations adopted in accordance with article 121 and article 148 of the treaty on the functioning of the european union in accordance with their respective roles and obligations . member states , where necessary , shall also take into account relevant council recommendations based on the stability and growth pact and the economic adjustment programmes . 2a . in order to determine the way in which the european structural and investment funds can most effectively contribute to the europe 2020 strategy , and to take account of the treaty objectives , including economic , social and territorial cohesion , member states shall select the thematic objectives for the planned use of the european structural and investment funds within the appropriate national , regional and local contexts .


### objective criteria should be fixed for designating eligible regions and areas for support from the funds . to this end , the identification of the regions and areas at union level should be based on the common system of classification of the regions established by regulation no 1059 / 2003 of the european parliament and the council of 26 may 2003 on the establishment of a common classification of territorial units for statistics 5 . ### objective criteria should be fixed for designating eligible regions and areas for support from the funds . to this end , the identification of the regions and areas at union level should be based on the common system of classification of the regions established by regulation no 1059 / 2003 of the european parliament and the council of 26 may 2003 on the establishment of a common classification of territorial units for statistics special attention should be paid to regions which suffer from serious and permanent natural or demographic handicaps , such as regions with very low population density and island , cross - border and mountain regions , taking into account the fact that these territorial characteristics do not necessarily correspond to the breakdown currently proposed by the nuts classification .


### it is necessary to fix the limits of those resources for the ‘ investment for growth and jobs’ goal and to adopt objective criteria for their allocation to regions and member states . in order to encourage the necessary acceleration of development of infrastructure in transport and energy as well as information and communication technologies across the union , a connecting europe facility should be created . the allocation of the annual appropriations from the funds and the amounts transferred from the cohesion fund to the connecting europe facility to a member state should be limited to a ceiling that would be fixed taking into account the capacity of that particular member state to absorb these appropriations . in addition , in line with the headline target on poverty reduction , it is necessary to reorient the scheme for food support for the most deprived persons to promote social inclusion and the harmonious development of the union . a mechanism is envisaged which transfers resources to this instrument and ensures that these will be constituted from esf allocations through an implicit corresponding decrease of the minimum percentage of the structural funds to be allocated to the esf in each country . ### it is necessary to fix the limits of those resources for the ‘ investment for growth and jobs’ goal and to adopt objective criteria for their allocation to regions and member states . in order to encourage the necessary acceleration of development of infrastructure in transport and energy as well as information and communication technologies across the union , a connecting europe facility is created . support should be provided from the cohesion fund to transport infrastructure projects of european added value among the pre - indentified projects listed in annex 1 of regulation [ . . . ] / 2012 on establishing the connecting europe facility that will be carried out in each member state in accordance with article 84 of this regulation . the national allocations under the cohesion fund should be fully respected until 31 december 2016 . in addition , in line with the headline target on poverty reduction , it is necessary to reorient the scheme for food support for the most deprived persons to promote social inclusion and the harmonious development of the union . a mechanism is envisaged which transfers resources to this instrument and ensures that these will be constituted from esf allocations through an implicit corresponding decrease of the minimum percentage of the structural funds to be allocated to the esf in each country .


### in order to promote the treaty objectives of economic , social and territorial cohesion , the ' investment for growth and jobs ' goal should support all regions . to provide balanced and gradual support and reflect the level of economic and social development , resources under that goal should be allocated from the erdf and the esf among the less developed regions , the transition regions and the more developed regions according to their gross domestic product per capita in relation to the eu average . in order to ensure the long - term sustainability of investment from the structural funds , regions whose gdp per capita for the 2007 - 2013 period was less than 75% of the average of the eu - 25 for the reference period but whose gdp per capita has grown to more than 75% of the eu - 27 average should receive at least two thirds of their 2007 - 2013 allocation . member states whose per capita gross national income is less than 90 % of that of the union average should benefit under the ' investment for growth and jobs ' goal from the cf . ### in order to promote the treaty objectives of economic , social and territorial cohesion , the ' investment for growth and jobs ' goal should support all regions . to provide balanced and gradual support and reflect the level of economic and social development , resources under that goal should be allocated from the erdf and the esf among the less developed regions , the transition regions and the more developed regions according to their gross domestic product per capita in relation to the eu average . in order to ensure the long - term sustainability of investment from the structural funds , all regions which received support for the 2007–2013 period under the ‘ convergence’ goal , including regions which received support in this period , including ‘ phasing out’ regions referred to in council regulation no 1083 / 2006 of 11 july 2006 laying down general provisions on the european development fund , the european social fund and the cohesion fund and repealing regulation no 1260 / 19991 , whose gdp per capita for the 2007–2013 period was less than 75 % of the average of the eu - 25 for the reference period but whose gdp per capita has grown to more than 75 % of the eu - 27 average should receive at least two thirds of their 2007–2013 allocation . member states whose per capita gross national income is less than 90 % of that of the union average should benefit under the ' investment for growth and jobs ' goal from the cf . _________________ 1 oj l 210 , 31 . 7 . 2006 , p . 25 .


### in order to promote the harmonious , balanced and sustainable development of the union , a common strategic framework shall provide clear strategic direction to the programming process and facilitate sectoral and territorial coordination of union intervention under the csf funds and with other relevant union policies and instruments in line with the objectives and targets of the union strategy for smart , sustainable and inclusive growth . ### in order to promote the harmonious , balanced and sustainable development of the union , a common strategic framework shall establish strategic guiding principles to facilitate the programming process and the sectoral and territorial coordination of union intervention under the european structural and investment funds and with other relevant union policies and instruments in line with the objectives and targets of the union strategy for smart , sustainable and inclusive growth taking into account the key territorial challenges for different types of territories . 1a . the strategic guiding principles as set out in the common strategic framework shall be established within the purpose and the scope of the assistance provided by each european structural and investment fund , as well as the rules governing the operation of each european structural and investment fund , as defined in this regulation and the fund - specific rules . it shall also not impose additional obligations to member states beyond those set out within the framework of the relevant sectoral union policies . 1b . the common strategic framework shall facilitate the preparation of the partnership agreement and programmes in accordance with the principles of proportionality and subsidiarity and taking into account the national and regional competences to decide on the specific and adequate policy and coordination measures .


### financial instruments the csf funds may be used to support financial instruments under a programme , including when organised through funds of funds , in order to contribute to the achievement of specific objectives set out under a priority , based on an ex ante assessment which has identified market failures or sub - optimal investment situations , and investment needs . financial instruments may be combined with grants , interest rate subsidies and guarantee fee subsidies . in this case , separate records must be maintained for each form of financing . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down detailed rules concerning the ex ante assessment of financial instruments , the combination of support provided to final recipients through grants , interest rate subsidies , guarantee fee subsidies and financial instruments , additional specific rules on eligibility of expenditure and rules specifying the types of activities which shall not be supported through financial instruments . ### financial instruments the european structural and investment funds may be used to support financial instruments under one or more programmes , including when organised through funds of funds , in order to contribute to the achievement of specific objectives set out under a priority . financial instruments shall be implemented to support investments which are expected to be financially viable and do not give rise to sufficient funding from market sources . when applying this title , the managing authority , the fund of funds , and the bodies implementing the financial instrument shall comply with applicable union and national law , in particular on state aid and public procurement . deleted


### each operational programme , except those where technical assistance is undertaken under a specific operational programme , shall include : a description of specific actions to take into account environmental protection requirements , resource efficiency , climate change mitigation and adaptation , disaster resilience and risk prevention and management , in the selection of operations ; a description of the specific actions to promote equal opportunities and prevent any discrimination based on sex , racial or ethnic origin , religion or belief , disability , age or sexual orientation during the preparation , design and implementation of the operational programme and in particular in relation to access to funding , taking account of the needs of the various target groups at risk of such discrimination and in particular the requirements of ensuring accessibility for disabled persons ; a description of its contribution to the promotion of equality between men and women and , where appropriate , the arrangements to ensure the integration of gender perspective at operational programme and operation level . member states shall submit an opinion of the national equality bodies on the measures set out in points and with the proposal for an operational programme under the investment for growth and jobs goal . ### the operational programme shall describe , taking into account its content and objectives , the integrated approach to territorial development , having regard to the partnership agreement , and showing how it contributes to the accomplishment of the programme objectives and expected results , specifying , where appropriate , the following : the approach to the use of community led local development instruments and the principles for identifying the areas where it will be implemented ; the indicative amount of the erdf support for integrated actions for sustainable urban development , to be implemented in accordance with the provisions under article 7 of regulation no [ erdf ] and the indicative allocation of esf support for integrated actions ; the approach to the use of the integrated territorial investment instrument other than in cases covered by , and their indicative financial allocation from each priority axis ; the arrangements for interregional and transnational actions , within the operational programmes , with beneficiaries located in at least one other member state ; where member states and regions participate in macro - regional strategies and sea - basin strategies , subject to the needs of the programme area as identified by the member state , the contribution of the planned interventions to such strategies .


### for each year from 2016 until and including 2022 , the member state shall submit the documents referred to in article 75 . ### deleted


### in order to supplement and amend certain non - essential elements of this regulation , the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission in respect of a code of conduct on the objectives and criteria to support the implementation of partnership , the adoption of the elements of the common strategic framework related to indicative actions of high european added value and corresponding principles for delivery , and priorities for cooperation , additional rules on the allocation of the performance reserve , the definition of the area and population covered by the local development strategies , detailed rules on financial instruments , the rules on certain types of financial instruments set up at national , regional , transnational or cross - border level , rules concerning funding agreements , transfer and management of assets , the arrangements for management and control , the rules on payment requests , and establishment of a system of capitalisation of annual instalments , the definition of the flat rate for revenue generating operations , the definition of the flat rate applied to indirect costs for grants based on existing methods and corresponding rates applicable in union policies , the responsibilities of member states concerning the procedure for reporting irregularities and recovery of sums unduly paid , the modalities of exchange of information of operations , the arrangements for the adequate audit trail , the conditions of national audits , the accreditation criteria for managing authorities and certifying authorities , the identification of commonly accepted data carriers , and the criteria for establishing the level of financial correction to be applied . the commission should also be empowered to amend , by means of delegated acts , annexes i and vi , both of which contain non - essential elements to this regulation , in order to address future adaptation needs . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . ### in order to supplement and amend certain non - essential elements of this regulation , the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission in respect of a code of conduct on the objectives and criteria to support the implementation of partnership , the methodology used to provide information on the support for climate change objectives , the criteria for the definition of the area and population covered by the local development strategies , detailed rules on financial instruments , the rules on certain types of financial instruments set up at national , regional , transnational or cross - border level , rules concerning the minimum provisions to be included in funding agreements and strategy documents , transfer and management of assets , management and control , the rules on payment requests , and establishment of a system of capitalisation of annual instalments , the definition of the flat rate and the method of calculation of current value of the net revenue for revenue generating operations , the definition of the flat rate applied to indirect costs for grants based on existing methods and corresponding rates applicable in union policies , methodology to be used in carrying out the cost - benefit analysis on major projects , decision on the extension of period applied in the case of operations implemented under ppp structures , the responsibilities of member states concerning the procedure for reporting irregularities and recovery of sums unduly paid , detailed rules for establishing a system to record and store data in computerised form on each operation and the modalities of exchange of information of operations , the criteria to assess compliance of authorities relating to the internal control environment , risk management , control activities , information and communication and monitoring systems , the adequate audit trail , the conditions of national audits , the identification of accepted data carriers , the rules concerning the use of data collected during audits , detailed rules concerning the cases that are to be regarded as serious deficiencies within the meaning of article 136 and the criteria for establishing the level of financial correction to be applied . the commission should also be empowered to amend annex v in order to address future adaptation needs . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level .


### when supporting financial instruments referred to in paragraph 1 the managing authority may : invest in the capital of existing or newly created legal entities , including those financed from other csf funds , dedicated to implementing financial instruments consistent with the objectives of the respective csf funds , which will undertake implementations tasks ; the support to such investments shall be limited to the amounts necessary to implement new financial instruments consistent with the objectives of this regulation ; or entrust implementation tasks to : the european investment bank ; international financial institutions in which a member state is a shareholder , or financial institutions established in a member state aiming at the achievement of public interest under the control of a public authority , selected in accordance with applicable union and national rules ; a body governed by public or private law selected in accordance with applicable union and national rules . undertake implementation tasks directly , in the case of financial instruments consisting solely of loans or guarantees . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down rules concerning funding agreements , the role and responsibility of the entities to which the implementation tasks are entrusted , as well as management costs and fees . ### when supporting financial instruments referred to in paragraph 1 the managing authority may : invest in the capital of existing or newly created legal entities , including those financed from other european structural and investment funds , dedicated to implementing financial instruments consistent with the objectives of the respective european structural and investment funds , which will undertake implementation tasks ; the support to such entities shall be limited to the amounts necessary to implement new investments and consistent with the objectives of this regulation ; or entrust implementation tasks to : the european investment bank ; international financial institutions in which a member state is a shareholder , or financial institutions established in a member state aiming at the achievement of public interest under the control of a public authority ; a body governed by public or private law . undertake implementation tasks directly , in the case of financial instruments consisting solely of loans or guarantees . in this case the managing authority is considered to be the beneficiary in the meaning of article 2 . when implementing the financial instrument , the bodies referred to in a ) b ) and c ) shall ensure compliance with applicable eu and national law , including rules covering european structural and investment funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism and tax fraud . they shall not be established and shall not maintain business relations with entities incorporated in territories , whose jurisdictions do not cooperate with the union in relation to the application of the internationally agreed tax standards and shall transpose such requirements in their contracts with the selected financial intermediaries . deleted


### the following criteria shall be used for the breakdown by member state : eligible population , regional prosperity , national prosperity and unemployment rate for less developed regions and transition regions ; eligible population , regional prosperity , unemployment rate , employment rate , educational level and population density for more developed regions ; population , national prosperity and surface area for the cohesion fund . ### the following criteria shall be used for the breakdown by member state : eligible population , regional prosperity taking into account , where appropriate , the specific situation of regions with severe and permanent natural or demographic handicaps , national prosperity , ageing of the population and the unemployment rate for less developed regions and transition regions ; eligible population , regional prosperity , unemployment rate , employment rate , educational level and population density , net adjusted income per inhabitant , school drop - out rate , intraregional disparities and the demographic vulnerability index for more developed regions ; population , national prosperity and surface area for the cohesion fund .


### the commission shall assess the consistency of programmes with this regulation , the fund - specific rules , their effective contribution to the thematic objectives and the union priorities specific to each csf fund , the common strategic framework , the partnership contract , the country - specific recommendations under article 121 of the treaty and the council recommendations adopted under 148 of the treaty , taking account of the ex ante evaluation . the assessment shall address , in particular , the adequacy of the programme strategy , the corresponding objectives , indicators , targets and the allocation of budgetary resources . ### the commission shall assess the consistency of programmes with this regulation and with the fund - specific rules , their effective contribution to the selected thematic objectives and to the union priorities specific to each european structural and investment fund , and also the partnership agreement , taking account of the relevant country - specific recommendations adopted in accordance with article 121 of the treaty on the functioning of the european union and relevant council recommendations adopted in accordance with article 148 of the treaty on the functioning of the european union as well as of the ex ante evaluation . the assessment shall address , in particular , the adequacy of the programme strategy , the corresponding objectives , indicators , targets and the allocation of budgetary resources .


### establishing a closer link between cohesion policy and the economic governance of the union will ensure that the effectiveness of expenditure under the csf funds is underpinned by sound economic policies and that the csf funds can , if necessary , be redirected to addressing the economic problems a country is facing . this process has to be gradual , starting with amendments to the partnership contract and to the programmes in support of council recommendations to address macroeconomic imbalances and social and economic difficulties . where , despite the enhanced use of csf funds , a member state fails to take effective action in the context of the economic governance process , the commission should have the right to suspend all or part of the payments and commitments . decisions on suspensions should be proportionate and effective , taking into account the impact of the individual programmes for addressing the economic and social situation in the relevant member state and previous amendments to the partnership contract . when deciding on suspensions , the commission should also respect equality of treatment between member states , taking into account in particular the impact of the suspension on the economy of the member state concerned . the suspensions should be lifted and funds be made available again to the member state concerned as soon as the member state takes the necessary action . ### establishing a closer link between cohesion policy and the economic governance of the union will ensure that the effectiveness of expenditure under the european structural and investment funds is underpinned by sound economic policies and that the european structural and investment funds can , if necessary , be redirected to addressing the economic problems a country is facing . conditionality provisions deriving from the growth and stability pact should apply to the cf in relation to the fulfilment of economic governance conditions . this process has to be gradual , starting with amendments to the partnership agreement and to the programmes in support of council recommendations to address macroeconomic imbalances and social and economic difficulties .


### in the context of its effort to increase economic , territorial and social cohesion , the union should , at all stages of implementation of the csf funds , aim at eliminating inequalities and promoting equality between men and women , as well as combating discrimination based on sex , racial or ethnic origin , religion or belief , disability , age or sexual orientation . ### in the context of its effort to increase economic , territorial and social cohesion , the union should , at all stages of implementation of the european structural and investment funds , aim to eliminate inequalities and ensure equality between women and men both through systematic integration of gender aspects in the programming and the implementation process , and through specific measures in accordance with the eu strategy for equality between women and men . during that implementation , the union should also aim to combat discrimination based on sex , racial or ethnic origin , religion or belief , disability , age or sexual orientation as set out in article 2 of the treaty on the european union , article 10 of the treaty on the functioning of the european union and article 21 of the charter of fundamental rights .


### information to be submitted to the commission the member state or the managing authority shall submit the following information on major projects to the commission as soon as preparatory work has been completed : information on the body to be responsible for implementation of the major project , and its capacity ; a description of and information on the investment and its location ; total cost and total eligible cost , taking account of the requirements set out in article 54 ; information on the feasibility studies carried out , including the options analysis , the results , and independent quality review ; a cost - benefit analysis , including an economic and a financial analysis , and a risk assessment ; an analysis of the environmental impact , taking into account climate change adaptation and mitigation needs , and disaster resilience ; the consistency with the relevant priority axes of the operational programme or programmes concerned , and its expected contribution to achieving the specific objectives of those priority axes ; the financing plan showing the total planned financial resources and the planned support from the funds , the eib , and all other sources of financing , together with physical and financial indicators for monitoring progress , taking account of the identified risks ; the timetable for implementing the major project and , where the implementation period is expected to be longer than the programming period , the phases for which support from the funds is requested during the 2014 to 2020 programming period . the commission shall provide indicative guidance on the methodology to be used in carrying out the cost - benefit analysis referred to in point above in accordance with the advisory procedure referred to in article 143 . the format for the information on major projects to be submitted shall be set up in accordance with the model adopted by the commission , by means of implementing acts . those implementing acts shall be adopted in accordance with the advisory procedure referred to in article 143 . 2 . major projects submitted to the commission for approval shall be contained in the list of major projects in an operational programme . the list shall be reviewed by the member state or the managing authority two years following the adoption of an operational programme and may at the request of the member state be adjusted in accordance with the procedure set out in article 26 , in particular to include major projects with an expected completion date by the end of 2022 . ### information necessary for the approval of major projects before a major project is approved , the managing authority shall ensure that the following information is available : the body responsible for implementation of the major project , and its capacity ; a description of the investment and its location ; total cost and total eligible cost , taking account of the requirements set out in article 54 ; feasibility studies carried out , including the options analysis , and the results ; a cost - benefit analysis , including an economic and a financial analysis , and a risk assessment ; an analysis of the environmental impact , taking into account climate change adaptation and mitigation needs , and disaster resilience ; the consistency with the relevant priority axes of the operational programme or operational programmes concerned , and its expected contribution to achieving the specific objectives of those priority axes and the expected contribution to socio - economic development ; the financing plan showing the total planned financial resources and the planned support from the funds , the eib , and all other sources of financing , together with physical and financial indicators for monitoring progress , taking account of the identified risks ; the timetable for implementing the major project and , where the implementation period is expected to be longer than the programming period , the phases for which support from the funds is requested during the 2014 to 2020 programming period . the commission shall adopt implementing acts establishing the methodology to be used based on recognised best practices , in carrying out the cost - benefit analysis referred to in point , in accordance with the advisory procedure referred to in article 143 . at the initiative of a member state , the information in article 91 to may be assessed by independent experts supported by technical assistance of the commission or , in agreement with the commission , by other independent experts . in other cases , the member state shall submit to the commission the information set out in article 91 to as soon as it is available . the commission shall be empowered to adopt delegated acts , in accordance with article 142 , laying down the methodology to be used in carrying out the quality review of a major project . the commission shall adopt implementing acts establishing the format for submission of the information set out in points to of the first subparagraph . those implementing acts shall be adopted in accordance with the advisory procedure referred to in article 143 . deleted


### in order to promote the treaty objectives of economic , social and territorial cohesion , the ' investment for growth and jobs ' goal should support all regions . to provide balanced and gradual support and reflect the level of economic and social development , resources under that goal should be allocated from the erdf and the esf among the less developed regions , the transition regions and the more developed regions according to their gross domestic product per capita in relation to the eu average . in order to ensure the long - term sustainability of investment from the structural funds , regions whose gdp per capita for the 2007 - 2013 period was less than 75% of the average of the eu - 25 for the reference period but whose gdp per capita has grown to more than 75% of the eu - 27 average should receive at least two thirds of their 2007 - 2013 allocation . member states whose per capita gross national income is less than 90 % of that of the union average should benefit under the ' investment for growth and jobs ' goal from the cf . ### in order to promote the treaty objectives of economic , social and territorial cohesion , the ' investment for growth and jobs ' goal should support all regions . to provide balanced and gradual support and reflect the level of economic and social development , resources under that goal should be allocated from the erdf and the esf among the less developed regions , the transition regions and the more developed regions according to their gross domestic product per capita in relation to the eu average . in order to ensure the long - term sustainability of investment from the structural funds , regions which received support in the period 2007–2013 under the ‘ convergence’ objective , including regions which received support in this period as ‘ phasing out’ regions in accordance with council regulation no 1083 / 2006 of 11 july 2006 laying down general provisions on the european development fund , the european social fund and the cohesion fund and repealing regulation no 1260 / 19991 , whose gdp per capita for the 2007–2013 period was less than 75 % of the average of the eu - 25 for the reference period but whose gdp per capita has grown to more than 75 % of the eu - 27 average should receive at least two thirds of their 2007–2013 allocation . member states whose per capita gross national income is less than 90 % of that of the union average should benefit under the ' investment for growth and jobs ' goal from the cf . _________________ 1 oj l 210 , 31 . 7 . 2006 , p . 25 .


### the entities referred to in paragraph 4 to which implementation tasks have been entrusted shall open fiduciary accounts in their name and on behalf of the managing authority . the assets held on such fiduciary accounts shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity . ### the bodies referred to in paragraph 4 to which implementation tasks have been entrusted shall open fiduciary accounts in their name and on behalf of the managing authority , or set up the financial instrument as a separate block of finance within a financial institution . in case of a separate block of finance , separate accounting shall distinguish programme resources invested in the financial instrument from the other resources available in the financial institution . the assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity .


### the commission shall be empowered to adopt delegated acts in accordance with article 142 establishing the criteria for establishing the level of financial correction to be applied . ### the commission shall be empowered , by means of delegated acts in accordance with article 142 , to lay down detailed rules concerning the criteria for determining the cases that are to be regarded as serious deficiencies within the meaning of this article and the criteria for establishing the level of financial correction to be applied .


### member states shall concentrate support , in accordance with the fund - specific rules , on actions bringing the greatest added value in relation to the union strategy for smart , sustainable and inclusive growth , addressing the challenges identified in the country - specific recommendations under article 121 of the treaty and the relevant council recommendations adopted under 148 of the treaty , and taking into account national and regional needs . ### member states shall concentrate support , in accordance with the fund - specific rules , on interventions bringing the greatest added value in relation to the union strategy for smart , sustainable and inclusive growth taking into account the key territorial challenges for different types of territories in line with the csf , the challenges identified in the national reform programme , where appropriate , and relevant country - specific recommendations under article 121 of the treaty on the functioning of the european union and the relevant council recommendations adopted under article 148 of the treaty on the functioning of the european union . provisions on thematic concentration under the fund - specific rules do not apply to technical assistance .


### the initial pre - financing amount shall be paid in instalments as follows : in 2014 : 2&#160 ; % of the amount of support from the funds and the emff for the entire programming period to the operational programme ; in 2015 : 1 % of the amount of support from the funds and the emff for the entire programming period to the operational programme ; in 2016 : 1 % of the amount of support from the funds and the emff for the entire programming period to the operational programme . if an operational programme is adopted in 2015 or later , the earlier instalments shall be paid in the year of adoption . 2 . an annual pre - financing amount shall be paid before 1 july in the years 2016 to 2022 . in 2016 , it shall be 2 % of the amount of the support from the funds and from the emff for the whole programming period to the operational programme . in the years 2017 to 2022 , it shall be 2 , 5% of the amount of the support from the funds and from the emff for the whole programming period to the operational programme . ### the initial pre - financing amount shall be paid in instalments as follows : in 2014 : 2 . 5% of the amount of support from the funds for the entire programming period to the operational programme ; in 2015 : 2 % of the amount of support from the funds for the entire programming period to the operational programme ; in 2016 : 2 % of the amount of support from the funds for the entire programming period to the operational programme . if an operational programme is adopted in 2015 or later , the earlier instalments shall be paid in the year of adoption . 2 . an annual pre - financing amount shall be paid before 1 july in the years 2016 to 2023 . in 2016 , it shall be 2 % of the amount of the support from the funds for the whole programming period to the operational programme . in the years 2017 to 2023 , it shall be 2 , 5% of the amount of the support from the funds for the whole programming period to the operational programme .