### (15) the territorial just transition plans should identify the territories most negatively affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy , notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities. those territories should be precisely defined and correspond to nuts level 3 regions or should be parts thereof. the plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the green deal. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans should be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission. ### (15) the territorial just transition plans should identify the territories most negatively affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy , notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities , whilst maintaining and expanding employment opportunities in the affected territories in order to avoid social exclusion. those territories should be precisely defined and correspond to nuts level 3 regions or should be parts thereof. the plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the green deal. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans should be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission.


### (15) the territorial just transition plans should identify the territories most negatively affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy , notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities. those territories should be precisely defined and correspond to nuts level 3 regions or should be parts thereof. the plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the green deal. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans should be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission. ### (15) the territorial just transition plans should identify the territories most negatively affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy , notably as regards the conversion or closure of facilities involving solid fossil fuel production or other greenhouse gas intensive activities while developing new job opportunities to avoid social exclusion in the affected territories. those territories should be precisely defined and correspond to nuts level 2 or 3 regions or should be parts thereof. the plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the green deal while at the same time safeguarding the employment levels. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans could be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission.


### (15) the territorial just transition plans should identify the territories most negatively affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy , notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities. those territories should be precisely defined and correspond to nuts level 3 regions or should be parts thereof. the plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the green deal. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans should be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission. ### (15) the territorial just transition plans should identify the territories most negatively affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy , notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities whilst maintaining and expanding employment opportunities in the affected territories in order to sustain inclusive growth. those territories should be precisely defined and correspond to nuts level 3 regions or should be parts thereof. the plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the green deal. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans should be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission.


### (15) the territorial just transition plans should identify the territories most negatively affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy , notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities. those territories should be precisely defined and correspond to nuts level 3 regions or should be parts thereof. the plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities that are also consistent with the transition to climate-neutrality and the objectives of the green deal. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans should be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission. ### (15) the territorial just transition plans should identify the territories most negatively affected , where jtf support should be concentrated and describe specific actions to be undertaken to reach a climate-neutral economy , notably as regards the conversion or closure of facilities involving fossil fuel production or other greenhouse gas intensive activities. those territories should be precisely defined and correspond to nuts level 3 regions or should be parts thereof. the plans should detail the challenges and needs of those territories and identify the type of operations needed in a manner that ensures the coherent development of climate-resilient economic activities as well as plans to reskill workers and facilitate their transition to other types of employment , that are also consistent with the transition to climate-neutrality and the objectives of the green deal. only investments in accordance with the transition plans should receive financial support from the jtf. the territorial just transition plans should be part of the programmes (supported by the erdf , the esf+ , the cohesion fund or the jtf , as the case may be) which are approved by the commission.


### (19) the objectives of this regulation , namely to support territories facing economic and social transformation in their transition to a climate-neutral economy , cannot be sufficiently achieved by the member states alone. the main reasons in this regard are , on the one hand , the disparities between the levels of development of the various territories and the backwardness of the least favoured territories , as well as the limit on the financial resources of the member states and territories and , on the other hand , the need for a coherent implementation framework covering several union funds under shared management. since those objectives can better be achieved at union level , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 teu. in accordance with the principle of proportionality , as set out in that article , this regulation does not go beyond what is necessary in order to achieve those objectives , ### (19) the objectives of this regulation , namely to support territories facing economic and social transformation in their transition to a climate-neutral economy , should take into account the effects of covid-19 pandemic in the entire union. these objectives cannot be sufficiently achieved by the member states alone. the main reasons in this regard are , on the one hand , the disparities between the levels of development of the various territories and the backwardness of the least favoured territories , as well as the limit on the financial resources of the member states and territories and , on the other hand , the need for a coherent implementation framework covering several union funds under shared management. since those objectives can better be achieved at union level , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 teu. in accordance with the principle of proportionality , as set out in that article , this regulation does not go beyond what is necessary in order to achieve those objectives ,


### 1. this regulation establishes the just transition fund (‘jtf’) to provide support to territories facing serious socio-economic challenges deriving from the transition process towards a climate-neutral economy of the union by 2050. ### 1. this regulation establishes the just transition fund (‘jtf’) to provide support to territories facing serious socio-economic challenges deriving from the transition process towards a climate-neutral economy of the union by 2050. the just transition fund shall support establishing the long-term competitiveness of these regions.


### 1. this regulation establishes the just transition fund (‘jtf’) to provide support to territories facing serious socio-economic challenges deriving from the transition process towards a climate-neutral economy of the union by 2050. ### 1. this regulation establishes the just transition fund (‘jtf’) to provide support to territories facing serious socio-economic , energy security and energy affordability challenges deriving from the energy transition process towards a just climate-neutral economy of the union by 2050.


### 1. this regulation establishes the just transition fund (‘jtf’) to provide support to territories facing serious socio-economic challenges deriving from the transition process towards a climate-neutral economy of the union by 2050. ### 1. this regulation establishes the just transition fund (‘jtf’) to provide support to territories and citizens facing serious socio-economic and environmental-related challenges deriving from the transition process towards a climate-neutral economy of the union by 2050.


### the resources for the jtf under the investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be eur 7.5 billion in 2018 prices , which may be increased , as the case may be , by additional resources allocated in the union budget , and by other resources in accordance with the applicable basic act. ### the resources for the jtf under the investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be eur 17.88 billion in 2018 prices (“principal amount”) , and shall not be transferred from the allocations of the funds covered by regulation (eu) .../... [new cpr]. the principal amount may be increased , as the case may be , by additional resources allocated in the union budget , and by other resources in accordance with the applicable basic act.


### the resources for the jtf under the investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be eur 7.5 billion in 2018 prices , which may be increased , as the case may be , by additional resources allocated in the union budget , and by other resources in accordance with the applicable basic act. ### the resources for the jtf under the investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be eur 7.5 billion in 2018 prices , which will be increased , as the case will be , by additional resources allocated in the union budget , and by other resources in accordance with the applicable basic act.


### the resources for the jtf under the investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be eur 7.5 billion in 2018 prices , which may be increased , as the case may be , by additional resources allocated in the union budget , and by other resources in accordance with the applicable basic act. ### the resources for the jtf under the investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be eur 15 billion in 2018 prices , which may be increased , as the case may be , by additional resources allocated in the union budget , and by other resources in accordance with the applicable basic act.


### the resources for the jtf under the investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be eur 7.5 billion in 2018 prices , which may be increased , as the case may be , by additional resources allocated in the union budget , and by other resources in accordance with the applicable basic act. ### the resources for the jtf under the investment for jobs and growth goal available for budgetary commitment for the period 2021-2027 shall be eur 18.5 billion in 2018 prices , which may be increased , as the case may be , by additional resources allocated in the union budget , and by other resources in accordance with the applicable basic act.


### for the purposes of programming and subsequent inclusion in the union budget , the amount referred to in the first subparagraph shall be indexed at 2% per year. ### for the purposes of programming and subsequent inclusion in the union budget , the amount referred to in the first subparagraph shall be indexed at least with 2% per year.


### 3. the commission shall adopt a decision by means of an implementing act setting out the annual breakdown of resources , including any additional resources referred to in paragraph 2 , by member state in accordance with the methodology set out in annex i. ### 3. the commission shall adopt a decision by means of an implementing act setting out the resources for the 2021-2027 period , including any additional resources referred to in paragraph 2 , by member state in accordance with the methodology set out in annex i and the annual breakdown of resources.


### 4. by way of derogation from article [21a] of regulation (eu) [new cpr] , any additional resources referred to in paragraph 2 , allocated to the jtf in the union budget or provided by other resources shall not require complementary support from the erdf or the esf+. ### 4. by way of derogation from article [21(1)] of regulation (eu) [new cpr] , any additional resources referred to in paragraph 2 , allocated to the jtf in the union budget or provided by other resources shall not require complementary support from the erdf or the esf+.


### in accordance with paragraph 1 , the jtf shall exclusively support the following activities: ### in accordance with paragraph 1 , the jtf shall support , at least the following activities:


### productive investments in smes , including start-ups , leading to economic diversification and reconversion; ### productive investments in existing companies , including smes and start-ups , leading to economic diversification and reconversion;


### productive investments in smes , including start-ups , leading to economic diversification and reconversion; ### investments in smes , including start-ups , leading to economic diversification and reconversion;


### investments in the creation of new firms , including through business incubators and consulting services; ### investments in diversification/expansion of already established companies and the creation of new firms , including through business incubators and consulting services;


### investments in the deployment of technology and infrastructures for affordable clean energy , in greenhouse gas emission reduction , energy efficiency and renewable energy; ### investments in the deployment of technology and infrastructures for affordable clean energy , in greenhouse gas emission reduction , including the deployment of environmentally-friendly means of transportation , and energy efficiency;


### investments in the deployment of technology and infrastructures for affordable clean energy , in greenhouse gas emission reduction , energy efficiency and renewable energy; ### investments in the deployment of technology and infrastructures for affordable clean energy , in greenhouse gas emission reduction , energy efficiency and carbon-free energy;


### investments in digitalisation and digital connectivity; ### investments in digitalisation , artificial intelligence and digital connectivity;


### investments in regeneration and decontamination of sites , land restoration and repurposing projects; ### investments in green infrastructure , reducing pollution , regeneration and decontamination of sites , land restoration and repurposing projects;


### investments in enhancing the circular economy , including through waste prevention , reduction , resource efficiency , reuse , repair and recycling; ### investments in enhancing the circular economy , including through waste of all kinds , prevention , reduction , resource efficiency , reuse , repair and recycling;


### upskilling and reskilling of workers; ### investments in programmes for upskilling and reskilling of workers;


### active inclusion of jobseekers; ### active and full inclusion of jobseekers;


### the decommissioning or the construction of nuclear power stations; ### deleted


### undertakings in difficulty , as defined in article 2(18) of commission regulation (eu) no 651/201416 ; ### deleted


### undertakings in difficulty , as defined in article 2(18) of commission regulation (eu) no 651/201416 ; ### undertakings in difficulty , as defined in article 2(18) of commission regulation (eu) no 651/201416 , except for those that could get support from jtf for green investments , new technology and infrastructures which could contribute to gas emission reduction , energy efficiency and/or production of energy from renewable sources;


### investment related to the production , processing , distribution , storage or combustion of fossil fuels; ### investment related to the production , processing , distribution , storage or combustion of fossil fuels with the exception of:


### investment related to the production , processing , distribution , storage or combustion of fossil fuels; ### investment related to the production , processing , distribution , storage or combustion of fossil fuels with the exception of investment related to distribution or combustion of natural gas for a transitional period;


### investment related to the production , processing , distribution , storage or combustion of fossil fuels; ### investment related to the production , processing , distribution , storage or combustion of fossil fuels , except if the investment can quickly and highly predictably reduce carbon dioxide emissions from the activities;


### investment related to the production , processing , distribution , storage or combustion of fossil fuels; ### investment related to the production , processing , distribution , storage or combustion of solid fossil fuels;


### the jtf resources shall be programmed for the categories of regions where the territories concerned are located , on the basis of the territorial just transition plans established in accordance with article 7 and approved by the commission as part of a programme or a programme amendment. the resources programmed shall take the form of one or more specific programmes or of one or more priorities within a programme. ### the jtf resources shall be programmed for the categories of regions where the territories concerned are located , on the basis of the territorial just transition plans established in accordance with article 7 and approved by the commission as part of a programme or a programme amendment. the resources programmed shall finance one or more specific programmes or of one or more priorities within a programme.


### the jtf resources shall be programmed for the categories of regions where the territories concerned are located , on the basis of the territorial just transition plans established in accordance with article 7 and approved by the commission as part of a programme or a programme amendment. the resources programmed shall take the form of one or more specific programmes or of one or more priorities within a programme. ### the jtf resources shall be programmed for the categories of regions where the territories concerned are located , on the basis of the territorial just transition plans established in accordance with article 7 and approved by the commission , in consultation with the eib as relevant to its role in the other pillars of the jtm , as part of a programme or a programme amendment. the resources programmed shall take the form of one or more specific programmes or of one or more priorities within a programme.


### the jtf resources shall be programmed for the categories of regions where the territories concerned are located , on the basis of the territorial just transition plans established in accordance with article 7 and approved by the commission as part of a programme or a programme amendment. the resources programmed shall take the form of one or more specific programmes or of one or more priorities within a programme. ### the jtf resources shall be programmed for the categories of regions where the territories concerned are located , on the basis of the territorial just transition plans established in accordance with article 7 and approved by the commission as part of a programme or a programme amendment. the resources programmed shall take the form of one or more specific programmes or of one or more priorities within a programme covered by regulation(eu)…/… [new cpr].


### the commission shall only approve a programme where the identification of the territories most negatively affected by the transition process , contained within the relevant territorial just transition plan , is duly justified and the relevant territorial just transition plan is consistent with the national energy and climate plan of the member state concerned. ### the commission shall only approve a programme or any amendment to it on the condition that:


### 2. the jtf priority or priorities shall comprise the jtf resources consisting of all or part of the jtf allocation for the member states and the resources transferred in accordance with article [21a] of regulation (eu) [new cpr]. the total of the erdf and esf+ resources transferred to the jtf priority shall be at least equal to one and a half times the amount of support from the jtf to that priority but shall not exceed three times that amount. ### 2. the jtf programmes or priorities shall be finance by the jtf resources consisting of all or part of the jtf allocation for the member states and the resources transferred in accordance with article [21(1)] of regulation (eu) [new cpr].


### 1. member states shall prepare , together with the relevant authorities of the territories concerned , one or more territorial just transition plans covering one or more affected territories corresponding to level 3 of the common classification of territorial units for statistics (‘nuts level 3 regions’) as established by regulation (ec) no 1059/2003 of the european parliament and of the council as amended by commission regulation (ec) no 868/201417 or parts thereof , in accordance with the template set out in annex ii. those territories shall be those most negatively affected based on the economic and social impacts resulting from the transition , in particular with regard to expected job losses in fossil fuel production and use and the transformation needs of the production processes of industrial facilities with the highest greenhouse gas intensity. ### 1. member states shall prepare , together with the relevant authorities of the territories concerned , including local and regional authorities , one or more territorial just transition plans covering one or more affected territories corresponding to level 3 of the common classification of territorial units for statistics (‘nuts level 3 regions’) as established by regulation (ec) no 1059/2003 of the european parliament and of the council as amended by commission regulation (ec) no 868/201417 or parts thereof , in accordance with the template set out in annex ii. thematic enabling conditions are not applicable to jtf. those territories shall be those most negatively affected based on the economic and social impacts resulting from the transition , in particular with regard to expected job losses in fossil fuel production and use and the transformation needs of the production processes of industrial facilities with the highest greenhouse gas intensity.


### 1. member states shall prepare , together with the relevant authorities of the territories concerned , one or more territorial just transition plans covering one or more affected territories corresponding to level 3 of the common classification of territorial units for statistics (‘nuts level 3 regions’) as established by regulation (ec) no 1059/2003 of the european parliament and of the council as amended by commission regulation (ec) no 868/201417 or parts thereof , in accordance with the template set out in annex ii. those territories shall be those most negatively affected based on the economic and social impacts resulting from the transition , in particular with regard to expected job losses in fossil fuel production and use and the transformation needs of the production processes of industrial facilities with the highest greenhouse gas intensity. ### 1. member states shall prepare , together with the relevant authorities of the territories concerned , one or more territorial just transition plans covering one or more affected territories corresponding to level 3 of the common classification of territorial units for statistics (‘nuts level 3 regions’) as established by regulation (ec) no 1059/2003 of the european parliament and of the council as amended by commission regulation (ec) no 868/201417 or parts thereof , in accordance with the template set out in annex ii. those territories shall be those most negatively affected based on the economic and social impacts resulting from the transition , in particular with regard to expected job losses in solid fossil fuel production and use and the transformation needs of the production processes of industrial facilities with the highest greenhouse gas intensity.


### a description of the transition process at national level towards a climate-neutral economy , including a timeline for key transition steps which are consistent with the latest version of the national energy and climate plan (‘necp’); ### a description of the transition process at national level towards a 2050 climate-neutral economy , including a timeline for key transition steps which are consistent with the latest version of the national energy and climate plan (‘necp’);


### an assessment of the transition challenges faced by the most negatively affected territories , including the social , economic , and environmental impact of the transition to a climate-neutral economy , identifying the potential number of affected jobs and job losses , the development needs and objectives , to be reached by 2030 linked to the transformation or closure of greenhouse gas-intensive activities in those territories; ### an assessment of the transition challenges faced by the most negatively affected territories , including the social , economic , and environmental impact of the transition to a 2050 climate-neutral economy , identifying the potential number of affected jobs and job losses , the development needs and objectives , to be reached by 2030 linked to the transformation or closure of greenhouse gas-intensive activities in those territories;


### a description of the expected contribution of the jtf support to addressing the social , economic and environmental impacts of the transition to a climate-neutral economy; ### a description of the expected contribution of the jtf support to addressing the social , economic and environmental impacts of the transition to a 2050 climate-neutral economy;


### where support is provided to productive investments to enterprises other than smes , an exhaustive list of such operations and enterprises and a justification of the necessity of such support through a gap analysis demonstrating that the expected job losses would exceed the expected number of jobs created in the absence of the investment; ### where support is provided to investments to enterprises other than smes , an exhaustive list of such operations and enterprises and a justification of the necessity of such support through a gap analysis demonstrating that the expected job losses would exceed the expected number of jobs created in the absence of the investment;


### where support is provided to investments to achieve the reduction of greenhouse gas emissions from activities listed in annex i to directive 2003/87/ec , an exhaustive list of operations to be supported and a justification that they contribute to a transition to a climate neutral economy and lead to a substantial reduction in greenhouse-gas emissions going substantially below the relevant benchmarks established for free allocation under directive 2003/87/ec and provided that they are necessary for the protection of a significant number of jobs; ### where support is provided to investments to achieve the reduction of greenhouse gas emissions from activities listed in annex i to directive 2003/87/ec , an exhaustive list of operations to be supported and a justification that they contribute to a transition to a 2050 climate neutral economy and lead to a substantial reduction in greenhouse-gas emissions going substantially below the relevant benchmarks established for free allocation under directive 2003/87/ec and provided that they are necessary for the protection of a significant number of jobs;


### synergies and complementarities with other union programmes and pillars of the just transition mechanism to address identified development needs. ### synergies and complementarities with other union programmes and pillars of the just transition mechanism to address identified investment needs.


### where the commission concludes , based on the examination of the final performance report of the programme , that there is a failure to achieve at least 65% of the target established for one or more output or result indicators for the jtf resources , it may make financial corrections pursuant to article [98] of regulation (eu) [new cpr] by reducing the support from the jtf to the priority concerned in proportion to the achievements. ### where the commission concludes , based on the examination of the final performance report of the programme , that there is a failure to achieve at least 60% of the target established for one or more output or result indicators for the jtf resources , it may make financial corrections pursuant to article [98] of regulation (eu) [new cpr] by reducing the support from the jtf to the priority concerned in proportion to the achievements.


### the share of each member state is calculated as the weighted sum of the shares determined on the basis of the following criteria , weighted as indicated: ### the share of each member state is calculated as the weighted sum of the shares determined on the basis of the following criteria , calculated as an average for 2015-2017 period , weighted as indicated:


### the allocations resulting from the application of point (a) are adjusted to ensure that no member state receives an amount exceeding eur 2 billion. the amounts exceeding eur 2 billion per member state are redistributed proportionally to the allocations of all other member states. the member states shares are recalculated accordingly; ### the allocations resulting from the application of point (a) are adjusted to ensure that no member state receives an amount exceeding eur 3 billion. the amounts exceeding eur 3 billion per member state are redistributed proportionally to the allocations of all other member states. the member states shares are recalculated accordingly;


### (1) the regulatory framework governing the union’s cohesion policy for the period from 2021 to 2027 , in the context of the next multi-annual financial framework , contributes to the fulfilment of the union’s commitments to implement the paris agreement and the united nations sustainable development goals by concentrating union funding on green objectives. this regulation implements one of the priorities set out in the communication on the european green deal (‘the european green deal’)11 and is part of the sustainable europe investment plan12 providing dedicated financing under the just transition mechanism in the context of cohesion policy to address the economic and social costs of the transition to a climate-neutral and circular economy , where any remaining greenhouse gas emissions are compensated by equivalent absorptions. ### (1) this regulation implements one of the priorities set out in the communication on the european green deal (‘the european green deal’)11 and is part of the sustainable europe investment plan12 providing dedicated financing under the just transition mechanism in the context of cohesion policy to address the economic and social costs of the transition to a climate-neutral and circular economy , where any remaining greenhouse gas emissions are compensated by equivalent absorptions. this regulation , in addition , makes a substantial contribution towards the vital measures to counter the sharp and sudden deflation the eu will have to face as a result of the covid-19 pandemic.


### (1) the regulatory framework governing the union’s cohesion policy for the period from 2021 to 2027 , in the context of the next multi-annual financial framework , contributes to the fulfilment of the union’s commitments to implement the paris agreement and the united nations sustainable development goals by concentrating union funding on green objectives. this regulation implements one of the priorities set out in the communication on the european green deal (‘the european green deal’)11 and is part of the sustainable europe investment plan12 providing dedicated financing under the just transition mechanism in the context of cohesion policy to address the economic and social costs of the transition to a climate-neutral and circular economy , where any remaining greenhouse gas emissions are compensated by equivalent absorptions. ### (1) the regulatory framework governing the union’s cohesion policy for the period from 2021 to 2027 , in the context of the next multi-annual financial framework , contributes to the fulfilment of the union’s commitments to implement the paris agreement to limit global temperature increase to below 1 ,5°c and the united nations sustainable development goals by concentrating union funding on green objectives as well as the european pillar of social rights. this regulation implements one of the priorities set out in the communication on the european green deal (‘the european green deal’)11and is part of the sustainable europe investment plan12 providing dedicated financing under the just transition mechanism in the context of cohesion policy to address the economic and social challenges of the transition to a fully renewables-based , highly resource- and energy-efficient , circular climate-neutral economy as early as possible and by 2050 at the very latest , and to support and accompany union regions and people with social , labour market and economic support.


### (1) the regulatory framework governing the union’s cohesion policy for the period from 2021 to 2027 , in the context of the next multi-annual financial framework , contributes to the fulfilment of the union’s commitments to implement the paris agreement and the united nations sustainable development goals by concentrating union funding on green objectives. this regulation implements one of the priorities set out in the communication on the european green deal (‘the european green deal’)11 and is part of the sustainable europe investment plan12 providing dedicated financing under the just transition mechanism in the context of cohesion policy to address the economic and social costs of the transition to a climate-neutral and circular economy , where any remaining greenhouse gas emissions are compensated by equivalent absorptions. ### (1) the regulatory framework governing the union’s cohesion policy for the period from 2021 to 2027 , in the context of the next multi-annual financial framework , contributes to the fulfilment of the union’s commitments to implement the paris agreement and the united nations sustainable development goals by concentrating union funding on green objectives. this regulation implements one of the priorities set out in the communication on the european green deal (‘the european green deal’)11 and is part of the sustainable europe investment plan12 providing dedicated financing under the just transition mechanism in the context of cohesion policy to address the economic and social costs of the transition to a climate-neutral and circular economy while avoiding environmental degradation and not causing significant harm to any ecosystem , where any remaining greenhouse gas emissions are compensated by equivalent absorptions , where there is closed loop on resources and emissions , where resource efficiency is factored to ten times from the current level , and where waste is designed out from products and the economy.


### (1) the regulatory framework governing the union’s cohesion policy for the period from 2021 to 2027 , in the context of the next multi-annual financial framework , contributes to the fulfilment of the union’s commitments to implement the paris agreement and the united nations sustainable development goals by concentrating union funding on green objectives. this regulation implements one of the priorities set out in the communication on the european green deal (‘the european green deal’)11 and is part of the sustainable europe investment plan12 providing dedicated financing under the just transition mechanism in the context of cohesion policy to address the economic and social costs of the transition to a climate-neutral and circular economy , where any remaining greenhouse gas emissions are compensated by equivalent absorptions. ### (1) the regulatory framework governing the union’s cohesion policy for the period from 2021 to 2027 , in the context of the next multi-annual financial framework , contributes to the fulfilment of the union’s commitments to implement the paris agreement and the united nations sustainable development goals by concentrating union funding on green objectives. this regulation implements one of the priorities set out in the communication on the european green deal (‘the european green deal’)11 and is part of the sustainable europe investment plan12 providing dedicated financing under the just transition mechanism in the context of cohesion policy to address the economic and social costs of the energy transition to a climate-neutral and circular economy , where any remaining greenhouse gas emissions are compensated by equivalent absorptions.


### (1) the regulatory framework governing the union’s cohesion policy for the period from 2021 to 2027 , in the context of the next multi-annual financial framework , contributes to the fulfilment of the union’s commitments to implement the paris agreement and the united nations sustainable development goals by concentrating union funding on green objectives. this regulation implements one of the priorities set out in the communication on the european green deal (‘the european green deal’)11and is part of the sustainable europe investment plan12providing dedicated financing under the just transition mechanism in the context of cohesion policy to address the economic and social costs of the transition to a climate-neutral and circular economy , where any remaining greenhouse gas emissions are compensated by equivalent absorptions. ### (1) the regulatory framework governing the union’s cohesion policy for the period from 2021 to 2027 , in the context of the next multi-annual financial framework , awarding priority to economic recovery measures following the health crisis created by the covid-19 pandemic , contributes to the fulfilment of the union’s commitments to implement the paris agreement and the united nations sustainable development goals by concentrating union funding on green objectives which will result in lower carbon emissions through the transition to clean and fair energy sources and through the promotion of green and blue investment , the circular economy , climate adaptation and risk prevention and management. this regulation implements one of the priorities set out in the communication on the european green deal (‘the european green deal’)11 and is part of the sustainable europe investment plan12 , providing dedicated financing under the just transition mechanism in the context of cohesion policy to address the economic and social costs of the transition to a climate-neutral and circular economy , where any remaining greenhouse gas emissions are compensated by equivalent absorptions.


### 1. the jtf shall only support activities that are directly linked to its specific objective as set out in article 2 and which contribute to the implementation of the territorial just transition plans established in accordance with article 7. ### 1. the jtf shall support activities that are directly linked to its specific objective as set out in article 2 and which contribute to the implementation of the territorial just transition plans established in accordance with article 7.


### 1. welcomes the finding of the court of auditors that the accounts of the european union agency for railways ('the agency') for the 2018 financial year are legal and regular in all material aspects; ### 1. notes the finding of the court of auditors that the accounts of the european union agency for railways ('the agency') for the 2018 financial year are legal and regular in all material aspects;


### 1. grants the executive director of the european union agency for railways discharge in respect of the implementation of the agency’s budget for the financial year 2018/ postpones its decision on granting the executive director of the european union agency for railways discharge in respect of the implementation of the agency’s budget for the financial year 2018; ### 1. grants the executive director of the european union agency for railways discharge in respect of the implementation of the agency’s budget for the financial year 2018;


### 1. approves the closure of the accounts of the european union agency for railways for the financial year 2018/ postpones the closure of the accounts of the european union agency for railways regulators for the financial year 2018; ### 1. approves the closure of the accounts of the european union agency for railways for the financial year 2018;


### 7. notes that the agency has adopted a policy on protecting the dignity of the person and preventing harassment , confidential counsellors are promoted and staff is encouraged to address their issues to them; notes that one alleged harassment was reported , but none was investigated nor taken to court; ### deleted


### 5. welcomes the agency’s continued cooperation with the european securities and markets authority in sharing accountancy services; ### 5. welcomes the agency’s continued cooperation with the european securities and markets authority in sharing accountancy services; further urges the agency to explore possibilities of resources sharing on overlapping tasks among other agencies with similar activities; encourages the agency to actively seek further and broader cooperation with all of the union agencies; encourages the agency to explore the possibility of staff sharing in certain non-expert , technical and administrative fields , with a special emphasis on development of collaboration with paris-based institute for security studies;


### 1. welcomes the finding of the court of auditors (‘the court’) that the consolidated accounts of the european union for the year 2018 are reliable and that the transactions underlying the accounts of the union for the 2018 financial year are generally legal and regular in all material aspects , except for high-risk expenditure (mainly spending on a reimbursement basis , which is subject to complex rules) , which has an estimated error level of 4 ,5%; notes that the overall estimated level of error of 2 ,6% is still above the eca’s materiality threshold (2%); ### 1. notes the finding of the court of auditors (‘the court’) that the consolidated accounts of the european union for the year 2018 are reliable and that the transactions underlying the accounts of the union for the 2018 financial year are generally legal and regular in all material aspects , except for high-risk expenditure (mainly spending on a reimbursement basis , which is subject to complex rules) , which has an estimated error level of 4 ,5%; notes that the overall estimated level of error of 2 ,6% is still above the eca’s materiality threshold (2%);


### 1. grants the director of the executive agency for small and medium-sized enterprises discharge in respect of the implementation of the agency’s budget for the financial year 2018/postpones its decision on granting the director of the executive agency for small and medium-sized enterprises discharge in respect of the implementation of the agency’s budget for the financial year 2018; ### 1. grants the director of the executive agency for small and medium-sized enterprises discharge in respect of the implementation of the agency’s budget for the financial year 2018;


### 1. grants the director of the consumers , health , agriculture and food executive agency discharge in respect of the implementation of the agency’s budget for the financial year 2018/postpones its decision on granting the director of the consumers , health , agriculture and food executive agency discharge in respect of the implementation of the agency’s budget for the financial year 2018; ### 1. grants the director of the consumers , health , agriculture and food executive agency discharge in respect of the implementation of the agency’s budget for the financial year 2018;


### 1. grants the director of the european research council executive agency discharge in respect of the implementation of the agency’s budget for the financial year 2018/postpones its decision on granting the director of the european research council executive agency discharge in respect of the implementation of the agency’s budget for the financial year 2018; ### 1. grants the director of the european research council executive agency discharge in respect of the implementation of the agency’s budget for the financial year 2018;


### 1. grants the director of the research executive agency discharge in relation to the implementation of the agency’s budget for the financial year 2018/postpones its decision on granting the director of the research executive agency discharge in respect of the implementation of the agency’s budget for the financial year 2018; ### 1. grants the director of the research executive agency discharge in relation to the implementation of the agency’s budget for the financial year 2018;


### 1. grants the director of the innovation and networks executive agency discharge in respect of the implementation of the agency’s budget for the financial year 2018/postpones its decision on granting the director of the innovation and networks executive agency discharge in respect of the implementation of the agency’s budget for the financial year 2018; ### 1. grants the director of the innovation and networks executive agency discharge in respect of the implementation of the agency’s budget for the financial year 2018;


### 1. approves the closure of the accounts of the general budget of the european union for the financial year 2018/postpones the closure of the accounts of the general budget of the european union for the financial year 2018; ### 1. approves the closure of the accounts of the general budget of the european union for the financial year 2018;


### 1. highlights that whenever the member states implement the union’s budget , and whatever method of implementation they use , respect for the rule of law is an essential precondition for complying with the principles of sound financial management , which is enshrined in article 317 of the treaty on the functioning of the european union (tfeu); ### 1. highlights that whenever the commission in cooperation with the member states implements the union’s budget , and whatever method of implementation is used - shared , direct or indirect management , respect for the rule of law is an essential precondition for complying with the principles of sound financial management , which is enshrined in article 317 of the treaty on the functioning of the european union (tfeu);


### 1. welcomes the findings of the court of auditors concerning the financial year 2018; takes note of its remarks regarding the regularity of transactions under ‘natural resources’; highlights that transactions under the eagf were free from material errors and that most of the other errors were generated by complex eligibility rules; notes , furthermore , that the risk implied by errors is adequately covered under the corrective capacity of the commission; ### 1. welcomes the findings of the court of auditors concerning the financial year 2018; takes note of its remarks regarding the regularity of transactions under ‘natural resources’; notes that the overall level of error for that heading is 2.4 %; highlights that transactions under the eagf were free from material errors and that most of the other errors were generated by complex eligibility rules; emphasises that the land parcel identification system has helped to reduce the level of error; notes , furthermore , that the risk implied by errors is adequately covered under the corrective capacity of the commission;


### 3. welcomes the completion of the 2017 cef transport blending call in 2018 with an innovative approach making available a total indicative budget of eur 1 ,35 billion of eu grants to be combined with funding from the european fund for strategic investments (efsi) , the european investment bank , national promotional banks or private investors; notes that the second deadline for submission of proposals in april 2018 , focusing on innovation and new technologies projects , notably in the field of alternative fuels , in support of the commission’s clean mobility policy , resulted in 35 projects being selected with a total of eur 404 ,8 million in cef funding; notes the need to improve the level of awareness of the cef eligibility rules among the beneficiaries; ### 3. notes the completion of the 2017 cef transport blending call in 2018 with an innovative approach making available a total indicative budget of eur 1 ,35 billion of eu grants to be combined with funding from the european fund for strategic investments (efsi) , the european investment bank , national promotional banks or private investors; believes that an ex-post evaluation of those projects must be carried out in order to assess this instrument's effectiveness on the basis of the type of action financed; notes that the second deadline for submission of proposals in april 2018 , focusing on innovation and new technologies projects , notably in the field of alternative fuels , in support of the commission’s clean mobility policy , resulted in 35 projects being selected with a total of eur 404 ,8 million in cef funding; notes the need to improve the level of awareness of the cef eligibility rules among the beneficiaries;


### 3. draws attention to the fact that high-risk expenditures are often subject to complex rules and eligibility conditions which lead to errors and that a number of these errors are compounded by a supplemental layer added by national authorities; recalls that simpler national eligibility rules might help reduce this source of error and result in a smaller administrative burden for beneficiaries; ### 3. draws attention to the fact that high-risk expenditures are often subject to complex rules and eligibility conditions which lead to errors and that a number of these errors are compounded by a supplemental layer added by national authorities; recalls that simpler national eligibility rules might help reduce this source of error and result in a smaller administrative burden for beneficiaries; highlights that flexibility can be conducive to a more rapid and efficient uptake of funds;


### 3. welcomes the intention of the court of auditors (the “court”) to move towards an attestation methodology by which the auditor gathers sufficient and appropriate evidence to provide a conclusion on assurance expressed by the responsible entity; recalls the finding of the court that the quality and reliability of national authorities needs to be improved; ### 3. welcomes the intention of the court of auditors (the “court”) to move towards an attestation methodology by which the court gathers sufficient and appropriate evidence to provide a conclusion on assurance expressed by the responsible entity; recalls the finding of the court that the quality and reliability of national authorities needs to be improved;


### 4. notes that the european court of auditors (eca) found a significant increase in payment claims for the european structural and investment funds (esi funds) which include the european social fund , by member states in 2018; notes at the same time , that for those funds absorption had continued to be slower than planned - a phenomenon that had contributed to increasing esi funds outstanding commitments; ### 4. notes that the european court of auditors (eca) found a significant increase in payment claims for the european structural and investment funds (esi funds) which include the european social fund , by member states in 2018; notes at the same time , that for those funds absorption had continued to be slower than planned - a phenomenon that had contributed to increasing esi funds outstanding commitments; regrets those delays in the implementation of the esi funds , which will continue to affect the final years of this mff; fully supports the eca’s recommendation that the commission takes measures to avoid undue pressure on the level of payment appropriations in the first years of the 2021-2027 mff;


### 4. welcomes the 11 000 placements offered to young people by the european solidarity corps programme; regrets , however , the lack of data on the number of placements in the occupational strand of the programme; ### 4. welcomes the 11 000 placements offered to young people by the european solidarity corps programme; regrets , however , the lack of data on the number of placements in the occupational strand of the programme; calls for an increase of the complementarity with national programmes;


### 4. calls on the commission , therefore , to work closely with member states to guarantee comprehensive , precise and reliable data keeping in mind the goal of full implementation of the single audit scheme; calls on the commission to streamline the multiple methodologies and kinds of error rates used by its services in order to avoid confusion and non-transparency; ### 4. calls on the commission , therefore , to work closely with member states to guarantee comprehensive , precise and reliable data keeping in mind the goal of full implementation of the single audit scheme; calls on the commission to ensure that a transparent methodology and consistent terminology is used and to streamline its reporting , in particular , with regard to error rates in order to avoid confusion and non-transparency;


### 4. calls on the commission to monitor closely trade agreements with third countries in respect of quality , health and animal welfare requirements; ### 4. calls on the commission to monitor closely trade agreements with third countries , in particular quality , sanitary , traceability and animal welfare requirements , and to avoid trade agreements that may create imbalances in european farming sectors;


### 5. recalls that the reasons behind this low absorption rate not only lie in the decommitment methodology (the so-called “n+3 rule”) , but also in the late adoption of the legislative framework enabling the implementation of the cohesion policy; therefore calls on the commission and the council to ensure proper measures in the next programming period 2021-2027 to avoid the repetition of delayed implementation of esi funds and its domino effect. ### 5. recalls that the reasons behind this low absorption rate not only lie in the decommitment methodology (the so-called “n+3 rule”) , but also in the late adoption of the legislative framework enabling the implementation of the cohesion policy , which is a situation that needs to be averted in the future; therefore calls on the council and its successive presidencies to match the parliament's speed and focus in the ongoing legislative procedure concerning adoption of the mff and cohesion policy regulations for the next programming period 2021 -2027; further calls on the commission and the council to ensure proper measures in the (next programming period) 2021-2027 programming period in order to avoid the repetition of delayed implementation of esi funds and its domino effect;


### 5. is concerned by alleged cases of high-level conflicts of interest and land-grabbing by oligarchs with possible facilitation by governments and public authorities; calls on the commission to increase efforts to prevent and detect fraud; urges the commission to be extra vigilant on rule of law matters; ### 5. expresses its concern at the alleged cases of high-level conflicts of interest and land-grabbing by oligarchs with possible facilitation by governments and public authorities; invites the member states to apply good legislative practices aimed at restricting land grabs; calls on the commission to increase efforts to prevent and detect fraud; urges the commission to be extra vigilant on rule of law matters;


### 6. reiterates the request of the court to improve coherence , clarity and effectiveness of the eu passenger rights framework , take action to promote awareness campaigns and provide national enforcement bodies with further tools for enforcing passenger rights; ### 6. reiterates the request of the court to improve coherence , clarity and effectiveness of the eu passenger rights framework , take action to promote more effective and transparent information and provide national enforcement bodies with further tools for enforcing passenger rights;


### 6. notes that the internal control system of eacea still needs major improvements , as identified by the reservations raised in the second phase of an audit on the erasmus+ and creative europe grant management; calls on eacea to adopt all the necessary corrective actions , in order to guarantee the highest quality implementation of the programmes. ### 6. notes that the internal control system of eacea still needs major improvements , as identified by the reservations raised in the second phase of an audit on the erasmus+ and creative europe grant management; calls on eacea to adopt all the necessary corrective actions , in order to guarantee the highest quality implementation of the programmes and undertakes to follow this implementation in the upcoming implementation reports of the programmes;


### 6. highlights that increased flexibility of member states in allocating cap subsidies risks further aggravating abuses , and urges therefore the commission to avoid renationalisation of the cap; ### 6. highlights that increased flexibility of member states in allocating cap subsidies risks further aggravating abuses , and urges therefore the commission to avoid renationalisation of the cap , in particular the system for monitoring compliance by individual beneficiaries with the rules on eligibility for support , hence weakening the eu's credibility in managing one of its key public policies and undermining the assurance given annually by the court of auditors concerning the regularity and legality of cap expenditure;


### 11. notes with concern that , due to limitations in its monitoring , fead’s contribution to reducing poverty has not been established , and deplores in particular that the commission does not have data which demonstrates the relative importance of fead in overall support to deprived people in the union; ### 11. notes with concern that , due to limitations in its monitoring , fead’s contribution to reducing poverty has not been established , and deplores in particular that the commission does not have data which demonstrates the substantial importance of fead as a vector of european solidarity and a way of helping to combat social divides in the union , in overall support to deprived people in the union , particularly including food aid;


### 11. calls on the commission to pay greater attention to the geographic distribution of research funds with a view to contributing to the spreading of the culture of excellence in the whole of the union and to the creation of a level playing field for growth and jobs; suggests that greater use should be made of structural funds to promote innovation; ### 11. calls on the commission to pay greater attention to the geographic distribution of research funds with a view to contributing to the spreading of research at the highest level of excellence in the whole of the union and to the creation of a level playing field for growth and jobs; suggests that greater use should be made of structural funds to promote innovation and excellence;


### 12. welcomes the start of new projects focusing on urban mobility , efficient logistics and infrastructure , including the port of the future , worth around eur 105 million from the 2017 call of the horizon 2020 programme; welcomes the adoption of the 3-year horizon 2020 transport work programme for 2018-2020; reiterates the recommendation by the court to set out an eu-wide port development plan for core ports and to revise the number of core ports; ### 12. welcomes the start of new projects focusing on urban mobility , efficient logistics and infrastructure , including the port of the future , worth around eur 105 million from the 2017 call of the horizon 2020 programme; welcomes the adoption of the 3-year horizon 2020 transport work programme for 2018-2020; reiterates the recommendation by the court to set out an eu-wide port development plan for core ports , in keeping with existing national management models , and to revise the number of core ports;


### 12. insists that the high level of outstanding commitments is mainly due to the slow implementation of european structural investment funds; calls on the commission to speed up the delivery of cohesion policy programmes and related payments with a view to reducing the length of the implementation period , initially , to year n+2; ### 12. insists that the high level of outstanding commitments is mainly due to the slow implementation of european structural investment funds; calls on the respective member states to speed up the delivery of cohesion policy programmes and related payments as well as to increase the transparency for applicants and to reduce complexity with a view to reducing the length of the implementation period; encourages the commission to propose a return to the n+2-rule; calls on the commission to closely monitor member states’ implementation in the case of under-implementation and low absorption rates;


### 13. notes that in accordance with union law , the beneficiaries entitled to cap direct payment are those who farm the land; calls on the commission to table a proposal modifying the cap rules with a view to avoiding that union funds be given if such land has been taken by force as it has been observed in some member states; ### 13. notes that in accordance with union law , the beneficiaries entitled to cap direct payment are those who farm the land; calls on the commission to ensure that rules are adopted with a view to avoiding that union subsidies are distributed to those having taken the land by force as it has been observed in some member states; taking into consideration cases such as those reported in slovakia and italy underlines that the commission should come up with proposals clearly indicating that lease or ownership contracts of land are based on rule of law and that national legislation regarding workers rights including income of farm workers are followed;


### 2. is worried that european court of auditors concluded that beneficiaries of union funding under erasmus+ were in some cases obliged to follow national rules that were not fully in line with union principles; stresses that the commission should closely monitor the coherence of implementation measures throughout all member states; ### 2. is worried that european court of auditors concluded that beneficiaries of union funding under erasmus+ were in some cases obliged to follow national rules that were not fully in line with union principles; stresses that the commission should closely monitor the coherence of implementation measures throughout all member states , taking into account full social inclusion and people with disadvantages , for whom unified standards at union level is lacking;


### 2. takes note that the source of those errors is mainly a result of reimbursements of ineligible costs , infringements of internal market rules and lack of support documentation , but is also due to the previous year’s overall low rates of reimbursement and payments as well as fewer financial instruments having been included in the audit; ### 2. takes note that the source of those errors is mainly a result of reimbursements of ineligible costs , infringements of internal market rules and lack of support documentation , but is also due to the previous year’s overall low rates of reimbursement and payments as well as fewer financial instruments having been included in the audit; reminds that simplification of rules in general can greatly contribute to the more effective use of funds and to the reduction of the error rate;


### 2. recalls that article 61 of the financial regulation , which entered into force on 2 august 2018 , has enlarged the definition of conflicts of interests; calls on the commission , as guardian of the treaties , to fight all forms of conflict of interests and to evaluate the preventive measures taken by the member states to avoid them; ### 2. recalls that article 61 of the financial regulation , which entered into force on 2 august 2018 , has enlarged the definition of conflicts of interests; calls on the commission , as guardian of the treaties , to fight all forms of conflict of interests and to evaluate the preventive measures taken by the member states to avoid them; calls on the commission to propose common guidelines for the avoidance of conflicts of interest of high-profile politicians; urges the council to adopt common ethical standards on all issues related to conflicts of interest and to create a common understanding in all member states;


### 2. reiterates its concerns as regards the use of development funds for non-development objectives and underlines that funding which does not fulfil official development assistance criteria must be sourced from other instruments than the development cooperation instrument (dci); underlines the importance of ensuring human rights standards in all cooperation under the dci and insists that in order to successfully combat poverty in the long-term , the union must address the causes of poverty and inequalities; ### 2. reiterates its concerns as regards the use of development funds for non-development objectives and underlines that funding which does not fulfil official development assistance criteria must be sourced from other instruments than the development cooperation instrument (dci); underlines the importance of ensuring human rights standards in all cooperation under the dci and insists that in order to successfully combat poverty in the long-term , the union must address the causes of poverty and promote fairness of opportunity;


### 14. insists that the commission propose to introduce a specific mechanism into the cap rules to support the farmers confronted with land-grabbing malpractices , giving them , in particular , the opportunity to lodge a complaint with the commission; ### 14. insists that the commission proposes a specific complaint mechanism at union level to support farmers or beneficiaries confronted with e.g. land-grabbing malpractices , misconduct of national authorities , pressure from criminal structures or organised crime or persons being subject to forced or slave labour , giving them the opportunity to lodge a complaint with the commission;


### 17. highlights that the increasing use of financial mechanisms to deliver union policies in third countries alongside the union budget risks undermining the level of accountability and transparency of union action; insists that the commission ensures that the delivery of external aid is subject to the rule of law and respect for human rights in recipients countries; stresses , in particular , the need to guarantee that no union funds support forced child labour; ### 17. highlights that the increasing use of financial mechanisms to deliver union policies in third countries alongside the union budget risks undermining the level of accountability and transparency of union action; insists that the commission ensures that the delivery of external aid is subject to the rule of law and respect for human rights in recipients countries; stresses , in particular , the need to guarantee that no union funds support any form of forced or child labour; is concerned about recent press reports from projects in eritrea; urges the commission to quickly follow up on these allegations and report back to the discharge authority in a timely manner;


### 17. highlights that the increasing use of financial mechanisms to deliver union policies in third countries alongside the union budget risks undermining the level of accountability and transparency of union action; insists that the commission ensures that the delivery of external aid is subject to the rule of law and respect for human rights in recipients countries; stresses , in particular , the need to guarantee that no union funds support forced child labour; ### 17. highlights that the increasing use of financial instruments and trust funds to deliver union policies in third countries alongside the union budget risks undermining the level of accountability and transparency of union action; insists that the commission ensures that the delivery of external aid is subject to the rule of law and respect for human rights in recipient countries; stresses , in particular , the need to guarantee that no union funds support forced child labour;


### — having regard to the report of the committee on budgetary control (a9-0000/2020) , ### — having regard to the report of the committee on budgetary control and the opinion of the other committees concerned (a9-0000/2020) ,


### 9. is concerned about the risk of undervaluation of supplies of e-commerce goods from third countries and calls on the commission to carry out sufficient control and monitoring activities in the member states to ensure better cooperation; ### 9. is concerned about the risk of undervaluation of supplies , in particular of e-commerce goods , from third countries and calls on the commission to carry out sufficient control and monitoring activities in the member states to ensure better cooperation; criticises the underfinancing and understaffing of the european public prosecutor's office (eppo) during the build-up-phase and the underestimation of the needs by the commission; underlines that eppo has to process up to 3000 cases per year; emphasises that eppo is in need of 76 additional posts and eur 8 million to become fully operational as foreseen by the end of 2020; strongly encourages that the commission presents a draft amending budget; reminds that the parliament absolutely opposes that olaf is reduced by 45 posts;


### 23. notes that where payments are made on the basis of cost reimbursements , the court estimates the rate of error at 4 ,5 % (compared to 3 ,7 % in 2017 and 4 ,8 % in 2016) whilst the rate of error of entitlement payments85 was below the materiality threshold of 2 % excluding some rural development schemes; ### 23. notes that where payments are made on the basis of cost reimbursements , the court estimates the rate of error at 4 ,5 % (compared to 3 ,7 % in 2017 and 4 ,8 % in 2016) whilst the rate of error of entitlement payments85 was below the materiality threshold of 2 % excluding some rural development schemes;


### 24. points out that the court found the highest estimated level of error in spending under “economic , social and territorial cohesion” (5 ,0 %) , while the error rate in spending on “competitiveness for growth and jobs” was at the materiality threshold (2 ,0 %); ### 24. points out that the court found the highest estimated level of error in spending under “economic , social and territorial cohesion” (5 ,0 %) , while the lowest material error rate in spending on “competitiveness for growth and jobs” was at the materiality threshold (2 ,0 %);


### 27. points out that the court did not estimate levels of error for areas of expenditure , under mff headings 3 security and citizenship and 4 global europe; notes , further , that the court did not issue specific error rates regarding rural development and market operations in cap , neither for the european social fund , the european regional and development fund and the cohesion funds; suggests that the court consider revising its sampling strategy in order to ensure a better comparability from one year to another; ### 27. points out that for 2018 the court did not estimate levels of error for areas of expenditure , under mff headings 3 security and citizenship and 4 global europe; notes , further , that the court presented error rate per policy area and it did not issue specific error rates regarding rural development and market operations in cap , neither individual error rates for the european social fund , the european regional development fund and the cohesion fund; suggests that the court consider revising its sampling strategy in order to ensure a better comparability from one year to another;


### 32. points out , however , that their impact was less than in 2017 (2018: 68 % , 2017: 93 %); notes that this is because in 2018 the court found a higher number of errors in relation to public procurement , state aid rules and grant award procedures; ### 32. points out , however , that the impact of eligibility errors was less than in 2017(2018: 68 % , 2017: 93 %); notes that this is because in 2018 the court found a higher number of errors in relation to public procurement , state aid rules and grant award procedures; deplores about this fact;


### 40. stresses that the rer of dg devco and dg near do not concern payments made in 2018; ### 40. stresses that the rer of dg devco and dg near do not only concern payments made in 2018;


### 52. points out that when comparing the 40 reservations for 2018 to the 38 for 2017 , 38 reservations are recurrent whilst the amount at risk at reporting for the 2017 expenditure under reservations is estimated at eur 1 078 billion (eur 1 053 in 2017 , eur 1 ,6 billion in 2016 and eur 1 ,3 billion in 2015) ; ### 52. points out that 40 reservations were issued by the commission for 2018: 2 reservations were new and 38 were recurrent; notes that five recurrent reservations have been updated , from quantified to unquantified (or vice versa) or for a change of scope and that for all reservations , the impact on 2018 expenditure was calculated or recalculated; notes therefore that the amount at risk at reporting for the 2018 expenditure under reservations is estimated at eur 1 078 million (eur 1 053 million in 2017 , eur 1 621 million in 2016 and eur 1 324 million in 2015);


### 53. notes that despite improvements of its analysis of the impact of corrective action the commission has not eliminated the risk that the impact of corrective actions is overstated; ### 53. regrets that despite improvements of its analysis of the impact of corrective action the commission has not eliminated the risk that the impact of corrective actions is overstated;


### 54. points out , in particular , that for more than three quarters of 2018 expenditure , commission directorates general base their estimates of amount at risk on data provided by national authorities whilst it appears from the aars of the commission directorates general concerned (dg agri , dg regio and dg empl) that the reliability of member states control reports remains a challenge; ### 54. points out , in particular , that for more than three quarters of 2018 expenditure , commission directorates general base their estimates of amount at risk on data provided by national authorities whilst it appears from the aars of the commission directorates general concerned (dg agri , dg regio and dg empl) that the quality and reliability of several member states' controls remains a challenge;


### 57. calls on the commission , in accordance with article 247 of the financial regulation , to align its methodology to the one used by the court and to provide the budgetary control authority with only one error rate corresponding to the risk at payment; calls on the commission to disclose separately an estimate of the future corrections; ### 57. calls on the commission , in accordance with article 247 of the financial regulation , to align its methodology to the one used by the court and to provide the budgetary control authority with only one error rate corresponding to the risk at payment (error rate at payment); calls on the commission to disclose separately an estimate of the future corrections (residual error rate); urges the commission to apply a coherent terminology across all dgs when reporting on these two estimates;


### 58. calls on the commission to take the necessary measures to obtain reliable data from the member states concerning the error rate at payment; ### 58. calls on the commission to take the necessary measures to obtain reliable data from the member states concerning the error rate at payment; calls on the commission to make appropriate adjustments in a timely manner if deficiencies are detected in member states’ controls;


### 79. stresses that the aim of performance information is to provide an indication as to whether union policies and programmes , are achieving their objectives efficiently and effectively; suggests that , if improvements are needed , performance information be used to inform the process of designing necessary corrective measures , and their implementation be monitored; ### 79. stresses that the aim of performance information is to provide an indication as to whether union policies and programmes , are achieving their objectives efficiently and effectively; suggests that , if improvements are needed , performance information be used to inform the process of designing necessary corrective measures , and their implementation be continuously monitored;


### 85. points out with concern that overall , the data included in the programme statements suggest that progress towards the performance targets is moderate which can be explained by the late , slow start for both the cohesion and rural development programmes; notes that this is also due to the lack of administrative capacity in some member states; ### 85. is concerned that overall , the data included in the programme statements suggest that progress towards the performance targets is moderate which can be explained by the late , slow start for both the cohesion and rural development programmes; points out that this is also caused by the lack of administrative capacity in some member states;


### 92. calls on the commission to document the targets proposed so that the budgetary authority can assess their level of ambition; ### 92. calls on the commission to document the programmes' proposed targets proposed so that the budgetary authority can assess their level of ambition;


### 106. observes that vat contributes 12 % to the union revenue of eur 145 billion in 2018; highlights in this context that the commission estimated the vat “gap” , which is the difference between expected vat revenues and vat actually collected , in 2017 to amount to eur137.5 billion89 ; ### 106. observes that vat contributes 12 % to the union revenue of eur 145 billion in 2018; highlights in this context that the commission estimated the vat “gap” , which is the difference between expected vat revenues for the member states' budget and vat actually collected in the national treasuries , in 2017 to amount to eur137.5 billion89; the vat gap covers vat losses affecting mainly the national budgets; among others , the loss may be due to insolvencies , bankruptcies , administrative errors , tax optimisation and also to possible illegal/fraudulent activities;


### 114. emphasises the importance of the use of exchanges of information between member states and with third countries; ### 114. emphasises the high importance of the use of information exchange between member states and with third countries;


### 144. is of the opinion that the dg r&i should pay greater attention to measuring the union added value of r&i investments; ### 144. is of the opinion that the dg r&i should pay greater attention to measuring the union added value of r&i investments; stresses that measuring performance in research and innovation should not be based only on short-term output and monetary indicators , but should take into account the particular nature of research; encourages the commission to develop ways how to improve the support of high-risk research and innovation projects in a transparent way;


### 144. is of the opinion that the dg r&i should pay greater attention to measuring the union added value of r&i investments; ### 144. strongly recommends the dg r&i to pay greater attention to measuring the union added value of r&i investments;


### 152. notes that the multi-annual financial framework (mff) subheading 1b “economic , social and territorial cohesion ” accounts for 34 ,8 % or eur 54 ,5 billion of the union budget; of this amount eur 30 ,1 billion (55 ,1 %) are spent on the european regional development fund (erdf) , eur 9.3 billion (17 %) on the cohesion fund (cf) , eur 13.9 billion (25 ,6 %) on the european social fund (esf) and the rest on other actions; ### 152. notes the information presented by the court that in 2018 payments under multi-annual financial framework (mff)subheading 1b “economic , social and territorial cohesion ” are 34 ,8 % or eur 54 ,5 billion of the annual union budget; notes further that of this amount eur 30 ,1 billion (55 ,1 %) are spent on the european regional development fund(erdf) , eur 9.3 billion (17 %) on the cohesion fund (cf) , eur 13.9 billion(25 ,6 %) on the european social fund (esf) and the rest on other actions;


### 157. takes note of the fact that the court identified and quantified , in those 220 transactions , 36 errors , which had not been detected by audit authorities; taking account of the 60 errors previously found by audit authorities and corrections applied by programme authorities (worth a total of 314 million euros for both programming periods taken together) , the court estimated the level of error to be 5 ,0 %; ### 157. notes with concern the fact that the court identified and quantified , in those 220 transactions ,36 errors , which had not been detected by audit authorities; taking account of the 60 errors previously found by audit authorities and corrections applied by programme authorities (worth a total of 314 million euros for both programming periods taken together) , the court estimated the level of error to be 5 ,0 %;


### 161. wants to know who benefits from the interests accrued on the eur 1 ,6 billion not yet paid to beneficiaries; ### 161. asks the commission to inform the discharge authority who benefits from the interest accrued on the eur 1 ,6 billion not yet paid to beneficiaries and to include this information in its annual reporting from now on;


### 175. notes that eur 18 billion of erdf and cf , which is equivalent to 7 ,2% of the total allocations , are planned to be delivered through financial instruments; ### 175. notes that the dg regio aar for 2018 states that currently eur 18 billion of erdf and cf , which is equivalent to 7 ,2% of the total allocations , are planned to be delivered through financial instruments;


### 176. is surprised that the annual report 2018 on the “financial instruments under the esi funds” has not yet been published; ### 176. observes that the annual report 2018 on the “financial instruments under the esi funds” - situation as at 31 december 2019 informs that at the end of 2018 the esif contributions committed to fis were eur 16 ,9 billion , eur 7 billion were paid to fis from esif (around 41%) and eur 3 ,7 billion were invested in final beneficiaries;


### 179. notes also that dg regio accepted 242 of 258 certified accounts for the accounting year 2018/2019; it did not accept 16 accounts; underlines in this context that the court did not examine the accounts for that period as the verifications were not completed; ### 179. notes also that dg regio accepted 242 of 258 certified accounts for the accounting year 2017/2018; it did not accept 16 accounts; underlines in this context that the court did not examine the accounts for that period as the verifications were not completed;


### 181. was informed that the commission carried out comprehensive audits regarding the application of union and national law; expects that the commission will inform parliament’s responsible committee about the findings of the audits the moment they become available; ### 181. was informed that the commission carried out comprehensive audits regarding the application of union and national law; notes that the commission has informed parliament’s responsible committee in an in camera meeting in december 2019 about the findings of the audits carried out by dg regio and dg empl; calls on the commission to keep the discharge authority and parliament's responsible committee(s) informed about any new developments the moment they become available;


### 181. was informed that the commission carried out comprehensive audits regarding the application of union and national law; expects that the commission will inform parliament’s responsible committee about the findings of the audits the moment they become available; ### 181. was informed that the commission carried out comprehensive audits regarding the application of union and national law; calls on the commission to keep parliament’s responsible committee informed about the all findings of the audits the moment they become available and to follow the findings and the recommendations of the audits;


### 182. deplores the fact that the auditors detected , in the area of regional and cohesion funds , serious deficiencies in the functioning of the management and control systems and therefore suggested a financial correction of almost 20 %; ### 182. deplores the fact that the auditors detected , in the area of regional and cohesion funds , serious deficiencies in the functioning of the management and control systems and therefore suggested a financial correction of almost 20 %; expects commission to adopt reasonable mechanism to avoid future deficiencies;


### 183. also deplores the fact that the commission auditors detected cases of conflict of interests; understands , however , that the czech national law on conflicts of interests does not prohibit granting public funds and that the auditors therefore suggested cancelling public contribution to the projects , as no expenditures were declared so far; ### 183. also deplores the fact that the commission auditors detected cases of conflict of interests including the czech pm; understands , however , that the czech national law on conflicts of interests does not prohibit granting public funds and that the auditors therefore suggested cancelling public contribution to the projects , as no expenditures were declared so far;


### 183. also deplores the fact that the commission auditors detected cases of conflict of interests; understands , however , that the czech national law on conflicts of interests does not prohibit granting public funds and that the auditors therefore suggested cancelling public contribution to the projects , as no expenditures were declared so far; ### 183. also deplores the fact that the commission auditors detected cases of conflict of interests; understands , however , that the czech national law on conflicts of interests does not penalise granting public funds to public officials before february 2017; notes that no expenditures were declared so far;


### 184. welcomes the fact that the commission has informed its competent committee that dg regio intends to recover more than eur 1 billion from programmes , in which it discovered irregularities and that this amount affects the following operational programmes: ### 184. welcomes the fact that the commission has informed its competent committee that dg regio carried out financial corrections of more than eur 1.5 billion from programmes of the 2007-2013 period , in which it discovered irregularities and that this amount affects the following operational programmes:


### - 2007hu161po001 economic cooperation eur 130 million ### - 2007hu161po001 economic development eur 275 million


### - 2007hu161po002 environment eur 157 million ### - 2007hu161po002 environment and energy eur 254 million


### - 2007hu161po007 transport eur 325 million ### - 2007hu161po007 transport eur 371 million


### - 2007hu161po008 social infrastructure eur 103 million ### - 2007hu161po008 social infrastructure eur 120 million


### - 7 regional operational programmes eur 310 million ### - 7 regional operational programmes eur 473 million


### 185. notes furthermore that dg regio has not yet completed verifications concerning technical assistance programmes and programmes concerning electronic administration; it expects however to issue recovery orders worth at least eur 60 million; ### 185. notes furthermore that dg regio has not yet pre-closed the programmes concerning electronic administration , which could imply further corrections;


### 186. ask the commission to establish , for the programmes above , a clear timeline from the start of the project until the recovery of the funds , explaining the different stages; ### 186. asks the commission to establish , for the programmes above , a clear timeline from the start of the project until the recovery of the funds , explaining the different stages;


### 187. asks the commission how these recoveries will be budgeted as they affect programmes of the previous programming period 2007 to 2013; ### 187. asks the commission how these recoveries will be included in the budget as they affect programmes of the previous programming period 2007 to 2013;


### - publish the 2018 annual report on the “financial instruments under the esi funds” without delay; ### deleted


### 199. regrets that in 2018 , dg agri carried out review visits to 17 certification bodies and found only five to be reliable; deficiencies were identified in particular regarding the sampling methodology and the extent of the eligibility checks; ### 199. points out that in 2018 , dg agri carried out review visits to 17 certification bodies and found that improvement is needed for the majority of them and thus , limited reliance could be placed on the work of most of the visited certification bodies as regards verification of legality and regularity; in particular , deficiencies were identified in particular regarding the sampling methodology and the extent of the eligibility checks;


### 210. points out with deep concern that. according to dg agri’s aar for 2018 , tje labour force in cap has steadily declined from 11 595 (1 000 annual work unit) in 2008 to 9 363 (1 000) annual work in 2017 ( , at page 22); ### 210. points out with deep concern that. according to dg agri’s aar for 2018 , the labour force in cap has steadily declined from 11 595 (1 000 annual work unit) in 2008 to 9 363 (1 000) annual work in 2017 (at page 22);


### 217. calls on the commission to ensure that the cap is fairly allocated to active farmers and do not result in land deals that benefit a select group of political insiders often called the oligarchs; ### 217. demands the commission to ensure that the cap is fairly allocated to active farmers and do not result in land deals that benefit a select group of political insiders often called the oligarchs;


### 219. takes note of the fact that (see reply to written question no 3 at the cont hearing of the dg agri director general 17 october 2019): ### 219. takes note of the fact that (see replies to written question no 3 and no 18 at the cont hearing of the dg agri director general 17 october 2019):


### 219. takes note of the fact that (see reply to written question no 3 at the cont hearing of the dg agri director general 17 october 2019): ### 219. is concerned that (see reply to written question no 3 at the cont hearing of the dg agri director general 17 october 2019):


### - the commission enquiry is ongoing. and as a precautionary measure and until the situation is clarified , no payments from the union budget under the esi funds are being made to companies directly and indirectly owned by pm babiš that could be potentially affected by the alleged conflict of interest; ### - the commission enquiry is ongoing , and as a precautionary measure and until the situation is clarified , no payments from the union budget under the esi funds are being made to companies directly and indirectly owned by pm babiš that could be potentially affected by the alleged conflict of interest;


### 221. calls on the commission to cautiously supervise the process in the czech republic , especially payments being made to companies directly and indirectly owned by the prime minister or other members of the czech government , at present; notes that there is still high risk of extensive financial damage in view of the fact that the ministry of agriculture of the czech republic still reimburses subsidies to agrofert; ### 221. calls on the commission to cautiously supervise the process in the czech republic , especially payments being made to companies directly and indirectly owned by the prime minister or other members of the czech government , at present;


### 221. calls on the commission to cautiously supervise the process in the czech republic , especially payments being made to companies directly and indirectly owned by the prime minister or other members of the czech government , at present; notes that there is still high risk of extensive financial damage in view of the fact that the ministry of agriculture of the czech republic still reimburses subsidies to agrofert; ### 221. calls on the commission to cautiously supervise the process in the czech republic , especially payments being made to companies directly and indirectly owned by the czech pm or other members of the czech government , at present; warns that there is still high risk of extensive financial damage in view of the fact that the ministry of agriculture of the czech republic still reimburses subsidies to agrofert , single biggest group in czech agriculture and food industry indirectly owned through trust funds by the czech pm;


### 223. calls on the commission to inform parliament’s responsible committee about the findings of the audits immediately in full respect with the principles of transparency and legal certainty which are part of the rule of law principles; ### 223. calls on the commission to keep parliament’s responsible committee informed about the all findings of the audits immediately in full respect with the principles of transparency and legal certainty which are part of the rule of law principles;


### 224. calls on the commission to carefully scrutinise whether the political situation in czech republic fully respect the rule of law principles; ### 224. calls on the commission to carefully scrutinise whether the political situation in czech republic fully respect the rule of law principles and to take any reasonable steps to protect the rule of law , as one of the key principle of the union in case of the threat of this principle;