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


### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional development needs . ex ante conditionalities should be defined to ensure that the necessary framework conditions for the effective use of union support are in place . the fulfilment of those ex ante conditionalities should be assessed by the commission in the framework of its assessment of the partnership contract and programmes . in cases where there is a failure to fulfil an ex ante conditionality , the commission should have the power to suspend payments to the programme . ### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional needs for sustainable development . ex ante conditionalities should be defined to ensure that the necessary framework conditions for the effective use of union support are in place . an ex ante conditionality should be applied only where it has a direct link to and impact on the effective implementation of the european structural and investment funds . the commission should assess the information provided by member states on the fulfilment of ex ante conditionalities in the framework of its assessment of the partnership agreement and programmes . in cases where there is a failure to fulfil an ex ante conditionality , the commission should have the power to suspend payments to the programme , in accordance with fund - specific rules .


### the elements of the common strategic framework related to coherence and consistency with the economic policies of member states and the union , the coordination mechanisms among the csf funds and with other relevant union policies and instruments , the horizontal principles and cross - cutting policy objectives and the arrangements to address territorial challenges are laid down in annex i . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down the specific elements of the common strategic framework related to the establishment of indicative actions of high european added value and corresponding principles for delivery for each thematic objective and of priorities for cooperation . where there are major changes in the union strategy for smart , sustainable and inclusive growth , the commission shall review the common strategic framework and , where appropriate , adopt by means of delegated acts in accordance with article 142 , amendments to annex i . within 6 months of adoption of a revision to the common strategic framework , member states shall propose amendments , where necessary , to their partnership contract and programmes to ensure their consistency with the revised common strategic framework . ### the common strategic framework is set out in annex i to this regulation . deleted where there are major changes in the social and economic situation in the union or in the union strategy for smart , sustainable and inclusive growth , the commission may submit a proposal to review the common strategic framework , or the european parliament or the council , acting in accordance with articles 225 or 241 of the treaty on the functioning of the european union respectively , may request the commission to submit such a proposal . the commission shall be empowered to adopt delegated acts in accordance with article 142 in order to supplement or amend sections 4 and 7 of the common strategic framework set out in annex i where it is necessary to take account of changes in the union policies or instruments referred to in section 4 or changes in the cooperation activities referred to in section 7 , or to take account of the introduction of new union policies , instruments or cooperation activities .


### for the partnership contract and each programme respectively , a member state should organise a partnership with the representatives of competent regional , local , urban and other public authorities , economic and social partners , and bodies representing civil society , including environmental partners , non - governmental organisations , and bodies responsible for promoting equality and non - discrimination . the purpose of such a partnership is to respect the principle of multi - level governance , ensure the ownership of planned interventions by stakeholders and build on the experience and know - how of relevant actors . the commission should be empowered to adopt delegated acts providing for a code of conduct in order to ensure that partners are involved in the preparation , implementation , monitoring and evaluation of partnership contracts and programmes in a consistent manner . ### for the partnership agreement and each programme respectively , a member state should organise a partnership with the representatives of competent regional , local , urban and other public authorities , economic and social partners and other bodies representing civil society , including environmental partners , non - governmental organisations and bodies responsible for promoting equality and non - discrimination , including , where appropriate , the ' umbrella organisations ' of such bodies , authorities and organisations . the purpose of such a partnership is to respect the principles of multi - level governance , but also of subsidiarity and proportionality and the specificities of the member states ' different legal and institutional frameworks as well as to ensure the ownership of planned interventions by stakeholders and build on the experience and the know - how of relevant actors . the member states should identify the most representative relevant partners , who should include the institutions , organisations and groups which can influence the preparation or be affected by the preparation and implementation of the programmes . in this context member states may also identify , where appropriate , as relevant partners , ' umbrella organisations ' which are the associations , federations or confederations of relevant local , regional and urban authorities or other bodies in accordance with applicable national law and practice . the commission shall be empowered to adopt a delegated act providing for a code of conduct in order to facilitate member states the implementation of partnership with regard to ensure the involvement of relevant partners in the preparation , implementation , monitoring and evaluation of partnership agreements and programmes in a consistent manner . the adopted delegated act should have under no circumstances and in no way of its interpretation retroactive effect or be the basis to establish irregularities leading to financial corrections . the adopted delegated act should not enter into force earlier than the day of its adoption after the entry into force of this regulation . the adopted delegated act should allow member states to determine on the most appropriate modalities for implementing the partnership in accordance with their institutional and legal framework as well as their national and regional competences , provided that its objectives , as laid down in this regulation , are achieved .


### the commission should be empowered to adopt , by means of implementing acts , as regards all csf funds , decisions approving the partnership contracts , decisions on the allocation of the performance reserve , decisions suspending payments linked to member states ' economic policies , and , in the case of decommitment , decisions to amend decisions adopting programmes ; and as regards the funds , decisions identifying the regions and member states fulfilling the investment for growth and jobs criteria , decisions setting out the annual breakdown of commitment appropriations to the member states , decisions setting out the amount to be transferred from each member state ' s cf allocation to the connecting europe facility , decisions setting out the amount to be transferred from each member state ' s structural funds allocation for food for deprived people , decisions adopting and amending operational programmes , decisions on major projects , decisions on joint action plans , decisions suspending payments and decisions on financial corrections . ### with regard to all of the european structural and investment funds , the commission should be empowered to adopt , by means of implementing acts , decisions approving the partnership agreements , and , in the case of decommitment , decisions to amend decisions adopting programmes ; and as regards the funds , decisions identifying the regions and member states fulfilling the investment for growth and jobs criteria , decisions setting out the annual breakdown of commitment appropriations to the member states , decisions setting out the support to be provided from the cohesion fund to transport infrastructure projects of european added value and the pre - indentified projects listed in annex 1 of regulation [ . . . ] / 2012 on establishing the connecting europe facility that will be carried out in each member state , decisions setting out the amount to be transferred from each member state ' s structural funds allocation for food for deprived people , decisions adopting and amending operational programmes , decisions on major projects , decisions on joint action plans , decisions suspending payments and decisions on financial corrections , decisions on the amount chargeable to the funds for the accounting year and the annual balance due to the member state or to be recovered .


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


### the commission shall be empowered to adopt delegated acts in accordance with article 142 concerning the definition of the area and population covered by the strategy referred in paragraph 1 . ### the population of the area referred to in paragraph 1 above shall be not less than 10 000 and not more than 150 000 inhabitants . by way of derogation , the commission may adopt or amend these population limits for a member state in the partnership agreement , in accordance with the procedures foreseen in articles 15 . 2 and 15 . 3 , in duly justified cases , on the basis of a proposal by a member state in order to take account of sparsely or densely populated areas or in order to ensure the territorial coherence of areas covered by the local development strategies .


### the progress report shall set out information on and assess : changes in the development needs in the member state since the adoption of the partnership contract ; progress towards achievement of the union strategy for smart , sustainable and inclusive growth , in particular in respect of the milestones set out for each programme in the performance framework and the support used for climate change objectives ; whether the actions taken to fulfil ex ante conditionalities not fulfilled at the date of adoption of the partnership contract have been implemented in accordance with the timetable established ; implementation of mechanisms to ensure coordination between the csf funds and other union and national funding instruments and with the eib ; progress towards achievement of priority areas established for cooperation ; actions taken to reinforce the capacity of the member state authorities and , where appropriate , beneficiaries to administer and use the csf funds ; actions planned and corresponding targets in the programmes to achieve a reduction in the administrative burden for beneficiaries ; the role of the partners referred in article 5 in the implementation of the partnership contract . ### the progress report shall set out information on and assess : changes in the development needs in the member state since the adoption of the partnership agreement ; progress towards achievement of the union strategy for smart , sustainable and inclusive growth , as well as of the fund - specific missions referred to in article 4 . 1 , through the contribution of the european structural and investment funds to the thematic objectives selected , and in particular in respect to the milestones set out in the performance framework for each programme , and to the support used for climate change objectives ; whether the actions taken to fulfil the applicable ex ante conditionalities set out in the partnership agreement not fulfilled at the date of adoption of the partnership agreement have been implemented in accordance with the timetable established . this only applies to the 2017 progress report ; implementation of mechanisms to ensure coordination between the european structural and invenstment funds and other union and national funding instruments and with the eib ; implementation of the integrated approach to territorial development , or a summary of the implementation of the integrated approaches based on the programmes , including progress towards achievement of priority areas established for cooperation ; where appropriate , actions taken to reinforce the capacity of the member state authorities and beneficiaries to administer and use the european structural and investment funds ; actions taken and progress achieved towards a reduction in the administrative burden for beneficiaries ; the role of the partners referred to in article 5 in the implementation of the partnership agreement ; a summary of the actions taken in relation to the application of horizontal principles and policy objectives for the implementation of the european structural and investment funds .


### capital resources paid back to financial instruments from investments or from the release of resources committed for guarantee contracts , which are attributable to the support from the csf funds , shall be re - used for further investments through the same or other financial instruments , in accordance with the aims of the programme or programmes . ### resources paid back to financial instruments from investments or from the release of resources committed for guarantee contracts , including capital repayments and gains and other earnings or yields , such as interest , guarantee fees , dividends , capital gains or any other income generated by investments , which are attributable to the support from the european structural and investment funds , shall be re - used for the following purposes , up to the amounts necessary and in the order agreed in the relevant funding agreements .


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


### the commission shall adopt a decision , by means of implementing acts , approving the partnership contract no later than six months after its submission by the member state , provided that any observations made by the commission have been satisfactorily taken into account . the partnership contract shall not enter into force before 1 january 2014 . ### the commission shall adopt a decision , by means of implementing acts , approving the elements of the partnership agreement falling under paragraph 1 of article 14 and under paragraph 2 of article 14 in cases where a member state has made use of the provisions of article 87 , for the elements requiring a commission decision under article 87 no later than four months after its submission by the member state , provided that any observations made by the commission have been adequately taken into account . the partnership agreement shall not enter into force before 1 january 2014 .


### the commission shall adopt a decision approving the operational programme by means of implementing acts . ### the operational programme shall identify : the managing authority , the certifying authority , where applicable , and the audit authority ; the body to which payments will be made by the commission ; the actions taken to involve the relevant partners referred to in article 5 in the preparation of the operational programme , and the role of the partners in the implementation , monitoring and evaluation of the operational programme .


### the commission may request the eib to examine the technical quality and economic and financial viability of major projects and to assist it as regards the financial instruments to be implemented or developed . ### the commission may request the eib to examine the technical quality and economic , financial viability and sustainability of major projects and to assist it as regards the financial instruments to be implemented or developed .


### the audit authority shall ensure that audits are carried out on the management and control systems , on an appropriate sample of operations and on the annual accounts . the commission shall be empowered to adopt delegated acts in accordance with article 142 to set out the conditions which those audits shall fulfil . ### the audit authority shall ensure that audits are carried out on the proper functioning of the management and control system of the operational programme and on an appropriate sample of operations on the basis of the declared expenditure . deleted


### the member states and the commission shall ensure that equality between men and women and the integration of gender perspective is promoted in the preparation and implementation of programmes . ### the member states and the commission shall ensure that equality between men and women and the integration of gender perspective are taken into account and promoted throughout the preparation and implementation , in relation to monitoring , reporting and evaluation of programmes .


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


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


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


### the commission shall assess the information provided in accordance with paragraph 1 , taking account of the justification provided by the member state . the commission may make observations and the member state shall provide to the commission all necessary additional information . in accordance with fund - specific rules , the commission shall approve requests for amendment of a programme no later than five months after their formal submission by the member state provided that any observations made by the commission have been satisfactorily taken into account . the commission shall , where necessary , amend at the same time the decision approving the partnership contract in accordance with article 15 . ### the commission shall assess the information provided in accordance with paragraph 1 , taking account of the justification provided by the member state . the commission may make observations within one month following the formal submission of the revised programme and the member state shall provide to the commission all necessary additional information . in accordance with fund - specific rules , the commission shall approve requests for amendment of a programme as soon as possible but no later than three months after their formal submission by the member state provided that any observations made by the commission have been adequately taken into account . where the amendment of a programme affects the information provided in the partnership agreement in accordance with article 14 , , , the approval of the amendment of the programme by the commission shall at the same time constitute an approval for the consequential revision of the information in the partnership agreement .


### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional development needs . ex ante conditionalities should be defined to ensure that the necessary framework conditions for the effective use of union support are in place . the fulfilment of those ex ante conditionalities should be assessed by the commission in the framework of its assessment of the partnership contract and programmes . in cases where there is a failure to fulfil an ex ante conditionality , the commission should have the power to suspend payments to the programme . ### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional needs for sustainable development . ex ante conditionalities should be defined to ensure that the necessary framework conditions for the effective use of union support are in place . an ex ante conditionality should be applied only where it has a direct link to and impact on the effective implementation of the european structural and investment funds . the commission should assess the information provided by member states on the fulfilment of ex ante conditionalities in the framework of its assessment of the partnership agreement and programmes . in cases where there is a failure to fulfil an ex ante conditionality , the commission should have the power to suspend payments to the programme , in accordance with fund - specific rules .


### the decision to approve a local development strategy by the managing authority shall set out the allocations of each csf fund . it shall also set out the roles of the authorities responsible for the implementation of the relevant programmes for all implementation tasks relating to the strategy . ### the decision approving a community - led local development strategy shall set out the allocations of each of the concerned european structural and investment funds . the decision shall also set out the responsibilities for the management and control tasks under the programme or programmes in relation to the local development strategy .


### the commission may issue recommendations to address any issues which affect the implementation of the programme . where such recommendations are made , the managing authority shall inform the commission within three months of the corrective measures taken . ### the commission may issue recommendations to address any issues which affect the implementation of the programme including its programme and project management . where such recommendations are made , the managing authority shall inform the commission within three months of the corrective measures taken .


### member states shall adopt the necessary measures to ensure that the capital resources and gains and other earnings or yields attributable to the support from the csf funds to financial instruments are used in accordance with the aims of the programme for a period of at least 10 years after the closure of the programme . ### member states shall adopt the necessary measures to ensure that the capital resources and gains and other earnings or yields attributable to the support from the csf funds to financial instruments are used in accordance with the aims of the programme for a period of at least 5 years after the closure of the programme .


### the elements of the common strategic framework related to coherence and consistency with the economic policies of member states and the union , the coordination mechanisms among the csf funds and with other relevant union policies and instruments , the horizontal principles and cross - cutting policy objectives and the arrangements to address territorial challenges are laid down in annex i . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down the specific elements of the common strategic framework related to the establishment of indicative actions of high european added value and corresponding principles for delivery for each thematic objective and of priorities for cooperation . where there are major changes in the union strategy for smart , sustainable and inclusive growth , the commission shall review the common strategic framework and , where appropriate , adopt by means of delegated acts in accordance with article 142 , amendments to annex i . within 6 months of adoption of a revision to the common strategic framework , member states shall propose amendments , where necessary , to their partnership contract and programmes to ensure their consistency with the revised common strategic framework . ### the common strategic framework is set out in annex i to this regulation . deleted where there are major changes in the social and economic situation in the union or in the union strategy for smart , sustainable and inclusive growth , the commission may submit a proposal to review the common strategic framework , or the european parliament or the council , acting in accordance with articles 225 or 241 of the treaty on the functioning of the european union respectively , may request the commission to submit such a proposal . the commission shall be empowered to adopt delegated acts in accordance with article 142 in order to supplement or amend sections 4 and 7 of the common strategic framework set out in annex i where it is necessary to take account of changes in the union policies or instruments referred to in section 4 or changes in the cooperation activities referred to in section 7 , or to take account of the introduction of new union policies , instruments or cooperation activities .


### already existing or newly created financial instruments which are specifically designed to achieve the intended purpose and which respect the applicable union and national rules . ### already existing or newly created financial instruments which are specifically designed to achieve the specific objectives set out under the relevant priority or measure .


### commission powers and responsibilities the commission shall satisfy itself on the basis of available information , including the accreditation procedure , annual management declaration , annual control reports , annual audit opinion , annual implementation report and audits carried out by national and union bodies , that the member states have set up management and control systems that comply with this regulation and the fund - specific rules and that these systems function effectively during the implementation of programmes . 2 . without prejudice to audits carried out by member states , commission officials or authorised commission representatives may carry out on - the - spot audits or checks upon giving adequate prior notice . the scope of such audits or checks may include , in particular , verification of the effective functioning of management and control systems in a programme or a part thereof , operations and assessment of the sound financial management of operations or programmes . officials or authorised representatives of the member state may take part in such audits . commission officials or authorised commission representatives , duly empowered to carry out on - the - spot audits , shall have access to all records , documents and metadata , irrespective of the medium in which they are stored , relating to operations supported by the csf funds or to management and control systems . member states shall provide copies of such records , documents and metadata to the commission upon request . the powers set out in this paragraph shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national legislation . commission officials and authorised representatives shall not take part , inter alia , in home visits or the formal questioning of persons within the framework of national legislation . however , they shall have access to the information thus obtained . 3 . the commission may require a member state to take the actions necessary to ensure the effective functioning of their management and control systems or the correctness of expenditure in accordance with the fund - specific rules . 4 . the commission may require a member state to examine a complaint submitted to the commission concerning the selection or implementation of operations co - financed by the csf funds or the functioning of the management and control system . ### commission powers and responsibilities the commission shall satisfy itself , on the basis of available information , including information on the designation of bodies responsible for the management and control , the documents provided each year by the designated bodies under article 59 of the financial regulation , control reports , annual implementation reports and audits carried out by national and union bodies , that the member states have set up management and control systems that comply with this regulation and the fund - specific rules and that these systems function effectively during the implementation of programmes . 2 . without prejudice to audits carried out by member states , commission officials or authorised commission representatives may carry out on - the - spot audits or checks upon giving prior notice of a minimum of 10 working days , except in urgent cases where no notice shall be required . the scope of such audits or checks may include , in particular , verification of the effective functioning of management and control systems in a programme or a part thereof , operations and assessment of the sound financial management of operations or programmes . officials or authorised representatives of the member state may take part in such audits . commission officials or authorised commission representatives , duly empowered to carry out on - the - spot audits or checks , shall have access to all necessary records , documents and metadata , irrespective of the medium in which they are stored , relating to operations supported by the european structural and investment funds or to management and control systems . member states shall provide copies of such records , documents and metadata to the commission upon request . the powers set out in this paragraph shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national legislation . commission officials and authorised representatives shall not take part , inter alia , in home visits or the formal questioning of persons within the framework of national legislation . however , they shall have access to the information thus obtained without prejudice to the competences of national courts and in full respect of the fundamental rights of the concerned legal subjects . 3 . the commission may require a member state to take the actions necessary to ensure the effective functioning of their management and control systems or the correctness of expenditure in accordance with the fund - specific rules . deleted


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


### the delegations of power referred to in this regulation shall be conferred for an indeterminate period of time from the date of entry into force of this regulation . ### the delegations of power referred to in articles . . . 1 shall be conferred on the commission for a period of 3 years from . . . . 2 . the commission shall draw up a report in respect of the delegation of power not later than 9 months before the end of the three year period . the delegation of power shall be tacitly extended until the review of this regulation , unless the european parliament or the council opposes such extension not later than 3 months before the end of that period . ______________ 1 2 oj :


### programmes shall be submitted by the member states at the same time as the partnership contract , with the exception of european territorial cooperation programmes , which shall be submitted within six months of the approval of the common strategic framework . all programmes shall be accompanied by the ex ante evaluation as set out in article 48 . ### programmes shall be submitted by the member states at the latest three months following the submission of the partnership agreement . european territorial cooperation programmes shall be submitted within nine months of the entry into force of this regulation . all programmes shall be accompanied by the ex ante evaluation as set out in article 48 .


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


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


### the contribution to the integrated approach for territorial development set out in the partnership contract , including : the mechanisms that ensure coordination between the funds , the eafrd , the emff and other union and national funding instruments , and with the eib ; where appropriate , a planned integrated approach to the territorial development of urban , rural , coastal and fisheries areas and areas with particular territorial features , in particular the implementation arrangements for articles 28 and 29 ; the list of cities where integrated actions for sustainable urban development will be implemented , the indicative annual allocation of the erdf support for these actions , including the resources delegated to cities for management under article 7 of regulation no [ … ] [ erdf ] and the indicative annual allocation of esf support for integrated actions ; the identification of the areas in which community - led local development will be implemented ; the arrangements for interregional and transnational actions with beneficiaries located in at least one other member state ; where appropriate , the contribution of the planned interventions towards macro regional strategies and sea basin strategies ; ### deleted deleted deleted deleted deleted deleted deleted


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


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


### a description of the strategy and its objectives , a description of the integrated and innovative character of the strategy and a hierarchy of objectives , including clear and measurable targets for outputs or results . the strategy shall be coherent with the relevant programmes of all the csf funds involved ; ### a description of the strategy and its objectives , a description of the integrated and innovative character of the strategy and a hierarchy of objectives , including measurable targets for outputs or results . for results targets may be expressed in quantitative or qualitative terms . the strategy shall be consistent with the relevant programmes of all the concerned european structural and investment funds involved ;


### the common strategic framework shall establish : means to achieve coherence and consistency of the programming of the csf funds with the country - specific recommendations under article 121 of the treaty and the relevant council recommendations adopted under 148 of the treaty ; coordination mechanisms among the csf funds , and with other relevant union policies and instruments , including external instruments for cooperation ; horizontal principles and cross - cutting policy objectives for the implementation of the csf funds ; arrangements to address territorial challenges and the steps to be taken to encourage an integrated approach that reflects the role of urban , rural , coastal and fisheries areas , as well as the specific challenges for areas with particular territorial features referred to in articles 174 and 349 of the treaty ; for each thematic objective , the indicative actions of high european added value to be supported by each csf fund and the corresponding principles for delivery ; priorities for cooperation for the csf funds , where appropriate , taking account of macro - regional and sea basin strategies . ### the common strategic framework shall establish : mechanisms for ensuring the contribution of the european structural and investment funds to the union ' s strategy for smart , sustainable and inclusive growth and coherence and consistency of the programming of the european structural and investment funds with the relevant country - specific recommendations adopted in accordance with article 121 of the treaty on the functioning of the european union and the relevant council recommendations adopted in accordance with 148 of the treaty on the functioning of the european union and where appropriate at national level , the national reform programmes ; arrangements to promote the integrated use of the european structural and investment funds ; the arrangements for coordination between the european structural and investment funds and other relevant union policies and instruments , including external instruments for cooperation ; horizontal principles and cross - cutting policy objectives for the implementation of the european structural and investment funds ; the arrangements to address the key territorial challenges for urban , rural , coastal and fisheries areas , the demographic challenges of regions or specific needs of geographical areas which suffer by severe and permanent natural or demographic handicaps as referred to in articles 174 and 349 of the treaty on the functioning of the european union ; deleted priority areas for cooperation activities for the european structural and investment funds , where appropriate , taking account of macro - regional and sea basin strategies .


### an operational programme shall consist of priority axes . a priority axis shall concern one fund for a category of region and shall correspond , without prejudice to article 52 , to a thematic objective and comprise one or more investment priorities of that thematic objective , in accordance with the fund - specific rules . for the esf , a priority axis may combine investment priorities from different thematic objectives set out in article 9 , , and in order to facilitate their contribution to other priority axes , in duly justified circumstances . ### an operational programme shall consist of priority axes . a priority axis may concern one or more categories of region , or combine one or more complementary investment priorities from different thematic objectives and funds , in accordance with fund - specific rules .


### ' partnership contract ' means the document prepared by the member state with the involvement of partners in line with the multi - level governance approach , which sets out the member state ' s strategy , priorities and arrangements for using the csf funds in an effective and efficient way to pursue the union strategy for smart , sustainable and inclusive growth , and which is approved by the commission following assessment and dialogue with the member state ; ### ' partnership agreement ' means the document prepared by the member state with the involvement of partners in line with the multi - level governance approach , which sets out the member state ' s strategy , priorities and arrangements for using the european structural and investment funds in an effective and efficient way to pursue the union strategy for smart , sustainable and inclusive growth , and which is approved by the commission following assessment and dialogue with the member state ; note to translation : the term ‘ partnership agreement’ will replace the term ' partnership contract ' in this regulation ; adopting this amendment will necessitate corresponding changes throughout the texts .


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


### ' local development strategy ' means a coherent set of operations to meet local objectives and needs , which contributes to meeting the union strategy for smart , sustainable and inclusive growth and which is implemented in partnership at the appropriate level ; ### ' community - led local development strategy ' means a coherent set of operations to meet local objectives and needs , which contributes to meeting the union strategy for smart , sustainable and inclusive growth , and which is designed and implemented by a local action group ;


### method for establishing the performance framework the performance framework shall consist of milestones established for each priority for the years 2016 and 2018 and targets established for 2022 . the milestones and targets shall be presented in accordance with the format set out in table 1 . 2 . milestones are intermediate targets for the achievement of the specific objective of a priority , expressing the intended progress towards the targets set for the end of the period . milestones established for 2016 shall include financial indicators and output indicators . milestones established for 2018 shall include financial indicators , output indicators and where appropriate , result indicators . milestones may also be established for key implementation steps . 3 . milestones shall be : – relevant , capturing essential information on the progress of a priority ; – transparent , with objectively verifiable targets and the source data identified and publicly available ; – verifiable , without imposing a disproportionate administrative burden ; – consistent across operational programmes , where appropriate . ### method for establishing the performance framework the performance framework shall consist of milestones established for each priority for the year 2018 and targets established for 2022 . the milestones and targets shall be presented in accordance with the format set out in table 1 . 2 . milestones are intermediate targets , directly linked to the achievement of the specific objective of a priority , expressing the intended progress towards the targets set for the end of the period . milestones established for 2018 shall include financial indicators , output indicators and where appropriate , result indicators , which are closely linked to the supported policy interventions . result indicators shall not be taken into account for the purposes of article 20 and article 20 . milestones may also be established for key implementation steps . 3 . milestones and targets shall be – realistic , achievable , relevant , capturing essential information on the progress of a priority ; – consistent with the nature and character of the specific objectives of the priority ; – transparent , with objectively verifiable targets and the source data identified and , where possible , publicly available ; – verifiable , without imposing a disproportionate administrative burden ; – consistent across operational programmes , where appropriate . 3 a . in duly justified cases , such as a significant change in the economic , environmental and labour market conditions in a member state or region , and in addition to amendments resulting from changes in allocations for a given priority , the member state may propose the revision of milestones and targets in accordance with article 26 of this regulation .


### financial instruments should be designed and implemented so as to promote substantial participation by private sector investors and financial institutions on an appropriate risk - sharing basis . to be sufficiently attractive to private sector , financial instruments need to be designed and implemented in a flexible manner . managing authorities should therefore decide on the most appropriate forms to implement financial instruments to address the specific needs of the target regions , in accordance with the objectives of the relevant programme . ### financial instruments should be designed and implemented so as to promote substantial participation by private sector investors and financial institutions on an appropriate risk - sharing basis . to be sufficiently attractive to private sector , financial instruments need to be simple , catalytic , revolving and designed and implemented in a flexible manner . managing authorities should therefore decide on the most appropriate forms to implement financial instruments to address the specific needs of the target regions , in accordance with the objectives of the relevant programme .


### an analysis of the development needs and objectives justifying the joint action plan , taking into account the objectives of the operational programmes and , where applicable , the country - specific recommendations and the broad guidelines of the economic policies of the member states and of the union under article 121 and the council recommendations which the member states shall take into account in their employment policies under article 148 of the treaty ; ### an analysis of the development needs and objectives justifying the joint action plan , taking into account the objectives of the operational programmes , of macro regional strategies and sea basins strategies where they have a significant impact , and , where applicable , the country - specific recommendations and the broad guidelines of the economic policies of the member states and of the union under article 121 and the council recommendations which the member states shall take into account in their employment policies under article 148 of the treaty ;


### the commission shall adopt delegated acts , in accordance with article 142 , laying down rules concerning arrangements for the audit trail referred to in paragraph 4 . ### the commission shall be empowered to adopt delegated acts , in accordance with article 142 , laying down the detailed minimum requirements for the audit trail referred to in paragraph 4 in respect of the accounting records to be maintained and the supporting documents to be held at the level of the certifying authority , managing authority , intermediate bodies and beneficiaries .


### the commission shall be empowered to adopt delegated acts in accordance with article 142 to provide for a european code of conduct that lays down objectives and criteria to support the implementation of partnership and to facilitate the sharing of information , experience , results and good practices among member states . ### the commission shall be empowered to adopt delegated acts in accordance with article 142 to provide , after consulting the european economic and social partners and european partner organisations , for a european code of conduct that lays down objectives and criteria to support the implementation of partnership and to facilitate the sharing of information , experience , results and good practices among member states .


### for the partnership contract and each programme respectively , a member state shall organise a partnership with the following partners : ### for the partnership agreement and each programme respectively , a member state shall in accordance with their institutional and legal framework organise a partnership with the competent regional and local authorities . the partnership shall also include the following partners :


### in order to achieve the targets and objectives of the union strategy for smart , sustainable and inclusive growth , the csf funds should focus their support on a limited number of common thematic objectives . the precise scope of each of the csf funds should be set out in funds - specific rules and may be limited to only some of the thematic objectives defined in this regulation . ### in order to achieve the targets and objectives of the union strategy for smart , sustainable and inclusive growth , the european structural and investment funds should focus their support on a limited number of common thematic objectives , which leave sufficient scope for flexibility in order to accommodate the specific needs of regions and give adequate responses to them . the precise scope of each of the european structural and investment funds should be set out in funds - specific rules and may be limited to only some of the thematic objectives defined in this regulation .


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


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


### commission powers and responsibilities the commission shall satisfy itself on the basis of available information , including the accreditation procedure , annual management declaration , annual control reports , annual audit opinion , annual implementation report and audits carried out by national and union bodies , that the member states have set up management and control systems that comply with this regulation and the fund - specific rules and that these systems function effectively during the implementation of programmes . 2 . without prejudice to audits carried out by member states , commission officials or authorised commission representatives may carry out on - the - spot audits or checks upon giving adequate prior notice . the scope of such audits or checks may include , in particular , verification of the effective functioning of management and control systems in a programme or a part thereof , operations and assessment of the sound financial management of operations or programmes . officials or authorised representatives of the member state may take part in such audits . commission officials or authorised commission representatives , duly empowered to carry out on - the - spot audits , shall have access to all records , documents and metadata , irrespective of the medium in which they are stored , relating to operations supported by the csf funds or to management and control systems . member states shall provide copies of such records , documents and metadata to the commission upon request . the powers set out in this paragraph shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national legislation . commission officials and authorised representatives shall not take part , inter alia , in home visits or the formal questioning of persons within the framework of national legislation . however , they shall have access to the information thus obtained . 3 . the commission may require a member state to take the actions necessary to ensure the effective functioning of their management and control systems or the correctness of expenditure in accordance with the fund - specific rules . 4 . the commission may require a member state to examine a complaint submitted to the commission concerning the selection or implementation of operations co - financed by the csf funds or the functioning of the management and control system . ### commission powers and responsibilities the commission shall satisfy itself , on the basis of available information , including information on the designation of bodies responsible for the management and control , the documents provided each year by the designated bodies under article 59 of the financial regulation , control reports , annual implementation reports and audits carried out by national and union bodies , that the member states have set up management and control systems that comply with this regulation and the fund - specific rules and that these systems function effectively during the implementation of programmes . 2 . without prejudice to audits carried out by member states , commission officials or authorised commission representatives may carry out on - the - spot audits or checks upon giving prior notice of a minimum of 10 working days , except in urgent cases where no notice shall be required . the scope of such audits or checks may include , in particular , verification of the effective functioning of management and control systems in a programme or a part thereof , operations and assessment of the sound financial management of operations or programmes . officials or authorised representatives of the member state may take part in such audits . commission officials or authorised commission representatives , duly empowered to carry out on - the - spot audits or checks , shall have access to all necessary records , documents and metadata , irrespective of the medium in which they are stored , relating to operations supported by the european structural and investment funds or to management and control systems . member states shall provide copies of such records , documents and metadata to the commission upon request . the powers set out in this paragraph shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national legislation . commission officials and authorised representatives shall not take part , inter alia , in home visits or the formal questioning of persons within the framework of national legislation . however , they shall have access to the information thus obtained without prejudice to the competences of national courts and in full respect of the fundamental rights of the concerned legal subjects . 3 . the commission may require a member state to take the actions necessary to ensure the effective functioning of their management and control systems or the correctness of expenditure in accordance with the fund - specific rules . deleted


### each csf fund shall support the following thematic objectives in accordance with its mission in order to contribute to the union strategy for smart , sustainable and inclusive growth : strengthening research , technological development and innovation ; enhancing access to , and use and quality of , information and communication technologies ; enhancing the competitiveness of small and medium - sized enterprises , the agricultural sector and the fisheries and aquaculture sector ; supporting the shift towards a low - carbon economy in all sectors ; promoting climate change adaptation , risk prevention and management ; protecting the environment and promoting resource efficiency ; promoting sustainable transport and removing bottlenecks in key network infrastructures ; promoting employment and supporting labour mobility ; promoting social inclusion and combating poverty ; investing in education , skills and lifelong learning ; enhancing institutional capacity and an efficient public administration . thematic objectives shall be translated into priorities specific to each csf fund and set out in the fund - specific rules . ### each european structural and investment fund , in order to contribute to the union strategy for smart , sustainable and inclusive growth as well as the fund - specific missions pursuant to their treaty - based objectives , including economic , social and territorial cohesion shall support the following thematic objectives : strengthening research , technological development and innovation ; enhancing access to , and use and quality of , information and communication technologies ; enhancing the competitiveness of small and medium - sized enterprises , the agricultural sector and the fisheries and aquaculture sector ; supporting the shift towards a low - carbon economy in all sectors ; promoting climate change adaptation , risk prevention and management ; preserving and protecting the environment and promoting resource efficiency ; promoting sustainable transport and removing bottlenecks in key network infrastructures ; promoting sustainable and quality employment and supporting labour mobility ; promoting social inclusion , combating poverty and any discrimination ; investing in education , training and vocational training for skills and lifelong learning ; enhancing institutional capacity of public authorities and stakeholders and an efficient public administration . thematic objectives shall be translated into priorities specific to each of the european structural and investment funds and set out in the fund - specific rules .


### the member states and the commission shall take appropriate steps to prevent any discrimination based on sex , racial or ethnic origin , religion or belief , disability , age or sexual orientation during the preparation and implementation of programmes . ### the member states and the commission shall take appropriate steps to promote equal opportunities , prevent any discrimination based on sex , racial or ethnic origin , religion or belief , disability , age or sexual orientation and make sure that segregation is not reproduced during the preparation and implementation of programmes while paying particular attention to those who face discrimination on multiple grounds .


### the progress report shall set out information on and assess : changes in the development needs in the member state since the adoption of the partnership contract ; progress towards achievement of the union strategy for smart , sustainable and inclusive growth , in particular in respect of the milestones set out for each programme in the performance framework and the support used for climate change objectives ; whether the actions taken to fulfil ex ante conditionalities not fulfilled at the date of adoption of the partnership contract have been implemented in accordance with the timetable established ; implementation of mechanisms to ensure coordination between the csf funds and other union and national funding instruments and with the eib ; progress towards achievement of priority areas established for cooperation ; actions taken to reinforce the capacity of the member state authorities and , where appropriate , beneficiaries to administer and use the csf funds ; actions planned and corresponding targets in the programmes to achieve a reduction in the administrative burden for beneficiaries ; the role of the partners referred in article 5 in the implementation of the partnership contract . ### the progress report shall set out information on and assess : changes in the development needs in the member state since the adoption of the partnership agreement ; progress towards achievement of the union strategy for smart , sustainable and inclusive growth , as well as of the fund - specific missions referred to in article 4 . 1 , through the contribution of the european structural and investment funds to the thematic objectives selected , and in particular in respect to the milestones set out in the performance framework for each programme , and to the support used for climate change objectives ; whether the actions taken to fulfil the applicable ex ante conditionalities set out in the partnership agreement not fulfilled at the date of adoption of the partnership agreement have been implemented in accordance with the timetable established . this only applies to the 2017 progress report ; implementation of mechanisms to ensure coordination between the european structural and invenstment funds and other union and national funding instruments and with the eib ; implementation of the integrated approach to territorial development , or a summary of the implementation of the integrated approaches based on the programmes , including progress towards achievement of priority areas established for cooperation ; where appropriate , actions taken to reinforce the capacity of the member state authorities and beneficiaries to administer and use the european structural and investment funds ; actions taken and progress achieved towards a reduction in the administrative burden for beneficiaries ; the role of the partners referred to in article 5 in the implementation of the partnership agreement ; a summary of the actions taken in relation to the application of horizontal principles and policy objectives for the implementation of the european structural and investment funds .


### the commission shall be empowered to adopt delegated acts in accordance with article 142 to provide for a european code of conduct that lays down objectives and criteria to support the implementation of partnership and to facilitate the sharing of information , experience , results and good practices among member states . ### a european code of conduct shall be provided for containing recommendations and best practices on the objectives and criteria to support the implementation of partnership and to facilitate the sharing of information , experience , results and good practices among member states . the commission shall be empowered to adopt delegated acts in accordance with article 142 to provide for this european code of conduct .


### it is necessary to evaluate the effectiveness , efficiency and impact of assistance from the csf funds in order to improve the quality of implementation and design of programmes , and to determine the impact of programmes in relation to the targets for the union strategy for smart sustainable and inclusive growth and in relation to gdp and unemployment , where relevant . the responsibilities of member states and the commission in this regard should be specified . ### it is necessary to evaluate the effectiveness , efficiency and impact of assistance from the european structural and investment funds in order to improve the quality of implementation and design of programmes , and to determine the impact of programmes in relation to the targets for the union strategy for smart sustainable and inclusive growth and in relation to gdp , regional and local needs , climate targets and unemployment and gender mainstreaming where relevant . the responsibilities of member states and the commission in this regard should be specified .


### the total amount allocated under the programme to operations located outside the programme area does not exceed 10 % of the support from the erdf , cohesion fund and emff at the level of the priority , or 3% of the support from the eafrd at the level of the programme ; ### the total amount allocated under the programme to operations located outside the programme area does not exceed 15 % of the support from the erdf , cohesion fund and emff at the level of the priority , or 5 % of the support from the eafrd at the level of the programme ;


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