### 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 .


### 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 ; ### 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 article 174 of the treaty on the functioning of the european union , and the specific challenges of outermost regions as defined in article 349 of the treaty on the functioning of the european union ;


### 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 .


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


### content of the partnership contract the partnership contract shall set out : ### content of the partnership agreement the partnership agreement shall set out :


### arrangements to ensure alignment with the union strategy for smart , sustainable and inclusive growth , including : an analysis of disparities and development needs with reference to the thematic objectives , the common strategic framework and the targets set in the country - specific recommendations under article 121 of the treaty and the relevant council recommendations adopted under article 148 of the treaty ; a summary analysis of the ex ante evaluations of the programmes justifying the selection of the thematic objectives and the indicative allocations of the csf funds ; for each thematic objective , a summary of the main results expected for each of the csf funds ; the indicative allocation of support by the union by thematic objective at national level for each of the csf funds , as well as the total indicative amount of support foreseen for climate change objectives ; the main priority areas for cooperation , taking account , where appropriate , of macro - regional and sea basin strategies ; horizontal principles and policy objectives for the implementation of the csf funds ; the list of the programmes under the erdf , the esf and the cf , except those under the european territorial cooperation goal , and of the programmes of the eafrd and the emff , with the respective indicative allocations by csf fund and by year ; ### arrangements to ensure alignment with 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 , including : an analysis of disparities , development needs , and growth potentials with reference to the thematic objectives and the territorial challenges and taking account of the national reform programme , where appropriate , and relevant country - specific recommendations adopted in accordance with article 121 of the treaty on the functioning of the european union and relevant council recommendations adopted in accordance with article 148 of the treaty on the functioning of the european union ; a summary of the ex ante evaluations of the programmes or key findings of the ex ante evaluations of the partnership agreement where undertaken by the member state at its own initiative ; selected thematic objectives , and for each of the selected thematic objectives a summary of the main results expected for each of the european structural and investment funds ; the indicative allocation of support by the union by thematic objective at national level for each of the european structural and investment funds , as well as the total indicative amount of support foreseen for climate change objectives ; deleted the application of horizontal principles and policy objectives for the implementation of the european structural and investment funds ; the list of the programmes under the erdf , the esf and the cf , except those under the european territorial cooperation goal , and of the programmes of the eafrd and the emff , with the respective indicative allocations by european structural and investment fund and by year ;


### an integrated approach to territorial development supported by the csf funds setting out : the mechanisms at national and regional level that ensure coordination between the csf funds and other union and national funding instruments and with the eib ; the arrangements to ensure an integrated approach to the use of the csf funds for the territorial development of urban , rural , coastal and fisheries areas and areas with particular territorial features , in particular the implementation arrangements for articles 28 , 29 and 99 accompanied , where appropriate , by a list of the cities to participate in the urban development platform referred to in article 8 of the erdf regulation ; ### arrangements to ensure effective implementation of the european structural and investment funds , including : the arrangements , in line with the institutional framework of the member states , that ensure coordination between the european structural and investment funds and other union and national funding instruments and with the eib ; the information required for ex ante verification of compliance with the rules on additionality as they are defined in part three of this regulation ; a summary of the assessment of the fulfilment of applicable ex ante conditionalities in accordance with article 17 and annex at national level and of the actions to be taken , the responsible bodies and the timetable for their implementation , where ex ante conditionalities are not fulfilled ; the methodology and mechanisms to ensure consistency in the functioning of the performance framework in accordance with article 19 ; an assessment of whether there is a need to reinforce the administrative capacity of the authorities involved in the management and control of the programmes and , where appropriate , beneficiaries as well as , where necessary , a summary of actions to be taken for this purpose ; a summary of the actions planned in the programmes , including indicative timetable to achieve a reduction in the administrative burden for beneficiaries .


### the commission shall assess the consistency of the partnership contract with this regulation , with the common strategic framework , and the country - specific recommendations under article 121 of the treaty and the council recommendations adopted under 148 of the treaty , taking account of the ex&#160 ; ante evaluations of the programmes , and shall make observations within three months of the date of submission of the partnership contract . the member state shall provide all necessary additional information and , where appropriate , shall revise the partnership contract . ### the commission shall assess the consistency of the partnership agreement with this regulation taking account of the national reform programme , where appropriate , and the relevant country - specific recommendations adopted in accordance with article 121 of the treaty on the functioning of the european union and relevant council recommendations adopted in accordance with article 148 of the treaty on the functioning of the european union , as well as of the ex - ante evaluations of the programmes , and shall make observations within three months of the date of submission by the member state of the partnership agreement . the member state shall provide all necessary additional information and , where appropriate , shall revise the partnership agreement .


### 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 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 . as part of its decision to adopt the partnership contract , the commission shall take account of the effective involvement of the autonomous regional territories called to enter into the partnership contract , in accordance with the institutional system of each member state . 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 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 .


### where a member state proposes an amendment to the partnership contract , the commission shall carry out an assessment in accordance with paragraph 1 and , where appropriate , shall adopt a decision , by means of implementing acts , approving the amendment . ### where a member state proposes an amendment to the elements of the partnership agreement covered by the commission’s decision as referred to in paragraph 2 , the commission shall carry out an assessment in accordance with paragraph 1 and , where appropriate , shall adopt a decision , by means of implementing acts , approving the amendment within three months of its submission by the member state .


### ex ante conditionalities shall be defined for each csf fund in the fund - specific rules . 2 . member states shall assess whether the applicable ex ante conditionalities are fulfilled . 3 . where ex ante conditionalities are not fulfilled at the date of transmission of the partnership contract , member states shall set out in the partnership contract a summary of the actions to be taken at national or regional level and the timetable for their implementation , to ensure their fulfilment not later than two years after the adoption of the partnership contract or by 31 december 2016 , whichever is earlier . 4 . member states shall set out the detailed actions relating to the fulfilment of ex ante conditionalities , including the timetable for their implementation , in the relevant programmes . 5 . the commission shall assess the information provided on the fulfilment of ex ante conditionalities in the framework of its assessment of the partnership contract and programmes . it may decide , when adopting a programme , to suspend all or part of interim payments to the programme pending the satisfactory completion of actions to fulfil an ex ante conditionality . the failure to complete actions to fulfil an ex ante conditionality by the deadline set out in the programme shall constitute a basis for suspending payments by the commission . 6 . paragraphs 1 to 5 shall not apply to programmes under the european territorial cooperation goal . ### deleted 2 . member states shall assess in accordance with their institutional and legal framework and in the context of the establishment of the partnership agreement and programmes whether the ex ante conditionalities laid down in the respective fund - specific rules and the general ex - ante conditionalities set out in annex v are applicable to the specific objectives pursued within the priorities of their programmes and whether the applicable ex ante conditionalities are fulfilled . ex ante conditionalities shall apply only to the extent and provided that the definition laid down in article 2 is complied with regarding the specific objectives pursued under the priorities of the programme . the assessment of fulfilment shall be limited to the criteria laid down in the fund - specific rules . 3 . the partnership agreement shall set out a summary of the assessment of the fulfilment of the applicable ex ante conditionalities at national level or regional level and for those which , pursuant to the assessment referred to in paragraph 2 , are not fulfilled at the date of submission of the partnership agreement , the priorities affected , the responsible bodies , actions to be taken to fulfil the ex ante conditionality , and the timetable for such actions . each programme shall , in accordance with the fund - specific rules , indicate the applicable ex ante conditionalities which , pursuant to the assessment referred to in paragraph 2 , are not fulfilled at the date of submission of the partnership agreement . member states shall fulfil these ex ante conditionalities not later than 31 december 2016 and report on their fulfilment not later than in the annual implementation report in 2017 or the progress report in 2017 . deleted 5 . the commission shall assess the consistency and the adequacy of the information provided by the member state on the fulfilment of applicable ex ante conditionalities in the framework of its assessment of the partnership agreement and / or programmes . this assessment of fulfilment shall be limited to the criteria laid down in the fund - specific rules and shall respect national and regional competences to decide on the specific and adequate policy measures including the content of strategies . the commission may decide , when adopting a programme , to suspend all or part of interim payments to the relevant priority of this programme pending the satisfactory completion of actions referred to in paragraph 3 where necessary to avoid significant prejudice to the effectiveness and efficiency of the achievement of the specific objectives of the priority concerned . the failure to complete actions to fulfil an applicable ex ante conditionality which has not been fulfilled at the date of submission of the respective programme , by the deadline set out in paragraph 3 , shall constitute a basis for suspending interim payments by the commission . 5a . the commission shall without delay lift the suspension of interim payments for a priority where a member state has completed actions relating to the fulfilment of ex ante conditionalities applicable to that programme and which had not been fulfilled at the time of the decision of the commission on the suspension . it shall also without delay lift the suspension where following an amendment of the programme related to the priority concerned the ex ante conditionality concerned is no longer applicable . 6 . paragraphs 1 to 5a shall not apply to programmes under the european territorial cooperation goal .


### paragraphs 1 to 6 shall not apply to operational programmes under the european territorial cooperation goal . ### paragraphs 1 to 6 shall not apply to operational programmes under the european territorial cooperation goal or to macro - regional development fund programmes which form part of the macro - regional cooperation goal .


### paragraphs 1 and 2 shall not apply to programmes under the european territorial cooperation goal . ### paragraphs 1 and 2 shall not apply to programmes under the european territorial cooperation goal or to macro - regional development fund programmes which form part of the macro - regional cooperation goal .


### paragraphs 1 to 6 shall not apply to operational programmes under the european territorial cooperation goal . ### paragraphs 1 to 6 shall not apply to programmes under the european territorial cooperation goal .


### the commission , in cooperation with the member states , shall undertake a review of the performance of the programmes in each member state in 2017 and 2019 , with reference to the performance framework set out in the respective partnership contract and programmes . the method for establishing the performance framework is set out in annex ii . ### the commission , in cooperation with the member states , shall undertake a review of the performance of the programmes in each member state in 2019 , with reference to the performance framework set out in the respective programmes . the method for establishing the performance framework is set out in annex ii .


### 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 .


### where the member state concerned has adopted the euro , it receives macro - financial assistance from the union under council regulation no 407 / 2010 ; ### where the member state concerned receives a loan from the union under council regulation no 407 / 2010 ;


### 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 same time as the partnership contract , with the exception of european territorial cooperation programmes and macro - regional development fund 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 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 .


### each programme shall set out a strategy for the programme ' s contribution to the union strategy for smart , sustainable and inclusive growth consistent with the common strategic framework and partnership contract . each programme shall include the arrangements to ensure effective , efficient and coordinated implementation of the csf funds and actions to achieve a reduction of administrative burden for beneficiaries . ### each programme shall set out a strategy for the programme ' s contribution to the union strategy for smart , sustainable and inclusive growth consistent with the provisions set out in this regulation , the fund - specific rules , and with the content of the partnership agreement . each programme shall include the arrangements to ensure effective , efficient and coordinated implementation of the european structural and investment funds and actions to achieve a reduction of administrative burden for beneficiaries .


### each programme shall define priorities setting out specific objectives , financial appropriations of support from the csf funds and corresponding national co - financing . ### each programme shall define priorities setting out specific objectives , financial appropriations of support from the european structural and investment funds and corresponding national co - financing , which may be public or private in accordance with fund - specific rules .


### for each csf fund , the fund - specific rules shall set out common indicators and may provide for programme - specific indicators . ### for each european structural and investment fund , the fund - specific rules shall set out common indicators and may set out provisions related to programme - specific indicators .


### each programme , except those which cover exclusively technical assistance , shall include a description of the actions to take into account the principles set out in articles 7 and 8 . ### each programme , except those which cover exclusively technical assistance , shall include a description of the actions in accordance with the fund - specific rules to take into account the principles set out in articles 5 , 7 and 8 .


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


### in accordance with the fund - specific rules , the commission shall approve each programme no later than six months following its formal submission by the member state , provided that any observations made by the commission have been satisfactorily taken into account , but not before 1 january 2014 or before adoption by the commission of a decision approving the partnership contract . ### in accordance with the fund - specific rules , the commission shall approve each programme no later than three months following its formal submission by the member state , provided that any observations made by the commission have been satisfactorily taken into account , but not before 1 january 2014 or before adoption by the commission of a decision approving the partnership contract .


### in accordance with the fund - specific rules , the commission shall approve each programme no later than six months following its formal submission by the member state , provided that any observations made by the commission have been satisfactorily taken into account , but not before 1 january 2014 or before adoption by the commission of a decision approving the partnership contract . ### in accordance with the fund - specific rules , the commission shall approve each programme no later than six months following its formal submission by the member state , provided that any observations made by the commission have been adequately taken into account , but not before 1 january 2014 or before adoption by the commission of a decision approving the partnership agreement . by derogation to the above , programmes under the european territorial cooperation goal may be approved by the commission before the adoption of the decision approving the partnership agreement .


### requests for amendment of programmes submitted by a member state shall be duly substantiated and shall in particular set out the expected impact of the changes to the programme on achieving the union strategy for smart , sustainable and inclusive growth and the specific objectives defined in the programme , taking account of the common strategic framework and the partnership contract . they shall be accompanied by the revised programme and , where appropriate , a revised partnership contract . ### requests for amendment of programmes submitted by a member state shall be duly substantiated and shall in particular set out the expected impact of the changes to the programme on achieving the union strategy for smart , sustainable and inclusive growth and the specific objectives defined in the programme , taking account of this regulation and fund - specific rules , the horizontal principles , in accordance with articles 5 , 7 and 8 as well as the partnership agreement . they shall be accompanied by the revised programme .


### 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 .


### community - led local development , which is designated as leader local development in relation to the eafrd , shall be : focused on specific sub - regional territories ; community - led , by local action groups composed of representatives of public and private local socio - economic interests , where at the decision - making level neither the public sector nor any single interest group shall represent more than 49 % of the voting rights ; carried out through integrated and multi - sectoral area - based local development strategies ; designed taking into consideration local needs and potential , and include innovative features in the local context , networking and , where appropriate , cooperation . 2 . support from the csf funds to local development shall be consistent and coordinated between the csf funds . this shall be ensured inter alia through coordinated capacity - building , selection , approval and funding of local development strategies and local development groups . 3 . where the selection committee for the local development strategies set up under article 29 determines that the implementation of the local development strategy selected requires support from more than one fund , a lead fund may be designated . 4 . where a lead fund is designated , the running costs , animation and networking activities for the local development strategy shall be financed from the lead fund only . 5 . local development supported by the csf funds shall be carried out under one or more priorities of the programme . ### community - led local development shall be supported by the eafrd , which shall be designated as leader local development and may be supported by the erdf , esf or emff . these funds are hereinafter referred to as the &#8220 ; concerned european structural and investment funds&#8221 ; . deleted deleted deleted deleted 1a . community - led local development shall be : focused on specific sub - regional areas ; community - led , by local action groups composed of representatives of public and private local socio - economic interests , where , at the decision - making level neither public authorities , as defined in accordance with national rules , nor any single interest group shall represent more than 49 % of the voting rights ; carried out through integrated and multi - sectoral area - based local development strategies ; designed taking into consideration local needs and potential , and include innovative features in the local context , networking and , where appropriate , cooperation . 2 . support from the concerned european structural and investment funds to community - led local development shall be consistent and coordinated between the concerned european structural and investment funds . this shall be ensured inter alia through coordinated capacity - building , selection , approval and funding of community - led local development strategies and local development groups . 3 . where the selection committee for the community - led local development strategies set up under article 29 determines that the implementation of the community - led local development strategy selected requires support from more than one fund , it may designate in accordance with national rules and procedures , a lead fund to support all running and animation costs under article 31 paragraphs and for the community - led local development strategy . deleted 5 . community - led local development supported by the concerned european structural and investment funds shall be carried out under one or more priorities of the relevant programme in accordance with the concerned european structural and investment funds specific rules .


### local development strategies ### community - led local development strategies


### a local development strategy shall contain at least the following elements : ### a community - led local development strategy shall contain at least the following elements :


### the financial plan of the strategy , including the planned allocation of each of the csf funds . ### the financial plan of the strategy , including the planned allocation of each of the concerned european structural and investment funds .


### member states shall define criteria for the selection of local development strategies . the fund - specific rules may set out selection criteria . ### member states shall define criteria for the selection of community - led local development strategies .


### the selection and approval of all local development strategies shall be completed by 31 december 2015 at the latest . ### the first round of selection of community - led local development strategies shall be completed within two years from the date of the approval of the partnership agreement at the latest . member states may select additional community - led local development strategies after that date but no later than by 31 december 2017 .


### 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 .


### local action groups shall design and implement the local development strategies . member states shall define the respective roles of the local action group and the authorities responsible for the implementation of the relevant programmes , for all implementation tasks relating to the strategy . 2 . the managing authority shall ensure that the local action groups either select one partner within the group as a lead partner in administrative and financial matters , or come together in a legally constituted common structure . 3 . the tasks of local action groups shall include the following : building the capacity of local actors to develop and implement operations ; drawing up a non - discriminatory and transparent selection procedure and criteria for the selection of operations , which avoid conflicts of interest , that shall ensure that at least 50% of the votes in selection decisions are from the non public sector partners , providing for the possibility of appeal against selection decisions and allowing selection by written procedure ; ensuring coherence with the local development strategy when selecting operations , by prioritising them according to their contribution to meeting the strategies ' objectives and targets ; preparing and publishing calls for proposals or an ongoing project submission procedure , including definition of selection criteria ; receiving applications for support and assessing them ; selecting operations and fixing the amount of support and , where relevant , presenting the proposals to the responsible body for final verification of eligibility before approval ; monitoring the implementation of the local development strategy and the operations supported and carrying out specific evaluation activities linked to the local development strategy . ### local action groups shall design and implement the community - led local development strategies . member states shall define the respective roles of the local action group and the authorities responsible for the implementation of the relevant programmes , for all implementation tasks relating to the strategy . 2 . the responsible managing authority or authorities shall ensure that the local action groups either select one partner within the group as a lead partner in administrative and financial matters , or come together in a legally constituted common structure . 3 . the tasks of local action groups shall include the following : building the capacity of local actors to develop and implement operations including fostering their project management capabilities ; drawing up a non - discriminatory and transparent selection procedure and objective criteria for the selection of operations , which avoid conflicts of interest , that shall ensure that at least 50% of the votes in selection decisions are partners which are not public authorities and shall allow selection by written procedure ; ensuring coherence with the community - led local development strategy when selecting operations , by prioritising them according to their contribution to meeting the strategies ' objectives and targets ; preparing and publishing calls for proposals or an ongoing project submission procedure , including definition of selection criteria ; receiving applications for support and assessing them ; selecting operations and fixing the amount of support and , where relevant , presenting the proposals to the responsible body for final verification of eligibility before approval ; monitoring the implementation of the community - led local development strategy and the operations supported and carrying out specific evaluation activities linked to the community - led local development strategy . 3a . without prejudice to paragraph 3 , the local action group may be a beneficiary and implement operations in accordance with the community - led local development strategy . 3b . in case of cooperation activities of local action groups as referred to in article 31 , the tasks set out in article 30 may be carried out by the responsible managing authority .


### support from the csf funds for local development support for local development shall include : the costs of preparatory support ; implementation of operations under the local development strategy ; preparation and implementation of cooperation activities of the local action group ; running costs and animation of the local development strategy up to the limit of 25 % of the total public expenditure incurred within the local development strategy . ### support from the european structural and investment funds for community - led local development support for community - led local development shall include : the costs of preparatory support consisting of capacity building , training and networking with a view to preparing and implementing a local development strategy . the costs may cover one or more of the following elements : training actions for local stakeholders ; studies of the area concerned ; costs related to the elaboration of the local development strategy , including consultancy costs and costs for actions related to consultations of stakeholders in view of preparation of the strategy ; administrative costs of an organisation that is applying for preparatory support during the preparation phase ; support for small pilot projects . such preparatory support shall be eligible regardless of whether the local development strategy designed by the local action group benefitting from the support will be selected for funding by the selection committee set up under article 29 . implementation of operations under the community - led local development strategy ; preparation and implementation of cooperation activities of the local action group ; running costs linked to the management of the implementation of the strategy consisting of operating costs , personnel costs , training cost , costs linked to public relations , financial costs as well as the costs linked to monitoring and evaluation of the strategy as referred to in article 30 ; animation of the community - led local development strategy in order to facilitate exchange between stakeholders to provide information and to promote the strategy and to support potential beneficiaries to develop operations and prepare applications . 1a . support for running costs and animation shall not exceed 25 % of the total public expenditure incurred within the local development strategy .


### 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 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 . ### 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 or measure . 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 . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down additional specific rules on purchase of land and on combination of technical support with financial instruments .


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


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


### implementation of certain financial instruments ### management and control of financial instruments


### as regards financial instruments referred to in article 33 , the request for payment shall include and separately disclose the total amount of support paid to the financial instrument . ### as regards financial instruments referred to in article 33 and financial instruments referred to in article 33 implemented in accordance with article 33 and , phased applications for interim payments shall be made for programme contributions paid to the financial instrument during the period of eligibility in accordance with the following conditions : the amount of the programme contribution paid to the financial instrument included in each application for interim payment submitted during the eligibility period indicated in article 55 shall not exceed 25 per cent of the total amount of programme contributions committed to the financial instrument under the relevant funding agreement , corresponding to expenditure in the meaning of article 36 , and expected to be paid during the eligibility period indicated in article 55 . applications for interim payment submitted after the eligibility period indicated in article 55 shall include the total amount of eligible expenditure in the meaning of article 36 ; each application for interim payment referred to in paragraph may include up to 25 per cent of the total amount of the national co - financing as referred to in article 33 expected to be paid to the financial instrument , or at the level of final recipients for expenditure in the meaning of article 36 , and , within the eligibility period indicated in article 55 ; subsequent applications for interim payment submitted during the eligibility period indicated in article 55 shall only be made : for the second application for interim payment , when at least 60 per cent of the amount included in the first application for interim payments has been spent as eligible expenditure in the meaning of article 36 , and ; for the third and subsequent applications for interim payment , when at least 85 per cent of the amounts included in the previous applications for interim payments have been spent as eligible expenditure in the meaning of article 36 , and ; each application for interim payment , which includes expenditure related to financial instruments , shall separately disclose the total amount of programme contributions paid to the financial instrument and the amounts paid as eligible expenditure in the meaning of article 36 , and . at closure , the application for payment of the final balance shall include the total amount of eligible expenditure as referred to in article 36 .


### at closure of a programme , the eligible expenditure of the financial instrument shall be the total amount effectively paid or , in the case of guarantee funds committed , by the financial instrument within the eligibility period indicated in article&#160 ; 55 , corresponding to : ### at closure of a programme or a programme for a macro - regional development fund , the eligible expenditure of the financial instrument shall be the total amount effectively paid or , in the case of guarantee funds committed , by the financial instrument within the eligibility period indicated in article&#160 ; 55 , corresponding to :


### at closure of a programme , the eligible expenditure of the financial instrument shall be the total amount effectively paid or , in the case of guarantee funds committed , by the financial instrument within the eligibility period indicated in article 55 , corresponding to : ### at closure of a programme , the eligible expenditure of the financial instrument shall be the total amount of programme contributions effectively paid or , in the case of guarantees committed , by the financial instrument within the eligibility period indicated in article 55 , corresponding to :


### payments to final recipients ; ### payments to final recipients , and in the cases referred to under article 32 payments to the benefit of final recipients ;


### in the case of equity - based instruments and micro - credit , capitalised management costs or fees due to be paid for a period not exceeding 5 years after the eligibility period laid down in article 55 , in respect of investments in final recipients which occurred within that eligibility period and which cannot be covered by articles 37 and 38 , may be considered as eligible expenditure when paid into an escrow account specifically set up for that purpose . ### in the case of equity - based instruments and micro - credit , capitalised management costs or fees due to be paid for a period not exceeding 5 years after the eligibility period laid down in article 55 , in respect of investments in final recipients which occurred within that eligibility period , which cannot be covered by articles 38 or 39 , may be considered as eligible expenditure when paid into an escrow account specifically set up for that purpose .


### the eligible expenditure determined in accordance with paragraphs 1 and 2 shall not exceed the sum of the : total amount of the support from the csf funds paid to the financial instrument ; and corresponding national co - financing . ### the eligible expenditure disclosed in accordance with paragraphs 1 and 2 shall not exceed the sum of the : total amount of the support from the european structural and investment funds paid for the purposes of paragraphs 1 and 2 ; and corresponding national co - financing .


### interest and other gains generated by support from the csf funds to financial instruments support from the csf funds paid to financial instruments shall be placed in interest - bearing accounts domiciled within financial institutions in member states or invested on a temporary basis according to the principle of sound financial management . 2 . interest and other gains attributable to support from the csf funds paid to financial instruments shall be used for the same purposes as the initial support from the csf funds within the same financial instrument . 3 . the managing authority shall ensure that adequate records of the use of interest and other gains are maintained . ### interest and other gains generated by support from the european structural and investment funds to financial instruments support from the european structural and investment funds paid to financial instruments shall be placed in accounts domiciled within financial institutions in member states and be invested on a temporary basis in accordance with the principles of sound financial management . 2 . interest and other gains attributable to support from the european structural and investment funds paid to financial instruments shall be used for the same purposes , including the reimbursement of management costs incurred or payment of management fees of the financial instrument in accordance with article 36 , and expenditure paid in line with article 36 , as the initial support from the european structural and investment funds either within the same financial instrument , or following the winding up of the financial instrument , in other financial instruments or forms of support in accordance with the specific objectives set out under a priority or measure , until the end of the eligibility period . 3 . the managing authority shall ensure that adequate records of the use of interest and other gains are maintained .


### re - use of resources attributable to the support from the csf funds until closure of the programme ### re - use of resources attributable to the support from the european structural and investment funds until the end of the eligibility period


### 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 .


### reimbursement of management costs incurred and payment of management fees of the financial instrument ; ### where applicable , reimbursement of management costs incurred and payment of management fees of the financial instrument ;


### preferential remuneration of investors operating under the market economy investor principle , who provide counterpart resources to the support from the csf funds to the financial instrument or who co - invest at the level of final recipients ; ### where applicable , preferential remuneration of private investors , or public investors operating under the market economy principle , who provide counterpart resources to the support from the european structural and investment funds to the financial instrument or who co - invest at the level of final recipients ; the need and the level for preferential remuneration pursuant to paragraph shall be established in the ex ante assessment . the preferential remuneration shall not exceed what is necessary to create the incentives for attracting private counterpart resources and shall not over compensate private investors , or public investors operating under the market economy principle . the alignment of interest shall be ensured through an appropriate sharing of risk and profit and must be carried out on a normal commercial basis and be compatible with eu state aid rules .


### 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 or programme for a macro - regional development fund for a period of at least 10 years after the closure of the programme or programme for a macro - regional development fund .


### use of legacy resources after 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 10 years after the closure of the programme . ### use of resources after the end of the eligibility period member states shall adopt the necessary measures to ensure that resources paid back to financial instruments , including capital repayments and gains and other earnings or yields generated during a period of at least 10 years after the end of the eligibility period , which are attributable to the support from the european structural and invenstment funds to financial instruments pursuant to article 32 , are used in accordance with the aims of the programme or programmes , either within the same financial instrument or , following the exit of these resources from the financial instrument , in other financial instruments in both cases provided that an assessment of market conditions demonstrates a continuing need for such investment or in other forms of support .


### report on implementation of financial instruments the managing authority shall send to the commission a specific report covering the operations comprising financial instruments as an annex to the annual implementation report . 2 . the report referred to in paragraph 1 shall include , for each financial instrument , the following information : identification of the programme and of the priority from which support from the csf funds is provided ; description of the financial instrument and implementation arrangements ; identification of the bodies to whom implementation tasks have been entrusted ; total amount of support by programme and priority or measure to the financial instrument included in requests for payment submitted to the commission ; total amount of support paid or committed in guarantee contracts by the financial instrument to the final recipients by programme and priority or measure included in requests for payment submitted to the commission ; revenues of , and repayments to , the financial instrument ; multiplier effect of investments made by the financial instrument and value of investments and participations ; contribution of the financial instrument to the achievement of the indicators of the programme and of the priority concerned . 3 . the commission shall adopt , by means of implementing act , in accordance with the examination procedure referred to in article 143 , the uniform conditions concerning the monitoring and provision of monitoring information to the commission , including in respect of financial instruments referred to in article 33 . ### report on implementation of financial instruments the managing authority shall send to the commission a specific report covering the operations comprising financial instruments as an annex to the annual implementation report . 2 . the report referred to in paragraph 1 shall include , for each financial instrument , the following information : identification of the programme and of the priority or measure from which support from the european structural and investment funds is provided ; description of the financial instrument and implementation arrangements ; identification of the bodies implementing financial instruments , and the bodies implementing funds of funds where applicable , as referred to under articles 33 , 33 , and , and the financial intermediaries referred to under article 33 ; total amount of programme contributions by priority or measure paid to the financial instrument ; total amount of support paid to the final recipients or to the benefit of final recipients , or committed in guarantee contracts by the financial instrument for investments in final recipients , as well as management costs incurred or management fees paid , by programme and priority or measure ; the performance of the financial instrument including progress in its set - up and in selection of bodies implementing the financial instrument ; interest and other gains generated by support from the european structural and investment funds to the financial instrument , cumulative amounts of programme resources paid back to financial instruments from investments or from the release of resources committed , 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 ; progress in achieving the expected leverage effect of investments made by the financial instrument and value of investments and participations ; the value of equity investments , with respect to previous years ; contribution of the financial instrument to the achievement of the indicators of the priority or measure concerned . the information in and may be included only in the annex to the annual implementation reports submitted in 2017 and 2019 as well as in the final report . the monitoring obligations as set out in and shall not be applied at the level of final . 2a . the commission shall adopt , by means of implementing act in accordance with the examination procedure laid down in article 143 , arrangements for uniform conditions concerning the models to be used when monitoring and reporting on financial instruments and on the reporting of monitoring information to the commission . 2b . each year , starting in 2016 , the commission shall within 6 months of the deadline for the submission of the annual implementation reports referred to in article 101 for the erdf , esf and the cf , article 82 of the eafrd regulation for the eafrd , and the relevant provisions of funds - specific rules for the emff provide summaries of the data on the progress made in financing and implementing the financial instruments , sent by the managing authorities in accordance with this article . these summaries shall be transmitted to the european parliament and the council and shall be made public . 3 . the commission shall ensure s uniform conditions for the implementation of this article by adopting , by means of implementing acts , in accordance with the examination procedure laid down in article 143 , the models to be used when reporting on financial instruments to the commission .


### within three months of the date of notification to the member state of the decision adopting a programme , the member state shall set up a committee to monitor implementation of the programme , in agreement with the managing authority . a member state may set up a single monitoring committee for programmes co - financed by the csf funds . ### within three months of the date of notification to the member state of the decision adopting a programme , the member state shall set up a committee , in accordance with the institutional , legal and financial framework of the member state concerned , to monitor implementation of the programme , in agreement with the managing authority . a member state may set up a single monitoring committee for more than one programme co - financed by the european structural and invenstment funds .


### each monitoring committee shall draw up and adopt its rules of procedure . ### each monitoring committee shall draw up and adopt its rules of procedure within the institutional , legal and financial framework of the member state concerned .


### the monitoring committee shall be composed of representatives of the managing authority and intermediate bodies and of representatives of the partners . each member of the monitoring committee shall have a voting right . the monitoring committee of a programme under the european territorial cooperation goal shall also include representatives of any third country participating in that programme . ### the composition of the monitoring committee shall be decided by the member state , provided that the monitoring committee is composed of the relevant member state authorities and intermediate bodies and of representatives of the partners referred to in article 5 . representatives of the partners shall be delegated to be part of the monitoring committee by the respective partners through transparent processes . the monitoring committee may decide that each member of the monitoring committee may have a voting right . the monitoring committee of a programme under the european territorial cooperation goal shall also include representatives of any third country participating in that programme . the monitoring committee may include representatives of the egtc carrying out activities related to the programme within the programme area . the composition of the monitoring committee of a programme under the european territorial goal shall be agreed by the member states participating in the programme and third countries , when they have accepted the invitation to participate in the cooperation programme . it shall include relevant representatives of member states and of any third country referred to in the preceding sentence .


### the monitoring committee shall meet at least once a year and shall review implementation of the programme and progress towards achieving its objectives . in doing so , it shall have regard to the financial data , common and programme - specific indicators , including changes in result indicators and progress towards quantified target values , and the milestones defined in the performance framework . 2 . the monitoring committee shall examine in detail all issues that affect the performance of the programme . 3 . the monitoring committee shall be consulted and issue an opinion on any amendment of the programme proposed by the managing authority . 4 . the monitoring committee may issue recommendations to the managing authority regarding implementation of the programme and its evaluation . it shall monitor actions taken as a result of its recommendations . ### the monitoring committee shall meet at least once a year and shall review implementation of the programme and progress towards achieving its objectives . in doing so , it shall have regard to the financial data , common and programme - specific indicators , including changes in the value of result indicators and progress towards quantified target values , and the milestones defined in the performance framework referred to in article 19 , and , where relevant , the results of qualitative analyses . 2 . the monitoring committee shall examine all issues that affect the performance of the programme , including the conclusions of the performance reviews . 3 . the monitoring committee shall be consulted and shall , if it considers appropriate , give an opinion on any amendment of the programme proposed by the managing authority . 4 . the monitoring committee may make observations to the managing authority regarding implementation of the programme and its evaluation including actions related to the reduction of administrative burden on beneficiaries . it shall monitor actions taken as a result of its observations .


### the member state shall submit a final report on implementation of the programme by 30 september 2023 for the erdf , esf and cohesion fund and an annual implementation report for the eafrd and emff . ### the member state shall submit a final report on implementation of the programme by 31 december 2023 for the erdf , esf and cohesion fund and an annual implementation report for the eafrd and emff .


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


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


### the commission shall examine the annual implementation report and inform the member state of its observations within two months of the receipt of the annual implementation report and within 5 months of receipt of the final report . where the commission does not provide observations within these deadlines , the reports shall be deemed to be accepted . ### the commission shall examine the annual and final implementation report and inform the member state of its observations within two months of the receipt of the annual implementation report and within 5 months of receipt of the final implementation report . where the commission does not provide observations within these deadlines , the reports shall be deemed to be accepted .


### 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 make observations to the managing authority concerning issues which significantly affect the implementation of the programme . where such observations are made , the managing authority shall provide all necessary information with regard to those observations and , where appropriate , inform the commission within three months of measures taken .


### the annual review meeting shall be chaired by the commission . ### the annual review meeting shall be chaired by the commission or , if the member state so requests , co - chaired by the member state and the commission .


### the member state shall ensure that appropriate follow - up is given to any comments of the commission following the meeting . ### the member state shall ensure that appropriate follow - up is given to comments of the commission following the meeting concerning issues , which significantly affect the implementation of the programme and where appropriate , inform the commission within three months of measures taken .


### progress report ### progress report and strategic report


### by 30 june 2017 and by 30 june 2019 , the member state shall submit to the commission a progress report on implementation of the partnership contract as at 31 december 2016 and 31 december 2018 respectively . ### by 31 august 2017 and by 31 august 2019 , the member state shall submit to the commission a progress report on implementation of the partnership agreement as at 31 december 2016 and 31 december 2018 respectively .


### 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 .


### where the commission determines , within three months of the date of submission of the progress report that the information submitted is incomplete or unclear , it may request additional information from the member state . the member state shall provide to the commission the information requested within three months and , where appropriate , shall revise the progress report accordingly . ### where the commission determines , within three months of the date of submission of the progress report that the information submitted is incomplete or unclear , it may request additional information from the member state , or group of member states that have established a macro - regional development fund . the member state , or the group of member states that have established a macro - regional development fund , shall provide to the commission the information requested within three months and , where appropriate , shall revise the progress report accordingly .


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