### where the commission considers it to be in the interest of the union , it may at any time , on its own initiative or upon application of interested parties or a member state , may initiate an external procurement investigation into alleged restrictive procurement measures . ### the commission may at any time , on its own initiative or upon application of interested parties , contracting authority / entity or a member state , may initiate an external procurement investigation into alleged restrictive procurement measures .


### by 1 january 2017 and at least every three years after the entry into force of this regulation , the commission shall submit a report to the european parliament and the council on the application of this regulation and on progress made in international negotiations regarding access for eu economic operators to public contract award procedures in third countries undertaken under this regulation . to this effect , member states shall upon request provide the commission with appropriate information . ### at least every three years after the entry into force of this regulation , the commission shall submit a report to the european parliament and the council on the application of this regulation and on progress made in international negotiations regarding access for eu economic operators to public contract award procedures in third countries undertaken under this regulation . to this effect , member states shall upon request provide the commission with appropriate information . when the commission submits its second report , it shall also submit to the european parliament and the council a legislative proposal for an amended regulation or else set out the reasons why in its view no changes are needed . should the commission not comply with this obligation , the regulation will cease to apply at the end of the second year following the submission of the second report .


### where the commission considers it to be in the interest of the union , it may at any time , on its own initiative or upon application of interested parties or a member state , may initiate an external procurement investigation into alleged restrictive procurement measures . ### the commission shall , upon application of interested parties , a contracting authority / entity or member state , initiate an external investigation into an alleged lack of substantial reciprocity as regards procurement . should the commission decline to initiate an investigation , it shall justify its decision to the member state , interested party or the contracting entity that submitted the application .


### upon request of contracting authorities / entities the commission shall assess whether to approve , for contracts with an estimated value equal or above eur 5 . 000 . 000 exclusive of value - added tax the exclusion from procedures for the award of contracts tenders comprising goods or services originating outside the union , if the value of the non - covered goods or services exceeds 50 % of the total value of the goods or services constituting the tender , under the following conditions . ### upon request of contracting authorities / entities the commission shall assess whether to approve , for contracts with an estimated value equal or above eur 5 . 000 . 000 exclusive of value - added tax the exclusion from procedures for the award of contracts tenders comprising goods or services originating outside the union , if the value of the non - covered goods or services exceeds 50 % of the total value of the goods or services constituting the tender , under the following conditions . where a contracting authority / entity intends to request the exclusion from procedures for the award of contracts , it shall notify its intention to the european commission . whenever the commission receives such a notification , it should automatically launch an external procurement investigation as set out in article 8 .


### where an agreement referred to in point does not exist and the third country maintains restrictive procurement measures leading to a lack of substantial reciprocity in market opening between the union and the third country concerned . ### where an agreement referred to in point does not exist and the third country maintains restrictive procurement measures leading to a lack of substantial reciprocity in market opening between the union and the third country concerned , notably where those restrictive measures are detrimental to the eu ' s industrial policy .


### where it is found in an investigation pursuant to article 8 , and after following the procedure foreseen in article 9 , that restrictive procurement measures adopted or maintained by that third country leads to an lack of substantial reciprocity in market opening between the union and the third country as referred to in article 6 , the commission may adopt implementing acts to temporarily limit the access of non - covered goods and services originating in a third country . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 17 . ### where it is found in an investigation pursuant to article 8 , and after following the procedure foreseen in article 9 , that restrictive procurement measures adopted or maintained by that third country leads to an lack of substantial reciprocity in market opening between the union and the third country as referred to in article 6 , the commission may adopt implementing acts to temporarily limit the access of non - covered goods and services originating in a third country for five years , which can be extended for another five years . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 17 .


### where , after the initiation of a consultation , it appears that the most appropriate means to end a restrictive procurement practice is the conclusion of an international agreement , negotiations shall be carried out in accordance with the provisions of articles 207 and 218 of the treaty on the functioning of the european union . if a country has engaged in substantive negotiations with the european union concerning market access in the field of public procurement , the commission may adopt an implementing act providing that goods and services from that country cannot be excluded from procedures for the award of contracts pursuant to article 6 . ### where , after the initiation of a consultation , it appears that the most appropriate means to end a restrictive procurement practice is the conclusion of an international agreement , negotiations shall be carried out in accordance with the provisions of articles 207 and 218 of the treaty on the functioning of the european union .


### when , after the initiation of a consultation , the country concerned takes satisfactory remedial / corrective measures , but without undertaking new market access commitments , the commission may suspend or terminate the consultation . ### when , after the initiation of a consultation , the country concerned takes satisfactory remedial / corrective measures , but without undertaking new market access commitments , the commission may suspend or terminate the consultation or invite the country concerned to enter into negotiations under article 9 .


### articles 58 and 59 of directive 2004 / 17 / ec shall be repealed with effect from the entry into force of this regulation . ### on entry into force of this regulation , the commission shall , under article 15 thereof establish whether articles 58 and 59 of directive 2004 / 17 / ec must be repealed .


### such measures may entail the mandatory exclusion of certain third - country goods and services from public procurement procedures in the european union , or may subject tenders made up of goods or services originating in that country to a mandatory price penalty . to avoid circumvention of these measures , it may also be necessary to exclude certain foreign - controlled or owned juridical persons established in the european union , that are not engaged in substantive business operations such that it has a direct and effective link with the economy of a member state concerned . appropriate measures should not be disproportionate to the restrictive procurement practices to which they respond . ### such measures may entail the mandatory exclusion of certain third - country goods and services from public procurement procedures in the european union , or may subject tenders made up of goods or services originating in that country to a mandatory price penalty . to avoid circumvention of these measures , it may also be necessary to exclude certain foreign - controlled or owned juridical persons established in the european union , that are not engaged in substantive business operations such that it has a direct and effective link with the economy of a member state concerned . appropriate measures should not be disproportionate to the restrictive procurement practices to which they respond , and should apply for a period of five years , which can be extended for another five years .


### in view of the greater difficulty for contracting authorities / entities to assess , in the context of tenders comprising goods and / or services originating outside the european union , in which the value of the non - covered goods or services exceeds 50 % of the total value of these goods or services , the explanations of tenderers it is appropriate to provide for an increased transparency in the treatment of abnormally low tenders . in addition to the rules provided by article 69 of the directive on public procurement and article 79 of the directive on procurement by entities operating in the water , energy , transport and postal services sectors the contracting authority / entity that intends to accept such an abnormally low tender , should inform the other tenderers of this in writing including the reasons for the abnormally low character of the price or costs charged . this allows these tenderers to contribute to a more accurate assessment as to whether the successful tenderer will be able to fully perform the contract under the conditions spelled out in the tender documentation . therefore , this additional information would achieve a more level playing field on the eu public procurement market . ### in view of the greater difficulty for contracting authorities / entities to assess , in the context of tenders comprising goods and / or services originating outside the european union , in which the value of the non - covered goods or services exceeds 50 % of the total value of these goods or services , the explanations of tenderers it is appropriate to provide for an increased transparency in the treatment of abnormally low tenders . tenders that appear abnormally low in relation to the works , supplies or services might be based on technically , economically or legally unsound assumptions or practices . in addition to the rules provided by article 69 of directive 20xx / xxx / eu of the european parliament and of the council13a and article 79 of directive 20xx / xxx / eu of the european parliament and of the council13b the contracting authority / entity that intends to accept such an abnormally low tender , should inform the other tenderers of this in writing including the reasons for the abnormally low character of the price or costs charged . where the tenderer cannot provide a sufficient explanation , the contracting authority should be entitled to reject the tender . this allows these tenderers to contribute to a more accurate assessment as to whether the successful tenderer will be able to fully perform the contract under the conditions spelled out in the tender documentation . therefore , this additional information would achieve a more level playing field on the eu public procurement market . _________________ 13a directive 20xx / xxx / eu of the european parliament and of the council on public procurement ) . 13b directive 20xx / xxx / eu of the european parliament and of the council on procurement by entities operating in the water , energy , transport and postal services sectors ) .


### where it is found in an investigation pursuant to article 8 , and after following the procedure foreseen in article 9 , that restrictive procurement measures adopted or maintained by that third country leads to an lack of substantial reciprocity in market opening between the union and the third country as referred to in article 6 , the commission may adopt implementing acts to temporarily limit the access of non - covered goods and services originating in a third country . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 17 . ### where it is found in an investigation pursuant to article 8 , and after following the procedure foreseen in article 9 , that restrictive procurement measures adopted or maintained by that third country leads to an lack of substantial reciprocity in market opening between the union and the third country as referred to in article 6b , the commission shall adopt implementing acts to temporarily limit the access of non - covered goods and services originating in a third country . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 17 .


### the biennal report shall contain information relating to the previous year on the measures financed , the results of monitoring and evaluation exercises , the involvement of the relevant partners , and the implementation of budgetary commitments and of payments appropriations . it shall assess the results of the union ' s financial assistance , using as far as possible , specific and measurable indicators of its role in meeting the objectives of the instruments . ### the biennial report shall contain information relating to the two previous years on the measures financed , the results of monitoring and evaluation exercises , the involvement of the relevant partners , and the implementation of budgetary commitments and of payments appropriations . it shall assess the results of the union ' s financial assistance , using as far as possible , specific and measurable indicators of its role in meeting the objectives of the instruments , including economic development and human rights .


### the biennal report shall contain information relating to the previous year on the measures financed , the results of monitoring and evaluation exercises , the involvement of the relevant partners , and the implementation of budgetary commitments and of payments appropriations . it shall assess the results of the union ' s financial assistance , using as far as possible , specific and measurable indicators of its role in meeting the objectives of the instruments . ### the biennial report shall contain information relating to the previous year on the measures financed , the results of monitoring and evaluation exercises , the involvement of the relevant partners , and the implementation of budgetary commitments and of payments appropriations . it shall assess the results of the union ' s financial assistance , using as far as possible , specific and measurable indicators of both a quantitative and a qualitative nature to assess its role in meeting all the objectives of the instruments , and covering all relevant aspects of the instruments .


### initiatives aimed at widening awareness and facilitating access to funding under horizon 2020 , in particular for those regions or types of participant that are underrepresented ; ### initiatives aimed at widening awareness and facilitating access to funding under horizon 2020 , in particular for those regions or types of participant that are underrepresented , such as researchers from developing countries and other third countries ;


### integrated projects referred to in article 18 point shall involve , where appropriate , stakeholders and promote , when possible , the coordination with and mobilisation of other union funding sources . ### integrated projects referred to in article 18 point shall be accessible to and involve , where appropriate , stakeholders and promote the coordination with and mobilisation of other union funding sources .


### vat shall not be considered an eligible cost for projects referred to in article 18 . ### vat shall be considered an eligible cost for projects referred to in article 18 provided that it is paid by the final beneficiary , in accordance with article 13 of directive 2006 / 112 / ec , and that it cannot be recovered under applicable national vat law . any application for eligibility must include the appropriate supporting documents from the competent auditing or certification authorities in the member states .


### in accordance with their respective responsibilities , the commission and the member states shall ensure coordination between the life programme and the european regional development fund , the european social fund , the cohesion fund , the european agricultural fund for rural development , and the european maritime and fisheries fund , in order to create synergies , particularly in the context of integrated projects referred to in article 18 point , and to support the use of solutions , methods and approaches developed under the life programme . at union level , coordination shall take place within the common strategic framework referred to in article 10 of regulation no… . . ### in accordance with their respective responsibilities , the commission and the member states shall ensure coordination between the life programme and the european regional development fund , the european social fund , the cohesion fund , the european agricultural fund for rural development , and the european maritime and fisheries fund , in order to create synergies , particularly in the context of integrated projects referred to in article 18 point and carried out as local development projects run by local stakeholders and under local development strategies referred to in articles 28 and 29 of regulation no . . . . , and to support the use of solutions , methods and approaches developed under the life programme . at union level , coordination shall take place within the common strategic framework referred to in article 10 of regulation no… . . in their partnership contracts , as referred to in article 14 of regulation no xxx / xxx , the member states must state the mechanisms which will enable coordination at national and regional level between the life programme and the other funds referred to in regulation no xxx / xxxx .


### in order to stimulate coordination between the member states and the infrastructure managers , an appropriate governance structure for each freight corridor should be established , taking account of the need to avoid duplication with already existing governance structures ; ### in order to stimulate coordination between the member states , the infrastructure managers and railway undertakings , an appropriate governance structure for each freight corridor should be established , taking account of the need to avoid duplication with already existing governance structures ;


### the member states referred to in annex i shall establish at the latest three years after entry into force of this regulation the freight corridors along the principal routes set out in that annex . the member states concerned shall inform the commission about the establishment of the freight corridors . ### the member states referred to in annex i shall establish at the latest two years after entry into force of this regulation the freight corridors along the principal routes set out in that annex . the member states concerned shall inform the commission about the establishment of the freight corridors .


### the management board for a freight corridor shall designate or establish a joint body and / or an information system through collaboration between infrastructure managers offering applicants the opportunity to request , in a single place and a single operation , infrastructure capacity for freight trains crossing at least one border along the freight corridor . ### the management board shall require each national infrastructure manager involved in a corridor to designate or establish a one - stop shop as defined in article 2 for receiving and replying to requests for train paths for freight trains crossing at least one border along the freight corridor . the infrastructure managers involved in a freight corridor shall provide the necessary information in order to deal with international train path requests in line with article 7 .


### under this regulation , the union should support the implementation of the “europe 2020” strategy , in particular objectives relating to climate change , the transition to a greener economy and resource efficiency , trade and investment , business and regulatory cooperation with third countries , and should promote public diplomacy , education / academic cooperation and outreach activities . ### under this regulation , the union should support the implementation of the “europe 2020” strategy , in particular objectives relating to climate change , the transition to a greener economy and resource efficiency , science , research and innovation , trade and investment , business and regulatory cooperation with third countries and better market access for european companies , and should promote public diplomacy , education / academic cooperation and outreach activities .


### ' undertaking active in the extractive industry ' means an undertaking with any activity involving the exploration , discovery , development , and extraction of minerals , oil and natural gas deposits , as referred to in section b - divisions 05 to 08 of annex i to regulation no 1893 / 2006 of the european parliament and of the council . ### ' undertaking active in the extractive industry ' means the highest - level parent company publishing accounts within the union , where the group of companies for which that parent company prepares consolidated financial statements includes subsidiary companies , branches , permanent establishments , joint ventures and associate undertakings engaging in any activity involving the exploration , discovery , development , extraction , processing , export or transportation of , or any significant activity related to , minerals , oil and natural gas deposits , as referred to in section b - divisions 05 to 08 of annex i to regulation no 1893 / 2006 of the european parliament and of the council .


### the use of fluorinated greenhouse gases , or of mixtures that contain fluorinated greenhouse gases , with a global warming potential of 2500 or more , to service or maintain refrigeration equipment with a charge size equivalent to 5 tonnes of co2 or more , shall be prohibited from 1 january 2020 . ### the use of fluorinated greenhouse gases , or of mixtures that contain fluorinated greenhouse gases , with a global warming potential of 2500 or more , to service or maintain refrigeration equipment with a charge size equivalent to 50 tonnes of co2 or more , shall be prohibited from 1 january 2020 .


### the use of fluorinated greenhouse gases , or of mixtures that contain fluorinated greenhouse gases , with a global warming potential of 2500 or more , to service or maintain refrigeration equipment with a charge size equivalent to 5 tonnes of co2 or more , shall be prohibited from 1 january 2020 . ### the use of fluorinated greenhouse gases , or of mixtures that contain fluorinated greenhouse gases , with a global warming potential of 2500 or more , to service or maintain refrigeration equipment with a charge size equivalent to 50 tonnes of co2 or more , shall be prohibited from 1 january 2020 . this provision shall not apply to reclaimed fluorinated greenhouse gases with a global warming potential of 2500 or more used for the maintenance and servicing of existing refrigeration equipment . such reclaimed gases should be properly labelled in accordance with article 10 . this provision shall not apply to recycled fluorinated greenhouse gases with a global warming potential of 2500 or more used for the maintenance and servicing of existing refrigeration equipment provided they have been recovered from such equipment . such recycled gases may only be used by the undertaking which carries out their recovery as part of maintenance and servicing or the undertaking for which the recovery was carried out as part of maintenance and servicing .


### the equipment shall be charged where it is intended to be used , by persons certified in accordance with article 8 . ### with the exception of the equipment referred to in article 3 , the equipment shall be charged where it is intended to be used , by persons certified in accordance with article 8 .


### to ensure that beneficiaries receive the support as soon as possible and to reinforce the assurance for the commission it is appropriate to require that payment applications include only expenditure for which the support has been paid to beneficiaries . pre - financing each year should be foreseen to ensure that member state have sufficient means to operate under such arrangements . such pre - financing should be cleared each year with the clearance of accounts . ### to ensure that beneficiaries receive the support as soon as possible and to reinforce the assurance for the commission it is appropriate to require that payment applications include only expenditure for which the support has been paid to beneficiaries . pre - financing each year should be foreseen to ensure that member state have sufficient means to operate under such arrangements . such pre - financing should be in accordance with the procedures established in this regulation .


### the commission shall decommit any part of the amount calculated in accordance with the second subparagraph in an operational programme that has not been used for payment of the initial and annual pre - financing , interim payments and annual balance by 31 december of the second financial year following the year of budget commitment under the operational programme or for which a payment application drawn up in accordance with article 121 has not been submitted in accordance with article 126 . for the purposes of the decommitment , the commission shall calculate the amount by adding one sixth of the annual budget commitment related to the 2014 total annual contribution to each of the 2015 to 2020 budget commitments . 2 . by way of derogation from the first subparagraph of paragraph 1 , the deadlines for decommitment shall not apply to the annual budget commitment related to the 2014 total annual contribution . 3 . if the first annual budget commitment is related to the 2015 total annual contribution , by way of derogation from paragraph 1 , the deadlines for decommitment shall not apply to the annual budget commitment related to the total annual contribution of 2015 . in such cases , the commission shall calculate the amount under the first sub - paragraph of paragraph 1 by adding one fifth of the annual budget commitment related to the 2015 total amount contribution to each of the 2016 to 2020 budget commitments . 4 . that part of commitments still open on 31 december 2022 shall be decommitted if any of the documents required under article 130 has not been submitted to the commission by 30 september 2023 . ### the commission shall decommit any part of the amount calculated in accordance with the second subparagraph in an operational programme that has not been used for payment of the initial and annual pre - financing and interim payments by 31 december of the third financial year following the year of budget commitment under the operational programme or for which a payment application drawn up in accordance with article 121 has not been submitted in accordance with article 126 . deleted deleted deleted 4 . that part of commitments still open on 31 december 2023 shall be decommitted if any of the documents required under article 133 has not been submitted to the commission by the deadline set out in article 133 .


### 0 , 2% of the erdf resources for the investment for growth and jobs goal shall be allocated to innovative actions at the initiative of the commission in the area of sustainable urban development . ### eur xxxx of the structural funds resources for the investment for growth and jobs goal will be allocated to innovative actions at the initiative of the commission in the area of sustainable urban development .


### by 31 january , 30 april , 31 july and 31 october , the managing authority shall transmit electronically to the commission for monitoring purposes , for each operational programme and by priority axis : the total and public eligible cost of the operations and the number of operations selected for support ; the total and public eligible cost of contracts or other legal commitments entered into by beneficiaries in implementation of operations selected for support ; the total eligible expenditure declared by beneficiaries to the managing authority . 2 . in addition , the transmission on 31 january shall contain the above data broken down by category of intervention . this transmission shall be considered to fulfil the requirement for the submission of financial data referred to in article 44 . 3 . a forecast of the amount for which member states expect to submit payment applications for the current financial year and the subsequent financial year shall accompany the transmissions to be made by 31 january and 31 july . 4 . the cut - off date for the data submitted under this article shall be the end of the month preceding the month of submission . ### by 31 january , 31 july and 31 october , the member state shall transmit electronically to the commission for monitoring purposes , for each operational programme and by priority axis : the total and public eligible cost of the operations and the number of operations selected for support ; deleted the total eligible expenditure declared by beneficiaries to the managing authority . 2 . in addition , the transmission made by 31 january shall contain the above data broken down by category of intervention . this transmission shall be considered to fulfil the requirement for the submission of financial data referred to in article 44 . 3 . a forecast of the amount for which member states expect to submit payment applications for the current financial year and the subsequent financial year shall accompany the transmissions to be made by 31 january and 31 july . 4 . the cut - off date for the data submitted under this article shall be the end of the month preceding the month of submission . 4a . the commission shall adopt , by means of implementing act in accordance with the examination procedure laid down in article 143 , uniform conditions concerning the model to be used when submitting the financial data to the commission for monitoring purposes .


### a performance framework should be defined for each programme with a view to monitoring progress towards the objectives and targets set for each programme over the course of the programming period . the commission should undertake a performance review in cooperation with the member states in 2017 and 2019 . a performance reserve should be foreseen and allocated in 2019 where milestones set in the performance framework have been attained . due to their diversity and multi - country character , there should be no performance reserve for ' european territorial cooperation ' programmes . in cases where the shortfall in the achievement of milestones or targets is significant , the commission should be able to suspend payments to the programme or , at the end of the programming period , apply financial corrections , in order to ensure that the union budget is not used in a wasteful or inefficient way . ### a performance framework based on positive incentives should be defined for each programme with a view to monitoring progress towards the objectives and targets set for each programme over the course of the programming period . the commission should undertake a performance review in cooperation with the member states that require it , in 2017 and 2019 . a performance reserve should be foreseen and allocated in 2019 where milestones set in the performance framework have been attained . due to their diversity and multi - country character , there should be no performance reserve for ' european territorial cooperation ' programmes .


### 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 ;


### 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 .


### the payment deadline for an interim payment claim may be interrupted by the authorising officer by delegation within the meaning of the financial regulation for a maximum period of nine months if : following information provided by a national or union audit body , there is evidence to suggest a significant deficiency in the functioning of the management and control system ; the authorising officer by delegation has to carry out additional verifications following information coming to his attention alerting him that expenditure in a request for payment is linked to an irregularity having serious financial consequences ; there is a failure to submit one of the documents required under article 75 . the fund - specific rules for the emff may lay down additional basis for interruption of payments where a member state has failed to comply with its obligations under the common fisheries policy . ### the payment deadline for an interim payment claim may be interrupted by the authorising officer by delegation within the meaning of the financial regulation for a maximum period of six months if : following information provided by a national or union audit body , there is a clear evidence to suggest a significant deficiency in the functioning of the management and control system ; the authorising officer by delegation has to carry out additional verifications following information coming to his attention alerting him that expenditure in a request for payment is linked to an irregularity having serious financial consequences ; there is a failure to submit one of the documents required under article 59 of the financial regulation . the member state may agree to an extension of the interruption period for another 3 months . deleted


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


### pre - financing shall be used only for making payments to beneficiaries in the implementation of the programme . it shall be made available without delay to the responsible body for this purpose . ### initial pre - financing shall be used only for payments to beneficiaries in the implementation of the programme . it shall be made available without delay to the responsible body for this purpose .


### an operational programme shall consist of priority axes . a priority axis shall concern one fund for a category of region and shall correspond , without prejudice to article 52 , to a thematic objective and comprise one or more investment priorities of that thematic objective , in accordance with the fund - specific rules . for the esf , a priority axis may combine investment priorities from different thematic objectives set out in article 9 , , and in order to facilitate their contribution to other priority axes , in duly justified circumstances . ### an operational programme shall consist of priority axes . a priority axis shall concern one fund and one category of region , except for the cohesion fund , and shall correspond , without prejudice to article 52 , to a thematic objective and comprise one or more investment priorities of that thematic objective , in accordance with the fund - specific rules . where appropriate and in order to increase the impact and effectiveness in a thematically coherent integrated approach , a priority axis may : concern more than one category of region ; combine one or more complementary investment priorities from the erdf , cf and esf under one thematic objective ; in duly justified cases combine one or more complementary investment priorities from different thematic objectives in order to achieve their maximum contribution to priority axis ; for the esf combine investment priorities from different thematic objectives set out in article 9 , , and in order to facilitate their contribution to other priority axes . member states may combine two or more of the options to .


### each member state shall designate an information and communication officer to coordinate information and communication actions in relation to one or several funds and shall inform the commission accordingly . 2 . the information and communication officer shall coordinate and chair meetings of a national network of funds ' communicators , including relevant european territorial cooperation programmes , the creation and maintenance of the website or website portal referred to in annex vi and the obligation to provide an overview about communication measures undertaken at national level . 3 . each managing authority shall designate one person to be responsible for information and communication at operational programme level and shall inform the commission of those designated . 4 . union networks comprising the members designated by the member states and the managing authorities shall be set up by the commission to ensure exchange on the results of the implementation of the communication strategies , the exchange of experience in implementing the information and communication measures , and the exchange of good practices . ### each member state shall designate an information and communication officer to coordinate information and communication actions in relation to one or several funds , including relevant european territorial cooperation programmes , and shall inform the commission accordingly . 2 . the information and communication officer shall be responsible for the coordination of national network of funds ' communicators , where such a network exists , the creation and maintenance of the website or website portal referred to in annex vi and the provision of an overview of communication measures undertaken at member state level . 3 . each managing authority shall designate one person responsible for information and communication at operational programme level and shall inform the commission of those designated . where appropriate , one person may be designated for several operational programmes . 4 . union networks comprising the members designated by the member states shall be set up by the commission to ensure exchange on the results of the implementation of the communication strategies , the exchange of experience in implementing the information and communication measures , and the exchange of good practices .


### the csf funds shall provide support , through multi - annual programmes , which complements national , regional and local intervention , to deliver the union strategy for smart , sustainable and inclusive growth , taking account of the integrated guidelines , the country - specific recommendations under article 121 of the treaty and the relevant council recommendations adopted under 148 of the treaty . ### the european structural and investment funds shall provide support , through multi - annual programmes , which complements national , regional and local intervention to deliver 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 taking account of the relevant integrated guidelines and 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 article 148 of the treaty on the functioning of the european union and where appropriate at national level , the national reform programme .


### in accordance with the multi - level governance approach , the partners shall be involved by member states in the preparation of partnership contracts and progress reports and in the preparation , implementation , monitoring and evaluation of programmes . the partners shall participate in the monitoring committees for programmes . ### in accordance with the multi - level governance approach , the partners referred to in paragraph 1 shall be involved by member states in the preparation of partnership agreements and progress reports throughout the preparation and implementation of programmes , including participation in the monitoring committees for programmes in accordance with article 42 .


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


### the 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 .


### 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 .


### 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 .


### 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 .


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


### the 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 .


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


### as regards the funds and with a view to ensuring an appropriate allocation to each category of regions , resources should not be transferred between less developed , transition and more developed regions except in duly justified circumstances linked to the delivery of one or more thematic objectives and for no more than 2 % of the total appropriation for that category of region . ### as regards the funds and with a view to ensuring an appropriate allocation to each category of regions , resources should not be transferred between less developed , transition and more developed regions except in duly justified circumstances linked to the delivery of one or more thematic objectives and for no more than 4 % of the total appropriation for that category of region .


### ex ante evaluations shall appraise : the contribution to the union strategy for smart , sustainable and inclusive growth , having regard to the selected thematic objectives and priorities , taking into account national and regional needs ; the internal coherence of the proposed programme or activity and its relation with other relevant instruments ; the consistency of the allocation of budgetary resources with the objectives of the programme ; the consistency of the selected thematic objectives , the priorities and corresponding objectives of the programmes with the common strategic framework , the partnership contract and the country - specific recommendations under article 121 of the treaty and the council recommendations adopted under article 148 of the treaty ; the relevance and clarity of the proposed programme indicators ; how the expected outputs will contribute to results ; whether the quantified target values for indicators are realistic , having regard to the support from the csf funds envisaged ; the rationale for the form of support proposed ; the adequacy of human resources and administrative capacity for management of the programme ; the suitability of the procedures for monitoring the programme and for collecting the data necessary to carry out evaluations ; the suitability of the milestones selected for the performance framework ; the adequacy of planned measures to promote equal opportunities between men and women and to prevent discrimination ; the adequacy of planned measures to promote sustainable development . ### ex ante evaluations shall appraise : the contribution to the union strategy for smart , sustainable and inclusive growth , having regard to the selected thematic objectives and priorities , taking into account national and regional needs and potential for development as well as lessons drawn from previous programming periods ; the internal coherence of the proposed programme or activity and its relation with other relevant instruments ; the consistency of the allocation of budgetary resources with the objectives of the programme ; the consistency of the selected thematic objectives , the priorities and corresponding objectives of the programmes with the common strategic framework , the partnership agreement and the relevant country specific recommendations adopted in accordance with article 121 of the treaty on the functioning of the european union and where appropriate at national level , the national reform programme . the relevance and clarity of the proposed programme indicators ; how the expected outputs will contribute to results ; whether the quantified target values for indicators are realistic , having regard to the support from the european structural and investment funds envisaged ; the rationale for the form of support proposed ; the adequacy of human resources and administrative capacity for management of the programme ; the suitability of the procedures for monitoring the programme and for collecting the data necessary to carry out evaluations ; the suitability of the milestones selected for the performance framework ; the adequacy of planned measures to promote equal opportunities between men and women and to prevent any discrimination ; in particular as regards the acccessibility for persons with disabilities ; the adequacy of planned measures to promote sustainable development ; measures planned to reduce the administrative burden of beneficiaries .


### by 30 april 2016 and by 30 april of each subsequent year until and including 2022 the member state shall submit to the commission an annual report in accordance with article 44 . the report submitted in 2016 shall cover the financial years 2014 and 2015 , as well as the period between the starting date for eligibility of expenditure and 31 december 2013 . 2 . annual implementation reports shall set out information on : implementation of the operational programme in accordance with article 44 ; progress in preparation and implementation of major projects and joint action plans . 3 . the annual implementation reports submitted in 2017 and 2019 shall set out and assess the information required under articles 44 and respectively , the information set out in paragraph 2 , together with : progress in implementation of the integrated approach to territorial development , including sustainable urban development , and community - led local development under the operational programme ; progress in implementation of actions to reinforce the capacity of member state authorities and beneficiaries to administer and use the funds ; progress in implementation of any interregional and transnational actions ; progress in implementation of the evaluation plan and the follow - up given to the findings of evaluations ; the specific actions taken to promote equality between men and women and to prevent discrimination , including accessibility for disabled persons , and the arrangements implemented to ensure the integration of the gender perspective in the operational programme and operations ; actions taken to promote sustainable development in accordance with article 8 ; the results of the information and publicity measures of the funds carried out under the communication strategy ; progress in the implementation of actions in the field of social innovation , where appropriate ; progress in the implementation of measures to address the specific needs of geographical areas most affected by poverty or of target groups at highest risk of discrimination or exclusion , with special regard to marginalised communities including , where appropriate , the financial resources used ; the involvement of the partners in the implementation , monitoring and evaluation of the operational programme . 4 . the annual and final implementation reports shall be drawn up following models adopted by the commission by means of implementing acts . these implementing acts shall be adopted in accordance with the advisory procedure referred to in article 143 . ### by 31 may 2016 and by 31 may of each subsequent year until and including 2022 the member state shall submit to the commission an annual implementation report in accordance with article 44 . the report submitted in 2016 shall cover the financial years 2014 and 2015 , as well as the period between the starting date for eligibility of expenditure and 31 december 2013 . 1a . for the reports submitted in 2017 and 2019 , the deadline referred to in paragraph 1 shall be 30 june . 2 . annual implementation reports shall set out information on : implementation of the operational programme in accordance with article 44 ; progress in preparation and implementation of major projects and joint action plans . 3 . the annual implementation reports submitted in 2017 and 2019 shall set out and assess the information required under articles 44 and respectively , the information set out in paragraph 2 together with information on the elements set out under , and below and may dependent on the content and objectives of operational programmes and information on the other elements : progress in implementation of the integrated approach to territorial development , including development of regions facing demographic challenges and permanent or natural handicaps , sustainable urban development , and community - led local development under the operational programme ; progress in implementation of actions to reinforce the capacity of member state authorities and beneficiaries to administer and use the funds ; progress in implementation of any interregional and transnational actions ; where appropriate , contribution to macro - regional and sea basin strategies ; progress in implementation of the evaluation plan and the follow - up given to the findings of evaluations ; the specific actions taken to promote equality between men and women and to prevent discrimination , in particular accessibility for disabled persons , and the arrangements implemented to ensure the integration of the gender perspective in the operational programme and operations ; actions taken to promote sustainable development in accordance with article 8 ; the results of the information and publicity measures of the funds carried out under the communication strategy ; progress in the implementation of actions in the field of social innovation , where appropriate ; progress in the implementation of measures to address the specific needs of geographical areas most affected by poverty or of target groups at highest risk of poverty , discrimination or social exclusion , with special regard to marginalised communities and persons with disabilities , long term unemployed and young people not in employment including , where appropriate , the financial resources used . the involvement of the partners in the implementation , monitoring and evaluation of the operational programme . by derogation , and in order to ensure consistency between the partnership agreement and the progress report , the member states with no more than one operational programme per fund may include information related to ex ante conditionalities referred to in article 44 , the information required by article 44 and the information referred to in points , , and of this paragraph in the progress report instead of the annual implementation reports submitted in 2017 and 2019 respectively and the final report respectively , without prejudice to article 100 . 4 . the annual and final implementation reports shall be drawn up following models adopted by the commission by means of implementing acts . these implementing acts shall be adopted in accordance with the advisory procedure referred to in article 143 .


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


### 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 .


### the commission shall be empowered to adopt delegated acts in accordance with article 142 to provide for a european code of conduct that lays down objectives and criteria to support the implementation of partnership and to facilitate the sharing of information , experience , results and good practices among member states . ### the commission shall be empowered to adopt delegated act in accordance with article 142 to provide for a european code of conduct in order to support and facilitate member states in the organisation of the partnership in accordance with paragraphs 1 and 2 . the code of conduct shall set out the framework , within which the member states in accordance with their institutional and legal framework as well as their national and regional competences , shall pursue the implementation of partnership . the code of conduct , while fully respecting the principles of subsidiarity and proportionality , shall lay down the following elements : the main principles for transparent procedures to be followed for the identification of the relevant partners including , where appropriate , their umbrella organisations in order to facilitate member states to designate the most representative relevant partners , in accordance with their institutional and legal framework ; the main principles and best practices as regards the involvement of the different categories of relevant partners , as set out in paragraph 1 , in the preparation of the partnership agreement and programmes , the information to be provided on their involvement , as well as at the various stages of implementation ; the best practices as regards the formulation of the rules of membership and internal procedures of monitoring committees to be decided , as appropriate , by the member states or the monitoring committees of programmes in accordance with the relevant provisions of this regulation and the fund - specific rules ; the main objectives and best practices in cases where the managing authority involves the relevant partners in the preparation of calls for proposals and in particular the best practices to avoid potential conflicts of interest in cases where relevant partners may be potential beneficiaries , and for the involvement of the relevant partners in the preparation of progress reports and in relation to monitoring and evaluation of programmes in accordance with the relevant provisions of this regulation and the fund - specific rules ; the indicative areas , themes and best practices in order that the competent authorities of the member states may use the european structural and investment funds including technical assistance in strengthening the institutional capacity of relevant partners in accordance with the relevant provisions of this regulation and the fund - specific rules ; the role of the commission in the dissemination of good practices ; the main principles and best practices that will facilitate the member states ' assessment of the implementation of partnership and its added value . the provisions of the code of conduct shall not in any way contradict the relevant provisions of this regulation or the fund specific rules .


### a performance framework should be defined for each programme with a view to monitoring progress towards the objectives and targets set for each programme over the course of the programming period . the commission should undertake a performance review in cooperation with the member states in 2017 and 2019 . a performance reserve should be foreseen and allocated in 2019 where milestones set in the performance framework have been attained . due to their diversity and multi - country character , there should be no performance reserve for ‘ european territorial cooperation’ programmes . in cases where the shortfall in the achievement of milestones or targets is significant , the commission should be able to suspend payments to the programme or , at the end of the programming period , apply financial corrections , in order to ensure that the union budget is not used in a wasteful or inefficient way . ### a performance framework should be defined for each programme with a view to monitoring progress towards the objectives and targets set for each programme over the course of the programming period . the commission should undertake a performance review in cooperation with the member states in 2017 and 2019 . in cases where , as a result of a performance review , there is evidence that a priority failed to achieve the milestones set out in the performance framework , the commission should call upon the member state to propose amendments to the relevant programme and when the member state fails to respond satisfactorily within 3 months , the commission should be able to suspend all or part of an interim payment of a priority of a programme , in order to ensure that the union budget is not used in a wasteful or inefficient way . the suspension should be lifted as soon as the member state takes the necessary action .


### the bodies accredited in accordance with article 64 shall not carry out on - the - spot verifications of operations comprising financial instruments implemented under article 33 . they shall receive regular control reports from the bodies entrusted with the implementation of these financial instruments . ### bodies designated in accordance with article 59 of the financial regulation shall not carry out on - the spot verifications of operations comprising financial instruments implemented under article 33 . they shall receive regular control reports from the bodies entrusted with the implementation of these financial instruments .


### at least 25 % of the structural funds resources for less developed regions , 40% for transition regions and 52% for more developed regions in each member state shall be allocated to the esf . for the purposes of this provision , the support to a member state through the [ food for deprived people instrument ] shall be considered as part of the share of structural funds allocated to the esf . ### in order to ensure that sufficient investment is targeted at youth employment , labour mobility , knowledge , social inclusion and combating poverty , the share of structural funds resources available for programming for operational programmes under the investment for growth and jobs goal allocated to the esf in each member state shall not be lower than the corresponding esf share for that member state observed in the operational programmes for the convergence and regional competitiveness and employment objectives for the period 2007 - 2013 . an additional amount shall be added to that share for each member state determined according to the method set out in annex iii quater in order to ensure that the share of the esf as a percentage of the total combined resources for the structural funds and the cohesion fund at union level , excluding the support from the cohesion fund for transport infrastructure under the connecting europe facility referred to in article 84 and support from the structural funds for aid for the most deprived people referred to in article 84 , in member states is not less than 25 % . for the purposes of this provision , investment from the esf in the youth employment initiative shall be considered as part of the share of structural funds allocated to the esf .


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


### each member state shall designate an information and communication officer to coordinate information and communication actions in relation to one or several funds and shall inform the commission accordingly . 2 . the information and communication officer shall coordinate and chair meetings of a national network of funds ' communicators , including relevant european territorial cooperation programmes , the creation and maintenance of the website or website portal referred to in annex vi and the obligation to provide an overview about communication measures undertaken at national level . 3 . each managing authority shall designate one person to be responsible for information and communication at operational programme level and shall inform the commission of those designated . 4 . union networks comprising the members designated by the member states and the managing authorities shall be set up by the commission to ensure exchange on the results of the implementation of the communication strategies , the exchange of experience in implementing the information and communication measures , and the exchange of good practices . ### each member state shall designate an information and communication officer to coordinate information and communication actions in relation to one or several funds , including relevant european territorial cooperation programmes , and shall inform the commission accordingly . 2 . the information and communication officer shall be responsible for the coordination of national network of funds ' communicators , where such a network exists , the creation and maintenance of the website or website portal referred to in annex vi and the provision of an overview of communication measures undertaken at member state level . 3 . each managing authority shall designate one person responsible for information and communication at operational programme level and shall inform the commission of those designated . where appropriate , one person may be designated for several operational programmes . 4 . union networks comprising the members designated by the member states shall be set up by the commission to ensure exchange on the results of the implementation of the communication strategies , the exchange of experience in implementing the information and communication measures , and the exchange of good practices .


### the csf funds shall provide support , through multi - annual programmes , which complements national , regional and local intervention , to deliver the union strategy for smart , sustainable and inclusive growth , taking account of the integrated guidelines , the country - specific recommendations under article 121 of the treaty and the relevant council recommendations adopted under 148 of the treaty . ### the european structural and investment funds shall provide support , through multi - annual programmes , which complements national , regional and local intervention to deliver 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 taking account of the relevant integrated guidelines and 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 article 148 of the treaty on the functioning of the european union and where appropriate at national level , the national reform programme .