### the member states and the commission shall ensure that environmental protection requirements , resource efficiency , climate change mitigation and adaptation , disaster resilience and risk prevention and management are promoted in the preparation and implementation of partnership contracts and programmes . member states shall provide information on the support for climate change objectives using the methodology adopted by the commission . the commission shall adopt this methodology by means of an implementing act . the implementing act shall be adopted in accordance with the examination procedure referred to in article 143 . ### the member states and the commission shall ensure that environmental protection requirements , resource efficiency , climate change mitigation and adaptation , biodiversity and ecosystem protection , disaster resilience and risk prevention and management are promoted in the preparation and implementation of partnership agreements and programmes . member states shall provide information on the support for climate change objectives using the methodology based on the categories of intervention or measures adopted by the commission . this methodology shall consist of attaching weights to expenditure under the european structural and investment funds at an appropriate level to reflect the contribution to climate change mitigation and adaptation goals . the commission shall lay down uniform conditions on the implementation of this methodology to each of the european structural and investment funds by means of implementing acts . the implementing act shall be adopted in accordance with the examination procedure referred to in article 143 .


### implementing rules concerning the use of data collected during audits carried out by commission officials or authorised commission representatives shall be adopted by the commission in accordance with the examination procedure referred to in article 143 . ### the commission shall be empowered to adopt delegated acts , in accordance with article 142 , laying down detailed rules on the use of data collected during audits carried out by commission officials or authorised commission representatives .


### arrangements to ensure the efficient implementation of the funds , including : the planned use of technical assistance including actions to reinforce the administrative capacity of authorities and beneficiaries with the relevant information referred to in paragraph 2 for the priority axis concerned ; an assessment of the administrative burden for beneficiaries and the actions planned to achieve a reduction accompanied by targets ; a list of major projects for which the estimated start date for the execution of the main works is before 1 january 2018 ; ### deleted deleted deleted deleted


### flat rate financing for indirect costs for grants where the implementation of an operation gives rise to indirect costs , they may be calculated as a flat rate in one of the following ways : a flat rate of up to 20&#160 ; % of eligible direct costs , where the rate is calculated on the basis of a fair , equitable and verifiable calculation method or a method applied under schemes for grants funded entirely by the member state for a similar type of operation and beneficiary ; a flat rate of up to 15 % of eligible direct staff costs ; a flat rate applied to eligible direct costs based on existing methods and corresponding rates , applicable in union policies for a similar type of operation and beneficiary . the commission shall be empowered to adopt delegated acts in accordance with article 142 concerning the definition of the flat rate and the related methods referred to in point above . ### flat rate financing for indirect costs and staff costs for grants and repayable assistance where the implementation of an operation gives rise to indirect costs , they may be calculated as a flat rate in one of the following ways : a flat rate of up to 25&#160 ; % of eligible direct costs , provided that the rate is calculated on the basis of a fair , equitable and verifiable calculation method or a method applied under schemes for grants funded entirely by the member state for a similar type of operation and beneficiary ; a flat rate of up to 15 % of eligible direct staff costs without a requirement for the member state to execute any calculation to determine the applicable rate ; a flat rate applied to eligible direct costs based on existing methods and corresponding rates , applicable in union policies for a similar type of operation and beneficiary . the commission shall be empowered to adopt delegated acts in accordance with article 142 concerning the definition of the flat rate and the related methods referred to in point above . 1a . for the purposes of determining staff costs relating to the implementation of an operation , the hourly rate applicable may be calculated by dividing the latest documented annual gross employment costs by 1720 hours .


### the pre - financing payment at the start of programmes ensures that the member state has the means to provide support to beneficiaries in the implementation of the programme from programme adoption . therefore , provisions should be made for initial pre - financing amounts from the csf funds . initial pre - financing should be totally cleared at closure of the programme . ### the pre - financing payment at the start of programmes ensures that the member state also has the means to provide ex ante support to beneficiaries from the start of the implementation of the programme , so as to ensure that the beneficiaries have the financial sustainability to make the allocated investments . therefore , provisions should be made for initial pre - financing amounts from the csf funds . initial pre - financing should be totally cleared at closure of the programme .


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


### with a view to strengthening accessibility and transparency of information about funding opportunities and project beneficiaries , in each member state a single website or website portal providing information on all the operational programmes , including the lists of operations supported under each operational programme , should be made available . ### with a view to strengthening accessibility and transparency of information about funding opportunities and project beneficiaries , in each member state a single website or website portal providing comprehensible and easily accessible information on all the operational programmes , including the lists of operations supported under each operational programme , should be made available .


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


### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional development needs . ex ante conditionalities should be defined to ensure that the necessary framework conditions for the effective use of union support are in place . the fulfilment of those ex ante conditionalities should be assessed by the commission in the framework of its assessment of the partnership contract and programmes . in cases where there is a failure to fulfil an ex ante conditionality , the commission should have the power to suspend payments to the programme . ### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national , regional and local development needs . the fulfilment of those ex ante conditionalities will be monitored by the commission in the framework of its assessment of the partnership contract and programmes , for the purpose of ensuring the necessary framework setting for the effective use of union funds .


### where irregularities affecting annual accounts sent to the commission are detected by the commission or by the european court of auditors , the resulting financial correction shall reduce support from the funds to the operational programme . ### where irregularities affecting accounts sent to the commission by the member states are detected by the commission or by the european court of auditors , the resulting financial correction shall reduce support from the funds to the operational programme .


### article 174 of the treaty provides that , in order to strengthen its economic , social and territorial cohesion , the union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands , particular rural areas , areas affected by industrial transition , and regions which suffer from severe and permanent natural or demographic handicaps . article 175 of the treaty requires that the union would support the achievement of these objectives by action it takes through the european agricultural guidance and guarantee fund , guidance section , the european social fund , the european regional development fund , the european investment bank and other instruments . ### article&#160 ; 174 of the treaty provides that , in order to strengthen its economic , social and territorial cohesion , the union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands , particularly rural areas , areas affected by industrial transition , and regions which suffer from severe and permanent natural or demographic handicaps , such as the northernmost regions with low population density as well as island , border and mountain regions . also , for the purpose of maximising the effectiveness of the funds , where applicable , disadvantaged urban areas and remote border cities should be taken into account . article&#160 ; 175 of the treaty requires that the union would support the achievement of these objectives by action it takes through the european agricultural guidance and guarantee fund , guidance section , the european social fund , the european regional development fund , the european investment bank and other instruments .


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


### 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


### arrangements to ensure efficient implementation of the csf funds , including : an assessment of whether there is a need to reinforce the administrative capacity of the authorities and , where appropriate , beneficiaries , and actions to be taken for this purpose ; a summary of the actions planned and corresponding targets in the programmes to achieve a reduction in the administrative burden for beneficiaries ; an assessment of the existing systems for electronic data exchange , and the actions planned to permit all exchanges of information between beneficiaries and authorities responsible for management and control of programmes to be carried out solely by electronic data exchange . ### deleted deleted deleted deleted


### it is necessary to determine the elements for modulating the co - financing rate from the funds to operational programmes , in particular , to increase the multiplier effect of union resources . it is also necessary to establish the maximum rates of co - financing by category of region in order to ensure respect of the principle of co - financing through an appropriate level of national support . ### it is necessary to determine the elements for modulating the co - financing rate from the funds to operational programmes , in particular , to increase the multiplier effect of union resources . it is also necessary to establish the maximum rates of co - financing by category of region in order to ensure respect of the principle of co - financing through an appropriate level of both public and private national support . current national co - financing rates should not be raised in the present economic situation which already poses numerous challenges for the regions . in capital regions which are the only more developed region in a member state , more flexibility should be provided for .


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


### the commission shall adopt delegated acts , in accordance with article 142 , laying down the modalities of the exchange of information in paragraph 2 . 9 . the commission shall adopt delegated acts , in accordance with article 142 , laying down rules concerning arrangements for the audit trail referred to in paragraph 4 . 10 . the commission shall adopt , by means of implementing acts , the model for the management declaration referred to in paragraph 4 . those implementing acts shall be adopted in accordance with the advisory procedure referred to in article 143 . ### the commission shall be empowered to adopt delegated acts , in accordance with article 142 laying down rules specifying the information in relation to the data to be recorded and stored in computerised form within monitoring system established under point of paragraph 2 . the commission shall adopt implementing acts laying down the technical specifications of the system established under point of paragraph 2 . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 143 . 9 . the commission shall be empowered to adopt delegated acts , in accordance with article 142 , laying down the detailed minimum requirements for the audit trail referred to in paragraph 4 in respect of the accounting records to be maintained and the supporting documents to be held at the level of the certifying authority , managing authority , intermediate bodies and beneficiaries . 101 . the commission shall adopt implementing acts , in accordance with the advisory procedure referred to in article 143 laying down uniform conditions on the model for the management declaration referred to in paragraph 4 of this article . 1 note : the appropriate linguistic formulation for ia provisions to be further discussed following input . input from whom ?


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


### functions of the audit authority 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 . 2 . where audits are carried out by a body other than the audit authority , the audit authority shall ensure that any such body has the necessary functional independence . 3 . the audit authority shall ensure that audit work takes account of internationally accepted audit standards . 4 . the audit authority shall , within six months of adoption of an operational programme , prepare an audit strategy for performance of audits . the audit strategy shall set out the audit methodology , the sampling method for audits on operations and the planning of audits in relation to the current accounting year and the two subsequent accounting years . the audit strategy shall be updated annually from 2016 until and including 2022 . where a common management and control system applies to more than one operational programme , a single audit strategy may be prepared for the operational programmes concerned . the audit authority shall submit the audit strategy to the commission upon request . 5 . the audit authority shall draw up : an audit opinion on the annual accounts for the preceding accounting year , whose scope shall cover the completeness , accuracy and veracity of the annual accounts , the functioning of the management and control system and the legality and regularity of the underlying transactions ; an annual control report setting out the findings of the audits carried out during the preceding accounting year . the report under point shall set out any deficiencies found in the management and control system and any corrective measures taken or proposed to be taken . where a common management and control system applies to more than one operational programme , the information required under point may be grouped in a single report . 6 . the commission shall adopt , by means of implementing acts , models for the audit strategy , the audit opinion and the annual control report , as well as the methodology for the sampling method referred to in paragraph 4 . these implementing acts shall be adopted in accordance with the examination procedure referred to in article 143 . 7 . implementing rules concerning the use of data collected during audits carried out by commission officials or authorised commission representatives shall be adopted by the commission in accordance with the examination procedure referred to in article 143 . ### functions of the audit authority 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 . the declared expenditure shall be audited based on a representative sample and as a general rule on statistical sampling methods . a non - statistical sampling method may be used on the professional judgement of the audit authority in duly justified cases in accordance with international audit standards and in any case when the number of operations for an accounting year is insufficient to allow the use of statistical method . in such cases the size of the sample shall be sufficient to enable the audit authority to draw up a valid audit opinion in accordance with article 59 of the financial regulation . the non - statistical sample method shall cover a minimum of 5% of operations for which expenditure has been declared to the commission during an accounting year and 10% of the expenditure which has been declared to the commission during an accounting year . deleted 2 . where audits are carried out by a body other than the audit authority , the audit authority shall ensure that any such body has the necessary functional independence . 3 . the audit authority shall ensure that audit work takes account of internationally accepted audit standards . 4 . the audit authority shall , within eight months of adoption of an operational programme , prepare an audit strategy for performance of audits . the audit strategy shall set out the audit methodology , the sampling method for audits on operations and the planning of audits in relation to the current accounting year and the two subsequent accounting years . the audit strategy shall be updated annually from 2016 until and including 2022 . where a common management and control system applies to more than one operational programme , a single audit strategy may be prepared for the operational programmes concerned . the audit authority shall submit the audit strategy to the commission upon request . 5 . the audit authority shall draw up : an audit opinion in accordance with article 59 of the financial regulation ; a control report setting out the main findings , including deficiencies found in the management and control systems , of the audits carried out according to paragraph 116 and the proposed and implemented corrective actions . deleted where a common management and control system applies to more than one operational programme , the information required under point may be grouped in a single report . 6 . the commission shall adopt , by means of implementing acts , models for the audit strategy , the audit opinion and the control report . these implementing acts shall be adopted in accordance with the advisory procedure referred to in article 143 . 6a . the commission shall be empowered to adopt delegated acts in accordance with article 142 to set out the scope and content of audits of operations and audits of the accounts and the methodology for the selection of the sample of operations referred to in paragraph 1 . 7 . the commission shall be empowered to adopt delegated acts , in accordance with article 142 , laying down detailed rules on the use of data collected during audits carried out by commission officials or authorised commission representatives .


### 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 . commission officials or authorised commission representatives may carry out on - the - spot audits or checks upon giving at least twelve working days notice to the competent national authority , except in urgent cases . the commission shall respect the principle of proportionality by taking into account the need to avoid unjustified duplication of audits or checks carried out by member states , the level of risk to the union budget and the need to minimise administrative burdens for beneficiaries in accordance with the fund - specific rules . 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 or checks . 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


### the member states and the commission shall ensure that environmental protection requirements , resource efficiency , climate change mitigation and adaptation , disaster resilience and risk prevention and management are promoted in the preparation and implementation of partnership contracts and programmes . member states shall provide information on the support for climate change objectives using the methodology adopted by the commission . the commission shall adopt this methodology by means of an implementing act . the implementing act shall be adopted in accordance with the examination procedure referred to in article 143 . ### the member states and the commission shall ensure that environmental protection requirements , resource efficiency , climate change mitigation and adaptation , biodiversity and ecosystem protection , disaster resilience and risk prevention and management are promoted in the preparation and implementation of partnership agreements and programmes . member states shall provide information on the support for climate change objectives using the methodology based on the categories of intervention or measures adopted by the commission . this methodology shall consist of attaching weights to expenditure under the european structural and investment funds at an appropriate level to reflect the contribution to climate change mitigation and adaptation goals . the commission shall lay down uniform conditions on the implementation of this methodology to each of the european structural and investment funds by means of implementing acts . the implementing act shall be adopted in accordance with the examination procedure referred to in article 143 .


### non - transferability of resources the total appropriations allocated to each member state in respect of less developed regions , transition regions and more developed regions shall not be transferable between each of those categories of regions . 2 . by way of derogation from paragraph 1 , the commission may accept , in duly justified circumstances which are linked to the implementation of one or more thematic objectives , a proposal by a member state in its first submission of the partnership contract to transfer up to 2% of the total appropriation for a category of regions to other categories of regions . ### non - transferability of resources the total appropriations allocated to each member state in respect of less developed regions , transition regions and more developed regions shall not be transferable between each of those categories of regions . 2 . by way of derogation from paragraph 1 , the commission may accept , in duly justified circumstances which are linked to the implementation of one or more thematic objectives , a proposal by a member state in its first submission of the partnership agreement to transfer up to 4% of the total appropriation for a category of regions to other categories of regions .


### the audit authority shall draw up : an audit opinion on the annual accounts for the preceding accounting year , whose scope shall cover the completeness , accuracy and veracity of the annual accounts , the functioning of the management and control system and the legality and regularity of the underlying transactions ; an annual control report setting out the findings of the audits carried out during the preceding accounting year . the report under point shall set out any deficiencies found in the management and control system and any corrective measures taken or proposed to be taken . where a common management and control system applies to more than one operational programme , the information required under point may be grouped in a single report . ### the audit authority shall draw up : an audit opinion in accordance with article 59 of the financial regulation ; a control report setting out the main findings , including deficiencies found in the management and control systems , of the audits carried out according to paragraph 116 and the proposed and implemented corrective measures . deleted where a common management and control system applies to more than one operational programme , the information required under point may be grouped in a single report .


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


### article 174 of the treaty provides that , in order to strengthen its economic , social and territorial cohesion , the union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands , particular rural areas , areas affected by industrial transition , and regions which suffer from severe and permanent natural or demographic handicaps . article 175 of the treaty requires that the union would support the achievement of these objectives by action it takes through the european agricultural guidance and guarantee fund , guidance section , the european social fund , the european regional development fund , the european investment bank and other instruments . ### article 174 of the treaty provides that , in order to strengthen its economic , social and territorial cohesion , the union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions . among the regions concerned particular attention shall be paid to rural areas , areas affected by industrial transition , and regions which suffer from severe and permanent natural or demographic handicaps such as the northernmost regions with very low population density and island , cross - border and mountain regions . article 175 of the treaty requires that the union would support the achievement of these objectives by action it takes through the european agricultural guidance and guarantee fund , guidance section , the european social fund , the european regional development fund , the european investment bank and other instruments .


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


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


### the co - financing rate of the additional allocation in accordance with article 84 shall be no higher than 50% . the same co - financing rate shall apply to the additional allocation under article 4 of regulation no [ … ] / 2012 [ etc regulation ] . ### deleted deleted


### each of the funds may finance technical assistance operations eligible under any of the other funds . the amount of the funds allocated to technical assistance shall be limited to 4% of the total amount of the funds allocated to operational programmes under each category of region of the investment for growth and jobs goal . 2 . technical assistance shall take the form of a mono - fund priority axis within an operational programme or of a specific operational programme . 3 . the allocation for technical assistance from a fund shall not exceed 10% of the total allocation of that fund to operational programmes in a member state under each category of region of the investment for growth and jobs goal . ### the amount of the funds allocated to technical assistance shall be limited to 4% of the total amount of the funds allocated to operational programmes in a member state under each category of region of the investment for growth and jobs goal , and 4% of the cohesion fund allocated to operational programmes in a member state . 1a . without prejudice to the provisions of paragraph 1 , each fund may support technical assistance operations eligible under any of the other funds . the allocation for technical assistance from the erdf and the esf respectively shall not exceed 10% of the total allocation of each fund to operational programmes in a member state under each category of region of the investment for growth and jobs goal . 1b . by derogation from article 60 and , technical assistance operations may be implemented outside the programme area , but within the union , provided that the operations are for the benefit of the operational programme , or , in the case of a technical assistance operational programme for the other programmes concerned . 1c . where the funds are used to support technical assistance operations relating to more than one category of region , for the purposes of attributing the costs of the operations to technical assistance allocations for different categories of regions , a pro rata basis may be applied taking into account the allocation under each category of region as a share of the total allocation to the member state . 1d . by way of derogation from paragraph 1 , when the total amount of the funds allocated to a member state under the investment for growth and jobs goal is up to eur 1 billion , the percentage referred to in paragraph 1 shall be 6% but the total amount allocated to technical assistance shall not exceed eur 50 000 000 whichever is the lower . 2 . technical assistance shall take the form of a mono - fund priority axis within an operational programme or of a specific operational programme , or both . deleted


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


### to ensure the availability of essential and up to date information on programme implementation , it is necessary that member states provide the commission with the key data on a regular basis . in order to avoid an additional burden on member states , this should be limited to data collected continuously , and the transmission should be performed by way of electronic data exchange . ### to ensure the availability of essential and up to date information on programme implementation , it is necessary that member states provide the commission with the key data on a regular basis . in order to avoid an additional burden on member states , this should be limited to data collected continuously , and the transmission should be performed by way of electronic data exchange . insofar as these transfers include personal data , the provisions of directive 95 / 46 / ec and of regulation 45 / 2001 should apply .


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


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


### 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 .


### 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 .


### technical assistance of the member states each of the funds may finance technical assistance operations eligible under any of the other funds . the amount of the funds allocated to technical assistance shall be limited to 4% of the total amount of the funds allocated to operational programmes under each category of region of the investment for growth and jobs goal . 2 . technical assistance shall take the form of a mono - fund priority axis within an operational programme or of a specific operational programme . 3 . the allocation for technical assistance from a fund shall not exceed 10% of the total allocation of that fund to operational programmes in a member state under each category of region of the investment for growth and jobs goal . ### technical assistance of the member states the amount of the funds allocated to technical assistance shall be limited to 4% of the total amount of the funds allocated to operational programmes in a member state under each category of region , where applicable , of the investment for growth and jobs goal . 1a . each fund may support technical assistance operations eligible under any of the other funds . without prejudice to the provisions of paragraph 1 , the allocation for technical assistance from a fund shall not exceed 10% of the total allocation of that fund to operational programmes in a member state under each category of region , where applicable , of the investment for growth and jobs goal . 1b . by derogation from article 60 and , technical assistance operations may be implemented outside the programme area , but within the union , provided that the operations are for the benefit of the operational programme , or , in the case of a technical assistance operational programme for the other programmes concerned . 1c . where the structural funds allocations referred to in paragraph 1 are used to support technical assistance operations relating to more than one category of region , the expenditure relating to the operations may be implemented under a priority axis combining different categories of region and attributed on a pro rata basis taking into account the allocation under each category of region as a share of the total allocation to the member state . 1d . by way of derogation from paragraph 1 , when the total amount of the funds allocated to a member state under the investment for growth and jobs goal is up to eur 1 billion , the amount allocated to technical assistance may increase up to the lower of 6% or eur 50 000 000 . 2 . technical assistance shall take the form of a mono - fund priority axis within an operational programme or of a specific operational programme , or both . deleted


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


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


### the member states and the commission shall ensure that environmental protection requirements , resource efficiency , climate change mitigation and adaptation , disaster resilience and risk prevention and management are promoted in the preparation and implementation of partnership contracts and programmes . member states shall provide information on the support for climate change objectives using the methodology adopted by the commission . the commission shall adopt this methodology by means of an implementing act . the implementing act shall be adopted in accordance with the examination procedure referred to in article 143 . ### the member states and the commission shall ensure that environmental protection requirements , resource efficiency , climate change mitigation and adaptation , biodiversity and ecosystem protection , disaster resilience and risk prevention and management are promoted in the preparation and implementation of partnership agreements and programmes . member states shall provide information on the support for climate change objectives using the methodology based on the categories of intervention or measures adopted by the commission . this methodology shall consist of attaching weights to expenditure under the european structural and investment funds at an appropriate level to reflect the contribution to climate change mitigation and adaptation goals . the commission shall lay down uniform conditions on the implementation of this methodology to each of the european structural and investment funds by means of implementing acts . the implementing act shall be adopted in accordance with the examination procedure referred to in article 143 .


### to ensure transparency and properly inform eu citizens and market operators , the competent authorities should set up a common website to publish non confidential information on the incidents and risks . ### to ensure transparency and properly inform eu citizens and market operators , the competent authorities should publish non confidential information on the incidents and risks on common digital spaces which , in the same way as websites , allow for their consultation on mobile phones and tablets .


### competent authorities should pay due attention to preserving informal and trusted channels of information - sharing between market operators and between the public and the private sectors . publicity of incidents reported to the competent authorities should duly balance the interest of the public in being informed about threats with possible reputational and commercial damages for the public administrations and market operators reporting incidents . in the implementation of the notification obligations , competent authorities should pay particular attention to the need to maintain information about product vulnerabilities strictly confidential prior to the release of appropriate security fixes . ### competent authorities should pay due attention to preserving informal and trusted channels of information - sharing between market operators and between the public and the private sectors . publicity of incidents reported to the competent authorities should assign precedence to the interest of the public in being informed about threats rather than to short - term economic considerations .


### the commission shall periodically review the functioning of this directive and report to the european parliament and the council . the first report shall be submitted no later than three years after the date of transposition referred to in article 21 . for this purpose , the commission may request member states to provide information without undue delay . ### the commission shall periodically review the functioning of this directive and report to the european parliament and the council . the first report shall be submitted no later than two years after the date of transposition referred to in article 21 . for this purpose , the commission may request member states to provide information without undue delay .


### the competent authority may inform the public , or require the public administrations and market operators to do so , where it determines that disclosure of the incident is in the public interest . once a year , the competent authority shall submit a summary report to the cooperation network on the notifications received and the action taken in accordance with this paragraph . ### the competent authority may inform the public , or require the public administrations and market operators to do so , where it determines that disclosure of the incident is in the public interest . once a year , the competent authority shall submit a summary report to the cooperation network on the notifications received and the action taken in accordance with this paragraph . that annual report should contain , as a minimum , both the number of alerts issued and a breakdown of these by type . it shall be made available to the public in a compatible format enabling its publication on any open data portal wishing to publish it .


### network and information systems and services play a vital role in the society . their reliability and security are essential to economic activities and social welfare , and in particular to the functioning of the internal market . ### network and information systems and services play a vital role in the society . their reliability and security are essential to economic activities and social welfare , and in particular to the functioning of the internal market , as well as the external security of the eu .


### as most network and information systems are privately operated , cooperation between the public and private sector is essential . market operators should be encouraged to pursue their own informal cooperation mechanisms to ensure nis . they should also cooperate with the public sector and share information and best practices in exchange of operational support in case of incidents . ### as most network and information systems are privately operated , cooperation between the public and private sector is essential . market operators should be encouraged to pursue their own informal cooperation mechanisms to ensure nis . they should also cooperate with the public sector and mutually share information and best practices as well as reciprocal operational support as needed in case of incidents .


### review ### reporting and review


### as most network and information systems are privately operated , cooperation between the public and private sector is essential . market operators should be encouraged to pursue their own informal cooperation mechanisms to ensure nis . they should also cooperate with the public sector and share information and best practices in exchange of operational support in case of incidents . ### as most network and information systems are privately operated , cooperation between the public and private sector is essential . market operators should be encouraged to pursue their own informal cooperation mechanisms to ensure nis . they should also cooperate with the public sector and mutually share information and best practices including the reciprocal in exchange of relevant information and operational support and strategically analysed information , in case of incidents . to effectively encourage the sharing of information and of best practices , it is essential to ensure that market operators , who participate in such exchanges , are not disadvantaged as a result of their cooperation . adequate safeguards are needed to ensure that such cooperation will not expose these operators to higher compliance risk or new liabilities under , inter alia , competition , intellectual property , data protection or cybercrime law , nor expose them to increase operational or security risks .


### the commission should periodically review this directive , in particular with a view to determining the need for modification in the light of changing technological or market conditions . ### the commission should periodically review this directive , in consultation with all interested stakeholders , in particular with a view to determining the need for modification in the light of changing societal , political , technological or market conditions


### the competent authorities shall consult and cooperate , whenever appropriate , with the relevant law enforcement national authorities and data protection authorities . ### the competent authorities shall consult and cooperate closely with the competent law enforcement national authorities and data protection authorities , whenever appropriate and taking into account the principle of proportionality .


### a secure information - sharing infrastructure should be put in place to allow for the exchange of sensitive and confidential information within the cooperation network . without prejudice to their obligation to notify incidents and risks of union dimension to the cooperation network , access to confidential information from other member states should only be granted to members states upon demonstration that their technical , financial and human resources and processes , as well as their communication infrastructure , guarantee their effective , efficient and secure participation in the network . ### a secure information - sharing infrastructure should be put in place to allow for the exchange of sensitive and confidential information within the cooperation network . without prejudice to their obligation to notify incidents and risks of union dimension to the cooperation network , access to confidential information from other member states should only be granted to members states upon demonstration that their technical , financial and human resources and processes , as well as their communication infrastructure , guarantee their effective , efficient and secure participation in the network . this should always be done using transparent methods that prevent any arbitrary conduct between member states .


### within the limits of this regulation , member states may adopt by law specific rules regulating the processing of employees ' personal data in the employment context , in particular for the purposes of the recruitment , the performance of the contract of employment , including discharge of obligations laid down by law or by collective agreements , management , planning and organisation of work , health and safety at work , and for the purposes of the exercise and enjoyment , on an individual or collective basis , of rights and benefits related to employment , and for the purpose of the termination of the employment relationship . ### member states may adopt by legal provisions specific rules regulating the processing of employees ' personal data in the employment context for the purposes of the recruitment , the performance of the contract of employment , including discharge of obligations laid down by law or by collective agreements , collective agreements , management , planning and organisation of work , health and safety at work , and for the purposes of the exercise and enjoyment , on an individual or collective basis , of rights and benefits related to employment , and for the purpose of the termination of the employment relationship . the level of protection afforded by this regulation may on no account be undercut , especially in the case of collective agreements . the right of member states to provide employees with more favourable protection provisions in respect of the processing of personal data in the employment context shall remain unaffected .


### the processing of personal data , revealing race or ethnic origin , political opinions , religion or beliefs , trade - union membership , and the processing of genetic data or data concerning health or sex life or criminal convictions or related security measures shall be prohibited . ### the processing of personal data , revealing race or ethnic origin , political opinions , religion or beliefs , trade - union membership and activities , and the processing of genetic data or data concerning health or sex life or criminal convictions or related security measures shall be prohibited . in particular , this would include safeguards to prohibit the blacklisting of workers , for example in relation to their trade union activities or health and safety representative roles .


### the commission shall be empowered to adopt delegated acts in accordance with article 86 for the purpose of further specifying the criteria and requirements for the safeguards for the processing of personal data for the purposes referred to in paragraph 1 . ### this regulation recognizes the role of the social partners . in countries where it has been left to the parties on the labour market to regulate wages and various other work condition through collective agreements the social partners ' obligations and rights under collective agreements should be taken into specific consideration when applying article 6 . 1 .


### the general principles on the protection of individuals with regard to the processing of personal data should also be applicable to the employment context . therefore , in order to regulate the processing of employees ' personal data in the employment context , member states should be able , within the limits of this regulation , to adopt by law specific rules for the processing of personal data in the employment sector . ### the general principles on the protection of individuals with regard to the processing of personal data should also be applicable to the employment context . member states should be able to regulate the processing of employees ' personal data in the employment context , while ensuring compliance with the standards set out in this regulation . where a statutory basis exists in the member state in question for the regulation of employment matters by agreement between employee representatives and the management of the undertaking or the controlling undertaking of a group of undertakings or under directive 2009 / 38 / ec of the european parliament and of the council of 6 may 2009 on the establishment of a european works council or a procedure in community - scale undertakings and community - scale groups of undertakings for the purposes of informing and consulting employees , it should also be possible to regulate the processing of personal data in an employment context by such an agreement . ________________ 1 oj l 122 , 16 . 5 . 2009 , p . 28 .


### an enterprise or an organisation employing fewer than 250 persons is processing personal data only as an activity ancillary to its main activities . ### an enterprise or an organisation is processing personal data only as an activity ancillary to its main activities .