### a delegated act adopted pursuant to the second subparagraph of article 15 shall enter into force only if no objection has been expressed either by the european parliament or by the council within a period of two months of the notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by two months at the initiative of the european parliament or of the council . ### a delegated act adopted pursuant to article 12 and the second subparagraph of 15 shall enter into force only if no objection has been expressed either by the european parliament or by the council within a period of two months of the notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by two months at the initiative of the european parliament or of the council .


### since the objective of this regulation , namely to contribute to the institutional , administrative and structural reforms in the member states by providing support to national authorities for measures aimed at reforming institutions , governance , administration , economic and social sectors , including through assistance for the efficient and effective use of the union funds cannot be sufficiently achieved by the member states alone , but can rather , by reason of their scale and effects , be better achieved at union level , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 of the treaty on european union . in accordance with the principle of proportionality , as set out in that article , this regulation does not go beyond what is necessary in order to achieve that objective , since the scope of the support would be mutually agreed with the member state concerned . ### since the objective of this regulation , namely to contribute to the institutional , administrative and structural reforms in the member states by providing support to national authorities , as defined in this regulation , for measures aimed at reforming institutions , governance , administration , economic and social sectors , including through assistance for the efficient and effective use of the union funds cannot be sufficiently achieved by the member states alone , but can rather , by reason of their scale and effects , be better achieved at union level , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 of the treaty on european union . in accordance with the principle of proportionality , as set out in that article , this regulation does not go beyond what is necessary in order to achieve that objective , since the scope of the support would be mutually agreed with the member state concerned .


### further to a dialogue with the requesting member state , including in the context of the european semester , the commission should analyse the request , taking into account the principles of transparency , equal treatment and sound financial management and determine the support to be provided based on urgency , breadth and depth of the problems as identified , support needs in respect of the policy areas envisaged , analysis of socioeconomic indicators , and the general administrative capacity of the member state . the commission should also , in close cooperation with the member state concerned , identify the priority areas , the scope of the support measures to be provided and the global financial contribution for such support , taking into account the existing actions and measures financed by union funds or other union programmes . ### further to a dialogue with the requesting member state , including in the context of the european semester , the commission should analyse the request , taking into account the principles of transparency , equal treatment and sound financial management and determine the support to be provided based on urgency , breadth and depth of the problems as identified , support needs in respect of the policy areas envisaged , analysis of socioeconomic indicators , and the general administrative capacity of the member state . based on this analysis and taking into account the existing actions and activities financed by union funds or other union programmes , the commission should come to an agreement with the member state concerned on the priority areas , the objectives , an indicative timeline , the scope of the support measures to be provided and the estimated global financial contribution for such support , to be set out in a cooperation and support plan . the european parliament should be fully informed regarding the receipt of a request for support under the programme and of the analysis undertaken by the commission . the commission should provide the cooperation and support plan to the european parliament as soon as possible .


### the beneficiary member state , in coordination with the commission , may enter into partnership with one or more other member states which shall act as reform partners in respect of specific areas of reform . a reform partner shall , in coordination with the commission , help formulate strategy , reform roadmaps , design high - quality assistance or oversee implementation of strategy and projects . ### the beneficiary member state , in coordination with the commission , may enter into partnership with one or more other member states which shall act as reform partners in respect of specific areas of reform . a reform partner shall , in coordination with the commission and on the basis of a mutual understanding with the beneficiary member state and the commission , help formulate strategy , reform roadmaps , design high - quality assistance or oversee implementation of strategy and projects . the commission shall keep the european parliament fully informed about the participation of a reform partner and its role in the cooperation and support plan .


### reforms are by their very nature complex processes that require a complete chain of highly - specialised knowledge and skills . addressing structural reforms in a variety of public policy areas is challenging since their benefits often take time to materialise . therefore , early and efficient design and implementation is crucial , be it for crisis - struck or structurally - weak economies . in this context , the provision of support by the union in the form of technical assistance has been crucial in supporting the economic adjustment of greece and cyprus in the last years . ### reforms are by their very nature complex processes that require a complete chain of highly - specialised knowledge and skills as well as a long - term vision . the implementation of sustainable structural reforms in a variety of public policy areas is challenging since their benefits often take time and a continued commitment to materialise , and therefore measures need to be taken to discourage policy - making with a short - term perspective . in particular , early and efficient design and implementation is crucial , including for crisis - struck or structurally - weak economies . in this context , the provision of support by the union in the form of technical assistance has been crucial in supporting the economic adjustment of greece and cyprus in the last years , and can serve as a useful precedent for a s programme to support structural reform . ownership of structural reforms and political will in the members states , including local and regional authorities , where appropriate , and the social partners , is essential for such a programme to be successful .


### further to a dialogue with the requesting member state , including in the context of the european semester , the commission should analyse the request , taking into account the principles of transparency , equal treatment and sound financial management and determine the support to be provided based on urgency , breadth and depth of the problems as identified , support needs in respect of the policy areas envisaged , analysis of socioeconomic indicators , and the general administrative capacity of the member state . the commission should also , in close cooperation with the member state concerned , identify the priority areas , the scope of the support measures to be provided and the global financial contribution for such support , taking into account the existing actions and measures financed by union funds or other union programmes . ### further to a dialogue with the requesting member state , including in the context of the european semester , which should prioritise investment , growth , employment and socially progressive policies , the commission should analyse the request , taking into account the principles of transparency , respect for the role of the social partners , equal treatment and sound financial management and determine the support to be provided based on urgency , breadth and depth of the problems as identified , support needs in respect of the policy areas envisaged , analysis of socioeconomic indicators , and the general administrative capacity of the member state . the commission should also , in close cooperation with the member state concerned , identify the priority areas , the scope of the support measures to be provided and the global financial contribution for such support , taking into account the existing actions and measures financed by union funds or other union programmes .


### the general objective of the programme shall be to contribute to institutional , administrative and structural reforms in the member states by providing support to national authorities for measures aimed at reforming institutions , governance , administration , economic and social sectors in response to economic and social challenges with a view to enhancing competitiveness , growth , jobs , and investment , in particular in the context of economic governance processes , including through assistance for the efficient and effective use of the union funds . ### the general objective of the programme shall be to contribute to institutional , administrative and structural reforms in the member states by providing support to national authorities for measures aimed at reforming institutions , governance , administration , economic and social sectors in response to economic and social challenges with a view to enhancing economic , social and territorial cohesion , competitiveness , sustainable growth , jobs , and investment , in the context of economic governance processes , or through assistance for the efficient and effective use of the union funds , in particular the esi funds .


### the delegation of power referred to in the second subparagraph of article 15 may be revoked at any time by the european parliament or by the council . a decision to revoke shall put an end to the delegation of the power specified in that decision . it shall take effect on the day following publication in the official journal of the european union or at a later date specified therein . it shall not affect the validity of any delegated acts already in force . ### the delegation of power referred to in article 12 and the second subparagraph of article 15 may be revoked at any time by the european parliament or by the council . a decision to revoke shall put an end to the delegation of the power specified in that decision . it shall take effect on the day following publication in the official journal of the european union or at a later date specified therein . it shall not affect the validity of any delegated acts already in force .


### to support the national authorities to enhance their capacity to formulate , develop and implement reform policies and strategies and pursue an integrated approach ensuring consistency between goals and means across sectors ; ### to support the national authorities to enhance their capacity to formulate , develop and implement reform policies and strategies connected with growth and social well - being and pursue an integrated approach ensuring consistency between goals and means across sectors ;


### this regulation should be implemented in compliance with regulation no 966 / 2012 of the european parliament and of the council18 on the financial rules applicable to the annual budget of the european union . the commission should adopt multi - annual work programmes that set out the political objectives pursued , the expected results of the support and the funding priorities in the respective policy areas . those elements should be further specified in annual work programmes adopted by implementing acts . __________________ 18 regulation no 966 / 2012 of the european parliament and of the council of 25 october 2012 on the financial rules applicable to the general budget of the union and repealing council regulation no 1605 / 2002 . ### this regulation should be implemented in compliance with regulation no 966 / 2012 of the european parliament and of the council18 on the financial rules applicable to the annual budget of the european union , hereinafter called the financial regulation . the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union in order to supplement this regulation by establishing multi - annual work programmes that set out the political objectives pursued , the expected results of the support and the funding priorities in the respective policy areas . those elements should be further specified in annual work programmes adopted by implementing acts . __________________ 18 regulation no 966 / 2012 of the european parliament and of the council of 25 october 2012 on the financial rules applicable to the general budget of the union and repealing council regulation no 1605 / 2002 .


### contributions to trust funds ; ### contributions to trust funds set up by international organisations ; and


### to facilitate the evaluation of the programme , a proper framework for monitoring the results achieved by the programme should be put in place from the very beginning . a mid - term evaluation looking at the achievement of the objectives of the programme , its efficiency and its added value at the european level should be carried out . a final evaluation should , in addition , deal with the long–term impact and the sustainability effects of the programme . those evaluations should be based on the indicators , measuring the effects of the programme . ### to facilitate the evaluation of the programme , a proper framework for monitoring the results achieved by the programme should be put in place from the very beginning . an annual monitoring report on the implementation of the programme , including an analysis of the application of the criteria for assessing the request for support , an interim evaluation looking at the achievement of the objectives of the programme , its efficiency , its added value at the european level and an assessment on the future of the programme after 2020 , including alternative sources of funding , should be carried out . an ex - post evaluation should , in addition , deal with the long–term impact and the sustainability effects of the programme . those evaluations should be based on the indicators , measuring the effects of the programme .


### the power to adopt delegated acts referred to in the second subparagraph of article 15 shall be conferred on the commission for a period of four years from 1 january 2017 . ### the power to adopt delegated acts referred to in article 12 and the second subparagraph of article 15 shall be conferred on the commission for a period of four years from 1 january 2017 .


### this regulation should be implemented in compliance with regulation no 966 / 2012 of the european parliament and of the council18 on the financial rules applicable to the annual budget of the european union . the commission should adopt multi - annual work programmes that set out the political objectives pursued , the expected results of the support and the funding priorities in the respective policy areas . those elements should be further specified in annual work programmes adopted by implementing acts . __________________ 18 regulation no 966 / 2012 of the european parliament and of the council of 25 october 2012 on the financial rules applicable to the general budget of the union and repealing council regulation no 1605 / 2002 . ### this regulation should be implemented in compliance with regulation no 966 / 2012 . the commission should be empowered to adopt by delegated acts multi - annual work programmes that set out the social and economic objectives pursued , the expected results of the support and the funding priorities in the respective policy areas . the multi - annual work programmes should also set transparent criteria so as to determine which measures under the programme are to be prioritised and how available resources are to be allocated . those elements should be further specified in annual work programmes adopted by implementing acts .


### against this background , it is necessary to establish a structural reform support programme with the objective of strengthening the capacity of member states to prepare and implement growth - enhancing administrative and structural reforms , including through assistance for the efficient and effective use of the union funds . the programme is intended to contribute to the achievement of common goals towards obtaining economic recovery , job creation , boosting europe ' s competitiveness and stimulating investment in the real economy . ### against this background , it is necessary to establish a structural reform support programme with the objective of strengthening the capacity of member states to design and implement sustainable growth - enhancing administrative and structural economic and social reforms , including through assistance for the efficient and effective use of the union funds , in particular the european structural and investment funds . the programme is intended to contribute to the achievement of common goals towards obtaining economic recovery , boosting europe ' s competitiveness , creating stable and sustainable jobs , increasing productivity , stimulating sustainable investment in the real economy , and towards guaranteeing high quality health and education services , combating poverty and social exclusion and , ultimately , strengthening economic , social and territorial cohesion in the union .


### in the event of unforeseen and duly justified grounds of urgency requiring immediate response , such as a serious disturbance in the economy or significant circumstances seriously affecting the economic or social conditions in a member state going beyond its control , upon request of a member state , the commission should be able to adopt special measures , for a limited proportion of the annual work programme , in accordance with objectives and actions eligible under the programme to support the national authorities in addressing the urgent needs . ### in the event of unforeseen and duly justified grounds of urgency requiring immediate response , such as a serious disturbance in the economy or significant circumstances seriously affecting the economic or social conditions in a member state going beyond its control , upon request of a member state wishing to receive support , the commission should be able to adopt special measures , for a limited proportion of the annual work programme and for a limited period of time of up to six months , in accordance with objectives and actions eligible under the programme to support the national authorities in addressing the urgent needs . the european parliament should be fully informed about the adoption of such special measures .


### member states may benefit from support in addressing challenges as regards the design and implementation of structural reforms . these challenges may be dependent on various factors , including limited administrative and institutional capacity or inadequate application and implementation of union legislation . ### member states may benefit from support in addressing challenges as regards the design and implementation of growth - friendly structural reforms . these challenges may be dependent on various factors , including the inadequate design of reforms , limited administrative and institutional capacity or inadequate application and implementation of union legislation .


### to achieve the general objective set out in article 4 , the programme shall have the following specific objectives : ### to achieve the general objective set out in article 4 , the programme shall have the following specific objectives that shall be pursued in close cooperation with beneficiary member states :


### the specific objectives set out in paragraph 1 shall refer to policy areas related to competitiveness , growth , jobs and investment , in particular to the following : ### the specific objectives set out in paragraph 1 shall refer to policy areas related to economic , social and territorial cohesion , competitiveness , sustainable growth , jobs and investment , in particular to the following :


### financial sector policies and access to finance . ### financial sector policies , including the promotion of financial literacy , financial stability , access to finance and lending to the real economy ; the production , provision and quality monitoring of data and statistics ; and policies aiming at combating tax evasion .


### the commission may define the support envisaged for beneficiary member states in cooperation with other member states or international organisations . ### the commission may , with the consent of the beneficiary member state , organise the support in cooperation with other member states or international organisations .


### member states may benefit from support in addressing challenges as regards the design and implementation of structural reforms . these challenges may be dependent on various factors , including limited administrative and institutional capacity or inadequate application and implementation of union legislation . ### member states may benefit from support in addressing challenges as regards the design and implementation of structural reforms . these challenges may be dependent on various factors , such as limited administrative and institutional capacity , inadequate application and implementation of union legislation , and delays in its implementation .


### further to a dialogue with the requesting member state , including in the context of the european semester , the commission should analyse the request , taking into account the principles of transparency , equal treatment and sound financial management and determine the support to be provided based on urgency , breadth and depth of the problems as identified , support needs in respect of the policy areas envisaged , analysis of socioeconomic indicators , and the general administrative capacity of the member state . the commission should also , in close cooperation with the member state concerned , identify the priority areas , the scope of the support measures to be provided and the global financial contribution for such support , taking into account the existing actions and measures financed by union funds or other union programmes . ### further to a dialogue with the requesting member state , including in the context of the european semester , the commission should analyse the request , taking into account the principles of transparency , equal treatment , partnership and sound financial management and determine the support to be provided based on urgency , breadth and depth of the problems as identified , support needs in respect of the policy areas envisaged , analysis of socioeconomic indicators , and the general administrative capacity of the member state . the commission should also , in close cooperation with the member state concerned , identify the priority areas , the scope of the support measures to be provided and the global financial contribution for such support , taking into account the existing actions and measures financed by union funds or other union programmes .


### reforms are by their very nature complex processes that require a complete chain of highly - specialised knowledge and skills . addressing structural reforms in a variety of public policy areas is challenging since their benefits often take time to materialise . therefore , early and efficient design and implementation is crucial , be it for crisis - struck or structurally - weak economies . in this context , the provision of support by the union in the form of technical assistance has been crucial in supporting the economic adjustment of greece and cyprus in the last years . ### reforms are by their very nature complex processes that require a complete chain of highly - specialised knowledge and skills . addressing structural reforms in a variety of public policy areas is challenging since their benefits often take time to materialise . therefore , early and efficient design and implementation is crucial , be it for crisis - struck or structurally - weak economies . in this context , the provision of support by the union in the form of technical assistance must , in each member state , be in keeping with the requirements laid down in article 9 tfeu .


### reforms are by their very nature complex processes that require a complete chain of highly - specialised knowledge and skills . addressing structural reforms in a variety of public policy areas is challenging since their benefits often take time to materialise . therefore , early and efficient design and implementation is crucial , be it for crisis - struck or structurally - weak economies . in this context , the provision of support by the union in the form of technical assistance has been crucial in supporting the economic adjustment of greece and cyprus in the last years . ### reforms are by their very nature complex processes that require a complete chain of highly - specialised knowledge and skills . addressing structural reforms in a variety of public policy areas is challenging since their benefits often take time to materialise . therefore , early and efficient design and implementation is crucial , be it for crisis - struck or structurally - weak economies . in this context , the provision of support by the union in the form of technical assistance has been important in supporting the economic adjustment of greece and cyprus in the last years .


### support under the programme should be provided by the commission upon request by a member state , in areas such as budget and taxation , public function , institutional and administrative reforms , the justice system , anti - fraud , anti - corruption and anti - money laundering , business environment , private sector development , investment , competition , public procurement , privatization processes , access to finance , investment , trade , sustainable development , innovation , education and training , labour policies , public health , asylum , migration policies , agriculture and rural development and financial sector policies . ### support under the programme should be provided by the commission upon request by a member state , in areas such as cohesion , budget and taxation , public function , institutional and administrative reforms , the justice system , anti - fraud , anti - corruption and anti - money laundering , business environment , private sector development , investment , competition , public procurement , privatization processes , access to finance , investment , trade , sustainable development , innovation , education and training , labour policies , public health , asylum , migration policies , agriculture and rural development and financial sector policies .


### in order to implement the programme , the commission shall adopt , by way of implementing acts , multi - annual work programmes . multi - annual work programmes shall set out the policy objectives pursued through the envisaged support and the expected results , as well as funding priorities in the relevant policy areas . the multi - annual work programmes shall be further specified in annual work programmes , adopted by way of implementing acts , identifying the measures needed for their implementation , together with all the elements required by regulation no 966 / 2012 . ### the commission is empowered to adopt delegated acts in accordance with article 16 in order to supplement this regulation by establishing multi - annual work programmes . multi - annual work programmes shall set out the policy objectives pursued through the envisaged support and the expected results , as well as funding priorities in the relevant policy areas . the multi - annual work programmes shall be further specified in annual work programmes , adopted by way of implementing acts , identifying the measures needed for their implementation , together with all the elements required by regulation no 966 / 2012 .


### further to a dialogue with the requesting member state , including in the context of the european semester , the commission should analyse the request , taking into account the principles of transparency , equal treatment and sound financial management and determine the support to be provided based on urgency , breadth and depth of the problems as identified , support needs in respect of the policy areas envisaged , analysis of socioeconomic indicators , and the general administrative capacity of the member state . the commission should also , in close cooperation with the member state concerned , identify the priority areas , the scope of the support measures to be provided and the global financial contribution for such support , taking into account the existing actions and measures financed by union funds or other union programmes . ### further to a dialogue with the requesting member state , including in the context of the european semester , the commission should analyse the request , taking into account the principles of transparency , equal treatment and sound financial management and determine the support to be provided based on urgency , breadth and depth of the problems as identified , support needs in respect of the policy areas envisaged , analysis of socioeconomic indicators , and the general administrative capacity of the member state . based on this analysis and taking into account the existing actions and activities financed by union funds or other union programmes , the commission should come to an agreement with the member state concerned on the priority areas , the objectives , an indicative timeline , the scope of the support measures to be provided and the estimated global financial contribution for such support , to be set out in a cooperation and support plan . the european parliament should be fully informed regarding the receipt of a request for support under the programme and of the analysis undertaken by the commission . the commission should provide the cooperation and support plan to the european parliament as soon as possible .


### the financial interests of the union should be protected through proportionate measures throughout the expenditure cycle , including the prevention , detection and investigation of irregularities , the recovery of funds lost , wrongly paid or incorrectly used and , where appropriate , penalties . ### the financial interests of the union should be protected through proportionate measures throughout the expenditure cycle , including the prevention , detection and investigation of irregularities , the recovery of funds lost , unduly paid or incorrectly used and , where appropriate , administrative and financial penalties in accordance with regulation no 966 / 2012 .


### to achieve the general objective set out in article 4 , the programme shall have the following specific objectives : to assist the initiatives of national authorities to design their reforms according to priorities , taking into account initial conditions and expected socio - economic impacts ; to support the national authorities to enhance their capacity to formulate , develop and implement reform policies and strategies and pursue an integrated approach ensuring consistency between goals and means across sectors ; to support the efforts of national authorities to define and implement appropriate processes and methodologies by taking into account good practices and lessons learned by other countries in addressing similar situations ; to assist the national authorities to enhance the efficiency and effectiveness of human resources management , where appropriate , through definition of clear responsibilities and increase of professional knowledge and skills . these objectives shall be pursued in close cooperation with beneficiary member states . 2 . the specific objectives set out in paragraph 1 shall refer to policy areas related to competitiveness , growth , jobs and investment , in particular to the following : public financial management , budget process , debt management and revenue administration ; institutional reform and efficient and service - oriented functioning of public administration , effective rule of law , reform of the justice system and reinforcement of anti - fraud , anti - corruption and anti - money laundering ; business environment , private sector development , investment , privatization processes , trade and foreign direct investment , competition and public procurement , sustainable sectoral development and support for innovation ; education and training , labour market policies , social inclusion , social security and social welfare systems , public health and healthcare systems , asylum , migration and borders policies ; policies for the agricultural sector and the sustainable development of rural areas ; financial sector policies and access to finance . ### to achieve the general objective set out in article 4 , the programme shall have the following specific objectives . to assist the initiatives of national , regional and local authorities to design their reforms according to priorities , taking into account initial conditions and expected socio - economic impacts ; to support the national regional and local authorities to enhance their capacity to formulate , develop and implement reform policies and strategies and pursue an integrated approach ensuring consistency between goals and means across sectors ; to support competent authorities to improve systems and policies in the field of education , training and access to culture , which should be universal , of high quality , sustainable , inclusive , promote excellence , research and development at every level ; to support the efforts of national , regional and local authorities to define and implement appropriate processes and methodologies by taking into account good practices and lessons learned by other countries in addressing similar situations ; to assist the national , regional and local authorities to enhance the efficiency and effectiveness of human resources management , where appropriate , through definition of clear responsibilities and increase of professional knowledge and skills . to encourage the involvement of citizens in decision - making through consultations and to strengthen citizenship through participatory elements . these objectives shall be pursued upon the request of beneficiary member states and in close cooperation with them . 2 . the member state shall , in consultation with its competent authorities , where applicable with its regional authorities , determine the policy areas it wishes to tackle in accordance with specific national and regional needs .


### to facilitate the evaluation of the programme , a proper framework for monitoring the results achieved by the programme should be put in place from the very beginning . a mid - term evaluation looking at the achievement of the objectives of the programme , its efficiency and its added value at the european level should be carried out . a final evaluation should , in addition , deal with the long–term impact and the sustainability effects of the programme . those evaluations should be based on the indicators , measuring the effects of the programme . ### to facilitate the evaluation of the programme , a proper framework for monitoring the results achieved by the programme should be put in place from the very beginning . an annual monitoring report on the implementation of the programme , including an analysis of the application of the criteria for assessing the request for support , an interim evaluation looking at the achievement of the objectives of the programme , its efficiency , its added value at the european level and an assessment on the future of the programme after 2020 , including alternative sources of funding , should be carried out . an ex - post evaluation should , in addition , deal with the long–term impact and the sustainability effects of the programme . those evaluations should be based on the indicators , measuring the effects of the programme .


### against this background , it is necessary to establish a structural reform support programme with the objective of strengthening the capacity of member states to prepare and implement growth - enhancing administrative and structural reforms , including through assistance for the efficient and effective use of the union funds . the programme is intended to contribute to the achievement of common goals towards obtaining economic recovery , job creation , boosting europe ' s competitiveness and stimulating investment in the real economy . ### against this background , it is necessary to establish a structural reform support programme with the objective of strengthening the capacity of member states to prepare and implement growth - enhancing administrative and structural reforms , including through assistance for the efficient and effective use of the union funds , in particular the european structural and investment funds . the programme is intended to contribute to the achievement of common goals towards obtaining economic recovery , economic , social and territorial cohesion , job creation , boosting europe ' s competitiveness and stimulating investment in the real economy .


### the union has a long - lasting experience on providing specific support to national administrations and other authorities of member states as regards capacity building and similar actions in certain sectors and in relation to the implementation of cohesion policy . the experience gained by the union in assisting national authorities carrying out reforms should be used in order to enhance the capacity of the union to provide support to member states . comprehensive and integrated action is indeed necessary in order to provide support to those member states that are undertaking growth - enhancing reforms and request assistance from the union in this respect . ### the union has a long - lasting experience on providing specific support to national administrations and other authorities of member states as regards capacity building and similar actions in certain sectors and in relation to the implementation of cohesion policy . the experience gained by the union in assisting national authorities carrying out reforms should be used in order to enhance the capacity of the union to provide support to member states . comprehensive and integrated action is indeed necessary in order to provide support to those member states that are undertaking growth - enhancing reforms and request assistance from the union in this respect . at all events , the purpose of assistance must be to improve social well - being by helping to increase employment rates , combating exclusion and poverty and promoting high levels of social protection and high - quality health and education services .


### the general objective of the programme shall be to contribute to institutional , administrative and structural reforms in the member states by providing support to national authorities for measures aimed at reforming institutions , governance , administration , economic and social sectors in response to economic and social challenges with a view to enhancing competitiveness , growth , jobs , and investment , in particular in the context of economic governance processes , including through assistance for the efficient and effective use of the union funds . ### the general objective of the programme shall be to help member states to boost their growth , investment and policies for the creation of good jobs , social welfare and the fight against poverty and social exclusion , as well as to become more competitive , by taking measures aimed at reforming institutions , governance , administration , economic and social sectors in response to economic and social challenges with a view to enhancing social well - being , in particular in the context of economic governance processes with a social dimension , including through assistance for the efficient and effective use of the union funds .


### considering the importance of sustaining the efforts of member states in pursuing and implementing structural , institutional and administrative reforms , it is necessary to allow a co - financing rate of 100% of the eligible costs in order to achieve the objectives of the programme , whilst ensuring compliance with the principles of co - financing and no - profit . ### considering the importance of sustaining the efforts of member states in pursuing and implementing structural , institutional and administrative reforms , it is necessary to allow a co - financing rate for grants of up to 100% of the eligible costs in order to achieve the objectives of the programme , whilst ensuring compliance with the principles of co - financing and no - profit .


### taking into account the principles of transparency , equal treatment and sound financial management , further to a dialogue with the member state , including in the context of the european semester , the commission shall analyse the request for support referred to in paragraph 1 based on the urgency , breadth and depth of the problems identified , support needs in respect of the policy areas concerned , analysis of socioeconomic indicators and general administrative capacity of the member state . taking into account the existing actions and measures financed by union funds or other union programmes , the commission in close cooperation with the member state concerned shall identify the priority areas for support , the scope of the support measures to be provided and the global financial contribution for such support . ### taking into account the principles of subsidiarity , transparency , equal treatment , partnership and sound financial management , further to a dialogue with the member state , including in the context of the european semester , the commission shall analyse the request for support referred to in paragraph 1 based on the urgency , breadth and depth of the problems identified , support needs in respect of the policy areas concerned , analysis of socioeconomic indicators and general administrative capacity of the member state . taking into account the existing actions and measures financed by union funds or other union programmes , the commission in close cooperation with the member state concerned shall identify the priority areas for support , the scope of the support measures to be provided and the global financial contribution for such support .


### the commission communications ‘ the eu budget review’1 and ‘ a budget for europe 2020’2 underline the importance of focusing funding on activities with clear european added value , i . e . where the union intervention can bring additional value compared to action of member states alone . against this background , the support actions carried out under the programme should ensure complementarity and synergy with other programmes and policies at national , union and international level . the actions under the programme should allow elaborating and implementing solutions that address national challenges which have impact on cross - border or union - wide challenges and achieve a consistent and coherent implementation of union law . in addition , they should contribute to further develop trust and promote cooperation with the commission and among member states . moreover , the union is in a better position than member states to provide a platform for the provision and sharing of good practices from peers as well as to mobilise expertise . __________________ 1com700 of 19 october 2010 . 2com500 final of 29 june 2011 . ### the commission communications ‘ the eu budget review’1 and ‘ a budget for europe 2020’2 underline the importance of focusing funding on activities with clear european added value , i . e . where the union intervention can bring additional value compared to action of member states alone . against this background , the support actions carried out under the programme should ensure complementarity and synergy with other programmes and policies at national , union and international level . the actions under the programme should allow elaborating and implementing solutions that address national challenges which have impact on cross - border or union - wide challenges and achieve a consistent and coherent implementation of union law . in addition , they should contribute to further develop trust of citizens in the european project and promote cooperation with the commission and among member states . moreover , the union is in a better position than member states to provide a platform for the provision and sharing of good practices from peers as well as to mobilise expertise , so that proposals are able to be tailored to the specific situation in the requesting member states . __________________ 1com700 of 19 october 2010 . 2com500 final of 29 june 2011 .


### communication projects : learning , cooperation , awareness raising , dissemination activities , and exchange of good practices ; organisation of awareness - raising and information campaigns , media campaigns and events , including corporate communication ; ### communication projects : learning , cooperation , awareness raising , dissemination activities , and exchange of good practices ; organisation of specific awareness - raising and information campaigns for various sections of the public , media campaigns and events , including corporate communication and communication through social networks ;


### the commission communications ‘ the eu budget review’13 and ‘ a budget for europe 2020’14 underline the importance of focusing funding on activities with clear european added value , i . e . where the union intervention can bring additional value compared to action of member states alone . against this background , the support actions carried out under the programme should ensure complementarity and synergy with other programmes and policies at national , union and international level . the actions under the programme should allow elaborating and implementing solutions that address national challenges which have impact on cross - border or union - wide challenges and achieve a consistent and coherent implementation of union law . in addition , they should contribute to further develop trust and promote cooperation with the commission and among member states . moreover , the union is in a better position than member states to provide a platform for the provision and sharing of good practices from peers as well as to mobilise expertise . __________________ 13 com700 of 19 october 2010 . 14 com500 final of 29 june 2011 . ### the commission communications ‘ the eu budget review’13 and ‘ a budget for europe 2020’14 underline the importance of focusing funding on actions and activities with clear european added value , i . e . where the union intervention can bring additional value compared to action of member states alone . against this background , the support actions and activities carried out under the programme should ensure complementarity and synergy with other programmes and policies at regional , national and union levels , as set out in the common strategic framework established under regulation no 1303 / 2013 of the european parliament and of the council , as well as the international level where appropriate . the actions and activities under the programme should allow elaborating and implementing solutions that address national challenges which have impact on cross - border or union - wide challenges and achieve a consistent and coherent implementation of union law . in addition , they should contribute to further develop trust and promote cooperation with the commission and among member states . moreover , the union is in a better position than member states to provide a platform for the provision and sharing of good practices from peers as well as to mobilise expertise . __________________ 13 com700 of 19 october 2010 . 14 com500 final of 29 june 2011 .


### taking into account the principles of transparency , equal treatment and sound financial management , further to a dialogue with the member state , including in the context of the european semester , the commission shall analyse the request for support referred to in paragraph 1 based on the urgency , breadth and depth of the problems identified , support needs in respect of the policy areas concerned , analysis of socioeconomic indicators and general administrative capacity of the member state . taking into account the existing actions and measures financed by union funds or other union programmes , the commission in close cooperation with the member state concerned shall identify the priority areas for support , the scope of the support measures to be provided and the global financial contribution for such support . ### taking into account the principles of transparency , equal treatment and sound financial management , further to a dialogue with the member state , including in the context of the european semester , the commission shall analyse the request for support referred to in paragraph 1 of this article based on the urgency , breadth and depth of the problems identified , support needs in respect of the policy areas concerned , analysis of socioeconomic indicators and general administrative capacity of the member state . based on this analysis and taking into account the existing actions and activities financed by union funds or other union programmes , the commission shall come to an agreement with the member state concerned on the priority areas for support , the objectives , an indicative timeline , the scope of the support to be provided and the estimated global financial contribution for such support in a cooperation and support plan .


### support under the programme should be provided by the commission upon request by a member state , in areas such as budget and taxation , public function , institutional and administrative reforms , the justice system , anti - fraud , anti - corruption and anti - money laundering , business environment , private sector development , investment , competition , public procurement , privatization processes , access to finance , investment , trade , sustainable development , innovation , education and training , labour policies , public health , asylum , migration policies , agriculture and rural development and financial sector policies . ### support under the programme should be provided by the commission upon request by a member state , in areas such as budget and taxation , public function , institutional and administrative reforms , the justice system , anti - fraud , anti - corruption and anti - money laundering , business environment , private sector development , investment , competition , public procurement , privatization processes , access to finance , partnerships to attract investment , trade , sustainable development , innovation , education and training , labour policies , public health , asylum , migration policies , agriculture and rural development and financial sector policies .


### their complementarity and synergy with other union programmes and policies at national , union and international level ; ### their complementarity and synergy with other union programmes and policies at national , regional , local , union and international level ;


### to assist the initiatives of national authorities to design their reforms according to priorities , taking into account initial conditions and expected socio - economic impacts ; ### to assist the initiatives of national authorities to design and implement their sustainable reforms according to priorities and the principle of subsidiarity , taking into account initial conditions and expected socio - economic impacts


### against this background , it is necessary to establish a structural reform support programme with the objective of strengthening the capacity of member states to prepare and implement growth - enhancing administrative and structural reforms , including through assistance for the efficient and effective use of the union funds . the programme is intended to contribute to the achievement of common goals towards obtaining economic recovery , job creation , boosting europe’s competitiveness and stimulating investment in the real economy . ### against this background , it is necessary to establish a structural reform support programme with the objective of strengthening the capacity of member states to prepare and implement growth - enhancing administrative and structural reforms , including through assistance for the efficient and effective use of the union funds . the programme is intended to contribute to the achievement of common goals towards obtaining economic recovery , job creation , guaranteeing a high level of social welfare and high - quality health and education services , combating poverty and social exclusion and boosting europe’s competitiveness and stimulating investment in the real economy .


### member states may benefit from support in addressing challenges as regards the design and implementation of structural reforms . these challenges may be dependent on various factors , including limited administrative and institutional capacity or inadequate application and implementation of union legislation . ### member states may benefit from support in addressing challenges as regards the design and implementation of structural reforms . these challenges may be dependent on various factors , including limited administrative and institutional capacity or inadequate application and implementation of union legislation designed to support growth .


### in order to adapt the list of indicators measuring the achievement of the objectives of the programme , in the light of experience during the implementation of the programme , the power to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the amendment of the list . it is of particular importance that the commission carries out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and to the council . ### in order to adapt the list of indicators measuring the achievement of the objectives of the programme , in the light of experience during the implementation of the programme , the power to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the amendment of the list .


### support may also be provided by individual experts who may be invited to contribute to selected activities organised under the programme wherever that is necessary for the achievement of the specific objectives set out in articles 5 . ### support may also be provided by individual experts who may be invited to contribute to selected activities organised under the programme wherever that is necessary for the achievement of the specific objectives set out in article 5 .


### ensure close cooperation between those responsible for implementation at union and national level to deliver coherent and streamlined support actions . ### ensure close cooperation between those responsible for implementation at union , national and regional level to deliver coherent and streamlined support actions . the commission shall make its best effort to ensure complementarity and synergies with support provided by other relevant international organisations .


### the interim evaluation report shall include information on the achievement of the programme ' s objectives , the efficiency of the use of resources and the programme’s european added value and assessment on whether funding in areas covered by the programme needs to be adapted or extended after 2020 . it shall also address the continued relevance of all objectives and actions . the ex - post evaluation report shall include information on the longer - term impact of the programme . ### the interim evaluation report shall include information on the achievement of the programme ' s objectives , the efficiency of the use of resources and the programme ' s european added value and assessment on whether funding in areas covered by the programme needs to be adapted or extended or suspended after 2020 , and if other funding sources could be considered . it shall also address the continued relevance of all objectives and actions . the ex - post evaluation report shall include information on the longer - term impact of the programme .


### against this background , it is necessary to establish a structural reform support programme with the objective of strengthening the capacity of member states to prepare and implement growth - enhancing administrative and structural reforms , including through assistance for the efficient and effective use of the union funds . the programme is intended to contribute to the achievement of common goals towards obtaining economic recovery , job creation , boosting europe ' s competitiveness and stimulating investment in the real economy . ### against this background , it is necessary to establish a structural reform support programme with the objective of strengthening the capacity of member states to design and implement sustainable growth - enhancing administrative and structural economic and social reforms , including through assistance for the efficient and effective use of the union funds , in particular the european structural and investment funds . the programme is intended to contribute to the achievement of common goals towards obtaining economic recovery , boosting europe ' s competitiveness , creating stable and sustainable jobs , increasing productivity , stimulating sustainable investment in the real economy , and towards guaranteeing high quality health and education services , combating poverty and social exclusion and , ultimately , strengthening economic , social and territorial cohesion in the union .


### in order to implement the programme , the commission shall adopt , by way of implementing acts , multi - annual work programmes . multi - annual work programmes shall set out the policy objectives pursued through the envisaged support and the expected results , as well as funding priorities in the relevant policy areas . the multi - annual work programmes shall be further specified in annual work programmes , adopted by way of implementing acts , identifying the measures needed for their implementation , together with all the elements required by regulation no 966 / 2012 . ### the commission is empowered to adopt delegated acts in accordance with article 16 in order to supplement this regulation by establishing multi - annual work programmes . multi - annual work programmes shall set out the policy objectives pursued through the envisaged support and the expected results , as well as funding priorities in the relevant policy areas . the multi - annual work programmes shall be further specified in annual work programmes , adopted by way of implementing acts , identifying the measures needed for their implementation , together with all the elements required by regulation no 966 / 2012 .


### against this background , it is necessary to establish a structural reform support programme with the objective of strengthening the capacity of member states to prepare and implement growth - enhancing administrative and structural reforms , including through assistance for the efficient and effective use of the union funds . the programme is intended to contribute to the achievement of common goals towards obtaining economic recovery , job creation , boosting europe ' s competitiveness and stimulating investment in the real economy . ### against this background , it is necessary to establish a structural reform support programme with the objective of strengthening the capacity of member states to prepare and implement growth - enhancing administrative and structural reforms , including through assistance for the efficient and effective use of the union funds , in particular the european structural and investment funds . the programme is intended to contribute to the achievement of common goals towards obtaining economic recovery , economic , social and territorial cohesion , job creation , boosting europe ' s competitiveness and stimulating investment in the real economy .


### to facilitate the evaluation of the programme , a proper framework for monitoring the results achieved by the programme should be put in place from the very beginning . a mid - term evaluation looking at the achievement of the objectives of the programme , its efficiency and its added value at the european level should be carried out . a final evaluation should , in addition , deal with the long–term impact and the sustainability effects of the programme . those evaluations should be based on the indicators , measuring the effects of the programme . ### to facilitate the evaluation of the programme , a proper framework for monitoring the results achieved by the programme should be put in place from the very beginning . a mid - term evaluation looking at the achievement of the objectives of the programme , its efficiency and its added value at the european level should be carried out . a final evaluation should , in addition , deal with the long–term impact and the sustainability effects of the programme . those evaluations should be based on the indicators defined in agreement with the member states , measuring the effects of the programme .


### the commission shall provide the european parliament and the council with an interim evaluation report , by mid of 2019 , at the latest , and an ex - post evaluation report by end of december 2021 . ### the commission shall provide the european parliament and the council with an annual monitoring report on the implementation of the programme including an analysis of the application of the criteria referred to in article 7 for assessing the requests for support submitted by member states , an interim evaluation report , by mid of 2019 , at the latest , and an ex - post evaluation report by end of december 2021 .


### to foster the competitiveness and innovation capacity of the union defence industry by supporting actions in their development phase ; ### to foster the integration , competitiveness and innovation capacity of the union defence industry by supporting actions in their development phase and by supporting the development and acquisition of new skills of the workers in the defence sector that will allow the european defence industry to deliver high - tech solutions in a global setting ;


### for actions described in points to of article 6 , the contribution to the competitiveness of the european defence industry through the demonstration by the beneficiaries that member states have committed to jointly produce and procure the final product or technology in a coordinated way , including joint procurement where applicable . ### for actions described in points to of article 6 , the contribution to the competitiveness of the european defence industry and to the reinforcement of the european single market for defence through the demonstration by the beneficiaries that member states have committed to jointly produce and procure the final product or technology in a coordinated way , including joint procurement where applicable . in order to provide a more flexible , open and competitive procurement suitable for defence equipment and markets , it is imperative to better implement directive 2009 / 81 / ec on defence and security procurement ; the use of exemptions foreseen in that directive shall be duly justified ;


### to support and leverage the cooperation between undertakings , including small and medium - sized enterprises , in the development of technologies or products in line with defence capability priorities commonly agreed by member states within the union ; ### to support and leverage the cross - border cooperation between undertakings in view of supporting integrated actions in the single market for defence , including the involvement of small and medium - sized enterprises , in the development of technologies or products in line with defence capability priorities commonly agreed by member states within the union ;


### the action shall be undertaken in a cooperation of at least three undertakings which are established in at least two different member states . the undertakings which are beneficiaries shall not effectively be controlled , directly or indirectly , by the same entity or shall not control each other . ### the action shall be undertaken in a cooperation of at least three undertakings which are established in at least three different member states . the undertakings which are beneficiaries shall not effectively be controlled , directly or indirectly , by the same entity or shall not control each other .


### in order to contribute to the enhancement of the competitiveness and innovation capacity of the union ' s defence industry , a european defence industrial development programme should be established . the programme should aim at enhancing the competitiveness of the union ' s defence industry inter alia cyber defence by supporting the cooperation between undertakings in the development phase of defence products and technologies . the development phase , which follows the research and technology phase , entails significant risks and costs that hamper the further exploitation of the results of research and adversely impact the competitiveness of the union ' s defence industry . by supporting the development phase , the programme would contribute to a better exploitation of the results of defence research and it would help to cover the gap between research and production as well as to promote all forms of innovation . the programme should complement activities carried out in accordance with article 182 tfeu and it does not cover the production of defence products and technologies . ### in order to contribute to the enhancement of the competitiveness and innovation capacity of the union ' s defence industry , a european defence industrial development programme should be established . the programme should aim at enhancing the competitiveness of the union ' s defence industry , inter alia the cyber defence industry , which is a priority of the defence industry , taking into account developments in the speed and sophistication of cyber - attacks , by supporting the cooperation between undertakings in the development phase of defence products and technologies . the development phase , which follows the research and technology phase , entails significant risks and costs that hamper the further exploitation of the results of research and adversely impact the competitiveness of the union ' s defence industry . by supporting the development phase , the programme would contribute to a better exploitation of the results of defence research and it would help to cover the gap between research and production as well as to promote all forms of innovation . the programme should complement activities carried out in accordance with article 182 tfeu and it does not cover the production of defence products and technologies .


### the commission should draw up an implementation report at the end of the programme , examining the financial activities in terms of financial implementation results and where possible , impact . this report should also analyse the cross border participation of smes in projects under the programme as well as the participation of smes to the global value chain . ### the commission should draw up an implementation and evaluation report at the end of each year of the programme , examining and evaluating the financial activities in terms of financial implementation results and where possible , impact . this report should also analyse the cross border participation of smes in projects under the programme as well as the participation of smes to the global value chain .


### the commission should draw up an implementation report at the end of the programme , examining the financial activities in terms of financial implementation results and where possible , impact . this report should also analyse the cross border participation of smes in projects under the programme as well as the participation of smes to the global value chain . ### the commission should draw up implementation reports at the end of the first year and at the end of the programme , examining the financial activities in terms of financial implementation results and where possible , impact . this report should also analyse the cross border participation of smes in projects under the programme as well as the participation of smes to the global value chain .


### to support greater efficiency and effectiveness of future union policy actions , the commission shall draw up a retrospective evaluation report and send it to the european parliament and to the council . the report - building on relevant consultations of member states and key stakeholders - shall notably assess the progress made towards the achievement of objectives set out in article 2 . it shall also analyse cross border participation of smes in projects implemented under the programme as well as the participation of smes to the global value chain . ### the commission shall draw up an annual monitoring report examining the efficiency and effectiveness of supported actions in terms of financial implementation , results , costs and , where possible , impact . to support greater efficiency and effectiveness of future union policy actions , the commission shall draw up an annual evaluation report and send it to the european parliament and to the council . the report - building on relevant consultations of member states and key stakeholders - shall notably assess the progress made towards the achievement of objectives set out in article 2 . it shall also analyse cross border participation of smes in projects implemented under the programme as well as the participation of smes to the global value chain .


### to foster the competitiveness and innovation capacity of the union defence industry by supporting actions in their development phase ; ### to foster the innovation capacity of the union defence industry , especially cyberdefence , by supporting actions in their development phase ;


### as the objective of the programme is to support the competitiveness of the union defence industry by de - risking the development phase of cooperative projects , actions related to the development of a defence product or technology , namely definition of common technical specifications , design , prototyping , testing , qualification , certification as well feasibility studies and other supporting measures , should be eligible to benefit from it . this will also apply to the upgrade of existing defence products and technologies . ### as the objective of the programme is to support the competitiveness and integration of the union defence industry by de - risking the development phase of cooperative projects , actions related to the development of a defence product or technology , namely definition of common technical specifications , standards , design , prototyping , testing , qualification , certification as well feasibility studies and other supporting measures , should be eligible to benefit from it . this will also apply to the upgrade of existing defence products and technologies , as well as actions aimed at the skills development of workers of the defence industry .


### the commission , by means of an implementing act , shall adopt multiannual a work programme for the duration of the programme . this implementing act shall be adopted in accordance with the examination procedure referred to in in article 16 . this work programme shall be in line with the objectives set out in article 2 ; ### the commission , shall be empowered to adopt delegated acts to establish a multiannual work programme for the duration of the programme . these delegated acts shall be adopted in accordance with the examination procedure referred to in in article 16 . this work programme shall be in line with the objectives set out in article 2 ;


### as the objective of the programme is to support the competitiveness of the union defence industry by de - risking the development phase of cooperative projects , actions related to the development of a defence product or technology , namely definition of common technical specifications , design , prototyping , testing , qualification , certification as well feasibility studies and other supporting measures , should be eligible to benefit from it . this will also apply to the upgrade of existing defence products and technologies . ### as the objective of the programme is to support the integration of the union defence industry by bearing some of the risk of the development phase of cooperative projects , actions related to the development of a defence product or technology , namely definition of common technical specifications , design , prototyping , testing , qualification , certification as well feasibility studies and other supporting measures as well as actions aimed at converting military production lines into civilian production lines , should be eligible to benefit from it . this will also apply to the upgrade of existing defence products and technologies .


### the commission shall not own the products or technologies resulting from the action nor shall it have any ipr claim pertaining to the action . ### the union institutions , bodies , offices or agencies enjoy , for the duly justified purpose of developing , implementing and monitoring union policies or programmes , access rights solely to the results of a beneficiary that has received union funding . such access rights shall be limited to non - commercial and non - competitive use . such access shall be granted on a royalty - free basis . with regard to results which are generated by beneficiaries that have received funding under the programme , the agreement between the commission and the beneficiary shall provide that the commission may object to transfers of ownership or to grants of a licence to third parties established in a third country not associated with the programme , if it considers that the grant or transfer is inconsistent with ethical principles of the common position on arms exports or security considerations . where appropriate , the agreement between the commission and the beneficiary shall provide that the commission is to be notified at least six months in advance of any such transfer of ownership or grant of a licence . non - compliance with these provisions shall be subject to the measures stipulated in regulation no 966 / 2012 and regulation no 1268 / 2012 .


### beneficiaries shall be undertakings established in the union , in which member states and / or nationals of member states own more than 50% of the undertaking and effectively control it within the meaning of article 6 , whether directly or indirectly through one or more intermediate undertakings . in addition , all infrastructure , facilities , assets and resources used by the participants , including subcontractors and other third parties , in actions funded under the programme shall not be located on the territory of non - member states during the entire duration of the action . ### beneficiaries shall be undertakings established in the union or in a third country identified in the work programme . all infrastructure , facilities , assets and resources used by the participants , including subcontractors and other third parties , in actions funded under the programme shall be located on the territory of the member states or third countries identified in the work programme during the entire duration of the action .


### to support and leverage the cooperation between undertakings , including small and medium - sized enterprises , in the development of technologies or products in line with defence capability priorities commonly agreed by member states within the union ; ### to support and leverage the cooperation between undertakings , including small and medium - sized enterprises , in the development of technologies or products in line with defence capability priorities commonly agreed by member states within the union including the development of cyberdefence capabilities and cybersecurity solutions for the defence industry ;


### to support greater efficiency and effectiveness of future union policy actions , the commission shall draw up a retrospective evaluation report and send it to the european parliament and to the council . the report - building on relevant consultations of member states and key stakeholders - shall notably assess the progress made towards the achievement of objectives set out in article 2 . it shall also analyse cross border participation of smes in projects implemented under the programme as well as the participation of smes to the global value chain . ### to support greater efficiency and effectiveness of future union policy actions , the commission shall draw up an interim evaluation report after the first year of the programme and a retrospective evaluation report at the end of the programme . those reports shall be submitted to the european parliament and to the council within reasonable time . the reports - building on relevant consultations of member states and key stakeholders - shall notably assess the progress made towards the achievement of objectives set out in article 2 . it shall also analyse cross border participation of smes in projects implemented under the programme as well as the participation of smes to the global value chain .


### given that the programme aims particularly at enhancing cooperation between undertakings across member states , an action should be eligible for funding under the programme only if it is undertaken by a cooperation of at least three undertakings based in at least two different member states . ### given that the programme aims particularly at enhancing cooperation between public or private undertakings across member states , an action should be eligible for funding under the programme only if it is undertaken by a cooperation of at least three undertakings based in at least three different member states .


### the promotion of innovation and technological development in the union defence industry should take place in a manner coherent with the security interests of the union . accordingly , the action ' s contribution to those interests and to the defence capability priorities commonly agreed by member states should serve as an award criterion . within the union , common defence capability priorities are identified notably through the capability development plan . other union processes such as the coordinated annual review on defence and the permanent structured cooperation will support the implementation of relevant priorities through enhanced cooperation . where appropriate regional or international cooperative initiatives , such as in the nato context , and serving the union security and defence interest , may also be taken into account . ### the promotion of innovation and technological development in the union defence industry should take place in a manner coherent with the security interests of the union and in compliance with international law , also taking into consideration the concerns about lethal automated weapons systems in the context of the un convention on certain conventional weapons and the european parliament ' s resolution of 27 february 2014 on the use of armed drones . accordingly , the action ' s contribution to those interests and to the defence capability priorities commonly agreed by member states should serve as an award criterion . within the union , common defence capability priorities are identified notably through the capability development plan . other union processes such as the coordinated annual review on defence and the permanent structured cooperation will support the implementation of relevant priorities through enhanced cooperation . where appropriate regional or international cooperative initiatives , such as in the nato context , and serving the union security and defence interest , may also be taken into account .


### as the programme aims at enhancing the competitiveness of the union ' s defence industry , only entities established in the union and effectively controlled by member states or their nationals should be eligible for support . additionally , in order to ensure the protection of essential security interests of the union and its member states , the infrastructure , facilities , assets and resources used by the beneficiaries and subcontractors in actions funded under the programme , shall not be located on the territory of non - member states . ### as the programme aims at enhancing the integration of the union ' s defence industry , only entities established in the union and effectively controlled by member states or their nationals should be eligible for support . additionally , in order to ensure the protection of essential security interests of the union and its member states , the infrastructure , facilities , assets and resources used by the beneficiaries and subcontractors in actions funded under the programme , shall not be located on the territory of non - member states .


### the action shall be undertaken in a cooperation of at least three undertakings which are established in at least two different member states . the undertakings which are beneficiaries shall not effectively be controlled , directly or indirectly , by the same entity or shall not control each other . ### the action shall be undertaken in a cooperation of at least four undertakings which are established in at least four different member states . the undertakings which are beneficiaries shall not effectively be controlled , directly or indirectly , by the same entity or shall not control each other .


### the amount for the implementation of the programme for the period 2019 - 2020 is set at eur 500 million in current prices . ### the amount for the implementation of the programme for the period 2019 - 2020 is set at eur 125 million in current prices , to be drawn exclusively from the unallocated margins under the 2014 - 2020 multiannual financial framework ceilings . additional spending from the union budget shall be compensated by savings in national defence budgets .


### as the objective of the programme is to support the competitiveness of the union defence industry by de - risking the development phase of cooperative projects , actions related to the development of a defence product or technology , namely definition of common technical specifications , design , prototyping , testing , qualification , certification as well feasibility studies and other supporting measures , should be eligible to benefit from it . this will also apply to the upgrade of existing defence products and technologies . ### as the objective of the programme is to support the competitiveness of the union defence industry by bearing some of the risk of the development phase of cooperative projects , actions related to the development of a defence product or technology , namely definition of common technical specifications and standards , design , prototyping , testing , qualification , certification as well feasibility studies and other supporting measures , should be eligible to benefit from it .


### in order to contribute to the enhancement of the competitiveness and innovation capacity of the union ' s defence industry , a european defence industrial development programme should be established . the programme should aim at enhancing the competitiveness of the union ' s defence industry inter alia cyber defence by supporting the cooperation between undertakings in the development phase of defence products and technologies . the development phase , which follows the research and technology phase , entails significant risks and costs that hamper the further exploitation of the results of research and adversely impact the competitiveness of the union ' s defence industry . by supporting the development phase , the programme would contribute to a better exploitation of the results of defence research and it would help to cover the gap between research and production as well as to promote all forms of innovation . the programme should complement activities carried out in accordance with article 182 tfeu and it does not cover the production of defence products and technologies . ### in order to contribute to the enhancement of the competitiveness and innovation capacity of the union ' s defence industry , a european defence industrial development programme should be established . the programme should aim at enhancing the competitiveness of the union ' s defence industry , in particular the cyber defence industry , by supporting the cooperation between undertakings in the development phase of defence products and technologies . the programme should lead to efficiency gains enabling the reduction of the overall defence spending in the union . the development phase , which follows the research and technology phase , entails significant risks and costs that hamper the further exploitation of the results of research and adversely impact the competitiveness of the union ' s defence industry . by supporting the development phase , the programme would contribute to a better exploitation of the results of defence research and it would help to cover the gap between research and production as well as to promote all forms of innovation . the programme should complement activities carried out in accordance with article 182 tfeu and it does not cover the production of defence products and technologies .


### in the european defence action plan , adopted on 30 november 2016 , the commission committed to complement , leverage and consolidate collaborative efforts by member states in developing defence capabilities to respond to security challenges , as well as to foster a competitive and innovative european defence industry . it proposed in particular to launch a european defence fund to support investment in joint research and the joint development of defence equipment and technologies . the fund would support cooperation during the whole cycle of defence product and technology development . ### in the european defence action plan , adopted on 30 november 2016 , the commission committed to complement , leverage and consolidate collaborative efforts by member states in developing defence capabilities to respond to security challenges , as well as to foster a competitive and innovative european defence industry . it proposed in particular to launch a european defence fund to support investment in joint research and the joint development of defence equipment and technologies . the fund would support cooperation during the whole cycle of defence product and technology development , as well as undertakings in the scope of conversion from military to civilian production .


### creation of the right conditions to empower all actors of the internal market , including businesses , citizens and consumers , civil society and public authorities through transparent information and awareness raising campaigns , best practice exchange , promotion of good practices , exchange and dissemination of expertise and knowledge and organization of trainings ; ### creation of the right conditions to empower all actors of the internal market , including citizens and consumers , businesses , &#160 ; civil society and public authorities through transparent information and awareness raising campaigns , best practice exchange , promotion of good practices , exchange and dissemination of expertise and knowledge and organization of trainings ;


### against this background , it is necessary to establish a structural reform support programme with the objective of strengthening the capacity of member states to prepare and implement growth - enhancing administrative and structural reforms , including through assistance for the efficient and effective use of the union funds . the programme is intended to contribute to the achievement of common goals towards obtaining economic recovery , job creation , boosting europe ' s competitiveness and stimulating investment in the real economy . ### against this background , it is necessary to establish a structural reform support programme with the objective of strengthening the capacity of member states to design , prepare and implement sustainable growth - enhancing administrative and structural reforms , including through assistance for the efficient and effective use of the union funds , in particular the european structural and investment funds . the programme is intended to contribute to the achievement of common goals towards obtaining economic recovery , job creation , boosting europe ' s competitiveness and stimulating investment in the real economy and economic and social cohesion . the programme is not intended as an incentive mechanism but as a support for member states in their reform agenda .


### the union has a long - lasting experience on providing specific support to national administrations and other authorities of member states as regards capacity building and similar actions in certain sectors and in relation to the implementation of cohesion policy . the experience gained by the union in assisting national authorities carrying out reforms should be used in order to enhance the capacity of the union to provide support to member states . comprehensive and integrated action is indeed necessary in order to provide support to those member states that are undertaking growth - enhancing reforms and request assistance from the union in this respect . ### the union ' s institutions and bodies have a long - lasting experience in providing specific support to national and / or subnational authorities of member states as regards capacity building and similar actions in certain sectors and in relation to the implementation of cohesion policy . the experience gained by the union ' s institutions and bodies in assisting national and regional authorities designing and carrying out inclusive and sustainable reforms should be used in order to enhance the capacity of the union to provide support to interested member states to help improve their growth potential and social cohesion , through measures aimed at increasing employment rates , combating exclusion and poverty and raising the accessibility and quality of healthcare and education services . these support measures must be based on a comprehensive and integrated approach taking into account the links between the different areas covered by reforms and the ability of all levels of government to work together as partners - while respecting each member state’s institutional framework and also involving all stakeholders .


### the union has a long - lasting experience on providing specific support to national administrations and other authorities of member states as regards capacity building and similar actions in certain sectors and in relation to the implementation of cohesion policy . the experience gained by the union in assisting national authorities carrying out reforms should be used in order to enhance the capacity of the union to provide support to member states . comprehensive and integrated action is indeed necessary in order to provide support to those member states that are undertaking growth - enhancing reforms and request assistance from the union in this respect . ### the union ' s institutions and bodies have a long - lasting experience on providing specific support to national administrations and other authorities of member states as regards capacity building and similar actions in certain sectors and in relation to the implementation of cohesion policy . the experience gained by the union ' s institutions and bodies in assisting national authorities carrying out reforms together with experience of member states should be used in order to enhance the capacity of the union to provide support to interested member states . comprehensive and integrated action is indeed necessary in order to provide support to those member states that are undertaking growth - enhancing reforms and request assistance from the union in this respect .


### business environment , private sector development , investment , privatization processes , trade and foreign direct investment , competition and public procurement , sustainable sectoral development and support for innovation ; ### business environment , reindustrialisation , changes in production systems , energy sectors , private sector development , investment , economically and socially duly justified privatization processes , trade and foreign direct investment , competition and public procurement , sustainable sectoral development and support for innovation and digitalisation ;


### this regulation should be implemented in compliance with regulation no 966 / 201218 of the european parliament and of the council on the financial rules applicable to the annual budget of the european union . the commission should adopt multi - annual work programmes that set out the political objectives pursued , the expected results of the support and the funding priorities in the respective policy areas . those elements should be further specified in annual work programmes adopted by implementing acts . __________________ 18 regulation no 966 / 2012 of the european parliament and of the council of 25 october 2012 on the financial rules applicable to the general budget of the union and repealing council regulation no 1605 / 2002 . ### this regulation should be implemented in compliance with regulation no 966 / 201218 of the european parliament and of the council on the financial rules applicable to the annual budget of the european union . the commission should be delegated , pursuant to article 290 of the tfeu , the powers to adopt delegated acts by laying down multi - annual work programmes that set out the social and economic objectives pursued , the expected results of the support and the funding priorities in the respective policy areas . those elements should be further specified in annual work programmes adopted by implementing acts . __________________ 18 regulation no 966 / 2012 of the european parliament and of the council of 25 october 2012 on the financial rules applicable to the general budget of the union and repealing council regulation no 1605 / 2002 .


### in order to ensure the efficient and coherent allocation of funds from the union budget and the principle of sound financial management , actions under this programme should complement and be additional to ongoing union programmes , whilst avoiding double funding for the same expenditure . in particular , the commission and the member state concerned , in accordance with their respective responsibilities should ensure at union and member state levels , in all stages of the process , effective coordination in order to ensure consistency , complementarity and synergy between sources of funding supporting actions in the relevant member states with close links to this programme , specifically with measures being financed from the union funds in the member states . ### in order to ensure the efficient and coherent allocation of funds from the union budget and the principle of sound financial management , actions under this programme should complement and be additional to ongoing union programmes , whilst avoiding double funding for the same expenditure . in particular , the commission and the member state concerned , in close cooperation with their regional and local authorities and in accordance with their respective responsibilities , should ensure at union and member state levels , in all stages of the process , effective coordination in order to ensure consistency , complementarity and synergy between sources of funding supporting actions in the relevant member states with close links to this programme , specifically with measures being financed from the union funds in the member states . it is of particular importance that the commission does all it its power to ensure complementarity and synergies with support provided by other relevant international organisations .


### in the event of unforeseen and duly justified grounds of urgency requiring immediate response , such as a serious disturbance in the economy or significant circumstances seriously affecting the economic or social conditions in a member state going beyond its control , upon request of a member state , the commission should be able to adopt special measures , for a limited proportion of the annual work programme , in accordance with objectives and actions eligible under the programme to support the national authorities in addressing the urgent needs . ### in the event of unforeseen and duly justified grounds of urgency requiring immediate response , such as a serious disturbance in the economy or significant circumstances seriously affecting the economic or social conditions in a member state going beyond its control , uniquely upon the request of a member state , the commission and the member state should be able to adopt special measures , for a limited proportion of the annual work programme for no longer than six months , in accordance with objectives and actions eligible under the programme to support the national authorities in addressing the urgent needs . the european parliament should be fully informed about the adoption of such measures .