### digital content and digital services are often supplied online under contracts where the consumer does not pay a price but provides personal data to the trader . digital services are characterised by continuous involvement of the trader over the duration of the contract to enable the consumer to make use of the service , for instance , access to , creation , processing , storing or sharing of data in digital form . examples of digital services are subscription contracts to content platforms , cloud storage , webmail , social media and cloud applications . the continuous involvement of the service provider justifies the application of the rules on the right of withdrawal provided in directive 2011 / 83 / eu that effectively allow the consumer to test the service and decide , during the 14 - day period from the conclusion of the contract , whether to keep it or not . in contrast , contracts for the supply of digital content which is not supplied on a tangible medium are characterised by one - off action by the trader to supply to the consumer a specific piece or pieces of digital content , such as specific music or video files . this one - off nature of the provision of digital content is at the basis of the exception from the right of withdrawal pursuant to article 16 of directive 2011 / 83 / eu , whereby the consumer loses the right of withdrawal when the performance of the contract is started , such as download or streaming of the specific content . ### digital content and digital services are often supplied online under contracts where the consumer does not pay a price but provides personal data to the trader . digital services are characterised by continuous involvement of the trader over the duration of the contract to enable the consumer to make use of the service , for instance , access to , creation , processing , storing or sharing of data in digital form . examples of digital services are subscription contracts to content platforms , cloud storage , webmail , social media and cloud applications . the continuous involvement of the service provider justifies the application of the rules on the right of withdrawal provided in directive 2011 / 83 / eu that effectively allow the consumer to test the service and decide , during the 15 - day period from the conclusion of the contract , whether to keep it or not . in contrast , contracts for the supply of digital content which is not supplied on a tangible medium are characterised by one - off action by the trader to supply to the consumer a specific piece or pieces of digital content , such as specific music or video files . this one - off nature of the provision of digital content is at the basis of the exception from the right of withdrawal pursuant to article 16 of directive 2011 / 83 / eu , whereby the consumer loses the right of withdrawal when the performance of the contract is started , such as download or streaming of the specific content .


### article 16 of the charter of fundamental rights of the eu guarantees the freedom to conduct a business in accordance with union law and national laws and practices . however , marketing across member states of products as being identical when , in reality , they have a significantly different composition or characteristics may mislead consumers and cause them to take a transactional decision that they would not have taken otherwise . ### article 16 of the charter of fundamental rights of the eu guarantees the freedom to conduct a business in accordance with union law and national laws and practices . however , marketing of products as being seemingly identical or similar when , in reality , they have different composition or characteristics , without the consumer being clearly and comprehensively informed thereof , may mislead consumers and cause them to take a transactional decision that they would not have taken otherwise . assessments of whether different composition or characteristics exist may vary depending on the facts and circumstances of each case , but generally speaking , in cases where : one or more ingredients or their ratio in the product differs from another marketed product under the same or similar trademark or designation ; this difference may change the economic behaviour of the average consumer , who would have taken a different purchasing decision where he was aware of such a difference . in order to assess whether the appearance is seemingly identical , any words , data , trademarks , brand names , illustrations or symbols relating to a particular product and placed on the package , the document , the inscription or the label in the field of vision most likely to be spotted by the consumer at first glance and which will enable him to recognise the product immediately in terms of its characteristics , taste or nature and , where appropriate , its trademark , shall be taken into account .


### while off - premises sales constitute a legitimate and well - established sales channel , like sales at a trader ' s business premises and distance–selling , some particularly aggressive or misleading marketing practices in the context of visits to the consumer ' s home without the consumer ' s prior agreement or during commercial excursions can put consumers under pressure to make purchases of goods they would not otherwise buy and / or purchases at excessive prices , often involving immediate payment . such practices often target elderly or other vulnerable consumers . some member states consider those practices undesirable and deem it necessary to restrict certain forms and aspects of off - premises sales within the meaning of directive 2011 / 83 / eu , such as aggressive and misleading marketing or selling of a product in the context of unsolicited visits to a consumer ' s home or commercial excursions , on grounds of public policy or the respect for consumers’ private life protected by article 7 of the charter of fundamental rights of the eu . in accordance with the principle of subsidiarity and in order to facilitate enforcement , it should therefore be clarified that directive 2005 / 29 / ec is without prejudice to member states ' freedom to make arrangements without the need for a case - by - case assessment of the specific practice , to protect the legitimate interests of consumers with regard to unsolicited visits at their private home by a trader in order to offer or sell products or in relation to commercial excursions organised by a trader with the aim or effect of promoting or selling products to consumers where such arrangements are justified on grounds of public policy or the protection of private life . any such provisions should be proportionate and not discriminatory . member states should be required to notify any national provisions adopted in this regard to the commission so that the commission can make this information available to all interested parties and monitor the proportionate nature and legality of those measures . ### while off - premises sales constitute a legitimate and well - established sales channel , some particularly aggressive or misleading marketing practices in the context of commercial excursions can put consumers under pressure to make purchases of goods they would not otherwise buy and / or purchases at excessive prices , often involving immediate payment . in accordance with the principle of subsidiarity and in order to facilitate enforcement , it should therefore be clarified that directive 2005 / 29 / ec is without prejudice to member states ' freedom to make arrangements to protect the legitimate interests of consumers with regard to commercial excursions organised by a trader with the aim or effect of promoting or selling products to consumers . any such provisions should be proportionate and not discriminatory . member states should be required to notify any national provisions adopted in this regard to the commission so that the commission can make this information available to all interested parties and examine the proportionate nature and legality of those measures .


### where appropriate , the intentional or negligent character of the infringement ; ### the intentional or negligent character of the infringement ;


### where the penalty to be imposed is a fine , the infringing trader’s annual turnover and net profits as well as any fines imposed for the same or other infringements of this directive in other member states shall also be taken into account in the determination of its amount . ### where the penalty to be imposed is a fine , the infringing trader’s annual turnover as well as any fines imposed for the same or other infringements of this directive in other member states shall also be taken into account in the determination of its amount .


### where the penalty to be imposed is a fine , the infringing trader’s annual turnover and net profits as well as any fines imposed for the same or other infringements of this directive in other member states shall also be taken into account in the determination of its amount . ### where the penalty to be imposed is a fine , the infringing trader’s annual turnover as well as any fines imposed for the same or other infringements of this directive in other member states shall be taken into account in the determination of its amount .


### member states shall ensure that the penalties for widespread infringements and widespread infringements with a union dimension within the meaning of regulation no 2017 / 2934 include the possibility to impose fines , the maximum amount of which shall be at least 4 % of the trader’s annual turnover in the member state or member states concerned . ### member states shall ensure that the penalties for widespread infringements and widespread infringements with a union dimension within the meaning of regulation no 2017 / 2394 include the possibility to impose fines , the maximum amount of which shall be at least 4 % of the trader’s annual worldwide turnover .


### member states shall ensure that the penalties for widespread infringements and widespread infringements with a union dimension within the meaning of regulation no 2017 / 2934 include the possibility to impose fines , the maximum amount of which shall be at least 4 % of the trader’s annual turnover in the member state or member states concerned . ### member states shall ensure that the penalties for widespread infringements and widespread infringements with a union dimension within the meaning of regulation no 2017 / 2934 include the possibility to impose fines , the amount of which shall be maximum 4 % of the trader’s annual turnover in the member state or member states concerned .


### using editorial content in the media , or providing information to a consumer’s online search query , to promote a product where a trader has paid for the promotion without making that clear in the content or search results or by images or sounds clearly identifiable by the consumer . this is without prejudice to directive 2010 / 13 / eu48 . __________________ 48 directive 2010 / 13 / eu of the european parliament and of the council of 10 march 2010 on the coordination of certain provisions laid down by law , regulation or administrative action in member states concerning the provision of audiovisual media services . ### using editorial content in the media , or providing information to an online search query , to promote a product or service where a trader has provided remuneration , including remuneration other than money , for a promotion or prominent placement without making that clear in the content or search results or by images or sounds clearly identifiable by the consumer . this is without prejudice to directive 2010 / 13 / eu48 . __________________ 48 directive 2010 / 13 / eu of the european parliament and of the council of 10 march 2010 on the coordination of certain provisions laid down by law , regulation or administrative action in member states concerning the provision of audiovisual media services .


### member states may allocate , in the partnership agreement or in the request for an amendment of a programme , the amount of erdf , the esf + , the cohesion fund and the emff to be contributed to investeu and delivered through budgetary guarantees . the amount to be contributed to investeu shall not exceed 5 % of the total allocation of each fund , except in duly justified cases . such contributions shall not constitute transfers of resources under article 21 . ### member states may allocate , in the partnership agreement or in the request for an amendment of a programme , the amount of erdf , the esf + , the cohesion fund and the emff to be contributed to investeu and delivered through budgetary guarantees . the amount to be contributed to investeu shall not exceed 5&#160 ; % of the total allocation of each fund . such contributions shall not constitute transfers of resources under article 21 . while fully respecting the principle of territoriality in the redistribution of resources , these contributions shall also be managed in a shared way with the competent national and regional authorities .


### the commission shall make a proposal to the council to suspend all or part of the commitments or payments for one or more of the programmes of a member state in the following cases : ### the commission shall make a proposal to the council and parliament , by means of a delegated act , to suspend all or part of the commitments for one or more of the programmes of a member state in the following cases :


### the commission shall keep the european parliament informed of the implementation of this article . in particular , the commission shall , when one of the conditions set out in paragraph 7 is fulfilled for a member state , immediately inform the european parliament and provide details of the funds and programmes which could be subject to a suspension of commitments . ### the commission shall keep the european parliament and the council continuously informed in the course of the procedure referred to in paragraph 7 . in particular , the commission shall immediately submit to the european parliament the reasons for its proposal , accompanied by an impact analysis pursuant to point of paragraph 11a , and by an analysis of the expected impact of the suspension on the economy of the member state , and details of the funds and programmes which could be subject to a suspension of commitments for the purpose of the structured dialogue to ensure a meaningful debate and facilitate a transparent implementation process .


### the commission shall transmit the proposal for suspension of commitments or the proposal to lift such a suspension , to the european parliament and to the council . ### the commission shall transmit the proposal for suspension of commitments or the proposal to lift such a suspension to the european parliament and to the council immediately after its adoption , stating the reasons for the proposal .


### in addition to article 31 , the member state may propose to undertake additional technical assistance actions to reinforce the capacity of member state authorities , beneficiaries and relevant partners necessary for the effective administration and use of the funds . ### in addition to article 31 , the member state may propose to undertake additional technical assistance actions to reinforce the institutional capacity and efficiency of public authorities and public services and the capacity of member state authorities , beneficiaries and relevant partners necessary for the effective administration and use of the funds .


### 2021 : 0 . 5 % ; ### 2021 : 3 . 5 % ;


### member states may choose whether the competent authorities exercise those powers directly under their own authority or by application to the competent courts . where the member states choose that competent authorities exercise their powers by application to the competent courts , member states should ensure that those powers can be exercised effectively and in a timely manner and that the cost of exercise of those powers be proportionate and does not hamper the application of this regulation , ### this regulation does not affect the freedom of member states to choose the enforcement system they deem appropriate . member states may choose whether the competent authorities exercise those powers directly under their own authority or by application to the competent courts . where the member states choose that competent authorities exercise their powers by application to the competent courts , member states should ensure that those powers can be exercised effectively and in a timely manner and that the cost of exercise of those powers be proportionate and does not hamper the application of this regulation ,


### widespread infringements with a union dimension may cause large scale harm to a majority of consumers in the union . they therefore require a specific union - level coordination procedure with the commission as the mandatory coordinator . to ensure that the procedure is launched in a timely , coherent and effective manner and that the conditions are verified in a uniform manner , the commission should be in charge of verifying whether the conditions for the launch of the procedure are fulfilled . evidence and information collected during the common action should be used seamlessly in national proceedings when required , ### in the case of widespread infringements with a union dimension that may cause harm to consumers ' collective interests in a majority of member states , the commission should launch and manage a union - level coordination procedure . to ensure procedural coherence , the commission should be in charge of verifying whether the conditions for the launch of the procedure are fulfilled . evidence and information collected during the coordinated action should be used seamlessly in national proceedings when required ,


### the competent authorities may investigate infringements referred to in article 2 and prohibit traders from engaging in such infringements in the future . the competent authorities may impose penalties for those infringements within five years from the cessation of the infringement . ### the competent authorities may investigate infringements referred to in article 2 and stop traders from engaging in such infringements in the future . the competent authorities may impose penalties , order that consumers who have been harmed should be compensated , or order the restitution of undue profits for those infringements within five years from the cessation of the infringement


### each competent authority shall have at least the following powers and exercise them under the conditions set out in article 9 , to : ### each competent authority shall have at least the following powers and exercise them under the conditions set out in article 9 , for the purpose of performing the tasks assigned to them by this regulation , to :


### require the supply by any natural or legal person , including banks , internet service providers , domain registries and registrars and hosting service providers of any relevant information , data or document in any format or form and irrespective of the medium on which or the place where they are stored , for the purpose of among others identifying and following financial and data flows , or of ascertaining the identity of persons involved in financial and data flows , bank account information and ownership of websites ; ### require , in accordance with the data protection rules of the european union , the supply by any natural or legal person , including banks , internet service providers , payment service providers , domain registries and registrars and hosting service providers of any relevant information , data or document in any format or form and irrespective of the medium on which or the place where they are stored , for the purpose of among others identifying and following financial and data flows , or of ascertaining the identity of persons involved in financial and data flows , bank account information and ownership of websites ;


### adopt interim measures to prevent the risk of serious and irreparable harm to consumers , in particular the suspension of a website , domain or a similar digital site , service or account ; ### adopt interim measures , where there are no other means available , to prevent the risk of serious and irreparable harm to consumers , in particular by requiring providers of hosting services to delete content or suspend a website , service or internet account , or requiring that a fully qualified domain name be put on hold for a specified period of time ;


### close down a website , domain or similar digital site , service or account or a part of it , including by requesting a third party or other public authority to implement such measures ; ### close down a website , service or internet account or a part of it , delete a fully qualified domain name and allow the competent authority concerned to register it , including by requesting a third party or other public authority to implement such measures ;


### the external alerts shall only be ' for information ' . the competent authorities shall not be bound to initiate a procedure or take any other action in response to the alerts and information provided by those entities . entities making external alerts shall ensure that the information provided is correct , up to date and accurate and shall correct the information posted without delay or withdraw it as appropriate . for that purpose , they shall have access to the information they have provided , subject to the limitations referred to in articles 41 and 43 . ### the external alerts shall mainly be ' for information ' and shall require the competent authorities to verify whether those alerts are based on a reasonable suspicion as referred to in article 34 . the competent authorities shall not be bound to initiate enforcement measures or to take any other action in response to the alerts and information provided by those entities . entities making external alerts shall ensure that the information provided is correct , up to date and accurate . they shall correct without delay any error in the information posted or shall delete the information , as appropriate . for that purpose , they shall have access to the information they have provided , subject to the limitations referred to in articles 41 and 43 . entities making external alerts shall also be notified of any follow - up actions taken by the competent authority concerned in relation to those alerts , or of the lack of any action , giving reasons in the latter case as to why the alert was not acted upon .


### up to 10% of the funds of the instrument for pre - accession assistance , the european neighbourhood instrument and the financing instrument for development cooperation may be kept unallocated at the beginning of the financial year to allow additional funding to respond to major unforeseen needs , new crises situations or significant political shifts in third countries , in addition to the amounts already programmed . these unallocated funds , if not committed during the year , should be carried over by a decision of the commission . ### up to 10% of funds may be kept unallocated at the beginning of the financial year to allow funding under the instrument for pre - accession assistance , the european neighbourhood instrument and the financing instrument for development cooperation to respond more flexibly and adequately to major unforeseen needs . in the event that those unallocated funds are not committed during the financial year in question , the commission should inform the european parliament and the council before 31 december of that year and adopt a decision to carry over those funds in full respect of the respective basic act establishing the above mentioned instruments and the objectives set out therein .


### the principle of transparency , enshrined in article 15 tfeu which requires the institutions to work as openly as possible , implies , in the area of the implementation of the budget , that citizens are able to know where , and for what purpose , funds are spent by the union . such information fosters democratic debate , contributes to the participation of citizens in the union’s decision - making process and reinforces institutional control and scrutiny over union expenditure . such objectives should be achieved by the publication , preferably using modern communication tools , of relevant information concerning all recipients of union funds which takes into account such all recipients’ legitimate interests of confidentiality and security and , as far as natural persons are concerned , their right to privacy and the protection of their personal data . institutions should therefore adopt a selective approach in the publication of information , in accordance with the principle of proportionality . decisions to publish should be based on relevant criteria in order to provide meaningful information . ### the principle of transparency , enshrined in article 15 tfeu which requires the institutions to work as openly as possible , implies , in the area of the implementation of the budget , that citizens are able to know where , and for what purpose , funds are spent by the union . such information fosters democratic debate , contributes to the participation of citizens in the union’s decision - making process and reinforces institutional control and scrutiny over union expenditure . communication should be more targeted at recipients , aimed at increasing visibility for citizens , while ensuring through defined - measures that the messages are received by beneficiaries . such objectives should be achieved by the publication , preferably using modern communication tools , of relevant information concerning all recipients of union funds which takes into account such all recipients’ legitimate interests of confidentiality and security and , as far as natural persons are concerned , their right to privacy and the protection of their personal data . institutions should therefore adopt a selective approach in the publication of information , in accordance with the principle of proportionality . decisions to publish should be based on relevant criteria in order to provide meaningful information .


### it is important to be able to reinforce the deterrent effect achieved by the exclusion and the financial penalty . in that regard , the deterrent effect should be reinforced by the possibility to publish the information related to the exclusion and / or to the financial penalty , with full respect for the data protection requirements set out in regulation no 45 / 2001 of the european parliament and of the council and in directive 95 / 46 / ec of the european parliament and of the council . this should contribute to ensuring that the same conduct is not repeated . for reasons of legal certainty and in accordance with the principle of proportionality it should be specified in which situations a publication should not take place . in its assessment , the authorising officer responsible should have regard to any recommendation of the panel . as far as natural persons are concerned , personal data should only be published in exceptional cases justified by the seriousness of the conduct or its impact on the union ' s financial interests . ### it is important to be able to reinforce the deterrent effect achieved by the exclusion and the financial penalty . in that regard , the deterrent effect should be reinforced by the possibility to publish the information related to the exclusion and / or to the financial penalty , with full respect for the data protection requirements set out in regulation no 45 / 2001 of the european parliament and of the council and in regulation 2016 / 679 of the european parliament and of the council1a . this should contribute to ensuring that the same conduct is not repeated . for reasons of legal certainty and in accordance with the principle of proportionality it should be specified in which situations a publication should not take place . in its assessment , the authorising officer responsible should have regard to any recommendation of the panel . as far as natural persons are concerned , personal data should only be published in exceptional cases justified by the seriousness of the conduct or its impact on the union ' s financial interests . ________________ 1a regulation 2016 / 679 of the european parliament and of the council of 27 april 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data , and repealing directive 95 / 46 / ec .


### progress towards the electronic exchange of information and electronic submission of documents , which constitute a major simplification measure , should be accompanied by clear conditions for the acceptance of the systems to be used , so as to establish a legally sound environment while preserving flexibility in the management of union funds for the participants , recipients and the authorising offices as provided for in this regulation . ### progress towards the electronic exchange of information and electronic submission of documents , including e - procurement , where appropriate , which constitute a major simplification measure , should be accompanied by clear conditions for the acceptance of the systems to be used , so as to establish a legally sound environment while preserving flexibility in the management of union funds for the participants , recipients and the authorising offices as provided for in this regulation .


### it is appropriate that different cases usually referred to as situations of conflict of interest be identified and treated distinctly . the notion of a ‘ conflict of interest’ should be solely used for cases where an entity or person with responsibilities for budget implementation , audit or control or an official or an agent of a union institution is in such a situation . in cases where an economic operator attempts to unduly influence a procedure or obtain confidential information , this should be treated as grave professional misconduct . in addition , economic operators may be in a situation where they should not be selected to implement a contract because of a professional conflicting interest . for instance , a company should not evaluate a project in which it has participated or an auditor should not be in a position to audit accounts it has previously certified . ### it is appropriate that different cases usually referred to as situations of conflict of interest be identified and treated distinctly . the notion of a ‘ conflict of interest’ should be solely used for cases where an entity or person with responsibilities for budget implementation , audit or control or an official or an agent of a union institution is in such a situation . in cases where an economic operator attempts to unduly influence a procedure or obtain confidential information , this should be treated as grave professional misconduct as a result of which that operator can be excluded from the procedure . in addition , economic operators may be in a situation where they should not be selected to implement a contract because of a professional conflicting interest . for instance , a company should not evaluate a project in which it has participated or an auditor should not be in a position to audit accounts it has previously certified .


### it is appropriate that different cases usually referred to as situations of conflict of interest be identified and treated distinctly . the notion of a ‘ conflict of interest’ should be solely used for cases where an entity or person with responsibilities for budget implementation , audit or control or an official or an agent of a union institution is in such a situation . in cases where an economic operator attempts to unduly influence a procedure or obtain confidential information , this should be treated as grave professional misconduct . in addition , economic operators may be in a situation where they should not be selected to implement a contract because of a professional conflicting interest . for instance , a company should not evaluate a project in which it has participated or an auditor should not be in a position to audit accounts it has previously certified . ### it is appropriate that different cases usually referred to as situations of conflict of interest be identified and treated distinctly . the notion of a ‘ conflict of interest’ should be used for cases where an entity or person with responsibilities for budget implementation , audit or control or an official or an agent of a union institution is in such a situation . all persons and entities potentially subject to a conflict of interest should publish a declaration of interest instead of a declaration of absence of interest . a self - evaluation of a conflict of interest is a conflict of interest in itself . therefore , the evaluation of a conflict of interest should be carried out by an independent third party . in cases where an economic operator attempts to unduly influence a procedure or obtain confidential information , this should be treated as grave professional misconduct . in addition , economic operators may be in a situation where they should not be selected to implement a contract because of a professional conflicting interest . for instance , a company should not evaluate a project in which it has participated or an auditor should not be in a position to audit accounts it has previously certified . there should be regular publication of a track record of all cases of conflict of interest and revolving door identified by the union institutions .


### union public procurement should ensure that union funds are used in an effective , transparent , and appropriate way . in that regard , electronic procurement should contribute to the better use of union funds and enhance access to contracts for all economic operators . ### union public procurement should ensure that union funds are used in an effective , transparent , and appropriate way , while reducing administrative burden on recipients of eu funding and on managing authorities . in that regard , electronic procurement should contribute to the better use of union funds and enhance access to contracts for all economic operators .


### union public procurement should ensure that union funds are used in an effective , transparent , and appropriate way . in that regard , electronic procurement should contribute to the better use of union funds and enhance access to contracts for all economic operators . ### union public procurement should ensure that union funds are used in an effective , transparent , and appropriate way . in that regard , electronic procurement should contribute to the better use of union funds and enhance access to contracts for all economic operators . all union institutions conducting public procurement should publish clear rules on their websites regarding acquisition , expenditure and monitoring , as well as all contracts awarded , including the value thereof .


### in order to facilitate investments in cultural and sustainable tourism infrastructure , without prejudice to the full application of eu environmental legislation , in particular the directives on strategic environmental assessment and environmental impact assessment as appropriate , certain restrictions as regards the scope of support for these investments should be removed . ### investments in small - scale cultural and sustainable tourism infrastructure should be maintained , without prejudice to the full application of eu environmental legislation , in particular the directives on strategic environmental assessment and environmental impact assessment as appropriate . in justified cases , the scope of support for these investments could be enlarged .


### with a view to responding to the challenges posed by increasing flows of migrants and refugees , the objectives to which the erdf may contribute in its support of migrants and refugees should be spelled out . ### with a view to responding to the challenges posed by increasing flows of migrants and refugees , the objectives to which the erdf may contribute in its support of migrants and refugees under international protection should be spelled out . this contribution can be effective , especially in countries particularly exposed to migration flows , if accompanied by a genuine europe - wide application of the principle of solidarity , and thus by actions aimed at a fair burden sharing .


### in view of maximising the synergies between all union funds to address the challenges of migration and asylum in an effective way , it should be ensured that , when the thematic objectives are translated into priorities in the fund - specific rules , such priorities cover the appropriate use of each fund for these areas . ### in view of maximising the synergies between all union funds to address the challenges of migration and asylum in an effective way , it should be ensured that , when the thematic objectives are translated into priorities in the fund - specific rules , such priorities cover the appropriate use of each fund for these areas . where appropriate , coordination with the asylum , migration and integration fund is recommended .


### in order to facilitate earlier and more targeted application of simplified cost options , the power to adopt 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 definition of the standard scales of unit costs or the flat rate financing , the fair , equitable and verifiable method on which they may be established , and the financing based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes rather than on costs . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law - making of 13 april 2016 . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council receive all documents at the same time as member states ' experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts . ### in order to facilitate earlier and more targeted application of simplified cost options , the power to adopt acts supplementing this regulation 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 definition of the differentiated treatment of investors and the conditions for its application , the definition of the standard scales of unit costs or the flat rate financing , the fair , equitable and verifiable method on which they may be established , and the financing based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes rather than on costs . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law - making of 13 april 2016 . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council receive all documents at the same time as member states ' experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts .


### ‘ financial instruments’ means union measures of financial support provided from the budget in order to address one or more specific policy objectives of the union . such instruments may take the form of equity or quasi - equity investments , loans or guarantees , or other risk - sharing instruments , and may , where appropriate , be combined with other forms of financial support or with funds under shared implementation or edf funds ; ### ‘ financial instruments’ means union measures of financial support provided from the budget in order to address one or more specific policy objectives of the union . such instruments may take the form of equity or quasi - equity investments , loans or guarantees , or other risk - sharing instruments and may , where appropriate , be combined with other forms of financial support or edf funds ;


### personal data collected pursuant to this regulation shall be processed in accordance with directive 95 / 46 / ec and regulation no 45 / 2001 . a candidate or tenderer in a procurement procedure , an applicant in a grant award procedure , an expert in a procedure for the selection of experts , an applicant in a contest for prizes or an entity or person participating in a procedure for implementing union funds in accordance with point of article 61as well as a beneficiary , a contractor , a remunerated external expert or any person or entity that receives prizes or implements union funds pursuant to point of article 61 shall be informed accordingly . _________________ 28 oj l 281 , 23 . 11 . 1995 , p . 31 . ### personal data collected pursuant to this regulation shall be processed in accordance with regulation 2016 / 679 and regulation no 45 / 2001 . a candidate or tenderer in a procurement procedure , an applicant in a grant award procedure , an expert in a procedure for the selection of experts , an applicant in a contest for prizes or an entity or person participating in a procedure for implementing union funds in accordance with point of article 61as well as a beneficiary , a contractor , a remunerated external expert or any person or entity that receives prizes or implements union funds pursuant to point of article 61 shall be informed accordingly .


### retrospective evaluations shall assess the performance of the programme or activity , including aspects such as effectiveness , efficiency , coherence , relevance and eu added value . they shall be undertaken periodically and in sufficient time for the findings to be taken into account in ex - ante evaluations which support the preparation of related programmes and activities . ### ongoing and retrospective evaluations shall assess the performance of the programme or activity , including aspects such as effectiveness , efficiency , coherence , relevance and eu added value . they shall be undertaken periodically and in sufficient time for the findings to be taken into account in ex - ante evaluations which support the preparation of related programmes and activities .


### where the commission makes use of union trust funds , it shall attach to the draft budget a working document on the activities supported by union trust funds , on their implementation and performance . ### where the commission makes use of union trust funds , it shall attach to the draft budget a detailed working document on the activities supported by union trust funds , on their implementation , performance and management cost .


### however , the commission may delegate its powers of budget implementation concerning the operational appropriations of its own section to the heads of union delegations and , in order to ensure business continuity during their absence , to the deputy heads of delegations . when heads of union delegations act as sub - delegated authorising officers of the commission and their deputies in the absence of the latter , they shall apply the commission rules for the implementation of the budget and shall be subject to the same duties , obligations and accountability as any other sub - delegated authorising officer of the commission . ### however , the commission may delegate its powers of budget implementation concerning the operational appropriations of its own section to the heads of union delegations and , limited to the operational appropriations for preparatory measures in the field of title v of the teu pursuant to point of article 56 of this regulation , to the civilian operations commander , and , in order to ensure business continuity during their absence , to their deputies . when heads of union delegations and the civilian operations commander and in their absence their deputies act as sub - delegated authorising officers of the commission , they shall apply the commission rules for the implementation of the budget and shall be subject to the same duties , obligations and accountability as any other sub - delegated authorising officer of the commission .


### where the budget is implemented under shared implementation the commission and the member states shall respect the principles of sound financial management , transparency and non - discrimination and shall ensure the visibility of union action . to this end , the commission and the member states shall fulfil their respective control and audit obligations and assume the resulting responsibilities laid down in this regulation . complementary provisions shall be laid down in sector - specific rules . ### where the budget is implemented under shared implementation such task shall be carried out by the member states and the commission . the commission and the member states shall respect the principles of sound financial management , transparency and non - discrimination and shall ensure the visibility of union action . to this end , the commission and the member states shall fulfil their respective control and audit obligations and assume the resulting responsibilities laid down in this regulation . complementary provisions shall be laid down in sector - specific rules .


### in order to promote best practices in the implementation of the structural funds , the cohesion fund , the european agricultural fund for rural development , the eagf and the european fisheries fund , the commission may , for information purposes , make available a methodological guide setting out its own control strategy and approach , including checklists , and best practice examples to bodies responsible for management and control activities . that guide shall be updated whenever necessary . ### in order to promote best practices in the implementation of the structural funds , the cohesion fund , the european agricultural fund for rural development , the eagf and the european fisheries fund , the commission may , for information purposes , make available a methodological guide setting out its own control strategy and approach , including checklists , and best practice examples to bodies responsible for management and control activities . that guide shall be updated whenever necessary . the delivery of the national and sub - national programmes requires a comprehensive national and sub - national management and control system of all financial commitments , based on a close collaboration between the national and any sub - national management authority and the commission . the commission shall report annually and publish interim evaluations .


### where possible and appropriate , lump sums , unit costs or flat rates shall be determined in such a way as to allow their payment upon achievement of concrete outputs . ### where possible and appropriate , lump sums , unit costs or flat rates shall be determined in such a way as to allow their payment upon achievement of previously defined and agreed upon concrete outputs .


### all grants awarded in the course of a financial year shall be published in accordance with paragraphs 1 to 4 of article 36 . ### all grants awarded in the course of a financial year shall be published in accordance with paragraphs 1 to 4 of article 36 . in addition , all union institutions conducting public procurement shall publish on their websites clear rules regarding acquisition , expenditure and monitoring , as well as all contracts awarded , including the value thereof .


### as an exception to paragraph 1 an external action may be financed in full by the grant where this is essential for it to be carried out . in such a case grounds shall be provided in the award decision . ### as an exception to paragraph 1 an external action may be financed in full by the grant where this is justified by the nature of the action or its urgency or is essential for it to be carried out . in such a case grounds shall be provided in the award decision .


### the first subparagraph shall not apply to public bodies and the international organisations referred to in article 151 . ### the first subparagraph shall not apply to public bodies and bodies with a public service mission and assessed in accordance with article 149 , international organisations and member state organisations referred to in articles 151 and 151a respectively .


### where financial instruments are combined within a single agreement with complementary support from the union budget , including grants , this title shall apply to the whole measure . the reporting shall be carried out in accordance with article 242 . ### where financial instruments are combined within a single agreement with complementary support from the union budget , this title shall apply to the whole measure . the reporting shall be carried out in accordance with article 242 .


### the commission shall submit its draft decisions concerning the establishment , the extension and the liquidation of a union trust fund to the competent committee where provided for in the basic act under which the union contribution to the union trust fund is provided . ### the commission shall consult the european parliament before establishing a union trust fund and later submit its draft decisions concerning the establishment , the extension and the liquidation of such fund to the competent committee where provided for in the basic act under which the union contribution to that fund is provided .


### union trust funds shall be implemented in accordance with the principles of sound financial management , transparency , proportionality , non - discrimination and equal treatment , and in accordance with the specific objectives defined in each constitutive act . ### union trust funds shall be implemented in accordance with the principles of sound financial management , transparency , proportionality , non - discrimination and equal treatment , ensuring full respect of the budgetary scrutiny and control mechanism of the european parliament , and in accordance with the specific objectives defined in each constitutive act .


### upon the adoption by the european parliament and the council of the decision to mobilise the fund , the commission shall adopt a decision , by means of an implementing act , awarding the financial contribution from the fund and shall pay that financial contribution immediately and in a single instalment to the beneficiary state . if an advance has been paid pursuant to article 4a only the balance shall be paid . ### at the same time as the european parliament and the council adopt a proposal for a decision to mobilise the fund , the commission shall adopt a decision on a financial contribution , by means of an implementing act , which shall enter into force on the date at which the european parliament and the council adopt the decision to mobilise the fund and shall pay that financial contribution immediately and in a single instalment to the beneficiary state . if an advance has been paid pursuant to article 4a only the balance shall be paid .


### investment in the development of endogenous potential through fixed investment in equipment and infrastructure , including cultural and sustainable tourism infrastructure , services to enterprises , support to research and innovation bodies and investment in technology and applied research in enterprises ; ### investment in the development of endogenous potential through fixed investment in equipment and small - scale infrastructure , including small - scale cultural and sustainable tourism infrastructure , services to enterprises , support to research and innovation bodies and investment in technology and applied research in enterprises ; in justified cases , the scope of support may be enlarged ;


### “supporting the reception and social and economic integration of migrants and refugees” ### “supporting the reception and social and economic integration of migrants and refugees under international protection”


### ‘ macroregional strategy’ means an integrated framework , which may be supported by the esi funds among others , to address common challenges faced by a defined geographical area relating to member states and third countries located in the same geographical area which thereby benefit from strengthened cooperation contributing to achievement of economic , social and territorial cohesion ; ### ‘ macroregional strategy’ means an integrated framework in line with guidance given by the european council , which may be supported by the esi funds among others , to address common challenges faced by a defined geographical area relating to member states and third countries located in the same geographical area which thereby benefit from strengthened cooperation contributing to achievement of economic , social and territorial cohesion ;


### “the priorities established for each of the esi funds in the fund specific rules shall in particular cover the appropriate use of each fund in the areas of migration and asylum . ” ### “the priorities established for each of the esi funds in the fund specific rules shall in particular cover the appropriate use of each fund in the areas of migration and asylum and ensure , where appropriate , coordination with the asylum , migration and integration fund . ”


### building the capacity of local actors to develop and implement operations including fostering their project management capabilities ; ### building the capacity of local actors to develop and implement operations including fostering their project management capabilities , and of potential final beneficiaries to prepare and implement the projects ;


### an estimate of additional public and private resources to be potentially raised by the financial instrument down to the level of the final recipient , including as appropriate an assessment of the need for , and level of , differentiated treatment to attract counterpart resources from private investors and / or a description of the mechanisms which will be used to establish the need for , and extent of , such differentiated treatment , such as a competitive or appropriately independent assessment process ; ### an estimate of additional public and private resources to be potentially raised by the financial instrument down to the level of the final recipient :


### “8 . final recipients supported by an esi fund financial instrument may also receive assistance from another esi funds priority or programme or from another instrument supported by the budget of the union in accordance with applicable union state aid rules . in that case , separate records shall be maintained for each source of assistance and the esi funds financial instrument support shall be part of an operation with eligible expenditure distinct from the other sources of assistance . ” ### paragraph 8 is replaced by the following : “8 . final recipients supported by an esi fund financial instrument may also receive assistance from another esi funds priority or programme or from another instrument supported by the budget of the union or from the european fund for strategic investments , in accordance with applicable union state aid rules , as appropriate . in that case , separate records shall be maintained for each source of assistance and the esi funds financial instrument support shall give rise to eligible expenditure distinct from the other sources of assistance . ”


### financial instruments allowing for the combination of such contribution with eib financial products under the european fund for strategic investment . ### financial instruments allowing for the combination of such contribution with eib financial products under the european fund for strategic investment and those of other institutions referred to in article 38 and in accordance with article 39a .


### a publicly - owned bank or financial institution , established as a legal entity carrying out financial activities on a professional basis , which fulfils all the following conditions : ### a publicly - owned bank or institution , established as a legal entity carrying out financial activities on a professional basis , which fulfils all the following conditions :


### –operates under a public policy mandate given by the relevant authority of a member state at national or regional level , to carry out economic development activities contributing to the objectives of the esi funds ; ### –operates under a public policy mandate given by the relevant authority of a member state at national or regional level , which shall include carrying out , as part of its operations , economic development activities contributing to the objectives of the esi funds ;


### –carries out its development activities in regions , policy areas and sectors for which access to funding from market sources is not generally available or sufficient ; ### –carries out , among its operations , its economic development activities contributing also to the objectives of the esi funds in regions , policy areas and sectors for which access to funding from market sources is not generally available or sufficient ;


### –operates on a non - profit maximisation basis in order to ensure a long - term financial sustainability ; ### –operates without primarily focussing on maximising profits in order to ensure a long - term financial sustainability for its operations ;


### –is subject to the supervision of an independent authority in accordance with national law . ### –is subject to the supervision of an independent authority in accordance with applicable law .


### “when implementing the financial instrument , the bodies referred to in points to of the first subparagraph shall ensure compliance with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria , as set out in eu legislation including commission recommendations and communications or or any formal notice by the latter . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements . ” ### “when implementing the financial instrument , the bodies referred to in points to of the first subparagraph shall comply with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria , as set out in eu legislation . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements . ”


### when implementing financial instruments under point of article 38 , the bodies referred to in paragraph 2 of this article shall ensure compliance with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria as set out in eu legislation including commission recommendations and communications or any formal notice by the latter . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements . ### when implementing financial instruments under point of article 38 , the bodies referred to in paragraph 5 of this article shall comply with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria as set out in eu legislation . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements .


### member states may use esi funds to provide a contribution to financial instruments referred to in point of article 38 to attract additional private sector investment . ### managing authorities in the respective member states may use esi funds to provide a contribution to financial instruments referred to in point of article 38 if this is aimed to attract additional private sector investment and continues to contribute to esi funds objectives and the union strategy for smart , sustainable and inclusive growth .


### reporting by managing authorities under article 46 on operations comprising financial instruments under this article shall be based on the information kept by the eib for the purposes of its reporting pursuant to article 16 and of the efsi regulation , supplemented by the additional information required under article 46 . ### reporting by managing authorities under article 46 on operations comprising financial instruments under this article shall be based on the information kept by the eib for the purposes of its reporting pursuant to article 16 and of the efsi regulation , supplemented by the additional information required under article 46 . requirements under this paragraph shall allow for uniform reporting conditions in accordance with article 46 of this regulation .


### entrust implementation tasks to a financial institution , which shall either open a fiduciary account in its name and on behalf of the managing authority or set up a separate block of finance within the financial institution for programme contribution . in the case of a separate block of finance , an accounting distinction shall be made between programme resources invested in the financial instrument and the other resources available in the financial institution . the assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity . ### entrust implementation tasks to a body , which shall either open a fiduciary account in its name and on behalf of the managing authority or set up a separate block of finance within the financial institution for programme contribution . in the case of a separate block of finance , an accounting distinction shall be made between programme resources invested in the financial instrument and the other resources available in the financial institution . the assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity .


### in case of financial instruments referred to in point of article 38 which take the form of a guarantee instrument , esi funds may contribute to junior and / or mezzanine tranches of portfolios of loans covered also under the efsi’s union guarantee . ### in case of financial instruments referred to in point of article 38 which take the form of a guarantee instrument , member states may decide that esi funds contribute , as appropriate , to different tranches of portfolios of loans covered also under the efsi ' s union guarantee . resources paid back to financial instruments from investments or from the release of resources committed for guarantee contracts , including capital repayments and gains and other earnings or yields , such as interest , guarantee fees , dividends , capital gains or any other income generated by investments , which are attributable to the contribution from the esi funds shall be re - used in accordance with the objectives of the respective esi funds to support actions and final recipients consistent with the programme from which such contributions are made .


### for the erdf , the esf , the cohesion fund and the emff , a separate priority , and for the eafrd , a separate type of operation , with a co - financing rate of up to 100% may be established within a programme to support operations implemented through financial instruments referred to in point of article 38 . ### for the erdf , the esf , the cohesion fund and the emff , a separate priority , and for the eafrd , a separate type of operation , with a co - financing rate according to the determination of co - financing rates in article 120 with an increase of up to 15% may be established within a programme to support operations implemented through financial instruments referred to in point of article 38 .


### the eib or other international financial institutions in which a member state is a shareholder shall provide to the designated authorities control reports with each application for payment . they shall also provide to the commission and to the designated authorities an annual audit report drawn up by the external auditors of these bodies . ### the eib or other international financial institutions in which a member state is a shareholder shall by 30 june of each calendar year provide to the designated authorities control and performance reports concerning each application for payment and a level of reimbursement to final recipients of the previous calendar year . they shall also provide to the commission and to the designated authorities an annual audit report drawn up by the external auditors of these bodies .


### the commission shall be empowered to adopt an implementing act concerning the models for the control reports and the annual audit reports of the first sub - paragraph of this paragraph . ### the commission shall be empowered to adopt an implementing act concerning the models for the control reports and the annual audit reports of the third sub - paragraph of this paragraph .


### subsequent applications for interim payment submitted during the eligibility period shall only be made : for the second application for interim payment , when at least 60 % of the amount included in the first application for interim payments has been spent as eligible expenditure within the meaning of points , and of article 42 ; for the third and subsequent applications for interim payment , when at least 85 % of the amounts included in the previous applications for interim payments have been spent as eligible expenditure within the meaning of points , and of article 42 ; ### in article 41 , point of paragraph 1 is replaced by the following : “second and subsequent applications for interim payments submitted during the eligibility period shall only be made , when at least 60% of the amount included in the previous application for interim payments has been spent as eligible expenditure within the meaning of points , and of article 42 . ”


### in the case of equity - based instruments targeting enterprises referred to in article 37 for which the funding agreement referred to in point of article 38 was signed before 31 december 2017 , which by the end of the eligibility period invested at least 55 % of the programme resources committed in the relevant funding agreement , a limited amount of payments for investments in final recipients to be made for a period not exceeding four years after the end of eligibility period may be considered as eligible expenditure , when paid into an escrow account specifically set up for that purpose , provided that state aid rules are complied with and that all of the conditions set out below are fulfilled . ### in article 42 , the first subparagraph of paragraph 3 is replaced by the following : “ in the case of equity - based instruments targeting enterprises referred to in article 37 for which the funding agreement referred to in point of article 38 was signed before 31 december 2018 , which by the end of the eligibility period invested at least 55 % of the programme resources committed in the relevant funding agreement , a limited amount of payments for investments in final recipients to be made for a period not exceeding four years after the end of eligibility period may be considered as eligible expenditure , when paid into an escrow account specifically set up for that purpose , provided that state aid rules are complied with and that all of the conditions set out below are fulfilled .


### differentiated treatment of private investors shall be without prejudice to the union state aid rules . ### differentiated treatment of investors operating under the market economy principle shall be without prejudice to the union state aid rules .


### where applicable , to cover the losses in the nominal amount of the esi funds contribution to the financial instrument resulting from negative interest , if such losses occur despite active treasury management by the bodies implementing financial instruments . ### where applicable , to cover the losses in the nominal amount of the esi funds contribution to the financial instrument resulting from negative interest , if such losses occur despite active treasury management .


### actions to disseminate information , support networking , carry out communication activities , raise awareness and promote cooperation and exchange of experience , including with third countries ; ### point f is replaced by the following : “actions to disseminate information , support networking , carry out communication activities on the results and successes achieved with support of esi funds , raise awareness and promote cooperation and exchange of experience , including with third countries ; ”


### this article shall apply to operations which generate net revenue after their completion . for the purposes of this article ‘ net revenue’ means cash in - flows directly paid by users for the goods or services provided by the operation , such as charges borne directly by users for the use of infrastructure , sale or rent of land or buildings , or payments for services less any operating costs and replacement costs of short - life equipment incurred during the corresponding period . operating cost - savings generated by the operation shall be treated as net revenue unless they are offset by an equal reduction in operating subsidies . ### in article 61 , the first subparagraph of paragraph 1 is replaced by the following : “this article shall apply to operations which generate net revenue after their completion . for the purposes of this article ‘ net revenue’ means cash in - flows directly paid by users for the goods or services provided by the operation , such as charges borne directly by users for the use of infrastructure , sale or rent of land or buildings , or payments for services less any operating costs and replacement costs of short - life equipment incurred during the corresponding period . operating cost - savings generated by the operation , with the exception of cost - savings resulting from the implementation of energy efficiency measures , shall be treated as net revenue unless they are offset by an equal reduction in operating subsidies . ”


### financing which is not linked to costs of the relevant operations but is based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes . the detailed modalities concerning the financing conditions and their application shall be set out in delegated acts adopted in accordance with the empowerment provided for in paragraph 5 . ### financing which is not linked to costs of the relevant operations but is based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes . the detailed modalities concerning the financing conditions and their application shall be set out in delegated acts adopted in accordance with the empowerment provided for in paragraph 5a .


### the following subparagraph is added : “the commission shall be empowered to adopt delegated acts in accordance with article 149 concerning the definition of the standard scales of unit costs or the flat rate financing referred to in points and of the first subparagraph of paragraph 1 , the related methods referred to in point of the first subparagraph of this paragraph and the form of support referred to in point of the first subparagraph of paragraph 1 . ” ; ### the following paragraph is added : “5a . the commission is empowered to adopt delegated acts in accordance with article 149 supplementing this regulation with regard to the definition of the standard scales of unit costs or the flat rate financing referred to in points and of the first subparagraph of paragraph 1 , the related methods referred to in point of paragraph 5 and the form of support referred to in point of the first subparagraph of paragraph 1 . ” ;


### “2a . for the funds and the emff where operations implemented outside the programme area in accordance with paragraph 2 have benefits both outside and within the programme area expenditure shall be allocated to these areas on a pro rata basis based on objective criteria other than the budget allocation to the programme areas . ” ### “2a . for the funds and the emff where operations implemented outside the programme area in accordance with paragraph 2 have benefits both outside and within the programme area expenditure shall be allocated to these areas on a pro rata basis based on objective criteria . ”


### where the independent quality review has not been notified to the commission within 6 month of the submission of that information to the independent experts or where the relevant appraisal is negative , the corresponding expenditure shall be withdrawn and the declaration of expenditure shall be rectified accordingly . ; ### an independent quality review shall be delivered within six months upon the submission of that information to the independent experts . where such review has not been notified to the commission within three months of its delivery or where the relevant appraisal is negative , the corresponding expenditure shall be withdrawn and the declaration of expenditure shall be rectified accordingly . ;


### a description of the projects or types of projects envisaged , together with the milestones , where relevant , and the targets for outputs and results linked to the common indicators by priority axis , where relevant . ; ### a description of the projects or types of projects envisaged , together with the milestones , where relevant , and the targets for outputs and results linked to the common and specific indicators by priority axis , where relevant . ;


### detailed rules concerning the information and communication measures for the public and information measures for potential beneficiaries and for beneficiaries are laid down in annex xii . ; ### detailed rules concerning the information , communication and visibility for the public and information measures for potential beneficiaries and for beneficiaries are laid down in annex xii . ;


### the amount of the funds allocated to technical assistance shall be limited to 4 % of the total amount of the funds allocated to operational programmes at the time of the adoption of the operational programmes in a member state of the investment for jobs and growth goal . ### the amount of the funds allocated to technical assistance shall be limited to 4 % of the total amount of the funds allocated to operational programmes at the time of the adoption of the operational programmes in a member state of the investment for jobs and growth goal . 0 , 25 % thereof shall be dedicated to information and communication activities , at the programme and project level and where appropriate , as defined in article 59 .


### “1 . operations for which the total eligible expenditure does not exceed eur 200 000 for the erdf and the cohesion fund , eur 150 000 for the esf or eur 100 000 for the emff shall not be subject to more than one audit by either the audit authority or the commission prior to the submission of the accounts for the accounting year in which the operation is completed . other operations shall not be subject to more than one audit per accounting year by either the audit authority or the commission prior to the submission of the accounts for the accounting year in which the operation is completed . operations shall not be subject to an audit by the commission or the audit authority in any year if there has already been an audit in that year by the european court of auditors , provided that the results of the audit work performed by the european court of auditors for such operations can be used by the audit authority or the commission for the purpose of fulfilling their respective tasks . ” ### in article 148 , paragraph 1 is replaced by the following : “1 . operations for which the total eligible expenditure does not exceed eur 300 000 for the erdf and the cohesion fund , eur 200 000 for the esf or eur 150 000 for the emff shall not be subject to more than one audit by either the audit authority or the commission prior to the submission of the accounts for the accounting year in which the operation is completed . other operations shall not be subject to more than one audit per accounting year by either the audit authority or the commission prior to the submission of the accounts for the accounting year in which the operation is completed . operations shall not be subject to an audit by the commission or the audit authority in any year if there has already been an audit in that year by the european court of auditors , provided that the results of the audit work performed by the european court of auditors for such operations can be used by the audit authority or the commission for the purpose of fulfilling their respective tasks . ”


### “2 . the power to adopt delegated acts referred to in article 5 , the second paragraph of article 12 , the fourth subparagraph of article 22 , article 37 , the third subparagraph of article 38 , article 40 , article 41 , the second subparagraph of article 42 , article 42 , the second , third , fourth and seventh subparagraphs of article 61 , articles 63 and 64 , the second subparagraph of article 68 , the fourth paragraph of article 101 , the fifth subparagraph of article 122 , the first subparagraph of article 125 , article 125 , article 127 and and article 144 shall be conferred on the commission from . 21 december 2013 until 31 december 2020 . ” ### in article 149 , paragraph 2 is replaced by the following : “2 . the power to adopt delegated acts referred to in article 5 , the second paragraph of article 12 , the fourth subparagraph of article 22 , article 37 , the third subparagraph of article 38 , article 40 , article 41 , the second subparagraph of article 42 , article 42 , article 43a , the second , third , fourth and seventh subparagraphs of article 61 , articles 63 , 64 and 67 the second subparagraph of article 68 , the fourth paragraph of article 101 , the fifth subparagraph of article 122 , the first subparagraph of article 125 , article 125 , article 127 and and article 144 shall be conferred on the commission from 21 december 2013 until 31 december 2020 . ”


### “where a call for proposal is launched prior to the entry into force of regulation xxx / yyy amending the present regulation the managing authority may decide not to apply the obligation set out in article 67 for a maximum of 6 months starting from the date of entry into force of regulation xxx / yyy . where the document setting out the conditions for support is provided to the beneficiary within a period of 6 months starting from the date of entry into force of regulation xxx / yyy the managing authority may decide not to apply those amended provisions . ” ### “the managing authority may decide not to apply the obligation set out in article 67 for a maximum of 12 months starting from the date of entry into force of regulation xxx / yyy . in duly justified cases , the managing authority or monitoring committee for the programmes under the european territorial cooperation goal may decide to extend the 12 - month transitional period until programme closure . it shall notify the commission of such decision before the expiration of the transitional period . the first and second subparagraphs shall not apply to grants and repayable assistance supported by the esf for which the public support does not exceed eur 50 000 . ”


### the member state and the managing authority shall ensure that the information and communication measures are implemented in accordance with the communication strategy and that those measures aim for the widest possible media coverage using various forms and methods of communication at the appropriate level . ### in subsection 2 . 1 , point 1 is replaced by the following : “1 . the member state and the managing authority shall ensure that the information and communication measures are implemented in accordance with the communication strategy , in order to improve visibility and interaction with citizens , and that those measures aim for the widest possible media coverage using various forms and methods of communication at the appropriate level and adapted to technology innovation . ”


### during implementation of an erdf or cohesion fund operation , the beneficiary shall put up , at a location readily visible to the public , a temporary billboard of a significant size for each operation consisting of the financing of infrastructure or construction operations for which the total public support to the operation exceeds eur 500 000 . ### in subsection 2 . 2 , point 4 is replaced by the following : “4 . during implementation of an erdf or cohesion fund operation , the beneficiary shall put up , at a location readily visible to the public , a temporary billboard of a significant size for each operation consisting of the financing of infrastructure or construction operations . ”


### no later than three months after completion of an operation , the beneficiary shall put up a permanent plaque or billboard of significant size at a location readily visible to the public for each operation that fulfils the following criteria : ### in subsection 2 . 2 , the introductory part of point 5 is replaced by the following : “5 . no later than three months after completion of an operation , the beneficiary shall put up a permanent plaque or billboard of significant size at a location readily visible to the public of each operation that fulfils the following criterion : ”


### the total public support to the operation exceeds eur 500 000 ; ### in subsection 2 . 2 , in point 5 , point a is deleted :


### ' young farmer ' means a person who is no more than 40 years of age at the moment of submitting the application , possesses adequate occupational skills and competence and is setting up for the first time in an agricultural holding as head of that holding ; setting up may be done solely or jointly with other farmers ; ### ' young farmer ' means a person who is no more than 40 years of age at the moment of submitting the application , possesses adequate occupational skills and competence and is setting up for the first time in an agricultural holding as head of that holding ; setting up may be done solely or jointly , under any legal form , with other farmers . the person in question will be identified as the owner of an associative farm enterprise when included among the shareholders . in this case , any assistance will be limited to the share percentage in the enterprise ; by way of derogation from the first paragraph and in duly justified circumstances , member states may apply the provisions of this point to young farmers who are no more than 40 years of age at the moment of submitting their application , that possesses adequate occupational skills and competence , even though they are already farming on their own right in an agricultural holding as head of that holding . if they have not been in receipt of specific support for young farmers in the 2006 - 2013 cap programme or in the current cap programme 2013 - 2020 , the support should continue for a maximum of five years ;


### “ the commission shall decide , by means of implementing acts , on requests to amend programmes that concern one or more of the following : a change in the programme strategy through a change of more than 50 % in the quantified target linked to a focus area ; a change in the eafrd contribution rate of one or more measures ; a change of the entire union contribution or its annual distribution at programme level ; ” ### in article 11 , point is replaced by the following : “ the commission shall decide , by means of implementing acts , on requests to amend programmes that concern an increase in the eafrd contribution rate of one or more measures . ”


### ' 2 . the beneficiary of support provided in paragraph 1 and shall be the provider of advice or training . support under paragraph 1 shall be granted to the authority or body selected to set up the farm management , farm relief , farm advisory or forestry advisory service . ' ### in article 15 , paragraph 2 is replaced by the following : ' 2 . the beneficiary of support provided in paragraph 1 and shall be either the provider of advice or training or the public body responsible for the selection of the provider . support under paragraph 1 shall be granted to the authority or body selected to set up the farm management , farm relief , farm advisory or forestry advisory service . '


### ' the authorities or bodies selected to provide advice shall have appropriate resources in the form of regularly trained and qualified staff and advisory experience and reliability with respect to the fields in which they advise . the beneficiaries under this measure shall be chosen through calls for tenders . the selection procedure shall be governed by public procurement law and shall be open to both public and private bodies . it shall be objective and shall exclude candidates with conflicts of interest . ' ### in article 15 , subparagraph 1 is replaced by the following : ' the authorities or bodies selected to provide advice shall have appropriate resources in the form of regularly trained and qualified staff and advisory experience and reliability with respect to the fields in which they advise . the providers under this measure shall be chosen through a selection procedure open to both public and private bodies . it shall be objective and shall exclude candidates with conflicts of interest . '


### ' 1 . support under this measure shall cover new participation by farmers and groups of farmers in : ' ### in article 16 , the introductory part is replaced by the following : ' 1 . support under this measure shall cover new participation by farmers and groups of farmers , or participation by farmers or groups of farmers in the five preceding years , in : '


### ' 1 . support under point of article 21 shall be granted to private land - holders , municipalities and their associations and shall cover the costs of establishment and an annual premium per hectare to cover the costs of maintenance for a maximum period of five years . ' ### in article 23 , paragraph 1 is replaced by the following : ' 1 . support under point of article 21 shall be granted to private land - holders , municipalities and their associations and shall cover the costs of establishment , regeneration and / or renovation and an annual premium per hectare to cover the costs of maintenance for a maximum period of five years . '


### ' setting - up of producer groups and organisations ' ### in article 27 , the title is replaced by the following : ' setting - up of producer groups , producer organisations and bargaining organisations '


### ' 1 . support under this measure shall be granted in order to facilitate the setting up of producer groups and organisations in the agriculture and forestry sectors for the purpose of : ' ### in article 27 , the introductory part is replaced by the following : ' 1 . support under this measure shall be granted in order to facilitate the setting up of producer groups , producer organisations and bargaining organisations in the agriculture and forestry sectors for the purpose of : '


### ' other activities that may be carried out by producer groups and organisations , such as the development of business and marketing skills and the organisation and facilitation of the innovation processes . ' ### in article 27 , point is replaced by the following : ' other activities that may be carried out by producer groups , producer organisations and bargaining organisations , such as the development of business and marketing skills and the organisation and facilitation of the innovation processes . '


### ' support shall be granted to producer groups and organisations which are officially recognised by a member state ' s competent authority on the basis of a business plan . it shall be limited to producer groups and organisations that are smes . ' ### in article 27 , the first subparagraph is replaced by the following : ' support shall be granted to producer groups , producer organisations and bargaining organisations which are officially recognised by a member state ' s competent authority on the basis of a business plan . it shall be limited to producer groups , producer organisations and bargaining organisations that are smes . '


### ' member states shall verify that the objectives of the business plan have been reached within five years after recognition of the producer group or organisation . ' ### in article 27 , the second subparagraph is replaced by the following : ' member states shall verify that the objectives of the business plan have been reached within five years after recognition of the producer group , producer organisations or bargaining organisations . '


### ' in the first year member states may pay support to the producer group or organisation calculated on the basis of the average annual value of the marketed production of its members over the three years before they entered the group or organisation . in the case of producer groups and organisations in the forestry sector , support shall be calculated on the basis of the average marketed production of the members of the group or organisation over the last five years before the recognition , excluding the highest and the lowest value . ' ### in article 27 , the second subparagraph is replaced by the following : ' in the first year member states may pay support to the producer group , producer organisations and bargaining organisations calculated on the basis of the average annual value of the marketed production of its members over the three years before they entered the group or organisation . in the case of producer groups , producer organisations and bargaining organisations in the forestry sector , support shall be calculated on the basis of the average marketed production of the members of the group or organisation over the last five years before the recognition , excluding the highest and the lowest value . '


### ' 5 . states may continue support for setting up of producer groups even after they have been recognised as producer organisations under the conditions of regulation no 1308 / 2013 . ' ### in article 27 , paragraph 5 is replaced by the following : ' 5 . member states may continue support for setting up of producer groups even after they have been recognised as producer organisations or as bargaining organisations under the conditions of regulation no 1308 / 2013 . '


### ' 1 . support under this measure shall be granted , per hectare of agricultural area , to farmers or groups of farmers who undertake , on a voluntary basis , to convert to or maintain organic farming practices and methods as defined in regulation no 834 / 2007 and who are active farmers within the meaning of article 9 of regulation no 1307 / 2013 . ' ### in article 29 , paragraph 1 is replaced by the following : ' 1 . support under this measure shall be granted , per hectare of agricultural area and if duly justified also per livestock unit to farmers or groups of farmers who undertake , on a voluntary basis , to convert to or maintain organic farming practices and methods as defined in regulation no 834 / 2007 and who are active farmers within the meaning of article 9 of regulation no 1307 / 2013 '


### ' 1 . support under point of article 36 shall only be granted for insurance contracts which cover for loss caused by an adverse climatic event , or by an animal or plant disease , or a pest infestation , or an environmental incident or a measure adopted in accordance with directive 2000 / 29 / ec to eradicate or contain a plant disease , or pest which destroys more than 30 % of the average annual production of the farmer in the preceding three - year period or a three - year average based on the preceding five - year period , excluding the highest and lowest entry . indexes may be used in order to calculate the annual production of the farmer . the calculation method used shall permit the determination of the actual loss of an individual farmer in a given year . ' ### in article 37 , the introductory part is replaced by the following : ' 1 . support under point of article 36 shall only be granted for insurance contracts which cover for loss caused by an adverse climatic event , or by an animal or plant disease , or a pest infestation , or an environmental incident or a measure adopted in accordance with directive 2000 / 29 / ec to eradicate or contain a plant disease , or pest which destroys more than 20 % of the average annual production of the farmer in the preceding three - year period or a three - year average based on the preceding five - year period , excluding the highest and lowest entry . indexes may be used in order to calculate the annual production of the farmer . the calculation method used shall permit the determination of the actual loss of an individual farmer in a given year . '


### ' support under point of article 36 shall only be granted to cover for loss caused by the outbreak of adverse climatic events , an animal or plant disease , a pest infestation , or a measure adopted in accordance with directive 2000 / 29 / ec to eradicate or contain a plant disease or pest or an environmental incident , which destroy more than 30 % of the average annual production of the farmer in the preceding three - year period or a three - year average based on the preceding five - year period , excluding the highest and lowest entry . indexes may be used in order to calculate the annual production of the farmer . the calculation method used shall permit the determination of the actual loss of an individual farmer in a given year . ' ### in article 38 , subparagraph 2 is replaced by the following : ' support under point of article 36 shall only be granted to cover for loss caused by the outbreak of adverse climatic events , an animal or plant disease , a pest infestation , or a measure adopted in accordance with directive 2000 / 29 / ec to eradicate or contain a plant disease or pest or an environmental incident , which destroy more than 20 % of the average annual production of the farmer in the preceding three - year period or a three - year average based on the preceding five - year period , excluding the highest and lowest entry . indexes may be used in order to calculate the annual production of the farmer . the calculation method used shall permit the determination of the actual loss of an individual farmer in a given year . '