# EUR-Lex - 52015PC0046 - EN

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# 52015PC0046

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 1304/2013 of the European Parliament and the Council on the European Social Fund, as regards an increase of the initial pre-financing amount paid to operational programmes supported by the Youth Employment Initiative /* COM/2015/046 final - 2015/0026 (COD) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

Giving "a new boost to jobs, growth
and investment" is an essential priority of the new Commission. In its
Work Programme for 2015, the Commission committed to take initiatives to
promote integration and employability in the labour market, including measures
to support Member States in getting young people into work. The proposal on the
table regarding the Youth Employment Initiative is one of the ways to take this
priority forward without delay.

The Youth Employment Initiative (YEI) was adopted
following a high-level political call from the European Council of February 2013
to address the unprecedented levels of youth unemployment in certain regions of
the European Union (EU) facing a particularly difficult  situation. The
February 2013 Council and subsequent Council conclusions once again stressed
that the highest priority should be given to promoting youth employment. The
European Council called for the EU budget to be mobilised in support to Member
States' efforts in counteracting this trend. The purpose of the YEI is to provide
additional funding for promoting youth employment to the regions most affected
by youth unemployment including through the implementation of the Council
recommendation on establishing the Youth Guarantee. Support provided under the
YEI can only directly target young people not in employment, education or
training and, unlike the European Social Fund, it cannot support systems and
structures. The YEI is integrated in the programming of the ESF and the
programming arrangements can take the form of a dedicated operational
programme, a dedicated priority axis within an operational programme or a part
of one or more priority axes.

Due to the urgency of the youth
unemployment situation already from the outset the Commission proposed special
provisions so that the total amount of resources allocated to the YEI are committed
(frontloaded) in the first two years of the 2014-2020 programming period, in
order to allow for a speedy and substantial mobilisation of youth measures and
for immediate results. Operations under the YEI therefore have to be
implemented, in principle, by the end of 2018 and not 2023 as it is the case
for other operations supported by the European Structural and Investment Funds
(ESI Funds), including the European Social Fund. In addition, it was decided
that expenditure under the YEI is eligible as from 1 September 2013 and that no
national co-financing is required for the specific allocation for the YEI. There
are also other provisions in the 2014-2020 regulatory framework to speed up the
implementation of the YEI.

The shorter implementation period of the
YEI implies that progress with the implementation on the ground in the first
years will be crucial for the overall success of the Initiative to tackle the
problem faced by 7 million young Europeans who are without a job and are not in
education or training. Any further delays in the implementation of the YEI are
likely to compromise the process and actions undertaken by Member States to
combat youth unemployment.

However, one year after the adoption of the
ESF Regulation and the YEI, the results do not meet the initial expectations. The
frontloading of the YEI commitments as such and the other specific measures for
the YEI have not led to the expected quick mobilisation of the resources from
the YEI. Among the main reasons identified are the ongoing process of
negotiation of the relevant operational programmes and the roll-out of
respective implementation arrangements in the Member States; the limited
capacity of the authorities to launch calls for projects and to process
applications speedily and the lack of sufficient pre-financing to launch the
necessary measures. The latter issue has been raised at political level by, Member
States. A number of them have reported, at various levels, including in the
context of meetings of the Employment, Social Policy, Health and Consumer
Affairs Council (EPSCO) as well as in bilateral meetings with the Commission, that
they are facing significant difficulties in starting the implementation of
operations due to the absence of sufficient funding to advance payments to
beneficiaries. From its side the European Parliament voiced concerns about the
slow take-up of the YEI. This situation is particularly acute in the Member
States with the highest levels of youth unemployment since they are also the
ones which are facing more budgetary constraints and lack of funding.

The Commission has already adopted 28 out
of the 34 operational programmes implementing the YEI and has closed
negotiations on a further four of those programmes which are pending adoption. In
addition, the Council adopted in 2014, a number of country-specific
recommendations calling on Member States to intensify their efforts in reducing
youth unemployment. Administrative capacity and programme implementation
arrangements for the current period are being put in place by the Member States
and the Commission has been supporting this process through technical guidance.
In terms of immediate action on the Commission's side regarding pre-financing,
the present proposal intends to respond to the issue raised by the Member
States.

The current levels of the initial pre-financing
established in the Common Provisions Regulation have proved to be insufficient
to close the existing funding gap and - taking into account the political
commitment entailed by the YEI - to support the effort of providing an immediate
and quick response to the unacceptably high level of youth unemployment in the
EU. The current levels of the initial pre-financing immediately paid upon
adoption of an operational programme equal 1% of the Union contribution to that
operational programme (or 1,5% for Member States under financial assistance).
In addition, interim payments to the Member State can only be made on the basis
of expenditure already incurred by beneficiaries and paid, which is certified
by the Member State. Interim payments are to be used to reimburse beneficiaries
for incurred expenditure. Therefore the interim payments are insufficient to
make advance payments to beneficiaries.

This situation, coupled with the increase in
the rate of young people at risk of poverty or social exclusion, calls for
additional measures to be put in place that address the specificities of the
YEI. The frontloading of the YEI resources should be backed by mechanisms that
can actually ensure a quick mobilisation of the funding to operations in the
first years of the programming period. In particular, it is necessary to ensure
that the initial pre-financing paid to operational programmes implementing the
YEI is sufficient to fund payments to beneficiaries to start and implement
operations. Contrary to the other shared management programmes, the YEI is
supported by a specific allocation which is fully funded by the EU budget. The
specific allocation for the YEI is, thus, the only source of funding under
shared management which benefits of the exemption of the national co-financing
requirement. With the present proposal, the initial pre-financing made
available from the specific allocation for the YEI in 2015 will be increased to
about EUR 1 billion. The present proposal does not alter the initial
pre-financing paid from the ESF to operational programmes implementing the YEI,
neither does it alter the initial pre-financing to be paid in 2016 from the
specific allocation for the YEI. Furthermore, it does not affect the initial
pre-financing paid to other programmes co-financed by other ESI Funds.

This increase of the initial pre-financing from
the specific allocation for the YEI paid to operational programmes supported by
the YEI (irrespective of the form of the programming arrangements) is
considered as adequate and fully in line with the specific rules applicable to
the YEI. Furthermore, this proposal  intends to adjust the YEI pre-financing
profile to the one of cohesion policy programmes and thus allow for the same
level of pre-financing in relation to YEI as is normally the case for other
programmes. In this sense the proposal aims to ensure equal treatment between
the YEI and cohesion policy funds.

Moreover, the initial pre-financing should only
be used by the Member States for payments to beneficiaries in the
implementation of the programme supported by the YEI, in accordance with Article
81 (2) of the Common Provisions Regulation and has to be made available to the responsible
body without delay. In addition, to ensure that the additional pre-financing
results in immediate implementation of the YEI, this proposal foresees for
these operational programmes that if 12 months after the entry into force of
this Regulation the Commission has not received interim payment applications  in
which the Union contribution from the YEI amounts to at least 50% of the
additional pre-financing, the additional pre-financing will need to be
reimbursed to the Commission.

This proposal is in line with the political
commitment of the European Union to provide an immediate  support to the
integration of young people into the labour market.

Last but not least, this proposal of increasing
pre-financing payments to the Member States does not alter the already agreed
overall financial profile of national allocations: it merely proposes to
advance in time the allocations that already have been secured in the EU budget
for the YEI. The present proposal therefore increases the flexibility for the
Member States to access this funding and mobilise it more thoroughly, which
would facilitate its implementation and thus using it to launch measures that
directly benefit the integration of young Europeans into the labour market, notably
through providing jobs, apprenticeships and traineeships.

If the current proposal were not to be
adopted, the implementation of the YEI would continue to be very much delayed –
contrary to the European Council's call for urgent action. As a result of the
lack of readily available funding, crucial and much needed policy measures for
the integration of young people into the labour market would be seriously
hampered.

In this context, there is an urgent need to
increase the amount of funding made available early in the programming period
for operations supported by the YEI. It is therefore necessary to increase the
initial pre-financing of the specific allocation for the YEI to allow speeding
up the implementation of the YEI. The proposed pre-financing rate provides a
maximum impact without exceeding the budget availability for the YEI.

2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

There was no consultation of external
stakeholders.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

It is proposed to introduce an additional
provision in Regulation (EU) No 1304/2013, Article 22a, on the additional initial
pre-financing for operational programmes supported by the YEI.

4.           BUDGETARY IMPLICATION

The proposed modification does not imply
any changes in the Multiannual Financial Framework annual ceilings for
commitments and payments as per Annex I of Regulation (EU) No 1311/2013. The
proposal is budgetary neutral over the 2014-2020 programming period.

The annual breakdown of commitment
appropriations for the YEI remains unchanged.

The increased need for payment
appropriations for the YEI additional initial pre-financing in 2015 will be fully
covered by appropriations of the 2015 budget for the YEI specific allocation. Consequently,
the proposed modification should not trigger a potential backlog of 2014-2020 unpaid
claims.

2015/0026 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

amending Regulation (EU) No 1304/2013 of
the European Parliament and the Council on the European Social Fund, as regards
an increase of the initial pre-financing amount paid to operational programmes
supported by the Youth Employment Initiative

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 164 thereof,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the opinion of the
European Economic and Social Committee[1],

Having regard to the opinion of the
Committee of the Regions[2],

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)       In light of the persistent
high levels of youth unemployment in the Union, a Youth Employment Initiative
(YEI) was established to provide support to young persons not in employment,
education or training in the most affected regions. To ensure a quick response
to fighting youth unemployment, Regulation (EU) No 1303/2013 of the European
Parliament and the Council[3]
and Regulation (EU) No 1304/2013 of the European Parliament and the Council[4] lay down provisions to
allow for a quicker mobilisation of the resources allocated to the YEI, including,
inter alia, the commitment of all the resources in the first two years of the
programming period, the possibility to adopt operational programmes dedicated
to the YEI before the Partnership Agreement is submitted to the Commission and the
eligibility of expenditure incurred with  operations under the YEI as from 1 September
2013.

(2)       The budgetary constraints
faced by Member states and the lack of available funding at the initial stage
of the programming period have caused significant delays in the implementation
of the YEI. Regulation (EU) No 1303/2013 establishes the levels for the initial
pre-financing amount to be paid to ensure that Member States have the means to
provide support to beneficiaries from the start of implementation of
operational programmes. In the context of the YEI these amounts have been considered
insufficient to provide the necessary payments to beneficiaries for the
implementation of operations.

(3)       In order to address the
budgetary constraints faced by Member States at the initial stage of the
programming period and, taking into account the urgent need to address youth
unemployment and the specific features of the YEI, it is appropriate to lay
down provisions in order to complement Regulation (EU) No 1303/2013, with a
view to increase the level of the initial pre-financing paid to operational
programmes supported by the YEI in 2015. To ensure that Member States have sufficient
means to provide payments to beneficiaries responsible for the implementation
of operations that target youth unemployment, an additional initial
pre-financing amount from the specific allocation for the YEI should be paid in
2015 for operational programmes supported by the YEI, in order to complement
the pre-financing amounts paid in accordance with Regulation (EU) No 1303/2013.

(4)       To ensure that the
additional initial pre-financing amount is used for the immediate
implementation of the YEI, it should be foreseen that this amount is reimbursed
to the Commission, if the Union contribution from  the YEI does not amount to
an adequate level in interim payment applications submitted to the Commission 12
months after the entry into force of this Regulation.

(5)       In order to allow for the
prompt application of the measures provided for in this Regulation, this
Regulation should enter into force on the day following that of its publication
in the Official  Journal of the European Union.

(6)       Regulation (EU) No 1304/2013
should therefore be amended accordingly,

HAVE ADOPTED THIS REGULATION:

Article 1

In Regulation (EU) No 1304/2013 the
following Article 22a is inserted:

'Article
22a

Payment
of additional pre-financing to operational programmes supported by the YEI

1.           In addition to the initial
pre-financing amount paid in accordance with point (b) of Article 134(1) of
Regulation (EU) No 1303/2013, an initial pre-financing amount from the specific
allocation for the YEI shall be paid in 2015 for all operational programmes
supported by the YEI, irrespective of the form of the programming arrangement
in accordance with Article 18, in order to increase the initial pre-financing
from the specific allocation for the YEI to 30 %.

2.           For the purposes of the
calculation of the additional pre-financing to be paid pursuant to paragraph 1,
the amounts paid from the specific allocation for the YEI to the operational
programme in accordance with point (b) of Article 134(1) of Regulation (EU) No
1303/2013 shall be deducted.

3.           If 12 months after the
entry into force of this Regulation, Member States do not submit interim payment
applications in which the Union contribution from the YEI is at least equal to 50%
of the additional pre-financing, they shall reimburse to the Commission the total
amount of the additional pre-financing paid in accordance with paragraph 1. The
contribution from the specific allocation for the YEI to the operational
programme concerned shall not be affected by such reimbursement.'

Article 2

This Regulation shall enter into force on
the day following that of its publication in the Official Journal of the European
Union.

This Regulation shall be binding
in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament                                                 For
the Council

The President                                                                           The
President

LEGISLATIVE FINANCIAL STATEMENT

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.    Title of the proposal/initiative

1.2.    Policy
area(s) concerned in the ABM/ABB structure

1.3.    Nature
of the proposal/initiative

1.4.    Objective(s)

1.5.    Grounds
for the proposal/initiative

1.6.    Duration
and financial impact

1.7.    Management
mode(s) planned

2.           MANAGEMENT MEASURES

2.1.    Monitoring
and reporting rules

2.2.    Management
and control system

2.3.    Measures
to prevent fraud and irregularities

3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE

3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected

3.2.    Estimated
impact on expenditure

3.2.1. Summary of
estimated impact on expenditure

3.2.2. Estimated impact
on operational appropriations

3.2.3. Estimated impact
on appropriations of an administrative nature

3.2.4. Compatibility
with the current multiannual financial framework

3.2.5. Third-party
contributions

3.3.    Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE

1.1.        Title of the
proposal/initiative

Proposal for amending Regulation
(EU) No 1304/2013 of the European Parliament and the Council on the European
Social Fund, as regards an increase of the initial pre-financing amount paid to
operational programmes supported by the Youth Employment Initiative

1.2.        Policy area(s) concerned
in the ABM/ABB structure[5]

4 Employment, social affairs and inclusion

040264 Yout Employment Initiative

1.3.        Nature of the
proposal/initiative

 ̈ The
proposal/initiative relates to a new action

 ̈ The
proposal/initiative relates to a new action following a pilot
project/preparatory action[6]

x The
proposal/initiative relates to the extension of an existing action

 ̈ The
proposal/initiative relates to an action redirected towards a new action

1.4.        Objective(s)

1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative

N/A

1.4.2.     Specific objective(s) and
ABM/ABB activity(ies) concerned

Specific objective No

N/A

ABM/ABB activity(ies) concerned

N/A

1.4.3.     Expected result(s) and
impact

Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.

N/A

1.4.4.     Indicators of results and
impact

Specify the
indicators for monitoring implementation of the proposal/initiative.

N/A

1.5.        Grounds for the
proposal/initiative

1.5.1.     Requirement(s) to be met in
the short or long term

N/A

1.5.2.     Added value of EU
involvement

N/A

1.5.3.     Lessons learned from
similar experiences in the past

N/A

1.5.4.     Compatibility and possible
synergy with other appropriate instruments

N/A

1.6.        Duration and financial
impact

 ̈ Proposal/initiative of limited
duration

– 
x Proposal/initiative in effect from 01/01/2015 to 31/12/2023

– 
x Financial impact in 2015

 ̈ Proposal/initiative of unlimited
duration

– 
Implementation with a start-up period from YYYY
to YYYY,

– 
followed by full-scale operation.

1.7.        Management mode(s) planned[7]

 ̈ Direct management by the Commission

– 
 ̈ by its departments, including by its staff in the Union
delegations;

– 
 ̈  by the executive agencies

x Shared management with the Member States

 ̈ Indirect management by entrusting budget implementation tasks to:

– 
 ̈ third countries or the bodies they have designated;

– 
 ̈ international organisations and their agencies (to be specified);

– 
 ̈the EIB and the European Investment Fund;

– 
 ̈ bodies referred to in Articles 208 and 209 of the Financial
Regulation;

– 
 ̈ public law bodies;

– 
 ̈ bodies governed by private law with a public service mission to the
extent that they provide adequate financial guarantees;

– 
 ̈ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that
provide adequate financial guarantees;

– 
 ̈ persons entrusted with the implementation of specific actions in
the CFSP pursuant to Title V of the TEU, and identified in the relevant basic
act.

– If more than one management mode is
indicated, please provide details in the ‘Comments’ section.

Comments

N/A

2.           MANAGEMENT MEASURES

2.1.        Monitoring and reporting
rules

Specify frequency
and conditions.

N/A

2.2.        Management and control
system

2.2.1.     Risk(s) identified

N/A

2.2.2.     Information concerning the
internal control system set up

N/A

2.2.3.     Estimate of the costs and
benefits of the controls and assessment of the expected level of risk of error

N/A

2.3.        Measures to prevent fraud
and irregularities

Specify existing or
envisaged prevention and protection measures.

N/A

3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE

3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected

· Existing budget lines

In order of
multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Heading.............................................] || Diff./Non-diff.[8] || from EFTA countries[9] || from candidate countries[10] || from third countries || within the meaning of Article 21(2)(b) of the Financial Regulation

1 Smart and Inclusive Growth || 04.0264 [Youth Emplyment Initiative] || Diff. || NO || NO || NO || NO

· New budget lines requested

In order of
multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Heading.............................................] || Diff./Non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 21(2)(b) of the Financial Regulation

|| [XX.YY.YY.YY] || || YES/NO || YES/NO || YES/NO || YES/NO

3.2.        Estimated impact on
expenditure

The proposed modification does not imply
any changes in the Multiannual Financial Framework annual ceilings for
commitments and payments as per Annex I of the Regulation (EU) 1311/2013.

The annual breakdown of commitment
appropriations for YEI remains unchanged.

The increased need for payment appropriations
for the YEI initial pre-financing in 2015 will be covered by TITLE 4
(Employment, Social Affairs and Inclusion) appropriations of the 2015 budget
for the ESF and YEI.

3.2.1.     Summary of estimated impact
on expenditure

EUR million (to three decimal places)

Heading of multiannual financial framework || Number 1 || Smart and Inclusive Growth

DG: EMPL || || || 2014 || 2015 || 2016 || 2017 || 2018[11] || 2019 || 2020 || TOTAL

 Operational appropriations || || || || || || || ||

04.0264 [Youth Employment Initiative] || Commitments || (1) || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0

Payments || (2) || 0 || 930.000 || 0 || 0 || -930.000 || 0 || 0 || 0

Appropriations of an administrative nature financed from the envelope of specific programmes[12] || || || || || || || ||

N/A || || (3) || || || || || || || ||

TOTAL appropriations for DG EMPL || Commitments || =1+1a +3 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0

Payments || =2+2a +3 || 0 || 930.000 || 0 || 0 || -930.000 || 0 || 0 || 0

 TOTAL operational appropriations || Commitments || (4) || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0

Payments || (5) || 0 || 930.000 || 0 || 0 || -930.000 || 0 || 0 || 0

 TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0

TOTAL appropriations under HEADING 1 of the multiannual financial framework || Commitments || =4+ 6 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0

Payments || =5+ 6 || 0 || 930.000 || 0 || 0 || -930.000 || 0 || 0 || 0

If more than one heading is affected by the proposal /
initiative:

 TOTAL operational appropriations || Commitments || (4) || || || || || || || ||

Payments || (5) || || || || || || || ||

 TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || || || || || || || ||

TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 || || || || || || || ||

Payments || =5+ 6 || || || || || || || ||

Heading of multiannual financial framework || 5 || ‘Administrative expenditure’

EUR million (to three decimal places)

|| || || Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

DG: <.......> ||

 Human resources || || || || || || || ||

 Other administrative expenditure || || || || || || || ||

TOTAL DG <.......> || Appropriations || || || || || || || ||

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || || || || || || || ||

EUR million (to three decimal places)

|| || || Year N[13] || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || || || || || || || ||

Payments || || || || || || || ||

3.2.2.     Estimated impact on
operational appropriations

– 
 ̈  The proposal/initiative does not require the use of operational
appropriations

– 
x The proposal/initiative requires the use of operational
appropriations, as explained below:

Commitment appropriations in EUR million (to three
decimal places)

Indicate objectives and outputs ò || || || Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

OUTPUTS

Type[14] || Average cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || Total No || Total cost

SPECIFIC OBJECTIVE No 1[15]... || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

Subtotal for specific objective No 1 || || || || || || || || || || || || || || || ||

SPECIFIC OBJECTIVE No 2 ... || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

Subtotal for specific objective No 2 || || || || || || || || || || || || || || || ||

TOTAL COST || || || || || || || || || || || || || || || ||

3.2.3.     Estimated impact on appropriations
of an administrative nature

3.2.3.1.  Summary

– 
x The proposal/initiative does not require the use of appropriations
of an administrative nature

– 
 ̈  The proposal/initiative requires the use of appropriations of an
administrative nature, as explained below:

EUR million (to
three decimal places)

|| Year N [16] || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

HEADING 5 of the multiannual financial framework || || || || || || || ||

Human resources || || || || || || || ||

Other administrative expenditure || || || || || || || ||

Subtotal HEADING 5 of the multiannual financial framework || || || || || || || ||

Outside HEADING 5[17] of the multiannual financial framework || || || || || || || ||

Human resources || || || || || || || ||

Other expenditure of an administrative nature || || || || || || || ||

Subtotal outside HEADING 5 of the multiannual financial framework || || || || || || || ||

TOTAL || || || || || || || ||

The appropriations
required for human resources and other expenditure of an administrative nature
will be met by appropriations from the DG that are already assigned to
management of the action and/or have been redeployed within the DG, together if
necessary with any additional allocation which may be granted to the managing
DG under the annual allocation procedure and in the light of budgetary constraints.

3.2.3.2.  Estimated requirements of
human resources

– 
x The proposal/initiative does not require the use of human
resources.

– 
 ̈  The proposal/initiative requires the use of human resources, as
explained below:

Estimate to be expressed in full time
equivalent units

|| || Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6)

||  Establishment plan posts (officials and temporary staff) || ||

|| XX 01 01 01 (Headquarters and Commission’s Representation Offices) || || || || || || ||

|| XX 01 01 02 (Delegations) || || || || || || ||

|| XX 01 05 01 (Indirect research) || || || || || || ||

|| 10 01 05 01 (Direct research) || || || || || || ||

 External staff (in Full Time Equivalent unit: FTE)[18] ||

|| XX 01 02 01 (AC, END, INT from the ‘global envelope’) || || || || || || ||

|| XX 01 02 02 (AC, AL, END, INT and JED in the delegations) || || || || || || ||

|| XX 01 04 yy [19] || - at Headquarters || || || || || || ||

|| - in Delegations || || || || || || ||

|| XX 01 05 02 (AC, END, INT - Indirect research) || || || || || || ||

|| 10 01 05 02 (AC, END, INT - Direct research) || || || || || || ||

|| Other budget lines (specify) || || || || || || ||

|| TOTAL || || || || || || ||

XX is the policy area or budget title
concerned.

The human resources
required will be met by staff from the DG who are already assigned to
management of the action and/or have been redeployed within the DG, together if
necessary with any additional allocation which may be granted to the managing
DG under the annual allocation procedure and in the light of budgetary
constraints.

Description of
tasks to be carried out:

Officials and temporary staff ||

External staff ||

3.2.4.     Compatibility with the
current multiannual financial framework

– 
x The proposal/initiative is compatible the current multiannual
financial framework.

– 
 ̈  The proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.

Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.

– 
 ̈  The proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework.

Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.

3.2.5.     Third-party contributions

– 
The proposal/initiative does not provide for
co-financing by third parties.

– 
The proposal/initiative provides for the
co-financing estimated below:

Appropriations in EUR million (to three decimal
places)

|| Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || Total

Specify the co-financing body || || || || || || || ||

TOTAL appropriations co-financed || || || || || || || ||

3.3.        Estimated impact on
revenue

– 
x The proposal/initiative has no financial impact on revenue.

– 
 ̈  The proposal/initiative has the following financial impact:

– 
 ̈         on own resources

– 
 ̈         on miscellaneous revenue

EUR
million (to three decimal places)

Budget revenue line: || Appropriations available for the current financial year || Impact of the proposal/initiative[20]

Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6)

Article ............. || || || || || || || ||

For miscellaneous
‘assigned’ revenue, specify the budget expenditure line(s) affected.

Specify the method for
calculating the impact on revenue.

[1]               OJ C , , p. .

[2]               OJ C , , p. .

[3]               Regulation (EU) No 1303/2013 of the European
Parliament and of the Council of 17 December 2013 laying down common provisions
on the European Regional Development Fund, the European Social Fund, the
Cohesion Fund, the European Agricultural Fund for Rural Development and the
European Maritime and Fisheries Fund and laying down general provisions on the
European Regional Development Fund, the European Social Fund, the Cohesion Fund
and the European Maritime and Fisheries Fund and repealing Council Regulation
(EC) No 1083/2006,    OJ L 347, 20.12.2013, p. 320.

[4]               Regulation (EU) No 1304/2013 of the European
Parliament and of the Council of 17 December 2013 on
the European Social Fund and repealing Council Regulation (EC) No 1081/2006, OJ
L 347, 20.12.2013, p. 470.

[5]               ABM: activity-based management; ABB: activity-based
budgeting.

[6]               As referred to in Article 54(2)(a) or (b) of the
Financial Regulation.

[7]               Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[8]               Diff. = Differentiated appropriations / Non-diff. =
Non-differentiated appropriations.

[9]               EFTA: European Free Trade Association.

[10]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.

[11]             In line with Art. 136 of Regulation (EU) No 1303/2013 the
pre-financing shall be justified (cleared) with YEI expenditure declared by
31/12/2018.

[12]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former ‘BA’ lines), indirect research, direct research.

[13]             Year N is the year in which implementation of the
proposal/initiative starts.

[14]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).

[15]             As described in point 1.4.2. ‘Specific objective(s)...’

[16]             Year N is the year in which implementation of the
proposal/initiative starts.

[17]             Technical and/or administrative assistance and expenditure
in support of the implementation of EU programmes and/or actions (former
‘BA’ lines), indirect research, direct research.

[18]             AC= Contract Staff; AL = Local Staff; END= Seconded
National Expert; INT = agency staff; JED= Junior Experts in Delegations.

[19]             Sub-ceiling for external staff covered by operational
appropriations (former ‘BA’ lines).

[20]             As regards traditional own resources (customs duties,
sugar levies), the amounts indicated must be net amounts, i.e. gross amounts
after deduction of 25 % for collection costs.