# EUR-Lex - 52011PC0750 - EN

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# 52011PC0750

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing, as part of the Internal Security Fund, the instrument for financial support for external borders and visa /* COM/2011/0750 final - 2011/0365 (COD) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

The policies related to the Area of
Freedom, Security and Justice have been steadily growing in importance over the
last years. These policies are at the heart of the European project to create
an area without internal borders where Union citizens and third-country
nationals may enter, circulate, live and work, bringing new ideas, capital,
knowledge and innovation or filling gaps in the national labour markets,
confident that their rights are fully respected and their security assured. The
growing importance of home affairs policies has been confirmed by the 2009
Stockholm Programme,[1]
and it is also one of the areas which have seen important changes under the
Lisbon Treaty.

In the field of Internal Security, key
documents such as the Commission's Communication on the Internal Security
Strategy[2]
have provided clear guidance on the direction of activities in the years to
come. For border management and visa policy, the Communication on Migration[3] outlined in more detail the
challenges ahead in relation to border security and the development of an area
without internal borders. The Communication on the Schengen governance[4] presented proposals to strengthen
the Schengen acquis by means of a governance system capable of responding
effectively, and in a timely and coordinated Union-wide way, to exceptional
circumstances and challenges which might put the overall functioning of
Schengen at stake. The Communication on smart borders – options and the way
ahead[5]
outlines how new IT systems such as an Entry/exit system and a Registered Traveller
Programme can contribute to a better management of migration flows in the Union.

A key component in the common integrated
border management system has been the development of Union solidarity
mechanisms, supporting a uniform and high-quality application of the Union
standards on border management and the common visa policy. Enhancing the coordination
of operational co-operation by the Member States on border control through the Frontex
Agency constitutes an important step towards the development of the system.
Moreover, with the External Borders Fund, the Union expresses solidarity
through financial assistance to those Member States that apply the Schengen
provisions on external borders and visa.

The Stockholm Programme
explicitly called for the creation of a Fund to support
the implementation of the Internal Security Strategy and a coherent and
comprehensive approach to law enforcement cooperation, including the management
of the Union's external borders.

Against this background, in its proposal of
29 June 2011 on the next multi-annual financial framework for the period
2014-2020[6],
the Commission suggested to set up an Internal Security Fund, as part of a
simplified two-Fund structure for future expenditure in the home affairs area
which also includes the creation of an Asylum and Migration Fund. The Internal
Security Fund will have a global budget of € 4,648 million (in current prices)
to support the implementation of the five strategic objectives set by the
Internal Security Strategy: disrupting international crime networks; preventing
terrorism and addressing radicalisation and recruitment; raising levels of
security for citizens and businesses in cyberspace; strengthening security
through border management; and increasing Europe's resilience to crises and
disasters.

Due to the different Treaty bases for the broad
range of strategic objectives to be covered, it is not legally possible to
establish the Internal Security Fund as a single financial instrument. It is
therefore proposed to establish the Fund as a comprehensive financing framework
comprising two sector-specific proposals – of which this is one - complemented
by a horizontal instrument laying down common provisions.

The legal architecture is explained in more
detail under section 3.

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

In accordance with the greater emphasis
placed on evaluation as a tool to inform policy making, this proposal is
informed by evaluation results, stakeholder consultation and impact assessment.

Work on the preparation of the future
financial instruments for home affairs started in 2010 and continued into 2011.
As part of this preparatory work, an evaluation/impact assessment study was
launched in December 2010 with the aid of an external contractor. This study
was completed in July 2011 and brought together available evaluation results
for the existing financial instruments and informed the problems, objectives
and policy options, including their likely impact, examined in the impact
assessment. Building upon this study, the Commission prepared an impact
assessment report on which the Impact Assessment Board delivered its opinion on
9 September 2011.

In accordance with the greater emphasis placed on evaluation as a
tool to inform policy making, this legislative proposal took also full account
of the mid-term evaluation of the External Borders Fund. In its report of [...
November 2011], the Commission assessed the
quantitative and qualitative aspects of the implementation of the Fund for the
period 2007-2009. The report presents an overview of the concrete activities undertaken in Member States under the Fund to
improve the management of the Union's external borders and the handling of
visas at national level. It highlights in particular measures by Member States
in document security, the considerable investments made to reinforce border
surveillance capabilities for the Mediterranean and the Atlantic approaches and
pilot projects on automated border control and registered travellers'
programmes.

The results of a dedicated on-line public consultation on the future
of home affairs funding[7],
which ran from 5 January to 20 March 2011 and was open to stakeholders from
within the Union and from third countries, have all been taken into
consideration in the preparation of this proposal. A total of 115 responses
were received from individuals and on behalf of organisations, including 8
position papers. Respondents from all Member States contributed to the
consultation as well as respondents in some third countries.

In April 2011 the conference "The
future of EU funding for Home Affairs: A fresh look" brought together key
stakeholders (Member States, international organisations, civil society
organisations etc) and gave them the opportunity to share their views on the
future of EU funding for home affairs. The conference was also an occasion to
validate the outcome of the stock taking and the public consultation.

The future of EU funding for home affairs
was raised and discussed with institutional stakeholders on numerous occasions,
including at an informal lunch discussion during the JHA Council on 21 January
2011, an informal breakfast with the political coordinators of the European
Parliament on 26 January 2011, at the hearing of Commissioner Malmström before
the Parliament's SURE Committee on 10 March 2011 and during an exchange of
views between the Director-General of DG Home Affairs and the Parliament's LIBE
Committee on 17 March 2011.

Specific expert advice on the future
financial instruments in the area of Internal Security was provided through
discussions that took place during the EOS Conference on Industry and Security
on 9 February 2011 and at the Immigration and Asylum Committee of 22 February
2011. Moreover, technical aspects linked to the implementation of the future
financial instrument in the area of Internal Security were also discussed on
the basis of a written consultation in April 2011 with Member States' experts
within the framework of the common Committee for the General Programme on Solidarity
and Management of Migration Flows ("SOLID Committee").

These consultations, conferences and expert
discussions confirmed that there is an overall consensus among key stakeholders
on the need to broaden the scope of action for Union funding in the field of
internal security, including as regards its external dimension, and a need to
work towards more simplification in the delivery mechanisms and greater
flexibility, notably to respond to emergencies. In order to add value, Union
spending should reflect better Union level priorities and strategic commitments
and should support the implementation of the Union home affairs acquis.
In the area of internal security, stakeholders considered that the broad
thematic priorities have already been fixed by the 2009 Stockholm Programme and
the 2010 Internal Security Strategy. A future funding mechanism should
therefore be defined comprehensively, comprising law enforcement, border guards
and customs communities. The need to make greater use of relevant Union
agencies, such as Europol and Frontex was also considered important. There was
broad support to reduce the number of financial instruments to a two-Fund
structure on the condition that this leads to simplification. Stakeholders also
agreed on the need for a flexible emergency response mechanism. Shared
management with a move to multi-annual programming was generally seen as the
appropriate management mode for home affairs spending. Non-governmental
organisations, however, were of the view that direct management should also be continued.

3.           LEGAL ELEMENTS OF THE PROPOSAL

The right to act derives from Article 3(2)
of the Treaty on European Union which states that "the Union shall offer
its citizens an area of freedom, security and justice without internal
frontiers, in which the free movement of persons is ensured in conjunction with
appropriate measures with respect to external border controls, asylum,
immigration and the prevention and combating of crime".

Union action is justified on the grounds of
the objectives laid out in Article 67 of the Treaty on the Functioning of the
Union (TFEU, hereafter the Treaty), setting out the means to constitute an area
of freedom, security and justice. Attention is also drawn to Article 80 of the Treaty
which underlines that these policies of the Union and their implementation
shall be governed by the principle of solidarity and fair sharing of
responsibility, including its financial implications, between the Member
States.

The creation of the Internal Security Fund
requires the adoption of two legislative instruments which jointly constitute
the Fund. This overall structure was chosen in light of the Treaty obligations.
Due to different voting rules in the Council pursuant to Protocols 19 (on the
Schengen acquis) and 21 (the position of the United Kingdom and Ireland in
respect of the area of Freedom, Security and Justice) and 22 (the position of
Denmark, including in relation to Title V, part three of the Treaty) it is not
legally possible to draw up one single comprehensive legislative proposal for
an Internal Security Fund, despite the coherence of the policy objectives to be
addressed.

The Internal Security Fund is therefore
created as a comprehensive financial framework which is composed of two separate
acts, setting up the different components of the Fund and laying down the
objectives, the eligible actions and the envelopes of each component:

–
A Regulation setting up, as part of the Fund,
the component for police co-operation, preventing and combating crime, and crisis
management;

–
A Regulation setting up, as part of the Fund,
the border management and common visa policy component;

Within the comprehensive financing framework
of the Internal Security Fund, this Regulation defines accordingly the
financial support for border management and the common visa policy.

The legal base for this Regulation is Article 77 of the Treaty.

Overall, this is an area where there is a
clear added value in Union interventions compared to Member States acting
alone. The Union is in a better position than Member States to provide a
framework for expressing Union solidarity in border control, visa policy and
the management of migration flows, and to provide a platform for the
development of common IT systems underpinning these policies. The financial
support provided under this Regulation therefore contributes in particular to
strengthening national and European capabilities in those areas. For that
purpose, the Regulation inter alia aims to support more systematically the
services provided by individual Member States in securing the border free area
("operating support mechanism"), to enhance the interagency cooperation
between border and other law enforcement authorities and to increase the
available specialised equipment in Member States to be put at the disposal of
the Frontex Agency for joint operations in the interest of safeguarding the
border free area. However, it is fully acknowledged that interventions should
take place at an appropriate level and the role of the Union should not go
beyond what is necessary. As the Budget Review has highlighted, the "EU
budget should be used to finance EU public goods, actions that Member States
and regions cannot finance themselves, or where it can secure better
results".[8]

4.           BUDGETARY IMPLICATION

The Commission's proposal for the next multi-annual
framework includes a proposal of EUR 4,648 million (in current prices) for the
Internal Security Fund for the period 2014-2020. Within this global envelope,
the resources available for the implementation of this specific Regulation amount
to EUR 3,520 million. Indicatively, about 61% of this amount (EUR 2,150
million) should be used for national programmes of Member States and the
support to the Special Transit Scheme implemented by Lithuania, 31% (EUR 1,100
million) should be dedicated to the development of the smart border package and
the remainder should then be available to fund Union actions, emergency actions
and technical assistance, whilst taking into account also the contributions
expected from the Schengen associated countries, which would be added to the
total envelope.

EUR million

Internal Security Fund including new IT systems || 4,648

- Police cooperation instrument || 1,128

- Border instrument || 3,520

Moreover, in accordance with the June 2011
Communication, outside the scope of the Internal Security Fund, a separate
envelope of EUR 822 million (current prices) is set aside for the management of
existing large scale-IT systems (Schengen Information System II, Visa
Information System and Eurodac). The management of these systems will gradually
be transferred from the Commission to the future Agency for the Operational
Management of Large-Scale IT-Systems in the Area of Freedom Security and
Justice (IT Agency) after it begins operations in late 2012.

5.           MAIN ELEMENTS OF THE PROPOSAL

5.1.        Focusing on strategic
priorities

By establishing an instrument for the
financial support of the management of external borders and the common visa
policy for the period 2014-2020, the Union will be able to

·
support and reinforce the national capabilities
in the area of border control and visa policy and thus expressing financial
solidarity with the tasks entrusted to individual Member States at external borders
and in consulates in the interest of the border-free area as a public service
provided to the Union (national programmes, including "operating
support");

·
finance the development of the smart border
package, i.e. the setting up of an EU Entry Exit System (EES) and an EU
Registered Traveller Programme (RTP);

·
finance the introduction and operation of the
European Border Surveillance System, EUROSUR, notably through the purchase of
equipment, infrastructure and systems in Member States;

·
reinforce the Schengen governance and the
evaluation and monitoring mechanism to verify the application of the Schengen
acquis by (a) funding the operation of that mechanism under direct management;
(b) introducing conditionalities based on compliance with the Schengen acquis
for the disbursement of operating support to Member States and (c) requiring
Member States to (re)allocate resources received for programmes under this instrument
with priority to remedy weaknesses if these have been identified under the
mechanism;

·
boost the operational potential of the Frontex
Agency by inviting Member States to earmark additional resources under their
programmes for specialised equipment which can be put at the disposal of the
Agency for its joint operations;

·
support the development and implementation of
the relevant Union policies in the EU, in and with third countries under
"Union actions", thus improving the overall management of migration
flows to the Union (projects managed either directly, such as studies or pilot
projects to reinforce co-operation with third countries, or indirectly, in
accordance with the Financial Regulation[9];

·
have readily available adequate resources to
provide emergency assistance in case of situations of urgent or exceptional
migratory pressure;

·
continue support for the functioning of the
Specific Transit Scheme for Lithuania, in accordance with the obligations of
the EU[10],
providing support to compensate for foregone fees from transit visas and
additional costs incurred by Lithuania in implementing the Facilitated Transit
Document (FTD) and Facilitated Rail Transit Document (FRTD) scheme, such as
replacing and upgrading equipment, IT systems, training and operational costs.

The instrument will allow for a
comprehensive support of the four-tiers access controlmodel underlining the
concept of integrated border management (measures in third countries,
co-operation with neighbouring countries, border control and measures within
the area of freedom of movement).

5.2. Resources for IT systems and the
smart borders package

Under the national programmes, Members
States could use their allocations to support the management and where
appropriate, upgrading of national components of the existing large scale IT
systems.

Moreover, the development and maintenance
of future IT systems ("smart borders package") in this area will
be covered by this instrument. As indicated in the Communication on smart
borders, the Commission intends to present proposals for a Union Entry Exit
System (EES) and a Union Registered Traveller Programme (RTP) in the first half
of 2012. Consequently, under this instrument it is envisaged to establish a specific
spending programme only for the development of an EEAS and an RTP.

The cost would include not just the central
(Union-level) components but also the national components (Member States) of
these IT systems, within the resources available.

The cost of developing a central and
national systems for EES and RTP has been estimated between about 1 and 1.3 billion
EUR, depending on the options Significant cost savings can be achieved if the
EES preferred option is built together (i.e. on the same technical platform)
with the RTP preferred option[11].
On the basis of these assumptions and given that development would only start as
from 2015, it is proposed to set aside 1.1 billion EUR for these two systems
under this proposal, without prejudice to the future proposals from the
Commission on the smart borders package and the subsequent decision of the European
Parliament and the Council.

The Commission envisages to give the
implementation tasks of this programme to the Agency for the Operational
Management of Large-Scale IT-Systems in the area of Freedom, Security and
Justice established by Regulation (EU) N° 1077/2011 of the European Parliament
and the Council.[12]
This Regulation would in this case be amended at the appropriate time to include
the tasks specifically in the mission of the Agency and the relevant amounts of
the Agency's subsidy would be met from the operational appropriations of the
programme.

5.3.        Resources for national
programmes

The current practice under the Funds of the
General Programme Solidarity and Management of Migration Flows of fixing at the
start of the period the criteria for the allocations which Member States will
receive for the whole 7-year period ensures continuity and a certain degree of
predictability. However, it is essentially a static approach which does not
incentivise the Member States to implement actions which respond to Union
priorities and does not allow the EU to respond to changing situations and
priorities through significant and concentrated reallocations of resources. The
mechanism chosen for the distribution and implementation of resources under the
future Funds should therefore reconcile the need on the one hand for continuity
and stability, as a pre-condition for sound multiannual programming, and on the
other hand the need for more flexibility and adaptation to change.

In view of the above, the allocation of
funding under shared management is based on a combination of:

–
A basic amount allocated to the Member States at
the start of the next Multi-annual Financial Framework (MFF);

–
A flexible amount to be added to the basic
amount, allocated in two phases.

The basic amount is allocated to the Member
States at the start of the next MFF and calculated on the basis of objective
criteria and needs. It is 60% of the overall envelope for national programmes
and the allocations are laid down per Member State in Annex I of this
Regulation. They are based on the 2010-2012 calculations under the External
Borders Fund, whilst incorporating a minimum amount for each Member State. This
will ensure some continuity with the current MFF and give the Member States financial
stability to plan their national multiannual programmes.

·
The flexible amount will be added to the basic
amount depending on the willingness of each Member State to finance under its
national programme actions that respond to specific Union priorities. These
specific actions are defined in Annex II and can be amended. In principle, it would
be allocated in two phases: at the start of the MFF, as part of the policy
dialogue and negotiations on the national programmes of the relevant Member
States, and during a mid-term review in 2017.

This mid-term review would be the occasion
to re-examine the situation in Member States and to allocate new resources for
the remaining years of the MFF (2018-2020). For this Regulation, the mid term
review will be based on a combination of a forward looking risk assessment and Union
priorities, as redefined by the Union. Because the basic amounts for the Member
States were determined on the basis of historic data at the start of the
programming period, an update will be appropriate. These risk/needs assessments
could be produced with the help of the Frontex Agency. Member States who, on
the basis of these assessments, have more needs or face increased risks will
receive an additional amount, thereby giving tangible expression to the
principle of solidarity and responsibility-sharing.

5.4.      Actions in and in relation to
third countries

In relation to the external dimension in
this area, there would be targeted support to enhance cooperation with third
countries and to reinforce certain key aspects of their border surveillance and
management capabilities in areas of interest to the Union's migration policy
and Union's internal security objectives. For example, in the framework of EUROSUR,
funding could be made available to link third countries' systems and
infrastructures to the Union's in order to allow for the regular exchange of
information. Such actions shall not be directly development oriented and shall
complement, as appropriate, the financial assistance provided through the Union's
external aid instruments, which remain the main source of funding to help
third-countries build their relevant capacities. In implementing such support,
full coherence will be sought with the principles and general objectives of the
Union external action and foreign policy related to the country or region in
question. Complementarity will be ensured through enhanced coordination with
the EEAS and the relevant Commission services.

Such actions will be managed directly by
the Commission or indirectly, by entities or persons other than Member States
in accordance with the Financial Regulation.

5.5.      Union agencies

To use more effectively the competences and
expertise of relevant Union agencies in the home affairs field, the Commission
also envisages to make use of the possibility offered by the Financial Regulation
to entrust, with the resources available under this Regulation, the implementation
of specific tasks to such agencies, in the framework of their missions and in complementarity
to their work programmes. For the tasks covered under this Instrument this
concerns in particular:

–
the European Agency for the Management of
Operational Cooperation at the External Borders of the Member States of the
European Union (Frontex Agency), for activities in and outside the Union
requiring operational expertise on border control;

–
the European Asylum Support Office (EASO), for
activities such as training on asylum addressed to border guards;

–
the European Police Office (Europol) and the
European Police College (CEPOL) in the light of interagency co-operation of law
enforcement authorites with border guards;

–
the Agency for the Operational Management of
Large-Scale IT-Systems in the Area of Freedom Security and Justice (IT Agency)
insofar as the development of new IT systems is concerned.

2011/0365 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

establishing, as part of the Internal
Security Fund, the instrument for financial support for external borders and
visa

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 77(2) 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[13],

Having regard to the opinion of the
Committee of the Regions[14],

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)
The Union's objective of ensuring a high level
of security within an area of Freedom, Security and Justice (Article 67(3) of
the Treaty on the Functioning of the Union) should be achieved, inter alia,
through common measures on the crossing of internal borders by persons and
border control at external borders and the common visa policy as part of a
multi-layer system aimed at facilitating legitimate travel and tackling illegal
immigration.

(2)
The EU Internal Security Strategy, adopted by
the Council in February 2010[15],
constitutes a shared agenda for tackling these common security challenges. The
Commission's Communication of November 2010 "The EU Internal Security
Strategy in Action"[16]
translates the strategy's principles and guidelines into concrete actions by
identifying five strategic objectives: to disrupt international crime networks,
to prevent terrorism and address radicalisation and recruitment, to raise
levels of security for citizens and businesses in cyberspace, to strengthen
security through border management and to increase Europe's resilience to
crises and disasters.

(3)
Solidarity among Member States, clarity about
the division of tasks, respect for fundamental rights and the rule of law as
well as a strong focus on the global perspective and the inextricable link with
external security should be key principles guiding the implementation of the
Internal Security Strategy.

(4)
To promote the implementation of the Internal
Security Strategy and to ensure that it becomes an operational reality, Member
States should be provided with adequate Union financial support by setting up
an Internal Security Fund.

(5)
Due to the legal particularities applicable to
Title V of the Treaty, it is not legally possible to establish the Internal
Security Fund as a single financial instrument.

(6)
The Fund should therefore be established as a
comprehensive framework for EU financial support in the field of internal
security comprising the instrument established by this Regulation as well as
the instrument established by Regulation .../2012/EU establishing
as part of the Internal Security Fund, the instrument for financial support for
police co-operation, preventing and combating crime, and crisis management . This comprehensive framework should be complemented by Regulation
.../2012/EU laying down general provisions on the Asylum and Migration Fund and
on the instrument for financial support for police
co-operation, preventing and combating crime, and crisis management[17] to which this Regulation should refer as regards rules on programming,
financial management, management and control, clearance of accounts, closure of
programmes and reporting and evaluation.

(7)
Solidarity and responsibility sharing between
Member States and the Union in the management of the external borders is one of
the five components of the common policy for the management for the external
borders.

(8)
The Internal Security Fund should express
solidarity through financial assistance to those Member States that fully apply
the Schengen provisions on external borders as well as to those who are
preparing for full participation in Schengen.

(9)
Participation by a Member State should not
coincide with its participation in a temporary financial instrument of the
Union which supports the beneficiary Member States to finance inter alia actions
at new external borders of the Union for the implementation of the Schengen
acquis on borders and visa and external border control.

(10)
The part of the Fund relating to external borders
and visa (hereafter "the Instrument") should build on the capacity
building process developed with the assistance of the External Borders Fund established
by Decision No 574/2007 of the European Parliament and the Council[18] and extend it to take into
account new developments.

(11)
When executing tasks at external borders and
consulates in accordance with the Schengen acquis on borders and visas, Member
States carry out activities in the interest of and on behalf of all other
Member States in the Schengen area and thus performing a public service for the
Union. To express solidarity, the Instrument should contribute to supporting operating
costs related to border control and visa policy and enable Member States to
systematically maintain capabilities crucial for that service for all. Such
support consists of full reimbursement of a choice of costs related to the
objectives under this instrument and will form an integral part of the national
programmes.

(12)
The Instrument should complement and reinforce
the activities undertaken to develop operational cooperation under the aegis of
the European Agency for the Management of Operational Cooperation at the External Borders
of the Member States of the European Union as established by Regulation (EC) No
2007/2004 (hereinafter referred to as "the Frontex
Agency")[19],
including the new activities resulting from the amendments introduced by Regulation
[...][20],
and thereby further reinforce the solidarity between those Member States
controlling external borders in the interest and on behalf of the the Schengen
area as a whole.

(13)
This instrument should be implemented in full
respect of the rights and principles enshrined in the Charter of Fundamental
Rights of the European Union.

(14)
To ensure a uniform and high-quality external
border control and to facilitate legitimate travel across external borders
within the framework of the EU internal security strategy, the Instrument should
contribute to the development of a European common integrated border management
system, which includes all the measures involving policy, legislation,
systematic co-operation, the distribution of the burden, personnel, equipment
and technology taken at different levels by the competent authorities of the
Member States, acting in co-operation with the Frontex Agency, with
third-countries and, where necessary, with other actors, utilising, inter alia,
the four-tier border security model and integrated risk analysis of the
European Union.

(15)
In accordance with Protocol No 5 to the 2003 Act
of Accession[21]
on the transit of persons by land between the region of Kaliningrad and other
parts of the Russian Federation, the Instrument should bear any additional cost
incurred in implementing the specific provisions of the Union acquis covering
such transit, i.e. Council Regulation (EC) No 693/2003 of 14 April 2003
establishing a specific Facilitated Transit Document (FTD), a Facilitated Rail
Transit Document (FRTD) and amending the Common Consular Instructions and the
Common Manual[22]
and Council Regulation (EC) No 694/2003 on uniform formats for Facilitated
Transit Documents (FTD) and Facilitated Rail Transit Documents (FRTD) provided
for in Regulation (EC) No 693/2003[23].
The need for continued financial support for foregone fees, however, should be
dependent upon the visa regime of the Union in force with the Russian
Federation.

(16)
            It should include support for national
measures and cooperation between Member States in the area of visa policy and
other pre-frontier activities that take place prior to external border
controls. The efficient management of activities organised by the services of
the Member States in third countries is in the interest of the common visa
policy as part of a multi-layered system aimed at facilitating legitimate
travel and tackling irregular immigration into the European Union, and
constitutes an integral part of the common integrated border management system.

(17)
Moreover, it should support measures in the
territory of the Schengen countries as part of the development of a common
integrated border management system which strengthens the overall functioning
of the Schengen area.

(18)
The Instrument should also support the
development by the European Union of IT systems which would equip Member States
with the tools to manage the movement of third-country nationals across borders
more efficiently and to ensure a better identification and verification of
travellers ("smart borders"). To this end, a programme should be
established the aim of which is to cover cost for the development of both the
central and national components of such systems, ensuring technical
consistency, cost savings and a smooth implementation in the Member States.;

(19)
To address immediately unforeseen migratory
pressure and threats to border security it should be possible to provide
emergency assistance in accordance with the framework set out in Regulation ...
2012/EU laying down general provisions on the Asylum
and Migration Fund and on the instrument for financial
support for police co-operation, preventing and combating crime, and crisis
management.

(20)
Moreover, in the interest of enhanced solidarity
in the Schengen area as a whole, where weaknesses or possible threats are
identified, notably following a Schengen evaluation, the Member State concerned
should follow the matter up adequately by using resources under its programmes by
priority, where applicable, complementing emergency assistance measures.

(21)
To reinforce solidarity and responsibility
sharing, Member States should be encouraged to use a part of the resources
available under the programmes for specific priorities defined by the Union,
such as the purchase of technical equipment needed by the Frontex Agency and
the development of consular co-operation for the Union.

(22)
To safeguard the application of the Schengen
acquis throughout the Schengen area, the implementation of the Regulation on
the establishment of an evaluation and monitoring
mechanism to verify the application of the Schengen acquis[24] should
also be supported under this Regulation, as an essential tool to accompany the
policies ensuring the absence of any controls on persons.

(23)
In light of the experiences gained with the
External Borders Fund and the development of the SIS and VIS, it is considered
appropriate to allow for flexibility regarding possible transfers of resources
between the different means of implementation of the objectives pursued under
the Instrument, without prejudice to the principle of ensuring from the start a
critical mass and financial stability for the programmes and the operating support
for Member States.

(24)
In the same vein, the scope of the actions and
the ceiling for resources which remain available to the Union ("Union
actions") should be increased to enhance the capacity of the Union to
carry out in a given budget year multiple activities on the management of
external borders and the common visa policy in the interest of the Union as a
whole, when and insofar as the needs arise. Such Union actions include studies
and pilot projects to further the policy and its application, measures or
arrangements in third countries addressing migratory pressures from those countries
in the interest of an optimal management of migration flows into the Union and an
efficient organisation of the related tasks at external borders and consulates.

(25)
Measures in and in relation to third countries
supported through this Instrument should be taken in synergy and coherence with
other actions outside the EU supported through Union external assistance
instruments, both geographic and thematic. In particular, in implementing such
actions full coherence should be sought with the principles and general
objectives of the Union external action and foreign policy related to the
country or region in question. They should not be intended to support actions
directly development-oriented and they should complement, when appropriate, the
financial assistance provided through external aid instruments. Coherence will
also be sought with the Union humanitarian policy, in particular as regards the
implementation of emergency measures.

(26)
Funding from the Union budget should concentrate
on activities where the Union intervention can bring additional value compared
to action of Member States alone. As the European Union is in a better position
than Member States to provide a framework for expressing Union solidarity in
border control, visa policy and the management of migration flows, and to
provide a platform for the development of common IT systems underpinning these
policies, financial support provided under this Regulation contributes in
particular to strengthening national and European capabilities in those areas.

(27)
In order to supplement or amend provisions in
this instrument regarding the definition of specific actions under the national
programmes 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. It is of
particular importance that the Commission carry out appropriate consultations
during its preparatory work, including at expert level.

(28)
The Commission, when
preparing and drawing-up delegated acts, should ensure a simultaneous, timely
and appropriate transmission of relevant documents to the European Parliament
and Council.

(29)
In order to ensure a uniform, efficient and
timely application of the provisions on operating support laid down in this
Regulation and to establish the framework for the programme on the new IT
systems, implementing powers should be conferred on the Commission. Those
powers should be exercised in accordance with Regulation (EU) No 182/2001 of
the European Parliament and of the Council of 16 February 2011 laying down the
rules and general principles concerning mechanisms for control by Member States
of the Commission's exercise of implementing powers[25].

(30)
Since the objective of this Regulation, namely to
provide for solidarity and responsibility sharing between member States and the
Union in the management of external borders and visa policy, cannot be
sufficiently achieved by the Member States and can be better achieved at Union
level, the Union may adopt measures, in accordance with the principle of
subsidiarity as set out in Article 5 of the Treaty on European Union. In
accordance with the principle of proportionality, as set out in that Article,
this Regulation does not go beyond what is necessary in order to achieve that
objective.

(31)
Decision No 574/2007/EC of the European
Parliament and of the Council of 23 May 2007 establishing the External Borders
Fund for the period 2007 to 2013[26]
should be repealed.

(32)
As regards Iceland and Norway, this Regulation
constitutes a development of the Schengen acquis which falls within the areas
referred to in Article 1, Points A and B of Council Decision 1999/437/EC of 17
May 1999 on certain arrangements for the application of the Agreement concluded
by the Council of the European Union and the Republic of Iceland and the
Kingdom of Norway concerning the association of those two States with the
implementation, application and development of the Schengen acquis[27].

(33)
As regards Switzerland, this Regulation constitutes
a development of provisions of the Schengen acquis within the meaning of the
Agreement between the European Union, the European Community and the Swiss
Confederation on the latter's association with the implementation, application
and development of the Schengen acquis which fall within the area referred to
in Article 1, Points A and B of Council Decision 1999/437/EC read in
conjunction with Article 3 of Council Decision 2008/146/EC on the conclusion, on
behalf of the European Community, of the Agreement[28].

(34)
As regards Liechtenstein, this Regulation
constitutes a development of the provisions of the Schengen acquis within the
meaning of the Protocol between the European Union, the European Community, the
Swiss Confederation and the Principality of Liechtenstein on the accession of
the Principality of Liechtenstein to the Agreement between the European Union,
the European Community and the Swiss Confederation on the Swiss Confederation's
association with the implementation, application and development of the
Schengen acquis which fall within the area referred to in Article 1, Points A
and B of Council Decision 1999/437/EC read in conjunction with Article 3 of
Council Decision 2011/350/EU on the conclusion, on behalf of the Union, of the
Protocol[29].

(35)
Under the Protocol on the position of Denmark,
annexed to the treaty on European Union and the Treaty on the Functioning of
the European Union, Denmark does not take part in the adoption by the Council
of the measures pursuant to Title V of Part Three of the Treaty on the
Functioning of the European Union, with the exception of "measures
determining the third countries whose nationals must be in possession of a visa
when crossing the external borders of the Member States, or measures relating to
a uniform format for visas". This proposal builds on the Schengen acquis,
and under Article 4 of the Protocol on the position of Denmark annexed to the
Treaty on European Union and to the Treaty on the Functioning of the European
Union, Denmark shall decide within a period of six months after the Council has
decided on a proposal or initiative to build upon the Schengen acquis under the
Provisions of Title V of Part Three of the Treaty on the Functioning of the
European Union whether it will implement this Regulation in its national law.

(36)
This Regulation constitutes a development of the
provisions of the Schengen acquis in which the United Kingdom does not take
part, in accordance with Council Decision 2000/365/EC of 29 May 2000 concerning
the request of the United Kingdom of Great Britain and Northern Ireland to take
par in some of the provisions of the Schengen acquis and the subsequent Council
Decision 2004/926/EC of 22 December 2004 on the putting into effects of parts
of the Schengen acquis by the United Kingdom of Great Britain and Northern
Ireland. The United Kingdom is therefore not taking part in its adoption and is
not bound by it or subject to its application.

(37)
            This Regulation constitutes a
development of the provisions of the Schengen acquis in which Ireland does not
take part, in accordance with Council Decision 2001/192/EC of 28 February 2002
concerning the request of Ireland to take par in some of the provisions of the
Schengen acquis. Ireland is therefore not taking part in its adoption and is
not bound by it or subject to its application.

HAVE ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1

Purpose and scope

1.
This Regulation establishes the instrument for
financial support for the management of external borders and the common visa
policy (hereinafter referred to as the "Instrument") as part of the
Internal Security Fund (hereinafter referred to as "the Fund").

Jointly with Regulation
.../2012/EU establishing as part of the Internal Security
Fund, the instrument for financial support for police co-operation, preventing
and combating crime, and crisis management, this Regulation establishes for the
period from 1 January 2014 to 31 December 2020 the Internal Security Fund.

2.
This Regulation lays down

(a)
the objectives of financial support and the
eligible actions;

(b)
the general framework for the implementation of
eligible actions;

(c)
the resources made available under this
instrument from 1 January 2014 to 31 December 2020 and their distribution;

(d)
the scope and purpose of the different specific means
through which the expenditure for the management of the external borders and the
common visa policy is financed.

3.
This Regulation provides for the application of
the rules set out in Regulation (EU) No ..2012 [Horizontal Regulation] .

Article 2

Definitions

For the purposes of this Regulation the
following definitions shall apply:

(a)
'external borders' means the Member States' land
borders, including river and lake borders, sea borders and their airports,
river ports, sea ports and lake ports to which the provisions of Union law on
the crossing of external borders apply, whether these borders are temporary or
not;

(b)
'temporary external borders' means

–
the common border between a Member State fully
implementing the Schengen acquis and a Member State bound to apply the Schengen
acquis in full, in conformity with its Act of Accession, but for which the
relevant Council Decision authorising it to fully apply that acquis has not
entered into force;

–
the common border between two Member States
bound to apply the Schengen acquis in full, in conformity with their respective
Acts of Accession, but for which the relevant Council Decision authorising them
to fully apply that acquis has not yet entered into force;

(c)
'border crossing point' means any crossing point
authorised by the competent authorities for the crossing of external borders as
notified in accordance with Article 34(2) of Regulation (EC) No 562/2006;

(d)
'Schengen evaluation and monitoring mechanism'
means the verification of the correct application of the Schengen acquis as
laid down in Regulation No ... /2012/EU [30][X];

(e)
'emergency situation' means a situation of
urgent and exceptional pressure where a large or disproportionate number of
third-country nationals cross or are expected to cross the external border of
one or more Member States.

Article 3

Objectives

1.
The general objective of the Instrument shall be
to contribute to ensuring a high level of security in the European Union.

2.
Within the general objective set out in
paragraph 1, the Instrument shall contribute - in line with the priorities
identified in relevant EU Strategies, programmes, threat and risk assessments -
to the following specific objectives:

(a)
supporting a common visa policy to facilitate
legitimate travel, ensure equal treatment of third country nationals and tackle
irregular migration

The achievement of this objective shall be
measured against indicators such as, inter alia, the number of consular
posts equipped, secured and/or enhanced to ensure the efficient processing of
visa applications and provide quality of service to visa applicants

(b)
supporting borders management, to ensure, on one
hand, a high level of protection of external borders and, on the other hand,
the smooth crossing of the external borders in conformity with the Schengen
acquis

The achievement of this objective shall be
measured against indicators such as, inter alia, the development of
equipment for border control and the apprehensions of irregular third-country
nationals at the external border in correspondence with the risk of the
relevant section of the external border.

3.
To achieve these objectives, the instrument shall
contribute to the following operational objectives:

(a)
promoting the development and implementation of
policies ensuring the absence of any controls on persons, whatever their
nationality, when crossing the internal borders, carrying out checks on persons
and monitoring efficiently the crossing of external borders;

(b)
gradually establishing an integrated management
system for external borders, including the reinforcement of interagency co-operation
between migration and law enforcement authorities of Member States at the
external borders and measures within the territory and the necessary flanking
measures related to document security and identity management;

(c)
promoting the development and implementation of
the common policy on visas and other short-stay residence permits, including
consular co-operation;

(d)
setting up and running IT systems, their
communication infrastructure and equipment supporting the management of
migration flows across the external borders of the Union;

(e)
ensuring the efficient and uniform application
of the Union's acquis on borders and visa, including the functioning of the
Schengen evaluation and monitoring mechanism;

(f)
reinforcing the co-operation between Member
States operating in third countries as regards the flows of third-country
nationals into the territory of Member States, as well as the co-operation with
third countries in this regard.

4.
The Instrument shall also contribute to the
financing of technical assistance at the initiative of the Member States and the
Commission.

Article 4

Eligible actions

1.
Within the objectives defined in Article 3, and
in the light of the agreed conclusions of the policy dialogue as provided for
in Article 13 of Regulation (EU) No .../2012 [Horizontal Regulation], the Instrument
shall support actions in or by Member States and in particular the following:

(a)
border crossing infrastructures, buildings and
systems required at border crossing points and for surveillance between border
crossing points and effective tackling of illegal crossing of the external
borders;

(b)
operating equipment, means of transport and communication
systems required for effective border control and the detection of persons,
such as fixed terminals for VIS, SIS and the European Image Archiving System
(FADO), including state-of-the-art technology;

(c)
IT systems for the management of migration flows
across borders;

(d)
infrastructures, buildings and operating
equipment required for the processing of visa applications and consular
co-operation;

(e)
studies, pilot projects and actions aiming to foster
interagency cooperation within Member States and between Member States, and
implementing the recommendations, operational standards and best practices
resulting from the operational cooperation between Member States and Union
Agencies.

2.
Within the objectives defined in Article 3, this
instrument shall support actions in relation to and in third countries and in
particular the following:

(a)
information systems, tools or equipment for
sharing information between Member States and third countries;

(b)
actions aiming to foster operational co-operation
between Member States and third countries, including joint operations;

(c)
studies, events, training, equipment and pilot
projects to provide ad hoc technical and operational expertise to third
countries;

(d)
studies, events, training, equipment and pilot
projects implementing specific recommendations, operational standards and best
practices, resulting from the operational cooperation between Member States and
Union agencies in third countries.

3.
Actions referred to in point (a) of paragraph 1
are not eligible at temporary external borders.

4.
Actions related to the temporary and exceptional
reintroduction of border control at internal borders as referred to in the
Schengen Borders Code are not eligible.

CHAPTER II

FINANCIAL AND IMPLEMENTATION FRAMEWORK

Article 5

Global resources and implementation

1.
The global resources for the implementation of
this Regulation shall be 3,520 EUR million.

2.
The annual appropriations shall be authorised by
the budgetary authority within the limits of the Financial Framework.

3.
The global resources shall be implemented
through the following means:

(a)
national programmes, in accordance with Articles
9 and 12;

(b)
operating support, within the framework of the national
programmes and under the conditions laid down in Article 10;

(c)
the functioning of the Special Transit Scheme,
in accordance with Article 11;

(d)
Union actions, in accordance with Article 13;

(e)
emergency assistance, in accordance with Article
14;

(f)
The implementation of a programme for setting up
new IT systems supporting the management of migration flows across the external
borders of the Union under the conditions laid down in Article 15;

(g)
technical assistance in accordance with Article 16.

4.
The budget allocated under the Instrument shall
be implemented under shared management in accordance with Article 55(1)(b) of Regulation
(EU) N° ..../2012 [New Financial Regulation], with the exception of Union actions
referred to in Article 13, the emergency assistance referred to in Article 14 and
the technical assistance referred to in Article 16(1).

The method(s) of implementation of the budget
for the programme on the development of new IT systems shall be set out in the
implementing act referred to in Article 15(2).

5.
The global resources shall be used indicatively
as follows:

(a)
EUR 2,000 million for the national programmes of
Member States;

(b)
EUR 1,100 million for setting up the new IT
systems supporting the management of migration flows across the external
borders of the Union referred to in Article 15(2);

(c)
EUR 150 million for the Special Transit Scheme;

(d)
EUR 270 million for Union actions, emergency assistance
and technical assistance at the initiative of the Commission.

6.
Jointly with the global resources established for
Regulation No ... /2012/EU establishing as part of the Internal Security Fund,
the instrument for financial support for police co-operation, preventing and
combating crime, and crisis management, the global resources available for this
Regulation as established in paragraph 1, constitute the financial envelope for
the Internal Security Fund and serve as the prime reference for the budgetary
authority during the annual budgetary procedure within the meaning of Point 17
of the Interinstitutional Agreement between the European Parliament, the
Council and the Commission on cooperation in budgetary matters and on sound
financial management[31].

7.
The countries associated with the
implementation, application and development of the Schengen acquis shall
participate in the instrument in accordance with this Regulation.

8.
Arrangements shall be concluded on the financial
contributions by these countries to this Instrument and the supplementary rules
necessary for such participation, including provisions ensuring the protection
of the Union's financial interests and the power of audit of the Court of
Auditors.

The financial contributions from these
countries shall be added to the global resources available from the Union budget
referred to in paragraph 1.

Article 6

Resources for eligible actions in the
Member States

1.
EUR 2,000 million shall be allocated to the
Member States indicatively as follows:

(a)
EUR 1,200 million, as indicated in Annex I;

(b)
EUR 450 million, based on the results of the
mechanism described in Article 7;

(c)
in the framework of the mid term review and for
the period as of budget year 2018, EUR 350 million, the remainder of the available
appropriations under this Article or another amount, as determined pursuant to paragraph
2, based on the results of the risk analysis and the mechanism laid down in Article
8.

2.
To address properly the objectives under this
Regulation in case of unforeseen or new circumstances and/or to ensure
effective implementation of funding available under this Regulation, the Commission
shall be empowered to adopt delegated acts in accordance with Article 17 to
adjust the indicative amount laid down in point c) of paragraph 1.

3.
Member States which accede to the Union in the
period 2012-2020 shall not benefit from allocations for national programmes
under this instrument as long as they benefit from a temporary instrument of
the Union which supports the beneficiary Member States to finance actions at
new external borders of the Union for the implementation of the Schengen acquis
on borders and visa and external border control.

Article 7

Resources for specific actions

1.
Member States may, in addition to their
allocation calculated in accordance with point (a) of Article 6(1), receive an
additional amount, provided that it is earmarked as such in the programme and
shall be used to achieve specific actions listed in Annex II.

2.
The Commission shall be empowered to adopt
delegated acts in accordance with Article 17 for the revision of the specific
actions listed in Annex II, if deemed appropriate. On the basis of the new
specific actions, Member States may receive an additional amount as laid down
in paragraph 1, subject to available resources.

3.
The additional amounts under this Article shall
be allocated to the Member States concerned in the individual financing
decision approving or revising their national programme in accordance with the
procedure laid down in Article 14 of Regulation (EU) No ..../2012 [Horizontal Regulation].

Article 8

Resources in the framework of the
mid term review

1.
In order to allocate the amount indicated in point
c) of Article 6(1), by 1 June 2017 the Commission shall establish, on the basis
of input and in consultation with the Frontex Agency, a report which, in
accordance with the Frontex risk analysis, shall set up threat levels at the
external borders for the period 2017-2020. Threat levels will be based on the
burden in border management and on the threats that affected security at the
external borders of the Member States in 2014-2016 and they will take into
account inter alia possible future trends on migratory flows and
unlawful activities at the external borders considering the likely political,
economic and social developments in the third countries concerned, in
particular in neighbouring countries.

The report shall determine the level of threat
for each section of the external border by multiplying the length of the border
section concerned with the weighing attributed to it as follows:

(a)     external land border:

(i)      factor 1 for normal threat

(ii)      factor 3 for medium threat

(iii)     factor 5 for high threat;

(b)     external maritime border:

(i)      factor 1 for normal threat

(ii)      factor 3 for medium threat

(iii)     factor 5 for high threat.

On the basis of the report, the Commission shall
determine which Member States will receive an additional amount. Those Member
States which have an increased threat level in comparison to the threat level
established for the calculation made for the budget year 2013 under Decision
574/2007/EC will receive pro rata additional resources.

2.
For the purpose of the distribution of resources
under paragraph 1

(a)     the line between the areas referred to
in Article 1 of Council Regulation (EC) No 866/2004 of 29 April 2004 on a
regime under Article 2 of Protocol No 10 of the Act of Accession, but not the
maritime border north of that line, shall be taken into account even though it
does not constitute an external land border for as long as the provisions of
Article 1 of Protocol 10 on Cyprus of the 2003 Act of Accession remain
applicable;

(b)     external maritime borders shall mean
the outer limit of the territorial sea of the Member States as defined
according to Articles 4 to 16 of the United Nations Convention on the Law of
the Sea. However, in cases where long range operations on a regular basis are
required in order to prevent irregular migration/illegal entry, this shall be
the outer limit of high threat areas. This shall be determined by taking into
account the relevant data on these operations in 2014-2016 as provided by the
Member States in question.

3.
Moreover, following invitation from the
Commission by 1 June 2017, Member States may receive an additional allocation,
provided that it is earmarked as such in the programme and shall be used to
achieve specific actions to be established in the light of the priorities of
the Union at that time.

To that end, the Commission shall be empowered
to adopt delegated acts in accordance with Article 17 for the revision of the
specific actions listed in Annex II.

4.
The addditional amounts under this Article
shall be allocated to the Member States concerned in individual financing
decision approving or revising their national programme in accordance with the
procedure laid down in Article 14 of Regulation (EU) No ..../2012 [Horizontal
Regulation].

Article 9

National programmes

1.
The national programme to be prepared under this
Instrument and those to be prepared under Regulation No .../2012/EU establishing as part of the Internal Security Fund, the instrument
for financial support for police co-operation, preventing and combating crime,
and crisis management shall be drawn up jointly by
Member States and proposed to the Commission as one single national programme
for the Fund and in accordance with Article 14 of Regulation (EU) No ..../2012 [Horizontal
Regulation].

2.
Under the national programmes, to be examined
and approved by the Commission pursuant to Article 14 of Regulation (EU) No
...../2012 [Horizontal Regulation], Member States shall pursue in particular the
following objectives:

(a)
developing the European Border Surveillance
System (EUROSUR) in accordance with Union legislation and guidelines;

(b)
supporting and expanding the existing capacity
at national level in the management of the external borders, bearing in mind inter
alia new technology, developments and/or standards in relation to the
management of migration flows;

(c)
supporting the further development of the
management of migration flows by consular and other services of the Member
State in third countries, with a view to facilitating legitimate travel to and
preventing irregular migration into the Union;

(d)
reinforcing the integrated border management by
testing and introducing new tools, interoperable systems and working methods which
aim to enhance information exchange within the Member State or to improve
interagency co-operation;

(e)
ensuring the correct and uniform application of
the Union acquis on border control and visa in response to weaknesses
identified at European level, as evinced in results established in the
framework of the Schengen evaluation mechanism;

(f)
increasing the capacity to face upcoming
challenges including present and future threats and pressures at the external
borders of the Union, taking into account in particular the Frontex risk
analysis.

Article 10

Operating support under the national
programmes of the Member States

1.
A Member State may use up to 50% of the amount
allocated under the Instrument to its national programme to finance operating
support to the public authorities responsible for accomplishing the tasks and
services which constitute a public service for the Union. These tasks and
services relate to the one or more of the objectives referred to in Article
3(2) (a), (c) and (d).

2.
Operating support shall be provided only when the
following conditions are met by the Member State concerned:

(a)
compliance with the Union acquis on borders and
visa;

(b)
compliance with Union standards and guidelines
for good governance on borders and visa, in particular the Schengen catalogue
for external border control, the Practical Handbook for border guards and the
Handbook on visa.

3.
To that end, before the approval of the national
programme, the Commission shall assess the baseline situation in Member States which
have indicated their intention to request operating support.

The findings of the Commission shall be the
subject of an exchange of views with the Member State concerned.

Following the exchange of views, the acceptance
by the Commission of budget support within the national programme of a Member
State can be made conditional upon the programming and completion of a number
of actions aiming to ensure that the conditions laid down in paragraph 2 are fully
met by the time the budget support is provided.

4.
Operating support shall be concentrated on
specific tasks and/or services and shall be focused on the objectives as laid
down in Annex III. It shall entail full reimbursement of the expenditure
incurred to accomplish the tasks and/or services defined in the national programme,
within the financial limits set by the programme and the ceiling laid down in
paragraph 1.

5.
Operating support shall be the subject of
monitoring and exchange of information between the Commission and the Member
State concerned in relation to the baseline situation in the Member State, the
objectives and targets to be accomplished and the indicators to measure
progress.

6.
The Commission shall set out, by implementing
acts, reporting procedures on the application of this provision and any other practical
arrangements, to be made between Member States and the Commission to comply with
this Article. Those implementing acts shall be adopted in accordance with the
examination procedure referred to in Article 18(2).

Article 11

Operating support for the Special
Transit Scheme

1.
The Instrument shall provide support to compensate
for foregone fees from visas issued for the purpose of transit and additional
costs incurred in implementing the Facilitated Transit Document (FTD) and the
Facilitated Rail Transit Document (FRTD) scheme in accordance with Council
Regulation (EC) No 693/2003 and Council Regulation (EC) No 694/2003.

2.
The resources allocated to Lithuania pursuant to
paragraph 1 shall not exceed EUR 150 million for the period 2014-2020 and shall
be made available as additional specific operating support for Lithuania.

3.
For the purpose of paragraph 1, additional costs
means costs which result directly from the specific requirements of
implementing the operation of the Special Transit Scheme and which are not
generated as a result of the issuing of visas for the purpose of transit or other
purposes.

The following types of additional cost shall be
eligible for financing:

(a)     investment in infrastructures;

(b)     training of staff implementing the
special transit scheme;

(c)     additional operational costs,
including salaries of staff specifically implementing the special transit
scheme.

4.
The foregone fees referred to in paragraph 1
shall be calculated on the basis of the level of visa fees and the visa fee
waivers established by the Visa Facilitation Agreement between the European
Union and the Russian Federation, within the financial framework set out in
paragraph 2.

5.
The Commission and Lithuania shall review the
application of this Article in case of changes which have an impact on the
existence and/or functioning of the Special Transit Scheme.

6.
The Commission shall set out, by implementing
acts, reporting procedures on the application of this provision and any financial
and other practical arrangements to be made between Lithuania and the
Commission to comply with this Article. Those implementing acts shall be
adopted in accordance with the examination procedure referred to in Article 18(2).

7.
To ensure the smooth functioning of the Special
Transit Scheme the Commission may make specific interim payment arrangements which
derogate from the provisions of Regulation (EU) No ..../2012 [Horizontal Regulation].

Article 12

Programming in line with the
outcomes of the Schengen evaluation and monitoring mechanism

Following a Schengen evaluation report, as
adopted in accordance with the Regulation on the
establishment of an evaluation and monitoring mechanism to verify the
application of the Schengen acquis, the Member State
concerned shall examine, together with the Commission and the Frontex Agency,
where appropriate, how to address the findings and implement the
recommendations within the framework of its national programme.

Where necessary, a Member State shall
revise its national programme to take into account the findings and
recommendations.

In dialogue with the Commission and the
Frontex Agency, where appropriate, it shall reallocate resources under its
programme, including, where necessary, those programmed for operating support, and/or
introduce or amend actions aiming to remedy the weaknesses in accordance with
the findings and recommendations of the Schengen evaluation report.

Article 13

Union Actions

1.
At the Commission’s initiative, the Instrument may
be used to finance transnational actions or actions of particular interest to
the Union (‘Union actions’) concerning the general, specific and operational objectives
referred to in Article 3.

2.
To be eligible for funding, Union actions shall
in particular pursue the following objectives:

(a)
to support the preparatory, monitoring,
administrative and technical support, development of an evaluation mechanism, required
to implement external borders and visa policies, including to implement Schengen
governance as determined by the Schengen evaluation and monitoring mechanism as
established by the Regulation (EU) No ... on the
establishment of an evaluation and monitoring mechanism to verify the
application of the Schengen acquis and the
Schengen Borders Code;

(b)
to improve the knowledge and understanding of
the situation prevailing in the Member States through analysis, evaluation and
close monitoring of policies;

(c)
to support the development of statistical tools and
methods and common indicators;

(d)
to support and monitor the implementation of Union
law and Union policy objectives in the Member States, and assess their
effectiveness and impact;

(e)
to promote networking, mutual learning,
identification and dissemination of good practices and innovative approaches at
European level;

(f)
to enhance awareness of Union policies and
objectives among stakeholders and the general public, including corporate
communication on the political priorities of the Union;

(g)
to boost the capacity of European networks to
promote, support and further develop Union policies and objectives;

(h)
to support particularly innovative projects
developing new methods and/or technologies with a potential for transferability
to other Member States, especially projects aiming at testing and validating research
projects;

(i)
to support actions in relation to and in third
countries as referred to in Article 4(2).

3.
Union actions shall be implemented in accordance
with Article 7 of Regulation (EU) No ...../2012 [Horizontal Regulation].

Article 14

Emergency assistance

1.
The Instrument shall provide financial assistance
to address urgent and specific needs in the event of an emergency situation as
defined in point (e) of Article 2.

2.
Emergency assistance shall be implemented in
accordance with the mechanism laid down in Article 8 of Regulation (EU) No
..../2012 [Horizontal Regulation].

Article 15

Establishing a programme on the development
of new IT systems

1.
The indicative amount allocated for the
programme on the development of the new IT systems managing the movement of
third-country nationals across borders is set at EUR 1,100 million. The
programme shall be implemented in accordance with the Union legislation
defining the new IT systems and their communication infrastructure with the
aim, in particular, to improving the management and control of travel flows at
the external borders by reinforcing checks while speeding up border crossings
for regular travellers.

2.
The Commission shall be responsible for the
management of the programme. It shall adopt a multiannual strategic framework
which shall include

(a)
the main actions to be carried out;

(b)
a breakdown of the budget by budget years;

(c)
the time table for the implementation;

(d)
the management methods to be used by main
actions carried out. Actions may be implemented
- directly by the Commission or through executive agencies
- indirectly by entities and persons other than Member States in accordance
with Article [57] of Regulation (EU) N° ..../2012 [New Financial Regulation]

The main actions to be carried out should cover
in particular, the development and testing of the central component and of the
applications common to the national components of the systems, the communication
infrastructure between central and national components, the coordination for
putting them into operation, and the security management of the systems.

The Commission shall adopt, by implementing acts,
the strategic framework and any revisions. Those implementing acts shall be
adopted in accordance with the examination procedure referred to in Article
18(2).

Article 16

Technical assistance

1.
At the initiative and/or on behalf of the
Commission, the Instrument may contribute up to EUR 1.7 million annually for
technical assistance to the Internal Security Fund in accordance with Article 10
of Regulation (EU) No ..../2012 [Horizontal Regulation].

2.
At the initiative of a Member State, the Instrument
may contribute up to 5% of the total amount allocated to the Member State to
technical assistance under the national programme in accordance with Article 20
of Regulation (EU) No ...../2012 [Horizontal Regulation].

CHAPTER III

FINAL PROVISIONS

Article 17

Exercise of the delegation

1.
The power to adopt delegated acts is conferred
on the Commission subject to the conditions laid down in this Article.

2.
The delegation of power referred to in this
Regulation shall be conferred on the Commission for a period of seven years
from the entry into force of this Regulation. The delegation of powers shall be
tacitly extended for periods of identical duration, unless the European
Parliament or the Council opposes such extension not later than three months
before the end of each period.

3.
The delegation of powers referred to in this
Regulation may be revoked at any time by the European Parliament or by the
Council. A decision of revocation shall put an end to the delegation of the
power specified in that decision. It shall take effect the day following the
publication of the decision in the Official Journal of the European Union
or at a later date specified therein. It shall not affect the validity of any
delegated acts already in force.

4.
As soon as it adopts a delegated act, the
Commission shall notify it simultaneously to the European Parliament and to the
Council.

5.
A delegated act adopted pursuant to this
Regulation shall enter into force only if no objection has been expressed
either by the European Parliament or the Council within a period of two months
of notification of that act to the European Parliament and the Council or if,
before the expiry of that period, the European Parliament and the Council have
both informed the Commission that they will not object. That period shall be
extended by two months at the initiative of the European Parliament or the
Council.

Article 18

Committee procedure

1.
The Commission shall be assisted by the common
Committee 'Asylum, Migration and Security' established by Article 55(1) of
Regulation EU No ..../2012 [Horizontal Regulation].

2.
Where reference is made to this paragraph,
Article 5 of Regulation (Eu) No 182/2011 shall apply.

Article 19

Applicability of Regulation (EU) No
..../2012 [Horizontal Regulation]

The provisions of Regulation (EU) No.../2012 [Horizontal
Regulation] shall apply to this Instrument.

Article 20

Repeal

Decision No 574/2007/EC of the European
Parliament and of the Council establishing the External Borders Fund shall be
repealed with effect from 1 January 2014.

Article 21

Transitional
provisions

1.
This Regulation shall not affect the
continuation or modification, including the total or partial cancellation, of the
projects and annual programmes until their closure or the financial assistance approved
by the Commission on the basis of Decision No 574/2007 EC or any other
legislation applying to that assistance on 31 December 2013.

2.
When adopting decisions on co-financing under
this Instrument, the Commission shall take account of measures adopted on the
basis of Decision No 574/2007//EC before [date of publication in the
Official Journal] which have financial repercussions during the period
covered by that co-financing.

3.
Sums committed for co-financing approved by the
Commission between 1 January 2011 and 31 December 2013 for which the documents
required for closure of the actions have not been sent to the Commission by the
deadline for submitting the final report shall be automatically decommitted by
the Commission by 31 December 2017, giving rise to the repayment of amounts
unduly paid.

4.
Amounts relating to actions which have been
suspended due to legal proceedings or administrative appeals having suspensory
effect shall be disregarded in calculating the amount to be automatically
decommitted.

Article 21

Review

On the basis of a proposal of the
Commission, the European Parliament and the Council shall review this
Regulation by 30 June 2020 at the latest.

Article 22

Entry into force and application

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 the Member States in accordance with
the Treaties.

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

ANNEX I
Amounts constituting the basis for the national programmes of Member States

Member State || Minimum amount || Percentage 2010-2012 average || Distribution on basis of percentage || Total Amount

Austria || 5.000.000 || 0,82% || 8.699.674 || 13.699.674

Belgium || 5.000.000 || 1,13% || 11.886.638 || 16.886.638

Bulgaria || 5.000.000 || 3,18% || 33.578.849 || 38.578.849

Cyprus || 5.000.000 || 1,76% || 18.521.213 || 23.521.213

Czech Republic || 5.000.000 || 0,84% || 8.907.377 || 13.907.377

Denmark || 5.000.000 || 0,48% || 5.053.171 || 10.053.171

Estonia || 5.000.000 || 1,51% || 15.933.661 || 20.933.661

Finland || 5.000.000 || 2,87% || 30.320.668 || 35.320.668

France || 5.000.000 || 7,20% || 75.956.454 || 80.956.454

Germany || 5.000.000 || 4,21% || 44.390.681 || 49.390.681

Greece || 5.000.000 || 14,56% || 153.636.854 || 158.636.854

Hungary || 5.000.000 || 3,22% || 34.018.515 || 39.018.515

Iceland || 5.000.000 || 0,03% || 310.455 || 5.310.455

Italy || 5.000.000 || 13,62% || 143.660.373 || 148.660.373

Latvia || 5.000.000 || 0,95% || 9.989.974 || 14.989.974

Lithuania* || 5.000.000 || 1,77% || 18.709.058 || 23.709.058

Luxembourg || 5.000.000 || 0,04% || 379.909 || 5.379.909

Malta || 5.000.000 || 3,43% || 36.173.227 || 41.173.227

Netherlands || 5.000.000 || 2,30% || 24.315.326 || 29.315.326

Norway || 5.000.000 || 0,84% || 8.846.929 || 13.846.929

Poland || 5.000.000 || 3,97% || 41.883.809 || 46.883.809

Portugal || 5.000.000 || 1,25% || 13.197.565 || 18.197.565

Romania || 5.000.000 || 5,05% || 53.313.864 || 58.313.864

Slovakia || 5.000.000 || 0,46% || 4.835.168 || 9.835.168

Slovenia || 5.000.000 || 2,31% || 24.371.875 || 29.371.875

Spain || 5.000.000 || 17,13% || 180.746.396 || 185.746.396

Sweden || 5.000.000 || 0,59% || 6.189.272 || 11.189.272

Switzerland || 5.000.000 || 1,25% || 13.216.801 || 18.216.801

Croatia || 5.000.000 || 3,22% || 33.956.244 || 38.956.244

Total || 145.000.000 || 100% || 1.055.000.000 || 1.200.000.000

Annex II
List of specific actions

1.
Setting up consular cooperation mechanisms
between at least two Member States resulting in economies of scale as regards
the lodging of applications and the issuing of visas at consulates in accordance
with the principles on co-operation laid down in the Visa Code, including
common visa application centres

2.
Purchasing means of transport and operating
equipment which are deemed necessary for the running of joint operations by the
Frontex Agency, pursuant to guidelines issued by this Agency

ANNEX III
Objectives for operating support within the national programmes

Objective 1: promoting the development
and implementation of policies ensuring the absence of any controls on persons,
whatever their nationality, when crossing the internal borders, carrying out
checks on persons and monitoring efficiently the crossing of externl borders

- operations

- staff cost

- service costs, such as maintenance and
repair

- upgrading / replacement of equipment

- real estate (depreciation, refurbishment)

Objective 2: promoting the development
and implementation of the common policy on visas and other short-stay residence
permits, including consular co-operation

- operations

- staff cost

- service costs, maintenance and repair

- upgrading / replacement of equipment

- real estate (depreciation, refurbishment)

Objective 3: setting up and running IT
systems, their communication infrastructure and equipment supporting the
management of migration flows across the external borders of the Union

- operational management of SIS, VIS and
new systems set up in the period

- staff cost

- service costs, such as maintenance and
repair

- communication infrastructure and security
related matters

- upgrading / replacement of equipment

- rental of secure premises and/or
refurbishment

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
method(s) envisaged

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
participation in financing

3.3.    Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

1.
FRAMEWORK OF THE PROPOSAL/INITIATIVE
1.1.
Title of the proposal/initiative

Communication
"Building an open and secure Europe: the home affairs budget for 2014-2020";

Proposal
for a Regulation laying down general provisions on the Asylum and Migration
Fund and on the instrument for financial support for police cooperation,
preventing and combating crime, and crisis management;

Proposal
for a Regulation establishing the instrument for financial support for police
cooperation, preventing and combating crime, and crisis management;

Proposal
for a Regulation establishing, as part of the Internal Security Fund, the
instrument for financial support for external borders and visa.

1.2.
Policy area(s) concerned in the ABM/ABB
structure[32]

Currently
Heading 3, Title 18 – Home Affairs

Future
Multiannual Financial Perspectives: Heading 3 (Security and citizenship) –
"Internal security"

Nature of the proposal/initiative

þ The proposal/initiative
relates to a new action (home affairs funding for the period 2014-2020)

 ̈ The
proposal/initiative relates to a new action following a pilot
project/preparatory action[33]

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

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

1.3.
Objectives
1.3.1.
The Commission's multiannual strategic
objective(s) targeted by the proposal/initiative

The final
aim of home affairs policies is to create an area without internal borders
where EU citizens and third-country nationals may enter, circulate, live and
work, bringing new ideas, capital, knowledge and innovation or filling gaps in
the national labour markets, confident that their rights are fully respected
and their security assured. Cooperation with non-EU countries and international
organisations is crucial to achieving this goal.

The growing
importance of home affairs policies has been confirmed by the Stockholm
Programme and its Action Plan, the implementation of which is a strategic
priority for the Union and covers areas such as migration (legal migration and
integration; asylum; irregular migration and return), security (prevention of
and fight against terrorism and organised crime; police cooperation) and management
of the external borders (including visa policy), as well as the external
dimension of these policies. The Lisbon Treaty also enables the Union to
demonstrate greater ambition in responding to the day-to-day concerns of
citizens in the area of freedom, security and justice. Home affairs policy
priorities, in particular the integration of third-country nationals, should
also be seen in the context of the seven flagship initiatives presented in the
Europe 2020 Strategy which aim to help the EU overcome the current financial
and economic crisis and achieve smart, sustainable and inclusive growth.

The
Internal Security Fund will provide the financial assistance needed to turn the
Union's home affairs objectives into tangible results.

1.3.2.
Specific objective(s) and ABM/ABB activity(ies)
concerned

INTERNAL
SECURITY FUND

Instrument
for financial support for police cooperation, preventing and combating crime,
and crisis management

In line
with the priorities identified in relevant Union strategies, programmes, threat
and risk assessments, the Instrument will contribute to the following specific
objectives

(a)        preventing
and combating cross-border, serious and organised crime including terrorism,
and reinforcing coordination and cooperation between law enforcement authorities
of Member States and with relevant third-countries;

(b)        enhancing
the capacity of Member States and the Union for managing effectively
security-related risks and crisis, and preparing for and protecting people and
critical infrastructure against terrorist attacks and other security related
incidents.

Current
ABB activities concerned: 18.05

Instrument
for financial support for external borders and visa

In line
with the priorities identified in relevant EU strategies, programmes, threat
and risk assessments, the Instrument will contribute to the following specific
objectives

(a)        supporting
a common visa policy to facilitate legitimate travel, ensure equal treatment of
third-country nationals and tackle irregular migration;

(b)        supporting
borders management to ensure, on one hand, a high level of protection of
external borders and, on the other hand, the smooth crossing of the external
borders in conformity with the Schengen acquis.

Current
ABB activity concerned: 18.02 (as far as External
Borders Fund is concerned).

1.3.3.
Expected result(s) and impact

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

The effects
of the proposal on beneficiaries/target groups are described in more detail in
Section 4.1.2 of the Impact Assessment.

In general,
simplification introduced at all levels of the funding process and in each
management mode will have a clear beneficial effect on the processes under
which financial support will be managed.

Police
cooperation, preventing and combating crime, and crisis management

The main
beneficiaries of the financial support will be the Member States and their law
enforcement authorities as well as any other authority specialised in the
protection of critical infrastructure and the management of crisis, but also
relevant International and Non-Governmental Organisations, where appropriate
(e.g. in the field of crime prevention, anti-radicalisation and
anti-trafficking policies).

The target
group benefitting from the changes will be the whole population.       
The main achievements will be 1) an enhanced administrative and operational
capability of Member States to detect and successfully prosecute cross-border,
serious and organised crime, including terrorism in order to reduce the
security-related threats emanating from such crime, and 2) stronger European
resilience to crisis and disaster owing to a more coherent EU policy on risk
management linking threat and risk assessments to policy making on the one hand
and a more effective and co-ordinated EU response to crisis linking up existing
capabilities and expertise on the other hand. An important achievement will
also be improved capabilities of Member States to prevent, prepare and protect
people and critical infrastructure against terrorist attacks and other serious
security-related threats.

External
borders and visa    
The main beneficiaries of the financial support for borders and visa will be
the services implementing the EU acquis, the Schengen Borders Code and the Visa
Code in the Member States: border guards, police and consular services. The
target group benefitting from the changes will be travellers - all persons
crossing external borders into the EU. The outcomes will include the enhanced
capabilities of these services (1) to carry out border surveillance and liaise
with other law enforcement services, within the framework of the European
surveillance system (EUROSUR); (2) to manage migration flows at consular posts
(visa applications) and (3) to improve the handling of passenger flows at
border crossing points, ensuring on the one hand, a high and uniform level of
protection, in co-operation with other law enforcement services, and, on the
other, the smooth crossing in conformity with the acquis and the principles of
respectful treatment and dignity. An important specific outcome will be the
setting up of two new EU IT systems on the movement of third-country nationals
across borders (an EU entry exit system and an EU registered travellers
programme).

1.3.4.
Indicators of results and impact

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

Due to the
necessity to conduct a policy dialogue before defining the national programmes,
it is not possible to establish at this stage the definitive set of indicators
that will be used to measure achievement of the above-mentioned specific
objectives. However

- with
regard to police cooperation and the prevention and combating of crime,
indicators would include the number of cross-border-joint operations and the
number of best practice documents and events organised. Indicators for crisis
management and the protection of critical infrastructure would include the
number of tools put in place and/or further upgraded to facilitate the
protection of critical infrastructure by Member States in all sectors of the
economy and the number of threat and risk assessments produced at the level of
the Union;

- in the
area of borders and visa indicators would include the number of consular
posts equipped, secured and/or enhanced to ensure the efficient processing of
visa applications and provide quality of service to visa applicants, and the
development of equipment for border control and the apprehensions of irregular
third-country nationals at the external border in correspondence with the risk
of the relevant section of the external border. . Impact indicators will
measure the increase in border security, visa issuing capacity and the capacity
to handle safely and smoothly the traffic of travellers across borders.

1.4.
Grounds for the proposal/initiative
1.4.1.
Requirement(s) to be met in the short or long
term

The EU will
continue to face important challenges in the home affairs area in the period
2014-2020.

Ensuring a
safe and secure environment is necessary and beneficial to the economic,
cultural and social growth of the EU. The EU has a decisive role to play,
whether it is by addressing the threats of serious and organized crime,
cybercrime and terrorism, and by ensuring the management of EU's external
borders or by responding swiftly to emerging crises caused by man-made or
natural disasters. In the era of globalisation, where threats are growing and
increasingly have a transnational dimension, no Member State can respond
effectively on its own. A coherent and comprehensive European answer is needed
to ensure that law enforcement authorities can work effectively across borders
and jurisdictions.

Cooperation
with non-EU countries and international organisations is crucial to achieving
these goals. Recent events in Northern Africa have demonstrated how important
it is for the EU to have a comprehensive and coordinated approach to migration,
borders and security. The increasingly important external dimension of the EU's
home affairs policies must therefore be reinforced, in full coherence with the
Union's foreign policy.

1.4.2.
Added value of EU involvement

The
management of migration flows and security threats present challenges which
cannot be dealt with by the Member States acting alone. These are areas where
there is obvious added value in mobilising the EU budget.

Some Member
States bear a heavy burden due to their specific geographic situation and the
length of the external borders of the Union that they have to manage. The
abolition of internal border controls must be accompanied by common measures
for the effective control and surveillance of the Union's external borders. The
principle of solidarity and the fair sharing of responsibilities between Member
States is therefore at the heart of the common policies on asylum, immigration
and external borders. The EU budget provides the means to address the financial
implications of this principle. In the area of security, serious and organised
crime, terrorism and other security-related threats are increasingly
cross-border in nature. Transnational co-operation and coordination between law
enforcement authorities is essential to successfully prevent and fight these
crimes, for example through the exchange of information, joint investigations,
interoperable technologies and common threat and risk assessments.

Dealing
with migration flows, the management of the EU's external borders and the
security of the EU requires substantial resources and capabilities from the
Member States. Improved operational co-operation and coordination involving the
pooling of resources in areas like training and equipment creates economies of
scale and synergies thereby ensuring a more efficient use of public funds and
reinforcing solidarity, mutual trust and responsibility sharing for common EU
policies among Member States. This is particularly relevant in the area of
security, where financial support for all forms of cross-border joint operation
is essential to enhance cooperation between police, customs, border guards and
judicial authorities.

In relation
to the external dimension of home affairs, it is clear that the adoption of
measures and the pooling of resources at EU level will increase significantly
the EU leverage necessary to convince third countries to engage with the EU on
those migration and security related issues which are primarily in the interest
of the EU and the Member States.

The EU's
right to act in the home affairs area derives from Title V "Area of
Freedom, Security and Justice" of the Treaty on the Functioning of the
European Union (TFEU), in particular Articles 77(2), 78(2), 79(2) and (4), 82(1),
84 and 87(2) TFEU. Cooperation with third countries and international
organisations is covered by Article 212(3) TFEU. The proposals respect the
principle of subsidiarity because the majority of funding will be implemented
in accordance with the principle of shared management and respecting the
institutional competencies of the Member States.

1.4.3.
Lessons learned from similar experiences in the
past

Although
the current home affairs financial instruments are generally considered to
achieve their objectives and function effectively, the lessons learned from the
mid-term review and the stakeholder consultation are that there is a need to:

– Simplify and streamline the future home affairs instruments by reducing the number of financial programmes to two through the
creation of an Asylum and Migration Fund and an Internal Security Fund. This
will allow the EU to make a more strategic use of its instruments so that they
are more responsive to the EU's political priorities and needs;

– Strengthen the role of the EU as a global player, by including an external dimension component in the future Funds
to reinforce the EU's leverage in respect of the external policy dimension of
home affairs policies;

– Give preference to shared management rather
than centralised management where possible to remove unnecessary bureaucratic
burdens;

– Establish a more results-oriented approach to shared management by moving to multiannual programming with a senior-level policy
dialogue will ensure that the Member States' national programmes are fully
aligned with EU policy objectives and priorities and focus on achieving
results;

– Improve centralised management to provide a range of tools for
policy-driven activities, including support for
transnational actions, particularly innovative actions and actions in and
related to third countries (external dimension), as well as emergency actions,
studies and events;

– Establish a common regulatory framework
with a shared set of rules on programming, reporting, financial management and
controls which is as similar as possible to that of the other EU Funds managed
in the shared management mode in order to generate a better understanding of
the rules by all stakeholders and to ensure a high degree of coherence and
consistency;

– Provide for a quick and effective response in case of emergencies, designing the Funds so that the EU can react appropriately in fast
evolving situations;

– Enhance the role of the home affairs agencies to foster practical cooperation between Member States and by
entrusting them with the implementation of specific actions, whilst ensuring
appropriate political control over the agencies' activities.

More
details can be found in the impact assessment and the explanatory memoranda of
each Regulation.

1.4.4.
Coherence and possible synergy with other
relevant instruments

A number of
other EU instruments will provide support to activities which are complementary
to the activities that will be financed under the Internal Security Fund:

The
dividing line between the Internal Security Fund and the Civil Protection
Financial Instrument will remain as described in Article 3 of the current
CIPS programme: natural disasters as well as unintentional man-made disasters
are for civil protection (accidents), whereas intentional, man-made disasters
are security-relevant and will therefore for covered by the Internal Security
Fund.

Terrorist
attacks or other security-related incidents will remain outside the scope of
the EU Solidarity Fund. The precise scope and extent to which Article
222 TFEU (solidarity clause) might support Member States that are the object of
a terrorist attack or the victim of natural and man-made disaster, is also not
clear as this requires the formal adoption of implementing arrangements which
have not even been proposed yet. Emergency funding possibilities in case of a
major terrorist attack or other security-relevant incidents will therefore be
supported by the Internal Security Fund.

The gap
between security research under the Horizon 2020 Programme and the practical
application of the results of such research will be closed because the Internal
Security Fund will foresee specific objectives and eligible actions to allow
for the funding of testing and validating of scientific research results
('prototypes') with a view to their serial application in practice
('pre-commercial procurement').

The future Justice
Programme will be closely linked and complementary to the Internal Security
Fund, especially its criminal justice component but is more focussed on judicial
cooperation, procedural harmonisation and mutual recognition which in practice
prevent substantial overlaps.

The
external dimension components of the Internal Security Fund will support
actions in and in relation to third countries which cater primarily for EU
interests and objectives, have a direct impact in the EU and its Member States
and ensure continuity with activities implemented in the territory of the EU.
This funding will be designed and implemented in coherence with EU external
action and foreign policy. It is not intended to support actions which are
development oriented and will complement, when appropriate, the financial
assistance provided through external aid instruments. In this context, the
successor to the Thematic Programme Migration & Asylum and the
Instrument for Stability will be of particular interest for the home
affairs area. While external aid instruments either support beneficiary
countries’ development needs or support general EU political interests with
strategic partners, home affairs funds will support specific actions in third
countries in the interest of EU migration policy and EU internal security
objectives. They will therefore fill a specific gap and will contribute to
completing the toolbox at the disposal of the EU.

1.5.
Duration and financial impact

þ Proposal/initiative of limited
duration

–
þ    Proposal/initiative in effect from 01/01/2014 to 31/12/2020

–
þ    Financial impact from 2014 to 2023

 ̈ Proposal/initiative of unlimited
duration

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

–
followed by full-scale operation.

1.6.
Management mode(s) envisaged[34]

þCentralised direct management by the Commission

þ Centralised indirect management with
the delegation of implementation tasks to:

–
þ    executive agencies

–
þ    bodies set up by the Communities[35]

–
þ    national public-sector bodies/bodies with public-service mission

–
 ̈    persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation

þ Shared management with the Member
States

þDecentralised management with third countries

þ Joint management with international
organisations (to be specified)

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

Comments:

The
proposals will be mainly implemented through shared management, with
multi-annual national programmes.

The
objectives to be achieved under the national programmes will be complemented by
"Union actions" and a rapid response mechanism to deal with emergency
situations. These will mainly take the form of grants and procurement under
centralised direct management and will include actions in and in relation to
third countries.

All
possible means will be used to avoid fragmentation by concentrating resources
on achieving a limited number of EU objectives and using the expertise of key
stakeholders, where appropriate, on the basis of partnership agreements and
framework agreements.

Technical
assistance at the initiative of the Commission will be implemented by
centralised direct management.

The
countries associated with the application, implementation and the development
of the Schengen acquis will also participate in the two instruments of the Internal
Security Fund which constitute a development of the Schengen acquis (the
instruments on borders and visa and police co-operation) as if they are Member
States, in light of the Schengen Association Agreements. They will participate
in the instruments in accordance with the provisions of the Regulation,
implementing their own multi-annual national programmes and have the
possibility to apply for funding under the Union actions etc. As under the
External Borders Fund, specific arrangements will be concluded to specify the
supplementary rules necessary for their participation (rules deriving from the
Financial Regulation, its Implementing Rules and the Treaties, including the
power of audit of the Court of Auditors). Since these States will contribute to
the EU budget for the two instruments in proportion to their GDP, the
arrangements will also determine the contributions to be received from these
States as part of the responsibility-sharing on the Schengen governance, and
this regardless of the size of their allocations under the instruments. To
date, the associated States are Norway, Iceland, Switzerland and Liechtenstein.

2.
MANAGEMENT MEASURES
2.1.
Monitoring and reporting rules

Specify frequency
and conditions.

For
shared management, a coherent and efficient
reporting, monitoring and evaluation framework is proposed. For each national
programme, Member States will be requested to set up a Monitoring Committee to
which the Commission may participate.

On an
annual basis Member States will report on the implementation of the multiannual
programme. These reports are a precondition for annual payments. To feed into
the mid term review process, they will be requested in 2017 to provide
additional information on the progress made in achieving the objectives. A
similar exercise will be undertaken in 2019, to allow, where appropriate,
adjustments during the last financial year (2020).

Supporting
the development of an evaluation-based culture in the area of home affairs, the
Funds will have a common evaluation and monitoring framework with broad policy
related indicators which underline the result-oriented approach of the Funds
and the essential role they could play in the policy mix to achieve the
objective of creating an area of freedom, security and justice. These indicators
relate to the impact the Funds could make: the development of a common culture
of border security, police cooperation and crisis management; effective
management of migration flows into the EU; fair and equal treatment of
third-country nationals; solidarity and co-operation between Member States in
addressing migration and internal security issues and a common EU approach on
both migration and security towards third countries.

To ensure
adequate application of the principles on evaluation, and bearing in mind the
practical experience with evaluation in Member States under the current EU
funding on home affairs, the Commission and the Member States will work
together to develop the common evaluation and monitoring framework, inter alia
by defining templates and common output and result indicators.

All
measures will be established at the beginning of the programming period, thus
enabling Member States to set up their reporting and evaluation systems on the
basis of the agreed principles and requirements.

To reduce
administrative burden and ensure synergies between reporting and evaluation,
the information required for evaluation reports will build on and complete the
information provided by Member States in the annual implementation reports of
the national programmes.

In 2018,
the Commission will also submit a report on the mid term review carried out of
the national programmes.

More
globally, the Commission will submit an
intermediate report on the implementation of the Funds by 30.06.2018 and an
ex-post evaluation report by 30.06.2024, covering the whole implementation
(i.e. not only national programmes under shared management).

2.2.
Management and control system
2.2.1.
Risk(s) identified

DG HOME has
not been facing important risks of errors in its spending programmes. This is
confirmed by the recurrent absence of significant findings in the annual
reports of the Court of Auditors as well as by the absence of residual error
rate above 2% in the past years in DG HOME (and former DG JLS) annual activity
reports.

In shared
management, the general risks in relation to the
implementation of the current programmes fall mainly into three categories:

– Risk of inefficient or insufficiently targeted use of funds;

– Errors derived from the complexity of rules and weaknesses in management
and control systems;

– Inefficient use of administrative resources (limited proportionality
of requirements);

Specific
elements concerning the system of the 4 Funds under the General Programme
"Solidarity and Management of Migration Flows" are also worth
mentioning.

– The system of annual programmes ensures that final payments are made
regularly based on certified and audited expenditure. However, the eligibility
period of the annual programmes is disconnected from the EU financial year and
the chain of assurance is therefore not totally satisfactory, despite a very
heavy system.

– Detailed eligibility rules are set by the Commission. This ensures
in principle the homogeneity of the expenditure financed. However it also
creates unnecessary workload for national authorities and the Commission and
increases the risk of errors from beneficiaries and/or Member States due to the
misinterpretations of EU rules.

– The current management and control systems are very close to those
under the Structural Funds. However, they present slight differences, notably
in the chain of responsibilities between certifying authorities and Audit
Authorities. This creates confusion in the Member States, in particular when
authorities are acting in the 2 types of Funds. It also increases the risk of
errors and requires more intense monitoring.

These
elements will be changed significantly in this proposal:

– The management and control systems will follow the general
requirements set in the CSF Funds and will fully comply with the new requirements
of the new Financial Regulation: the 3 authorities will be replaced by 2
authorities (Responsible Authority and Audit Authority) whose roles are
clarified in view of providing better assurance.

– Multi-annual programming coupled with annual clearance based on the
payments made by the Responsible Authority will align the eligibility periods
with the annual accounts of the Commission, without increasing the
administrative burden compared to the current system.

– On the spot checks will be carried out as part of the 1st
level controls, i.e. by the Responsible Authority and will support its annual
management declaration of assurance.

– Clarification and simplification of the eligibility rules as well as
their harmonisation with other EU financial support instruments will reduce
mistakes made by beneficiaries who use assistance from different sources. These
eligibility rules will be set at national level, except for some basic
principles, similar to those used for the CSF Funds.

– The use of simplified costs options is encouraged, especially for
small grants.

In centralised
management, the main risks are the following:

– Risk of weak correspondence between the projects received and the
political priorities of DG HOME;

– Risk of poor quality of selected projects and poor technical
implementation of the project, reducing the programmes' impact; due to
inadequate selection procedures, lack of expertise or insufficient monitoring;

– Risk of inefficient or non-economic use of funds awarded, both for
grants (complexity of reimbursing actual eligible costs coupled with limited
possibilities to check eligible costs at the desk) and for procurement
(sometimes limited number of economic providers with the required specialist
knowledge entailing insufficient possibilities to compare price offers);

– Risk relating to the capacity of (especially) smaller organisations
to effectively control expenditure as well as to ensure the transparency of operations carried out.

– Reputational risk for the Commission, if fraud or criminal
activities are discovered; only partial assurance can be drawn from the third
parties' internal control systems due to the rather large number of
heterogeneous contractors and beneficiaries, each operating their own control
system, often rather small in size.

Most of
these risks are expected to be reduced thanks to a better targeting of
proposals and the use of simplified elements included in the new revision of
the Financial Regulation.

2.2.2.
Control method(s) envisaged

Shared
management:

At
Member State level, the proposed architecture of
the management and control systems represents an evolution of the set-up in
place in 2007-2013 and preserves most of the functions carried out in the
current period including administrative and on-the spot verifications, audits
of management and control systems and project audits. The sequence of these functions
is nevertheless changed to render on-the spot checks a clear responsibility of
the Responsible Authority as part and parcel of the preparation for the annual
clearance of account exercise.

In order to
reinforce accountability, Responsible Authorities would be accredited by a
national accrediting body in charge of their ongoing supervision. The reduction
of the number of authorities – no more Certifying Authority and reduction of the
number of Funds – is expected to reduce the administrative burden and enhance
the possibility for building stronger administrative capacity, but also permit
a clearer division of responsibilities.

To date no
reliable estimation is available regarding the cost of controls of the shared
management Funds in the Home Affairs area. The only estimation available is
related to the ERDF and the Cohesion Fund where the costs of tasks related to
controls (at national level excluding the costs of the Commission) are
estimated around 2% of the total funding administered in the period 2007-2013.
These costs are related to the following areas of control: 1% is derived from
national coordination and programme preparation, 82% relate to programme
management, 4% to certification and 13% to audit.

The
following proposals will increase the costs of control:

– the creation and functioning of an accrediting body and in general
the change of system;

– the submission of a management declaration accompanying the annual
accounts;

– the on-the-spot checks to be made by the Responsible Authority;

– the need for additional audit activity by the Audit Authorities to
audit the management declaration.

There are
however also proposals which will reduce the costs of control:

– Certifying Authority will cease to exist.
Although their functions will be partially transferred to the Responsible
Authority, this will allow the Member State to save a substantial part of the
costs relating to certification due to better administrative efficiency,
reduced need for coordination and reduction of the scope of audits;

– The controls to be performed by the Audit
Authority will be more oriented towards re-performing (a
sample of) the 1st level administrative and on-the spot controls
carried out by the Responsible Authority. This will speed up the adversarial procedure
and ensure that all necessary controls are carried out before the submission of
the annual accounts;

– The use of simplified costs will reduce administrative costs and
burdens at all levels, for both administrations and beneficiaries;

– Annual closure, and the limitation of the period for conformity
clearance to 36 months will reduce the period of retention of documents for
control purposes for public administrations and beneficiaries;

– The setting-up of electronic communication flows between the
Commission and the Member States will be mandatory.

To these
must be added the elements of simplification listed under §2.2.1 above that
will also contribute to the reduction of administrative burden for beneficiaries
and thus represent a simultaneous reduction of risks of error and of
administrative burden.

Therefore,
overall it is expected that these proposals will lead to a redistribution of
control costs rather than an increase or a reduction. It is however anticipated
that this redistribution of costs (across functions and due to the
proportionate control arrangements, also across Member States and programmes)
will enable a more effective mitigation of risks and a better and quicker chain
of assurance.

At
Commission level, the cost of management and controls
for shared management is not expected to decrease in the first half of the
programming period. This is firstly the case because the amount and policy
areas concerned by shared management will expand compared to the current
period. Therefore maintaining the same resources will already require gains in
efficiency. In addition, the first years will be characterised by the
conjunction of many important tasks to carry out: closure of programmes
2007-2013 (last closure reports due by 31 March 2016), policy
dialogues and approval of the multi-annual national programmes 2014-2020, the
setting-up of the new clearance of accounts system. In the second half of the
period the potential resources available will be used to improve the evaluation
and monitoring.

Centralised
management

As regards
centralised management, the Commission will continue to apply its current control
system that is composed of the following building blocks: supervision of
operations by the operational directorates, the ex-ante control by the Budget
and Control Unit, the Internal Procurement Committee (JPS/HPC), the ex-post
controls for grants or the audits from the Internal Audit Capacity and/or the
Internal Audit Service. The ex-post control sector applies a "detection
strategy" aimed at detecting a maximum of anomalies in view of recovering
undue payments. Based on this strategy, the audits are carried out on a sample
of projects selected almost entirely on the basis of a risk analysis.

Thanks to
this combination of ex-ante and ex-post controls as well as desk checks and
on-site audits, in the past years the quantifiable average residual error rate
was lower than 2%. Therefore, the internal control system as well as its cost
is deemed adequate in DG HOME to achieve the objective of a low error rate.

However,
within this framework, DG HOME will continue to explore possibilities to
enhance the management and to increase simplification. In particular, all
simplified options made available in the new the Financial Regulation will be
used as much as possible as it is expected that they will contribute to the
reduction of administrative burden for beneficiaries and thus represent a
simultaneous reduction of risks of error and of administrative burden for the Commission.

New
strands

The
proposals foresee new strands for EU funding in the home affairs area, e.g. a
better use of the expertise existing in the EU agencies, the development of the
external dimension and the strengthening of the emergency mechanisms.    
These will require new management and control methods for DG Home.           
The amounts that will be devoted to these new strands are not fixed yet, but
they are unlikely to be significant compared to the overall home affairs
budget. However, it will be very important to set up the internal means and
working arrangements to implement these new tasks as early as possible within
the period, in full respect of the principles of sound financial management.

The
analysis above shows clearly that, despite all simplifications introduced, the
level of human resources required to implement the increased budget of DG HOME
will have to be reinforced.         
The human resources required will be met by staff 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 and in the light of budgetary
constraints

2.3.
Measures to prevent fraud and irregularities

Specify existing or
envisaged prevention and protection measures.

In addition
to the application of all regulatory control mechanisms, DG HOME will devise an
anti-fraud strategy in line with the Commission's new anti-fraud strategy (CAFS)
adopted on 24 June 2011 in order to ensure inter alia that its internal
anti-fraud related controls are fully aligned with the CAFS and that its fraud
risk management approach is geared to identify fraud risk areas and adequate
responses. Where necessary, networking groups and adequate IT tools dedicated
to analysing fraud cases related to the Funds will be set up.

As regards
shared management, the CAFS identifies clearly the need for the Commission
proposals for 2014-2020 regulations to request Member States to put in place
fraud prevention measures which are effective and proportionate to the
identified fraud risks. The current proposal includes in article 5 a clear
requirement for the Member States to prevent, detect and correct irregularities
and to report to the Commission. Further details as regards these obligations
will be part of the detailed rules on the functions of the Responsible
Authority as foreseen in Article 24(5)(c).

In
addition, the re-use of funds coming from financial correction based on
commission or Court of Auditors findings has been clearly indicated in Article
41.

3.
ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
3.1.
Heading(s) of the multiannual financial
framework and expenditure budget line(s) affected

· Existing expenditure budget lines

In order of multiannual financial framework
headings and budget lines.

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

Number || Diff. ([36]) || from EFTA[37] countries || from candidate countries[38] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

3 ||   || 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 3 || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

3 || 18 01 04 bb - Internal Security Fund – Police & Crime - Technical assistance || Non Diff || NO || NO || YES || NO

3 || 18 02 bb - Internal Security Fund - Police & Crime || Diff || NO || NO || YES || NO

3 || 18 01 04 cc - Internal Security Fund – Borders & Visas - Technical assistance || Non Diff || NO || NO || YES || NO

3 || 18 02 cc - Internal Security Fund - Borders & Visas || Diff || NO || NO || YES || NO

|| || || || || ||

|| || || || || ||

|| || || || || ||

|| || || || || ||

Contributions from third Countries concern
both components of the Internal Security Fund.

The criteria and the method to calculate
these contributions are to be negotiated between the EU and the Associated
States on the basis of a separate procedure.

Assuming percentages similar to those
currently used under the EBF, the Associated States would be called upon to
contribute with about EUR 210 million to the Borders and Visa
component and with about EUR 50 million to the Police cooperation
component.

3.2.
Estimated impact on expenditure
3.2.1.
Summary of estimated impact on expenditure

EUR million (to 3 decimal places)

Heading of multiannual financial framework: || Number 3 || Security and Citizenship

DG HOME || || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || After 2020 || TOTAL

Ÿ Operational appropriations (current prices) || || || || || || || || ||

18 02 bb Internal Security Fund – Police and Crime || Commitments || (1a) || 135.076 || 143.047 || 151.283 || 159.791 || 168.578 || 177.653 || 187.022 || || 1,122.450

Payments || (2a) || 15.714 || 43.881 || 71.419 || 111.709 || 147.854 || 156.248 || 164.918 || 410.707 || 1,122.450

18 02 cc  Internal Security Fund - Borders & Visas || Commitments || (1a) || 422.310 || 447.186 || 472.886 || 499.435 || 526.856 || 555.173 || 584.412 || - || 3,508.258

Payments || (2a) || 59.999 || 120.794 || 223.204 || 350.813 || 461.098 || 487.256 || 514.275 || 1,290.818 || 3,508.258

Appropriations of an administrative nature financed from the envelope for specific programmes[39] || || || || || || || || ||

18 01 04 bb            Internal Security Fund– Police and Crime || || || 0.800 || 0.800 || 0.800 || 0.800 || 0.800 || 0.800 || 0.800 || || 5.600

18 01 04 cc             Internal Security Fund - Borders & Visas || || || 1.700 || 1.700 || 1.700 || 1.700 || 1.700 || 1.700 || 1.700 || || 11.900

TOTAL appropriations for DG HOME || Commitments || =1+1a +3 || 559,886 || 592,733 || 626,669 || 661,726 || 697,934 || 735,326 || 773,934 || || 4.648,208

Payments || =2+2a +3 || 78,213 || 167,174 || 297,123 || 465,023 || 611,452 || 646,004 || 681,693 || 1.701,525 || 4.648,208

Heading of multiannual financial framework: || 5 || " Administrative expenditure "

EUR million (to 3 decimal places)

As there are
common elements in the implementation of the Asylum and Migration Fund and the
Internal Security Fund such as a policy dialogue with each Member States and
given that the internal organisation of DG HOME in order to ensure the
management of the new Funds (as well as the closure of the programmes currently
managed) may evolve, it is not possible to split the Administrative expenditure
between the Asylum and Migration Fund and the Internal Security Fund.

Therefore the
figures related to Heading 5 below correspond to the total administrative
expenditure deemed necessary to ensure management of both Funds by DG and there
is no total of appropriations.

EUR million (to 3 decimal places)

|| || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || After 2020 || TOTAL

DG: HOME ||

Ÿ Human resources || 20.841 || 20.841 || 20.841 || 20.841 || 20.841 || 20.841 || 20.841 || || 145.887

Ÿ Other administrative expenditure || 0,156 || 0,159 || 0,162 || 0,165 || 0,168 || 0,172 || 0,175 || || 1,157

TOTAL DG HOME || Appropriations || 20.997 || 21.000 || 21.003 || 21.006 || 21.009 || 21.013 || 21.016 || || 147.044

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 20.997 || 21.000 || 21.003 || 21.006 || 21.009 || 21.013 || 21.016 || || 147.044

EUR million (to 3 decimal places)

|| || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || || TOTAL

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

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

3.2.2.
Estimated impact on operational appropriations

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

–
þ  The proposal requires the use of operational appropriations, as
explained below:           
Home Affairs policy is implemented mainly by shared management. While spending
priorities are set at the EU level, actual day-to-day management is vested in
Responsible Authorities at national level. Common output indicators and targets
will be decided together by the Commission and the Responsible Authorities as
part of their national programmes, and approved by the Commission. It is
therefore difficult to indicate targets for outputs until the programmes are
drafted, negotiated and approved in 2013/14.     
As regards centralised management, it is also not possible for DG HOME to
provide an exhaustive list of all outputs to be delivered by means of the
financial intervention under the Funds, their average costs and numbers, as
requested by this section. There are no statistical tools at the moment
allowing the calculation of meaningful average costs on the basis of the
current programmes, and such a precise definition would be contrary to the
principle that the future programme should provide enough flexibility to cater
for adapting to political priorities between 2014-2020. This is particularly
true for emergency assistance and actions in and in relation to third
countries.

Commitment appropriations in EUR million (to 3 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 of output[40] || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost

SPECIFIC OBJECTIVE No 1[41]... || || || || || || || || || || || || || || || ||

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

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

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

Sub-total for specific objective N°1 || || || || || || || || || || || || || || || ||

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

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

Sub-total for specific objective N°2 || || || || || || || || || || || || || || || ||

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

3.2.3.
Estimated impact on appropriations of an
administrative nature
3.2.3.1.
Summary

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

–
þ The proposal requires the use of administrative appropriations, as
explained below:

As there are
common elements in the implementation of the Asylum and Migration Fund and the
Internal Security Fund such as a policy dialogue with each Member States and
given that the internal organisation of DG HOME in order to ensure the
management of the new Funds (as well as the closure of the programmes currently
managed) may evolve, it is not possible to split the Administrative expenditure
between the Asylum and Migration Fund and the Internal Security Fund.

Therefore the
figures related to Heading 5 below correspond to the total administrative
expenditure deemed necessary to ensure management of both Funds by DG and there
is no total of appropriations.

EUR million (to 3
decimal places) HOME

HEADING 5 of the multiannual financial framework[42] || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

Human resources HOME || 20.841 || 20.841 || 20.841 || 20.841 || 20.841 || 20.841 || 20.841 || 145,887

Other administrative expenditure || 0,156 || 0,159 || 0,162 || 0,165 || 0,168 || 0,172 || 0,175 || 1,157

Subtotal HEADING 5 of the multiannual financial framework || 20.997 || 21.000 || 21.003 || 21.006 || 21.009 || 21.013 || 21.016 || 147.044

Outside HEADING 5[43] of the multiannual financial framework [44] || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

Human resources HOME || 0.640 || 0.640 || 0.640 || 0.640 || 0.640 || 0.640 || 0.640 || 4.480

Other expenditure of an administrative nature || 1.860 || 1.860 || 1.860 || 1.860 || 1.860 || 1.860 || 1.860 || 13.020

Subtotal outside HEADING 5 of the multiannual financial framework || 2.500 || 2.500 || 2.500 || 2.500 || 2.500 || 2.500 || 2.500 || 17.500

TOTAL || N/A || N/A || N/A || N/A || N/A || N/A || N/A || N/A

3.2.3.2.
 Estimated requirements of human resources

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

–
þ The proposal/initiative requires the use of human resources, as
explained below: Figures used for the year n are the ones for 2011.

As there are
common elements in the implementation of the Asylum and Migration Fund and the
Internal Security Fund such as a policy dialogue with each Member States and
given that the internal organisation of DG HOME in order to ensure the
management of the new Funds (as well as the closure of the programmes currently
managed) may evolve, it is not possible to split the Administrative expenditure
between the Asylum and Migration Fund and the Internal Security Fund.

Therefore the
figures related to Heading 5 below correspond to the total administrative
expenditure deemed necessary to ensure management of both Funds by DG and there
is no total of appropriations.

Estimate to be expressed in full amounts
(or at most to one decimal place)

|| || Year N || Year N+1 || Year N+2 || Year N+3 || Year N+4 || Year N+5 || Year N+6

Ÿ Establishment plan posts (officials and temporary agents) HOME ||

|| 18 01 01 01 (Headquarters and Commission’s Representation Offices) || 136 || 136 || 136 || 136 || 136 || 136 || 136

|| XX 01 01 02 (Delegations) || 15 || 15 || 15 || 15 || 15 || 15 || 15

|| 18 01 05 01 (Indirect research) || || || || || || ||

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

|| Ÿ External personnel (in Full Time Equivalent unit: FTE)[45] ||

|| 18 02 01 (CA, INT, SNE from the "global envelope") || 16 || 16 || 16 || 16 || 16 || 16 || 16

|| XX 02 02 (CA, INT, JED, LA and SNE in the delegations) || 10 || 10 || 10 || 10 || 10 || 10 || 10

|| 18 01 04 bb [46] || - at Headquarters[47] || 4 || 4 || 4 || 4 || 4 || 4 || 4

|| - in delegations || * || * || * || * || * || * || *

|| 18 01 04 cc [48] || - at Headquarters[49] || 6 || 6 || 6 || 6 || 6 || 6 || 6

|| - in delegations || * || * || * || * || * || * || *

|| XX 01 05 02 (CA, INT, SNE - Indirect research) || || || || || || ||

|| 10 01 05 02 (CA, INT, SNE - Direct research) || || || || || || ||

|| Other 13 01 04 02) || || || || || || ||

|| TOTAL || N/A || N/A || N/A || N/A || N/A || N/A || N/A

XX is the
policy area or budget title concerned.

The human resources required will be met
by staff 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 and in the light of budgetary constraints. Amounts and imputations
would be adjusted in the event of any externalisation process to an Executive
Agency.

Description of
tasks to be carried out:

Officials and temporary agents at headquarters || The tasks to be carried out comprise all tasks necessary to the management of a financial programme, such as: - providing input to the budgetary procedure;               - conducting the policy dialogue with Member States; - preparing annual work programmes/financing decisions, establishing annual priorities, approving national programmes;      - managing national programmes, calls for proposals and calls for tenders and the subsequent selection procedures;    - communicating with stakeholders (potential/actual beneficiaries, Member States, etc); - drafting guidelines to Member States            - managing projects, operationally and financially;       - performing controls, as described above (ex ante verification, procurement committee, ex post audits, internal audit, clearance of accounts);   - accounting;        - developing and managing grant and national programme management IT tools;  - monitoring and reporting on achievement of objectives, including in the Annual Activity Report and in the report of the Authorising Officer by sub-Delegation

External personnel || The tasks are similar to those of officials and temporary agents, except for tasks that cannot be fulfilled by external personnel

Personnel in delegations || To accompany the development of policy implementation in the home affairs area, and in particular its external dimension, EU delegations will need to be equipped with sufficient home affairs expertise. This could be staff from the European Commission and/or the European External Action Service.

3.2.4.
Compatibility with the current multiannual
financial framework

–
þ  Proposal/initiative is compatible the next multiannual
financial framework.

–
 ̈  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.

–
 ̈  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[50].

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

–
þ The proposal provides that European funding needs to be
co-financed. The exact amount cannot be quantified. The regulation establishes
maximum co-financing rates differentiated in line with the types of actions:

Appropriations in EUR million (to 3 decimal places)

|| 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || Total

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

TOTAL appropriations cofinanced || tbd || tbd || tbd || tbd || tbd || tbd || tbd ||

3.3.
Estimated impact on revenue

–
þ  Proposal/initiative has no financial impact on revenue.

–
 ̈  Proposal/initiative has the following financial impact:

–
 ̈         on own resources

–
 ̈         on miscellaneous revenue

EUR million (to 3 decimal places)

Budget revenue line: || Appropriations available for the ongoing budget year || Impact of the proposal/initiative[51]

Year N || Year N+1 || Year N+2 || Year N+3 || ... insert as many columns as necessary in order to reflect 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 115, 4.5.2010, p.1

[2]               COM (2010) 673 final

[3]               COM (2011) 248 final

[4]               COM (2011) 561 final

[5]               COM(2011)680 final

[6]               COM(2011) 500 final

[7]               The consultation documents and report on the results
of the consultation are available on the DG Home Affairs website: http://ec.europa.eu/home-affairs/news/consulting_public/consulting_0020_en.htm

[8]               "The EU Budget Review", COM (2010) 700,
19.10.2010.

[9]               Commission proposal – Regulation on the financial
rules applicable to the annual budget of the Union (COM(2010)815 final of
22.12.2010). This proposal constitutes a formal withdrawal by the Commission of
the previous legislative proposals COM(2010)71 final and COM(2010)260 final.

[10]             In line with Protocol 5 to the Accession Treaty of
Lithuania, for the implementation of the Regulations on the Facilitated Transit
Document (FTD) and the Facilitated Rail Transit Document (FRTD) (OJ L 99, 17.4.2003,
p.8; OJ L 99, 17.4.2003, p.15), the EU bears the additional cost of the Scheme
and compensates Lithuania for not imposing fees when issuing the documents
concerned for Russian citizens transiting through the EU to and from the
Kaliningrad region.

[11]             Annex on estimated costs of the systems - COM(2011)680
final

[12]             OJ L 286, 1.11.2011, p.1

[13]             OJ C , , p. .

[14]             OJ C , , p. .

[15]             Council doc. 7120/10.

[16]             COM (2010) 673 final.

[17]             [OJ L ... to be completed]

[18]             OJ L144, 6.6.2007, p.22

[19]             OJ L 349, 25.11.2004, p.1

[20]             OJ to be completed

[21]             OJ L 236, 23.9.2003, p. 946.

[22]             OJ L 99, 17.4.2003, p. 8.

[23]             OJ L 99, 17.4.2003, p. 15.

[24]             COM (2011) 559 final

[25]             OJ L 55, 28.2.2011, p. 13.

[26]             OJ L 144, 6.6.2007, p. 22

[27]             OJ L 176 of 10.7.1999, p. 31.

[28]             OJ L 53 of 27.2.2008, p. 1.

[29]             OJ L 160 of 18.6.2011, p. 19

[30]             COM(2011)559 final

[31]             COM(2011)403 final

[32]             ABM: Activity-Based Management – ABB: Activity-Based
Budgeting.

[33]             As referred to in Article 49(6)(a) or (b) of the
Financial Regulation.

[34]             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

[35]             As referred to in Article 185 of the Financial
Regulation.

[36]             Diff. = Differentiated appropriations / Non-Diff. =
Non-differentiated appropriations

[37]             EFTA: European Free Trade Association.

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

[39]             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.

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

[41]             As described in Section 1.4.2. "Specific
objective(s)..."

[42]             Global envelope, based on the 2011 Final Allocation for
Human Resources, including officials and external staff

[43]             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.

[44]             External staff financed from former BA lines, based on
the 2011 Final Allocation for Human Resources, including external staff at Headquarters
and in Delegations

[45]             CA= Contract Agent; INT= agency staff ("Intérimaire");
JED= "Jeune Expert en Délégation" (Young Experts in
Delegations); LA= Local Agent; SNE= Seconded National Expert;

[46]             Under the ceiling for external personnel from
operational appropriations (former "BA" lines).

[47]             Essentially for Structural Funds, European Agricultural
Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).

[48]             Under the ceiling for external personnel from
operational appropriations (former "BA" lines).

[49]             Essentially for Structural Funds, European Agricultural
Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).

[50]             See points 19 and 24 of the Interinstitutional
Agreement.

[51]             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.