Adjustment of the multiannual financial framework in accordance with Article 7 of Council Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027

1.Introduction

Article 7 of Council Regulation 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027 (MFF Regulation) provides for an adjustment of the multiannual financial framework (‘MFF’) in case of late adoption of rules or programmes under shared management:

1.In the event of the adoption after 1 January 2021 of new rules or programmes under shared management for the Structural Funds, the Cohesion Fund, the Just Transition Fund, the European Agricultural Fund for Rural Development, the European Maritime and Fisheries Fund, the Asylum and Migration Fund, the Internal Security Fund and the Border Management and Visa Instrument under the Integrated Border Management Fund, the amounts corresponding to the allocations not used in 2021 shall be transferred in equal proportions to each of the years 2022 to 2025, and the corresponding MFF ceilings shall be adjusted accordingly.

2.The Commission shall communicate the result of any adjustments under paragraph 1 to the European Parliament and to the Council.

As a consequence of the late agreement on the MFF 2021 - 2027, the various legal acts laying down provisions for implementing the funds were only adopted by mid-2021: the European Regional Development Fund (ERDF), the Cohesion Fund (CF), the European Social Fund (ESF+), the Just Transition Fund (JTF), the European Maritime and Fisheries Fund (EMFAF), the Asylum, Migration and Integration Fund (AMIF), the Internal Security Fund and the Border Management and Visa Instrument under the Integrated Border Management Fund (BMVI). For the European Agricultural Fund for Rural Development (EAFRD), the transitional regulation for the years 2021 and 2022 was adopted in December 2020.

Therefore, most programmes (except the EAFRD programmes which were fully adopted in 2021) could not be adopted in 2021 and were not advanced enough to benefit from the procedure for carry-over of appropriations under Article 12(2)(a) of the Financial Regulation. Allocations neither used in 2021 nor carried over are to be transferred to subsequent years by means of an adjustment of the MFF in accordance with Article 7 of the MFF Regulation.

The adjustment of the MFF ceilings is accompanied by the Draft Amending Budget 1/2022 reflecting the impact of this transfer on 2022 commitment appropriations. The adjustment and the adoption of the Amending Budget are necessary conditions for the implementation in 2022 of all programmes which were not adopted in 2021 by the first instalment of budgetary commitments and the payment of pre-financing under these programmes.

2.Scope of the adjustment

Article 7 of the MFF Regulation applies exclusively to the nine funds identified under Article 7(1) (the Funds), and in addition, only to the part of these funds allocated for implementation under shared management.

The adjustment applies in the event of the adoption after 1 January 2021 of new rules or programmes under shared management. Where Partnership Agreements, required under the Common Provisions Regulation (CPR) for some funds, provide for contributions from CPR funds to other programmes or funds under Articles 14 and 26 of the CPR, such contributions are included in the reprogramming only if the receiving instrument is within the Funds identified under Article 7(1) of the MFF Regulation. Resources from the ERDF under ETC/Interreg under Heading 2a are included in the reprogramming.

For all the Funds, actions implemented by the Commission under direct management (such as technical assistance at the initiative of the Commission under all Funds, innovative actions or direct or indirect management components of the ESF+, EMFAF, the AMIF, the ISF and the BMVI) as well as the amounts transferred from the Cohesion Fund to the Connecting Europe Facility are excluded from the reprogramming, as they are not covered by programmes within the meaning of Article 7 of the MFF Regulation.

For the AMIF, the ISF and the BMVI, allocations for the respective Thematic Facilities are excluded from the reprogramming, even if these activities can be implemented under shared management.

Contributions from other instruments and programmes, including those under Heading 6, to the Funds referred to in Article 7(1) of the MFF Regulation are excluded from the reprogramming.

3.Results of the adjustment

Allocations in commitment appropriations not used in 2021 for programmes under shared management within the meaning of Article 7 of the MFF Regulation amount to EUR 48 988 299 856 in current prices. This corresponds to the 2021 commitment appropriations that were planned to be implemented in shared management, but could neither be used in 2021 nor carried over to 2022 because of the late adoption of the corresponding programmes.

The below table shows the distribution by Fund of the 2021 commitments to be implemented in shared management, distinguishing those committed in 2021 from those carried-over as well as from those to be transferred under Article 7 of the MFF Regulation:

(EUR, current prices) Fund 2021 allocation Adopted 2021 Carry-over Transferred

under Article 7 MFF Regulation European Social Fund+ ESF+ 12 703 321 468 0 0 12 703 321 468 European Social Fund+ - Contribution to Just Transition Fund ESF+ / JTF 14 353 437 0 0 14 353 437 European Social Fund+ - Contribution to Border Management and Visa Instrument ESF+ / BMVI 23 084 677 0 0 23 084 677 Cohesion Fund CF 4 667 326 227 0 0 4 667 326 227 Cohesion Fund - Contribution to Border Management and Visa Instrument CF / BMVI 11 942 427 0 0 11 942 427 European Regional Development Fund ERDF 27 682 703 881 0 0 27 682 703 881 European Regional Development Fund - Contribution to Just Transition Fund ERDF / JTF 57 412 634 0 0 57 412 634 European Regional Development Fund - Contribution to Border Management and Visa Instrument ERDF / BMVI 45 229 523 0 0 45 229 523 European Regional Development Fund - Territorial Cooperation ERDF/TC 1 216 170 898 0 0 1 216 170 898 Sub-total Heading 2a 46 421 545 172 0 0 46 421 545 172 Just Transition Fund JTF 1 133 029 041 0 0 1 133 029 041 European Maritime, Fisheries and Aquaculture Fund EMFAF 648 270 207 0 0 648 270 207 European Maritime, Fisheries and Aquaculture Fund - Contribution to Border Management and Visa Instrument EMFAF / BMVI 1 376 095 0 0 1 376 095 Sub-total Heading 3 1 782 675 343 0 0 1 782 675 343 Asylum and Migration Fund AMIF 397 437 000 0 0 397 437 000 Border Management and Visa Instrument under the Integrated Border Management Fund BMVI 278 499 341 0 0 278 499 341 Sub-total Heading 4 675 936 341 0 0 675 936 341 Internal Security Fund ISF 108 143 000 0 0 108 143 000 Sub-total Heading 5 108 143 000 0 0 108 143 000 TOTAL 48 988 299 856 0 0 48 988 299 856

As per Article 7 of the MFF Regulation, the allocations not used in 2021 and not carried over are transfered in equal proportions to each of the years 2022 to 2025 as shown in the table below.