EN    EN  
 EUROPEAN COMMISSION 
Brussels, 11.9.2012  
COM(2012) 496 final 
2011/0276 (COD) 
  
Amended proposal for a 
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 
laying down common provisions on the Eu ropean Regional De velopment Fund, the 
European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural 
Development and the European Maritime and Fisheries Fund covered by the Common 
Strategic Framework and laying down gene ral provisions on the European Regional 
Development Fund, the European Social Fu nd and the Cohesion Fund and repealing 
Council Regulation (EC) No 1083/2006 
 
EN 2   EN EXPLANATORY MEMORANDUM  
1. CONTEXT  OF THE  PROPOSAL 
The Commission presented its proposals for a regulation laying down common 
provisions on the ERDF, the ESF, the CF , the EAFRD and the EMFF and general 
provisions on cohesion policy funds on 6 October 2011 (COM(2011) 615 final).  
This proposed Common Provisions Regulat ion (CPR) foresaw the adoption of a 
Common Strategic Framework (CSF) which: 
"…translates the objectives of the Union into key actions fo r the CSF Funds, in order to 
provide clearer strategic direction to the programming process at the level of Member 
States and regions. The Common Strategic Fr amework should facil itate sectoral and 
territorial coordination of Union inter vention under the CSF Funds and with other 
relevant Union policies and instruments. 
The Common Strategic Framewor k should therefore establish the key areas of support, 
territorial challenges to be addressed, policy objectives, priority areas for cooperation 
activities, coordinatio n mechanisms and mechanisms for co herence and consistency with 
the economic policies of Member States  and the Union." (R ecitals 14 and 15) 
The Commission's proposal set out the objectives a nd content of the CSF in Articles 10 
and 11 of the CPR. Article 12 of the pr oposal foresaw that the Common Strategic 
Framework would be adopted by the Commission as a delegated act.  
Both the Council and the REGI committee of the European Parliament have signalled 
that they wish to see the CSF adopted as an annex to the regulation and not as a delegated act. In view of this and in order to facilita te a compromise between the institutions, the 
Commission presents this amended legislativ e proposal which splits the elements of the 
CSF between a new annex (Annex I) to th e CPR and a delegate d act. The Commission 
maintains, however, that all elements, whether included in the annex or in the delegated act, remain non-essential elements for th e purpose of Article 290 Treaty of the 
Functioning of the European Union and can  thus be amended by delegated act. The 
essential elements are contained in  Articles 11 and 12 of the CPR.  
2. RESULTS
 OF CONSULTATIONS  WITH  THE  INTERESTED  PARTIES  
AND  IMPACT  ASSESSMENTS 
In order to facilitate the discussion, a Comm ission staff working document setting out the 
main elements of the CSF was publis hed on 14 March 2012 (S WD (2012) 61).  
Following examination of the staff working document, the Council and the REGI 
committee of the European Parliament have  maintained their position that the CSF 
should be adopted as an annex to the CPR. Bo th consider that the CSF is an essential 
element of the legislative act, as they argue that the CSF expresses political choices on 
the fundamental aspects of cohesion polic y. Corresponding amendments have been 
included in the partial gene ral approach adopted by the General Affairs Council on 24 
April 2012 and in the draft reports from the REGI committee of the EP. 
EN 3   EN An Impact Assessment has been carried ou t for the original le gislative proposals. 
3. LEGAL  ELEMENTS  OF THE  PROPOSAL 
The amended legislative proposal splits the elements of the CSF between a new annex 
(Annex I) to the CPR and a delegated act. Th e provisions on the C SF contained in the 
annex are non-essential elements  of the legislative act in terms of Article 290 TFEU and 
can thus be modified by delegated act.  
The new annex contains four sections on 1) means to achieve coherence and consistency 
with the economic policies of Member States  and the Union, 2) coordination mechanisms 
among CSF Funds and with other relevant Uni on policies and instruments, 3) horizontal 
principles and cross-cutting po licy objectives and 4)  arrangements to address territorial 
challenges. These sections will largely build  on sections 3, 4 and 5 of the Commission 
staff working document and relevant elements of its Annexes I and II, adapting the language to the requiremen ts of regulatory text.  
The delegated act will in turn contain two s ections: 1) sections on indicative actions of 
high European added value and corresponding prin ciples for delivery a nd 2) priorities for 
cooperation. These largely build on Annexe s I and II to the staff working document, 
again with the necessary legal adaptations.  
The figures contained in the section on the financial framework and in the legislative 
financial statement have been updated to take account of the Commission's amended 
proposal for the multiannual financial framework 2014-2020
1.  
4. BUDGETARY  IMPLICATIONS 
The amended proposal will have no budgetary implications. The availability of new 
data and macro-economic forecasts as well as the accession of the Republic of 
Croatia results however in changes of the cohesion envelope.  
5. SUMMARY  OF AMENDMENTS 
The amendment concerns changes to Recita ls 14, 15, 16, 83, 84 and 88, and Articles 2, 
10, 11, 12, 14, 141 and 142. A new Annex I has al so been added, which has caused 
changes in the numbering of the annexes in  some additional articles (19, 83, 86, 87, 105, 
106 and 107). The legislative financial statement has also been updated. 
                                                 
1 COM(2012)388 final 
EN 4   EN 2011/0276 (COD) 
Amended proposal for a 
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 
laying down common provisions on the Eu ropean Regional Development Fund, the 
European Social Fund, the Cohesion Fund,  the European Agricultural Fund for 
Rural Development and the European Maritime and Fisheries Fund covered by the 
Common Strategic Framework and laying down general provisions on the 
European Regional Development Fund, the European Social Fund and the 
Cohesion Fund and repealing Council Regulation (EC) No 1083/2006 
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 177 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 Eu ropean Economic and Social Committee
2,  
Having regard to the opinion of  the Committee of the Regions3, 
Having regard to the opinion of the Court of Auditors4, 
Acting in accordance with the or dinary legislative procedure, 
Whereas: (1) Article 174 of the Treaty provides that, in  order to strengthen its economic, social 
and territorial cohesion, the Union shall aim at reducing disparities between the 
levels of development of the various re gions and the backwardness of the least 
favoured regions or islands, particular rural areas, areas affected by industrial 
transition, and regions which suffer from severe and permanent natural or demographic handicaps. Article 175 of th e Treaty requires that the Union would 
support the achievement of these objectives by action it takes through the European Agricultural Guidance and Guarantee Fund, Guidance Section, the 
European Social Fund, the European Re gional Development Fund, the European 
Investment Bank and other instruments. 
(2) In line with the conclusions of th e European Council of 17 June 2010, whereby 
the Union strategy for smart, sustainabl e and inclusive growth was adopted, the 
                                                
 
2 OJ C , , p. .  
3 OJ C , , p. .  
4 OJ C , , p. .  
EN 5   EN Union and Member States should impleme nt the delivery of smart, sustainable 
and inclusive growth, while promoting harmonious development of the Union and reducing regional disparities. 
(3) In order to improve coordination a nd harmonise implementation of the Funds 
providing support under the cohesion polic y, namely the European Regional 
Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion 
Fund (CF), with the Funds for rural development, namely the European 
Agricultural Fund for Rural Developmen t (EAFRD), and for the maritime and 
fisheries sector, namely the European Maritime and Fisheries Fund (EMFF), 
common provisions should be established fo r all these Funds (the 'CSF Funds'). In 
addition this Regulation contains provis ions which are common for the ERDF, the 
ESF and the CF, but do not apply to the EAFRD and the EMFF. Due to the 
particularities that exist for each CSF F und, specific rules applicable to each CSF 
Fund and to the European territorial c ooperation goal under the ERDF should be 
specified in separate regulations. 
(4) As regards the Common Agricultural Po licy (CAP), significant synergies have 
already been obtained by harmonising a nd aligning management and control rules 
for the first pillar (EAGF - European Agricultural Guarantee Fund) and the 
second pillar (EAFRD) of the CAP. Th e strong link between the EAGF and the 
EAFRD should therefore be maintained and the structures alrea dy in place in the 
Member States be sustained. 
(5) The outermost regions should benefit from specific measur es and additional 
funding to offset the handicaps resulting fr om the factors referred to in Article 
349 of the Treaty. 
(6) To ensure correct and consistent interp retation of provisions a nd to contribute to 
the legal certainty of Member States and beneficiaries, it is necessary to define certain terms that are used in the Regulation.  
(7) It is set out that this Regulation consists  of three parts, of wh ich the first contains 
recitals and definitions, the second contains rules applicable to all CSF Funds and the third includes provisions applicable  only to the ERDF, the ESF and the CF 
(the 'Funds').  
(8) Under Article 317 of the Treaty, and in the context of shared management, the 
conditions allowing the Commission to exercise its responsibilities for 
implementation of the general budget of the European Union should be specified 
and the responsibilities of cooperation by the Member States clarified. Those 
conditions should enable the Commission to obtain assurance that Member States 
are using the CSF Funds in a legal and re gular manner and in accordance with the 
principle of sound financial management within the meaning of Council Regulation (EC, Euratom) No 1605/ 2002 of 25 June 2002 on the Financial 
Regulation applicable to the genera l budget of the European Communities 
(hereinafter referred to as the 'Financial Regulation')
5. Member States and the 
bodies designated by them for that purpose should be responsible for 
implementing programmes at the appropriate territorial level, in accordance with the institutional, legal and financial framework of the Member State. These 
                                                
 
5 OJ L 248, 16.9.2002, p. 1.  
EN 6   EN provisions also ensure that attenti on is drawn to the need to ensure 
complementarity and consistency of Un ion intervention, the proportionality of 
administrative arrangements and a reduc tion of the administrative burden of 
beneficiaries of the CSF Funds. 
(9) For the Partnership Contract and eac h programme respectively, a Member State 
should organise a partnershi p with the representative s of competent regional, 
local, urban and other public authorities, economic and social partners, and bodies 
representing civil society, including environmental partners, non-governmental 
organisations, and bodies responsible for promoting equality and non-discrimination. The purpose of such a partne rship is to respect the principle of 
multi-level governance, ensure the owne rship of planned interventions by 
stakeholders and build on the experience and know-how of relevant actors. The 
Commission should be empowered to adopt delegated acts providing for a code of 
conduct in order to ensure  that partners are involved in the preparation, 
implementation, monitoring and evaluati on of Partnership Contracts and 
programmes in a consistent manner. 
(10) The activities of the CSF Funds and the operations which th ey support should 
comply with applicable Union and national law which is directly or indirectly 
linked to the implementation of the operation. 
(11) In the context of its ef fort to increase economic, terri torial and social cohesion, 
the Union should, at all st ages of implementation of  the CSF Funds, aim at 
eliminating inequalities and promoting equa lity between men and women, as well 
as combating discrimination based on sex, racial or ethnic origin, religion or 
belief, disability, age or sexual orientation. 
(12) The objectives of the CSF Funds s hould be pursued in the framework of 
sustainable development and the Union's promotion of the ai m of protecting and 
improving the environment as set out in Article 11 and 19 of the Treaty, taking 
into account the polluter pays principl e. The Member States should provide 
information on the support for climate change  objectives in line with the ambition 
to devote at least 20% of the Union budget to this end, using a methodology 
adopted by the Commission by implementing act.  
(13) In order to achieve the targets and obj ectives of the Union strategy for smart, 
sustainable and inclusive gr owth, the CSF Funds should focus their support on a 
limited number of common thematic objectiv es. The precise scope of each of the 
CSF Funds should be set out in Funds-specific rules and may be limited to only some of the thematic objectives  defined in this Regulation.  
(14) In order to maximise the contribution of the CSF Funds and to provide clear 
strategic direction to the programming pr ocess at the level of Member States 
and the regions,  The Commission should adopt by delegated act  a Common 
Strategic Framework should be established  which translates the objectives of the 
Union into key actions for the CSF Funds , in order to provide clearer strategic 
direction to the programming process at the level of Member States and regions . 
The Common Strategic Framework should f acilitate sectoral and territorial 
coordination of Union intervention under the CSF Funds and with other relevant 
Union policies and instruments. 
EN 7   EN (15) The Common Strategic Framework shoul d therefore establish the key areas of 
support  set out  the means to achieve  coherence and consistency with the 
economic policies of Member States and the Union, coordination mechanisms 
among the CSF Funds and with ot her relevant Union policies and 
instruments, horizontal principles and cross-cutting policy objectives, the 
arrangements to address  territorial challenges  to be addressed , indicative  
actions of high European added val ue and corresponding principles for 
delivery, and  priorities policy objectives,  priorit y areas for cooperation 
activities, coordination mechanisms and mech anisms for coherence and 
consistency with the economic policies of Member States and the Union . 
(16) On the basis of the Common Strategic Framework adopted by the Commission , 
each Member State should prepare, in cooperation with its partners and in dialogue with the Commission, a Partnership Contract. Th e Partnership Contract 
should translate the elements set out in the Common Strategic Framework into the 
national context and set out firm comm itments to the achievement of Union 
objectives through the program ming of the CSF Funds.  
(17) Member States should concentrate suppor t to ensure a signif icant contribution to 
the achievement of Union objectives in  line with their specific national and 
regional development needs. Ex ante  conditionalities should be  defined to ensure 
that the necessary framework conditions fo r the effective use of Union support are 
in place. The fulfilment of those ex ante conditionalities should be assessed by the 
Commission in the framework of its asse ssment of the Partnership Contract and 
programmes. In cases where there is a failure to fulfil an ex ante  conditionality, 
the Commission should have the power to suspend payments to the programme. 
(18) A performance framework should be defi ned for each programme  with a view to 
monitoring progress towards the objectiv es and targets set for each programme 
over the course of the programming pe riod. The Commission should undertake a 
performance review in cooperation with  the Member States in 2017 and 2019. A 
performance reserve should be foreseen and allocated in 2019 where milestones set in the performance framework have b een attained. Due to their diversity and 
multi-country character, there should be  no performance reserve for 'European 
Territorial Cooperation' programmes. In  cases where the shortfall in the 
achievement of milestones or targets is  significant, the Commission should be 
able to suspend payments to the programme or, at the end of the programming 
period, apply financial corrections, in orde r to ensure that th e Union budget is not 
used in a wasteful or inefficient way.  
(19) Establishing a closer  link between cohesi on policy and the economic governance 
of the Union will ensure that the eff ectiveness of expenditure under the CSF 
Funds is underpinned by sound economic po licies and that the CSF Funds can, if 
necessary, be redirected to addressing the economic problems a country is facing. 
This process has to be gr adual, starting with amendments to the Partnership 
Contract and to the programmes in support of Council recommendations to 
address macroeconomic imbalances and so cial and economic difficulties. Where, 
despite the enhanced use of CSF Funds, a Member State fails to take effective 
action in the context of the economic gove rnance process, the Commission should 
have the right to suspend all or part of  the payments and commitments. Decisions 
on suspensions should be proportionate a nd effective, taking into account the 
EN 8   EN impact of the individual programmes for addressing the economic and social 
situation in the relevant Member St ate and previous amendments to the 
Partnership Contract. When deciding on suspensions, the Commission should also 
respect equality of treatment between Member States, taking into account in 
particular the impact of the suspen sion on the economy of the Member State 
concerned. The suspensions should be lift ed and funds be made available again to 
the Member State concerned as soon as the Member State takes the necessary 
action. 
(20) In order to ensure fo cus on the achievement of the Union strategy for smart, 
sustainable and inclusive growth, common elements should be defined for all 
programmes. In order to ensure the c onsistency of programming arrangements for 
the CSF Funds, the procedures for a doption and amendment of programmes 
should be aligned. Programming should ensure consistenc y with the Common 
Strategic Framework and Partnership C ontract, coordination of the CSF Funds 
between themselves and with the other existing financial instruments and the 
European Investment Bank. 
(21) Territorial cohesion has been added to the goals of economic and social cohesion 
by the Treaty, and it is necessary to address the role of  cities, functional 
geographies and sub-regional areas facing specific geographical or demographic 
problems. To this end, to better mobilise pot ential at a local leve l, it is necessary 
to strengthen and facilitate community -led local development by laying down 
common rules and close coordination fo r all CSF Funds. Responsibility for the 
implementation of local development stra tegies should be given to local action 
groups representing the interests of the community, as an essential principle. 
(22) Financial instruments are increasingly important due to  their leverage effect on 
CSF Funds, their capacity to combine di fferent forms of public and private 
resources to support public policy objectives, and because revolving forms of finance make such support more sustainable over the longer term. 
(23) Financial instruments supported by th e CSF Funds should be used to address 
specific market needs in a cost effectiv e way, in accordance with the objectives of 
the programmes, and should not crowd out  private financing. The decision to 
finance support measures through financ ial instruments should be determined 
therefore on the basis of an ex ante  analysis.  
(24) Financial instruments should be desi gned and implemented so as to promote 
substantial participation by pr ivate sector investors and financial institutions on an 
appropriate risk-sharing ba sis. To be sufficiently attractive to private sector, 
financial instruments need to be designe d and implemented in a flexible manner. 
Managing authorities should therefore deci de on the most appropriate forms to 
implement financial instruments to addr ess the specific n eeds of the target 
regions, in accordance with the objec tives of the relevant programme. 
(25) Managing authorities should have the possibility to contribute resources from 
programmes to financial instruments set up at Union level, or to instruments set 
up at regional level. Mana ging authorities should also have the possibility to 
implement financial instruments directly, through specific funds or through funds 
of funds. 
EN 9   EN (26) The amount of the resources paid at any time from the CSF Funds to financial 
instruments should correspond to the amount necessary to implement planned investments and payments to final reci pients, including management costs and 
fees, determined on the basi s of business plans and cash-flow forecasts for a pre-
defined period which should not exceed two years. 
(27) It is necessary to lay down specific ru les regarding the amounts to be accepted as 
eligible expenditure at closure, to ensure that the amounts, including the 
management costs and fees, paid from th e CSF Funds to financial instruments are 
effectively used for investments and paym ents to final recipi ents. It is also 
necessary to lay down specific rules regard ing the reuse of resources attributable 
to the support from the CSF Funds, includi ng the use of legacy resources after the 
closure of the programmes. 
(28) Member States should monitor progra mmes in order to review implementation 
and progress towards achieving the pr ogramme's objectives. To this end, 
monitoring committees should be set up and their composition and functions defined for CSF Funds. Joint Monitoring Committees could be set up to facilitate coordination between the CSF Funds In orde r to ensure effectiv eness, monitoring 
committees should be able to issue r ecommendations to managing authorities 
regarding implementation of the programme  and should monitor actions taken as 
a result of its recommendations. 
(29) Alignment of the monitoring and re porting arrangements of the CSF Funds is 
necessary to simplify manageme nt arrangements at all le vels. It is important to 
ensure proportionate reporting requireme nts but also the availability of 
comprehensive information on progress made at key review points. Therefore it is 
necessary that reporting requirements reflec t information needs in given years and 
are aligned with the timing of  the performance reviews.  
(30) With a view to monitoring progress of programmes, an annual review meeting 
should take place between the Member State and the Commission. The Member 
State and the Commission should however be  able to agree not to organize the 
meeting in order to avoid unnecessary administrative burden. 
(31) In order for the Commission to m onitor progress towards achieving Union 
objectives, Member States should subm it progress reports on the implementation 
of their Partnership Contracts. On the basis of such reports, the Commission 
should prepare a strategy re port on progress in 2017 and 2019. 
(32) It is necessary to eval uate the effectiveness, efficiency and impact of assistance 
from the CSF Funds in order to improve the quality of implementation and design of programmes, and to determine the imp act of programmes in relation to the 
targets for the Union strategy for smart sustainable and inclus ive growth and in 
relation to GDP and unemployment, wh ere relevant. The responsibilities of 
Member States and the Commission in this regard should be specified.  
(33) In order to improve the quality and design of each programme, and verify that 
objectives and targets can be reached, an ex ante  evaluation of each programme 
should be carried out. 
EN 10   EN (34) An evaluation plan should be draw n up by the authority responsible for the 
preparation of the programme. Duri ng the programming period managing 
authorities should carry out ev aluations to assess the effectiveness and impact of a 
programme. The monitoring committee and the Commission should be informed 
about the results of evaluations to  facilitate management decisions. 
(35) Ex post  evaluations should be carried out in  order to assess the effectiveness and 
efficiency of the CSF Funds and their impact on the overall goals of the CSF 
Funds and the Union strategy for smart,  sustainable and inclusive growth. 
(36) It is useful to specify the types of acti on that may be undertaken at the initiative of 
the Commission and of the Member States  as technical assistance with support 
from the CSF Funds.  
(37) In order to ensure an effective use of Union resources, and avoid the over- 
financing of revenue generating operations, it is necessary to set out the rules for 
calculating the contribution from the CSF Funds to a revenue-generating 
operation.  
(38) The starting and closing dates for the eligibility of expenditure should be defined 
so as to provide for a uniform and equ itable rule applying to the implementation 
of the CSF Funds across the Union. In or der to facilitate the execution of 
programmes, it is appropriate to establish that the starting date for the eligibility 
of expenditure may be prior to 1 Janua ry 2014 if the Member State concerned 
submits a programme before that date. With  a view to ensuring an effective use of 
EU Funds and reducing the risk to the EU  budget, it is necessary to put in place 
restrictions on support for completed operations. 
(39) In accordance with the principle of subsidiarity and subject to exceptions 
provided for in Regulation(s) (EU) No  […] [ERDF, ESF, CF, ETC, EAFRD, 
EMFF Regulations], Member States should adopt nationa l rules on the eligibility 
of expenditure. 
(40) With a view to simplifying the use of  the CSF Funds and reducing the risk of 
errors, while providing for differentiation wh ere needed to reflect the specificities 
of policy, it is appropriate to define th e forms of support, harmonized conditions 
of reimbursement of grants and flat rate  financing, specific eligibility rules for 
grants and specific conditions on the e ligibility of operations depending on 
location.  
(41) To ensure the effectiveness, fairness and sustainable impact of the intervention of 
the CSF Funds, there should be provisions  guaranteeing that investments in 
businesses and infrastructures are long-la sting and prevent the CSF Funds from 
being used to undue advantage. Experience has shown that a pe riod of five years 
is an appropriate minimum period to be  applied, except where State aid rules 
foresee a different period. It is appropr iate to exclude actions supported by the 
ESF and those not entailing productive invest ment or investment in infrastructure 
from the general requirement of durability, unless such requirements are derived from applicable State aid rules, and to ex clude contributions to  or from financial 
instruments. 
EN 11   EN (42) Member States should adopt adequate  measures to guarantee the proper set up 
and functioning of their management and c ontrol systems to give assurance on the 
legal and regular use of the CSF Funds. The obligations of Member States as 
regards the management and control syst ems of programmes, and in relation to 
the prevention, detection and correction of  irregularities and infringements of 
Union law should therefore be specified.  
(43) In accordance with the principles of shared management, Member States should 
have the primary responsibility, through th eir management and control systems, 
for the implementation and control of the operations in programmes. In order to strengthen the effectiveness of the control over the selection and implementation of operations and the functioning of th e management and control system, the 
functions of the managing authority should be specified. 
(44) In order to provide assurance ex ante  on the set up and design  of the main systems 
of management and control, Member Stat es should designate an accrediting body 
that is responsible for the accreditati on and withdrawal of accreditation of 
managing and control bodies. 
(45) The powers and responsibilities of the Commission to verify the effective 
functioning of the management  and control systems, and to require Member State 
action, should be laid do wn. The Commission should also have the power to carry 
out audits focused on issues  relating to sound financia l management in order to 
draw conclusions on the performance of Funds. 
(46) Union budget commitments should be e ffected annually. In order to ensure 
effective programme management, it is necessary to lay down common rules for interim payment requests, the payment of  the annual balance, where appropriate, 
and the final balance, without prejudice to  specific rules that  are required for each 
of the CSF Funds. 
(47) The pre-financing payment at the star t of programmes ensures that the Member 
State has the means to provide support to  beneficiaries in the implementation of 
the programme from programme adoption. Therefore, provisions should be made 
for initial pre-financing amounts from th e CSF Funds. Initial pre-financing should 
be totally cleared at closure of the programme.  
(48) In order to safeguard the Union's fina ncial interests, ther e should be measures 
limited in time that allow the authorising officer by delegation to interrupt payments where there is evidence to s uggest a significant deficiency in the 
functioning of the management and cont rol system, evidence of irregularities 
linked to a payment application, or a fa ilure to submit documents for the purpose 
of clearance of accounts. 
(49) In order to ensure that expenditure co-financed by the Union budget in any given 
financial year is used in accordance with  the applicable rules, an appropriate 
framework should be created for the a nnual clearance of accounts. Under this 
framework, the accredited bodies should submit to the Commission, in respect of each programme, a management declaration of assurance accompanied by the certified annual accounts, a summary report of controls and an independent audit 
opinion and control report.  
EN 12   EN (50) In order to safeguard the Union budge t, it may be necessary for the Commission 
to make financial corrections. To ensure legal certainty for the Member States, it is important to define the circumstances  under which breaches of applicable 
Union or national law can lead to fina ncial corrections by the Commission. In 
order to ensure that financial correct ions which the Commission may impose on 
Member States are related to the protecti on of the EU's financial interests, they 
should be confined to cases where the br each of Union or national law concerns 
directly or indirectly the eligibility, regularity, management or control of 
operations and the corresponding expenditu re. To ensure proportionality it is 
important that the Commission considers th e nature and the grav ity of the breach 
in deciding the amount of financial correction.  
(51) In order to encourage financial disc ipline, it is appropriate to define the 
arrangements for decommitment of any part of the budget commitment in a programme, in particular where an amount  may be excluded from decommitment, 
notably when delays in implementation result from circumstances which are 
independent of the party concerned, abnormal or unforeseeable and whose 
consequences cannot be avoide d despite the diligence shown.  
(52) Additional general provisi ons are necessary in relation to the specific functioning 
of the Funds. In particular, in order to increase their added value, and to enhance 
their contribution to the priorities of th e Union strategy for smart, sustainable and 
inclusive growth, the functioning of these Funds should be simplified and 
concentrated on the goals of 'Investment  for growth and jobs' and 'European 
territorial cooperation'.  
(53) Additional provisions for the specific functioning of the EAFRD and the EMFF 
are set out in the relevant sector-specific legislation.  
(54) In order to promote th e Treaty objectives of econom ic, social and territorial 
cohesion, the 'Investment for growth and jobs' goal should support all regions. To 
provide balanced and gradual support and reflect the level of economic and social 
development, resources under that goal s hould be allocated from the ERDF and 
the ESF among the less developed regions , the transition regi ons and the more 
developed regions according to their gr oss domestic product (GDP) per capita in 
relation to the EU average. In order to ensure the long-term sustainability of 
investment from the Structural Funds , regions whose GDP per capita for the 
2007-2013 period was less th an 75% of the average of the EU-25 for the 
reference period but whose GDP per capita has grown to more than 75% of the 
EU-27 average should receive at least two thirds of thei r 2007-2013 allocation. 
Member States whose per capita gross nati onal income (GNI) is less than 90 % of 
that of the Union average should benef it under the 'Investment for growth and 
jobs' goal from the CF.  
(55) Objective criteria should  be fixed for designating eligible regions and areas for 
support from the Funds. To this end, the id entification of the regions and areas at 
Union level should be based on the comm on system of classification of the 
regions established by Regulation (EC) No 1059/2003 of the European Parliament 
EN 13   EN and the Council of 26 May 2003 on the esta blishment of a common classification 
of territorial units for statistics (NUTS)6. 
(56) In order to set out an appropriate financial fr amework, the Commission should 
establish, by means of implementing act s, the indicative annual breakdown of 
available commitment appropriations usi ng an objective and transparent method 
with a view to targeting the regions  whose development is lagging behind, 
including those receivin g transitional support. 
(57) It is necessary to fix the limits of those resources for the 'Investment for growth 
and jobs' goal and to adopt objective crit eria for their allocation to regions and 
Member States. In order to encourage the necessary acceleration of development of infrastructure in transport and energy as well as information and communication technologies across the Union, a Connecting Europe Facility 
should be created. The allocation of the a nnual appropriations from the Funds and 
the amounts transferred from the Cohe sion Fund to the Connecting Europe 
Facility to a Member State should be lim ited to a ceiling that would be fixed 
taking into account the capacity of that pa rticular Member State to absorb these 
appropriations. In addition, in line with  the headline target on poverty reduction, 
it is necessary to reorient the scheme for food support for the most deprived 
persons to promote social inclusion and the harmonious development of the 
Union. A mechanism is envisaged which tr ansfers resources to  this instrument 
and ensures that these will be constituted from ESF allocations through an implicit corresponding decrease of the mi nimum percentage of the Structural 
Funds to be allocated to the ESF in each country. 
(58) In order to strengthen the focus on results and achievement of the Europe 2020 
objectives and targets,  five per cent of the res ources for the 'Investment for 
growth and jobs' goal should be set aside as a performance reserve for each Fund, and category of region in each Member State.  
(59) As regards the Funds and with a view  to ensuring an appr opriate allocation to 
each category of regions, resources s hould not be transferred between less 
developed, transition and more develope d regions except in duly justified 
circumstances linked to the delivery of one or more th ematic objectives and for 
no more than 2 % of the total approp riation for that category of region. 
(60) In order to ensure a genuine economic impact, support from the Funds should not 
replace public expenditure or  equivalent structural e xpenditure by Member States 
under the terms of this Regulation. In add ition, so that the support from the Funds 
takes into account a broade r economic context, the le vel of public expenditure 
should be determined with reference to the general macroeconomic conditions in 
which the financing takes place based on th e indicators provided in the Stability 
and Convergence Programmes submitted annually by Member States in accordance with Regulation (EC) No. 1466/1997 of 7 July 1997 on the strengthening of the surveillance of budge tary positions and the surveillance and 
coordination of economic policies
7. Verification by the Commission of the 
principle of additionality should concentrate on the Memb er States in which less 
                                                 
6 OJ L 154, 21.6.2003, p. 1.  
7 OJ L 209, 2.8.1997, p. 1.  
EN 14   EN developed and transition regions cover at least 15% of the population because of 
the scale of the financial re sources allocated to them. 
(61) It is necessary to lay down additional provisions concerning the programming, 
management, monitoring and control of operational programmes supported by the 
Funds. Operational programmes should se t out priority axes  corresponding to 
thematic objectives, elaborate a consis tent intervention logic to tackle the 
development needs identified, and set out the framework for performance assessment. They should also contain ot her elements necessary to underpin the 
effective and efficient implementation of these Funds.  
(62) With a view to improving compleme ntarities and simplifying implementation, it 
should be possible to combine support fr om the CF and the ERDF with support 
from the ESF in joint operational progra mmes under the growth and jobs goal. 
(63) Major projects represent a substantial share of Union spending and are frequently 
of strategic importance with respect to the achievement of the Union strategy for 
smart, sustainable and inclusiv e growth. Therefore it is ju stified that operations of 
substantial size continue to be subjec t to approval by the Commission under this 
regulation. To ensure clarit y, it is appropriate to defi ne the content of a major 
project for this purpose. The Commissi on should also have the possibility to 
refuse support for a major project wher e the granting of such support is not 
justified.  
(64) In order to give Member  States the option of implemen ting part of an operational 
programme using a result-based approach, it is useful to provide for a joint action 
plan comprising a set of actions to be car ried out by a benefici ary to contribute to 
the objectives of the operat ional programme. In order to simplify and reinforce 
the result orientation of the Funds the ma nagement of the joint action plan should 
be exclusively based on jointly agreed m ilestones, outputs and results as defined 
in the Commission decision adopting the jo int action plan. Control and audit of a 
joint action plan should also be limited to  the achievement of these milestones, 
outputs and results. Consequently, it is necessary to lay down rules on its preparation, content, adoption, financial management and control of joint action 
plans. 
(65) Where an urban or territorial deve lopment strategy requires an integrated 
approach because it involves investments unde r more than one priority axis of one 
or several operational programmes, act ion supported by the Funds should be 
carried out as an integrated territorial investment within an operational programme. 
(66) It is necessary to adopt  specific rules in relation to the functions of the monitoring 
committee and the annual reports on implementation of operational programmes supported by the Funds. Additional provisi ons for the specific functioning of the 
EAFRD are set out in the relevant  sector specific legislation. 
(67) To ensure the availability of essen tial and up to date information on programme 
implementation, it is necessary that Memb er States provide the Commission with 
the key data on a regular ba sis. In order to avoid an  additional burden on Member 
States, this should be limited to data co llected continuously, a nd the transmission 
should be performed by way of  electronic data exchange. 
EN 15   EN (68) In accordance with Article 175 of th e Treaty, the Commission submits Cohesion 
Reports to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regi ons every three years on the progress 
made towards achieving the Union's econom ic, social and territorial cohesion. It 
is necessary to lay down the content of this report.  
(69) It is considered appropriate that th e Commission, in cooperation with the Member 
States, carries out the ex post  evaluation for the Funds to obtain information at the 
appropriate level on the resu lts and impact of interv entions financed. Specific 
provisions are also needed to establis h a procedure for the approval of the 
evaluation plans for the Funds.  
(70) It is important to bring the achievement s of the Union's Funds to the attention of 
the general public. Citizens have the ri ght to know how the Union's financial 
resources are invested. The responsibil ity to ensure that the appropriate 
information is communicated to the pub lic should lie with both the managing 
authorities and the beneficiaries. To ensu re more efficiency in communication to 
the public at large and st ronger synergies between th e communication activities 
undertaken at the initiative of the Co mmission, the resources allocated to 
communication actions under this Regulation shall also contribute to cover the 
corporate communication of the political pr iorities of the European Union as far 
as they are related to the gene ral objectives of this Regulation. 
(71) For the purpose of ensuring a wide dissemination of information about the 
achievements of the Funds and the role of the Union therein and to inform potential beneficiaries about funding opportunities,  detailed rules about 
information and communication measures, as well as certain technical characteristics of such measures, sh ould be defined in this Regulation. 
(72) With a view to strengthening accessibili ty and transparency of information about 
funding opportunities and project beneficiar ies, in each Member State a single 
website or website portal providing information on all the operational 
programmes, including the lists of oper ations supported under  each operational 
programme, should be made available.  
(73) It is necessary to determine the el ements for modulating the co-financing rate 
from the Funds to operational programme s, in particular, to increase the 
multiplier effect of Union resources. It is  also necessary to establish the maximum 
rates of co-financing by category of regi on in order to ensure respect of the 
principle of co-financing through an appropriate level of  national support. 
(74) It is necessary for Member States to  designate a managing authority, a certifying 
authority and a functionally independent auditing authority for each operational 
programme. To provide flexibility for Me mber States in the set up of control 
systems, it is appropriate to provide the option for the functions of the certifying 
authority to be carried out by the mana ging authority. The Member State should 
also be allowed to designate intermediate  bodies to carry out certain tasks of the 
managing authority or the certifying author ity. The Member State should in that 
case lay down clearly their respec tive responsibilitie s and functions. 
(75) The managing authority bears the ma in responsibility for the effective and 
efficient implementation of the Funds and thus fulfils a substantial number of 
EN 16   EN functions related to programme mana gement and monitoring, financial 
management and controls as well as pr oject selection. Its responsibilities and 
functions should be set out.  
(76) The certifying authority should draw  up and submit to the Commission payment 
applications. It should draw up the a nnual accounts, certifying the completeness, 
accuracy and veracity of the annual account s and that the expenditure entered in 
the accounts complies with applicable Union and national rules. Its responsibilities and functi ons should be set out. 
(77) The audit authority should ensure that  audits are carried out on the management 
and control systems, on an appropriate sample of operations and on the annual 
accounts. Its responsibilities and functions should be set out. 
(78) In order to take acco unt of the specific organisa tion of the management and 
control systems for the ERDF, ESF and CF and the need to ensure a proportionate 
approach, specific provisions are required for the accreditation and withdrawal of 
accreditation of the managing authority  and the certifying authority.  
(79) Without prejudice to the Commission' s powers as regards financial control, 
cooperation between the Member States a nd the Commission in this field should 
be increased and criteria should be es tablished which allow the Commission to 
determine, in the context of its strategy of  control of national systems, the level of 
assurance it should obtain fr om national audit bodies. 
(80) In addition to common rules on financial management, additional provisions are 
necessary for the ERDF, ESF and CF. In particular, with a view to ensuring 
reasonable assurance for the Commission prior to the annual clearance of 
accounts, applications for in terim payments should be reimbursed at a rate of 90 
% of the amount resulting from applying th e co-financing rate  for each priority 
axis as laid down in the decision a dopting the operational programme to the 
eligible expenditure for the priority axis. The outstanding amounts due should be 
paid to the Member States upon annual clearance of accounts, provided that 
reasonable assurance has been attained in regard to the eligibility of expenditure for the year covered by the clearance procedure. 
(81) To ensure that beneficiaries receive  the support as soon  as possible and to 
reinforce the assurance for the Commission it is appropriate to require that payment applications include  only expenditure for wh ich the support has been 
paid to beneficiaries. Pre-financing each year should be foreseen to ensure that 
Member State have sufficient means to operate under such arrangements. Such 
pre-financing should be cleared each y ear with the clearance of accounts. 
(82) To ensure the appropriate application of the general rules on decommitment, the 
rules established for the Funds should de tail how the deadlines  for decommitment 
are established and how the resp ective amounts are calculated.  
(83) It is necessary to sp ecify the detailed pr ocedure for the annual clearance of 
accounts applicable to the Funds to ensure  a clear basis and legal certainty for 
these arrangements. It is important to envisage a limited possibility for the Member State to define a provision in its annual accounts for an amount, which is 
subject to an ongoing procedure with the audit authority.  
EN 17   EN (84) The process of annual clearance of accounts should be accompanied by an annual 
closure of completed operat ions (for the ERDF and th e CF) or expenditure (for 
the ESF). In order to reduce the costs associated with the final closure of 
operational programmes, to reduce the admi nistrative burden for beneficiaries and 
to provide legal certainty, annual closure should be obligatory thereby limiting the period during which the supporting document s need to be maintained and during 
which operations can be audited a nd financial corrections imposed.  
(85) In order to safeguard the Union's fi nancial interests and provide the means to 
ensure effective programme implementa tion, there should be measures allowing 
for the suspension by the Commission of paymen ts at the level of priority axis or 
operational programme. 
(86) It is appropriate to lay down the specific arrangements and procedures for 
financial corrections by Member States and by the Commission in respect of the 
Funds to provide legal certainty for Member States.  
(87) The frequency of audits on operations s hould be proportionate to the extent of the 
Union's support from the Funds. In partic ular, the number of audits s carried out 
should be reduced where the total eligible e xpenditure for an operation does not 
exceed EUR 100 000. Nevertheless, it should be possible to carry out audits at 
any time where there is evid ence of an irregularity or  fraud, or, following closure 
of a completed operation, as part of an a udit sample. In order that the level of 
auditing by the Commission is proportionate  to the risk, the Commission should 
be able to reduce its audit work in rela tion to operational pr ogrammes where there 
are no significant deficiencies or where the audit authority can be relied on. 
(88) In order to supplement and amend certain non-essential elements of this 
Regulation, the power to adopt acts in accordance with Article 290 of the Treaty 
should be delegated to the Commission in  respect of a code of conduct on the 
objectives and criteria to support the implementation of  partnership, the adoption 
of the elements of the
 a Common Strategic Framework related to indicative  
actions of high European added val ue and corresponding principles for 
delivery, and priorities for cooperation , additional rules on the allocation of the 
performance reserve, the definition of the area and population covered by the 
local development strategies, detail ed rules on financial instruments ( ex ante  
assessment, combination of support, eligibility, types of  activities not supported), 
the rules on certain types of financial instruments set up at national, regional, transnational or cross-border level, ru les concerning funding agreements, transfer 
and management of assets, the arrangeme nts for management and control, the 
rules on payment requests, and establishment of a sy stem of capitalisation of 
annual instalments, the de finition of the flat ra te for revenue generating 
operations, the definition of th e flat rate applied to indirect costs for grants based 
on existing methods and corresponding rate s applicable in Un ion policies, the 
responsibilities of Member States c oncerning the procedure for reporting 
irregularities and r ecovery of sums unduly paid, th e modalities of exchange of 
information of operations, the arrangements for the adequate audit trail, the conditions of national audits, the accredi tation criteria for managing authorities 
and certifying authorities, the identificat ion of commonly accep ted data carriers, 
and the criteria for establishing the level of financial correctio n to be applied. The 
Commission should also be empowered to amend , by means of delegated acts,
 
EN 18   EN Annex es I and VI, both of which contain non- essential elements to this 
Regulation, in order to address future adapta tion needs. It is of particular 
importance that the Commission carry out appropriate consu ltations during its 
preparatory work, including at expert level.  
(89) The Commission, when preparing and draw ing up delegated acts, should ensure a 
simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and Council. 
(90) The Commission should be empowered to adopt, by means of implementing acts, 
as regards all CSF Funds, decisions ap proving the Partnership Contracts, 
decisions on the allocation of the perf ormance reserve, decisions suspending 
payments linked to Member States' economic policies, and, in the case of decommitment, decisions to amend d ecisions adopting programmes; and as 
regards the Funds, decisions identifying th e regions and Member States fulfilling 
the Investment for growth and jobs cr iteria, decisions setting out the annual 
breakdown of commitment appropriations to  the Member States, decisions setting 
out the amount to be transferred from each Member State's CF allocation to the 
Connecting Europe Facility, decisions sett ing out the amount to be transferred 
from each Member State's Structural Funds allocation for food for deprived 
people, decisions
 adopting and amending operationa l programmes, decisions on 
major projects, decisions on joint action plans, decisions suspending payments 
and decisions on financial corrections. 
(91) In order to ensure uniform conditions  for the implementation of this Regulation, 
the implementing powers relating to th e methodology concerning climate change 
objectives, standard terms and conditions fo r monitoring of financial instruments, 
the uniform conditions concerning the m onitoring and provision of monitoring 
information for financial instruments, the methodology for the calculation of net 
revenue for revenue-generating projects, the electronic data exchange system 
between the Member State and the Commission, the model of operational 
programme for the Funds, the nomenclature for the categories of  intervention, the 
format for information on major projects and methodology to be used in carrying 
out the cost-benefit analysis on major proj ects, the model for the joint action plan, 
the model of the annual and final impl ementation reports, certain technical 
characteristics of information and public ity measures and related instructions, 
rules on the exchange of informati on between beneficiaries and managing 
authorities, certifying authorities, audit authorities and intermediate bodies, the 
model of the management declaration, the models for the aud it strategy, opinion 
and annual control report and methodol ogy for the sampling method, the rules 
concerning use of data collected duri ng audits, and the model for payment 
applications should be exercised in  accordance with Regulation (EU) No 
182/2011 of the European Parliament a nd of the Council of 16 February 2011 
laying down the rules and general principl es concerning mechanisms for control 
by Member States of the Commission' s exercise of implementing powers8.  
(92) This Regulation replaces Council Re gulation (EC) No 1083/2006 of 11 July 2006 
laying down general provisions on the Eu ropean Regional Development Fund, the 
                                                 
8 OJ L 55, 28.2.2011, p.13.  
EN 19   EN European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 
1260/19999. That Regulation should be therefore repealed. 
(93) Since the objective of this Regulation, namely to reduce disparities between levels 
of development of the various regions a nd the backwardness of  the least favoured 
regions or islands, particular rural areas , areas affected by industrial transition, 
and regions which suffer from severe and permanent natural or demographic 
handicaps, cannot be sufficien tly achieved by Member St ates but 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 Trea ty on European Union. 
In accordance with the principle of proportiona lity, as set out in that Article, this 
Regulation does not go beyond what is ne cessary in order to achieve that 
objective, 
HAVE ADOPTED THIS REGULATION 
PART ONE 
 
SUBJECT-MATTER AND DEFINITIONS 
Article 1  
 
Subject-matter 
This Regulation lays down the common rule s applicable to the European Regional 
Development Fund (ERDF), the European So cial Fund (ESF), the Cohesion Fund (CF), 
the European Agricultural Fund for Rura l Development (EAFRD) and the European 
Maritime and Fisheries Fund (EMFF), whic h are operating under the Common Strategic 
Framework (the 'CSF Funds'). It also define s the provisions necessary to ensure the 
effectiveness of the CSF Funds and their c oordination with one a nother and with other 
Union instruments. 
This Regulation also lays down the general rules governing the ERDF , the ESF (together 
referred to as the 'Structural Funds') and the CF. The Regulation defines the tasks, priority objectives and organisation of the St ructural Funds and the CF (the 'Funds'), the 
criteria for Member States and regions to be  eligible for support from the CSF Funds, the 
financial resources available and th e criteria for their allocation.  
The rules set out in this Regulation apply w ithout prejudice to the provisions laid down 
in Regulation (EU) No […]/2012 of the Eur opean Parliament and of the Council on the 
financing, management and monitori ng of the common agriculture policy
10 (hereinafter 
referred as the 'CAP' Regulation) and to the specific provisions laid down in the 
following Regulations: 
                                                 
9 OJ L 210, 31.7.2006, p. 25.  
10  
EN 20   EN (1) Regulation (EU) No […]/2012 of the Eur opean Parliament and of the Council 
on the European Regional Development Fund and repealing Regulation (EC) No 
1080/200611 (the 'ERDF Regulation');  
(2) Regulation (EU) No […]/2012 of the Eur opean Parliament and of the Council 
on the European Social Fund and repealing Regulation (EC) No 1081/200612 
(the 'ESF Regulation'); 
(3) Regulation (EU) No […]/2012 of the Eur opean Parliament and of the Council 
establishing a Cohesion Fund and re pealing Regulation (EC) No 1084/200613 
(the 'CF Regulation');  
(4) Regulation (EU) No […]/2012 of the Eur opean Parliament and of the Council 
on European territorial cooperation14 (the 'ETC Regulation'); 
(5) Regulation (EU) No […]/2012 of the Eur opean Parliament and of the Council 
on the European Agricultural Fund for Rural Development and repealing Regulation (EC) No 1698/2005
15 (the 'EAFRD Regulation'); and 
(6) Regulation (EU) No […]/2012 of the Eur opean Parliament and of the Council 
on the European Maritime and Fisheries Fund and repealing Regulation (EC) No 
1198/200616 (the 'EMFF Regulation'). 
Article 2  
 
Definitions 
For the purposes of this Regula tion, the definitions on financia l instruments as laid down 
in the Financial Regulation shall apply to  financial instruments supported by the CSF 
Funds, except where otherwise provided in this Regulation. 
In addition, the following definitions shall apply: (1) 'Union strategy for smart, sustainable an d inclusive growth' means the targets 
and shared objectives guiding the action of Member States and the Union set out 
in the Communication of the Commission:  Europe 2020: A strategy for smart, 
sustainable and inclusive growth, and c ontained in the Conclusions adopted by 
the European Council of 17 June 2010 as Annex I (New European Strategy for Jobs and Growth, EU Headline Target s), Council Recommendation of 13 July 
2010 on broad guidelines for the economic policies of the Member States and 
the Union
17 and Council Decision of 21 October 2010 on guidelines for the 
employment policies of the Member States18, and any revision of such targets 
and shared objectives. 
                                                 
11  
12  
13 OJ L , , p. .  
14  
15  
16  
17 OJ L 191, 23.7.2010, p.28.  
18 OJ L 308, 24.11.2010, p.46.  
EN 21   EN (2) 'Common Strategic Framework' means the document translating the objectives 
and targets of the Union strategy for smart,  sustainable and inclusive growth into 
key actions for the CSF Funds, establishi ng for each thematic objective the key 
actions to be supported by each CSF Fund and the mechanis ms for ensuring the 
coherence and consistency of the programming of the CSF Funds with the 
economic and employment policies of the Member States and of the Union;  
elements that provide clear strategic direction to the programming process 
and facilitate sectoral and territoria l coordination of Union intervention 
under the CSF Funds and with ot her relevant Union policies and 
instruments in line with the objectives  and targets of the Union strategy for 
smart, sustainable and inclusive growth;   
(3) 'action' means a type of operation to  be supported by the CSF Funds to 
achieve the objectives of a progamme;  
(4) 'indicative action of high European added value' means an action which can 
be expected to make a significant co ntribution to the achievement of the 
targets and objectives of the Union strategy for smart, sustainable and 
inclusive growth and which shall act as  a reference point in the preparation 
of programmes;  
(5) 'Fund-specific rules' means the provisions  laid down in or established on the 
basis of Part Three of this Regulati on or a specific or generic regulation 
governing one or more of the CSF Fund(s) referred to or listed  in the third sub-
paragraph of Article 1; 
(6) ‘programming’ means the process of  organisation, decision-making and 
allocation of financial resources in seve ral stages intended to implement, on a 
multi-annual basis, the joint action by the Union and the Member States to 
achieve Union strategy for smart, sustainable and inclusive growth; 
(7) ‘programme’ means ‘operational programme’ referred to in Part Three of this 
Regulation and in the EMFF Regulation, and ‘rural development programme’ 
referred to in the EAFRD Regulation; 
(8) ‘priority’ means the ‘priority axis’ referre d to in Part Three of this Regulation 
and the ‘Union priority’ referred to in  the EMFF Regulation and in the EAFRD 
Regulation;  
(9) 'operation' means a project, contract, ac tion or group of projects selected by the 
managing authorities of the progr ammes concerned, or under their 
responsibility, contributing to the objectives of th e priority or prio rities to which 
it relates; in the context of financial inst ruments, the operation is constituted by 
the financial contributions from a progr amme to financial instruments and the 
subsequent financial support provid ed by these financial instruments; 
(10) 'beneficiary' means a public or private body responsible for initiating or 
initiating and implementing operations; in  the context of State aid, the term 
'beneficiary' means the body which receives the aid; in the c ontext of financial 
instruments, the term 'beneficiary' mean s the body that implements the financial 
instrument;  
EN 22   EN (11) 'final recipient' means a legal or natu ral person that receiv es financial support 
from a financial instrument; 
(12) 'State aid' means aid falling under Articl e 107(1) of the Treaty which shall be 
deemed for the purposes of this  Regulation also to include de minimis  aid within 
the meaning of Commission Regulati on (EC) No 1998/2006 of 15 December 
2006 on the application of Articles 87 and 88 of the Treaty to de minimis  aid19, 
Commission Regulation (EC) No 1 535/2007 of 20 December 2007 on the 
application of Articles 87 a nd 88 of the EC Treaty to de minimis  aid in the sector 
of agricultural production20 and Commission Regulation (EC) No 875/2007 of 
24 July 2007 on the application of Artic les 87 and 88 of the EC Treaty to de 
minimis  aid in the fisheries sector  and amending Regulation (EC) 
No 1860/200421;  
(13) 'completed operation' means an operation that has been physically completed or 
fully implemented and in respect of whic h all related payments have been made 
by beneficiaries and the corresponding public  contribution has been paid to the 
beneficiaries;  
(14) ‘public support' means any financial suppor t to the financing of an operation the 
origin of which is the budget of national, regional or local public authorities, the 
budget of the Union related to the CSF Funds, the budget of public law bodies 
or the budget of associations of public  authorities or public law bodies;  
(15) 'public law body' means any body governed by public law in the meaning of 
Article 1(9) of Directive 2004/18/EC of the European Parliament and of the 
Council22 and any European grouping of territorial cooperation (EGTC) 
established in accordance with Regulation (EC) No 1082/2006 of the European Parliament and of the Council
23, regardless of whethe r the relevant national 
implementing provisions consider the EG TC a public law body or a private law 
body; 
(16) 'document' means a paper or an electroni c medium bearing information relevant 
in the framework of this Regulation; 
(17) 'intermediate body' means any public or  private body which acts under the 
responsibility of a managing or certifying authority, or which carries out duties 
on behalf of such an authority vis-à-vi s beneficiaries' implementing operations; 
(18) ‘local development strategy’ means a cohe rent set of operations to meet local 
objectives and needs, which contributes to meeting the Union strategy for smart, sustainable and inclusive growth and whic h is implemented in partnership at the 
appropriate level; 
(19) ‘rolling closure’ means closure of operati ons as a result of the annual clearance 
of account exercise and before the general closure of the programme; 
                                                
 
19 OJ L 379, 28.12.2006, p. 5.  
20 OJ L 337, 21.12.2007, p. 35.  
21 OJ L 193, 25.7.2007, p. 6.  
22 OJ L 134, 30.4.2004, p. 114.  
23 OJ L 210, 31.7.2006, p. 19.  
EN 23   EN (20) 'Partnership Contract' means the docume nt prepared by the Member State with 
the involvement of partners in line w ith the multi-level governance approach, 
which sets out the Member State's stra tegy, priorities and arrangements for using 
the CSF Funds in an effective and effici ent way to pursue the Union strategy for 
smart, sustainable and inclusive growth, and which is approved by the Commission following assessment and di alogue with the Member State;  
(21) 'category of regions' means the categoris ation of regions as 'less developed 
regions', 'transition regions' or 'more developed regions' according to Article 
82(2); 
(22) 'request for payment' means a payment a pplication or declaration of expenditure 
submitted by the Member State to the Commission; 
(23) 'EIB' means the European Investment Bank, the European Investment Fund or 
any subsidiary of the European Investment Bank; 
(24) 'SME' means a micro, small or medium sized enterprise in the meaning of 
Commission Recommendation 2003/361/EC , or subsequent amendments 
thereof; 
(25) 'accounting year, means, for the purposes of Part Three, the period from 1 July 
to 30 June, except for the first accounting year, in respect of which it means the 
period from the start date for eligibi lity of expenditure until 30 June 2015. The 
final accounting year shall be from 1 July 2022 to 30 June 2023; 
(26) 'financial year, means, for the purposes of  Part Three, the period from 1 January 
to 31 December. 
PART TWO 
 
COMMON PROVISIONS APPLICABLE TO CSF FUNDS 
TITLE I 
 
Principles of Union s upport for the CSF Funds 
Article 3 
 
Scope 
The rules set out in this Part shall apply without pr ejudice to the provis ions laid down in 
Part Three. 
EN 24   EN Article 4 
 
General principles 
1. The CSF Funds shall provide support, through multi-annual programmes, which 
complements national, regional and local  intervention, to deliver the Union 
strategy for smart, sustainable and in clusive growth, taking account of the 
Integrated Guidelines, the country-s pecific recommendations under Article 
121(2) of the Treaty and the relevant Council reco mmendations adopted under 
148(4) of the Treaty. 
2. The Commission and the Member States shall ensure that support from the CSF 
Funds is consistent with the polici es and priorities of the Union and 
complementary to other instruments of the Union. 
3. Support from the CSF Funds shall be im plemented in close cooperation between 
the Commission and the Member States.  
4 Member States and the bodies designate d by them for that purpose shall be 
responsible for implementing programme s and carrying out their tasks under 
this Regulation and the Fund-sp ecific rules at the appropria te territorial level, in 
accordance with the institutional, legal an d financial framework of the Member 
State and subject to compliance with this Regulation and the Fund-specific 
rules. 
5. Arrangements for the implementation and use of the CSF Funds, and in 
particular the financial and admini strative resources required for the 
implementation of the CSF Funds, in re lation to the reporting, evaluation, 
management and control shall take into  account the principle of proportionality 
having regard to the level of support allocated. 
6. In accordance with their respective re sponsibilities, the Commission and the 
Member States shall ensure coordina tion among the CSF Funds, and with other 
Union policies and instruments, including those in the framework of the Union's external action.  
7. The part of the Union b udget allocated to the CSF F unds shall be implemented 
within the framework of shared manage ment between the Member States and 
the Commission, in accordance with Artic le 53(b) of the Financial Regulation, 
with the exception of the amount of the CF transferred to the Connecting Europe 
Facility referred to in Artic le 84(4) and innovative actions at the initiative of the 
Commission under Article 9 of the ERDF  Regulation, and technical assistance 
at the initiative of the Commission.  
8. The Commission and the Member States  shall apply the principle of sound 
financial management in accordance with Article 27 of the Financial Regulation.  
9. The Commission and the Member States sh all ensure the effectiveness of the 
CSF Funds, in particular through mo nitoring, reporting and evaluation.  
EN 25   EN 10. The Commission and the Member States sh all carry out their respective roles in 
relation to the CSF Funds with the aim of  reducing the administrative burden for 
beneficiaries. 
Article 5  
 
Partnership and multi-level governance 
1. For the Partnership Contract and each  programme respectively, a Member State 
shall organise a partnership with the following partners: 
(a) competent regional, local, urba n and other public authorities; 
(b) economic and social partners; and 
(c) bodies representing civil society, in cluding environmental partners, non-
governmental organisations, and bodies responsible for promoting equality 
and non-discrimination. 
2. In accordance with the multi-level govern ance approach, the partners shall be 
involved by Member States in the prep aration of Partnership Contracts and 
progress reports and in the prepar ation, implementatio n, monitoring and 
evaluation of programmes. The partners  shall participate in the monitoring 
committees for programmes. 
3. The Commission shall be empowered to adopt delegated acts in accordance with 
Article 142 to provide for a European c ode of conduct that lays down objectives 
and criteria to support the implementation of partnership and to facilitate the 
sharing of information, experience, results and good practices among Member 
States.  
4. At least once a year, for each CSF Fund, the Commission shall consult the 
organisations which represent the partners  at Union level on the implementation 
of support from the CSF Funds.  
Article 6  
 
Compliance with Union and national law 
Operations financed by the CSF Funds shall comply with applicab le Union and national 
law.  
Article 7 
 
Promotion of equality between men and women and non-discrimination 
The Member States and the Commission sha ll ensure that equali ty between men and 
women and the integration of gender perspe ctive is promoted in  the preparation and 
implementation of programmes. 
EN 26   EN The Member States and the Commission shal l take appropriate steps to prevent any 
discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation during the preparati on and implementation of programmes.  
Article 8  
 
Sustainable development 
The objectives of the CSF Funds shall be pursued in the framework of sustainable 
development and the Union's promotion of  the aim of protecting and improving the 
environment, as set out in Article 11 of the Treaty, taking into account the polluter pays 
principle.  
The Member States and the Commission sha ll ensure that environmental protection 
requirements, resource efficiency, climate change mitigation and adaptation, disaster 
resilience and risk preventio n and management are promot ed in the preparation and 
implementation of Partnership Contracts and programmes. Member States shall provide 
information on the support for climate cha nge objectives using the methodology adopted 
by the Commission. The Commission shall adopt this methodology by means of an 
implementing act. The implementing act shall be adopted in accordance with the examination procedure refe rred to in Article 143(3). 
TITLE II  
 
STRATEGIC APPROACH 
CHAPTER I 
 
Thematic objectives for the CS F Funds and Common Strategic 
Framework  
Article 9 
 
Thematic objectives 
Each CSF Fund shall support the following thematic objectives in accordance with its 
mission in order to contribute to the Union strategy for smar t, sustainable and inclusive 
growth:  
(1) strengthening research, technologi cal development and innovation; 
(2) enhancing access to, and use and quality of, information and communication 
technologies; 
EN 27   EN (3) enhancing the competitiveness of small and medium-sized enterprises, the 
agricultural sector (for the EAFRD) and th e fisheries and aquacu lture sector (for 
the EMFF); 
(4) supporting the shift towards a low-carbon economy in all sectors; 
(5) promoting climate change adaptatio n, risk prevention and management; 
(6) protecting the environment and promoting resource efficiency; 
(7) promoting sustainable transport and removing bottlenecks in key network 
infrastructures; 
(8) promoting employment and supporting labour mobility; 
(9) promoting social inclusi on and combating poverty; 
(10) investing in education, sk ills and lifelong learning; 
(11) enhancing institutional capacity and an efficient public administration. 
Thematic objectives shall be translated into priorities specific to each CSF Fund and set 
out in the Fund-specific rules.  
Article 10  
 
Common Strategic Framework  
In order to promote the harmonious, balanced and sustainable development of the Union, 
a Common Strategic Framework shall provide clear strategic direction to the 
programming process and facilitate sectoral  and territorial coordination of Union 
intervention under the CSF Funds and wi th other relevant Union policies and 
instruments in line with the objectives a nd targets of the Union strategy for smart, 
sustainable and inclusive growth  translate the objectives and targets of the Union 
strategy for smart, su stainable and inclusive growth into key actions for the CSF Funds .  
Article 11 
 
Content  
The Common Strategic Framework shall establish: 
(fa) mechanisms for ensuring  means to achieve  coherence and consistency of the 
programming of the CSF Funds  with the country-specific recommendations under Article 
121(2) of the Treaty and the relevant Counc il recommendations a dopted under 148(4) of 
the Treaty ; 
(eb) coordination mechanisms among the CSF Funds, and with other relevant Union 
policies and instruments, including ex ternal instruments for cooperation; 
EN 28   EN (c) horizontal principles and cross-cutting  policy objectives for the implementation 
of the CSF Funds; 
(bd) arrangements to address the key territorial challenges and the steps to be 
taken to encourage an integrated approach that reflects the role of for urban, rural, 
coastal and fisheries areas, as well as the specific challenges  for areas with particular 
territorial features referred to in Article s 174 and 349 of the Treaty, to be addressed by 
the CSF Funds ; 
(ae) for each thematic objective, the key  indicative  actions  of high European added 
value  to be supported by each CSF Fund and the corresponding principles for 
delivery ;  
(df) priorit iesy areas  for cooperation activities  for each of  the CSF Funds, where 
appropriate, taking account of macro- regional and sea basin strategies; . 
Article 12  
 
Adoption and review 
The elements of  Commission shall be empowered to adopt a delegated act in accordance 
with Article 142 on  the Common Strategic Framework related to coherence and 
consistency with the economic policies of Member States and the Union, the 
coordination mechanisms among the CS F Funds and with other relevant Union 
policies and instruments, the horizont al principles and cross-cutting policy 
objectives and the arrangements to address territorial challenges are laid down in 
Annex I within 3 months of the adoption of this Regulation .  
The Commission shall be empowered to ad opt delegated acts in accordance with 
Article 142 laying down the specific elemen ts of the Common Strategic Framework 
related to the establishment of indicative actions of high European added value and 
corresponding principles for delivery for each  thematic objective and of priorities 
for cooperation.  
Where there are major changes in the Union strategy for smart, sustainable and inclusive 
growth, the Commi ssion shall review  the Common Strategic Framework  and, where 
appropriate, adopt by means of  delegated act s in accordance with Article 142, 
amendments to Annex I a revised Common Strategic Framework .  
Within 6 months of adoption of a revision to the  revised Common Strategic Framework, 
Member States shall propose amendments, wher e necessary, to their Partnership Contract 
and programmes to ensure their consiste ncy with the revised Common Strategic 
Framework. 
EN 29   EN  
CHAPTER II 
 
Partnership Contract 
Article 13  
 
Preparation of the Partnership Contract 
1. Each Member State shall prepare a Part nership Contract fo r the period from 
1 January 2014 to 31 December 2020.  
2. The Partnership Contract shall be dr awn up by Member States in cooperation 
with the partners referred to in Article 5. The Partnership Contract shall be prepared in dialogue with the Commission.  
3. The Partnership Contract shall cover all support from the CSF Funds in the 
Member State concerned. 
4. Each Member State shall transmit its Pa rtnership Contract to the Commission 
within 3 months of the adoption of  the Common Strategic Framework. 
Article 14 
 
Content of the Partnership Contract  
 The Partnership Contract shall set out: 
(a) arrangements to ensure alignment with the Union strategy for smart, 
sustainable and inclus ive growth, including: 
(i) an analysis of disparities and development needs with reference to 
the thematic objectives ,
 and key actions defined in , the Common 
Strategic Framework and the targets set in the country-specific recommendations under Article 121(2) of the Treaty and the relevant Council recommendations adopted under Article 148(4) of the Treaty; 
(ii) a summary analysis of the ex ante  evaluations of the programmes 
justifying the selection of the th ematic objectives and the indicative 
allocations of the CSF Funds; 
(iii) for each thematic objective, a summary of the main results expected 
for each of the CSF Funds; 
(iv) the indicative allocation of  support by the Union by thematic 
objective at national level for each of the CSF Funds, as well as the 
total indicative amount of support foreseen for climate change 
objectives; 
EN 30   EN (v) the main priority areas for cooperation, taking account, where 
appropriate, of macro-regiona l and sea basin strategies; 
(vi) horizontal principles and policy objectives for the implementation of 
the CSF Funds; 
(vii) the list of the programmes unde r the ERDF, the ESF and the CF, 
except those under the European terr itorial cooperation goal, and of 
the programmes of the EAFRD and the EMFF, with the respective 
indicative allocations by CSF Fund and by year; 
(b) an integrated approach to territo rial development supported by the CSF 
Funds setting out: 
(i) the mechanisms at national and regional level that ensure 
coordination between the CSF Fund s and other Union and national 
funding instruments and with the EIB; 
(ii) the arrangements to ensure an in tegrated approach to the use of the 
CSF Funds for the territorial deve lopment of urban, rural, coastal 
and fisheries areas and ar eas with particular territorial features, in 
particular the implementation arrangements for Articles 28, 29 and 99 accompanied, where appropriate, by a list of the cities to 
participate in the urban development platform referred to in Article 8 
of the ERDF Regulation; 
(c) an integrated approach to address the specific needs of geographical areas 
most affected by poverty or of ta rget groups at highest risk of 
discrimination or exclusion, with special regard to marginalised 
communities, where appropriate, including the indicative financial allocation for the relevant CSF Funds; 
(d) arrangements to ensure effective implementation, including: 
(i) a consolidated table of mile stones and targets established in 
programmes for the performance framework referred to in Article 19(1), together with the met hodology and mechanism to ensure 
consistency across programmes and CSF Funds;  
(ii) a summary of the assessment of the fulfilment of ex ante  
conditionalities and of the actions to be taken at national and regional level, and the timetable for their implementation, where ex ant e conditionalities are not fulfilled; 
(iii) the information required for ex ante  verification of compliance with 
the rules on additionality as they are defined in Part Three of this Regulation; 
(iv) the actions taken to  involve the partners and their role in the 
preparation of the Partnership C ontract and the progress report as 
defined in Article 46 of this Regulation; 
EN 31   EN (e) arrangements to ensure efficien t implementation of the CSF Funds, 
including: 
(i) an assessment of whether ther e is a need to reinforce the 
administrative capacity of the aut horities and, where appropriate, 
beneficiaries, and actions to  be taken for this purpose; 
(ii) a summary of the actions pla nned and correspondi ng targets in the 
programmes to achieve a reduction in  the administrative burden for 
beneficiaries; 
(iii) an assessment of the existing systems for electronic data exchange, 
and the actions planned to perm it all exchanges of information 
between beneficiaries and authorit ies responsible for management 
and control of programmes to be ca rried out solely by electronic data 
exchange. 
Article 15  
 
Adoption and amendment of the Partnership Contract 
1. The Commission shall assess the consiste ncy of the Partnership Contract with 
this Regulation, with the Common St rategic Framework, and the country-
specific recommendations unde r Article 121(2) of the Treaty and the Council 
recommendations adopted under 148(4) of the Treaty, taking account of the ex ante evaluations of the programmes, and sh all make observations within three 
months of the date of submission of th e Partnership Contract. The Member State 
shall provide all necessary additional information and, where appropriate, shall 
revise the Partnership Contract.  
2. The Commission shall adopt a deci sion, by means of implementing acts, 
approving the Partnership Contract no later than six months after its submission 
by the Member State, provided that a ny observations made by the Commission 
have been satisfactorily ta ken into account. The Partne rship Contract shall not 
enter into force before 1 January 2014. 
3. Where a Member State proposes an amen dment to the Partne rship Contract, the 
Commission shall carry out an assessme nt in accordance with paragraph 1 and, 
where appropriate, shall adopt a decision, by mean s of implementing acts, 
approving the amendment. 
EN 32   EN CHAPTER III 
 
Thematic concentration, ex ante conditionalities and 
performance review 
Article 16 
 
Thematic concentration  
Member States shall concentrat e support, in accordance with  the Fund-specific rules, on 
actions bringing the greatest added value in relation to the Union strategy for smart, sustainable and inclusive grow th, addressing the challenges identified in the country-
specific recommendations under Article 121(2)  of the Treaty and the relevant Council 
recommendations adopted under 148(4) of the Treaty, and taking into account national 
and regional needs.  
Article 17 
 
Ex ante  conditionalities 
1. Ex ante  conditionalities shall be defined for each CSF Fund in the Fund-specific 
rules.  
2. Member States shall assess whether the applicable ex ante  conditionalities are 
fulfilled. 
3. Where ex ante  conditionalities are not fulfilled at the date of transmission of the 
Partnership Contract, Member  States shall set out in the Partnership Contract a 
summary of the actions to be taken at national or regional level and the 
timetable for their implementation, to ensu re their fulfilment not later than two 
years after the adoption of the Partne rship Contract or by 31 December 2016, 
whichever is earlier. 
4. Member States shall set out the detailed actions relating to the fulfilment of 
ex ant e conditionalities, including the timetab le for their implementation, in the 
relevant programmes. 
5. The Commission shall assess the information provided on the fulfilment of 
ex ante  conditionalities in the framework of  its assessment of the Partnership 
Contract and programmes. It may d ecide, when adopting a programme, to 
suspend all or part of interim payments to the programme pending the satisfactory completion of actions to fulfil an ex ante  conditionality. The failure 
to complete actions to fulfil an ex ante  conditionality by the deadline set out in 
the programme shall constitute a basis for suspending payments by the Commission.  
6. Paragraphs 1 to 5 shall not apply to programmes under the European territorial 
cooperation goal. 
EN 33   EN Article 18  
 
Performance reserve  
5% of the resources allocated to each CSF Fund and Member State, with the exception of 
resources allocated to the European territo rial cooperation goal and to Title V of the 
EMFF Regulation, shall constitute a performan ce reserve to be allo cated in accordance 
with Article 20.  
Article 19 
 
Performance review 
1. The Commission, in cooperation with the Member States, shall undertake a 
review of the performance of the progr ammes in each Member State in 2017 and 
2019, with reference to the performance framework se t out in the respective 
Partnership Contract a nd programmes. The method for establishing the 
performance framework is set out in Annex I I. 
2. The review shall examine the achievement  of the milestones  of the programmes 
at the level of priorities, on the basis of the information and the assessments 
presented in the progress reports submitted by the Member States in the years 
2017 and 2019. 
Article 20 
 
Allocation of performance reserve  
1. Where the review of performance undert aken in 2017 reveals that a priority 
within a programme has not attained its milestones set for the year 2016, the Commission shall make recommendations  to the Member State concerned. 
2. On the basis of the review undertak en in 2019, the Commission shall adopt a 
decision, by means of implementing acts,  to determine for each CSF Fund and 
Member State the programmes and prio rities which have attained their 
milestones. The Member State shall propos e the attribution of the performance 
reserve for the programmes and priorities  set out in that Commission decision. 
The Commission shall approve the amendm ent of the programmes concerned in 
accordance with Article 26. Where a Member State fails to submit the 
information in accordance with Article 46(2) and (3), the performance reserve for the programmes or the priorities concerned shall not be allocated.  
3. Where there is evidence resulting from a performance review that a priority has 
failed to achieve the milestones set out in the performance framework, the Commission may suspend all or part of an  interim payment of a priority of a 
programme in accordance with the proce dure laid down in Fund-specific rules. 
4. Where the Commission, based on the exam ination of the final implementation 
report of the programme, establishes a seri ous failure to achieve the targets set 
out in the performance framework, it may apply financial corrections in respect 
EN 34   EN of the priorities concerned in acco rdance with Fund-specific rules. The 
Commission shall be empowered to adopt  delegated acts in  accordance with 
Article 142 to establish criteria and th e methodology for determining the level of 
financial correction to be applied. .  
5. Paragraph 2 shall not apply to progr ammes under the European territorial 
cooperation goal and to Title V of the EMFF Regulation. 
CHAPTER IV 
 
Macroeconomic conditionalities 
Article 21 
 
Conditionality linked to the coordinati on of Member States' economic policies  
1. The Commission may request a Memb er State to review and propose 
amendments to its Partnership Contract and the relevant programmes, where this 
is necessary: 
(a) to support the implementation of a Council recommendation, addressed to 
the Member State concerned and adopt ed in accordance with Articles 
121(2) and/or 148(4) of the Treaty, or to support the implementation of 
measures addressed to the Member  State concerned and adopted in 
accordance with Article 136(1) of the Treaty;  
(b) to support the implementation of a Council recommendation addressed to 
the Member State concerned and a dopted in accordance with Article 
126(7) of the Treaty;  
(c) to support the implementation of a Council recommendation addressed to 
the Member State concerned and adopted in accordance with Article 7(2) of Regulation (EU) No …/2011 [on the prevention and correction of macroeconomic imbalances], provided that these amendments are deemed necessary to help correct the macroeconomic imbalances; or 
(d) to maximise the growth and competitiveness impact of the available CSF 
Funds pursuant to paragraph 4, if a Member State meets one of the following conditions: 
(i) Union financial assistance is made available to it under Council 
Regulation (EU) No 407/2010; 
(ii) medium-term financial assistan ce is made available to it in 
accordance with Council Regulation (EC) No 332/2002
24; 
                                                 
24 OJ L 53, 23.2.2002, p. 1. 
EN 35   EN (iii) financial assistance in the form of  an ESM loan is made available to 
it in accordance with the Treaty esta blishing the European Stability 
Mechanism. 
2. The Member State shall submit a pr oposal for amending the Partnership 
Contract and the relevant programmes within one month. If necessary, the 
Commission shall make observations with in one month from the submission of 
the amendments, in which case the Memb er State shall re-submit its proposal 
within one month. 
3. Where the Commission has not made obs ervations or where its observations 
have been satisfactorily taken into  account, the Commission shall adopt a 
decision approving the amendments to the Partnership Contract and the relevant 
programmes without undue delay. 
4. By derogation to paragraph 1, where fina ncial assistance is made available to a 
Member State in accordance with paragraph 1(d) and is linked to an adjustment 
programme, the Commission may without any proposal from the Member State 
amend the Partnership Contract and the programmes with a view to maximising 
the growth and competitiveness impact of  the available CSF Funds. To ensure 
effective implementation of the Partnership Contract and the relevant 
programmes, the Commission shall become involved in their management as 
detailed in the adjustment programm e or the Memorandum of Understanding 
signed with the Member State concerned. 
5. Where the Member State fails to res pond to the Commission's request referred 
to in paragraph 1 or does not reply sa tisfactorily within one month to the 
observations of the Commission referred to in paragraph 2, the Commission 
may, within three months following its observations, adopt a decision, by means 
of implementing acts, suspending part or all of the payments for the programmes 
concerned. 
6. The Commission shall suspend, by means of  implementing acts, part or all of 
the payments and commitments for the programmes concerned where:  
(a) the Council decides that the Member  State does not comply with the 
specific measures set out by the Counc il in accordance w ith Article 136(1) 
of the Treaty;  
(b) the Council decides in acco rdance with Article 126( 8) or Article 126(11) 
of the Treaty that the Member Stat e concerned has not taken effective 
action to correct its excessive deficit;  
(c) the Council concludes in accordance with  Article 8(3) of Regulation (EU) 
No […]/2011 [on the prevention a nd correction of macroeconomic 
imbalances] that, on two successive instances, the Member State has not submitted a sufficient corrective action plan or the Council adopts a decision declaring non-compliance in accordance with Article 10(4) of that Regulation;  
(d) the Commission concludes that the Me mber State has not taken measures 
to implement the adjustment programme  referred to in Council Regulation 
EN 36   EN (EU) No 407/2010 or Council Regulat ion (EC) No 332/2002 and as a 
consequence decides not to authorise the disbursement of the financial 
assistance granted to this Member State; or 
(e) the Board of Directors of the European stability mechanism concludes that 
the conditionality attached  to an ESM financial assistance in the form of 
an ESM loan to the concerned Me mber State was not met and as a 
consequence decides not to disburse the stability support granted to it. 
7. When deciding to suspend part or all of the payments or commitments in 
accordance with paragraphs 5 and 6 resp ectively, the Commission shall ensure 
that the suspension is proportionate a nd effective, taking into account the 
economic and social circumstances of th e Member State concerned, and respects 
equality of treatment between Member Stat es, in particular with regard to the 
impact of the suspension on the economy of the Member State concerned. 
8. The Commission shall without delay li ft the suspension of payments and 
commitments where the Member State has proposed amendments to the Partnership Contract a nd the relevant programmes as requested by the 
Commission, which the Co mmission has approved and, where applicable: 
(a) the Council has decided that the Memb er State complies with the specific 
measures set out by the Council in acco rdance with Article 136(1) of the 
Treaty; 
(b) the excessive deficit procedure is he ld in abeyance in accordance with 
Article 9 of Regulation (EC) No 1467/97 or the Council has decided in 
accordance with Article 126(12) of the Treaty to abrogate the decision on 
the existence of an excessive deficit;  
(c) the Council has endorsed the corrective action plan submitted by the 
concerned Member State in accordance with Article 8(2) of Regulation 
(EU) No […] [EIP Regulation] or th e excessive imbalance procedure is 
placed in a position of abeyance in accord ance with Article 10(5) of that 
Regulation or the Council has closed the excessive imbalance procedure in accordance with Article 11 of that Regulation;  
(d) the Commission has concluded that the Member State has taken measures 
to implement the adjustment programme  referred to in Council Regulation 
(EU) No 407/2010 or Council Regulat ion (EC) No 332/2002 and as a 
consequence has authorised the disbur sement of the financial assistance 
granted to this Member State; or 
(e) the Board of Directors of the European stability mechanism has concluded 
that the conditionality attached to a fi nancial assistance in the form of an 
ESM loan to the concerned Member State is met and as a consequence has decided to disburse the stability support granted to it. 
At the same time, the Council shall deci de, on a proposal from  the Commission, 
to re-budget the suspended commitments  in accordance with Article 8 of 
Council Regulation (EU) No […] layi ng down the multiannual financial 
framework for the years 2014 to 2020. 
EN 37   EN Article 22 
 
Increase in payments for Member State wi th temporary budgetary difficulties  
1. On the request of a Member State, inte rim payments and payments of the final 
balance may be increased by 10 percenta ge points above th e co-financing rate 
applicable to each priority for the ERDF , ESF and CF or to each measure for the 
EAFRD and the EMFF. The increased rate, which may not exceed 100%, shall apply to requests for payment relating to the accounting period in which the Member State has submitted its reques t and in subsequent accounting periods 
during which the Member State meets one of the following conditions: 
(a) where the Member State concerned has adopted the euro, it receives 
macro-financial assistance from th e Union under Council Regulation (EU) 
No 407/2010
25; 
(b) where the Member State concerned has not adopted the euro, it receives 
medium-term financial assistance in  accordance with Council Regulation 
(EC) No 332/200226; 
(c) financial assistance is made available to it in accordance with the Treaty 
establishing the European Stability  Mechanism signed on 11 July 2011. 
The first sub-paragraph shall not apply to programmes under the ETC 
Regulation. 
2. Notwithstanding paragraph 1, Union support through interim payments and 
payments of the final balance shall not be higher than the public support and the 
maximum amount of support from the CSF Funds for each priority for the ERDF, ESF and CF, or for each measure for the EAFRD and the EMFF, as laid 
down in the decision of the Comm ission approving the programme. 
                                                
 
25 OJ L 118, 12.5.2010, p.1.  
26 OJ L 53, 23.2.2002, p. 1.  
EN 38   EN TITLE III  
 
PROGRAMMING 
CHAPTER I 
 
General provisions on the CSF Funds 
Article 23 
 
Preparation of programmes 
1. The CSF Funds shall be implemented through programmes in accordance with 
the Partnership Contract. Each programme  shall cover the period from 1 January 
2014 to 31 December 2020. 
2. Programmes shall be drawn up by Member St ates or any authority designated by 
them, in cooperation with the partners.  
3. Programmes shall be submitted by the Memb er States at the same time as the 
Partnership Contract, with the excepti on of European terr itorial cooperation 
programmes, which shall be submitted with in six months of the approval of the 
Common Strategic Framework. All program mes shall be accompanied by the ex 
ante evaluation as set out in Article 48.  
Article 24 
 
Content of programmes  
1. Each programme shall set out a strategy for the programme's contribution to the 
Union strategy for smart, sustainable and inclusive growth consistent with the 
Common Strategic Framework and Partners hip Contract. Each programme shall 
include the arrangements to ensure effective, efficient and coordinated implementation of the CSF Funds and actions to achieve  a reduction of 
administrative burden for beneficiaries. 
2. Each programme shall define priorities setting out specific objectives, financial 
appropriations of support from the C SF Funds and corresponding national co-
financing.  
3. Each priority shall se t out indicators to asse ss progress of programme 
implementation towards achievement of obj ectives as the basis for monitoring, 
evaluation and review of perf ormance. These shall include: 
(a) financial indicators relating to expenditure allocated; 
(b) output indicators relating to  the operations supported; 
EN 39   EN (c) result indicators relating to the priority. 
For each CSF Fund, the Fund-specific rules shall set out common indicators and 
may provide for programme-specific indicators. 
4. Each programme, except those which c over exclusively technical assistance, 
shall include a description of the actions to take into account the principles set out in Articles 7 and 8. 
5. Each programme, except those where t echnical assistance is undertaken under a 
specific programme, shall set out the indi cative amount of support to be used for 
climate change objectives. 
6. Member States shall draft the programme in accordance with the Fund-specific 
rules.  
Article 25 
The procedure for adoption of programmes 
1. The Commission shall assess the cons istency of programmes with this 
Regulation, the Fund-specific ru les, their effective cont ribution to the thematic 
objectives and the Union priorities specific to each CSF Fund, the Common 
Strategic Framework, the Partners hip Contract, the country-specific 
recommendations under Article 121(2)  of the Treaty and the Council 
recommendations adopted under 148(4) of the Treaty, taking account of the ex 
ante evaluation. The assessment shall address,  in particular, the adequacy of the 
programme strategy, the corresponding obj ectives, indicators, targets and the 
allocation of budgetary resources.  
2. The Commission shall make observations w ithin three months of the date of 
submission of the programme. The Me mber State shall provide to the 
Commission all necessary additional info rmation and, where appropriate, revise 
the proposed programme. 
3. In accordance with the Fund-specific ru les, the Commission shall approve each 
programme no later than six months following its formal submission by the Member State(s), provided that any obs ervations made by the Commission have 
been satisfactorily taken in to account, but not before 1 January 2014 or before 
adoption by the Commission of a decision approving the Partnership Contract. 
Article 26 
 
Amendment of programmes 
1. Requests for amendment of programmes submitted by a Member State shall be 
duly substantiated and shall in particular  set out the expected impact of the 
changes to the programme on achie ving the Union strategy for smart, 
sustainable and inclusive growth and th e specific objectives defined in the 
programme, taking account of the Co mmon Strategic Framework and the 
EN 40   EN Partnership Contract. They shall be a ccompanied by the revised programme and, 
where appropriate, a revi sed Partnership Contract. 
In the case of amendment of program mes under the European territorial 
cooperation goal, the relevant Partners hip Contract shall not be amended. 
2. The Commission shall assess the information provided in accordance with 
paragraph 1, taking account of the justific ation provided by the Member State. 
The Commission may make observations a nd the Member State shall provide to 
the Commission all necessary additional information. In accordance with Fund-
specific rules, the Commission shall a pprove requests for amendment of a 
programme no later than five months after their formal submission by the 
Member State provided that any obse rvations made by the Commission have 
been satisfactorily taken into account. The Commission shall, where necessary, amend at the same time the decision ap proving the Partners hip Contract in 
accordance with Article 15(3). 
Article 27 
 
Participation of the European Investment Bank 
1. The EIB may, at the request of Member St ates, participate in the preparation of 
the Partnership Contract, as well as in activities relating to the preparation of 
operations, in particular major projects, financial instruments and public-private 
partnerships. 
2. The Commission may consult the EIB befo re the adoption of the Partnership 
Contract or the programmes. 
3. The Commission may request the EIB to  examine the technical quality and 
economic and financial viability of major projects and to assist it as regards the financial instruments to be  implemented or developed. 
4. The Commission, in implementing the pr ovisions of this Regulation, may award 
grants or service contracts to the EI B covering initiatives implemented on a 
multi-annual basis. The commitment of the Union budget contributions in 
respect of these grants or service contracts shall be effected annually. 
 
 
CHAPTER II 
Community-led local development  
Article 28 
 
Community-led local development  
1. Community-led local development, which is designated as LEADER local 
development in relation to the EAFRD, shall be: 
EN 41   EN (a) focused on specific sub-re gional territories;  
(b) community-led, by local action groups composed of representatives of 
public and private local socio-economic interests, where at the decision-making level neither the public sector  nor any single interest group shall 
represent more than 49 % of the voting rights; 
(c) carried out through integrated a nd multi-sectoral area-based local 
development strategies;  
(d) designed taking into consideration lo cal needs and potential, and include 
innovative features in the local context, networking and, where 
appropriate, cooperation. 
2. Support from the CSF Funds to local development shall be consistent and 
coordinated between the CSF Funds. This  shall be ensured inter alia through 
coordinated capacity-build ing, selection, approva l and funding of local 
development strategies and local development groups. 
3. Where the selection committee for the lo cal development strategies set up under 
Article 29(3) determines that the implementation of the local development strategy selected requires support from more than one Fund, a lead Fund may be 
designated. 
4. Where a lead Fund is designated, the running costs, animation and networking 
activities for the local development strategy shall be financed from the lead Fund only.  
5. Local development supported by the CSF Funds shall be carried out under one 
or more priorities of the programme. 
Article 29 
 
Local development strategies 
1. A local development strategy shall contain at least the following elements: 
(a) the definition of the area and popul ation covered by the strategy;  
(b) an analysis of the development need s and potential of th e area, including 
an analysis of strengths, weakne sses, opportunities and threats; 
(c) a description of the st rategy and its objectives , a description of the 
integrated and innovative character of the strategy and a hierarchy of 
objectives, including clear and measurable  targets for outputs or results. 
The strategy shall be coherent with  the relevant programmes of all the 
CSF Funds involved; 
(d) a description of the process of comm unity involvement in the development 
of the strategy; 
(e) an action plan demonstrating how objec tives are translated into actions; 
EN 42   EN (f) a description of the management a nd monitoring arrangements of the 
strategy, demonstrating the capacity  of the local action group to 
implement the strategy and a descrip tion of specific arrangements for 
evaluation; 
(g) the financial plan of the strategy, in cluding the planned allocation of each 
of the CSF Funds. 
2. Member States shall define criteria for the selection of local development 
strategies. The Fund-specific rule s may set out sel ection criteria. 
3. Local development strategies shall be selected by a committee set up for this 
purpose by the relevant managing au thorities of the programmes. 
4. The selection and approval of all local development strategies shall be 
completed by 31 December 2015 at the latest. 
5. The decision to approve a local deve lopment strategy by the managing authority 
shall set out the allocations of each CSF Fund. It shall also set out the roles of 
the authorities responsible for the imple mentation of the relevant programmes 
for all implementation tasks relating to the strategy.  
6. The Commission shall be empowered to adopt delegated acts in accordance with 
Article 142 concerning the definition of  the area and population covered by the 
strategy referred in paragraph 1(a). 
Article 30 
 
Local action groups 
1. Local action groups shall design and implement the local development 
strategies.  
Member States shall define the respectiv e roles of the local action group and the 
authorities responsible for the implemen tation of the relevant programmes, for 
all implementation tasks relating to the strategy. 
2. The managing authority shall ensure that  the local action groups either select 
one partner within the group as a lead partner in administrative and financial 
matters, or come together in a le gally constituted common structure. 
3. The tasks of local action groups  shall include the following: 
(a) building the capacity of local actors to develop and implement operations; 
(b) drawing up a non-discriminatory and tr ansparent selection procedure and 
criteria for the selection of operations , which avoid conflicts of interest, 
that shall ensure that at least 50% of  the votes in selection decisions are 
from the non public sector partners, providing for the possibility of appeal against selection decisions and allo wing selection by written procedure; 
EN 43   EN (c) ensuring coherence with the local de velopment strategy when selecting 
operations, by prioritising them accordi ng to their contribution to meeting 
the strategies' objectives and targets; 
(d) preparing and publishing calls for proposals or an ongoing project 
submission procedure, including defi nition of selection criteria;  
(e) receiving applications for support and assessing them; 
(f) selecting operations and fixing the amount of support and, where relevant, 
presenting the proposals to the respons ible body for final verification of 
eligibility before approval; 
(g) monitoring the implementation of the local development strategy and the 
operations supported and carrying out specific evaluation activities linked 
to the local development strategy. 
Article 31 
 
Support from the CSF  Funds for local development 
Support for local development shall include: 
(a) the costs of preparatory support;  
(b) implementation of operations under the local development strategy; 
(c) preparation and implementation of coope ration activities of the local action 
group; 
(d) running costs and animation of the local development strategy up to the limit of 
25 % of the total public e xpenditure incurred within  the local development 
strategy. 
TITLE IV 
FINANCIAL INSTRUMENTS 
Article 32 
 
Financial instruments 
1. The CSF Funds may be used to support financial instruments under a 
programme, including when organised th rough funds of funds, in order to 
contribute to the achievement of speci fic objectives set out under a priority, 
based on an ex ante  assessment which has identified market failures or sub-
optimal investment situations, and investment needs. 
EN 44   EN Financial instruments may be combined with grants, interest rate subsidies and 
guarantee fee subsidies. In this case, se parate records must be maintained for 
each form of financing. 
The Commission shall be empowered to adopt delegated acts in accordance with 
Article 142 laying down de tailed rules concerning the ex ante  assessment of 
financial instruments, the combination of support provided to final recipients 
through grants, interest rate subsidies,  guarantee fee subsidies and financial 
instruments, additional specific rules on eligibility of expenditure and rules 
specifying the types of activities which shall not be supported through financial 
instruments. 
2. Final recipients supported by financial instruments may also receive grants or 
other assistance from a programme or fr om another instrument supported by the 
budget of the Union. In this case, separate  records must be maintained for each 
source of financing. 
3. Contributions in kind are not eligible  expenditure in respect of financial 
instruments, except for contributions of land or real estate in respect of 
investments with the objective of s upporting urban development or urban 
regeneration, where the land or real estate forms part  of the investment. Such 
contributions of land or real estate shall be eligible provided that the conditions 
in Article 59 are met. 
Article 33 
 
Implementation of financial instruments 
1. In implementing Article 32, managing authorities may provide a financial 
contribution to the following financial instruments: 
(a) financial instruments set up at Union le vel, managed direct ly or indirectly 
by the Commission; 
(b) financial instruments set up at nationa l, regional, transnational or cross-
border level, managed by or under th e responsibility of the managing 
authority. 
2. Title [VIII] of the Financial Regulation shall apply to financial instruments 
referred to in paragraph 1(a). Contribu tions from the CSF Funds to financial 
instruments under paragraph 1(a) shall be  placed in separate accounts and used, 
in accordance with the objectives of the respective CSF Funds, to support 
actions and final recipients consistent with the programme or programmes from 
which such contributions are made.  
3. For financial instruments under paragraph 1(b), the managing authority may 
provide a financial contribution to the following financial instruments: 
(a) financial instruments complying with  the standard terms and conditions 
laid down by the Commission, by m eans of implementing acts in 
accordance with the examination proce dure referred to in Article 143(3); 
EN 45   EN (b) already existing or newly created financial instruments which are 
specifically designed to achieve the intended purpose and which respect 
the applicable Union and national rules. 
The Commission shall adopt delegated acts in accordance with Article 142 
laying down the specific rules regarding cer tain types of financial instruments 
referred to in point (b), as well as th e products that may be delivered through 
such instruments. 
4. When supporting financial instruments referred to in paragraph 1(b) the 
managing authority may: 
(a) invest in the capital of existing or newly created legal entities, including 
those financed from other CSF Funds, dedicated to implementing financial instruments consistent with the objec tives of the respective CSF Funds, 
which will undertake implementations  tasks; the su pport to such 
investments shall be limited to the amounts necessary to implement new financial instruments consistent with th e objectives of this Regulation; or  
(b) entrust implementation tasks to:  
(i) the European Investment Bank;  (ii) international financial institutio ns in which a Member State is a 
shareholder, or financial institutions established in a Member State 
aiming at the achievement of public interest under the control of a public authority, selected in accord ance with applicable Union and 
national rules;  
(iii) a body governed by public or pr ivate law selected in accordance 
with applicable Union and national rules.  
(c) undertake implementation tasks direc tly, in the case of financial 
instruments consisting solely of loans or guarantees. 
The Commission shall be empowered to adopt delegated acts in accordance with 
Article 142 laying down rules concer ning funding agreements, the role and 
responsibility of the entitie s to which the implementation tasks are entrusted, as 
well as management costs and fees. 
5. The entities referred to in paragra ph 4(b)(i) and (ii), when implementing 
financial instruments through funds of f unds, may further entrust part of the 
implementation to financial intermediaries  provided that these entities ensure 
under their responsibility that the financial intermediaries satisf y the criteria laid 
down in [Articles 57 and 131 (1), (1a) and (3)] of the Financial Regulation. 
Financial intermediaries shall be select ed on the basis of open, transparent, 
proportionate and non-discriminatory proce dures, avoiding conflicts of interests. 
6. The entities referred to in paragraph 4(b) to which implem entation tasks have 
been entrusted shall open fiduciary account s in their name and on behalf of the 
managing authority. The assets held on such fiduciary accounts shall be 
EN 46   EN managed in accordance with the principle of sound financial management 
following appropriate prudential rules a nd shall have appropriate liquidity. 
7. The Commission shall be empowered to adopt delegated acts in accordance with 
Article 142 laying down detailed rules concerning specific requirements regarding the transfer a nd management of assets managed by the entities to 
which implementation tasks are entrusted, as well as conversion of assets between euro and national currencies. 
Article 34 
 
Implementation of certai n financial instruments 
1. The bodies accredited in accordance with  Article 64 shall no t carry out on-the-
spot verifications of oper ations comprising financia l instruments implemented 
under Article 33(1)(a). They shall rece ive regular control reports from the 
bodies entrusted with the implementati on of these financial instruments. 
2. The bodies responsible for the audit of programmes shall not carry out audits of 
operations comprising financial instrume nts implemented under Article 33(1)(a) 
and of management and control systems re lating to these instruments. They shall 
receive regular control reports from the auditors designated in the agreements 
setting up of these financial instruments. 
3. The Commission shall be empowered to adopt delegated acts in accordance with 
Article 142 concerning the arrangemen ts for management and control of 
financial instruments implemented under Ar ticles 33(1)(a) and 33(4)(b)(i), (ii) 
and (iii). 
Article 35 
 
Requests for payment including expe nditure for financial instruments  
1. As regards financial instruments referred to in Article 33(1)(a), the request for 
payment shall include and se parately disclose the tota l amount of support paid to 
the financial instrument. 
2. As regards financial instruments referre d to in Article 33(1)(b) implemented in 
accordance with Article 33(4)(a ) and (b), the total eligible expenditure presented 
in the request for payment shall include and separately disclose the total amount 
of support paid or expected to be paid to  the financial instru ment for investments 
in final recipients to be made over a pre-defined period of maximum two years, 
including management costs or fees.  
3. The amount determined in accordance w ith paragraph 2 sha ll be adjusted in 
subsequent requests for payment, to take  account of the difference between the 
amount of support previously paid to the financial instrument concerned, and the 
amounts effectively invested in final reci pients, plus management costs and fees 
paid. These amounts shall be separately disclosed in the payment request.  
EN 47   EN 4. As regards financial instruments referre d to in Article 33(1)(b) implemented in 
accordance with Article 33(4)(c), the reque st for payment shall include the total 
amount of the payments effected by th e managing authority for investments in 
final recipients. These amounts shall be separately disclosed in the payment request.  
5. The Commission shall be empowered to  adopt, by means of delegated acts in 
accordance with Article 142, the specifi c rules concerning payments and 
withdrawal of payments to financial in struments and possible consequences in 
respect of request s of payments.  
Article 36 
 
Eligible expenditure at closure 
1. At closure of a programme, the eligible expenditure of the financial instrument 
shall be the total amount effectively pa id or, in the case of guarantee funds 
committed, by the financial instrument with in the eligibility period indicated in 
Article 55(2), corresponding to: 
(a) payments to final recipients; 
(b) resources committed for guarantee contracts, whether outstanding or 
already come to maturity, in orde r to honour possible guarantee calls for 
losses, calculated according to a prudent ex ante  risk assessment, covering 
a multiple amount of underlying ne w loans or other risk-bearing 
instruments for new investments in final recipients;  
(c) capitalised interest rate subsidies or guarantee fee subsidies, due to be paid 
for a period not exceeding 10 years after the eligibility period laid down in Article 55(2), used in combination with financial instruments, paid into an 
escrow account specifically set up for that purpose, for effective 
disbursement after the eligibility peri od laid down in Article 55(2), but in 
respect of loans or other risk-bearing instruments disbursed for investments in final recipients within the eligibility period laid down in Article 55(2);  
(d) reimbursement of management costs incurred or payment of management 
fees of the financial instrument. 
2. In the case of equity-based instru ments and micro-credit, capitalised 
management costs or fees due to be paid for a period not exceeding 5 years after the eligibility period laid down in Article  55(2), in respect of investments in 
final recipients which occurred within that eligibility peri od and which cannot 
be covered by Articles 37 and 38, may be considered as eligible expenditure 
when paid into an escrow account specifically set up for that purpose.  
3. The eligible expenditure determined in accordance with paragraphs 1 and 2 shall 
not exceed the sum of the: 
EN 48   EN (i) total amount of the support from the CSF Funds paid to the financial 
instrument; and  
(ii) corresponding nati onal co-financing.  
4. The Commission shall be empowered to adopt delegated acts in accordance with 
Article 142 concerning the establishment of  a system of capitalisation of annual 
instalments for interest rate subs idies and guarantee fee subsidies.  
Article 37 
 
Interest and other gains genera ted by support from the CSF  Funds to financial 
instruments 
1. Support from the CSF Funds paid to fina ncial instruments shall be placed in 
interest-bearing accounts domiciled within  financial institutions in Member 
States or invested on a temporary basis according to the principle of sound financial management.  
2. Interest and other gains attributable to support from the CSF Funds paid to 
financial instruments shall be used for the same purposes as the initial support 
from the CSF Funds within the same financial instrument. 
3. The managing authority shall ensure that adequate records of the use of interest 
and other gains are maintained.  
Article 38 
 
Re-use of resources attributable  to the support from the CSF  Funds until closure of 
the programme  
1. Capital resources paid back to financia l instruments from investments or from 
the release of resources committed for guarantee contracts, which are attributable to the support from the C SF Funds, shall be re-used for further 
investments through the same or other fi nancial instruments, in accordance with 
the aims of the programme or programmes.  
2. Gains and other earnings or yields, in cluding interest, guara ntee fees, dividends, 
capital gains or any other income receipts  generated by investments, attributable 
to the support from the CSF Funds to the financial instrument, shall be used for 
the following purposes, where appli cable, up to the amounts necessary: 
(a) reimbursement of management costs incurred and payment of 
management fees of the financial instrument; 
(b) preferential remuneration of inve stors operating under the market 
economy investor principle, who provi de counterpart resources to the 
support from the CSF Funds to the fina ncial instrument or who co-invest 
at the level of final recipients; 
EN 49   EN (c) further investments through the same or  other financial instruments, in 
accordance with the aims of the programme or programmes.  
3. The managing authority shall ensure that  adequate records of the use of the 
resources and gains referred to in paragraphs 1 and 2 are maintained. 
Article 39 
 
Use of legacy resources after closure of the programme 
Member States shall adopt the necessary meas ures to ensure that the capital resources 
and gains and other earnings or yields attribut able to the support from the CSF Funds to 
financial instruments are used in accordance w ith the aims of the programme for a period 
of at least 10 years after the closure of the programme. 
Article 40 
 
Report on Implementation of Financial Instruments 
1. The managing authority shall send to the Commission a specific report covering 
the operations comprising financial inst ruments as an annex to the annual 
implementation report.  
2. The report referred to in paragraph 1 shal l include, for each financial instrument, 
the following information: 
(a) identification of the programme and of the priority from which support 
from the CSF Funds is provided; 
(b) description of the financial instrume nt and implementation arrangements; 
(c) identification of the bodies to whom  implementation tasks have been 
entrusted; 
(d) total amount of support by programme and priority or measure to the 
financial instrument included in requests for payment submitted to the Commission; 
(e) total amount of support paid or co mmitted in guarantee contracts by the 
financial instrument to the final reci pients by programme and priority or 
measure included in requests for payment submitted to the Commission;  
(f) revenues of, and repayments to, the financial instrument; 
(g) multiplier effect of investments made by the financial instrument and 
value of investments and participations; 
(h) contribution of the financial instru ment to the achievement of the 
indicators of the programme a nd of the priority concerned. 
EN 50   EN 3. The Commission shall adopt, by means of  implementing act, in accordance with 
the examination procedure referred to in  Article 143(3), the uniform conditions 
concerning the monitoring and provision of monitoring information to the 
Commission, including in respec t of financial instrument s referred to in Article 
33(1)(a). 
 
TITLE V 
 
MONITORING AND EVALUATION 
CHAPTER I 
 
Monitoring 
SECTION I 
 
MONITORING OF PROGRAMMES  
Article 41 
 
Monitoring committee 
1. Within three months of the date of notification to the Member State of the 
decision adopting a programme, the Member State shall set up a committee to monitor implementation of the program me, in agreement with the managing 
authority.  
A Member State may set up a single monitoring committee for programmes co-
financed by the CSF Funds.  
2. Each monitoring committee shall draw up and adopt its rules of procedure. 
Article 42 
 
Composition of the monitoring committee 
1. The monitoring committee shall be composed of representatives of the 
managing authority and intermediate bod ies and of repres entatives of the 
partners. Each member of the monito ring committee shall have a voting right. 
The monitoring committee of a program me under the European territorial 
cooperation goal shall also include re presentatives of any third country 
participating in that programme. 
2. The Commission shall participate in the work of the monitoring committee in an 
advisory capacity.  
EN 51   EN 3. If the EIB contributes to a programme, it may participate in the work of the 
monitoring committee in an advisory capacity. 
4. The monitoring committee shall be chaired by a representative of the Member 
State or of the managing authority. 
Article 43 
 
Functions of the monitoring committee 
1. The monitoring committee shall meet at least once a year and shall review 
implementation of the programme and pr ogress towards achieving its objectives. 
In doing so, it shall have regard to the financial data, common and programme-specific indicators, including changes in result indicators and progress towards quantified target values, and the m ilestones defined in the performance 
framework.  
2. The monitoring committee shall examine in detail all issues that affect the 
performance of the programme. 
3. The monitoring committee shall be c onsulted and issue an opinion on any 
amendment of the programme propos ed by the managing authority.  
4. The monitoring committee may issue recommendations to the managing 
authority regarding implementation of the programme and its evaluation. It shall 
monitor actions taken as a resu lt of its recommendations.  
Article 44 
 
Implementation reports  
1. From 2016 until and incl uding 2022, the Member State shall submit to the 
Commission an annual report on implementation of the programme in the previous financial year.  
The Member State shall submit a final report on implementation of the 
programme by 30 September 2023 for th e ERDF, ESF and Cohesion Fund and 
an annual implementation report for the EAFRD and EMFF. 
2. Annual implementation reports shall set out information on implementation of 
the programme and its priorities by refe rence to the financial data, common and 
programme-specific indicators and quantifie d target values, including changes in 
result indicators, and the milestones de fined in the performance framework. The 
data transmitted shall relate to valu es for indicators for fully implemented 
operations and also for selected operations . They shall also set out actions taken 
to fulfil the ex ante  conditionalities and any issues which affect the performance 
of the programme, and the corrective measures taken. 
3. The annual implementation report submitted in 2017 shall set out and assess the 
information set out in paragraph 2 and progress towards achieving the objectives 
of the programme, including the contribu tion of the CSF Funds to changes in 
EN 52   EN result indicators, when evidence is avai lable from evaluations. It shall also 
assess the implementation of actions to take  into account the prin ciples set out in 
Articles 6, 7 and 8 and report on support used for climate change targets. 
4. The annual implementation report submitted in 2019 and the final 
implementation report for the CSF Funds shall, in addition to the information 
and assessment set out in paragraphs 2 and 3, include information on and assess 
progress towards achieving th e objectives of the programme and its contribution 
to achieving the Union strategy for smar t, sustainable and inclusive growth.  
5. The annual implementation reports referre d to in paragraphs 1 to 4 shall be 
admissible where they contain all the in formation required in those paragraphs. 
The Commission shall inform the Member State within 15 working days from 
the date of receipt of the annual implem entation report if it is not admissible, 
failing which it shall be deemed admissible. 
6. The Commission shall examine the annua l implementation report and inform the 
Member State of its observations within two months of the receipt of the annual 
implementation report and w ithin 5 months of receipt of the final report. Where 
the Commission does not provide observa tions within these deadlines, the 
reports shall be deemed to be accepted. 
7. The Commission may issue recommendations to address any issues which affect 
the implementation of the programme. Wh ere such recommendations are made, 
the managing authority shall inform the Commission within three months of the corrective measures taken. 
8. A citizen's summary of the contents of  the annual and the final implementation 
reports shall be made public. 
Article 45 
 
Annual review meeting 
1. An annual review meeting shall be organised every year from 2016 until and 
including 2022 between the Commission a nd each Member State to examine the 
performance of each programme, taking account of the annual implementation 
report and the Commission's observ ations and recommendations, where 
applicable.  
2. The annual review meeting may cover more than one programme. In 2017 and 
2019, the annual review meeting shall cover all programmes in the Member State and shall also take account of  the progress reports submitted by the 
Member State in accordance with Article 46 in those years. 
3. The Member State and the Commission may agree not to organise an annual 
review meeting for a programme in years other than 2017 and 2019.  
4. The annual review meeting sha ll be chaired by the Commission.  
EN 53   EN 5. The Member State shall ensure that appropriate follow-up is given to any 
comments of the Commission following the meeting. 
SECTION II 
 
STRATEGIC PROGRESS  
Article 46 
 
Progress report 
1. By 30 June 2017 and by 30 June 2019, the Member State shall submit to the 
Commission a progress report on implementa tion of the Partnership Contract as 
at 31 December 2016 and 31 December 2018 respectively.  
2. The progress report shall set out information on and assess: 
(a) changes in the development needs in the Member State since the adoption 
of the Partnership Contract; 
(b) progress towards achievement of the Un ion strategy for smart, sustainable 
and inclusive growth, in pa rticular in respect of th e milestones set out for 
each programme in the performance fr amework and the support used for 
climate change objectives; 
(c) whether the actions taken to fulfil ex ante  conditionalities not fulfilled at 
the date of adoption of the Partnershi p Contract have been implemented in 
accordance with the timetable established; 
(d) implementation of mechanisms to en sure coordination between the CSF 
Funds and other Union and national f unding instruments and with the EIB; 
(e) progress towards achievement of priority areas established for 
cooperation; 
(f) actions taken to reinforce the capacity of the Member State authorities 
and, where appropriate, beneficiarie s to administer and use the CSF 
Funds; 
(g) actions planned and corresponding target s in the programmes to achieve a 
reduction in the administrative  burden for beneficiaries; 
(h) the role of the partners referred in Article 5 in the implementation of the 
Partnership Contract. 
3. Where the Commission determines, with in three months of the date of 
submission of the progress report that the information submitted is incomplete or unclear, it may request additional in formation from the Member State. The 
Member State shall provide to the Commission the information requested within 
EN 54   EN three months and, where appropriate,  shall revise the progress report 
accordingly.  
4. In 2017 and 2019, the Commission shall pr epare a strategic report summarising 
the progress reports of the Member States , which it shall submit to the European 
Parliament, the Council, the European Economic and Social Committee and the 
Committee of the Regions. 
5. In 2018 and 2020, the Commission shall in clude in its Annual Progress Report 
to the spring meeting of the European Council a section summarising the strategic report, in particular with regard to progress made towards Union 
strategy for smart, sustaina ble and inclusive growth.  
 
CHAPTER II 
 
Evaluation 
Article 47 
 
 General Provisions 
1. Evaluations shall be carried out to improve the quality of the design and 
implementation of programmes, as well as to assess their effectiveness, efficiency and impact. Impact of program mes shall be evaluated in accordance 
with the mission of the respective CSF F unds in relation to the targets for the 
Union strategy for smart, sustainable and inclusive growth
27 as well as in 
relation to Gross Domestic Product (GDP) and unemployment, where appropriate.  
2. Member States shall provide the resources necessary for carrying out 
evaluations, and shall ensure that proce dures are in place to  produce and collect 
the data necessary for evaluations, incl uding data related to  common and where 
appropriate programme-specific indicators. 
3. Evaluations shall be carried out by expe rts that are functionally independent of 
the authorities responsible for pr ogramme implementation. The Commission 
shall provide guidance on how to carry out evaluations.  
4. All evaluations shall be made public in their entirety.  
                                                
 
27 Ref. EU2020 headline targets.  
EN 55   EN Article 48  
 
Ex ante  evaluation 
1. Member States shall carry out ex ante  evaluations to improve the quality of the 
design of each programme. 
2. Ex ante evaluations shall be carried ou t under the responsibility of the authority 
responsible for the preparat ion of the programmes. They  shall be submitted to 
the Commission at the same time as the programme, together with an executive summary. The Fund-specific rules may establish thresholds under which the ex 
ante evaluation may be combined with th e evaluation for another programme. 
3. Ex ante  evaluations shall appraise: 
(a) the contribution to the Un ion strategy for smart, sustainable and inclusive 
growth, having regard to the selected  thematic objectives and priorities, 
taking into account natio nal and regional needs; 
(b) the internal coherence of the prop osed programme or activity and its 
relation with other relevant instruments; 
(c) the consistency of the allocation of budgetary resources with the 
objectives of the programme; 
(d) the consistency of the selected thematic objectives, the priorities and 
corresponding objectives of the prog rammes with the Common Strategic 
Framework, the Partnership Cont ract and the country-specific 
recommendations under Article 121( 2) of the Treat y and the Council 
recommendations adopted under Ar ticle 148(4) of the Treaty; 
(e) the relevance and clarity of th e proposed programme indicators; 
(f) how the expected outputs will contribute to results; 
(g) whether the quantified target values fo r indicators are realistic, having 
regard to the support from the CSF Funds envisaged; 
(h) the rationale for the fo rm of support proposed; 
(i) the adequacy of human resources  and administrative capacity for 
management of the programme; 
(j) the suitability of the procedures fo r monitoring the programme and for 
collecting the data necessary  to carry out evaluations; 
(k) the suitability of the milestones selected for the performance framework; 
(l) the adequacy of planned measures to  promote equal opportunities between 
men and women and to prevent discrimination; 
(m) the adequacy of planned measures to  promote sustainable development. 
EN 56   EN 4. The ex ante  evaluation shall incorporate, wh ere appropriate, the requirements 
for Strategic Environmental Assessment set out in implementation of Directive 
2001/42/EC of the European Parliament and of the Council of 27 June 2001 on 
the assessment of the effects of certain plans and programmes on the 
environment28. 
Article 49 
 
Evaluation during the programming period 
1. An evaluation plan shall be drawn up by the managing authority for each 
programme and submitted in accordance with the Fund-specific rules. 
2. Member States shall ensure that appropr iate evaluation capacity is available.  
3. During the programming period, mana ging authorities shall carry out 
evaluations including evaluations to asse ss effectiveness, efficiency and impact, 
for each programme on the basis of the evaluation plan. At least once during the 
programming period, an evaluation shall assess how support from the CSF Funds has contributed to the objectives fo r each priority. All ev aluations shall be 
examined by the monitoring committee and sent to the Commission.  
4. The Commission may carry out, at its own initiative, evaluations of 
programmes.  
Article 50 
 
Ex post  evaluation  
The ex post evaluations shall be carried out by th e Commission or by the Member States, 
in close cooperation. Ex post evaluations shall examine the effectiveness and efficiency 
of the CSF Funds and their contribution to th e Union strategy for smart, sustainable and 
inclusive growth in accordance with spec ific requirements established in the Fund-
specific rules. Ex post evaluations shall be completed by 31 December 2023. 
                                                
 
28 OJ L 197, 21.7.2001, p. 30  
EN 57   EN  
TITLE VI  
 
TECHNICAL ASSISTANCE 
Article 51 
 
Technical assistance at the initiative of the Commission 
1. At the initiative of, or on behalf of  the Commission, the CSF Funds may support 
the preparatory, monitoring, administrative and technical assist ance, evaluation, 
audit and control measures necessary for implementing this Regulation. 
Those measures may include but not limited to: (a) assistance for project preparation and appraisal, including with the EIB;  
(b) support for institutional strengthen ing and administrative capacity-
building for the effective management of the CSF Funds; 
(c) studies linked to the Commission's reporting on the CSF Funds and the 
cohesion report; 
(d) measures related to the analysis, management, monitoring, information 
exchange and implementation of th e CSF Funds, as well as measures 
relating to the implementation of control systems a nd technical and 
administrative assistance; 
(e) evaluations, expert report s, statistics and studies, including those of a 
general nature, concerning the current  and future operation of the CSF 
Funds, which may be carried out where appropriate by the EIB; 
(f) actions to disseminate information, support networking, carry out 
communication activities, raise awar eness and promote cooperation and 
exchange of experience, including w ith third countries. To bring about 
greater efficiency in communication to the public at large and stronger synergies between the communicati on activities undertaken at the 
initiative of the Commission, the re sources allocated to communication 
actions under this Regulation shall also contribute to the corporate communication of the political priorities  of the European Union as far as 
they are related to the general objectives of this Regulation; 
(g) the installation, operation and interconn ection of computerised systems for 
management, monitoring, audit, control and evaluation; 
(h) actions to improve evaluation methods and the exchange of information on 
evaluation practices; 
(i) actions related to audit; 
EN 58   EN (j) the strengthening of national and regi onal capacity regarding investment 
planning, needs assessment, preparat ion, design and implementation of 
financial instruments, joint action pl ans and major projec ts, including joint 
initiatives with the EIB. 
Article 52 
 
Technical assistance of the Member States 
1. At the initiative of a Member State,  the CSF Funds may support actions for 
preparation, management, monito ring, evaluation, information and 
communication, networking, complaint reso lution, and control and audit. The 
CSF Funds may be used by the Member State to support actions for the reduction of administrative burden for be neficiaries, including electronic data 
exchange systems, and actions to reinforce the capacity of Member State authorities and beneficiaries to administ er and use the CSF Funds. These actions 
may concern preceding and subsequent programming periods.  
2. The Fund-specific rules may add or excl ude actions which ma y be financed by 
the technical assistance of each CSF Fund.  
 
 
 
TITLE VII 
 
FINANCIAL SUPPORT FROM THE CSF FUNDS 
CHAPTER I 
 
Support from the CSF Funds 
Article 53 
 
Determination of co-financing rates 
1. The Commission decision adopting a progr amme shall fix the co-financing rate 
or rates and the maximum amount of support from the CSF Funds according to the Fund-specific rules. 
2 Technical assistance measures implemented at the initiative of, or on behalf of, 
the Commission may be financed at the rate of 100%.  
EN 59   EN Article 54 
 
Revenue-generating operations  
1. Net revenue generated after completion of  an operation over a specific reference 
period shall be determined in adva nce by one of the following methods: 
(a) application of a flat rate revenue  percentage for the type of operation 
concerned; 
(b) calculation of the current  value of the net revenue of the operation, taking 
into account the application of th e polluter-pays principle and, if 
appropriate, considerations of equity linked to the relative prosperity of 
the Member State concerned. 
The eligible expenditure of the operation to be co-financed shall not exceed the 
current value of the investme nt cost of the operation le ss the current value of the 
net revenue, determined according to one of these methods. 
The Commission shall be empowered to adopt delegated acts in accordance with 
Article 142 concerning the definition of the flat rate referred to in point (a) above.  
The Commission shall adopt the me thodology under point (b) by means of 
implementing acts in accordance with the examination procedure referred to in 
Article 143(3). 
2. Where it is objectively not possible to  determine the revenue in advance 
according to the methods set out in paragraph 1, the net revenue generated within three years of the completion of an operation or by 30 September 2023, 
whichever is earlier, shall be deducted from the expenditure declared to the 
Commission. 
3. Paragraphs 1 and 2 shall apply only to operations whose total cost exceeds 
EUR 1 000 000. 
4. This Article shall not apply to the ESF. 5. Paragraphs 1 and 2 shall not apply to ope rations subject to the rules on State aid 
or to support to or from financial instruments. 
EN 60   EN  
CHAPTER II 
 
Eligibility of expenditure and durability  
Article 55  
 
Eligibility 
1. The eligibility of expenditure shall be determined on the basis of national rules, 
except where specific rules are laid down in  or on the basis of this Regulation or 
the Fund-specific rules.  
2. Expenditure shall be eligible for a contribution from the CSF Funds if it has 
been incurred and paid by a beneficiary between the date of submission of the 
programme to the Commission or from  1 January 2014, whichever is earlier, 
and 31 December 2022. In addition, expenditure shall only be eligible for a contribution from the EAFRD and the EMFF if the relevant aid is actually paid 
by the paying agency between 1 January 2014 and 31 December 2022. 
3. In the case of costs reimbursed on the basis of Article 57(1)(b) and (c), the 
actions constituting the basis for reimbursement shall be carried out between 1 January 2014 and 31 December 2022.  
4. Operations shall not be selected for support by the CSF Funds where they have 
been physically completed or fully implemented before the application for funding under the programme is submitted by the beneficiary to the managing authority, irrespective of whether all re lated payments have been made by the 
beneficiary.  
5. This Article shall be without prejudice to the rules on eligib ility of technical 
assistance at the initi ative of the Commission set out in Article 51. 
6. Net revenue directly generated by an operation during its implementation which 
has not been taken into account at the time of approval of the operation, shall be 
deducted from the eligible expenditure of the operation in the final payment 
claim submitted by the beneficiary. This rule shall not apply to financial instruments and prizes.  
7. In the case of amendment of a progr amme, expenditure becoming eligible 
because of the amendment to the programme shall only be eligible from the date 
of submission to the Commission of  the request for amendment.  
8. An operation may receive support from one or more CSF Funds and from other 
Union instruments, provided that the e xpenditure item included in a request for 
payment for reimbursement by one of the CSF Funds does not receive support 
from another Fund or Union instrument, or support from the same Fund under another programme. 
EN 61   EN Article 56  
 
Forms of support  
The CSF Funds shall be used to provide suppor t in the form of grants, prizes, repayable 
assistance and financial instrument s, or a combination thereof.  
In the case of repayable assistance, the suppor t repaid to the body that provided it, or to 
another competent authority of the Member Stat e, shall be kept in a separate account and 
reused for the same purpose or in accord ance with the objectives of the programme. 
Article 57  
 
Forms of grants 
1. Grants may take any of the following forms: 
(a) reimbursement of eligible costs actua lly incurred and paid, together with, 
where applicable, in-kind cont ributions and depreciation; 
(b) standard scales of unit costs; 
(c) lump sums not exceeding EUR 100 000 of public contribution; 
(d) flat-rate financing, determined by the a pplication of a percentage to one or 
several defined categories of costs. 
2. The options referred to in paragraph 1 may be combined only where each covers 
different categories of costs or where they are used for different projects 
forming a part of an operation or for successive phases of an operation. 
3. Where an operation or a project formi ng a part of an operation is implemented 
exclusively through the procurement of works, goods or services, only 
paragraph 1(a) shall apply. Where the procurement within an operation or 
project forming part of an operation is limited to certain categories of costs, all the options referred to in paragraph 1 may be applied. 
4. The amounts referred to in paragraph 1(b) , (c) and (d) shall be  established on the 
basis of: 
(a) a fair, equitable and verifiab le calculation method based on: 
(i) statistical data or othe r objective information; or 
(ii) the verified historical data of individual beneficiaries or the 
application of their usua l cost accounting practices; 
(b) methods and corresponding scales of un it costs, lump sums and flat rates 
applicable in Union policies for a similar type of operation and 
beneficiary; 
EN 62   EN (c) methods and corresponding scales of un it costs, lump sums and flat rates 
applied under schemes for grants funde d entirely by the Member State for 
a similar type of operation and beneficiary;  
(d) rates established by this Regula tion or the Fund-specific rules. 
5. The document setting out the conditions for support for each operation shall set 
out the method to be applied for determining the costs of the operation and the conditions for payment of the grant. 
Article 58   
Flat rate financing for indirect costs for grants 
Where the implementation of an operation give s rise to indirect costs, they may be 
calculated as a flat rate in  one of the following ways:  
(a) a flat rate of up to 20 % of eligible direct costs, where the rate is calculated on 
the basis of a fair, equitable and verifiable calculation method or a method applied under schemes for grants funded entirely by the Member State for a similar type of operation and beneficiary; 
(b) a flat rate of up to 15 % of eligible direct staff costs; 
(c) a flat rate applied to eligible direct costs ba sed on existing methods and 
corresponding rates, applicab le in Union policies for a similar type of operation 
and beneficiary. 
The Commission shall be empowered to adopt delegated acts in accordance with Article 
142 concerning the definition of the flat rate and the related methods referred to in point 
(c) above.  
Article 59 
 
Specific eligibility rules for grants 
1. Contributions in kind in the form of provision of works, goods, services, land 
and real estate for which no cash paym ent supported by invoices or documents 
of equivalent probative value has been made, may be eligible provided that the 
eligibility rules of the CSF Funds and the programme allow for it and that all the 
following conditions are fulfilled: 
(a) the public support paid to the operati on which includes co ntributions in 
kind shall not exceed the total eligible expend iture, excluding 
contributions in kind, at the end of the operation; 
(b) the value attributed to contributions  in kind does not exceed the costs 
generally accepted on the market in question; 
(c) the value and the delivery of the contribution can be independently 
assessed and verified; 
EN 63   EN (d)  in the case of provision of land or real  estate, the value is certified by an 
independent qualified expert or duly authorised official body and does not 
exceed the limit laid down in paragraph 3(b); 
(e) in the case of contributions in kind in  the form of unpaid work, the value 
of that work is determined taking into account the verified time spent and the rate of remunerati on for equivalent work. 
2. Depreciation costs may be considered as  eligible under the following conditions:  
(a) the eligibility rules of the programme allow for it; 
(b) the amount of the expenditure is du ly justified by supporting documents 
having equivalent probative value to  invoices where reimbursed in the 
form referred to in Article 57(1)(a); 
(c) the costs relate exclusively to the period of support for the operation;  
(d) public grants have no t contributed towards the acquisition of the 
depreciated assets. 
3. The following costs shall not be eligible  for a contribution from the CSF Funds: 
(a) interest on debt; 
(b) the purchase of land not built on and land built on in the amount exceeding 
10% of the total eligible expenditu re for the operation concerned. In 
exceptional and duly justified cases, a higher percentage may be permitted 
for operations concerning environmental conservation; 
(c) value added tax. However, VAT amounts shall be eligible where they are 
not recoverable under national VAT legislation and are paid by a 
beneficiary other than non-taxable person as defined in the first 
subparagraph of Article 13(1) of Directive 2006/112/EC, provided that 
such VAT amounts are not incurred in relation to the provision of 
infrastructure. 
Article 60  
 
Eligibility of operations depending on location  
1. Operations supported by the CSF Funds, subj ect to the derogations referred to in 
paragraphs 2 and 3, and the Fund-specific rules, shall be lo cated in the area 
covered by the programme under which they are supported (the 'programme area'). 
2. The managing authority may accept that an operation is implemented outside the 
programme area but within the Union, pr ovided that all the following conditions 
are satisfied: 
(a) the operation is for the bene fit of the pr ogramme area; 
EN 64   EN (b) the total amount allocated under the programme to operations located 
outside the programme area does not exceed  10 % of the support from the 
ERDF, Cohesion Fund and EMFF at the leve l of the priority, or 3% of the 
support from the EAFRD at the level of the programme; 
(c) the monitoring committee has given its agreement to the operation or 
types of operations concerned; 
(d) the obligations of the authorities for the programme in relation to 
management, control and audit concerning the operation are fulfilled by the authorities responsible for the programme under which that operation 
is supported or they ente r into agreements with au thorities in the area in 
which the operation is implemented. 
3. For operations concerning promotional ac tivities, expenditure may be incurred 
outside the Union provided that the conditi ons set out in paragraph 2 (a) and the 
obligations in relation to management, control and audit concerning the operation are fulfilled. 
4. Paragraphs 1 to 3 shall not apply to programmes under the European territorial 
cooperation goal and paragraphs 2 and 3 sh all not apply to operations supported 
by the ESF. 
Article 61 
 
Durability of operations 
1. An operation comprising investment in infrastructure or productive investment 
shall repay the contribution from the C SF Funds if within five years from the 
final payment to the beneficiary or within  the period of time set out in the State 
aid rules, where applicable, it is subject to: 
(a) a cessation or relocation of a productive activity; 
(b) a change in ownership of an  item of infrastructure which gives to a firm or 
a public body an undue advantage; or 
(c) a substantial change affecting its na ture, objectives or implementation 
conditions which would result in u ndermining its original objectives. 
Sums unduly paid in respect of the oper ation shall be recovered by the Member 
State. 
2. Operations supported by the ESF a nd operations supported by the other CSF 
Funds that are not investment in infras tructure or productiv e investments shall 
repay the contribution from the Fund only where they are subject to an 
obligation for maintenance of investment  under the applicable State aid rules 
and where they undergo a cessation or relo cation of a productiv e activity within 
the period laid down in those rules. 
EN 65   EN 3. Paragraphs 1 and 2 shall not apply to c ontributions to or by financial instruments 
or to any operation which undergoes cessa tion of a productive activity due to a 
non-fraudulent bankruptcy.  
4. Paragraphs 1 and 2 shall not apply to natural persons who are beneficiary of 
investment support and, after the comp letion of the investment operation, 
become eligible for and receive support under the EGF (Regulation [/2012] setting a European Globalisation Fund) where the investment concerned is 
directly linked to the type of activity identified as eligible for EGF support. 
 
TITLE VIII 
 
MANAGEMENT AND CONTROL 
CHAPTER I 
 
Management and control systems 
Article 62 
 
General principles of man agement and control systems 
Management and control systems shall provide for: 
(a) a description of the functions of each body concerned in management and 
control, and the al location of functions within each body; 
(b) compliance with the principle of separa tion of functions between and within 
such bodies; 
(c) procedures for ensuring the correctness a nd regularity of expenditure declared; 
(d) computerised systems for accounting, fo r the storage and transmission of 
financial data and data on indicato rs, for monitoring and for reporting; 
(e) systems for reporting and monitoring where the responsible body entrusts 
execution of tasks to another body; 
(f) arrangements for auditing the functioning of the management and control 
systems; 
(g) systems and procedures to ensure an adequate audit trail; 
(h) the prevention, detection and correction of irregularities, including fraud, and 
the recovery of amounts unduly paid , together with any interest. 
EN 66   EN Article 63 
 
Responsibilities of Member States 
1. Member States shall fulfil the manage ment, control and audit obligations and 
assume the resulting responsibilitie s laid down in the rules on shared 
management set out in the Financial Regul ation and the Fund-specific rules. In 
accordance with the principle of shared management, Member States shall be 
responsible for the management and control of programmes.  
2. Member States shall ensure that their management and control systems for 
programmes are set up in accordance with the provisions of the Fund-specific rules and that the systems function effectively.  
3. Member States shall establish and implement a procedure for the independent 
examination and resolution of compla ints concerning the selection or 
implementation of operations co-finan ced by the CSF Funds. Member States 
shall report the results of such examin ations to the Commission upon request. 
4. All official exchanges of informa tion between the Member State and the 
Commission shall be carried out using an electronic data exchange system 
established in compliance with the terms and conditions laid down by the 
Commission by means of implementing acts . Those implementing acts shall be 
adopted in accordance with the examina tion procedure referred to in Article 
143(3). 
 
CHAPTER II 
 
Accreditation of manageme nt and control bodies 
Article 64 
 
Accreditation and coordination 
1. In accordance with [Article 56(3)] of the Financial Regulation, each body 
responsible for the management and cont rol of expenditure under the CSF Funds 
shall be accredited by formal decision of an accrediting authority at ministerial 
level. 
2. The accreditation shall be granted subject to the body complying with the 
accreditation criteria on internal environm ent, control activities, information and 
communication, and monitoring laid down in the Fund-specific rules. 
3. The accreditation shall be based on an opinion of an independent audit body that 
assesses the body’s compliance with the accr editation criteria. The independent 
audit body shall carry out its work in acco rdance with internationally accepted 
audit standards.  
EN 67   EN 4. The accrediting authority shall supervis e the accredited body and withdraw its 
accreditation by formal decision if one or more of the accreditation criteria are 
no longer met, unless the body takes the ne cessary remedial actions within a 
period of probation to be determined by the accrediting authority according to 
the severity of the problem. The accr editing authority shall notify the 
Commission immediately of the sett ing of any probation period for an 
accredited body and of any withdrawal decision.  
5. The Member State may designate a coor dinating body whose responsibility is to 
liaise with and provide information to  the Commission, promote the harmonised 
application of Union rules, establish a synthesis report providing an overview at 
national level of all management decl arations and the a udit opinions and 
coordinate the implementation of remedial actions as regards any deficiencies of 
a common nature. 
6. Without prejudice to the rules laid down in the Fund-specific rules, the bodies to 
be accredited under paragraph 1 shall be: 
(a) for the ERDF, ESF and the Cohesion Fund, the managing authorities and, 
where appropriate, the certifying authorities; 
(b) for the EAFRD and the EMFF, the paying agencies. 
 
CHAPTER III 
 
Commission powers a nd responsibilities 
Article 65 
 
Commission powers and responsibilities 
1. The Commission shall satisfy itself on the basis of available information, 
including the accreditation procedure, annual manage ment declaration, annual 
control reports, annual audit opinion, annual implementation report and audits 
carried out by national and Union bodies, th at the Member States have set up 
management and control systems that comply with this Regulation and the 
Fund-specific rules and that these sy stems function effectively during the 
implementation of programmes. 
2. Without prejudice to audits carried ou t by Member States, Commission officials 
or authorised Commission representatives may carry out on-the-spot audits or 
checks upon giving adequate prior notice. The scope of such audits or checks 
may include, in particular, verificat ion of the effective functioning of 
management and control systems in a pr ogramme or a part thereof, operations 
and assessment of the sound financia l management of operations or 
programmes. Officials or authorised re presentatives of the Member State may 
take part in such audits.  
EN 68   EN Commission officials or authorised  Commission representatives, duly 
empowered to carry out on-the-spot audi ts, shall have access to all records, 
documents and metadata, irrespective of the medium in which they are stored, 
relating to operations s upported by the CSF Funds or to management and 
control systems. Member States shall provide copies of such records, documents and metadata to the Commission upon request. 
The powers set out in this paragraph sha ll not affect the application of national 
provisions which reserve cer tain acts for agents specifically designated by 
national legislation. Commissi on officials and authorised representatives shall 
not take part, inter alia, in home visits  or the formal questioning of persons 
within the framework of national legislat ion. However, they shall have access to 
the information thus obtained. 
3. The Commission may require a Member St ate to take the actions necessary to 
ensure the effective functioning of their management and control systems or the 
correctness of expenditure  in accordance with th e Fund-specific rules. 
4. The Commission may require a Member State to examine a complaint submitted 
to the Commission concerning the selecti on or implementation of operations co-
financed by the CSF Funds or the func tioning of the management and control 
system.  
 
TITLE IX 
 
FINANCIAL MANAGEMENT, CLEARANCE OF 
ACCOUNTS AND FINANCIAL CORRECTIONS, 
DECOMMITMENT 
CHAPTER I 
 
Financial management 
Article 66 
 
Budget commitments 
The budget commitments of the Union in resp ect of each programme shall be made in 
annual instalments for each Fund during the period between 1 January 2014 and 31 December 2020. The decision of the Commissi on adopting a programme shall constitute 
the financing decision within the meaning of Article 75(2) of the Financial Regulation 
and once notified to the Member State c oncerned, a legal commitment within the 
meaning of that Regulation.  
For each programme, the budget commitment for the first instalment shall follow the 
adoption of the programme by the Commission.  
EN 69   EN The budget commitments for subsequent inst alments shall be made by the Commission 
before 1 May of each year, on the basis of  the decision referred to in the second 
subparagraph, except where Article 13 of  the Financial Regu lation applies.  
As regards the performance reserve, budget commitments shall follow the Commission 
decision approving the amendment of the programme.  
Article 67  
 
 Common rules for payments 
1. Payments by the Commission of the c ontribution from the CSF Funds to each 
programme shall be made in accordance w ith budget appropriations and subject 
to available funding. Each payment shal l be posted to the earliest open budget 
commitment of the Fund concerned.  
2. Payments shall take the form of pre-fi nancing, interim payments and payment of 
the annual balance, where applicable, and of the final balance.  
3. For forms of support under Article 57(1)(b),  (c) and (d), the amounts paid to the 
beneficiary shall be regarded as eligible expenditure.  
Article 68 
 
Common rules for calculating interim paym ents, payment of the annual balance, 
where applicable, and payment of final balance 
The Fund-specific rules shall lay down rules fo r the calculatio n of the amount reimbursed 
as interim payments, payment of the annual ba lance, where applicable, and of the final 
balance. This amount shall be a function of the specific co-financing rate applicable to 
the eligible expenditure.  
Article 69 
 
Requests for payment  
1. The specific procedure and information to be submitted for requests for payment 
shall be laid down in the Fund-specific rules. 
2. The request for payment to be submitted to the Commission shall provide all the 
information necessary for the Commission to produce accounts in accordance with Article 61(2) of the Financial Regulation. 
EN 70   EN Article 70 
 
Accumulation of pre-financ ing and interim payments 
1. The cumulative total of pre-financ ing and interim payments and, where 
applicable, the annual balance by the Co mmission shall not exceed 95 % of the 
contribution from the CSF Funds to the programme. 
2. When the ceiling of 95 % is reached, the Member States shall continue 
transmitting requests for payment to the Commission. 
Article 71 
 
Use of the euro 
Amounts set out in programmes submitted by Member States, forecasts of expenditure, 
statements of expenditure, requests for payment, annual accounts and expenditure 
mentioned in the annual and final implementatio n reports shall be denominated in euro.  
Article 72 
 
Payment of initial pre-financing 
1. Following the Commission decision adop ting the programme, an initial pre-
financing amount for the whole program ming period shall be paid by the 
Commission. The initial pre-financing am ount shall be paid in instalments 
according to budgetary needs. The instalments shall be defined in the Fund-specific rules. 
2. Pre-financing shall be used only for ma king payments to beneficiaries in the 
implementation of the programme. It shal l be made available without delay to 
the responsible body for this purpose. 
Article 73 
 
Clearance of initial pre-financing  
The amount paid as initial pre-financing sh all be totally cleared from the Commission 
accounts at the latest when the programme is closed. 
Article 74  
 
Interruption of the payment deadline 
1. The payment deadline for an interim pa yment claim may be interrupted by the 
authorising officer by delegation within the meaning of the Financial Regulation 
for a maximum period of nine months if: 
EN 71   EN (a) following information provided by a na tional or Union audit body, there is 
evidence to suggest a significant deficiency in  the functioning of the 
management and control system; 
(b) the authorising officer by delega tion has to carry out additional 
verifications following information coming to his attention alerting him that expenditure in a request for payment is linked to an irregularity having serious financial consequences; 
(c) there is a failure to submit one of the documents required under Article 
75(1). 
2. The authorising officer by delegation may limit the interruption to the part of the 
expenditure covered by the payment claim affected by the elements referred to 
in paragraph 1. The authorising officer by delegation shall inform the Member 
State and the managing authority immediat ely of the reason for interruption and 
shall ask them to remedy the situation. The interruption shall be ended by the 
authorising officer by delegation as soon as the necessary measures have been 
taken. 
CHAPTER II 
 
Clearance of accounts and financial corrections  
Article 75 
 
Submission of information 
1. By 1 February of the year followi ng the end of the accounting period, the 
Member State shall submit to the Co mmission the following documents and 
information in accordance with [Artic le 56] of the Financial Regulation: 
(a) the certified annual accounts of the rele vant bodies accredited pursuant to 
Article 64; 
(b) the management declaration of assurance as to the completeness, accuracy 
and veracity of the annual accounts, the proper functioning of the internal 
control systems, as well as to the le gality and regularity of the underlying 
transactions and the respect of the principle of sound financial 
management; 
(c) a summary report of all available audits and controls carried out, including 
an analysis of systemic or recurr ent weaknesses, as well as corrective 
actions taken or planned; 
(d) an audit opinion by the designated independent audit body on the 
management declaration of assuranc e covering the completeness, accuracy 
and veracity of the annual accounts, the proper functioning of the internal 
control systems, as well as on the lega lity and regularity of the underlying 
EN 72   EN transactions and the respect of the principle of sound financial 
management, accompanied by a control report setting out the findings of the audits carried out relating to the accounting year covered by the opinion. 
2. Upon request by the Commission, the Me mber State shall provide further 
information to the Commission. If a Member State does not provide the requested information by the deadline fo r its submission set by the Commission, 
the Commission may take its decision on the clearance of the accounts on the 
basis of the information in its possession. 
3. By [15 February] of the year follow ing the end of the accounting period, the 
Member State shall submit to the Commi ssion a synthesis report in accordance 
with the last subparagra ph of [Article 56(5)] of the Financial Regulation. 
Article 76 
 
Clearance of accounts 
1. By 30 April of the year following the end of the accounting period, the 
Commission shall decide, in accordance with the Fund-specific rules, on the clearance of the accounts of  the relevant bodies accred ited pursuant to Article 64 
for each programme. The clearance decisi on shall cover the completeness, 
accuracy and veracity of the annual acc ounts submitted and shall be without 
prejudice to any subseque nt financial corrections. 
2. The procedures for annual clearance sh all be laid down in the Fund-specific 
rules. 
Article 77 
 
Financial corrections by the Commission  
1. The Commission shall make financial corr ections by cancelling all or part of the 
Union contribution to a programme and effecting recovery from the Member 
State in order to exclude from Union financing expenditure which is in breach of applicable Union and national law, including in relation to deficiencies in the management and control systems of Memb er States which have been detected 
by the Commission or the European Court of Auditors. 
2. A breach of applicable Union or national law shall lead to a financial correction 
only where one of the following conditions is met: 
(a) the breach has or could have affected the selection of an  operation by the 
responsible body for s upport by the CSF Funds; 
(b) there is a risk that th e breach has or could have  affected the amount of 
expenditure declared for reim bursement by the Union budget. 
3. When deciding on the amount of a fina ncial correction under  paragraph 1, the 
Commission shall take account of the na ture and gravity of the breach of 
EN 73   EN applicable Union or national law and its financial implications for the Union 
budget.  
4. The criteria and the procedur es for applying financial corrections shall be laid 
down in the Fund-specific rules.  
 
CHAPTER III 
 
DECOMMITMENT  
Article 78 
 
Principles  
1. All programmes shall be submitted to a decommitment procedure established on 
the basis that amounts linked to a comm itment which are not covered by pre-
financing or a request for payment within a defined period shall be 
decommitted.  
2. The commitment related to the last year of the period will be decommitted 
according to the rules to be followed for the closure of the programmes. 
3. The Fund-specific rules shall specify  the precise application of the 
decommitment rule for each CSF Fund. 
4. That part of commitments still open shall be decommitted if any of the 
documents required for the closure has not been submitted to the Commission by the deadlines established in the Fund-specific rules. 
Article 79 
 
Exception to the decommitment  
1. The amount concerned by decommitment shall be reduced by the amounts that 
the responsible body has not been able to declare to the Commission because of: 
(a) operations suspended by a legal proceed ing or by an administrative appeal 
having suspensory effect; or 
(b) reasons of force majeure  seriously affecting implem entation of all or part 
of the programme. The nati onal authorities claiming force majeure  shall 
demonstrate the direct consequences of the force majeure  on the 
implementation of all or part of the programme 
The reduction may be requested  once if the suspension or force majeure  lasted 
up to one year, or several times co rresponding to the duration of the force 
majeure  or the number of years between the date of the legal or administrative 
EN 74   EN decision suspending the implementation of  the operation and the date of the 
final legal or administrative decision.  
2. By 31 January, the Member State shall send to the Commission information on 
the exceptions referred to in paragraph 1 for the amount to be declared by the 
end of preceding year.  
Article 80 
 
Procedure  
1. The Commission shall inform the Member  State and the managing authority in 
good time whenever there is a risk of  application of decommitment under 
Article 78. 
2. On the basis of the information it has on 31 January, the Commission shall 
inform the Member State and the mana ging authority of the amount of the 
decommitment resulting from the information in its possession. 
3. The Member State shall have two months to agree to the amount to be 
decommitted or to submit its observations. 
4. By 30 June, the Member State shall submit to the Commission a revised 
financing plan reflecting for the financia l year concerned the reduced amount of 
support over one or several priorities of the programme. Failing such 
submission, the Commission shall revise  the financing plan by reducing the 
contribution from the CSF Funds for the financial year concerned. This reduction shall be allocated to each priority proportionately. 
5. The Commission shall amend the decisi on adopting the programme, by means 
of implementing acts, not la ter than 30 September. 
EN 75   EN PART THREE 
 
GENERAL PROVISIONS APPL ICABLE TO THE ERDF, 
THE ESF AND THE CF 
TITLE I 
 
OBJECTIVES AND THE FINANCIAL FRAMEWORK 
 
CHAPTER I 
 
Mission, goals and geographi cal coverage of support 
Article 81  
 
Mission and goals 
1. The Funds shall contribute to developi ng and pursuing the actions of the Union 
leading to strengthening of  its economic, social and territorial cohesion in 
accordance with Article 174 of the Treaty.  
The actions supported by the Funds shall contribute to the Union strategy for 
smart, sustainable a nd inclusive growth. 
2. To this end, the following goals shall be pursued: 
(a) 'Investment for growth and jobs' in  Member States and regions, to be 
supported by all the Funds; and 
(b) 'European territorial cooperation', to be supported by the ERDF. 
Article 82  
 
Investment for growth and jobs  
1. The Structural Funds shall support the Inve stment for growth and jobs goal in all 
regions corresponding to level 2 of the commo n classification of territorial units 
for statistics (hereinafter referred to as  'NUTS level 2') established by Regulation 
(EC) No 1059/2003.  
2. Resources for the Investment for growth  and jobs goal shall be allocated among 
the following three categories of NUTS level 2 regions:  
EN 76   EN (a) less developed regions, whose GDP pe r capita is less than 75 % of the 
average GDP of the EU-27;  
(b) transition regions, whose GDP per capita is between 75% and 90% of the 
average GDP of the EU-27;  
(c) more developed regions, whose GD P per capita is above 90 % of the 
average GDP of the EU-27. 
The three categories of regions are dete rmined on the basis of how their GDP 
per capita, measured in purchasing power parities and calculat ed on the basis of 
Union figures for the period 2006 to 2008, relates to the average GDP of the EU-27 for the same reference period. 
3. The Cohesion Fund shall support those Member States whose gross national 
income (GNI) per capita, measured in pur chasing power pariti es and calculated 
on the basis of Union figures for the period 2007 to 2009, is less than 90 % of 
the average GNI per capita of the EU -27 for the same reference period.  
The Member States eligible for funding from the Cohesion Fund in 2013, but 
whose nominal GNI per capita exceeds 90%  of the average GNI per capita of 
the EU-27 as calculated under the first s ub-paragraph shall receive support from 
the Cohesion Fund on a transi tional and specific basis.  
4. Immediately following the entry into fo rce of this Regulation, the Commission 
shall adopt a decision by implementing act setting out the list of regions 
fulfilling the criteria of the three categories of regions referred to in paragraph 2 and of Member States fulfilling the criteria of paragraph 3. This list shall be valid from 1 January 2014 to 31 December 2020. 
5. In 2017, the Commission shall review the e ligibility of Member States for the 
Cohesion Fund on the basis of Union GNI  figures for the period 2013 to 2015 
for the EU-27. Those Member States whose nominal GNI per capita exceeds 90% of the average GNI per capita of th e EU-27, shall receive support from the 
Cohesion Fund on a transitional and specific basis. 
 
CHAPTER II  
 
Financial framework  
Article 83  
 
Global resources  
1. The global resources available for b udgetary commitment from the Funds for 
the period 2014 to 2020 shall be EUR 338 993 760 032 336 020 492 848  at 2011 
prices, in accordance with the annual breakdown shown in Annex II I. For the 
EN 77   EN purposes of programming and subsequent inclusion in the general budget of the 
Union, the amount of global resources shall be indexed at 2 % per year. 
2. The Commission shall adopt a decision, by means of implementing acts, setting 
out the annual breakdown of the globa l resources by Member State, without 
prejudice to paragraph 3 of th is Article and Article 84(7).  
3. 0,35 % of the global resources shall be allocated to tech nical assistance at the 
initiative of the Commission. 
Article 84 
 
Resources for Investment for growth and jobs and for European territorial 
cooperation 
1. Resources for the Investment for gr owth and jobs goal shall amount to 
96,50 96,52  % of the global resour ces (i.e., a total of 
EUR 327 115 655 850 324 320 492 844) and shall be allocated as follows: 
(a) 50,13  48,25 % (i.e., a total of EUR 163 560 715 122 162 589 839 384 ) for 
less developed regions;  
(b) 12,01 10,76 % (i.e., a total of EUR  36 471 144 190 38 951 564 661 ) for 
transition regions; 
(c) 16,39 16,35 % (i.e., a total of EUR  55 419 403 116  53 142 922 017 ) for 
more developed regions;  
(d) 21,19 20,87 % (i.e., a total of EUR 70 739 863 599 68 710 486 782 ) for 
Member States supported by the Cohesion Fund; 
(e) 0,29 0,27% (i.e., a total of EUR 924 529 823 925 680 000 ) as additional 
funding for the outermost regions iden tified in Article 349 of the Treaty 
and the NUTS level 2 regions fulfilling the criteria laid down in Article 2 of Protocol No 6 to the Treaty of  Accession of Aust ria, Finland and 
Sweden.  
All regions whose GDP per capita for the 2007-2013 period was less than 75% 
of the average of the EU-25 for the re ference period but whose GDP per capita 
is above 75% of the GDP average of the EU-27 shall receive an allocation under the Structural Funds equal to at leas t two thirds of their 2007-2013 allocation. 
2. The following criteria shall be used  for the breakdown by Member State: 
(a) eligible population, regional pros perity, national prosperity and 
unemployment rate for less developed regions and transition regions; 
(b) eligible population, regional prosper ity, unemployment rate, employment 
rate, educational level and population de nsity for more developed regions;  
(c) population, national prosperity and surface area for the Cohesion Fund. 
EN 78   EN 3. At least 25 % of the Stru ctural Funds resources for less developed regions, 40% 
for transition regions and 52% for mo re developed regions in each Member 
State shall be allocated to the ESF. For the purposes of this provision, the support to a Member State through the [Food for deprived people instrument] 
shall be considered as part of the share of Structural Funds allocated to the ESF. 
4. The support from the Cohesion Fund for transport infrastructure under the 
Connecting Europe Facility shall be EUR 10 000 000 000. 
The Commission shall adopt a decision by implementi ng act setting out the 
amount to be transferred from each Member State's Cohesion Fund allocation for the whole period. The Cohesion Fund a llocation of each Member State shall 
be reduced accordingly. 
The annual appropriations corresponding to  the support from the Cohesion Fund 
mentioned in the first subparagraph shall be entered in the re levant budget lines 
of the Connecting Europe Facility as from the 2014 budgetary exercise. 
Support from the Cohesion Fund under the C onnecting Europe Facility shall be 
implemented in accordance with Article  [13] of Regulation (EU) […]/2012 on 
establishing the Conne cting Europe Facility
29 in respect of projects listed in 
Annex 1 to that Regulation, giving grea test possible priority to projects 
respecting the national allocati ons under the Cohesion Fund. 
5. The support from the Structural Funds fo r [food for deprived  people] under the 
Investment for Growth and Jobs shall be EUR 2 500 000 000. 
The Commission shall adopt a decision by implementi ng act setting out the 
amount to be transferred from each Member State's Structural Funds allocation for the whole period in each Member Stat e. The Structural Funds allocation of 
each Member State shall be reduced accordingly. 
The annual appropriations corresponding to the support from the Structural 
Funds mentioned in the first subparagra ph shall be entered in the relevant 
budget lines of the [food for deprived  people instrument] with the 2014 
budgetary exercise. 
6. 5% of the resources for the Investment for growth and jobs goal shall constitute 
the performance reserve to be allo cated in accordance with Article 20. 
7. 0,2% of the ERDF resources for the Inve stment for growth and jobs goal shall 
be allocated to innovative actions at th e initiative of the Commission in the area 
of sustainable urban development. 
8. Resources for the European territor ial cooperation goal shall amount to 3,50 
3,48 % of the global resources  available for budgetary commitment from the 
Funds for the period 2014 to 2020 (i.e., a to tal of EUR 11 878 104 182 11 700 
000 004 ). 
                                                 
29 OJ… 
EN 79   EN Article 85 
 
Non-transferability of resources  
1. The total appropriations allocated to each Member State in respect of less 
developed regions, transition regions and more developed regions shall not be transferable between each of those categories of regions.  
2. By way of derogation from paragra ph 1, the Commission may accept, in duly 
justified circumstances which are linked to the implementation of one or more thematic objectives, a proposal by a Member  State in its first submission of the 
Partnership Contract to transfer up to 2% of the total appropriation for a 
category of regions to other categories of regions. 
Article 86 
 
Additionality  
1. For the purposes of this Article the following definitions apply: 
(1) 'public or equivalent structural expe nditure' means the Gross Fixed Capital 
Formation of the General Government reported in the Stability and Convergence Programmes prepared by Member States according to 
Council Regulation (EC) No 1466/97
30 to present their medium term 
budgetary strategy;  
(2) 'fixed assets' means all tangible or intangible assets produced as outputs 
from processes of production that ar e themselves used repeatedly, or 
continuously, in processes of production for more than one year; 
(3)  gross fixed capital formation'31 means all the resident producers' 
acquisitions, less disposals, of fixed assets during a given period and certain additions to the value of non-produced assets realised by the 
productive activity of producer or institutional units; 
(4)  'general government' means the totali ty of institutional units which, in 
addition to fulfilling their political responsibilities and their role of 
economic regulation, produce principall y non-market services (possibly 
goods) for individual or co llective consumption a nd redistribute income 
and wealth
32. 
2. Support from the Funds for the Investme nt for growth and jobs goal shall not 
replace public or equivalent structur al expenditure by a Member State. 
                                                 
30 OJ L 209, 2.8.1997, p.1.  
31 As defined by the European System of Accounts (ESA) a nd transmitted by all 27 Member States in their Stability and 
Convergence Programmes.  
32 Explanation : The general government sector consists mainly of cen tral, state and local government units together with 
social security funds imposed and controlled by those units . In addition, it includes non-pr ofit institutions engaged in non-
market production that are controlled and mainly financ ed by government units or social security funds.  
EN 80   EN 3. Member States shall maintain for the period 2014-2020 a le vel of public or 
equivalent structural expenditure at least equal to the reference level set in the Partnership Contract. 
The reference level on average per year  of public or equivalent structural 
expenditure for the years 2014-2020 shall be set in the Partnership Contract, on 
the basis of an ex ante verification by the Commission of the information 
submitted in the Partnership Contract, having regard to the average level of public or equivalent structural expe nditure per year in the period 2007-2013. 
The Commission and the Member States shall take into account the general 
macroeconomic conditions and specific or  exceptional circumstances, such as 
privatisations or an exceptional level of public or equivalent structural expenditure by a Member State in the period 2007-2013. They shall also take 
into account changes in the national allo cations from the Structural Funds as 
compared to the years 2007-2013. 
4. Verification of whether the level of public  or equivalent stru ctural expenditure 
under the Investment for growth and jobs goal has been maintained for the period shall only take place in those Member  States in which less developed and 
transition regions cover at le ast 15 % of the total population. 
In those Member States in which less developed and transitio n regions cover at 
least 70 % of the population, the verificati on shall take place at national level. 
In those Member States in which less developed and transition regions cover 
more than 15 % and less than 70 % of the population, the verification shall take 
place at national and regional level. For th at purpose, those Member States shall 
provide to the Commission information about the expenditure in the less 
developed and transition regions at each  stage of the verification process.  
5. The verification of whethe r the level of public or  equivalent structural 
expenditure under the Investment for growth and jobs goal has been maintained shall take place at the ti me of submission of the Partnership Contract ( ex ante  
verification), in 2018 (mid-term verification), and in 2022 ( ex post verification). 
The detailed rules relating to the verification of additionality are set out in point 
2 of Annex I V
II. 
6. If it is established by the Commission in the ex post  verification that a Member 
State has not maintained the reference le vel of public or equi valent structural 
expenditure under the Investment for gr owth and jobs goal set out in the 
Partnership Contract as  set out in Annex I VII, the Commission may carry out a 
financial correction. In deciding whether or not to  carry out a financial 
correction, the Commission will take  into account whether the economic 
situation of the Member State has si gnificantly changed since the mid-term 
verification and whether the change was taken into account at that time. The 
detailed rules relating to financial correct ion rates are set out in point 3 of Annex 
IVII. 
7. Paragraphs 1 to 6 shall not apply to operational pr ogrammes under the European 
territorial cooperation goal. 
EN 81   EN TITLE II  
 
PROGRAMMING 
CHAPTER I 
 
General provisions on the Funds 
Article 87 
 
Content and adoption of operational pr ogrammes under the Investment for growth 
and jobs goal 
1. An operational programme shall consist of  priority axes. A priority axis shall 
concern one Fund for a category of region and shall correspond, without 
prejudice to Article 52, to a thematic objective and comprise one or more 
investment priorities of that thematic objective, in accordance with the Fund-specific rules. For the ESF, a priority axis may combine investment priorities 
from different thematic objectives set out in Article 9(8), (9), (10) and (11) in 
order to facilitate their contribution to other priority axes, in duly justified 
circumstances. 
2. An operational programme shall set out: 
(a) a strategy for the operational prog ramme's contribution to the Union 
strategy for smart, sustainable a nd inclusive growt h, including:  
(i) an identification of needs addressing the challenges identified in the 
country-specific recommendations  under Article 121(2) and the 
Council recommendations adopted under Article 148(4) of the Treaty, and taking into account th e Integrated Guidelines and 
national and regional specificities; 
(ii) a justification of the choice of thematic objectives and corresponding 
investment priorities, having regard  to the Partnership Contract and 
the results of the ex ante  evaluation; 
(b) for each priority axis:  
(i) the investment priorities and corresponding specific objectives; 
(ii) the common and specific output and result indicators, with where 
appropriate a baseline value and a quantified target value, in accordance with the Fund-specific rules; 
(iii) a description of actions to be supported including the identification 
of the main target groups, specific territories targeted and types of 
EN 82   EN beneficiaries where appropriate an d the planned use of financial 
instruments; 
(iv) the corresponding categorie s of intervention based on a 
nomenclature adopted by the Commission by means of implementing acts in accordance with the examination procedure 
referred to Article 143(3) and an indicative breakdown of the 
programmed resources; 
(c) the contribution to the integrated appr oach for territorial development set 
out in the Partnership Contract, including: 
(i) the mechanisms that ensure coordination between the Funds, the 
EAFRD, the EMFF and other Union and national funding instruments, and with the EIB; 
(ii) where appropriate, a planned inte grated approach to the territorial 
development of urban, rural, coas tal and fisheries areas and areas 
with particular territorial features , in particular the implementation 
arrangements for Articles 28 and 29; 
(iii) the list of cities where inte grated actions for sustainable urban 
development will be implemented, the indicative annual allocation 
of the ERDF support for these actions, including the resources 
delegated to cities for management  under Article 7(2) of Regulation 
(EU) No […] [ERDF] and the indicative annual allocation of ESF support for integrated actions; 
(iv) the identification of the areas in which community-led local 
development will be implemented; 
(v) the arrangements for interregiona l and transnational actions with 
beneficiaries located in at le ast one other Member State; 
(vi) where appropriate, the contribut ion of the planned interventions 
towards macro regional strategi es and sea basin strategies; 
(d) the contribution to the integrated a pproach set out in the Partnership 
Contract to address the specific needs of geographical areas most affected 
by poverty or target groups at highest risk of discrimination or exclusion, 
with special regard to marginalis ed communities, and the indicative 
financial allocation; 
(e) arrangements to ensure the effective implementation of the Funds, 
including: 
(i) a performance framework in accordance with Article 19(1); (ii) for each ex ante  conditionality, established in accordance with 
Annex I
V, that is not fulfilled at the date of submission of the 
Partnership Contract and operation al programme, a description of 
EN 83   EN the actions to fulfil the ex ante conditionality and a timetable for 
such actions; 
(iii) the actions taken to involve the partners in the preparation of the 
operational programme, and the ro le of the partners in the 
implementation, monitoring and evaluation of the operational programme; 
(f) arrangements to ensure the efficient implementation of the Funds, 
including: 
(i) the planned use of technical assi stance including actions to reinforce 
the administrative capacity of auth orities and beneficiaries with the 
relevant information referred to in paragraph 2 (b) for the priority axis concerned; 
(ii) an assessment of the administra tive burden for beneficiaries and the 
actions planned to achieve a reduction accompanied by targets; 
(iii) a list of major projects for which the estimated start date for the 
execution of the main works is before 1 January 2018;  
(g) a financing plan containing two tables: 
(i) a table specifying for each year, in accordance with Articles 53, 110 
and 111, the amount of the total financial appropriation envisaged for 
the support from each  of the Funds; 
(ii) a table specifying, for the whole programming period, for the 
operational programme and for each pr iority axis, th e amount of the 
total financial appropriation of the support from the Funds and the 
national co-financing. Where the nati onal co-financing is made up of 
public and private co-financing, the table shall give the indicative breakdown between the public and the private components. It shall 
show, for information purposes, th e envisaged participation from the 
EIB; 
(h) the implementing provisions for the operational programme containing: 
(i) identification of the accredi ting body, the managing authority, the 
certifying authority, where appli cable, and the audit authority; 
(ii) identification of the body to which payments will be made by the 
Commission. 
3. Each operational programme, except those where technical assistance is 
undertaken under a specific operatio nal programme, shall include: 
(i) a description of specific actions to take into account environmental 
protection requirements, resource efficiency, climate change mitigation and adaptation, disaster re silience and risk  prevention and management, in 
the selection of operations; 
EN 84   EN (ii) a description of the specific act ions to promote equal opportunities and 
prevent any discrimination based on sex, ra cial or ethnic or igin, religion or 
belief, disability, age or sexual orie ntation during the preparation, design 
and implementation of the operational programme and in particular in 
relation to access to funding, taking account of the needs of the various 
target groups at risk of such di scrimination and in particular the 
requirements of ensuring accessibility for disabled persons;  
(iii) a description of its contribution to the promoti on of equality between men 
and women and, where appropriate, the arrangements to ensure the 
integration of gender perspective at  operational programme and operation 
level. 
Member States shall submit an opinion of the national equality bodies on the 
measures set out in points (ii) and (i ii) with the proposal  for an operational 
programme under the Investment for growth and jobs goal.  
4. Member States shall draft the opera tional programme according to the model 
adopted by the Commission. 
The Commission shall adopt that model by means of implementing acts. Those 
implementing acts shall be adopted in acco rdance with the advisory procedure 
referred to in Article 143(2). 
5. The Commission shall adopt a decisi on approving the operational programme 
by means of implementing acts. 
Article 88 
 
Joint support from the Funds 
1. The Funds may jointly provide support for operational programmes under the 
Investment for growth and jobs goal.  
2. The ERDF and the ESF may finance, in  a complementary manner and subject to 
a limit of 5 % of Union funding for each pr iority axis of an operational programme, 
a part of an operation for which the costs are eligible for support from the other 
Fund on the basis of eligibility rules applie d to that Fund, provi ded that they are 
necessary for the satisfactory implementa tion of the operation and are directly 
linked to it.  
3. Paragraphs 1 and 2 shall not apply to programmes under the European territorial 
cooperation goal. 
EN 85   EN Article 89 
 
Geographical scope of operational programmes under the 
Investment for growth and jobs goal 
Unless otherwise agreed between the Comm ission and the Member State, operational 
programmes for the ERDF and the ESF shall be  drawn up at the appropriate geographical 
level and at least at NUTS level 2, in accordance with the institutional system specific to the Member State.  
Operational programmes with support from the Cohesion Fund shall be drawn up at 
national level. 
 
 
CHAPTER  II 
 
MAJOR PROJECTS  
Article 90 
 
Content  
As part of an operational programme or operational programmes, the ERDF and the 
Cohesion Fund may support an operation compri sing a series of wo rks, activities or 
services intended in itself to accomplish an indivisible task of a precise economic or 
technical nature which has clearly identi fied goals and whose total cost exceeds 
EUR 50 000 000 (a 'major project'). Financial instruments shall not be considered major 
projects.  
Article 91 
 
Information to be submitted to the Commission 
1. The Member State or the managing authority shall submit the following 
information on major projects to the Comm ission as soon as preparatory work 
has been completed: 
(a) information on the body to be responsi ble for implementation of the major 
project, and its capacity 
(b) a description of and information on the investment and its location; 
(c) total cost and total elig ible cost, taking account of the requirements set out 
in Article 54;  
EN 86   EN (d) information on the feasibility studie s carried out, incl uding the options 
analysis, the results, and independent quality review; 
(e) a cost-benefit analysis, including an economic and a financial analysis, 
and a risk assessment;  
(f) an analysis of the environmental impact, taking into account climate 
change adaptation and mitigation needs, and disaster resilience; 
(g) the consistency with the relevant priority axes of the operational 
programme or programmes concerned, and its expected contribution to 
achieving the specific objectives of those priority axes; 
(h) the financing plan showing the total planned financial resources and the 
planned support from the Funds, the EIB, and all other sources of 
financing, together with physical a nd financial indicators for monitoring 
progress, taking account of the identified risks; 
(i) the timetable for implementing the major project and, where the 
implementation period is expected to  be longer than the programming 
period, the phases for which support from the Funds is requested during the 2014 to 2020 programming period. 
The Commission shall provi de indicative guidance on the methodology to be 
used in carrying out the cost-benefit anal ysis referred to in point (e) above in 
accordance with the advisory procedur e referred to in Article 143(2). 
The format for the information on major projects to be submitted shall be set up 
in accordance with the model adopted by the Commission, by means of implementing acts. Those implementing acts shall be adopted in accordance with the advisory procedure re ferred to in Article 143(2). 
2. Major projects submitted to the Commission for approval shall be contained in 
the list of major projects in an operational programme. The list shall be reviewed by the Member State or the managing authority two years following 
the adoption of an operational programme and may at the request of the Member 
State be adjusted in accordance with th e procedure set out in Article 26(2), in 
particular to include major projects with  an expected completion date by the end 
of 2022. 
Article 92 
 
Decision on a major project 
1. The Commission shall appraise the major project on the basis of the information 
referred to in Article 91 in order to  determine whether the proposed support 
from the Funds is justified. 
2. The Commission shall adopt a decision, by means of implementing act, no later 
than three months after the date of submission of the information approving a 
major project in accordance with Article  91. That decision shall define the 
EN 87   EN physical object, the amount to which the co -financing rate for the priority axis 
applies, physical and financial indicat ors for monitoring progress, and the 
expected contribution of th e major project to the obj ectives of the relevant 
priority axis or axes. An  approval decision shall be  conditional on the first 
works contract being concluded within two years of the date of the decision. 
3. Where the Commission refuses to allow s upport from the Funds to be given to a 
major project, it shall notify the Member State of its reasons within the period 
laid down in paragraph 2. 
4. Expenditure relating to major project s shall not be included in payment 
applications before adoption of an  approval decision by the Commission.  
 
CHAPTER III 
 
Joint action plan 
Article 93 
 
Scope 
1. A joint action plan is an operation defined and managed in relation to the 
outputs and results which it will achieve. It comprises a group of projects, not 
consisting in the provision of infrastructu re, carried out under the responsibility 
of the beneficiary, as part of an op erational programme or programmes. The 
outputs and results of a join t action plan shall be ag reed between the Member 
State and the Commission and shall cont ribute to specific objectives of the 
operational programmes and form the basi s of support from the Funds. Results 
shall refer to direct effects of the join t action plan. The beneficiary shall be a 
public law body. Joint action pl ans shall not be consider ed as major projects.  
2. The public support allocated  to a joint action plan shall be a minimum of 
EUR 10 000 000 or 20 % of the public s upport of the operational programme or 
programmes, whichever is lower. 
Article 94 
 
Preparation of joint action plans  
1. The Member State, the managing aut hority or any designated public law body 
may submit a proposal for a jo int action plan at the same  time as or subsequent 
to the submission of the operational progr ammes concerned. It  shall contain all 
the elements referred to in Article 95. 
2. A joint action plan shall cover part of  the period between 1 January 2014 and 31 
December 2022. The outputs and results of a joint action plan shall give rise to 
EN 88   EN reimbursement only if attained after the date of the decision  of approval of the 
joint action plan and before the end of the implementation period defined.  
Article 95 
 
Content of joint action plans  
The joint action plan shall contain: 
(1) an analysis of the development needs and objectives justifying the joint action 
plan, taking into account the objectives of the operational programmes and, where applicable, the country-speci fic recommendations and the broad 
guidelines of the economic policies of the Member States and of the Union 
under Article 121(2) and the Council recommendations which the Member States shall take into account in their employment policies under Article 148(4) 
of the Treaty; 
(2) the framework describing the relationship between the general and specific 
objectives of the joint action plan, the milestones and the targets for outputs and results, and the projects or types of projects envisaged; 
(3) the common and specific indicators used  to monitor outputs and results, where 
relevant, by priority axis;  
(4) information on the geographic coverage and target groups of  the joint action 
plan; 
(5) the expected implementation pe riod of the joint action plan; 
(6) an analysis of the effects of the joint action plan on the prom otion of equality 
between men and women and the prevention of discrimination; 
(7) an analysis of the effects of the joint action plan on the prom otion of sustainable 
development, where appropriate; 
(8) the implementing provisions for the joint action plan, including the following: 
(a) the designation of the beneficiary responsible for the implementation of 
the joint action plan, providing guarant ees of its competence in the domain 
concerned as well as its administ rative and financial management 
capacity; 
(b) the arrangements for steering the join t action plan, in accordance with 
Article 97; 
(c) the arrangements for monitoring and evaluating the joint action plan 
including arrangements ensuring the quali ty, collection and storage of data 
on the achievement of milestones, outputs and results; 
(d) the arrangements ensuring the dissemination of information and 
communication on the joint ac tion plan and on the Funds; 
EN 89   EN (9) the financial arrangements of the join t action plan, including the following: 
(a) the costs of achieving milestones, out puts and result targets with reference 
to point (2), based on the methods set out in Article 57(4) and in Article 14 
of the ESF Regulation;  
(b) an indicative schedule of payments to the beneficiary linked to the 
milestones and targets; 
(c) the financing plan by operational progr amme and priority  axis, including 
the total eligible amount and the public support.  
The format for the joint action plan shall be  set up in accordance with the model adopted 
by the Commission, by means of implementing acts. Those implemen ting acts shall be 
adopted in accordance with the advisory procedure referred to in Article 143(2).  
Article 96 
 
Decision on the joint action plan  
1. The Commission shall appraise the jo int action plan on the basis of the 
information referred to in Article 95 in order to determine whether support from 
the Funds is justified.  
Where the Commission, within three mont hs following the subm ission of a joint 
action plan proposal, considers that it doe s not meet the appraisal requirements, 
it shall make observations to the Member State. The Member State shall provide 
to the Commission all necessary additional information requested and, where appropriate, revise the joint action plan accordingly. 
2. Provided that any observations have been satisfactorily taken into account, the 
Commission shall adopt a d ecision approving the joint ac tion plan no later than 
6 months after its submission by the Memb er State but not before the adoption 
of the operational programmes concerned.  
3. The decision referred to in paragraph 2 shall indicate the beneficiary and the 
objectives of the joint action plan, the milestones and targets for outputs and 
results, the costs of achieving these mile stones, outputs and re sult targets, and 
the financing plan by operational progr amme and priority axis, including the 
total eligible amount and the public c ontribution, the implementation period of 
the joint action plan and, where relevant , the geographical c overage and target 
groups of the joint action plan.  
4. Where the Commission refuses to allow s upport from the Funds to be given to a 
joint action plan, it shall notify the Member  State of its reasons  within the period 
laid down in paragraph 2. 
EN 90   EN Article 97 
 
Steering Committee and amendment of the joint action plan 
1. The Member State or the managing au thority shall set up a steering committee 
for the joint action plan, distinct from the monitoring committee of the 
operational programmes. The steering co mmittee shall meet at least twice a 
year. 
Its composition shall be decided by th e Member State in agreement with the 
managing authority, respecting th e principle of partnership. 
The Commission may participate in the work of the steering committee in an 
advisory capacity.  
2. The steering committee shall carry out the following activities: 
(a) review progress towards achieving the milestones, outputs and results of 
the joint action plan; 
(b) consider and approve any proposal to amend the joint actio n plan in order 
to take account of any issues  affecting its performance. 
3. Requests for amendment of joint action plans submitted by a Member State shall 
be duly substantiated. The Commission shall assess whether the request for 
amendment is justified, taking account  of the information provided by the 
Member State. The Commission may make  observations and the Member State 
shall provide to the Commission all necessary additional information. The Commission shall adopt a decision on a re quest for amendment no later than 
three months after its formal submission by the Member State, provided that any 
observations made by the Commission ha ve been satisfactorily taken into 
account. The amendment shall enter into fo rce from the date of the decision, 
unless otherwise set out in the decision. 
Article 98  
Financial management and contro l of the joint action plan 
1. Payments to the beneficiary of a joint act ion plan shall be treated as lump sums 
or standard scales of unit costs. The ceiling for lump sums set out in Article 57(1)(c) shall not apply.  
2. The financial management, control and a udit of the joint action plan shall aim 
exclusively at verifying that the conditions  for payments defined in the decision 
approving the joint action plan have been fulfilled.  
3. The beneficiary and bodies acting unde r its responsibility may apply their 
accounting practices for the costs of implementing operations. These accounting 
practices and the costs actually incurred by the beneficiary shall not be subject 
to audit by the audit authority or the Commission.  
EN 91   EN  
CHAPTER IV 
Territorial development  
Article 99 
 
Integrated territorial investment  
1. Where an urban development strategy or other territorial strategy or pact as 
defined in Article 12(1) of Regulation…[ ESF] requires an integrated approach 
involving investments under more than one  priority axis of one or more 
operational programmes, the action shall be carried out as an integrated 
territorial investment (an 'ITI').  
2. The relevant operational programmes sha ll identify the ITIs planned and shall 
set out the indicative financ ial allocation from each prio rity axis to each ITI. 
3. The Member State or the managing au thority may designate one or more 
intermediate bodies, includi ng local authorities, regional development bodies or 
non-governmental organisations, to carry out the management and 
implementation of an ITI. 
4. The Member State or the relevant mana ging authorities shall ensure that the 
monitoring system for the operational pr ogramme provides for the identification 
of operations and outputs of a prior ity axis contributing to an ITI. 
 
TITLE III 
 
MONITORING,EVALUATION, INFORMATION AND 
COMMUNICATION 
CHAPTER I 
 
Monitoring and evaluation 
Article 100 
 
Functions of the monitoring committee 
1. The monitoring committee shall examine in particular: 
EN 92   EN (a) any issues that affect the perfor mance of the operational programme; 
(b) progress in implementation of the ev aluation plan and the follow-up given 
to findings of evaluations; 
(c) implementation of the communication strategy; 
(d) implementation of major projects; 
(e) implementation of joint action plans; 
(f) actions to promote equality between  men and women, equal opportunities, 
and non-discrimination, including acce ssibility for disabled persons; 
(g) actions to promote su stainable development; 
(h) actions in the operational programme relating to the fulfilment of ex ante  
conditionalities; 
(i) financial instruments. 
2. The monitoring committee shall examine and approve: 
(a) the methodology and criteria for selection of operations; 
(b) the annual and final implementation reports; 
(c) the evaluation plan for the operation al programme and any amendment of 
the plan; 
(d) the communication strategy for the operational programme and any 
amendment of the strategy; 
(e) any proposal by the managing authority for any amendment to the 
operational programme. 
Article 101 
 
Implementation reports for the Inve stment for growth and jobs goal 
1. By 30 April 2016 and by 30 April of each subsequent year until and including 
2022 the Member State shall submit to  the Commission an annual report in 
accordance with Article 44(1). The re port submitted in 2016 shall cover the 
financial years 2014 and 2015, as well as the period between the starting date for eligibility of expenditure and 31 December 2013. 
2. Annual implementation reports shall set out information on: 
(a) implementation of the operational pr ogramme in accordance with Article 
44(2); 
(b) progress in preparation and implemen tation of major projects and joint 
action plans. 
EN 93   EN 3. The annual implementation reports submitted in 2017 and 2019 shall set out and 
assess the information required under Ar ticles 44(3) and (4) respectively, the 
information set out in pa ragraph 2, together with: 
(a) progress in implementation of the in tegrated approach to territorial 
development, including sustainable urban development, and community-
led local development under the operational programme; 
(b) progress in implementation of actions to reinforce the capacity of Member 
State authorities and beneficiaries to administer and use the Funds;  
(c) progress in implementation of any in terregional and transnational actions; 
(d) progress in implementation of the ev aluation plan and the follow-up given 
to the findings of evaluations; 
(e) the specific actions taken to promote equality between men and women 
and to prevent discrimination, includi ng accessibility for disabled persons, 
and the arrangements implemented to en sure the integration of the gender 
perspective in the operational programme and operations;  
(f) actions taken to promote sustainable development in accordance with 
Article 8; 
(g) the results of the information and pub licity measures of the Funds carried 
out under the communication strategy;  
(h) progress in the implementation of acti ons in the field of social innovation, 
where appropriate;  
(i) progress in the implementation of meas ures to address the specific needs 
of geographical areas most affected  by poverty or of target groups at 
highest risk of discrimination or ex clusion, with special regard to 
marginalised communities including, where appropriate, the financial resources used; 
(j) the involvement of the partners in  the implementation, monitoring and 
evaluation of the operational programme. 
4. The annual and final implementation reports shall be drawn up following 
models adopted by the Commission by means of implementing acts. These 
implementing acts shall be adopted in acco rdance with the advisory procedure 
referred to in Article 143(2). 
Article 102 
 
Transmission of financial data 
1. By 31 January, 30 April, 31 July and 31 October, the managing authority shall 
transmit electronically to the Commission for monitoring purposes, for each operational programme and by priority axis: 
EN 94   EN (a) the total and public eligible cost of the operations and the number of 
operations selected for support; 
(b) the total and public eligible cost of contracts or other legal commitments 
entered into by beneficiaries in implementation of operations selected for support; 
(c) the total eligible expenditure declared by beneficiaries to the managing 
authority. 
2. In addition, the transmission on 31 January  shall contain the above data broken 
down by category of intervention. This tran smission shall be considered to fulfil 
the requirement for the submission of financ ial data referred to in Article 44(2).  
3. A forecast of the amount for which Me mber States expect to submit payment 
applications for the current financial year  and the subsequent financial year shall 
accompany the transmissions to be made by 31 January and 31 July. 
4. The cut-off date for the data submitted under this Article shall be the end of the 
month preceding the month of submission.  
Article 103  
 
Cohesion Report  
The report of the Commission referred to in Article 175 of the Treaty shall include: 
(a) a record of progress made on economic , social and territorial cohesion, 
including the socio-economic situation a nd development of the regions, as well 
as the integration of the Union's priorities; 
(b) a record of the role of the Funds, the EIB and the other instruments, as well as 
the effect of other Union and natio nal policies, in the progress made. 
Article 104 
 
Evaluation  
1. An evaluation plan shall be drawn up by the managing authority for each 
operational programme. The evaluation pl an shall be submitted to the first 
meeting of the monitoring committee.  Where a single monitoring committee 
covers more than one operational progr amme, an evaluation plan may cover all 
the operational programmes concerned. 
2. By 31 December 2020, managing authorities shall submit to the Commission, 
for each programme, a report summarising the findings of evaluations carried out during the programming period, includi ng an assessment of the main outputs 
and results of the programme. 
3. The Commission shall carry out ex post evaluations in close cooperation with 
the Member States and managing authorities.  
EN 95   EN  
CHAPTER II 
 
Information and Communication 
Article 105 
 
Information and publicity  
1. Member States and managing auth orities shall be responsible for:  
(a) ensuring the establishment of a single website or a single website portal 
providing information on, and access to, all operational programmes in that Member State; 
(b) informing potential be neficiaries about fund ing opportunities under 
operational programmes; 
(c) publicising to Union citizens the role and achievements of cohesion policy 
and of the Funds through informa tion and communication actions on the 
results and impact of Partnership C ontracts, operational programmes and 
operations. 
2. Member States shall in order to ensure  transparency in the support of the Funds 
maintain a list of operations by opera tional programme and by Fund in CSV or 
XML format which shall be accessible th rough the single webs ite or the single 
website portal providing a list and summ ary of all operational programmes in 
that Member State. 
The list of operations shall be updat ed at least every three months.  
The minimum information to be set out in the list of operations is laid down in 
Annex V I
.  
3. Detailed rules concerning the information and publicity measures for the public 
and information measures for applicants and for beneficiaries are laid down in 
Annex V I. 
4. Technical characteristics of information and publicity measures for the operation 
and instructions for creating the emblem and a definition of the standard colours 
shall be adopted by the Commission by means of implementing acts in 
accordance with the examination pro cedure referred to Article 143(3). 
EN 96   EN Article 106 
 
Communication strategy 
1. The managing authority shall draw up a communication strategy for each 
operational programme. A common communi cation strategy may be drawn up 
for several operational programmes.  
The communication strategy shall include  the elements set out in Annex V I and 
annual updates with details of the planned information and pub licity activities to 
be carried out.  
2. The communication strategy shall be discussed and approved by the first 
monitoring committee following the adop tion of the operational programme.  
Any revision of the communication strate gy shall be discussed in, and approved 
by, the monitoring committee. 
3. The managing authority shall info rm the monitoring committee for each 
operational programme at least once a year  of progress in the implementation of 
the communication strategy and it s assessment of the results. 
Article 107 
 
Information and communication officers and their networks 
1. Each Member State shall designate an information and communication officer to 
coordinate information and communication actions in relation to one or several 
Funds and shall inform the Commission accordingly. 
2. The information and communication officer  shall coordinate and chair meetings 
of a national network of Funds' communi cators, including relevant European 
territorial cooperation programmes, the cr eation and maintenance of the website 
or website portal referred to in Annex V I and the obligation to provide an 
overview about communication measur es undertaken at national level. 
3. Each managing authority shall designa te one person to be responsible for 
information and communication at opera tional programme level and shall 
inform the Commission of those designated. 
4. Union networks comprising the members designated by the Member States and 
the managing authorities shall be set up by the Commission to ensure exchange 
on the results of the implementation of the communicati on strategies, the 
exchange of experience in implemen ting the information and communication 
measures, and the exchange of good practices. 
EN 97   EN  
TITLE IV  
 
TECHNICAL ASSISTANCE 
Article 108 
 
Technical assistance at the initiative of the Commission 
The Funds may support technical assistance up to a ceiling of 0,35 % of their respective 
annual allocation. 
Article 109 
 
Technical assistance of the Member States 
1. Each of the Funds may finance techni cal assistance operati ons eligible under 
any of the other Funds. The amount of  the Funds allocated to technical 
assistance shall be limited to 4% of th e total amount of the Funds allocated to 
operational programmes under each category of region of the Investment for 
growth and jobs goal. 
2. Technical assistance shall take the form of a mono-fund priority  axis within an 
operational programme or of a sp ecific operational programme.  
3. The allocation for technical assistance fr om a Fund shall not exceed 10% of the 
total allocation of that Fund to operational programme s in a Member State under 
each category of region of the Invest ment for growth and jobs goal.  
 
TITLE V 
 
FINANCIAL SUPPORT FROM THE FUNDS 
Article 110 
 
Determination of co-financing rates 
1. The Commission decision adopting an ope rational programme shall fix the co-
financing rate and the maxi mum amount of support from Funds for each priority 
axis. 
2 For each priority axis, the Commission decision shall set out whether the co-
financing rate for the priority axis will be applied to: 
EN 98   EN (a) total eligible expenditure, includi ng public and private expenditure; or 
(b) public eligible expenditure. 
3. The co-financing rate at the level of each priority axis of operational 
programmes under the Investment for growth and jobs goal shall be no higher than: 
(a) 85 % for the Cohesion Fund; 
(b) 85 % for the less developed regions of Member States whose average 
GDP per capita for the period 2007 to  2009 was below 85 % of the EU-27 
average during the same period a nd for the outermost regions; 
(c) 80% for the less developed regions of  Member States other than those 
referred to in point (b) eligible for the transitional regime of the Cohesion Fund on 1 January 2014; 
(d) 75% for the less developed regions of  Member States other than those 
referred to in points (b) and (c), an d for all regions whose GDP per capita 
for the 2007-2013 period was less than 75% of the averag e of the EU-25 
for the reference period but whose GDP  per capita is above 75% of the 
GDP average of the EU-27; 
(e) 60 % for the transition regions other th an those referred to in point (d); 
(f) 50 % for the more developed regions ot her than those refe rred to in point 
(d). 
The co-financing rate at the level of  each priority axis of operational 
programmes under the European territorial  cooperation goal shall be no higher 
than 75%. 
4. The co-financing rate of the additional allocation in accordance with Article 
84(1)(e) shall be no hi gher than 50%.  
The same co-financing rate shall a pply to the additional allocation under 
Article 4(2) of Regulation (EU)  No […]/2012 [ETC Regulation]. 
5. The maximum co-financing rate under paragr aph 3 at the level of a priority axis 
shall be increased by ten percentage points,  where the whole of a priority axis is 
delivered through financial instrument s, or through community-led local 
development. 
6. The contribution from the Funds for each priority axis shall not be less than 20 
% of the eligible public expenditure. 
7. A separate priority axis with a co-f inancing rate of up to 100% may be 
established within an op erational programme to support operations implemented 
through financial instruments set up at Union level and managed directly or 
indirectly by the Commission. Where a sepa rate priority is es tablished for this 
purpose, the support under this axis ma y not be implemented by any other 
means. 
EN 99   EN Article 111  
 
Modulation of the co-financing rates  
The co-financing rate from the Funds to a prio rity axis may be modulated to take account 
of: 
(1) the importance of the priority axis for the delivery of the Union strategy for 
smart, sustainable and inclusive growth, ha ving regard to the specific gaps to be 
addressed; 
(2) protection and improvement of the e nvironment, principally through the 
application of the precautiona ry principle, the principle of preventive action and 
the polluter pays principle; 
(3) the rate of mobilisation of private financing; 
(4) the coverage of areas with severe and permanent natural or demographic 
handicaps defined as follows: 
(a) island Member States eligible under the Cohesion Fund, and other islands 
except those on which the capital of a Member State is situated or which have a fixed link to the mainland; 
(b) mountainous areas as defined by the na tional legislation of the Member 
State; 
(c) sparsely (less than 50 inhabitants per square kilometre) and very sparsely 
(less than 8 inhabitants per squa re kilometre) populated areas. 
 
TITLE VI 
 
MANAGEMENT AND CONTROL 
CHAPTER I 
 
Management and control systems 
Article 112 
 
Responsibilities of Member States 
1. Member States shall ensure that management and control systems for 
operational programmes are set up in accordance with Articles 62 and 63.  
2. Member States shall prevent, detect a nd correct irregulariti es and shall recover 
amounts unduly paid, together with any inte rest on late payments. They shall 
EN 100   EN notify these irregularities to the Commission and shall keep the Commission 
informed of the progress of related administrative and legal proceedings. 
When amounts unduly paid to a beneficiary cannot be recovered and this is as a 
result of fault or negligence on the part  of a Member State, the Member State 
shall be responsible for reimbursing the amounts concerned to the general budget of the Union. 
The Commission shall be empowered to a dopt delegated acts in accordance with 
Article 142 laying down detailed rule s concerning the obligations of the 
Member States specified in this paragraph.  
3. Member States shall ensure that no later than 31 December 2014, all exchanges 
of information between beneficiaries and managing authorities, certifying 
authorities, audit authorities and intermedia te bodies can be carried out solely by 
means of electronic data exchange systems. 
The systems shall facilitate interoperabi lity with national and Union frameworks 
and allow for the beneficiaries to submit all information referred to in the first sub-paragraph only once. 
The Commission shall adopt, by means of  implementing acts, detailed rules 
concerning the exchanges of info rmation under this paragraph. Those 
implementing acts shall be adopted in accordance with the examination 
procedure referred to  in Article 143(3). 
 
CHAPTER II 
 
Management and control authorities 
Article 113 
 
Designation of authorities 
1. The Member State shall designate, for each operational programme, a national, 
regional or local public authority or b ody as managing authority. The same public 
authority or body may be designated as a managing authority for more than one 
operational programme. 
2. The Member State shall designate, for each operational programme, a national, 
regional or local public authority or body as a certifying authority, without 
prejudice to paragraph 3. Th e same certifying authority  may be designated for 
more than one operational programme. 
3. The Member State may designate fo r an operational programme a managing 
authority which carries out in addition the functions of the certifying authority. 
EN 101   EN 4. The Member State shall designate, for each operational programme, a national, 
regional or local publ ic authority or body, functiona lly independent from the 
managing authority and the certifying aut hority, as audit authority. The same 
audit authority may be designated for more than one operational programme. 
5. For the Investment for gr owth and jobs goal, provid ed that the principle of 
separation of functions is respected, the managing authority, the certifying authority, where applicable, and the audit au thority may be part of the same public 
authority or body. However, for those operational progra mmes for which the total 
amount of support from the Funds exceeds EUR 250 000 000, the audit authority 
may not be part of the sa me public authority or body as the managing authority. 
6. The Member State may designate one or more intermediate bodies to carry out 
certain tasks of the managing or the certi fying authority under the responsibility 
of that authority. The relevant arrangem ents between the managing authority or 
certifying authority and the intermediate bodies shall be formally recorded in writing. 
7. The Member State or the managing auth ority may entrust the management of 
part of an operational programme to an intermediate body by way of an 
agreement in writing betw een the intermediate body a nd the Member State or 
managing authority (a 'global grant').  The intermediate body shall provide 
guarantees of its solvency and competen ce in the domain concerned, as well as 
its administrative and financial management.  
8. The Member State shall la y down in writing rules govern ing its relations with the 
managing authorities, certifyi ng authorities and audit au thorities, the relations 
between such authorities, an d the relations of such authorities with the Commission. 
Article 114  
 
Functions of the managing authority  
1. The managing authority shall be re sponsible for managing the operational 
programme in accordance with the prin ciple of sound financial management.  
2. As regards the programme management  of the operational programme, the 
managing authority shall: 
(a) support the work of the monitoring committee and provide it with the 
information it requires to carry out its tasks, in particular data relating to 
the progress of the operational pr ogramme in achieving its objectives, 
financial data and data relati ng to indicators and milestones; 
(b) draw up and, after approval by the monitoring committee, submit to the 
Commission annual and final implementation reports; 
(c) make available to intermediate bodies and beneficiaries information that is 
relevant to the execution of their tasks and the implementation of operations respectively; 
EN 102   EN (d) establish a system to record and store in computerised form data on each 
operation necessary for monitoring, evaluation, financial management, 
verification and audit, including da ta on individual participants in 
operations, where applicable; 
(e) ensure that the data referred to in point (d) is collected, entered and stored 
in the system, and that data on indi cators is broken down by gender where 
required by Annex I of the ESF Regulation. 
3. As regards the selection of opera tions, the managing authority shall: 
(a) draw up and, once approved, apply appr opriate selection procedures and 
criteria that: 
(i) are non-discriminatory and transparent; (ii) take into account the general prin ciples set out in Articles 7 and 8;  
(b) ensure that a selected operation falls within the scope of the Fund or Funds 
concerned and within a category of intervention identified in the priority axis or axes of the operational programme; 
(c) provide to the beneficiary a document setting out the conditions for support 
for each operation including the specific requirements concerning the products or services to be delive red under the operation, the financing 
plan, and the time-limit for execution; 
(d) satisfy itself that the beneficiary has the administrative, financial and 
operational capacity to fulfil the cond itions defined in point (c) before 
approval of the operation; 
(e) satisfy itself that, where the operation has started before the submission of 
an application for funding to the ma naging authority, Union and national 
rules relevant for the operat ion have been complied with; 
(f) ensure that an applicant does not recei ve support from the Funds where it 
has been, or should have been, subject to a procedure of recovery in accordance with Article 61 following the relocation of a productive 
activity within the Union; 
(g) determine the categories of intervention to which the expenditure of an 
operation shall be attributed. 
4. As regards the financial management and control of the operational programme, 
the managing authority shall: 
(a) verify that the co-finan ced products and services have been delivered and 
that expenditure declared by the bene ficiaries has been paid by them and 
that it complies with applicable Union and national law, the operational programme and the conditions for support of the operation; 
(b) ensure that beneficiaries involved in the implementation of operations 
reimbursed on the basis of eligible cost s actually incurred maintain either 
EN 103   EN a separate accounting system or an adequate accounting code for all 
transactions relating to an operation; 
(c) put in place effective and proportiona te anti-fraud measures taking into 
account the risks identified; 
(d) set up procedures to ensure that all documents regarding expenditure and 
audits required to ensure an adequate audit trail are held in accordance with 
the requirements of Article 62(g); 
(e) draw up the management declaration of assurance on the functioning of 
the management and control system , the legality and regularity of 
underlying transactions and the respect of the principle of sound financial 
management, together with a report se tting out the results of management 
controls carried out, any weaknesses  identified in the management and 
control system and any corrective action taken. 
5. Verifications pursuant to paragraph 4(a)  shall include the following procedures: 
(a) administrative verifications in respect of each application for 
reimbursement by beneficiaries; 
(b) on-the-spot verifications of operations. 
The frequency and coverage of the on-the-spot verifications shall be 
proportionate to the amount of public support to an operation and the level of 
risk identified by these verifications and audits by the audit authority for the management and control system as a whole. 
6. On-the-spot verifications of individua l operations pursuant to paragraph (5)(b) 
may be carried out on a sample basis. 
7. Where the managing authority is also  a beneficiary under the operational 
programme, arrangements for the verificati ons referred to in paragraph 4(a) shall 
ensure adequate sepa ration of functions. 
8. The Commission shall adopt delegated act s, in accordance with Article 142, 
laying down the modalities of the exchange of information in paragraph 2(d). 
9. The Commission shall adopt delegated act s, in accordance with Article 142, 
laying down rules concerning  arrangements for the audit trail referred to in 
paragraph 4(d).  
10. The Commission shall adopt, by means of implementing acts, the model for the 
management declaration referred to in paragraph 4(e). Those implementing acts 
shall be adopted in accordance with the ad visory procedure referred to in Article 
143(2). 
EN 104   EN Article 115 
 
Functions of the certifying authority 
The certifying authority of an operational progr amme shall be responsible in particular 
for: 
(a) drawing up and submitting to the Co mmission payment applications and 
certifying that these result from reliab le accounting systems, are based on 
verifiable supporting documents and have been subject to ve rifications by the 
managing authority; 
(b) drawing up the annual accounts; 
(c) certifying the completeness, accuracy and veracity of the annual accounts and 
that the expenditure entered in the acc ounts complies with applicable Union and 
national rules and has been incurred in respect of operations selected for funding 
in accordance with the criteria appli cable to the operational programme and 
complying with Union and national rules; 
(d) ensuring that there is a system which r ecords and stores, in computerised form, 
accounting records for each operation, and which s upports all the data required 
for drawing up payment applications an d annual accounts, including records of 
amounts recoverable, amounts recove red and amounts withdrawn following 
cancellation of all or part of the cont ribution for an opera tion or operational 
programme; 
(e) ensuring for the purposes of drawing up and submission of payment applications 
that it has received adequate informa tion from the managing authority on the 
procedures and verifications carried  out in relation to expenditure;  
(f) taking account when drawing up and submitting payment applications the 
results of all audits carried out by or  under the responsibility of the audit 
authority;  
(g) maintaining accounting records in a comput erised form of expenditure declared 
to the Commission and the correspondi ng public contri bution paid to 
beneficiaries; 
(h) keeping an account of amounts rec overable and of amounts withdrawn 
following cancellation of all or part of  the contribution for an operation. 
Amounts recovered shall be repaid to th e general budget of the Union prior to 
the closure of the operational progra mme by deducting them from the next 
statement of expenditure. 
EN 105   EN Article 116 
 
Functions of the audit authority 
1. The audit authority shall ensure that audits are carried out on the management 
and control systems, on an appropriate sample of operations and on the annual 
accounts. 
The Commission shall be empowered to adopt delegated acts in accordance with 
Article 142 to set out the conditions  which those audits shall fulfil.  
2. Where audits are carried out by a body ot her than the audit authority, the audit 
authority shall ensure that any such  body has the necessary functional 
independence. 
3. The audit authority shall ensure that au dit work takes account of internationally 
accepted audit standards. 
4. The audit authority shall, within si x months of adoption of an operational 
programme, prepare an audit strategy for performance of audits. The audit strategy shall set out the audit methodol ogy, the sampling method for audits on 
operations and the planning of audits in relation to the current accounting year 
and the two subsequent accounting years. The audit strategy shall be updated 
annually from 2016 until and including 2022. Where a common management 
and control system applies to more th an one operational programme, a single 
audit strategy may be prepared for th e operational programmes concerned. The 
audit authority shall submit the audit strategy to the Commission upon request. 
5. The audit author ity shall draw up: 
(i) an audit opinion on the annual accounts for the preceding accounting year, 
whose scope shall cover the completene ss, accuracy and veracity of the 
annual accounts, the func tioning of the management and control system 
and the legality and regularity of the underlying transactions; 
(ii) an annual control repo rt setting out the findings of the audits carried out 
during the preceding accounting year. 
The report under point (ii) shall set out any deficiencies found in the 
management and control system and any corrective measures taken or proposed 
to be taken. 
Where a common management and control system applies to more than one 
operational programme, the information required under point (ii) may be 
grouped in a single report. 
6. The Commission shall adopt, by means of  implementing acts, models for the 
audit strategy, the audit opinion and the annual control report, as well as the 
methodology for the sampling method refe rred to in paragraph 4. These 
implementing acts shall be adopted in accordance with the examination procedure referred to  in Article 143(3). 
EN 106   EN 7. Implementing rules concerning the use of  data collected during audits carried out 
by Commission officials or au thorised Commission  representatives shall be adopted 
by the Commission in accordance with the examination procedure referred to in Article 143(3). 
CHAPTER III 
 
Accreditation 
Article 117 
 
Accreditation and withdrawal of accreditation of the managing authority and the 
certifying authority 
1. The accrediting body shall adopt a formal decision to accredit those managing 
authorities and certifying authorities that  comply with the accreditation criteria 
that have been established by the Co mmission by means of delegated acts in 
accordance with Article 142. 
2. The formal decision referred to in paragr aph 1 shall be based on a report and an 
opinion of an independent audit body that  assesses the management and control 
system, including the role of intermediate bodies therein, and its compliance 
with Articles 62, 63, 114 and 115. The accrediting body shall take into account 
whether the management and control sy stems for the operatio nal programme are 
similar to those in place for the previ ous programming period, as well as any 
evidence of their effective functioning.  
3. The Member State shall submit the formal  decision referred to in paragraph 1 to 
the Commission within six months of th e adoption of the decision adopting the 
operational programme. 
4. Where the total amount of support from the Funds to an operational programme 
exceeds EUR 250 000 000 the Commission may request, within two months of 
receipt of the formal decision referred to in paragraph 1, the report and the 
opinion of the independent audit body a nd the description of the management 
and control system.  
The Commission may make observations with in two months of receipt of these 
documents.  
In deciding whether to reque st those documents, the Co mmission shall take into 
account whether the management and control systems for the operational programme are similar to those in pl ace for the previous programming period, 
whether the managing authority also carri es out the functions of the certifying 
authority, and any evidence of their effective functioning.  
EN 107   EN Article 118 
 
Cooperation with audit authorities 
1. The Commission shall cooperate with aud it authorities to coordinate their audit 
plans and methods and shall immediately exchange the results of audits carried out on management and control systems.  
2. To facilitate this cooperation in case s where a Member State designates more than 
one audit authority, the Member Stat e may designate a coordination body. 
3. The Commission, the audit authorities and any coordination body shall meet on 
a regular basis and at least once a year, unless otherwise agreed, to examine the 
annual control report, the opinion and the audit strategy, and to exchange views 
on issues relating to im provement of the management and control systems. 
 
TITLE VII 
FINANCIAL MANAGEMENT, CLEARANCE OF 
ACCOUNTS AND FINANCIAL CORRECTIONS 
CHAPTER I 
 
Financial management 
Article 119  
 
 Common rules for payments 
The Member State shall ensure  that at the latest by the closure of the operational 
programme, the amount of public support paid to beneficiaries is at least equal to the 
contribution from the Funds paid by th e Commission to the Member State. 
Article 120 
 
Common rules for calculating interim p ayments and payment of the annual and 
final balance 
1. The Commission shall reimburse as in terim payments 90% of the amount 
resulting from applying the co-financing rate  for each priority axis laid down in 
the decision adopting the ope rational programme to the eligible expenditure for 
the priority axis included in the paym ent application. It shall determine the 
annual balance in accordan ce with Article 130(1). 
2. The contribution from the Funds to a pr iority axis through th e interim payments 
and payment of the annual and the fi nal balance shall not be higher than: 
EN 108   EN (a) the public support indicated in the pa yment application for the priority 
axis; and 
(b) the contribution from the Funds for th e priority axis laid down in the 
decision of the Commission appr oving the operational programme. 
3. Notwithstanding Article 22, the Union support through the interim payments 
and payments of the final balance shall not be higher than th e public support and 
the maximum amount of support from the Fu nds for each priority axis as laid 
down in the decision of the Commissi on approving the operational programme. 
Article 121 
 
Payment applications  
1. Payment applications shall in clude, for each priority axis: 
(a) the total amount of elig ible expenditure paid  by beneficiaries in 
implementing operations, as entered into the accounts of the certifying 
authority;  
(b) the total amount of public support incu rred in implementing operations, as 
entered into the accounts of the certifying authority; 
(c) the corresponding eligible  public support which ha s been paid to the 
beneficiary, as entered into the acco unts of the cer tifying authority.  
2. Expenditure included in a payment app lication shall be sup ported by receipted 
invoices or accounting documents of equivalent probative value, except for forms of support under Articles 57 (1) (b ) (c) and (d), 58, 59 (1) and 93 and 
under Article 14 of the Regulation (E U) No […]/2012 of the European 
Parliament and of the Council of the European Social Funds and repealing 
Regulation (EC) No 1081/2006 [ESF]. Fo r such forms of support, the amounts 
included in a payment a pplication shall be the costs reimbursed to the 
beneficiary by the managing authority.  
3. The Commission shall adopt, by means of implementing acts, the model for 
payment applications. These implementing acts shall be adopted in accordance 
with the advisory procedure re ferred to in Article 143(2). 
Article 122 
 
Payment to beneficiaries 
Managing authorities shall ensu re that the beneficiaries re ceive the total amount of the 
public support as quickly as possible and in fu ll and in any event before the inclusion of 
the corresponding expenditure in the payment application. No amount shall be deducted 
or withheld and no specific char ge or other charge with equiva lent effect shall be levied 
that would reduce these amount s for the beneficiaries. 
EN 109   EN Article 123 
 
Use of the euro 
1. Member States which have not adopted th e euro as their currency on the date of 
an application for payment shall convert  the amounts of expenditure incurred in 
national currency into euro. This amount shall be converted into euro using the 
monthly accounting exchange rate of  the Commission in the month during 
which the expenditure was registered in  the accounts of the managing authority 
of the operational programme concerne d. This rate shall be published 
electronically by the Commission each month.  
2. When the euro becomes the currency  of a Member State, the conversion 
procedure set out in paragraph 1 shall continue to apply to all expenditure 
recorded in the accounts by the managing authority before the date of entry into force of the fixed conversion rate between the national currency and the euro.  
Article 124 
 
Payment of pre-financing 
1. The initial pre-financing amount shall be paid in instalments as follows: 
(a) in 2014: 2 % of the amount of support from the Funds for the entire 
programming period to th e operational programme; 
(b) in 2015: 1 % of the amount of support from the Funds for the entire 
programming period to th e operational programme; 
(c) in 2016: 1 % of the amount of support from the Funds for the entire 
programming period to the operational programme. 
If an operational programme is adopted in  2015 or later, the earlier instalments 
shall be paid in th e year of adoption. 
2. An annual pre-financing amount shall be paid before 1 July in the years 2016 to 
2022. In 2016, it shall be 2 % of the amount of the support from the Funds for 
the whole programming period to the ope rational programme. In the years 2017 
to 2022, it shall be 2,5% of the amount of the support from the Funds for the whole programming period to the operational programme. 
Article 125 
 
Clearance of pre-financing  
The amount paid as annual pre-financing sh all be cleared from the Commission accounts 
in accordance with Article 130. 
EN 110   EN Article 126 
 
Deadlines for presentation of interim p ayment applications and for their payment 
1. The certifying authority shall submit on a regular basis an application for 
interim payment covering amounts entered in  its accounts as public support paid 
to beneficiaries in the acc ounting year ending 30 June. 
2. The certifying authority shall submit the final application for interim payment 
by 31 July following the end of the previous accounting year and, in any event, before the first application for inter im payment for the next accounting year. 
3. The first application for interim payment shall not be made before the formal act 
accrediting the managing authority ha s been received by the Commission. 
4. Interim payments shall not be made for an operational programme where the 
annual implementation report has not been sent to the Commission in 
accordance with Article 101.  
5. Subject to available fu nding, the Commission shall make the interim payment 
no later than 60 days after the date on wh ich a payment application is registered 
with the Commission.  
Article 127  
 
Decommitment  
1. The Commission shall decommit any pa rt of the amount calculated in 
accordance with the second subparagraph in  an operational programme that has 
not been used for payment of the initial and annual pre-financing, interim payments and annual balance by 31 December of the second financial year following the year of budget commitment  under the operational programme or 
for which a payment application drawn up in accordance with Article 121 has 
not been submitted in accordance with Article 126. 
For the purposes of the decommitment, the Commission shall calculate the 
amount by adding one sixth of the annua l budget commitment related to the 
2014 total annual contributi on to each of the 2015 to 2020 budget commitments. 
2. By way of derogation from the first subparagraph of paragraph 1, the deadlines 
for decommitment shall not apply to the annual budget commitment related to the 2014 total annual contribution. 
3. If the first annual budget commitment  is related to the 2015 total annual 
contribution, by way of derogation fr om paragraph 1, the deadlines for 
decommitment shall not apply to the annual budget commitment related to the total annual contribution of 2015. In such  cases, the Commission shall calculate 
the amount under the first sub-paragraph of  paragraph 1 by a dding one fifth of 
the annual budget commitment related to the 2015 total amount contribution to each of the 2016 to 2020 budget commitments. 
EN 111   EN 4. That part of commitments still ope n on 31 December 2022 shall be decommitted 
if any of the documents required under Ar ticle 130(1) has not been submitted to 
the Commission by 30 September 2023. 
CHAPTER II 
 
Clearance of acco unts and closure  
SECTION I  
 
CLEARANCE OF ACCOUNTS  
Article 128 
 
Content of the annual accounts 
1. The certified annual account s for each operational pr ogramme shall cover the 
accounting year and shall include at the level of each priority axis: 
(a) the total amount of eligible expenditu re entered into th e accounts of the 
certifying authority as having been pa id by beneficiaries in implementing 
operations and the corresponding eligible public support which has been 
paid and the total am ount of public support incurred in implementing 
operations; 
(b) the amounts withdrawn and recovere d during the accounting year, the 
amounts to be recovered as at th e end of the accounting year, the 
recoveries effected pursuant to Artic le 61, and the irrecoverable amounts; 
(c) for each priority axis, the list of operations completed during the 
accounting year that were suppor ted by ERDF and Cohesion Fund; 
(d) for each priority axis, a reconcilia tion between the expenditure stated 
pursuant to point (a) and the expenditure  declared in respect of the same 
accounting year in payment applicati ons, accompanied by an explanation 
of any differences. 
2. The certifying authority may specify by pr iority axis in the accounts a provision, 
which shall not exceed 5 % of the total expenditure in payment applications 
presented for a given accounting year, where the assessment of the legality and regularity of the expenditure is subject to an ongoing procedure with the audit 
authority. The amount covered shall be excluded from the total amount of 
eligible expenditure refe rred to in paragraph 1(a). These amounts shall be 
definitively included in, or excluded from , the annual accounts of the following 
year.  
EN 112   EN Article 129 
 
Submission of information 
For each year from 2016 until and including 2022, the Member State shall submit the 
documents referred to in Article 75(1).  
Article 130 
 
Annual clearance of accounts 
1. For the purposes of calc ulating the amount chargeab le to the Funds for an 
accounting year, the Commission shall take into account: 
(a) the total amount of expenditure en tered into the accounts referred to in 
Article 128(1)(a), to which shall be a pplied the co-financi ng rate for each 
priority axis; 
(b) the total amount of payments made by the Commi ssion during that 
accounting year, consisting of: 
(i) the amount of interim payments paid by the Commission in 
accordance with Article 120(1)  and Article 22; and  
(ii) the amount of the annual pre-fi nancing paid under Article 124(2). 
2. The annual balance which, as a result of the clearance of accounts, is 
recoverable from the Member State shall be subject to a recovery order of the 
Commission. The annual balance payable to the Member State shall be added to 
the next interim payment made by th e Commission following the clearance of 
accounts. 
3. If, for reasons attributable to a Member State, the Commission is not in a 
position to clear the accounts by 30 April of the year following the end of an 
accounting year, the Commission shall notif y the Member State of the actions 
that must be undertaken by the managing au thority or audit au thority, or of the 
additional enquiries the Commission propos es to undertake pursuant to Article 
65(2) and (3). 
4. Payment of the annual balance by the Commission shall be based on the 
expenditure declared in th e accounts, net of any provision made in respect of 
expenditure declared to the Commission which is subject to a contradictory 
procedure with th e audit authority. 
Article 131 
 
Rolling Closure 
1. For the ERDF and the Cohesion Fund, the annual accounts for each operational 
programme shall include at the level of each priority axis the list of operations 
completed during the accounting year. The expenditure relating to these 
EN 113   EN operations included in the accounts subjec t to the clearance decision shall be 
considered as closed. 
2. For the ESF, the expenditure included in the accounts that are subject to a 
clearance decision shall be considered as closed. 
Article 132 
 
Availability of documents 
1. Without prejudice to the rules governi ng State aid, the managing authority shall 
ensure that all supporting documents on op erations are made available to the 
Commission and the European Court of Auditors upon request for a period of 
three years. This three year period shall run from 31 December of  the year of the 
clearance of accounts decision  pursuant to Article 130 or , at the latest, from the 
date of payment of the final balance. 
This three year period shall be interrupted either in the case of legal or 
administrative proceedings or by a duly justified request of the Commission. 
2. The documents shall be kept either in the form of the originals, or certified true 
copies of the originals, or on co mmonly accepted data carriers including 
electronic versions of orig inal documents or documents  existing in electronic 
version only. 
3. The documents shall be kept in a form which permits identification of data 
subjects for no longer than is  necessary for the purposes for which the data were 
collected or for which they are further processed. 
4. The Commission shall be empowered to adopt delegated acts in accordance with 
Article 142 to set out which data car riers can be considered as commonly 
accepted.  
5. The procedure for certification of conf ormity of documents held on commonly 
accepted data carriers with the original  document shall be laid down by the 
national authorities and shall ensure that the versions held comply with national 
legal requirements and can be  relied on for audit purposes. 
6. Where documents exist in electronic ve rsion only, the computer systems used 
must meet accepted security standards that ensure that the documents held comply with national legal requirements and can be relied on for audit purposes. 
EN 114   EN  
SECTION II  
 
CLOSURE OF OPERATIONAL PROGRAMMES  
Article 133 
 
 Submission of closure documents and payment of the final balance 
1. Member States shall submit the following documents by 30 September 2023: 
(a) an application for payment of the final balance; 
(b) a final implementation report for the operational programme; and 
(c) the documents referred to in Articl e 75(1) for the final accounting year, 
from 1 July 2022 to 30 June 2023.  
2. The final balance shall be paid no late r than three months after the date of 
clearance of accounts of the final accounting year or one month after the date of 
acceptance of the final implementation report, whichever date is later. 
SECTION III 
 
SUSPENSION OF PAYMENTS  
Article 134 
 
 Suspension of payments 
1. All or part of the interim payments at the level of pr iority axes or operational 
programmes may be suspended by the Commission where:  
(a) there is a serious deficiency in the management and control system of the 
operational programme for which corre ctive measures have not been 
taken;  
(b) expenditure in a statement of expend iture is linked to an irregularity 
having serious financial consequences  which has not been corrected;  
(c) the Member State has failed to take  the necessary action to remedy the 
situation giving rise to an interruption under Article 74; 
(d) there is a serious deficiency in the qu ality and reliability of the monitoring 
system or of the data on co mmon and specific indicators; 
(e)  the Member State has failed to undert ake actions set out in the operational 
programme relating to fulfilment of an ex ante  conditionalities; 
EN 115   EN (f) there is evidence resulting from a perf ormance review that a priority axis 
has failed to achieve the milestones se t out in the performance framework; 
(g) the Member State fails to respond or  does not reply sa tisfactorily under 
Article 20(3). 
2. The Commission may decide, by means of implementing acts, to suspend all or 
part of interim payments, after having given the Member State the opportunity 
to present its observations. 
3. The Commission shall end suspension of al l or part of interim payments where 
the Member State has taken the necessary measures to enable the suspension to 
be lifted.  
 
CHAPTER III 
 
Financial corrections 
SECTION I 
 
FINANCIAL CORRECTIONS BY MEMBER STATES  
Article 135 
 
 Financial corrections by Member States 
1. The Member States shall in the first instance be responsible for investigating 
irregularities and for ma king the financial correctio ns required and pursuing 
recoveries. In the case of a systemic irregu larity, the Member State shall extend its 
investigation to cover all ope rations potentially affected. 
2. The Member State shall make the financia l corrections required in connection with 
individual or systemic irregularities detected in operations or operational 
programmes. Financial corrections shall co nsist of cancelling all or part of the 
public contribution to an operation or  operational programme. The Member 
State shall take into account the nature and gravity of the irregularities and the financial loss to the Funds and shall apply a proportionate correction. Financial corrections shall be recorded in the annual accounts by the managing authority for the accounting year in which the cancellation is decided.  
3. The contribution from the Funds cancelled in accordance with paragraph 2 may 
be reused by the Member State within  the operational programme concerned, 
subject to paragraph 4. 
4. The contribution cancelled in accordan ce with paragraph 2 may not be reused 
for any operation that was the subject of the correction or, where a financial 
EN 116   EN correction is made for a systemic irre gularity, for any operation affected by the 
systemic irregularity. 
SECTION II 
 
FINANCIAL CORRECTIONS BY THE COMMISSION  
Article 136 
 
 Criteria for financial corrections 
1. The Commission shall make financial corrections by mean s of implementing 
acts by cancelling all or pa rt of the Union contri bution to an operational 
programme in accordance with Article  77 where, after carrying out the 
necessary examination, it concludes that: 
(a) there is a serious deficiency in the management and control system of the 
operational programme which has put at risk the Union contribution 
already paid to the operational programme; 
(b) the Member State has not complied with its obligations under Article 135 
prior to the opening of the correctio n procedure under this paragraph; 
(c) expenditure contained in a payment application is irre gular and has not 
been corrected by the Member State pr ior to the opening of the correction 
procedure under this paragraph. 
The Commission shall base its financia l corrections on individual cases of 
irregularity identified a nd shall take account of whet her an irregularity is 
systemic. When it is not possible to qua ntify precisely the amount of irregular 
expenditure charged to the Funds, the Co mmission shall apply a flat rate or 
extrapolated fina ncial correction. 
2. The Commission shall, when deci ding the amount of a correction under 
paragraph 1, take account of the nature and gravity of the irregularity and the 
extent and financial implications of the deficiencies in management and control 
systems found in the operational programme. 
3. Where the Commission bases its position on reports of auditors other than those 
of its own services, it sh all draw its own conclusions  regarding the financial 
consequences after examining the m easures taken by the Member State 
concerned under Article 135( 2), the notifications sent  under Article 112(3), and 
any replies from the Member State. 
4. Where the Commission, based on the exam ination of the final implementation 
report of the operational programme, estab lishes a serious failure to achieve the 
targets set out in the performance framew ork, it may apply financial corrections 
in respect of the priority axes c oncerned by means of implementing acts. 
EN 117   EN 5. When a Member State does not comply with its obligations as referred to in 
Article 86, the Commission may, in relation to the degree of non-compliance with these obligations, make a financial correction by cancelling all or part of 
the Structural Funds contribution to the Member State concerned. 
6. The Commission shall be empowered to adopt delegated acts in accordance with 
Article 142 establishing the criteria fo r establishing the level of financial 
correction to be applied. 
Article 137 
 
Procedure 
1. Before taking a decision on a financ ial correction, the Commission shall launch 
the procedure by informing the Member State of the provisional conclusions of its examination and requesting the Member State to submit its comments within two months. 
2. Where the Commission proposes a financial correctio n on the basis of 
extrapolation or a flat rate, the Member State shall be given the opportunity to demonstrate, through an ex amination of the documentation concerned, that the 
actual extent of irregularity is less than  the Commission's assessment. In agreement 
with the Commission, the Me mber State may limit the sc ope of this examination 
to an appropriate proportion or sample of the documentation concerned. Except in duly justified cases, the time allowed for this examination shall not exceed a further period of two months after the tw o-month period referred  to in paragraph 
1. 
3. The Commission shall take account of any evidence supplied by the Member 
State within the time limits set out in paragraphs 1 and 2. 
4. Where the Member State does not acce pt the provisional conclusions of the 
Commission, the Member State shall be invited to a hearing by the Commissi on, 
in order to ensure that a ll relevant information and obs ervations are available as a 
basis for conclusions by the Commission on the applic ation of the financial 
correction. 
5. In order to apply financial corrections the Commission shall take a decision, by 
means of implementing acts, within six mont hs of the date of the hearing, or of 
the date of receipt of additional inform ation where the Member State agrees to 
submit such additional information foll owing the hearing. The Commission shall 
take account of all information and observations submitted during the course of the procedure. If no hearing takes place, the six month period shall begin to run 
two months after the date of  the letter of invitation to  the hearing sent by the 
Commission. 
6. Where irregularities a ffecting annual accounts se nt to the Commission are 
detected by the Commission or by the Eu ropean Court of Auditors, the resulting 
financial correction sha ll reduce support from the Funds to the operational 
programme.  
EN 118   EN Article 138 
 
Obligations of Member States 
A financial correction by the Commission sh all not prejudice the Member State's 
obligation to pursue recoveries  under Article 135(2) of this  Regulation and to recover 
State aid in the meaning of Article 107(1) of the Treaty  and under Article 14 of Council 
Regulation (EC) No 659/199933. 
Article 139 
 
Repayment 
1. Any repayment due to be made to the general budget of the Union shall be 
effected before the due date indicated in the order for recovery drawn up in accordance with Article 73 of the Financ ial Regulation. The due date shall be 
the last day of the second month following the issuing of the order. 
2. Any delay in effecting repayment shall gi ve rise to interest on account of late 
payment, starting on the due date and endi ng on the date of actual payment. The 
rate of such interest sha ll be one-and-a-half percenta ge points above the rate 
applied by the European Central Bank in  its main refinancing operations on the 
first working day of the month in which the due date falls. 
 
TITLE VIII 
Proportional control of operational programmes  
 Article 140 
 
Proportional control of operational programmes 
1. Operations for which the total e ligible expenditure does not exceed 
EUR 100 000 shall not be subject to more  than one audit by either the audit 
authority or the Commission prior to the closure of all the expenditure 
concerned under Article 131. Ot her operations shal l not be subject to more than 
one audit per accounting year by the audit authority and the Commission prior to 
the closure of all the expenditure concer ned under Article 131. These provisions 
are without prejudice to paragraph 4.  
2. For operational progr ammes for which the most r ecent audit opinion indicates 
that there are no significant deficienci es, the Commission may agree with the 
audit authority in the subsequent meeting referred to in Article 118(3) that the level of audit work required may be reduced so that it is proportionate to the risk 
established. In such cases, the Commission will not carry out its own on-the-spot 
                                                
 
33 OJ L 83, 27.3.1999, p. 1.  
EN 119   EN audits unless there is evidence suggesti ng deficiencies in the management and 
control system affecting expenditure declared to the Commission in an 
accounting year for which the accounts ha ve been the subject of a clearance 
decision. 
3. For operational programmes for which the Commission concludes that it can 
rely on the opinion of the a udit authority, it may agree wi th the audit authority to 
limit its own on the spot audits to audit the work of the a udit authority unless 
there is evidence of deficiencies in the work of the audit au thority work for an 
accounting year for which the accounts have been subject to a clearance 
decision.  
4. Without prejudice to paragraph 1, the audit authority and the Commission may 
carry out audits of operations  in case a risk assessment establishes a specific risk 
of irregularity or fraud, in case of evidence of serious deficiencies in the 
management and control system of the operational programme concerned, and, 
during the 3 years following closure of all the expend iture of an operation under 
Article 131, as part of an audit samp le. The Commission may at any time carry 
out audits of operations fo r the purpose of assessing the work of an audit 
authority by re-performance of its audit activity. 
 
PART FOUR 
DELEGATIONS OF POWER, IMPLEMENTING, 
TRANSITIONAL AND FINAL PROVISIONS 
CHAPTER I 
Delegations of power and implementing provisions 
Article 141 
 
Amendment of the Annexes 
The Commission may adopt, by means of delega ted acts in accordance with Article 142, 
amendments to the  Annex es I and VI  to this Regulation within the scope of the relevant 
provisions of this Regulation. 
Article 142 
 
Exercise of the delegation 
1. The powers to adopt delegated acts ar e conferred on the Commission subject to 
the conditions laid down in this Article.  
EN 120   EN 2. The delegations of power referred to in this Regulation shall be conferred  for an 
indeterminate period of time from the date  of entry into force of this Regulation. 
3. The delegations of power referred to in Article s 5(3), 12, 20(4), 29(6), 32(1), 
33(3), 33(4), 33(7), 34(3), 35(5), 36(4), 54(1), 58, 112( 2), 114(8), 114(9), 
116(1), 117(1), 132(4), 136(6) and  141 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 deci sion. 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 a ny 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. The delegated acts shall enter into for ce only if no objection has been expressed 
either by the European Parliament or th e Council within a period of 2 months of 
notification of that act to the European Parliament a nd the Council or if, before 
the expiry of that period, the Europ ean Parliament and the Council have both 
informed the Commission that they will not object.  That period shall be 
extended by 2 months at the initiative of the European Parliament or the 
Council.  
If, on expiry of that period, neither the European Parliament nor the Council has 
objected to the delegated act, it shall be published in the Official Journal of the 
European Union and shall enter into force at  the date stated therein. 
The delegated act may be published in the Official Journal of the European 
Union and enter into force before the expi ry of that period if the European 
Parliament and the Council have bot h informed the Commission of their 
intention not to raise objections. 
If the European Parliament or the Council objects to a delegate d act, the act shall 
not enter into force. The institution that  objects to the delegated act shall state 
the reasons for its objections. 
Article 143  
 
Committee Procedure 
1. The Commission shall be assisted by a Coordination Committee of the Funds. 
That committee shall be a committee within  the meaning of Regulation (EU) No 
182/2011. 
2. Where reference is made to this para graph, Article 4 of Regulation (EU) No 
182/2011 shall apply. 
3. Where reference is made to this para graph, Article 5 of Regulation (EU) No 
182/2011 shall apply. 
EN 121   EN Where the opinion of the committee under paragraphs 2 and 3 is to be obtained 
by written procedure, that procedure sh all be terminated without result when, 
within the time-limit for de livery of the opinion, the chair of the committee so 
decides or (…) [number of members]  (a … majority of) [majority to be 
specified: simple, two-thirds, etc.]  committee members so request. 
Where the committee delivers no opinion, the Commission shall not adopt the 
draft implementing act and the third subpa ragraph of Article 5(4) of Regulation 
(EU) No 182/2011 shall apply. 
CHAPTER II 
Transitional and final provisions 
 
Article 144 
 
Review 
The European Parliament and the Council sh all review this Regulation by 31 December 
20XX in accordance with Article 177 of the Treaty.  
 
Article 145 
 
Transitional provisions 
1. This Regulation shall not affect the continuation or modification, including the 
total or partial cancellation, of the projects concerned, until their closure, or of 
assistance approved by the Commission on the basis of Re gulation (EC) No 
1083/2006 or any other legislation applying to that assistance on 31 December 
2013. 
2. Applications made under Council Regul ation (EC) No 1083/2006 shall remain 
valid. 
Article 146 
 
Repeal  
1. Council Regulation (EC) No 1083/2006 is he reby repealed with effect from 1 
January 2014. 
2. References to the repealed Regulation sh all be construed as references to this 
Regulation. 
Article 147 
 
Entry into force 
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 bindi ng in its entirety and directly  applicable in all Member 
States. 
EN 122   EN Done at Brussels, 
For the European Parliament For the Council 
The President The President 
EN 123   EN ANNEX I  
Common Strategic Framework elements related to the coherence and consistency with the 
economic policies of Member States and the Unio n, coordination mechanisms among the CSF 
Funds and with other relevant Union policies a nd instruments, horizontal principles and 
cross-cutting policy objectives and arrangem ents to address territorial challenges  
1. Introduction  
In order to maximise the contribution of the CSF Funds to smart, sustainable and inclusive 
growth, thereby reducing disparities, it is n ecessary to ensure that policy commitments made 
in the context of the Europe 2020 strategy ar e underpinned by investment through the CSF 
Funds and other Union instruments. Member States shall thus identify how their 
programmes can contribute to the policy objectiv es and headline targets of the Europe 2020 
strategy and the flagship initiatives.  
2. Coherence and Consistency with the Union's Economic Governance  
1. Member States shall give particular at tention to prioritising growth-friendly 
expenditure, including spending on educ ation, research, innovation and energy  
efficiency and expenditure to facilitate the access of SMEs to finance and to ensure 
environmental sustainability, the manage ment of natural resources and climate 
action, and to ensuring the effectiveness of such spending. They shall also take 
account of maintaining or reinforcing the coverage and effectiveness of employment 
services and active labour market policie s, with a focus on youth unemployment.  
2. In preparing their Partnership Contract s, Member States shall programme the CSF 
Funds taking into account the most recent relevant country-specific 
recommendations issued by the Council on th e basis of Article 121(2) and Article 
148(4) of the Treaty on the Functioning of  the European Union in accordance with 
their respective roles and obligations. Memb er States shall also take into account 
relevant Council recommendations based on the Stability and Growth Pact and the 
economic adjustment programmes. Each  Member State shall set out in the 
Partnership Contract, in accordance with Article 14(a)(i) of this Regulation, how 
different Union and national funding streams  contribute to addressing the challenges 
identified by the relevant country-specific recommendations concerned and the 
objectives set out in their National Refo rm Programmes in clos e consultation with 
the responsible regional and local authorities.  
3. Coordination Mechanisms Among the CSF Funds  
3.1 Introduction  
1. Member States shall ensure that the interventions suppo rted through the CSF Funds 
are complementary and are implemented in  a coordinated manner that leads to a 
reduction of administrative cost and burden on the ground.  
EN 124   EN 3.2 Coordination and complementarity  
1. Member States and managing authorities re sponsible for the implementation of the 
CSF Funds shall work closely together in the preparation, implementation, 
monitoring and evaluation of the Part nership Contract and programmes. In 
particular, they shall ensure that th e following actions are carried out:  
(a) identify areas of intervention where the CSF F unds can be combined in a 
complementary manner to achieve the th ematic objectives set out in this  
Regulation;  
(b) promote the involvement of managing authorities responsible for other CSF 
Funds or other managing authoritie s and relevant ministries in the 
development of support schemes to ensure coordination and avoid overlaps;  
(c) establish, where appropriate, joint monitoring committees for programmes 
implementing the CSF Funds, and the de velopment of other joint management 
and control arrangements to facilitat e coordination between authorities 
responsible for the implementation of the CSF Funds;  
(d) make use of joint eGovernance solutions ai med at applicants and beneficiaries, 
and "one-stop shops" for advice on the opportunities of support available 
through each of the CSF Funds;  
(e) establish mechanisms to coordinate c ooperation activities financed by the 
ERDF and the ESF with investments suppo rted by the 'Investment for Growth 
and Jobs goal' programmes.  
3.3 Encouraging integrated approaches  
1. Member States shall, where appropriate, combine the CSF Fund s into integrated 
packages at local, regional or national leve l, which are tailor-made to address specific 
needs in order to support the achievement of the national Europe 2020 targets, and 
make use of Integrated Territorial Inve stments, Integrated Operations and Joint 
Action Plans.  
2. Member States shall promote the developm ent of local and sub-regional approaches, 
in particular via community-led local de velopment by delegating decision-making 
and implementation to a local partnership of public, private and civil society actors. 
Community-led local development shall be im plemented in the context of a strategic 
approach to ensure that the ‘bottom-up’ defi nition of local need s takes account of 
priorities set at a higher level. Member Stat es shall therefore define the approach to 
community-led local development across th e CSF Funds and shall indicate in the 
Partnership Contracts the main challenges to be tackled in this way, the main 
objectives and priorities for community -led local development, the types of 
territories to be covered, which specific role will be attributed to local action groups 
in the delivery of strategies and the role  envisaged for the different CSF Funds in 
implementing local development strategies in different types of territories such as  
rural, urban and coastal areas and the corresponding co-ordination mechanisms.  
EN 125   EN 4. Coordination of CSF Funds with Other Union Policies and Instruments  
The Union programmes set out in  this section do not constitute an exhaustive list.  
4.1 Introduction  
1. Member States shall undertake an analysis  of the impact of Union policies at 
national and regional level, and on social, economic and territorial cohesion with a 
view to fostering effective coordination and to identifying and promoting the most 
suitable means of using European funds to support local, regional and national 
investment.  
2. Member States shall ensure consistency at  programming and implementation stages 
between interventions supported by the CSF Funds and the objectives of other Union  
policies. To this end, they shall seek to take into account the following aspects:  
(a) identify and exploit complementarities between different Union instruments at 
national and regional level, both in the planning phase and during 
implementation;  
(b) optimise existing structures and wh ere necessary, establish new ones that 
facilitate the strategic identification of priorities for the different instruments 
and structures for coordination at nation al level, avoid duplic ation of effort and 
identify areas where additional financial support is needed;  
(c) make full use of the potent ial to combine support from  different instruments to 
support individual operations and work closely with those responsible for 
implementing other national instrument s to deliver coherent and streamlined 
funding opportunities for beneficiaries.  
4.2 Coordination with the Common Agricultur al Policy and the Common Fisheries Policy  
1. The EAFRD is an integral part of the Common Agricultural Policy and complements 
the measures under the European Agricu ltural Guarantee Fund which provide 
direct support to farmers and support market measures. Member States shall 
therefore manage these interventions togeth er to maximise syn ergies and the added 
value of EU support.  
2. The EMFF aims at achieving the obj ectives of the reformed Common Fisheries 
Policy and of the Integrated Maritime Po licy. Member States shall therefore make 
use of the EMFF to support efforts to improve data collection and strengthen 
control, and ensure that synergies are also sought in support of the priorities of 
Integrated Maritime Policy, such as marine  knowledge, maritime spatial planning, 
integrated coastal zone management, in tegrated maritime surveillance, the 
protection of the marine environment and of  biodiversity, and th e adaptation to the 
adverse effects of climate change on coastal areas.  
EN 126   EN 4.3 Horizon 202034 and other centrally managed EU programmes in the areas of research 
and innovation  
1. Member States and the Commission sh all pay attention to strengthening 
coordination and complementarities between the CSF Funds and Horizon 2020, the 
Programme for the Competitiveness of En terprises and small and medium-sized 
enterprises (COSME)35, and other relevant centrally managed Union funding 
programmes while also establishing a clear di vision of areas of intervention between 
them.  
2. In particular, Member States shall deve lop national and/or regional research and 
innovation (R&I) strategies for ‘smart sp ecialisation’ in line with the National 
Reform Programme. These strategies shall be developed through involving national 
or regional managing authorities and stak eholders such as universities and other 
higher education institutions, industry and social partners in an entrepreneurial 
discovery process. The authorities direc tly concerned by Horizon 2020 shall be 
closely associated to this process.  Under these strategies (inter alia):  
(a) "Upstream actions" to prepare regional R&I players to participate in Horizon 
2020 ("staircase to excellence") shall be  developed through capacity building. 
Communication and cooperation between Horizon 2020 national contact points 
and managing authorities of the CSF Funds shall be strengthened.  
(b) "Downstream actions" shall provide the means to exploit and diffuse R&I 
results, stemming from Horizon 2020 a nd preceding programmes, into the 
market with particular attention on creating an innovation-friendly business 
environment for SMEs and in line with  the priorities identified for the 
territories in the relevant smart specialisation strategy.  
3. Member States shall make full  use of the provisions in th is regulation allowing for 
combining the CSF Funds with thos e under Horizon 2020 in the relevant 
programmes used to implement parts of the strategies. Joint support shall be 
provided to national and regional authoritie s for the design and implementation of 
such strategies, to identify opportunities fo r joint financing of R&I infrastructures of 
European interest, the promotion of international collaboration, methodological 
support through peer reviews, exchange of good practice, and training across 
regions.  
4. Member States shall consider the following additional measures aimed at unlocking 
their potential for excellence in research and innovation, in a manner that is 
complementary to and creates synergies with Horizon 2020, in particular through 
joint funding:  
(a) linking emerging centres of excellence and innovative regions in less developed 
Member States to leading counterparts elsewhere in Europe;  
                                                 
34 COM(2011) 809 final  
35 COM(2011) 834 final  
EN 127   EN (b) building links with innovative clusters  and recognising excellence in less 
developed regions;  
(c) establishing "ERA Chairs" to attract ou tstanding academics, in particular to 
less developed regions;  
(d) supporting access to international networks for researchers and innovators 
who are less involved in the ERA or  from less developed regions;  
(e) contributing as appropriate to the European Innovation Partnerships;  
(f) preparing national institutions and/or cl usters of excellence for participation in 
the Knowledge and Innovation Communities  (KICs) of the European Institute 
of Innovation and Technology (EIT); and  
(g) hosting high-quality international resea rcher mobility programmes with co-
funding from the "Marie Sklodowska-Curie Actions".  
4.4 New Entrants Reserve (NER) 300 demonstration funding36 
Member States shall ensure, where appropriate,  that financing from  the CSF Funds is 
coordinated with support from the NER 30 0 Programme, which uses the revenues from 
auctioning 300 million allowances  reserved under the new entran ts reserve of the European 
Emissions Trading Scheme to co -finance a wide range of large- scale demonstration projects 
of carbon capture and storage (CCS) as well as of innovative renewables technologies across 
the EU.  
4.5 LIFE37 and the environmental acquis  
1. Member States shall, where possible, seek  to exploit synergies with Union policy 
instruments (both funding and non-funding  instruments) serving climate change 
mitigation and adaptation, environmenta l protection and resource efficiency.  
2. Member States shall, where appropriate, ensure complementarity and coordination 
with LIFE, in particular with Integrated  Projects in the areas of nature, water, 
waste, air, climate change mitigation and climate change adaptation. This 
coordination shall be achieved in particul ar by promoting the funding of activities 
through the CSF Funds that complement  Integrated Projects under the LIFE 
Programme as well as by promoting the us e of solutions, methods and approaches 
validated under the LIFE Programme.  
3. The relevant sectoral plans, programmes or strategies (including the Prioritised 
Action Framework, the River Basin Ma nagement Plan, the Waste Management 
                                                 
36 OJ L 290, 6.11.2010, p. 39–48 2010/670/EU: Commission Decision of 3 November 2010 laying down 
criteria and measures for the financing of commerci al demonstration projects that aim at the 
environmentally safe capture and geological storage of CO2 as well as demonstration projects of 
innovative renewable energy te chnologies under the scheme for greenhouse gas emission allowance 
trading within the Community established by Direct ive 2003/87/EC of the Euro pean Parliament and of 
the Council (2010/670/EU) OJ L 275, 25.10.2003, p. 32–46.  
37 COM(2011) 874 final  
EN 128   EN Plan, the national mitigation plan or adaptation strategy) , as referred to in the LIFE 
Regulation, shall serve as the coordination  framework for support from the different 
Funds.  
4.6 ERASMUS for All38 
1. Member States shall seek to use CSF Funds to mainstream tools and methods 
developed and tested successfu lly under "Erasmus for All".  
2. Member States shall ensure effective coordination between CSF Funds and ‘Erasmus 
for All’ at national level through a clear distinction in the types of investment and 
target groups supported. Membe r States shall seek comple mentarity with regards to 
the funding of mobility actions, while exploring possible synergies.  
3. Coordination shall be achieved by pu tting in place appropriate cooperation 
mechanisms between managing authoritie s and the national agencies established 
under the ‘Erasmus for All’ programme.  
4.7 Programme for Social Change and Innovation (PSCI)39 
1. Member States shall, where appropriate, seek effective coordination between the 
Programme for Social Change and Innovat ion and the support provided by the CSF 
Funds under the employment and social  inclusion thematic objectives.  
2. Member States shall, where appropriate, seek to scale-up the most successful 
measures developed under the progress axi s of the PSCI, notably on social 
innovation and social policy experiment ation with the support of the ESF.  
3. In order to promote workers' geogra phical mobility and boost employment 
opportunities, Member States shall ensure complementarity of actions to enhance 
transnational labour mobility supported  by the ESF, including cross-border 
partnerships, with support provided under the EURES axis of the PSCI.  
4. Member States shall seek complementarit y and coordination between CSF Funds' 
support for self-employment, entrepreneurship, business creation and social 
enterprises and the PSCI support under the microfinance and social 
entrepreneurship axis aimed at increasing the access to microfinance for people 
furthest away from the labour market and for micro-enterprises as well as 
supporting the development of social enterprises.  
4.8 Connecting Europe facility (CEF)40 
1. The CEF is the dedicated Union fund for th e implementation of the Union policies 
for Trans-European Transport Networks of  infrastructure (TENs) in the field of 
transport, telecommunications and energy. To maximise European added value in 
these areas, Member States and the Comm ission shall ensure that ERDF and 
Cohesion Fund interventions are planned in close cooperation with the support 
                                                 
38 COM(2011) 788 final  
39 COM(2011)609 final  
40 COM(2011) 665 final  
EN 129   EN provided from the CEF, so as to avoid duplic ation of efforts and ensure that optimal 
links of different types of infrastructure at  local, regional and national levels, and 
across the Union are provided for. Maximu m leverage of the different funding 
instruments shall be ensured for project s with a European and Single Market 
dimension, and in particular  those projects implementing the priority transport, 
energy and digital infrastructure networks as identified in th e respective TEN policy 
frameworks.  
2. In the field of transport, plans shall be based on real and projected transport 
demand and identify missing links and bottlenecks, taking into account the 
development of Union cross border links, and developing links across regions within 
a Member State. Investment in regional connectivity to the comprehensive trans-
European transport network (TEN-T) and to the core TEN-T network shall ensure 
that urban and rural areas benefit from the opportunities created by major 
networks.  
3. Prioritisation of investments which have  an impact beyond a certain Member State, 
particularly along the core TEN-T network corridors, shall be coordinated with 
TEN-T planning and core network corrid ors implementation plans, so that 
investments by the ERDF and the Cohesion  Fund in transport infrastructure are 
fully in line with th e TEN-T Guidelines.  
4. Member States shall take  into account the Commission’s White Paper on 
Transport41 which sets out a vision for a compet itive and resource-efficient transport 
system, highlighting that a significant reduc tion in greenhouse gases is required in 
the transport sector. For the CSF Funds, this  means focusing on sustainable forms of 
transport and sustainable urban mobility as well as investing in areas that offer the 
greatest European added value. Once identi fied, investments shall be prioritised 
according to their contribution to mobilit y, sustainability, to reducing greenhouse 
gas emissions, and to the Single European Transport Area.  
5. The CSF Funds shall deliver the local and re gional infrastructures and their linkages 
to the priority Union networks in the energy and telecommunication areas.  
6. Member States and the Commission shall put  in place appropriate coordination and 
technical support mechanisms to ensure th e complementarity and effective planning 
of ICT measures to make full use of th e different Union instruments (CSF Funds  
CEF, Trans-European networks, Horizon 2020) for the financing of broadband 
networks and the digital service infras tructures. The selection of the most 
appropriate financing instru ment shall take into account the revenue generating 
potential of the operation and its level of ri sk in order to make the most effective use 
of public funds. If an operation has been  submitted for CEF funding but has not 
been selected, its evaluation under the CE F shall be taken into account by the 
Member State in the context of select ion for support by the CSF Funds.  
4.9 IPA, ENI and EDF42 
                                                 
41 Roadmap to a Single European Transport Area  – Towards a competitive and resource efficient 
transport system” COM 2011) 144 final.  
42 COM(2011) 838 final; COM(2011) 839 final; COM(2011) 837 final.  
EN 130   EN 1. Member States and the Commission shall s eek to increase coordination between 
external instruments and the CSF Funds to improve effectiveness in achieving 
multiple Union policy objectives. Coordi nation and complementarities with the 
European Development Fund, the Pre Ac cession Instrument and the European 
Neighbourhood Instrument is particularly important.  
2. To support deeper territorial integration, Member States shall seek to capitalise on 
synergies between territorial cooperation activities under cohesion policy and the 
European Neighbourhood Instruments, in pa rticular with regard to cross border 
cooperation activities. Member States sh all also, where appropriate, ensure that 
existing activities are associated wi th newly created European Groupings of 
Territorial Cooperation, having special regar d to coordination and exchange of best 
practices.  
5. Coordination with Cooperation Activities  
1. Member States shall seek complementarity between cooperation activities and other 
actions supported by the CSF Funds.  
2. Member States shall ensure that coopera tion activities make an effective 
contribution to the objectives of the Eu rope 2020 strategy and that cooperation is 
organised in support of wider policy goals. To achieve this Member States shall 
ensure complementarity and coordination with other Union-funded programmes or 
instruments.  
3. To reinforce the effectiveness of cohe sion policy Member States shall seek 
coordination and complementarity between  the European Territorial Cooperation 
and the "Investment for Growth and Jobs goal " programmes, in pa rticular to ensure 
coherent planning and facilitate the impl ementation of large-scale investment.  
4. Member States shall, where appropriate,  ensure that the ob jectives of macro-
regional and sea-basin strategies form part of the overall strategic planning in 
cohesion policy programmes in the regions and Member States concerned. Member 
States shall also ensure that  where macro-regional and sea basin strategies have been 
put in place, all the CSF Funds, where appr opriate, support their implementation. 
To ensure efficient implementation there sh all also be coordination with other 
Union-funded instruments as well as other relevant instruments.  
5. Member States shall, where appropriate, ma ke use of the possibility to carry out 
interregional and transnational actions with  beneficiaries located in at least one 
other Member State within the framework of the operational programmes under the 
"Investment for Growth and Jobs goal", including the implementation of relevant 
research and innovation measures emanat ing from their smart specialisation 
strategies.  
6. Horizontal Principles and Cr oss-cutting Policy Objectives  
A. Horizontal principles  
6.1 Partnership and multi-level governance  
EN 131   EN In accordance with Article 5, the principle of partnership and multi-level governance shall be 
respected by Member States in order to facilitate achieving social, economic and territorial 
cohesion and delivery of the Union's priorities  of smart, sustainable and inclusive growth. 
This requires coordinated action carried out in accordance with the principles of subsidiarity 
and proportionality, and in partnership. It al so shall take the form of operational and 
institutionalised cooperation, in particul ar with regard to the drawing-up and 
implementation of the Union's policies. Member States shall th erefore make full use of the 
partnerships established in th e framework of the CSF Funds.  
6.2 Sustainable development  
1. To ensure the full mainstreaming of sust ainable development into the CSF Funds, 
and respecting the principle of sustainable de velopment as laid down in Article 3 of 
the Treaty on European Union, the obligat ion to integrate environmental protection 
requirements according to Article 11 and th e polluter pays principle as set out in 
Article 192 of the Treaty on the Functi oning of the European Union, managing 
authorities shall undertake actions throughout  the programme lifecycle, to avoid or 
reduce environmentally harmful effects of interventions and ensure results in net 
social, environmental and climate be nefits by the following actions:  
(a) directing investments towards the most  resource-efficient and sustainable 
options,  
(b) avoiding investments that may have a si gnificant negative environmental or 
climate impact, and supporting action s to mitigate any remaining impacts,  
(c) taking a long-term perspective when ‘life- cycle’ costs of alternative options for 
investment are compared,  
(d) increasing the use of green public procurement.  
2. Member States shall ensure that investme nts made with the support of the CSF 
Funds consider climate change mitigation pote ntial, as well as be resilient to the 
impact of climate change and natural disa sters such as increased risks of flooding, 
heat waves and extreme weather events.  
3. Member States shall track biodiversity related expenditure using the methodology 
based on the categories of intervention or measures adopted by the Commission.  
4. Investments also need to be consistent  with the water hierarchy, with a focus on 
demand management options with alternativ e supply options only to be considered 
when the potential for water savings and efficiency has been exhausted. Public 
intervention in the waste management sector  shall complement efforts by the private 
sector, in particular producer responsibility.  Actions should support innovative 
approaches that promote a closed-loop economy and need to be consis tent with the waste 
hierarchy.  
6.3 Promotion of equality between men and women and non-discrimination  
EN 132   EN 1. In accordance with Article 7, Member Stat es shall pursue the objective of equality 
between men and women and must take  appropriate steps to prevent any 
discrimination and to ensure accessibility during the preparation, implementation, 
monitoring and evaluation of operations in the programmes co-financed by the CSF 
Funds. When pursuing the objectives of Ar ticle 7, Member States shall describe in 
detail actions to be taken, in particular wi th regard to selection of operations, setting 
of objectives for interventions, and a rrangements for monitoring and reporting. 
Member States shall also carry out gender analyses where appropriate.  
2. Member States shall ensure th e participation of the rele vant bodies responsible for 
promoting gender equality, non- discrimination and accessibi lity in the partnership, 
and ensure adequate structures in accordance with national practices to advise on 
gender equality, non-discrimination and accessibility in order to provide the 
necessary expertise in the preparation, mo nitoring and evaluation of the CSF Funds. 
The composition of the monitoring committe es shall be gender balanced and include 
a gender expertise/responsibility function.  
3. Managing authorities shall regularly undertake specific evaluations or self-
assessment exercises, in coordination with the monitoring committees, focusing on 
the application of the gend er mainstreaming principle.  
4. Member States shall address, in an appr opriate manner, the needs of disadvantaged 
groups in order to allow them to better inte grate into the labour market, and to fully 
participate in society.  
B. Cross-cutting policy objectives  
6.4 Accessibility  
1. Managing authorities shall ensure th at all products, goods, services and 
infrastructures that are open  or provided to the public and are co-financed by the 
CSF Funds are accessible to all citizens including those with disabilities. In 
particular, accessibility to the physical environment, transport, information and 
communication technologies in order to ac hieve inclusion for disadvantaged groups, 
including persons with disabilities has to  be ensured. Managing authorities shall 
undertake actions throughout the programme  lifecycle to identify and remove 
existing accessibility barriers or prevent new ones.  
6.5 Addressing demographic change  
1. The challenges resulting from demographic change shall be taken into account at all 
levels. Member States shall therefore make  use of the CSF Funds to develop tailor-
made strategies, where appropriate, to ta ckle demographic problems and to create 
growth linked to an ageing society.  
2. Member States shall use the CSF Funds to take  action to facilitate  inclusion of all age 
groups. They shall in particular enhance job opportunities for the elderly and young 
people. Investments in health infrastructures shall serve the goal of a long and 
healthy working life for a ll of the Union’s citizens.  
EN 133   EN 3. In the regions most affected by demogr aphic change, Member States shall identify 
measures to:  
(a) support demographic renewal through be tter conditions for families and an 
improved balance between working and family life;  
(b) boost employment, raise productivity  and economic performance through 
investing in education, ICT and research;  
(c) focus on the adequacy and quality of e ducation and social support structures; 
and 
(d) ensure cost-effective provision of health  care and long-term care including 
investment in e-health, e-care and infrastructure.  
6.6 Climate change mitigation and adaptation  
Climate change mitigation and adaptation and risk prevention shall be integrated in the 
preparation, programming, implementation, monitoring and evaluation of all funds.  
The visibility of contributions towards the goal of a spending of at least 20% of the Union 
budget on climate change mi tigation shall be ensured.  
7. Arrangements to Addre ss Territorial Challenges   
7.1. Member States and regions shall undertake the following steps for the purpose of 
preparation of their Partnership Contracts and programmes:  
(a) An analysis of the Member State’s or  region’s development potential and 
capacity, particularly in relation to th e key challenges identified in Europe 
2020, the National Reform Programmes and the relevant country-specific 
recommendations. The responsible auth orities shall undertake a detailed 
analysis of national, region al and local characteristics;  
(b) An assessment of the major challenges  to be addressed by the region or 
Member State, the identification of  the bottlenecks and missing links, 
innovation gaps, including the lack of planning and implementation capacity 
that inhibit the long-term potential for growth and jobs. This shall form the 
basis for the identification of the po ssible fields and activities for policy 
prioritisation, intervention and concentration;  
(c) An assessment of the cross-sectoral, cro ss-jurisdictional or cross-border 
coordination challenges, particularly in  the context of macro-regional and sea-
basin strategies;  
(d) Identification of steps to achieve im proved coordination across different 
territorial levels and sources of fundi ng to deliver an integrated approach 
linking Europe 2020 with regional and local actors.  
EN 134   EN 7.2. In order to take in to account the objectiv e of territorial cohesi on, the Member States 
and regions shall ensure that the overall appr oach to promoting smart, sustainable and 
inclusive growth:  
(a) reflects the role of cities, rural areas fi sheries and coastal areas, areas facing 
specific geographical or demographic problems;  
(b) takes account of the specific challe nges of the outermost regions, the 
northernmost regions with a very low population density and of island, cross-
border or mountain regions;  
(c) addresses urban-rural linkages, in t erms of access to affordable, quality 
infrastructures and services, and problems in regions with a high concentration 
of socially marginalised communities.  
EN 135   EN ANNEX II  
 
Method for establishing the performance framework 
1. The performance framework sh all consist of milestones established for each priority for 
the years 2016 and 2018 and ta rgets established for 2022. The milestones and targets shall 
be presented in accordance with the format set out in table 1.  
Table 1: Standard format for the performance framework 
Priority  Indicator and 
measurement unit, 
where appropriate  Milestone for 
2016  Milestone for 2018
 Target for 2022  
     
     
     
     
 
2. Milestones are intermediate targets for th e achievement of the specific objective of a 
priority, expressing the intende d progress towards the targets set for the end of the period. 
Milestones established for 2016 shall include fi nancial indicators and output indicators. 
Milestones established for 2018 shall include fi nancial indicators, output indicators and 
where appropriate, result indicators. Milest ones may also be established for key 
implementation steps.  
3. Milestones shall be:  
– relevant, capturing essential informa tion on the progress of a priority; 
– transparent, with objectively verifiable targets and the source data identified and 
publicly available; 
– verifiable, without imposing a dispro portionate administrative burden;  
– consistent across operational programmes, where appropriate. 
EN 136   EN  
ANNEX III  
Annual breakdown of commitment appropriations for 2014 to 2020 
[…] 
EN 137   EN ANNEX I VII 
 
Additionality 
1. P UBLIC OR EQUIVALENT STRUCTURAL EXPENDITURE  
The figure on Gross Fixed Capital Formation in column X-1, expressed as a share of GDP, 
according to Table 2 of Annex 2 of the "Guidelin es on the format and content of Stability and 
Convergence Programmes"43, will be used to determine public or  equivalent structural expenditure. 
2. V ERIFICATION  
Verifications of additionality in accordance with Article 86(3) are subject to the following rules: 
2.1 Ex-ante  verification  
(a) When a Member State submits a Partnership Co ntract, it shall provide  information on the 
planned profile of expenditure in  the format of Table 1 below. In those Member States in 
which less developed and intermediate regions cover more than 15% and less than 70% of the population, information about the expenditu re in [less developed and intermediate 
regions] shall be provided in the same format.  
 Table 1 
Expenditure 
of the 
General 
Government 
as a share of 
GDP 2014  2015  2016  2017  2018 2019 2020
P51 X X X X X X X 
(b) Member State shall provide to the Commission information on the main macroeconomic 
indicators and forecasts underlyi ng the level of public or equiva lent structural expenditure. 
(c) Once there is agreement by the Commission and the Member State, Table 1 above will be 
included in the Partnership Cont ract of the Member State con cerned as the reference level 
of the public or equivalent st ructural expenditure to be ma intained in the years 2014-2020. 
2.2 Mid-term verification  
(a) At the time of the mid-term verification, a Member State shall be deemed to have 
maintained the level of public or equivalent st ructural expenditure if  the annual average of 
expenditure in the years 2014-2017 is equal to or higher than the reference level of expenditure set in the Partnership Contract.  
(b) Following the mid-term verification, the Com mission may revise, in consultation with a 
Member State, the reference level of public or  equivalent structural expenditure in the 
                                                
 
43 As endorsed by the ECOFIN Council on 7 September 2010.  
EN 138   EN Partnership Contract if the economic situat ion of the Member State has significantly 
changed since adoption of the Partnership Co ntract and the change was not taken into 
account when setting the reference le vel in the Partnership Contract.  
2.3 Ex post  verification  
At the time of the ex post  verification, a Member State shall be  deemed to have maintained the 
level of public or equivalent structural expenditure  if the annual average of expenditure in the years 
2014-2020 is equal to or hi gher than the reference level of e xpenditure set in the Partnership 
Contract.  
3. F INANCIAL CORRECTION RATES FOLLOWING EX POST VERIFICATION  
Where the Commission decides to carry out a financ ial correction in accordance with Article 86(4), 
the rate of financial correction shall be obtained by subtracting 3%  from the difference between the 
reference level in the Partnership Contract and the level achieved, e xpressed as a percentage of the 
reference level, and then dividi ng the result by 10. The financial co rrection shall be determined by 
applying that rate of financial correction to the Funds' contributi on to the Member State concerned 
for the less developed and transition regions for the full programming period. 
If the difference between the refe rence level in the Partnership C ontract and the level achieved, 
expressed as a percentage of the reference level in the Partnership Contra ct, is 3 % or less, no 
financial correction shall be made. 
The financial correction shall not exceed 5 % of  the Funds' allocation to the Member State 
concerned for the less developed and transi tion regions for the full programming period.
 
EN 139   EN ANNEX I V 
 
Ex ante  conditionalities 
Thematic ex ante  conditionalities 
Thematic 
objectives Ex ante  conditionality Criteria for fulfilment 
1. Strengthening 
research, 
technological development and 
innovation (R&D 
target) 
(referred to in 
Article 9(1) )  1.1. Research and innovation : The 
existence of a national or regional 
research and innovation strategy for smart specialisation in line with the 
National Reform Program, to leverage 
private research and innovation expenditure, which complies with the 
features of well-performing national or 
regional research and innovation systems
44. – A national or regional research and innovatio n strategy for smart specialisation is in 
place that: 
– is based on a SWOT analysis to concentrat e resources on a lim ited set of research 
and innovation priorities; 
– outlines measures to stimulate private RTD investment; 
– contains a monitoring and review system. 
– A Member State has adopted a framework outlining available budgetary resources for 
research and innovation; 
– A Member State has adopted a multi-annua l plan for budgeting a nd prioritization of 
investments linked to EU priorities (European Strategy Forum on Research 
Infrastructures -ESFRI). 
2. Enhancing 
access to and use 
and quality of 2.1. Digital growth: The existence within 
the national or regional innovation 
strategy for smart specialisation of an – A chapter for digital growth within the national or regional innovation strategy for 
                                                 
44 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Europe 2020 Flagship Initiative Innovation Union 
(COM(2010) 546 final of 6.10.2010). Commitments 24/25 and Annex I "Self assessment tool: Features  of well performing national a nd regional research and innovations systems". Conclusions of the 
Competitiveness Council: Conclusions on Innovation Union for Europe (doc. 17165/10 of 26.11.2010).  
 
EN 140   EN explicit chapter for digital growth to 
stimulate demand for affordable, good 
quality and interoperable ICT-enabled 
private and public services and increase uptake by citizens, including vulnerable 
groups, businesses and public 
administrations including cross border initiatives. smart specialisation is in place that contains: 
– budgeting and prioritisation of  actions through a SWOT analysis carried out in 
alignment with the Scoreboard of  the Digital Agenda for Europe45; 
– an analyses of balancing support for de mand and supply of information and 
communication technologies (ICT ) should have been conducted; 
– measurable targets for outcomes of interv entions in the field of digital literacy, 
skills, e-inclusion, e-accessi bility, and e-health which are aligned with existing 
relevant sectoral national or regional strategies. 
– assessment of needs to reinforce ICT capacity-building. information and 
communication 
technologies 
(Broadband 
target) 
(referred to in 
Article 9(2) )  
 
2.2. Next Generation Access (NGA) 
Infrastructure:  The existence of national 
NGA Plans which take account of 
regional actions in order to reach the EU 
high-speed Internet access targets46, 
focusing on areas where the market fails 
to provide an open infrastructure at an 
affordable cost and to an adequate quality in line with the EU competition 
and state aid rules, and provide 
accessible services to  vulnerable groups. – A national NGA Plan is in  place that contains: 
– a plan of infrastructure investment s through demand aggregation and a mapping 
of infrastructure and services, regularly updated; 
– sustainable investment models that enhance competition and provide access to 
open, affordable, quality and future proof infrastructure and services;  
– measures to stimulate private investment. 
3. Enhancing the 
competitiveness of 3.1. Specific actions have been carried 
out for the effective implementation of – The specific actions include: 
                                                                                                                                                                                                                                                     
45 Communication from the Commission to the Eur opean Parliament, the Council, the European  Economic and Social Committee and the C ommittee of the Regions: A Digital Agenda for Europe (COM(2010) 245 
final/2 of 26.8.2010); Commission Staff Working Paper:  Digital Agenda Scoreboard (SEC(2011) 708 of 31.5.2011). Conclusions of the Transport, Telecommunications and Energy Council on the Digital Agenda for 
Europe (doc. 10130/10 of 26 May 2010)  
46 Communication from the Commission to the European Parliament, the Council, the European Economi c and Social Committee and the Committee of the Regions: A Digital Agenda for Europe (COM(2010) 245 
final/2 of 26.8.2010); Comm ission Staff Working Paper:  Digital Agenda Scoreboard (SEC(2011) 708 of 31.5.2011).  
 
EN 141   EN the Small Business Act (SBA) and its 
Review of 23 February 201147 including 
the "Think Small First" principle. 
  – a monitoring mechanism to ensure th e implementation of the SBA including a 
body in charge of coordinating SME issues across different ad ministrative levels 
(“SME Envoy”); 
– measures to reduce the time to set-up busin ess to 3 working days and the cost to 
€100;  
– measures to reduce the time needed to get licenses and permits to take up and 
perform the specific activity of  an enterprise to 3 months; 
– a mechanism for systematic assessment of  the impact of legislation on SMEs 
using an "SME test" while taking into account differences in the size of enterprises, where relevant. small and medium-
sized enterprises 
(SMEs)  
 (referred to in 
Article 9(3)) 
3.2. Transposition into national law of 
Directive (2011/7/EU) of the European Parliament and of the Council of 
16 February 2011 on combating late 
payment in commercial transactions
48. – Transposition of that Directive in accordance with Article 12 of the Directive (by 16 
March 2013). 
4. Supporting the 
shift towards a 
low-carbon 
economy in all 
sectors  
 
(referred to in 4.1. Energy efficiency : Transposition into 
national law of Directive (2010/31/EU) 
of the European Parliament and of the 
Council of 19 May 2010 on the energy 
performance of build ings in accordance 
with Article 28 of the Directive 49. 
Compliance with Article 6(1) of – Implementation of minimum requirements related to the energy performance of 
buildings required in line with Article 3, Article 4 and Article 5 of Directive 
2010/31/EU  
– Adoption of measures necessary  to establish a system of certification of the energy 
performance of buildings in accordance with Article 11 of Directive 2010/31/EU; 
                                                                                                                                                                                                                                                     
47 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Think Small First - A Small Business Act for Europe 
(COM(2008) 394 of 23.6.2008); Conc lusions of the Competitiveness Council: Think Smal l First – A Small Business Act for Europe ( doc. 16788/08, 1.12.2008); Communication from the Commission to the European 
Parliament, the Council, the Economic and Social Committee and the Committee of the Regions: Review of the "Small Business Act"  for Europe (COM(2008) 78 final, 23.2.2011); Conclusions of the 
Competitiveness Council: Conclusions on the Review of the "S mall Business Act" for Europe  (doc. 10975/11 of 30.5.2011).  
48 OJ L 48, 23.2.2011, p. 1.  
49 OJ L 153, 18.6.2010, p. 13  
50 OJ L 140, 5.6.2009, p. 136.  
51 OJ L 114, 27.4.2006, p. 64.  
 
EN 142   EN Decision No 406/2009/EC of the 
European Parliament and of the Council 
of 23 April 2009 on the effort of 
Member States to reduce their greenhouse gas emissions to meet the 
Community’s greenhouse gas emission 
reduction commitments up to 2020
50.  
Transposition into national law of 
Directive 2006/32/EC of the European 
Parliament and of the Council of 5 April 2006 on energy end- use efficiency and 
energy services
51. 
Transposition into national law of 
Directive 2004/8/EC of the European 
Parliament and of the Council of 11 
February 2004 on the promotion of cogeneration based on a useful demand 
in the internal energy market and 
amending Directive 92/42/EEC
52. – Realisation of the required rate of renovation of public buildings; 
– Final customers are provided  with individual meters; 
– Efficiency in heating and cooling is pr omoted according to Directive 2004/8/EC. Article 9(4))  
 
4.2. Renewable energy : Transposition 
into national law of Directive 
2009/28/EC of the European Parliament and of the Council of 23 April 2009 on 
the promotion of the use of energy from 
renewable sources and amending and subsequently repealing Directives 
(2001/77/EC) and (2003/30/EC)
53. 
 – A Member State has put in place transparen t support schemes, prio rity in grid access 
and in dispatching, standard rules relati ng to the bearing and sharing of costs of 
technical adaptations which have been made public; 
– A Member State has adopted a national re newable energy action plan in accordance 
with Article 4 of Directive 2009/28/EC. 
                                                                                                                                                                                                                                                     
52 OJ L 52, 21.2.2004, p.50.  
53 OJ L 140, 5.6.2009, p. 16.  
 
EN 143   EN 5. Promoting 
climate change 
adaptation and risk 
prevention 
(Climate change 
target) 
(referred to in 
Article 9(5)  
 5.1. Risk prevention and risk 
management : The existence of national 
or regional risk asse ssments for disaster 
management. taking into account climate change adaptation
54 – A national or regional risk assessmen t shall be in place that includes: 
– A description of the process, methodology, methods and non-sens itive data used 
for national risk assessment; 
– A description of single-risk and multi-risk scenarios; 
– Taking into account, where appropriate, national clim ate change adaptation 
strategies. 
6.1. Water sector : The existence of a) a 
water pricing policy which provides adequate incentives for users to use 
water resources efficiently and b) an 
adequate contribution of the different water uses to the recovery of the costs of 
water services, in accordance with 
Article 9 of Directive 2000/60/EC of the European Parliament and of the Council 
of 23 October 2000 establishing a 
framework for Community action in the field of water policy
55. – A Member State has ensured contribution of th e different water uses to the recovery of 
the costs of water services by sector in accordance with Article 9 of Directive 
2000/60/EC. 
– The adoption of a river basin management plan for the river basin district where 
investments will take place in accordance with  Article 13 of Directive 2000/60/EC of 
the European Parliament and of the Council of 23 October 2000 establishing a 
framework for Community action in the field of water policy56. 
–  6. Protecting the 
environment and promoting the 
sustainable use of 
resources 
(referred to in 
Article 9(6) )  
 
6.2. Waste sector:  Implementation of 
Directive 2008/98/EC of the European Parliament and of the Council of 19 
November 2008 on waste and repealing 
certain Directives
57, in particular the 
development of waste management plans 
in accordance with the Directive and with the waste hierarchy.. – A Member State has reported to  the Commission on progress towards targets of Article 
11 of Directive 2008/98/EC, reasons for fa ilure, and intended ac tions to meet the 
targets; 
– A Member State has ensured that its comp etent authorities esta blish, in accordance 
with Articles 1, 4, 13 and 16 of Directive 2008/98/EC, one or more waste management 
plans as required by Article 28 of the Directive; 
                                                 
54 Conclusions of the Justice and Home A ffairs Council; 11-12 April 2011, Conclusion on further developing risk assessments for d isaster management in the European Union.  
55 OJ L 327, 22.12.2000, p. 1.  
56 OJ L 327, 22.12.2000, p. 1.  
57 OJ L 312, 22.11.2008, p. 3.  
 
EN 144   EN – No later by 12 December 2013, a Member State has established, in accordance with 
Articles 1 and 4 of Directive 2008/98/EC, wa ste prevention programmes, as required 
by Article 29 of the Directive; 
– A Member State has taken necessary measures to achieve  2020 target on re-use and 
recycling in accordance with Ar ticle 11 of Directive 2008/98/EC. 
7.1. Road:  The existence of a 
comprehensive national transport plan which contains an appropriate 
prioritisation of investments in the core 
Trans European Network of Transport Infrastructure (TEN-T) network, in the 
comprehensive network (investments 
other than the core TEN-T) and in secondary connectivity (including public 
transport at regional and local level). 
 – A comprehensive transport plan is in place that contains: 
– prioritisation of investments in the core TEN-T network, the comprehensive 
network and secondary connectivity. The pr ioritisation should take into account 
the contribution of investments to mobility, sustainability, the reduction of greenhouse gas emissions and contribution to  the Single European  transport area; 
– a realistic and mature project pipe line (including timetable, budgetary 
framework); 
– a strategic environmental assessment fulfilling the legal requirements for the 
transport plan;  
– measures to strengthen capacity of in termediary bodies and beneficiaries to 
deliver the project pipeline. 7. Promoting 
sustainable transport and 
removing 
bottlenecks in key network 
infrastructures 
(referred to in 
Article 9(7) )  
 
7.2. Railway:  The existence within the 
comprehensive national transport plan of 
an explicit chapter on railway 
development which contains an 
appropriate prioritisation of investments in the core Trans European Network of 
Transport Infrastructure (TEN-T) 
network, in the comprehensive network (investments other than the core TEN-T) 
and in secondary connectivity of the 
railway system according to their contributions to mobility, sustainability, – A chapter on railway development within the comprehensive transport plan is in place 
that contains: 
– a realistic and mature project pipeline (includi ng a timetable, budgetary 
framework); 
– a strategic environmental assessment fulfilling the legal requirements for the 
transport plan;  
– measures to strengthen capacity of in termediary bodies and beneficiaries to 
 
EN 145   EN national and European wide network 
effects. The investments cover mobile 
assets and interoperability and capacity 
building.  deliver the project pipeline.  
8.1. Access to employment for job-
seekers and inactive people, including 
local employment initiatives and support 
for labour mobility:  Active labour 
market policies are designed and 
delivered in coherence with the 
Employment guidelines58; 
 – Employment services have the capacity to and do deliver:  
– personalised services and active and prev entive labour market measures at an 
early stage, which are open for all jobseekers; 
– anticipating and counselli ng on long-term employment  opportunities created by 
structural shifts in the labour market such as the shift to a low carbon economy; 
– transparent and systematic info rmation on new job vacancies. 
– Employment services have set up networks with employers and education institutes.  8. Promoting 
employment and 
supporting labour 
mobility 
(Employment 
target) 
(referred to in 
Article 9(8) )  
 
8.2. Self-employment, 
entrepreneurship and business 
creation: the existence of a 
comprehensive strategy for inclusive start-up support in accordance with the Small Business Act
59 and in coherence with 
the Employment guidelines and the 
Broad Guidelines for the economic 
policies of the Member States and of the 
Union60, regarding the enabling 
conditions for job creation.  – A comprehensive strategy in place which includes: 
– measures to reduce the time to set up bus inesses to three working days and the 
cost to EUR 100; 
– measures to reduce the time needed to get licenses and permits to take up and 
perform the specific activity of an enterprise business to three months; 
– actions linking suitable business developm ent services and fi nancial services 
(access to capital), including the outreach to disadvantaged groups and areas.  
                                                 
58 Council decision (2010/707/EU) of 21 October 2010, OJ L 308, 24.11.2010, p.46. 
59 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Think Small First - A Small Business Act for Europe 
(COM(2008) 394 of 23.6.2008); Conc lusions of the Competitiveness Council: Think Smal l First – A Small Business Act for Europe ( doc. 16788/08, 1.12.2008); Communication from the Commission to the European 
Parliament, the Council, the Economic and Social Committee and the Committee of the Regions: Review of the "Small Business Act"  for Europe (COM(2008) 78 final, 23.2.2011); Conclusions of the 
Competitiveness Council: Conclusions on the Review of the "S mall Business Act" for Europe  (doc. 10975/11 of 30.5.2011).  
60 Council Recommendation (2010/410/EU) of 13 July 2010, OJ L 191, 23.07.2010, p. 28.  
 
EN 146   EN 8.3. Modernisation and strengthening of 
labour market institutions , including actions to enhance transnational labour 
mobility
61:  
- Labour market institutions are 
modernised and strengthened in accordance with the Employment Guidelines; 
- Reforms of labour market institutions 
will be preceded by a clear strategy and 
ex ante  assessment including the gender 
dimension – Actions to reform employment services, ai ming at providing them the capacity to 
deliver62: 
– personalised services and active and prev entive labour market measures at an 
early stage, which are open for all jobseekers;  
– counselling on long-term employ ment opportunities created by structural shifts in 
the labour market such as the shift to the lo w carbon economy; 
– transparent and systematic information on new job opening acc essible at Union 
level. 
– Reform of employment services will include  the creation of networks with employers 
and education institutes. 
8.4. Active and healthy ageing: Active 
ageing policies are designed and delivered in accord ance with the 
Employment Guidelines
63  – Actions to deliver on active and healthy ageing challenges64: 
– relevant stakeholders are involved in the design and implementation of active 
ageing policies;  
– a Member State has measures in place to promote active ageing and to reduce 
early retirement.  
 8.5. Adaptation of workers, enterprises 
and entrepreneurs to change: The 
existence of policies aimed at favouring 
anticipation and good management of 
change and restructuring at all relevant – Effective instruments are in place to support social partners and public authorities to 
develop proactive approaches to wards change and restructuring. 
                                                 
61 If a country specific Council Recommendation is in place, direc tly linked to this conditionality provision, then the assessmen t of its fulfilment will take account of th e assessment of progress made on the country 
specific Council Recommendation.  
62 Deadlines for delivery on all elements here contained in this  section may expire during the programme implementation period.  
63 If a Country Specific Council Recommendation is in place, directly linked to this co nditionality provision, then the assessmen t of its fulfilment will take account of the assessment of progre ss made on the country 
specific Council Recommendation.  
64 Deadlines for the achievement of  delivery on all the elements contained in this  section may expire during the programme implem entation period.  
 
EN 147   EN levels (national, regional, local and 
sectoral) 65. 
9.1. Early school leaving: The existence 
of a comprehensive strategy to reduce early school leaving (ESL) in accordance 
with Council Recommendation of 28 
June 2011 on policies to reduce early school leaving
66.  – A system for collecting and analysing da ta and information on ESL at national, 
regional and local level is in place that: 
– provides a sufficient evidence-base to develop targeted policies; 
– is used systematically to monitor developments at the respective level. 
– A strategy on ESL is in place that: 
– is based on evidence; 
– is comprehensive (e.g. covering all educational sectors including early childhood 
development) and adequately addr esses prevention, intervention and 
compensation measures; 
– sets out objectives that are consiste nt with the Council Recommendation on 
policies to reduce early school leaving; 
– cuts across-sectors, and involves a nd coordinates all policy sectors and 
stakeholders that are relevant to address ESL. 9. Investing in 
skills, education and lifelong 
learning 
(Education target)  
(referred to in 
Article 9(10) 
9.2. Higher education:
 The existence of 
national or regional strategies for increasing tertiary education attainment, 
quality and efficiency in accordance with 
the Communication of the Commission of 20 September 2011 on the – A national or regional strategy for tertiary  education is in place that includes: 
– measures to increase participation and attainment that: 
– improve guidance provided to prospective students; 
                                                                                                                                                                                                                                                     
65 Communication from the Commission to the European Parliament, the Council, the European Economi c and Social Committee and the Committtee of the Regions – A shared commitment for employment – 
COM(2009)257 Final.  
66 OJ C 191, 1.7.2011, p. 1.  
 
EN 148   EN modernisation of Europe's higher 
education systems67. – increase higher education partic ipation among low income groups and 
other under-represented groups. 
– increase participation by adult learners; 
– (where necessary) reduce drop-out rates/improve completion rates; 
– measures to increase quality that: 
– encourage innovative content and programme design; 
– promotes high standards of quality in teaching; 
– measures to increase employability and entrepreneurship that: 
– encourage the development of "transversal skills", including 
entrepreneurship in all hi gher education programmes;  
– reduce gender differences in terms of academic and vocational choices and 
encouraging students to choose career s in sectors were they are under 
represented in order to reduce the ge nder segregation of the labour market. 
– ensure informed teaching usin g knowledge from research and 
developments in business practices. 
9.3. Lifelong learning:  The existence of  
a national and/or regional policy framework for lifelong learning in line 
with Union level policy guidance
68. – A national or regional policy framework for lif elong learning is in place that contains: 
– measures to support lifelong learning (LLL)  implementation and skills upgrading 
and providing for the involvement of, and partnership with stakeholders, 
including social partners and civil society associations;  
                                                                                                                                                                                                                                                     
67 COM (2011)567 final.  
68 Council conclusions of 12 May 2009 on a st rategic framework for European cooperati on in education and training ("ET 2020") (OJ  C 119, 28.5.2009, p.2)  
 
EN 149   EN – measures for the effective provision of skills development for young people in 
vocational training, adults, women return ing in the labour ma rket, low skilled 
and older workers, and other disadvantaged groups;  
– measures to widen access to LLL including through the effective implementation 
of transparency tools (European Qualifications Framework, National 
Qualifications Framework, European Cred it system for Vocational Education and 
Training, European Quality Assurance in  Vocational Education and Training) 
and the development and integration of lifelong learning serv ices (education and 
training, guidance, validation); 
– measures to improve the relevance of education and training and to adapt it to the 
needs of identified target groups.  
 
EN 150   EN 10. Promoting 
social inclusion 
and combating 
poverty  (poverty 
target) 
(referred to in 
Article 9(9) )  
 10.1. Active inclusion  
Integration of marginalised communities 
such as the Roma : 
- The existence and the implementation of a national strategy for poverty 
reduction in accordance with 
Commission Recommendation of 3 October 2008 on the active inclusion of 
the people excluded from the labour 
market
69 and the Employment 
guidelines.  
 
  
 
  
 
  
 
 
 
  
 
- A national Roma inclusion strategy is in place in accordan ce with the EU 
Framework for national Roma 
integration strategies
70 
 
 
  
 – A national strategy for poverty reduction is in place that: 
– is based on evidence. This requires a sy stem for collecting and analysing data 
and information which provides sufficien t evidence to develop policies for 
poverty reduction. This system is used to monitor developments; 
– is in accordance with the national poverty and social exclusion target (as defined 
in the National Reform Programme),  which includes the extension of 
employment opportunities for disadvantaged groups; 
– contains a mapping of the territorial concentration beyond the regional/on NUTS 
3 level of marginalised and disadva ntaged groups including the Roma; 
– demonstrates that social partners and re levant stakeholders are involved in the 
design of active inclusion; 
– includes measures for the shift from residential to community based care; 
– indicates clearly measures to prevent and combat segregation in all fields. 
 
– A national Roma inclusion strategy is in place that: 
– sets achievable national goals for Roma integration to bridge the gap with the 
general population. These ta rgets should address, as a minimum, the four EU 
Roma integration goals relating to acce ss to education, employment, healthcare 
and housing; 
                                                 
69 Commission Recommendation of 3 October 2008 on the active in clusion of the people excluded from the labour market  (OJ L 307, 18.11.2008, p. 11).  
70 Communication from the Commission to the European Parliament , the Council, the European Economic and Social Committee and the Committee of the Regions: An EU fram ework for National Roma Integration 
Strategies up to 2020. COM(2011) 173.  
 
EN 151   EN  
 
 
  
 
  
 
  
 
  
 
  
 
- The provision of support for relevant stakeholders in accessing the Funds. – is coherent with the National Reform Programme; 
– identifies where relevant those disadva ntaged micro-regions or segregated 
neighbourhoods, where communities are most  deprived, using already available 
socio-economic and territorial indicators (i.e. very low educational level, long-
term unemployment, etc). 
– allocates a sufficient funding from  national budgets, which will be 
complemented, where appropriate, by international and EU funding. 
– includes strong monitoring methods to eval uate the impact of Roma integration 
actions and a review mechanism fo r the adaptation of the strategy. 
– is designed, implemented and monitore d in close cooperation and continuous 
dialogue with Roma civil societ y, regional and local authorities. 
– contains a national contact point for the national Roma integration strategy with 
the authority to coordinate the develo pment and implementation of the strategy. 
– Relevant stakeholders are provided support for submitting project applications and for 
implementing and managing the selected projects 
10.2. Health:  The existence of a national 
or regional strategy for health ensuring access to quality health services and 
economic sustainability
. – A national or regional strategy for health is in place that: 
– Contains coordinated measures to impr ove access to quality health services; 
– contains measures to stimulate efficiency  in the health sect or, including through 
deployment of effective innovative tec hnologies, service delivery models and 
infrastructure; 
– contains a monitoring and review system. 
– A Member State or region has adopted a framework outlining available budgetary 
 
EN 152   EN resources for health care. 
11. Enhancing 
institutional capacity and 
efficient public 
administration 
(referred to in 
Article 9(11) )  
 Member States administrative efficiency: 
- The existence of a strategy for 
reinforcing the Member States' 
administrative efficiency including 
public administration reform
71  
 – A strategy for reinforcing a Member State's ad ministrative efficiency is in place and in 
the process of being implemented72. The strategy includes: 
– an analysis and strategic planning of legal, organisational and/or procedural 
reform actions; 
– the development of quality management systems;  
– integrated actions for simplification and rationalisation of administrative 
procedures; 
– the development and implementation of hu man resources strategies and policies 
covering the recruitment plans and career paths of staff, comp etence building and 
resourcing; 
– the development of skills at all levels; 
– the development of procedures and tools for monitoring and evaluation. 
                                                 
71 If a country specific Council Recommendation is in place, direc tly linked to this conditionality provision, then the assessmen t of its fulfilment will take account of th e assessment of progress made on the country 
specific Council Recommendation.  
72 Deadlines for the achievement of all the elements contained in  this section may expire during the programme implementation per iod. 
 
EN 153   EN General ex-ante conditionalities 
Area Ex-ante conditionalit y Criteria for fulfilment 
1. Anti-
discrimination 
 The existence of a mechanism which ensures 
effective implementation and application of 
Directive 2000/78/EC of 27 November 2000 
establishing a general framework for equal treatment in employment and occupation
73 and 
Directive 2000/43/EC of 29 June 2000 
implementing the principle of equal treatment between persons irrespective of racial or ethnic 
origin
74 – Effective implementation and applicat ion of the EU Directive 2000/78/EC 
and Directive 2000/43/EC on non-discrimination is ensured through: 
– institutional arrangements for th e implementation, application and 
supervision of the EU direct ives on non-discrimination; 
– a strategy for training and dissemi nation of information for staff 
involved in the implementation of the funds; 
– Measures to strengthen administra tive capacity for implementation and 
application of the EU dire ctives on non-discrimination.  
2. Gender equality   
 
 The existence of a strate gy for the promotion of 
gender equality and a mechanism which ensures its effective implementation. – Effective implementation and applicati on of an explicit strategy for the 
promotion of gender equality is ensured through: 
– a system for collecting and analyzin g data and indicators broken down 
by sex and to develop evidences-based gender policies; 
– a plan and ex-ante criteria for the integration of gender equality 
objectives through gender st andards and guidelines; 
– implementation mechanisms including involvement of a gender body 
and the relevant expertise to draft monitor and evaluate the 
interventions. 
3. Disability The existence of a mechanism which ensures 
effective implementation and application of the – Effective implementation and applica tion of the UN Convention on the rights 
                                                 
73 OJ L 303, 2.12.2000, p.16  
74 OJ L 180, 19.07.2000, p. 22  
 
EN 154   EN UN Convention on the rights of persons with 
disabilities. 75 
 of persons with disabilities is ensured through:  
– Implementation of measures in li ne with Article 9 of the UN 
Convention to prevent, identify and eliminate obstacle s and barriers to 
accessibility of persons with disabilities;  
– institutional arrangements for the implementation and supervision of 
the UN Convention in line with Article 33 of the Convention; 
– a plan for training and dissemination of information for staff involved 
in the implementation of the funds; 
– measures to strengthen administrative capacity for implementation and 
application of the UN Convention in cluding appropriate arrangements 
for monitoring compliance with accessibility requirements. 
4.. Public 
procurement The existence of a mechanism which ensures 
effective implementation and application of Directives 2004/18/EC and 2004/17/EC and 
their adequate supervision and surveillance. 
 – Effective implementation and applic ation of Directives 2004/18/EC and 
2004/17/EC is ensured through: 
– complete transposition of Dire ctives 2004/18/EC and 2004/17/EC; 
– institutional arrangements for th e implementation, application and 
supervision of EU public procurement law; 
– measures which ensure adequate supervision and surveillance of 
transparent contract award proce dures and adequate information 
thereon; 
– a strategy for training and dissemi nation of information for staff 
involved in the implementation of the funds; 
                                                                                                                                                                                                                                                     
75 OJ, L 23, 27.01.2010, p. 35 publication of the Council Decision of 26 November 2009 concerning the conclusion, by the European  Community, of the United Nations Convention on the Rights of Persons with 
Disabilities.  
 
EN 155   EN – Measures to strengthen administrative capacity for implementation and 
application of EU public procurement law. 
5. State aid The existence of a mechanism which ensures 
effective implementation and application of EU 
State aid law  
 – Effective implementation and applicati on of EU State aid law is ensured 
through: 
– institutional arrangements for th e implementation, application and 
supervision of EU State aid law; 
– a strategy for training and dissemi nation of information for staff 
involved in the implementation of the funds; 
– measures to strengthen administrative capacity for implementation and 
application of EU State aid rules.  
6. Environmental 
legislation relating 
to Environmental Impact Assessment 
(EIA)and, Strategic 
Environmental Assessment (SEA) The existence of a mechanism which ensures 
the effective implementation and application of 
Union environmental legislation related to EIA and SEA in accordance with Directive 
(85/337/EEC) of 27 June 1985 on the 
assessment of the effects of certain public and 
private projects on the environment
76 and with 
Directive (2001/42/EC) of 27 June 2001 on the 
assessment of the effects of certain plans and 
programmes on the environment77. 
 – Effective implementation and applicati on of Union environmental legislation 
is ensured through: 
– complete and correct transposition of EIA and SEA directives; 
– institutional arrangements for th e implementation, application and 
supervision of EIA and SEA Directives; 
– a strategy for training and dissemi nation of information for staff 
involved in the implementation of EIA and SEA Directives; 
– measures to ensure sufficient administrative capacity. 
                                                 
76 OJ L 175, 5.7.1985, p. 40.  
77 OJ L 197, 21.7.2001, p. 30.  
 
EN 156   EN 7. Statistical 
systems and result 
indicators 
 The existence of a statistical system necessary 
to undertake evaluations to assess the 
effectiveness and impact of the programmes. 
  
The existence of an effective system of result 
indicators necessary to monitor progress towards results and to undertake impact 
evaluation. 
 – A multi-annual plan for timely collection and aggregation of data is in place 
that includes: 
– the identification of sources and me chanisms to ensure statistical 
validation;  
– arrangements for publicati on and public availability. 
– an effective system of results indicators including: 
– the selection of result indicato rs for each programme providing 
information on those aspects of th e well-being and progress of people 
that motivate policy actions financed by the programme; 
– the establishment of targets for these indicators; 
– the respect for each indicator of the following requisites: robustness 
and statistical validation, clarit y of normative interpretation, 
responsiveness to policy, timely colle ction and public availability of 
data; 
– adequate procedures in place to ensu re that all operations financed by 
the programme adopt an effec tive system of indicators. 
 
 
 
EN 157   EN ANNEX V I 
Information and communication on support from the Funds 
1. L IST OF OPERATIONS  
The list of operations referred to Article 105(2) shall contain, in at least one of the official languages 
of the Member State, th e following data fields:  
– Beneficiary name (only legal entities;  no natural persons shall be named); 
– Operation name;  
– Operation summary;  
– Operation start date; 
– Operation end date (expected date for physi cal completion or full implementation of the 
operation); 
– Total eligible expenditure allocated to the operation; 
– EU co-financing rate (as per priority axis); 
– Operation postcode; 
– Country; 
– Name of category of intervention for the operation;  
– Date of last update of  the list of operations. 
The headings of the data fields and the names of th e operations shall be also provided in at least one 
other official language of the European Union. 
2. I NFORMATION AND PUBLICITY MEASURES FOR THE PUBLIC  
The Member State, the managing au thority and the beneficiaries shal l take the steps necessary to 
provide information and publicit y to the public on operations  supported by an operational 
programme in accordance with this Regulation. 
2.1. Responsibilities of the Member State and the managing authority 
1. The Member State and the managing authority  shall ensure that the information and 
publicity measures are implemented in accord ance with the communication strategy and 
that these measures aim at the widest possi ble media coverage using various forms and 
methods of communication at the appropriate level.  
2. The Member State or the managing authority sha ll be responsible for or ganising at least the 
following information and publicity measures: 
 
EN 158   EN (a) a major information activity publicising th e launch of the operational programme; 
(b) at least one major information activity  a year which promotes the funding 
opportunities and the strategies pursued and presents the achievements of the 
operational programme, including, where releva nt, major projects, joint action plans 
and other project examples;  
(c) displaying the flag of the European Union in  front of, or at a place visible to the 
public, at the premises of each managing authority; 
(d) publishing electronically the list of op erations in accordance with section 1; 
(e) giving examples of operations, by operationa l programme, on the single website or on 
the operational programme's website that  is accessible through the single website 
portal; the examples should be in a widely spoken official  language of the European 
Union other than the official language or languages of the Memb er State concerned; 
(f) updating information about the operational programme's implementation, including its 
main achievements, on the single website or on the operational programme's website 
that is accessible through th e single website portal.  
3. The managing authority shall involve in info rmation and publicity measures, in accordance 
with national laws and practices, the following bodies: 
(a) the partners referred to in Article 5; 
(b) information centres on Europe, as well as Commission representation offices in the 
Member States; 
(c) educational and research institutions. 
These bodies shall widely disseminate the in formation described in  Article 105(1)(a) and 
(b). 
2.2. Responsibilities of the beneficiaries 
1. All information and communication measur es provided by the beneficiary shall 
acknowledge support from the Funds to the operation by displaying: 
(a) the EU emblem in accordance with the tec hnical characteristics laid down in the 
implementing act adopted by the Commission under Article 105(4), together with a 
reference to the European Union; 
(b) a reference to the Fund or F unds supporting the operation.  
2. During implementation of an operation, the be neficiary shall inform the public about the 
support obtained from the Funds by: 
(a) providing on the beneficiary's website, where such a website exists, a short 
description of the operation,  including its aims and re sults, and highlighting the 
financial support from the European Union;  
 
EN 159   EN (b) placing at least one poster  with information about th e project (minimum size A3), 
including the financial support from the Eur opean Union, at a location readily visible 
to the public, such as the entrance area of a building. 
3. For operations supported by the ESF, and in ap propriate cases for ope rations supported by 
the ERDF or Cohesion Fund, th e beneficiary shall ensure th at those taking part in an 
operation have been informed of this funding.  
Any document, including any attendance or othe r certificate, concerni ng such an operation 
shall include a statement to the effect that  the operational programme was supported by the 
Fund or Funds. 
4. During implementation of an ERDF or Cohe sion Fund operation, the beneficiary shall put 
up, at a location readily visible to the public, a temporary billboard of a significant size for 
each operation consisting in the financing of infrastructure or construction operations for 
which the total public support to the operation exceeds EUR 500 000. 
5. No later than three months after completion of an operation, the beneficiary shall put up a 
permanent plaque or billboard of significant size at a location readily  visible to the public 
for each operation that fulfils the following criteria: 
(a) the total public support to the operation exceeds EUR 500 000; 
(b) the operation consists in the purchase of a physical object or in the financing of 
infrastructure or of construction operations. 
The plaque or billboard shall st ate the type, name and purpose of the operation and shall be 
prepared in accordance with the technical characteristics adopted by the Commission in 
accordance with Article 105(4). 
3. I NFORMATION MEASURES FOR POTENTIAL BENEFICIARIES AND BENEFICIARIES  
3.1. Information measures for potential beneficiaries  
1. The managing authority shall ensure, in acco rdance with the communi cation strategy, that 
the operational programme's strategy, objectives  and funding opportunities offered by joint 
support from the European Union and the Member State, are disseminated widely to potential beneficiaries and all in terested parties, w ith details of the fi nancial support from 
the Funds concerned. 
2. The managing authority shall ensu re that potential beneficiaries are informed on at least the 
following: 
(a) the conditions of eligibility of expenditure  to be met in order to qualify for support 
under an operational programme;  
(b) a description of the procedures for examin ing applications for funding and of the time 
periods involved; 
(c) the criteria for selecting the operations to be supported; 
 
EN 160   EN (d) the contacts at national, regional or local le vel that are able to provide information on 
the operational programmes; 
(e) that applications should pr opose communication ac tivities, proportional to the size of 
the operation, in order to inform the public  about the operation's aims and the EU 
support to the operation. 
3.2. Information measures  for beneficiaries  
1. The managing authority shall inform benefici aries that acceptance of funding constitutes an 
acceptance of their inclusion in the list of operations published in accordance with Article 
105(2). 
2. The managing authority shall provide informa tion and publicity kits, including templates in 
electronic format, to help beneficiaries to meet their obligations set out in section 2.2. 
4. E LEMENTS OF THE COMMUNICATION STRATEGY  
The communication strategy drawn up by the managing au thority shall include at least the following 
elements:  
(a) a description of the approach taken, including the main info rmation and publicity measures 
to be taken by the Member State or the managi ng authority aimed at potential beneficiaries, 
beneficiaries, multipliers and the wider public, having regard to the aims described in Article 105; 
(b) a description of materials that will be made available in formats accessible for people with 
disabilities; 
(c) a description of how beneficiaries will be supported in their communication activities; 
(d) the indicative budget for implem entation of the strategy; 
(e) a description of the administrative bodies, in cluding the staff resour ces, responsible for 
implementing the information and publicity measures; 
(f) the arrangements for the information and publicity measures referred to in section 2, 
including the website or website porta l at which such data may be found; 
(g) an indication of how the information and public ity measures shall be assessed in terms of 
visibility and awareness of policy, operationa l programmes and operatio ns, and of the role 
played by the Funds and the European Union; 
(h) where appropriate, a description of the use of  the main results of the previous operational 
programme; 
(i) an annual update setting out the information a nd communication activitie s to be carried out.
 
EN 161   EN 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 
 
EN 162   EN LEGISLATIVE FINANCIAL STATEMENT  
1. FRAMEWORK  OF THE  PROPOSAL/INITIATIVE   
1.1. Title of the proposal/initiative  
Proposal for a Regulation of the European Parliament and of the Council laying down 
certain common provisions on the European Regional Development Fund, the European 
Social Fund, the Cohesion Fund, the European Agricultural and Rural Development Fund 
and the European Maritime and Fisherie s Fund covered by the Common Strategic 
Framework and laying down general provisio ns on the European Regional Development 
Fund, the European Social Fund and the Cohe sion Fund and repealing Regulation (EC) No 
1083/2006 
1.2. Policy area(s) concerned in the ABM/ABB structure78  
13.Regional policy, ABB activities 13 03 (E uropean Regional Development Fund and 
other regional operations); 13 04 Cohesion Fund 
4. Employment and social affairs, A BB activity 04 02 (European Social Fund) 
1.3. Nature of the proposal/initiative  
■ The proposal/initiative relates to  a new action   
 The proposal/initiative relates to a new action following a pilot project/preparatory action79  
 The proposal/initiative relates to the extension of an existing action   
 The proposal/initiative relates to an action redirected towards a new action   
1.4. Objectives 1.4.1. The Commission's multiannual strategic objecti ve(s) targeted by the proposal/initiative  
The objective of Cohesion Policy is to re duce disparities between the levels of 
development of the various regions, in pa rticular for rural areas, areas affected by 
industrial transition, and regions which suffe r from severe and permanent natural or 
demographic handicaps and to contribute to ac hieving the targets set out in the Europe 
2020 strategy of smart, sustainable and inclus ive growth, and in particular towards the 
achievement of quantitative headline targets identified in that strategy. 
1.4.2. Specific objective(s) and ABM /ABB activity(ies) concerned  
The ERDF aims to strengthen economic, social  and territorial cohesi on in the European 
Union by co-financing investments in Me mber States, while the ESF promotes 
employment, education and social inclusion.  
The Cohesion Fund helps Member States to ma ke investments in transport networks and 
the environment.  
                                                 
78 ABM: Activity-Based Management  – ABB: Activity-Based Budgeting.  
79 As referred to in Article 49(6)(a ) or (b) of the Financial Regulation.  
 
EN 163   EN The specific objectives of intervention by the Funds are as follows: 
- strengthening research, technol ogical development and innovation 
- enhancing accessibility to and use a nd quality of information and communication 
technologies 
- enhancing the competitiveness of small and medium-sized enterprises and the 
agricultural sector (for EAFRD) and fisherie s and aquaculture sect or (for the EMFF)  
- supporting the shift towards a lo w-carbon economy in all sectors;  
- promoting climate change adaptation and risk prevention and management; 
- protecting the environment and promoting resource efficiency; 
- promoting sustainable transport and removing bottlenecks in key network 
infrastructures  
- promoting employment and supporting labour mobility  
- promoting social inclus ion and combating poverty  
- investing in education, sk ills and lifelong learning  
- enhancing institutional capacity and an efficient public administration 
ABM/ABB activities concerned: 
13 03: European Regional Development Fund and other regional interventions 
13 04: Cohesion Fund 
04 02: European Social Fund 
 
EN 164   EN 1.4.3. Expected result(s) and impact 
Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 
Cohesion Policy makes a significant contribu tion to spreading growth and prosperity 
across the Union delivering European policy ob jectives, while reducing economic, social 
and territorial disparities. 
1.4.4. Indicators of results and impact  
Specify the indicators for monitoring implementation of the proposal/initiative. 
The Commission proposes a common set of output indicators which can be aggregated at 
the EU level. The common output indicators are contained in Annexes to the Fund-specific 
regulations. Result indicators will be compulsory  for all programmes and all priorities. The 
impacts of the programmes will be evaluated against the objectives and targets of the 
Europe 2020 strategy, and GDP and unemplo yment indicators where appropriate. 
1.5. Grounds for the proposal/initiative  
1.5.1. Requirement(s) to be met in the short or long term 
The Union shall promote economic, social and territorial cohesion and solidarity among 
Member States. The proposal sets the frame for cohesion policy in th e next funding period 
2014-2020.  
1.5.2. Added value of EU involvement 
EU action is justified both on the grounds of the objectives laid out in Article 174 of the 
Treaty and on the subsidiarity principle.  The right to act is constituted by Article 3 of the 
Treaty on European Union, which states that "[the Union] shall promote economic, social 
and territorial cohesion and solidarity among Me mber States", as we ll as by Article 175 of 
the TFEU which explicitly requests the Union to implement this policy by means of 
Structural Funds, and Article 177 which define s the role of the Cohesion Fund. The aims 
of European Social Fund (ESF), European  Regional Development Fund (ERDF) and 
Cohesion Fund (CF) are defined in Article s 162, 176 and 177. More details on the added 
value of EU involvement can be found in the related Impact Assessment. 
As the EU Budget Review has highlighted, the "EU budget shoul d be used to finance EU 
public goods, actions that Member  States and regions cannot finance themselves, or where 
it can secure better results".80 The legal proposal will respect the principle of subsidiarity 
as the tasks of the Funds are set out in the Treaty and the policy is implemented in 
accordance with the principle of shared ma nagement and respecting the institutional 
competencies of Member States and regions.  
1.5.3. Lessons learned from sim ilar experiences in the past 
A summary can be found in the Impact  Assessment accompanying the proposal.  
                                                 
80 COM(2010) 700, 19.10.2010.  
 
EN 165   EN 1.5.4. Coherence and possible synergy wi th other relevant instruments 
A Common Strategic Framework will be establis hed. This will translate the objectives and 
priorities of Europe 2020 into investment pr iorities for the ERDF, CF, ESF, EAFRD and 
the EMFF which will ensure an integrated us e of the funds to deliver common objectives. 
The common strategic framework will also se t out coordination mechanisms with other 
relevant Union policies and instruments.  
1.6. Duration and financial impact  
 Proposal/initiative of limited duration  
–  Proposal/initiative in effect from 01/01/2014 to 31/12/2020  
–  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. 
1.7. Management mode(s) envisaged81 
 Centralised direct management  by the Commission  
 Centralised indirect management  with the delegation of implementation tasks to: 
•  executive agencies 
•  bodies set up by the Communities82 
•  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  
■ Shared management with the Member States  
 Decentralised management with third countries   
 Joint management with international organisations (to be specified) 
If more than one management mode is indicated, pl ease provide details in the "Comments" section. 
Comments  
. 
.
                                                 
81 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  
82 As referred to in Article 185 of the Financial Regulation.  
 
EN 166   EN 2. MANAGEMENT  MEASURES   
2.1. Monitoring and reporting rules  
Specify frequency and conditions. 
The monitoring system will be based on a sy stem of shared management. Monitoring 
Committees set up for each operational progra mme and annual implementation reports for 
each operational programme will be at the h eart of the approach. Monitoring Committees 
will meet at least once per year. Annual re view meetings between the Commission and 
Member States complement the system.  
In addition to the implementation reports fo r each operational programme progress reports 
in 2017 and 2019 will focus on strategic issues at  Member State level. Based on this, the 
Commission will prepare strategic reports in 2017 and 2019. 
The monitoring and reporting system will be based on output and result indicators. The 
proposals set out a set of commo n indicators that will be us ed for the aggregation of 
information at an EU level. At key point s of the implementation period (2017 and 2019), 
additional analytical requirements on the pr ogress of programmes are part of the annual 
implementation reports. The monitoring and repo rting system fully uses the potential of 
electronic data transfers. 
Evaluation arrangements shall be put in place to evaluate the effectiveness, efficiency and 
the impact of the policy, espe cially with regard to the EU2020 headline targets and other 
relevant impact indicators.  
2.2. Management and control system  
2.2.1. Risk(s) identified  
Since 2007 the European Court of Auditors ('the Court') has repor ted in its annual report an 
estimated error rate for Cohesion Policy as a whole for each budget year (2006-2009) 
based on an independent, annual, ra ndom sample of transactions.  
The Court's estimated level of error for Cohesion Policy has b een high compared to other 
policy groups of the EU budget in these years, and has varied around 5%-10% of 
expenditure for the current programming period. However the error rate provided by the 
Court applies to interim payments submitted by Member States which are reimbursed by 
the Commission before all controls fores een for 2007-2013 programmes have been carried 
out at national and Community level.  
Under current rules, interim payments are certified by the Certifying Authority to the 
Commission after management desk checks on  all expenditure claimed by beneficiaries 
have been carried out, but frequently before  on the spot in-depth management checks or 
subsequent audit activities. Therefore the multiannual financing arrangements mean that 
controls are carried out before  but also after the audit work  is done by the European Court 
of Auditors, and the residual error after all controls ha ve been completed can be 
significantly lower that the error rate detected by the Court. On the basis of past 
experience, the residual error at the end of the programming once all controls have been 
completed is estimated to be in the range of 2-5%. 
 
EN 167   EN A number of measures have been foreseen in  the proposals to reduce the error rate linked 
to the interim payments made by Commissi on (the error rate reported by the European 
Court of Auditors): 
1) Interim payments by the Commission will be  capped at 90% of the amount due to 
Member States, as at this point only part of  the national controls have been carried 
out. The remaining balance will be paid follow ing the annual clearance of accounts once 
audit evidence and reasonable assurance has been provided by the ma naging authority and 
the audit authority. Any irregu larities detected by the Co mmission or the European Court 
of Auditors after the transmission of annua l certified accounts by the managing/certifying 
authority will lead to a net correction. This will provide greater in centives to Member 
States to ensure the regularity of expenditure  certified to the Comm ission compared to the 
present approach which allows for more exte nsive recycling of rec overed funds throughout 
the lifetime of programmes. 
2) Introduction of an annual clearance of  accounts and of an annual closure of 
completed operations or expenditure , which will create additional incentives for national 
and regional authorities to undertake quality cont rols in a timely manner in view of the 
annual certification of accounts to the Comm ission. This constitutes a reinforcement of 
present financial management arrangements a nd offers better assurance that irregular 
expenditure is excluded from the accounts on a nnual basis rather than at the end of the 
programming period.  
It is expected that the measures outlined above (the new reimbursement system, annual 
clearance and closure and definitive net corrections by the Commission) will reduce the 
error rate below 5%, and that the final residual  error rate at closure of programmes will be 
closer to the 2% materiality threshold a pplied by the European Court of Auditors.  
This estimation is nevertheless subject to the capacity of the Commission and Member 
States to address the principal risks outlined below. 
An analysis of errors reported by the Court and the Commission in the last five years 
shows that the principal errors found are concentr ated in a limited number of 
programmes in some Member States.  The error rates based on statistical samples 
reported by audit authorities also demonstrat e substantial variati on between different 
programmes and thus support this analysis. The proposal to focus audit activities and 
resources to high risk programmes, and to  allow proportionate control measures for 
programmes with effective control systems, wo uld address the principal risks in a more 
effective manner and lead to a more efficien t use of existing audit resources both at 
national and Commission level. The possibility  to benefit from proportionate arrangements 
in relation to the situation of each programme  can in itself introduce incentives for more 
effective control measures.  
The analysis of errors that have remain ed undetected by the national management and 
control systems and thus have been identif ied by the Court in its 2006-2009 audits also 
shows a concentration of risk s in the following categories: 
For ERDF and the Cohesion Fund,  public procurement errors  have contributed 
approximately to 41% of the cumulative qua ntifiable errors found. Errors related to 
eligibility accounted for  39% and included various types of e rrors such as errors in project 
selection, funding of ineligible  categories of costs, costs falling outside the eligibility 
period or eligible area, miscalculation of co-f inancing rates, financing of ineligible VAT 
etc. Weaknesses in the audit trail  accounted for 11% of quantifiable errors (with the 
 
EN 168   EN proportion decreasing over time due to reinforced management controls), and errors linked 
to the complex issue of revenue generating projects ( revenues not deduct ed or calculated 
incorrectly and thus the co-fin ancing rate was too high) acco unted for 6% of quantifiable 
errors reported over the period.  
For the ESF, eligibility issues  have contributed approximately  to 58% of the cumulative 
quantifiable errors found and encompassed in particular non-el igible participants , non-
eligible direct and indirect costs , payments after or before the eligibility peri od, ineligible 
expenditure declared on a flat-rate basis, ineligible costs of scholarship and public 
allowances, revenues not deducted when calcula ting eligible expenditure or calculated 
incorrectly, services paid but not  delivered and ineligible VAT. Accuracy issues , that 
represented 7% of quantifiabl e errors reported, concerned  incorrect allocation of direct and 
indirect costs, unduly justified overhead allocation method , mistakes in calculation of 
expenses, non-respect of the real cost prin ciple, over-declaration of costs, incorrect 
calculation of co-financing rates and finally multiple declaration of staff costs. Audit trail 
issues contributed to 35% of errors and referre d to the absence of essential supporting 
documents, in particular at the level of beneficiaries. 
Although the Commission is undertaking a number of actions with the Member States to 
reduce these errors, it is antic ipated that, pending adoption of  the current proposal and their 
proper implementation in the Member States, thes e errors could remain potential risk areas 
in the next programming period 2014-2020. 
Errors related to public procurement in particul ar are a major source of errors that may be 
estimated to an error rate of approximately  2%-4% each year on average for the current 
programming period. Proposals put forward under Cohesion Policy will ensure more 
effective controls, however to achieve a s ubstantial reduction in  the error rate under 
Cohesion Policy, it is important that these actions are complemented by a clarification and 
simplification of public procurement rules. In the absence of streamlined public 
procurement procedures, and if public admini strations and benefici aries in the Member 
States are unable to improve the implementa tion of these rules, Cohesion Policy would 
continue to be systematically affected by this  part of the current error rate. The current 
revision of the Directive on public procuremen t should therefore provi de an opportunity to 
contribute to a reduction of errors in Cohesion Policy along the lines indicated above. 
2.2.2. Control method(s) envisaged  
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 audits of operations. It also maintains the role of the 
Commission, along with the possibility for interruptions, suspensions and financial 
corrections by the Commission. 
In order to reinforce accountability, progr amme authorities would be accredited by a 
national accrediting body in ch arge of their ongoing supervis ion. The proposal offers the 
flexibility to keep the current architecture of three key authorities by programme in cases 
where the current system has been proven to be effective. However it also offers the 
possibility to merge the managing and certifying  authority and thus decrease the number of 
involved authorities in the Member States . A smaller number of bodies in place would 
reduce the administrative burden and enhan ce the possibility for building stronger 
administrative capacity, but also permit a clearer distribution of responsibilities. 
 
EN 169   EN The costs of tasks related to control (at nationa l and regional level, excluding the costs of 
the Commission) are estimated around 2% of th e total funding administ ered in the period 
2007-201383. These costs are related to the following areas of control: 1% is derived from 
national coordination and programme preparat ion, 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 b ody (the costs of which may be offset by 
the merger of the managing and certifying author ities, if this option is selected by the 
Member State); 
- the submission of certified a nnual accounts and an annual  management declaration, 
which implies having carried out  all necessary controls with in the accounting year (which 
may require additional administrative effort); 
- the need for additional audit activity by the audit authorities to audit the management 
declaration or the need to fini sh its audits and expr ess an audit opinion in a shorter period 
of time compared to the current obligations.  
There are however also proposals which will reduce the costs of control:  
- the option to merge the managing and cert ifying authorities, which could allow the 
Member State to save a substa ntial part of the 4% of th e current costs relating to 
certification due to better administrative e fficiency, reduced need for coordination and 
reduction of the scope of audits; 
-the use of simplified costs and Joint Action Plans, which reduces administrative costs and 
burdens at all levels, for both ad ministrations and beneficiaries; 
-proportionate control arrangements for ma nagement verifications and for audits; 
-annual closure, which will reduce the cost of retention of documents for control purposes 
for public administrations and beneficiaries. 
Therefore overall it is expected that propos als will lead to a redis tribution of control 
costs (remaining around 2% of the total funding managed), rather than an increase 
or a reduction . It is however anticipated that this redistribution of costs (across functions 
and due to the proportionate control arrange ments, also across Member States and 
programmes) will enable more effective mitigati on of risks and thus will lead to an error 
rate below 5%.  
In addition to changes in the financial management and control arrangement which 
contribute to the effective detection and earl y exclusion of errors from the accounts, 
the proposal foresees simplification in severa l areas that contributes to the prevention 
of errors . As indicated above, measures proposed in  these areas would address 55% of the 
error rates reported fo r the current period.  
These measures include:  
                                                 
83 Study " Regional governance in the context of globalisation: reviewing governance mechanisms & administrative costs . Administrative 
workload and costs for Member Stat e public authorities of the implementation of ERDF and Cohesion Fund", 2010  
 
EN 170   EN - A more extensive use of simplified costs which reduces errors related to financial 
management, eligibility rules and audit trail,  and reorients both implementation and control 
towards the performance of operations. 
- A greater thematic concentr ation of funding, which can en tail a reduction of errors 
stemming from the wide variety of interventions and thus a variety of eligibility rules 
applied. 
- Clarified rules for the selection of projects. 
- A simpler, flat rate based, approach to revenue-generating operations which will reduce 
the risk of errors in determining and de ducting the revenue generated by operations. 
- Harmonisation, clarification and simplification of  eligibility rules with other EU financial 
support instruments which will reduce mistakes made by beneficiaries who use assistance 
from different sources. 
- A mandatory setup of electronic data manage ment and electronic da ta exchange between 
the administration and beneficiaries which has th e potential to curtail the error rate arising 
from inadequate document retention and simplifying the administrative burden on 
beneficiaries. 
- Annual closure of operations or expenditure , which decreases audit trail errors by 
shortening the time period for document retenti on and avoids the substantial build-up of 
administrative workload linked to the one-off closure at the end of the programming 
period. 
Most of the simplifications listed above also contribute to the reduc tion of administrative 
burden for beneficiaries and thus represent a simultaneous reduction of risks of error 
and of administrative burden.  
2.3. Measures to prevent fraud and irregularities  
Specify existing or envisaged prevention and protection measures. 
The Structural Funds services together wi th OLAF have put in  place a Joint Fraud 
Prevention Strategy which foresees a series of actions to be carried out by the Commission 
and the Member States to prevent fraud in structural actions under shared management. 
Both DGs are currently developi ng a fraud risk scoring mode l which will be used by the 
concerned managing authorities on  116 ESF and 60 ERDF programmes. 
The recent Commission Communication on an anti-fraud st rategy (COM(2011)376 final of 
24.6.2011) welcomes the existing strategy as a best practice initiative and envisages 
complementary actions to it, the most impor tant being that the Commission proposal for 
2014-2020 regulations request Member States to  put in place fraud prevention measures 
which are effective and proportionate  to the identified fraud risks. 
The current Commission proposal includes an explicit requirem ent to put in place such 
measures under Article 86(4)(c). This should reinforce fraud awareness in Member States 
among all bodies involved in the management an d control of funds and thus reduce the risk 
of fraud. 
 
EN 171   EN 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 framewor k headings and budget lines. 
Budget line  Type of  
expenditure  Contribution  Heading of 
multiannual 
financial 
framework 
 Number  
 Diff. (84) from 
EFTA85 
countries from 
candidate 
countries86 from third 
countries within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  
1 Smart 
and 
Inclusive 
Growth 
New 
Headings 
for 2014-
2020 04021700 ESF Convergence 
04021900 ESF Compétitivité Régionale 
13031600 FEDER Convergence 
13031800 FEDER Compétitivité Régionale 13031900 FEDER Coopération territoriale 
européenne 
13040200 Fonds de cohésion Diff NO NO NO NO 
• New budget lines requested : No 
In order  of multiannual financial framework headings and budget lines. 
Budget line  Type of 
expenditure  Contribution  
Heading of 
multiannual 
financial 
framewor k Number  
[Heading……………………………………..]  Diff./non-
diff. from 
EFTA 
countries from 
candidate 
countries from third 
countries within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  
[…] [XX.YY.YY.YY] 
[…] […] YES/NO YES/NO YES/NO YES/NO 
                                                 
84 Diff. = Differentiated appropriations / N on-Diff. = Non-differe ntiated appropriations  
85 EFTA: European Free Trade Association.  
86 Candidate countries and, where applicable, poten tial candidate countries from the Western Balkans.  
 
EN 172   EN 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 
1  Smart and Inclusive growth 
 
DG: REGIO and EMPL   Year 
N87 Year 
N+1 Year 
N+2 Year 
N+3 Year 
N+4 Year 
N+5 Year 
N+6 TOTAL 
y Operational appropriations  (2011 prices)  2014 2015 2016 2017 2018 2019 2020  
Commitments (1) 37.00
4,476
36.94
2,785  37.56
4,774
37.37
5,939  38.02
3,079
37.75
8,354  38.37
9,867
38.15
3,836  38.72
2,325
38.56
2,407  39.02
1,277
38.94
8,791  39.30
3,920
39.33
3,716  268.019,718 267
.075,828  
New ERDF and ESF budget lines  
Payments (2) 5.662
,0725
.648,
1 11.29
7,046
11.25
4,375  21.86
3,675
21.77
8,321  28.57
6,824 .
448,4
69 31.78
9,232
31.61
2,19  36.70
2,873
36.50
2,392  34.77
4,287
34.60
2,638  170.666,010 169
.846,485  
Commitments (1a) 9.482
,5819
.572,
122 9.751,
2409.
614,2
64 9.968,
9039.
631,0
37 10.13
8,977
9.702,
463 10.30
8,621
9.883,
112 10.45
6,512
10.05
3,301  10.59
5,853
10.21
7,011  70.702,687 68.6
73,31 0 
New CF Budget line before transfer to new 
Connecting Europe Facility budget line  
Payments (2a) 1.499
,3971
.455,
451 2.821,
0472.
825,6
65 5.410,
6384.
862,2
38 7.352,
2906.
017,6
86 8.652,
8007.
248,3
9 9.699,
9649.
845,3
52 8.801,
7329.
299,1
37 44.237,869 41.5
53,920  
Transfer to the new Connecting Europe Commitments  (1b) 1397,5 1401,8 1403,8 1414,8 1440,9 1451,3 1489,9 10 000,0
                                                 
87 Year N is the year in which implem entation of the proposal/initiative starts.  
 
EN 173   EN         
facility budget line 
Payments  (2b) 4,8
 903,8
 1003,8 
 1103,2
 1129,9
 1177,6
 1303,6
 6 626,7
 
Appropriations of an administrative nature  financed 
from the envelope fo r specific programmes88  0 0 0 0 0 0 0 0 
13.01.04.01 – External Staff ERDF   (3) 3,060  3,060  3,060  3,060  3,060 3,060  3060 21,420 
13.01.04.03 – External Staff CF   1,340  1,340  1,340  1,340  1,340 1,340 1,340 9,380 
04.01.04.01 - External Staff ESF   5,000 5,000 5,000 5,000 5,000 5,000 5,000 35,000 
Total external staff on former BA lines   9,400 9,400  9,400  9,400  9,400  9,400  9,400  65,800 
OTHER ADMIN APPROPRIATIONS 
FROM REGIO   13,365 13,365  13,365  13,365  13,365  13,365  13,365  93,555
 
OTHER ADMIN APPROPRIATIONS 
FROM EMPL   16,000 16,000 16,000 16,000 16,000 16,000 16,000 112,000 
Commitments =1+1a 
+3 46.52
5,822
46.55
3,672  47.35
4,779
47.02
8,968  48.03
0,747
47.42
8,155  48.55
7,608
47.89
5,064  49.06
9,711
48.48
4,284  49.51
6,554
49.04
0,857  49.93
8,537
49.58
9,492  338.993,760 336
.020,493  TOTAL appropriations 
for DG REGIO, EMPL and MOVE 
Payments =2+2a 
+3 7.200
,2357
.142,
316 14.15
6,859
14.11
8,805  27.31
3,078
26.67
9,324  35.96
7,879
34.50
4,920  40.48
0,798
38.89
9,345  46.44
1,602
46.38
6,509  43.61
4,784
43.94
0,540  215.175,234 211
.671,759  
 
  
y TOTAL operational appropriations  Commitments (4) 46.48
7,058
46.5147.31
6,014
46.9947.99
1,982
47.3848.51
8,843
47.8549.03
0,946
48.4449.47
7,789
49.0049.89
9,772
49.55338722,405 335.
749,138  
                                                 
88 Technical and/or administrative assistance and expenditure in support of the implemen tation of EU programmes and/or actions (f ormer "BA" lines), indirect research, direct research.  
 
EN 174   EN 4,907
 0,203  9,390  
 6,299
 5,519
 2,092
 0,727
 
Payments (5)         
y TOTAL appropriations of an administrative nature 
financed from the envelope for specific programmes  (6) 38,765 38,765 38,765 38, 765 38,765 38,765 38,765 271,355 
Commitments =4+ 6 46.52
5,822
46.55
3,672
 47.35
4,779
47.02
8,968
 48.03
0,747
47.42
8,155  
 48.55
7,608
47.89
5,064
 49.06
9,711
48.48
4,284
 49.51
6,554
49.04
0,857
 49.93
8,537
49.58
9,492
 338.993,760 336
.020,493
 TOTAL appropriations  
under HEADING 1 
of the multiannual financial framework  
Payments =5+ 6         
If more than one heading is affected by the proposal / initiative: N/A  
Commitments (4)         y TOTAL operational appropriations  
Payments (5)         
y TOTAL appropriations of an administrative nature 
financed from the envelope for specific programmes  (6)         
Commitments =4+ 6         TOTAL appropriations  
under HEADINGS 1 to 4 
of the multiannual financial framework 
(Reference amount)  Payments =5+ 6         
 
 
EN 175   EN  
Heading of multiannual financial 
framework:  5 " Administrative expenditure " 
EUR million (to 3 decimal places) 
   Year 
N Year 
N+1 Year 
N+2 Year 
N+3 Year 
N+4 Year 
N+5 Year 
N+6 TOTAL 
DG: REGIO 
y Human resources  80,187 80,187  80,187  80,187  80,187  80,187  80,187  561,309 
y Other administrative expenditure  3,800 3,800  3,800  3,800  3,800  3,800  3,800  26,600 
TOTAL DG REGIO  Appropriations  83,987 83,987  83,987  83,987  83,987  83,987  83,987  587,909 
 
739109    Year 
N Year 
N+1 Year 
N+2 Year 
N+3 Year 
N+4 Year 
N+5 Year 
N+6 TOTAL 
DG: EMPL 
y Human resources  25,400 25,400  25,400  25,400  25,400  25,400  25,400  177,800 
y Other administrative expenditure          
TOTAL DG EMPL Appropriations  25,400  25,400  25,400  25,400  25,400  25,400  25,400  177,800 
 
 
EN 176   EN  
TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework   (Total commitments 
= Total payments) 109,387 109,387 109,387  109,387 109,387 109,387 109,387 765,709 
EUR million (to 3 decimal places) 
   Year 
N89 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 
Commitments  46.63
5,210  
46.66
3,059  47.46
4,166
47.13
8,355  48.14
0,134
47.53
7,542  48.66
6,995
48.00
4,451  49.17
9,098
48.59
3,671  49.62
5,941
49.15
0,244  50.04
7,924
49.69
8,879  339.759,469 336
.786,202  TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework   
Payments          
                                                 
89 Year N is the year in which implem entation of the proposal/initiative starts.  
 
EN 177   EN 3.2.2. Estimated impact on opera tional appropriations  
•  The proposal/initiative does not requir e the use of operational appropriations 
•  The proposal requires the use of operational appropriations, as explained below. Cohesion policy is run by shared management. While 
strategic priorities are set at the EU level, actual day-to-day management is vested in managi ng authorities at national, regio nal and local 
level. While common output indicators are proposed by the Commission, the actual outpu t targets are proposed by these managing 
authorities as part of their operational programmes, and agreed by the Commission. It is therefore difficult to indicate target s for outputs 
until the programmes are drafted, negotiated and agreed in 2013/14. 
Commitment appropriations in EU R million (to 3 decimal places) 
  Year 
N Year 
N+1 Year 
N+2 Year 
N+3 … enter as many years as necessary to show 
the duration of the impact (see point 1.6)  TOTAL  
OUTPUTS  Indicate 
objectives and 
outputs  
 
Ø Type 
of 
output
90 Avera
ge 
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 191…                  
-  O u t p u t                    
-  O u t p u t                    
-  O u t p u t                    
Sub-total for specific objective N°1                 
SPECIFIC OBJECTIVE No 2…                 
-  O u t p u t                    
                                                 
90 Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc .). 
91 As described in Section 1.4.2. "Specific objective(s)…". 
 
EN 178   EN Sub-total for specific objective N°2                 
TOTAL COST                  
 
.
 
EN 179   EN 3.2.3. Estimated impact on appropriations  of an administrative nature 
3.2.3.1. Summary  
•  The proposal/initiative does not re quire the use of administrative 
appropriations  
•  The proposal requires the use of admini strative appropriations, as explained 
below: 
DG REGIO  
EUR million (to 3 decimal places)  
 Year 
N 92 Year 
N+1 Year 
N+2 Year 
N+3 Year 
N+4 Year 
N+5 Year 
N+6 TOTAL 
 
HEADING 5 
of the multiannual 
financial framework         
Human resources 
REGIO  80,187 80,187  80,187  80,187  80,187  80,187  80,187  561,309
 
Other administrative 
expenditure  3,800 3,800  3,800  3,800  3,800  3,800  3,800  26,600 
Subtotal HEADING 5 
of the multiannual 
financial framework  83,741 83,741  83,741  83,741  83,741  83,741  83,741  586,187 
 
 
Outside HEADING 593 
of the multiannual 
financial framework 94         
Human resources 
REGIO  4,4 4,4 4,4 4,4 4,4 4,4 4,4 30,8 
Other expenditure  
of an administrative nature 13,365 13,365 13,365 13, 365 13,365 13,365 13,365  93,555 
Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  17,765
 17,765 
 17,765
 17,765
 17,765
 17,765 
 17,765
 124,355
 
 
TOTAL  101,506
 101,506 
 101,506
 101,506
 101,506
 101,506 
 101,506
 710,542
                                                 
92 Year N is the year in which implem entation of the proposal/initiative starts.  
93 Technical and/or administrative assistance and expenditure in support of the implem entation of EU programmes and/or actions 
(former "BA" lines), indirect research, direct research.  
94 External staff financed from former BA  lines, based on the 2011 Final Allocation fo r Human Resources, including external staff  
at Headquarters and in Delegations  
 
EN 180   EN DG EMPL  
EUR million (to 3 decimal places) 
 Year 
N 95 Year 
N+1 Year 
N+2 Year 
N+3 Year 
N+4 Year 
N+5 Year 
N+6 TOTAL 
 
HEADING 5 
of the multiannual 
financial framework         
Human resources  25,400 25,400 25, 400 25,400 25,400 25,400 25,400 177,800 
Other administrative 
expenditure          
Subtotal HEADING 5 
of the multiannual 
financial framework  25,400 25,400 25,400 25,400 25,400 25,400 25,400 177,800 
 
Outside HEADING 596 
of the multiannual 
financial framework          
Human resources  5,000 5,000 5,000 5,000 5,000 5,000 5,000  35,000 
Other expenditure  
of an administrative nature 16,000 16,000 16,000 16, 000 16,000 16,000 16,000  112,000 
Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  21,000 21,000 21,000 21,000 21,000 21,000 21,000 147,000 
 
TOTAL  46,400 46,400 46,400 46,400 46,400 46,400 46,400 324,800
 
TOTAL  148,933 148,933 148,933  148,933  148,933  148,933  148,933  1.042,531
                                                 
95 Year N is the year in which implem entation of the proposal/initiative starts.  
96 Technical and/or administrative assistance and expenditure in support of the implem entation of EU programmes and/or actions 
(former "BA" lines), indirect research, direct research.  
 
EN 181   EN 3.2.3.2.  Estimated requirements of human resources  
•  The proposal/initiative does not require the use of human resources 
•  The proposal/initiative requires the use of human resources, as explained below: Figures used for the year n are the ones for 2011. 
DG REGIO:  
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 
y Establishment plan posts (officials and temporary agents) REGIO  
13 01 01 01 (Headquarters and 
Commission’s Representation Offices)  606 606 606 606 606 606 606 
13 01 01 02 (Delegations)        
13 01 05 01 (Indirect research)        
10 01 05 01 (Direct research)        
y External personnel (in Full Time Equivalent unit: FTE)97 REGIO  
13 01 02 01 (CA, INT, SNE from the 
"global envelope")  48 48 48 48 48 48 48 
13 02 02 (CA, INT, JED, LA and SNE in 
the delegations)        
- at Headquarters99 56 56 56 56 56 56 56 13 01 04 01  
98 
- in delegations         
                                                 
97 CA= Contract Agent; INT= agency staff (" Intérimaire") ; JED= " Jeune Expert en Délégation" (Young Experts in Delegations); LA= Local  Agent; SNE= Seconded National Expert;  
98 Under the ceiling for external personnel from  operational appropriations (former "BA" lines).  
99 Essentially for Structural Funds, Europ ean Agricultural Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).  
 
EN 182   EN - at Headquarters101 25 25  25 25 25 25 25 13 01 04 03  
100 - in delegations         
XX 01 05 02 (CA, INT, SNE - Indirect 
research)        
10 01 05 02 (CA, INT, SNE - Direct 
research)        
Other         
TOTAL  735 735 735 735 735 735 735 
XX is the policy area or budget title concerned. 
The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within 
the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocatio n procedure and in the 
light of budgetary constraints. 
Description of tasks to be carried out: 
Officials and temporary agents To contri bute to the analysis, negotiation, modification and/or preparation for approval 
proposals for programmes and/or projects in Member State XXX. To contribute to manage, monitor and evaluate the implementation of programmes/projects approved. 
To ensure compliance with the rules governing programme XXX. 
 
External personnel Idem and /or administrative support 
                                                 
100 Under the ceiling for external personnel from  operational appropriations (former "BA" lines).  
101 Essentially for Structural Funds, Europ ean Agricultural Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).  
 
EN 183   EN DG EMPL  
Estimate to be expressed in full time equivalent units without decimals 
 Year 
N Year 
N+1 Year N+2 Year N+3 Year 
N+4 Year 
N+5 Year 
N+6 
y Establishment plan posts (officials and temporary agents)  
04 01 01 (Headquarters 
and Commission’s 
Representation Offices ) 
(200 posts, unit cost 127.000 €)  200 200 200 200 200 200 200 
 (Delegations)        
(Indirect research)        
 (Direct research)        
y External personnel (in Full Time Equivalent unit: FTE)102 
 (CA, INT, SNE from 
the "global envelope")         
 (CA, INT, JED, LA and 
SNE in the delegations)        
- at 
Hea
dquarter
s
104 93 93 93 93 93 93 93 04 
01 
04 01 
103 
- in 
delegati       
                                                 
102 CA= Contract Agent; INT= agency staff (" Intérimaire") ; JED= " Jeune Expert en Délégation" (Young Experts in Delegations); LA= Local  Agent; SNE= Seconded National Expert;  
103 Under the ceiling for external personnel from  operational appropriations (former "BA" lines).  
104 Essentially for Structural Funds, Europ ean Agricultural Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).  
 
EN 184   EN ons  
XX 01 05 02 (CA, INT, 
SNE - Indirect research)        
xx 01 05 02 (CA, INT, 
SNE - Direct research)        
Other xx 01 04 02)        
TOTAL  293 293 293 293 293 293 293 
XX is the policy area or budget title concerned. 
The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within 
the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocatio n procedure and in the 
light of budgetary constraints. 
 
EN 185   EN 3.2.4. Compatibility with the current multiannual financial framework  
•  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 inst rument or revision 
of the multiannual financial framework105. 
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 provid e for co-financing by third parties  
•  The proposal provides that European  funding needs to be co-financed. The 
exact amount cannot be quantified. Th e regulation establishes maximum co-
financing rates differentiated in line with the level of regional development (cf. Art. 73 of proposed regulation): 
Appropriations in EUR m illion (to 3 decimal places) 
 Year 
N Year 
N+1 Year 
N+2 Year 
N+3 Year 
N+4 Year 
N+5 Year 
N+6 Total 
Specify the co-financing 
body  MS  MS  MS  MS  
MS  MS  MS  
 
TOTAL appropriations 
cofinanced  tbd tbd tbd tbd tbd tbd Tbc  
                                                 
105 See points 19 and 24 of the Interinstitutional Agreement.  
 
EN 186   EN 3.3. Estimated impact on revenue  
•  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)  
Impact of the proposal/initiative106 
Budget revenue line: Appropriations 
available for the 
ongoing budget 
year 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 calcula ting the impact on revenue. 
[…]
                                                 
106 As regards traditional own resources (customs duties, sugar le vies), the amounts indicated must be net amounts, i.e. gross 
amounts after deduction of 25% for collection costs.  
 
EN 187   EN