EN   EN EN 
EN   EN  EUROPEAN COMMISSION 
Brussels, 28.5.2010 
SEC(2010) 639 
  
COMMISSION STAFF WORKING DOCUMENT 
 
concerning modifications linked to the revision of the Financial Regulation 
prefiguring the proposal for a Dele gated Commission Regulation amending 
the detailed rules of implementatio n of the Financial Regulation  
 
 
Accompanying document to the 
Proposal for a 
 
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 
 
on the Financial Regulation applicable to  the general budget of the European Union 
{COM(2010) 260 final}  
 
 
DOCUMENT IN ELECTRONICVERSION ONLY  
   
EN 2  EN 1. INTRODUCTION  
The present document, which is not a form al proposal of the Commission, presents 
the changes which would be required to the Implementing Rules (hereinafter IR1) of 
the Financial Regulation (hereinafter FR2), following the proposal for the triennial 
revision of the FR presente d by the Commission as a regulation of the European 
Parliament and the Council recasting the fi nancial rules applicable to the general 
budget of the European Union. 
For procedural reasons, the Commission will  make its formal proposal for amending 
the IR, which is a Commission Regulation, at  a later stage. However, since the 
provisions of the FR and IR are linked, and taking into account the traditional close 
cooperation with the European Parliament, the Council and the Cour t of Auditors on 
the IR, the Commission considers that th e changes envisaged should be made 
available for information at least. This should allow the concerned institutions to 
have a global overview of the pr oposed modifications on the FR. 
Following the new adoption procedure applicable  to the IR, as set out in Article 290 
TFEU, a new articulation between the FR and the IR should be put in place, 
imposing a complete review of the whole set of financial rules. In  this regard, some 
IR provisions which currently define excep tions or derogations to FR provisions 
should be introduced in the FR itself, wh ile the IR should be limited to technical 
details and implementing modalities3.  
The proposal of revision of FR and changes envisaged to the IR build on the results 
of the public consultation of 19 October 20094, which resulted in a total of 235 
contributions of stakeholders who impleme nt or receive Union funds: from citizens 
to public and private operators, regional and national administrations. These texts 
have been elaborated taking in to account the results  of that consultation, as well as 
the experience of its opera tional services and lessons learned from previous 
revisions. 
The changes envisaged are shown in the tabl e in Annex. They are indicative and do 
not pre-empt the changes which will be finally proposed by th e Commission on the 
basis of the FR adopted by the Legislative Authority. 
2. MODIFICATIONS PROPOSED BY THE COMMISSION SERVICES  
2.1. Budgetary principles 
Regarding the principle of unity of the budget , the simplification of the rules 
governing interest generated by pre-financing  (Articles 5, 5a FR) should render 
                                                 
1 Commission Regulation N° 2342 /2002 of 23 December 2002. 
2 Council Regulation N°1605/2002 of 26.06.2002. 
3 Article 290 TFEU foresees that the legislative authority may entrust delegated powers to the Commission 
only " […] to supplement or amend certain non-essential elem ents of the [concerned] legislative act", i.e. the 
FR. 
4 http://ec.europa.eu/budget/library/consultations/FRconsult2009/draft_report_en.pdf 
EN 3  EN obsolete some provisions of the IR. In particular, as the ob ligation of grant recipients 
to ensure that interest is generated on pre-financing is removed from the FR, the 
detailed and complex provisions laying down this obligation become obsolete. 
Where such obligation would still be imposed on entities  to which implementation 
tasks are entrusted for pre-financing paid to these entities, the rules for identifying the interest generated shall be stipulated in the delegation agreement.  
Regarding the principle of universality , the possibility of ma king available assigned 
revenue before the revenue has actually been received by the Commission should be 
extended in line with the changes proposed in  the FR, in particul ar where external 
assigned revenue from Member States pres ents no exchange risk. By contrast, the 
case of repayments of payments on account sh ould be deleted as those payments do 
not reduce the Union intervention in  accordance with Article 228 IR.  
Regarding the definition of an effective and efficient internal control system required 
for sound financial management, the possibility to rely on management 
declarations from implementing partners should be introduced, in line with the 
management declaration of assurance provided for in Articles 53a and 53b. 
Moreover, account should be taken of the concept of tolerable risk of error 
introduced into Article 28b FR, to improve  the cost-benefit ration of controls.  
2.2. Establishment and stru cture of the budget 
In line with the clarif ication of the presentation of the draft budget proposed in the 
FR, the provisions laying down the conten t of the general introduction preceding the 
draft budget should be laid down in the FR. Moreover, the list of working documents 
to be prepared in support of the draft budge t should be updated in view changes of 
terminology and legislation ha ving a link with the FR.  
2.3. Implementation of the budget 
2.3.1.  Methods of implementation  
The FR contains revised provisions on the methods of implementation. The IR 
should be modified accordingly. Important provisions such as the one governing annual summaries of audits and declarat ions transmitted to the Commission under 
shared management (Article 37a IR) should be  transferred to the FR  (now in Articles 
53a and 53b, applicable to all types of i ndirect management). Rules applying to a 
specific management mode, such as Ar ticle 43 of the IR in force ('joint 
management'), should be deleted in line with the harmonisation of management 
modes proposed for the FR, unless there is a need for specific rules, such as those 
concerning International Organisati ons and Financial Instruments. 
The IR should lay down the conditions  under which the Commission may accept 
systems, rules and procedures of the entity or person entrusted with budget 
implementation tasks as providing a level of  protection for the financial interests of 
the EU which is equivalent  to that required under the FR. Furthermore, the IR 
should contain provisions which render the ex-ante assessment  of such systems, 
rules and procedures as economic as possible. The content of the agreements  
entrusting tasks of budget implementation sh ould be defined in a more detailed 
EN 4  EN manner to ensure sound financial management. In particular, agreements in 
external relations should contain a contracting deadline of 3 years, reflecting the 
deadline laid down in Article 166 FR. As the clearance-of-accounts procedures  
now apply to all management modes, th e relevant provisions should be adapted 
accordingly.  
2.3.2.  Financial Actors  
Controls (ex-ante and ex-post) by th e Authorising Officer by delegation  should 
be better defined in order to ensure a c oherent approach thro ughout the Commission, 
in particular the link between controls and the specific risk of an action. Changes to 
the current text should be made to provide  for multi-annual control strategies (for 
multi-annual programmes) and on a follow-up of systemic problems identified. 
 
As regards the appointment of the Accounting Officers , the possibility for two or 
more institutions to appoi nt the same person as Ac counting Officer should be 
provided for, under the condition that proper arrangements are made to avoid conflict 
of interest.   In order to address issues id entified during the course of validations carried out by 
the Accounting Officer , the IR should be modified by providing the possibility to 
notify to the Accounting Officer all si gnificant modification of a financial 
management system and by allowing him to re-perform a validation. The Authorising 
Officer should remain responsible for the completeness of the information forwarded 
to the Accounting Officer. As regards im prest accounts opened outside the Union, 
provisions should be included in  the FR governing inter alia the selection of the local 
banks and the imprest account holder's responsibility.  
The possibility to use debit cards  linked to imprest accounts should be introduced. 
This should facilitate payments in particular in the Union Delegations and Representations and address the ri sks associated with handling cash. 
 The FR provides for fiduciary accounts  opened in the name of the Commission and 
managed on its behalf by an international fi nancial institution. The IR should provide 
that such accounts may be opened or clos ed only in agreement with the Accounting 
Officer and the stipulate need for transmission of financial and management information regarding these accoun ts to the Accounting Officer. 
 
2.3.3.  Revenue operations  
When additional time for payment by the debt or is allowed, the possibility should be 
introduced for the Accounting Officer in exceptional circumstances to refrain from requiring a guarantee  where this requirement would impede the recovery of the 
amount due. Provisions should be intr oduced to implement the Commission 
Communication of 2009 concer ning the reduction in the risks of management of 
fines provisionally cashed in the competition area, such as the obligation of the Commission to secure the provisionally cas hed amounts by having them invested in 
financial assets. In this way the security and liquidity of the monies will be ensured whilst also yielding financial remunerations. 
EN 5  EN The provision on recovery of fines and penalties  and the articulation between cash 
payment and the lodging of a guarantee by the debtor should be clarified so as to 
allow the debtor to choose cash payment or a guarantee provided that the latter is 
acceptable to the Accounting Officer. Furt hermore, the consequence after the 
exhaustion of all legal remedies should be further specified.  
2.3.4.  Expenditure operations 
The category of administrative expenditure cov ered by provisional commitments  
should be extended to include payments in  instalments of loans raised by an 
Institution to acquire real estate assets (to be treated similar to a rent payment), civil 
protection emergency interventions and commu nications activities in the context of 
events organised by the Union. 
Concerning the validation of expenditure , the IR need to be clarified, simplified 
and modernised in the light of practice. In  particular, rules of passing for payment of 
procurement contracts and grants should be distinguished depending on whether the 
passing for payment is made for interim a nd balance payments or for pre-financing 
payments, as the two types of payment have a different aim. The electronic 
validation should be allowed in a computerised system. 
2.3.5.  Procurement  
A new procedure based on a  list of vendors  should be added for contracts below the 
threshold set by Directive 2 004/18/EC but abov e 60,000 EUR. The registration as 
vendor should not imply the se lection of the relevant econ omic operator according to the 
selection criteria. This shou ld ease the administrative burden both for the economic 
operators and for the services of the contract ing authority. 
 The provision on ex-ante and ex-post advertising of contracts  below the threshold set 
by Directive 2004/18/EC should be streamlined and rendered coherent with the Financial 
Transparency System operated by the Co mmission. The thresholds for negotiated 
procedures should be increased and simpli fied in order to ta ke into account the 
administrative costs of such procedures. Payment against invo ices should be possible up 
to EUR 1,000 instead of EUR 500; negotiated procedure on the basis of a single  tender 
should be possible between up to 1 5,000 EUR instead of EUR 5,000; negotiated 
procedure with three tenders should be possible between up to EUR 60,000 instead of 
EUR 25,000 (hence, the EUR 25,000 threshold sh ould be abolished). 
 In exceptional and duly justif ied circumstances conditions, c ontracting authorities should 
be exempted from  including the model contract  in the tender docum ents (in particular, 
where there is generally no po ssibility of imposin g the Commissions' model contract); 
also, under the same conditions,  there should be th e possibility for the model contract to 
refer only to national  law, as reference to EU law ma y have a negative impact on the 
price (e.g. in case of  building contracts). 
 Due to the alignment, provided for in the FR, of rules of exclusion and selection criteria 
with the Directive 2004/18/EC, the IR should be modified accordingly.  
 The thresholds  for optional  waiving the declaration on honour  regarding n on-exclusion 
should be adapted to the ne w thresholds for very low va lue contracts (changed from 
EN 6  EN EUR 5,000 to EUR 15,000) and external actions (change d from EUR 10,000 to EUR 
20,000).  In assessing economic and financial viability of tenderers , the contracting authority 
should be able to rely on docum ents submitted fo r earlier procedures if they still fulfil the 
requirements. This would bri ng about a simplification of pr ocedural requirements since 
tenderers will not be required to re-submitting identical documents.  
In line with the greater em powerment of the Au thorising Officer a nd the principle of 
proportionality whether a guarantee on pre-financing  is required shou ld not depend on 
the value of the pre-financing, but on the risk assessment by the competent Authorising 
Officer. 
2.3.6.  Grants  
In order to simplify procedures for potential beneficiaries it is  proposed to shift towards a 
performance-based system featuring agreed indicators and objectives, while 
maintaining the real cost regime as an al ternative regime, the relevant implementing 
provisions should be revi sed accordingly. In part icular, provisions on the scope of grants 
should be updated by eliminatin g those related to financial instruments and prizes which 
are dealt in a separate title of the FR from grants and are covered by a generic definition. 
The notion of beneficiaries shou ld be clarified along with th e current interpretation that 
they may refer to one or several entities. It should also be made clear that the 
partnerships are op ened for subsequent oper ating grants. As regard s forms of grants, the 
IR should clarif y the methodology fo r the determination of lump  sums, the definition of 
standard scale of unit cost s as a subcategory of lump sums and the flat-rates.  
The new approach would encompass the meth ods of control (inc luding operational 
audits), wile ensuring the respect of common principles applicable to grants. For these 
reasons, the maximum threshol d per lump sum (EUR 25,000) should be deleted and be 
left to the College to decide when ad opting a specific lump sum framework. 
To ensure that the recourse to lump sums  i s  p a r t  o f  a  r i s k  assessment made by the 
Authorising Officer and to safeguard equal treatment be tween beneficiaries, the 
methodology for the dete rmination of lump sums (consiste ncy with the fund ed activities, 
maximum amount, basis and methods of calc ulation) should be  adopted by the 
Commission, except for sche mes of low value grants ( ≤ EUR 50,000). The Authorising 
Officer would then be able, within the pr ogramme duration, to establish lump sums, 
scales of unit costs and flat  rates on the basis of a prov isional budget submitted by the 
applicant taking into account its internal ac counting practices, including only acceptable 
cost categories, which are cons istently applied to similar operations by the applicant (no 
bias detrimental to EU Funds). 
In parallel, the real-cost regime, maintained as a by-default regime, should be reviewed  
(clarification of various types of  costs, costs actually incurr ed, in kind contributions) and 
the possible profit  of an action should be recovered on a pro-rata  basis (where EU funds 
50% of the costs, only  50% of the profit s hould be recovered).  
Procedures for the award of grants  should be reviewed to leave the choice of 
modalities as much as possible to the Authorising Office r as regards the instrument to 
award grants, bank guarantees and documents serving to  assess operational  and financial 
EN 7  EN capacity. Furthermore, the award of low- value grants should be made easier, by 
removing excessive administrative requirem ents, in line with the principle of 
proportionality, by increa sing the current thre shold from EUR 2 5,000 to EUR 50,000. 
2.3.7.  Presentation of the accounts and accounting 
The IR should reflect the adjustments made  in the FR to update Union's rules and 
principles on accounting  with the IPSAS's rules. Moreover, in order to formalise 
the current practice about communicati on between institutions' and agencies' 
Accounting Officers, accounts may be sent by electronic means. 
As regards reconciliation and verification of the accounts , the IR should be revised 
to take into account the resp ective responsibilities of the Accounting Officer and the 
Authorising Officer. 
Concerning the property inventory , it is considered disproportionate to apply the 
procedure for sale of fixed assets to sales between Union's institutions and their Agencies or bodies. 
2.3.8.  Special provisions on external actions  
In line with the proposition to authorise the Commission to set up and manage EU trust 
funds , which would intervene in emergency, post-emergency crisis operations or for 
thematic programmes and would pool the cont ribution of the Unio n budget with funds 
from other donors,  specific pr ovisions should be inserted in the IR to regulate their 
management. 
As the balanced approach of the decentralise d management mode is proposed as a model 
for common principles of the indirect budget implementatio n newly introduced in the 
FR, no specific prov ision is necessary for the external act ions in the part two of the IR. In 
particular, provisions on financing agreemen t and on the automatic de-commitment 
related to multiannua l programmes should be  deleted as they ha ve become obsolete. 
As regards special provisions on procurement  in the framework of external actions, it 
is proposed to simplify the procedures and increase the threshold for awarding service 
contracts, supply contracts and work contract s. The use of the negotiated procedure in 
the latter cases should be also simplified. Te nders documents should be accepted if they 
refer to quality assurance syst ems based also on international standards, in order to avoid 
unduly exclusion of lo cal contractors. The guarantees on pre- financing should be 
governed by the genera l regime. The time-lim its for procedures s hould be made more 
flexible. Concerning the specia l provisions on grants in the framework of external 
actions, more flexibilit y should be allowed fo r the financing in full , in accordance with 
the flexibility granted in the FR . Moreover, the regime applic able to grants should be 
aligned with the exceptions already foreseen for procurem ents in extern al actions by 
providing that the date of the receipt of a gr ant application is cons idered as the day on 
which the applicatio n is submitted.  
2.3.9.  External Experts  
In the light of the proposed clarificati on of the scope of th e special selection 
procedure of natural persons as experts in the FR, the related provision of the IR 
EN 8  EN should be modified concerning the content of  the call for expression of interest and 
the proposals on the maximum duration of the list.  
EN  Error! Unknown document property name.  EN 
EN  Error! Unknown document property name.  EN WORKING  DOCUMENT:  TABLE IMPLEMENTING RULES (I/II)  
COMMISSION REGULATION 2342/2002 P ROPOSED AMENDMENT  C OMMENTS  
PART  ONE 
COMMON  PROVISIONS PART  ONE 
COMMON  PROVISIONS  
TITLE  I 
SUBJECT TITLE  I 
SUBJECT  
Article 1 
Subject 
(Article 1 of the Financial Regulation) Article 1 
Subject 
(Article 1 of the Financial Regulation)  
This Regulation sets out the rules for 
implementing the provisions of Regulation (EC, Euratom) No 1605/2002 (hereinafter «the Financial Regulation»). This Regulation sets out the rules for 
implementing the provisions of Regulation (EC, Euratom) No 1605/2002 (hereinafter «the Financial Regulation»).  
The institutions concerne d by this Regulation are 
the institutions within the meaning of the Financial Regulation. The institutions concerne d by this Regulation are 
the institutions within the meaning of the Financial Regulation.  
EN  Error! Unknown document property name.  EN Article 2 
Legislative acts concerni ng the implementation of 
the budget 
(Article 2 and 49 of the Financial Regulation) Article 2 
Legislative acts concerni ng the implementation of 
the budget 
(Article 2 and 49 of the Financial Regulation)  
The Commission shall a nnually update in the 
preliminary draft budget the information on the acts referred to in Article 2 of the Financial Regulation. The Commission shall a nnually update in the 
preliminary draft budget the information on the acts referred to in Article 2 of the Financial Regulation.  
Any proposal or amendment to a proposal 
submitted to the legislative authority shall clearly indicate the provisions containing derogations 
from the Financial Regulation or from this Regulation and state the specific reasons justifying such derogations in the relevant Explanatory Memorandum. Any proposal or amendment to a proposal 
submitted to the legislative authority shall clearly indicate the provisions containing derogations 
from the Financial Regulation or from this Regulation and state the specific reasons justifying such derogations in the relevant Explanatory Memorandum.  
EN  Error! Unknown document property name.  EN TITLE  II 
BUDGETARY  PRINCIPLES TITLE  II 
BUDGETARY  PRINCIPLES  
CHAPTER  1 
PRINCIPLES OF UNITY AND BUDGET 
ACCURACY  CHAPTER  1 
PRINCIPLES OF UNITY AND BUDGET 
ACCURACY   
Article 3 
Scope of pre-financing 
(Article 5a of the Financial Regulation) Article 3  
Scope of pre -financing  
(Article 5a of the Financial Regulation)   
deleted 
1. In the case of direct centralised 
management involving a number of partners, indirect centralised mana gement and decentralised 
management within the meaning of Article 53 of the Financial Regulation, the rules laid down in Article 5a of the Financial Regulation shall apply solely to the entity receiving pre-financing directly from the Commission. 1.
 In the case of direct ce ntralised 
management involving a number of partners, 
indirect centralised mana gement and decentralised 
management within the meaning of Article 53 of 
the Financial Regulation, the rules laid down in 
Article 5a of the Financial Regulation shall apply 
solely  to the entity receiving pre -financing 
directly from the Commission . Simplification: the generation of interest on 
pre-financing and their use shall be arranged in the agreements concluded with delegates (entrusted entities listed in Article 53 FR).  . 
2. Pre-financing shall be regarded as 
representing a significa nt amount within the 
meaning of Article 5a(2)(a) of the Financial Regulation if the amount is higher than EUR 50,000. 2.
 Pre-financing shall be regarded as 
representing a significant amount within  the 
meaning of Article 5a(2)(a) of the Financial 
Regulation if the amount is higher than 
EUR  50,000.  Obsolete due to the changes in FR 
However, for external ac tions pre-financing shall 
be regarded as representi ng a significant amount if However, for external actions pre -financing shall 
be regarded as representi ng a significant amount if Obsolete due to the changes in FR 
EN  Error! Unknown document property name.  EN the amount is higher than EUR 250,000. For crisis 
management aid and humanitarian aid operations, pre-financing shall be rega rded as representing a 
significant amount if it exceeds per agreement EUR 750,000 at the end of each financial year and is for projects of a duration of more than 12 months. the amount is higher than EUR
 250,000. For crisis 
management aid and humanitarian aid operations, 
pre-financing shall be regarde d as representing a 
significant amount if it exceeds per agreement 
EUR  750,000 at the end of each financial year and 
is for projects of a duration of more than 
12 months.  
Article 4 
Recovery of interest yielded by pre-financing 
(Article 5a of the Financial Regulation) Article 4  
Recovery of interest yielded by pre -financing  
(Article 5a of the Financial Regulation)   
1. The authorising officer responsible shall 
recover for each reporting period following the implementation of the decision or agreement the amount of interest generated by pre-financing payments which exceed EUR 750,000 per agreement at the end of each financial year. 1.
 The authorising officer responsible shall 
recover for each reporting period following the 
implementation of the decision or agreement the 
amount of interest generated by pre -financing 
payments which exceed EUR  750,000 per 
agreement at the end of each financial year.  Simplification: the generation of interest on 
pre-financing and their use shall be arranged in the agreements concluded with delegates (entrusted entities liste d in Article 53 FR). 
2. The authorising officer responsible may 
recover at least once a year  the amount of interest 
generated by pre-financing payments lower than those referred to in paragraph 1, taking account of the risks associated with his management environment and the nature of the actions financed. 2.
 The authorising officer responsible may 
recover at least once a year  the amount of interest 
generated by pre -financing pay ments lower than 
those referred to in para graph 1, taking account of 
the risks associated with his management 
environment and the nature of the actions 
financed.   
3. The authorising officer responsible shall 
recover the amount of interest generated by pre-financing payments which exceeds the balance of 
the amounts due as referred to in Article 5a(1) of 3.
 The authorising officer responsible shall 
recover the amount of in terest generated by pre -
financing payments which exceeds the  balance of 
the amounts due as referred to in Article 5a(1) of  
EN  Error! Unknown document property name.  EN the Financial Regulation.” the Financial Regulation.”  
Article 4a 
Accounting for interest yielded on pre-financing 
(Article 5a of the Financial Regulation) Article 4a 
Accounting for interest yielded on pre-financing 
(Article 5(4) 5a  of the Financial Regulation) Where interest is due, it is on the basis of 
Article 5(4) RF. Article 5a is deleted. 
1. Authorising officers shall ensure that, in grant decisions or agreements with beneficiaries and intermediaries, pre-fi nancing is paid to bank 
accounts or sub-accounts which allow the funds and related interest to be identified. Otherwise, the 
accounting methods of th e beneficiaries or 
intermediaries must make it possible to identify the funds paid by the Community and the interest or other benefits yielded by these funds. 1. The agreement concluded with the 
entities or persons listed in Article 53  
paragraph 1 point (2) of the Financial 
Regulation  Authorising officers shall ensure that, 
in grant decisions or agreements with 
beneficiaries and intermediaries stipulate that , 
pre-financing is paid to bank accounts or sub-
accounts which allow the funds and related interest to be identified. Otherwise, the accounting methods of the recipients 
beneficiaries  or 
intermediaries must make it possible to identify 
the funds paid by the Community  Union  and the 
interest or other benefi ts yielded by these funds. Adjustment in line with deletion of Article 5a 
FR 
2. In the cases referred to in the second subparagraph of Article 5a(1) of the Financial 
Regulation, the authorising officer responsible shall draw up before the e nd of each financial year 
estimates of the amount  of any interest or 
equivalent benefit yielde d by these funds and shall 
establish a provision for that amount. That provision shall be ente red in the accounts and 
cleared by effective recovery, following the implementation of the decision or agreement. 2. In the cases referred to in the second 
subparagraph of Article 5a(1) of the Financial 
Regulation, the authorising officer respo nsible 
shall draw up before the e nd of each financial year 
estimates of the amount of any interest or 
equivalent benefit yielded by these funds and shall 
establish a provision for that amount. That 
provision shall be entere d in the accounts and 
cleared by effective recovery, following the 
implementation of the decision or agreement.  In line with the modification of the 
provisions on forecast of revenues, the obligation to register a forecast of revenue is deleted for eventual interest due at the end of the action when the amount cannot be estimated with a sufficient approximation. 
EN  Error! Unknown document property name.  EN Where pre-financing is paid from the same budget 
line, under the same basic act and to beneficiaries 
covered by the same award procedure, the 
authorising officer may dr aw up a single estimate 
of amounts receivable for a number of debtors. Where pre -financing is paid from the same budget 
line, under the same basic act and to beneficiaries 
covered by the same award procedure, the 
authorising officer may dr aw up a single estimate 
of amounts receivable for a number of debtors.   
3. Articles 3 and 4 and paragraphs 1 and 2 of 
this Article shall be wit hout prejudice to the entry 
of pre-financing on the a ssets side of financial 
statements, as laid down in the accounting rules referred to in Article 133 of the Financial Regulation. Articles 3 and 4 and paragraphs 1 and 2 of this 
Article  Provisions concerning interest on pre-
financing  shall be without prejudice to the entry 
of pre-financing on the a ssets side of financial 
statements, as laid down in the accounting rules referred to in Article 133 of the Financial Regulation. Sentence rephrased to  take into account the 
proposed deletion of various provisions on pre-financing interest.  
CHAPTER  2 
PRINCIPLE OF ANNUALITY  CHAPTER  2 
PRINCIPLE OF ANNUALITY   
Article 5 
Appropriations for the financial year 
(Article 8(3) of the Financial Regulation) Article 5 
Appropriations for the financial year 
(Article 8(3) of the Financial Regulation)  
The commitment appropriations and payment 
appropriations entered in the budget for a financial year and which have to be  used during that year 
shall consist of the approp riations authorised for 
that financial year. The appropriations authorised 
for the financial year are: The commitment appropriations and payment 
appropriations entere d in the budget for a 
financial year and which have to be used during 
that year shall consis t of the appropriations 
authorised for that financial year. The 
appropriations authorised for the financial year are  
shall consist of : Clarification: the EU  Budget only includes 
(a), while this Article aims at listing all appropriations which are authorised for a given financial year.  
(a) appropriations provided in the budget, (a ) appropriations provided in the budget,  
EN  Error! Unknown document property name.  EN including by amending budgets; including by amending budgets; 
(b) appropriations carried over; (b ) appropriations carried over;  
(c) appropriations made available again in 
accordance with Articles 157 and 160a of the Financial Regulation; (c) appropriations made available again in 
accordance with Articles 157 and 160a of the Financial Regulation;  
(d) appropriations arising from payments on 
account which have been repaid in accordance 
with Article 228; (d) appropriations arising from payments on 
account which have been repaid in accordance with Article 228;  
(e) appropriations provided following the 
receipt of revenue assi gned during the financial 
year or during previous financial years and not used. (e) appropriations provided following the 
receipt of revenue assigned during the financial year or during previous financial years and not 
used.  
Article 6 
Carryover of appropriations 
(Article 9(2) of the Financial Regulation) Article 6 
Carryover of appropriations 
(Article 9(2) of the Financial Regulation)  
1. The commitment appropriations referred 
to in Article 9(2)(a) of  the Financial Regulation 
may be carried over only if the commitments could not be made before 31 December of the financial year for reasons not attributable to the authorising officer and if the preparatory stages are sufficiently advanced to make it reasonable to surmise that the commitment will be made by no later than 31 March of the following year. 1. The commitment appropriations referred 
to in Article 9(2)(a) of the Financial Regulation may be carried over only if the commitments could not be made before 31 December of the financial year for reasons not attributable to the authorising officer and if  the preparatory stages 
are sufficiently advanced to make it reasonable to surmise that the commitment will be made by no later than 31 March of the following year.  
EN  Error! Unknown document property name.  EN 2. The preparatory stages referred to in 
Article 9(2)(a) of the Financial Regulation, which should be completed by 31 December of the financial year in order to  allow a carryover to the 
following year, are in particular: 2. The preparatory stages referred to in 
Article 9(2)(a) of the Fi nancial Regulation, which 
should be completed by 31 December of the financial year in order to  allow a carryover to the 
following year, are in particular: 
(a) for global commitments within the meaning of Article 76 of the Financial Regulation, 
the adoption of a financi ng decision or the closing 
by that date of the consultation of the departments concerned within each in stitution for the adoption 
of the decision; (a) for global commitments within the 
meaning of Article 76 of the Financial Regulation, 
the adoption of a financi ng decision or the closing 
by that date of the consu ltation of the departments 
concerned within each in stitution for the adoption 
of the decision;  
(b) for individual commitments within the 
meaning of Article 76 of the Financial Regulation, 
the advanced stage of preparation of the contracts or agreements. This advanced stage of preparation of the contracts or agreements shall mean the completion of the selection of potential contractors or beneficiaries. (b) for individual commitments within the 
meaning of Article 76 of the Financial Regulation, 
the advanced stage of preparation of the contracts or agreements. This advanced stage of preparation of the contracts or agreements shall mean the completion of the selection of potential contractors or beneficiaries.  
3. Appropriations carried  over in accordance 
with Article 9(2)(a) of the Financial Regulation 
which have not been committed by 31 March of the following financial year shall be automatically cancelled. 3. Appropriations carried over in accordance 
with Article 9(2)(a) of the Financial Regulation which have not been committed by 31 March of the following financial year shall be automatically cancelled.  
The Commission shall inform the budgetary 
authority by 30 April of the appropriations cancelled in this way. The Commission shall inform the budgetary 
authority by 30 April of the appropriations cancelled in this way.  
EN  Error! Unknown document property name.  EN 4. Appropriations carried  over in accordance 
with Article 9(2)(b) of the Financial Regulation 
may be used until 31 December of the following financial year. 4. Appropriations carried over in accordance 
with Article 9(2)(b) of the Financial Regulation may be used until 31 December of the following financial year.  
5. The accounts shall identify appropriations 
carried over in this way. 5. The accounts shall identify appropriations 
carried over in this way.  
6. The appropriations for staff expenditure 
referred to in Article 9(6) of the Financial Regulation are those for remuneration and 
allowances for members and staff of the institutions. 6. The appropriations for staff expenditure 
referred to in Article 9(6) of the Financial 
Regulation are those for remuneration and allowances for members and staff of the institutions  to which the Staff Regulation apply
. Codification of current practice. 
Article 6a 
Provisional twelfths 
(Article 13(2) of the Financial Regulation Article 6a 
Provisional twelfths 
(Article 13(2) of the Financial Regulation  
The total allotted appropri ations of the previous 
financial year, as specifie d in Article 13(2) of the 
Financial Regulation, sha ll be understood to refer 
to the appropriations for the financial year referred to in Article 5 of this Regulation, after adjustment for the transfers made during that financial year. The total allotted appropriations of the previous 
financial year, as specifie d in Article 13(2) of the 
Financial Regulation, shall be understood to refer 
to the appropriations for the financial year referred to in Article 5 of this Regulation, after 
adjustment for the transfers made during that financial year.  
EN  Error! Unknown document property name.  EN CHAPTER  3 
(CHAPTER 4 OF THE FINANCIAL 
REGULATION ) 
PRINCIPLE OF UNIT OF ACCOUNT  CHAPTER  3 
(CHAPTER 4 OF THE FINANCIAL 
REGULATION ) 
PRINCIPLE OF UNIT OF ACCOUNT   
Article 7 
Rate of conversion between the euro and other 
currencies 
(Article 16 of the Financial Regulation) Article 7 
Rate of conversion between the euro and other 
currencies 
(Article 16 of the Financial Regulation)  
1. Without prejudice to specific provisions 
arising from the applicat ion of sector-specific 
regulations, conversion by the responsible authorising officer shall be made using the daily 
euro exchange rate publishe d in the C series of the 
Official Journal of the European Union . 1. Without prejudice to specific provisions 
arising from the applicat ion of sector-specific 
regulations, conversio n by the responsible 
authorising officer shall be made using the daily euro exchange rate published in the C series of the Official Journal of the European Union .  
Where conversion between the euro and another 
currency is to be made by the contractors or beneficiaries, the specific arrangements for conversion contained in procurement contracts, 
grant agreements or financing agreements shall apply. Where conversion between the euro and another 
currency is to be made  by the contractors or 
beneficiaries, the specific arrangements for conversion contained in procurement contracts, 
grant agreements or fina ncing agreements shall 
apply.  
1a In order to avoid that currency conversion 
operations have a significant impact on the level of the Community co-financing or a detrimental impact on the Community budget, the specific arrangements for conversion referred to in 1a In order to avoid th at currency conversion 
operations have a significant impact on the level of the Communit
y Union  co-financing or a 
detrimental impact on the Community  Union  
budget, the specific arra ngements for conversion  
EN  Error! Unknown document property name.  EN paragraph 1 shall provide, if appropriate, for a rate 
of conversion between the euro and other currencies to be calculated using the average of the daily exchange rate in a given period. referred to in paragra ph 1 shall provide, if 
appropriate, for a rate of  conversion between the 
euro and other currencies to be calculated using the average of the daily exchange rate in a given period. 
2. If no daily euro exchange rate is published in the Official Journal of the European Union  for 
the currency in questi on, the responsible 
authorising officer shall use the accounting rate 
referred to in paragraph 3. 2. If no daily euro exchange rate is published 
in the Official Journal of the European Union  for 
the currency in question, the responsible authorising officer shall use the accounting rate referred to in paragraph 3.  
3. For the purposes of the accounts provided 
for in Articles 132 to 137 of the Financial Regulation and subject to  Article 213 of this 
Regulation, conversion between the euro and another currency shall be made using the monthly accounting rate of the euro. That accounting exchange rate shall be established by the Commission’s accounting o fficer by means of any 
source of information he regards as reliable, on 
the basis of the exchange rate on the penultimate working day of the month preceding that for which the rate is established. 3. For the purposes of the accounts provided 
for in Articles 132 to 137 of the Financial Regulation and subject to  Article 213 of this 
Regulation, conversion between the euro and another currency shall be made using the monthly accounting rate of the euro. That accounting exchange rate shall be established by the Commission’s accounting officer by means of any source of information he regards as reliable, on the basis of the exchange rate on the penultimate working day of the month preceding that for which the rate is established.  
Article 8 
Rate to be used for conversion between the euro 
and other currencies 
(Article 16 of the Financial Regulation) Article 8 
Rate to be used for conversion between the euro 
and other currencies 
(Article 16 of the Financial Regulation)  
1. Without prejudice to specific provisions 1. Without prejudice to specific provisions Update of the wordi ng in line with the 2006 
EN  Error! Unknown document property name.  EN deriving from the application of sector-specific 
regulations, or from specific procurement 
contracts, grant agre ements and financing 
agreements, the rate to be used for conversion between the euro and other currencies shall, in cases where the conversion is carried out by the responsible authorising offi cer, be that of the day 
on which the payment order or recovery order is drawn up by the authorising department. deriving from the applica tion of sector-specific 
regulations, or from specific procurement contracts, grant agreements or grant decisions
 
and financing agreements, the rate to be used for conversion between the eu ro and other currencies 
shall, in cases where the conversion is carried out by the responsible authoris ing officer, be that of 
the day on which the payment order or recovery order is drawn up by the authorising department. FR revision which foresees that grants may 
be covered either by a written agreement or by a Commission decision (Article 108(1)FR). 
2. In case of euro impr est accounts, the rate 
to be used for the conversion between the euro and other currencies sha ll be determined by the 
date of the payment by the bank. 2. In case of euro impr est accounts, the rate 
to be used for the conversion between the euro and other currencies shall be determined by the date of the payment by the bank.  
3. For the regularisation of imprest accounts 
in national currencies, as referred to in Article 16 of the Financial Regulation, the rate to be used for the conversion between the euro and other currencies shall be that of the month of the expenditure from the impr est account concerned. 3. For the regularisation of imprest accounts 
in national currencies, as referred to in Article 16 of the Financial Regulation, the rate to be used for the conversion between the euro and other currencies shall be that  of the month of the 
expenditure from the impr est account concerned.  
4. For the reimbursement of flat-rate 
expenditure, or expenditure arising from the Staff Regulations of Officials of the European Communities and the Conditions of Employment of Other Servants of the European Communities (hereinafter: “Staff Regulati ons”) which is fixed at 
a ceiling, and which is paid in a currency other than the euro, the rate to be used shall be that which is in force when the entitlement arises. 4. For the reimbursement of flat-rate 
expenditure, or expenditur e arising from the Staff 
Regulations of Officials of the European Communities and the Conditions of Employment of Other Servants of the European Communities (hereinafter: “Staff Regulati ons”) which is fixed at 
a ceiling, and which is paid in a currency other than the euro, the rate to be used shall be that which is in force when the entitlement arises.  
EN  Error! Unknown document property name.  EN Article 9 
Information on cash transfers by the Commission 
between different currencies 
(Article 16 of the Financial Regulation) Article 9  
Information on cash tra nsfers by the Commission 
between different currencies  
(Article 16 of the Financial Regulation)   
Each quarter the Commission shall send the 
Member States a statement of transfers carried out between different currencies. Each quarter the Commission shall s
end the 
Member States a statement of transfers carried out 
between different currencies.  Deletion of this article which is no longer 
justified since the introduction of the Euro. 
CHAPTER  4 
(CHAPTER 5 OF THE FINANCIAL 
REGULATION ) 
PRINCIPLE OF UNIVERSALITY  CHAPTER  4 
(CHAPTER 5 OF THE FINANCIAL 
REGULATION ) 
PRINCIPLE OF UNIVERSALITY   
Article 10 
Structure to accommodate assigned revenue and 
provision of corresponding appropriations 
(Article 18 of the Financial Regulation) Article 10 
Structure to accommodate assigned revenue and 
provision of corresponding appropriations 
(Article 18 of the Financial Regulation)  
1. Without prejudice to Articles 12 and 13, 
the structure to accommodate assigned revenue in the budget shall comprise: 1. Without prejudice to  Articles 12 and 13, 
the structure to accommodate assigned revenue in the budget shall comprise:  
(a) in the statement of revenue of each 
institution's section, a b udget line to receive the 
revenue; (a) in the statement of revenue of each 
institution's section, a b udget line to receive the 
revenue;  
(b) in the statement of expenditure, the budget 
remarks, including general remarks, shall show (b) in the statement of expenditure, the budget 
remarks, including general remarks, shall show  
EN  Error! Unknown document property name.  EN which lines may receive the appropriations 
corresponding to the assi gned revenue which are 
made available. which lines may receive the appropriations 
corresponding to the assi gned revenue which are 
made available. 
In the case referred to in point (a) of the first subparagraph, a token entry (p.m.) shall be made and the estimated revenue shall be shown for information in the remarks. In the case referred to in point (a) of the first 
subparagraph, a token entry (p.m.) shall be made and the estimated revenue shall be shown for information in the remarks.  
2. The appropriations corresponding to 
assigned revenue may be made available, both as commitment appropriations and as payment appropriations, when the revenue has been received by the institu tion, save in the case 
provided for in Article 1 60(1a) and 161(2) of the 
Financial Regulation. They shall be made 
available automatically save in the case of repayments of payments on account, referred to in 
Article 156 of the Financial Regulation, and in the case of financial correcti ons in connection with 
the Structural Funds. 2. The appropriations corresponding to 
assigned revenue shall
 may  be made available 
automatically , both as commitment 
appropriations and as pa yment appropriations, 
when the revenue has been received by the institution. 
 save in the case s provided for  in 
Article 160(1a) and 161(2) of the Financial 
Regulatio n. 
However in the case provided for in Article 
18(2) paragraph (b) of the Financial Regulation  
commitment appropriations may be made 
available upon signature by the Member State 
of a contribution agreement expressed in Euro.  
The first subparagraph sh all not apply to cases 
provided for in Article 160(1a) and 161(2) of 
the Financial Regulation.  
They shall be made available automatically. save 
in the case of repayments of paym ents on account, 
referred to in Article 156 of the Financial 
Regulation, and in the case of financial Clarification of current practice which 
identifies the concerned appropriations in the accounting system. 
All assigned revenue  has to generate 
appropriations automatically. 
  Commitment appropriations may be made 
available upon registration of a forecast of revenue for contributions given by Member States where no exchange risk is borne by the General Budget. 
 
 The exception provided for repayments of payment on account has to be suppressed as payments on account do not reduce the contribution of the fund to the operation concerned (present Article 228 IR).   
EN  Error! Unknown document property name.  EN corrections in connection with the Structural 
Funds.   
Article 11 
Contributions from Member  States to research 
programmes 
(Article 18(1)(a) of the Financial Regulation) Article 11 
Contributions from Member  States to research 
programmes 
(Article 18(1)(a) of the Financial Regulation)  
1. The Member States' contributions to the 
financing of certain supplementary research programmes, provided for in Article 5 of Regulation (EC, Euratom) No 1150/2000, shall be paid as follows: 1. The Member States' contributions to the 
financing of certain supplementary research programmes, provided for in Article 5 of Regulation (EC, Euratom)  No 1150/2000, shall be 
paid as follows:  
(a) seven twelfths of the sum entered in the 
budget shall be paid by no la ter than 31 January of 
the current financial year; (a) seven twelfths of the sum entered in the 
budget shall be paid by no later than 31 January of 
the current financial year;  
(b) the remaining five twelfths shall be paid 
by no later than 15 July of the current financial year. (b) the remaining five twelfths shall be paid 
by no later than 15 July of the current financial year.  
2. Where the budget has not been finally 
adopted before the start of a financial year, the contributions provided for in paragraph 1 shall be 
based on the sum entered in the budget for the 
previous financial year. 2. Where the budget has not been finally 
adopted before the start of a financial year, the 
contributions provided for in paragraph 1 shall be 
based on the sum entered in the budget for the 
previous financial year.  
3. Any contribution or additional payment 
owed by the Member States to the budget shall be entered in the Commission's account or accounts 3. Any contribution or additional payment 
owed by the Member States to the budget shall be entered in the Commission's account or accounts  
EN  Error! Unknown document property name.  EN within thirty calenda r days of the call for funds . within thirty calendar da ys of the call for funds. 
4. Payments made shall be entered in the 
account provided for in Regulation (EC, Euratom) No 1150/2000 and shall be subject to the conditions laid down by that Regulation. 4. Payments made shall be entered in the 
account provided for in Regulation (EC, Euratom) No 1150/2000 and shall be subject to the conditions laid down by that Regulation.  
Article 12 
Assigned revenue resulti ng from the participation 
of EFTA States in certain Community 
programmes 
(Article 18(1)(d) of the Financial Regulation) Article 12 
Assigned revenue resulti ng from the participation 
of EFTA States in certain Community  Union  
programmes 
(Article 18(1)(d) of the Financial Regulation)  
1. The budget structure to accommodate the 
participation of the EFTA States in certain Community programmes shall be as follows: 1. The budget structure to accommodate the 
participation of the EFTA States in certain Community
 Union  programmes shall be as 
follows:  
(a) in the statement of revenue, a line with a token 
entry (p.m.) shall be en tered to accommodate the 
full amount of the EFTA States' contribution for the financial year in question. The estimated amount shall be shown in the budget remarks; (a) in the statement of revenue, a line with a token 
entry (p.m.) shall be en tered to accommodate the 
full amount of the EFTA States' contribution for the financial year in question. The estimated amount shall be shown in the budget remarks;  
(b) in the statement of expenditure: (b ) in the statement of expenditure:  
(i) the remarks for each line relating to the 
Community activities in which the EFTA States participate shall show «for information» the estimated amount of the participation; (i) the remarks for each line relating to the 
Community
 Union  activities in which the EFTA 
States participate shall s how «for information» the 
estimated amount of the participation;  
EN  Error! Unknown document property name.  EN (ii) an annex, forming an integral part of the 
budget, shall set out all the lines c overing the 
Community activities in which the EFTA States participate. (ii) an annex, forming an integral part of the 
budget, shall set out all the lines covering the Community
 Union  activities in which the EFTA 
States participate.  
The annex referred to in point (b)(ii) of the first 
subparagraph reflects and is  part of the structure 
to accommodate the appr opriations corresponding 
to such participation, as provided for in paragraph 
2, and to allow the expenditure to be 
implemented. The annex referred to in point (b)(ii) of the first 
subparagraph reflects and is  part of the structure 
to accommodate the appropriations corresponding to such participation, as provided for in paragraph 
2, and to allow the expenditure to be 
implemented.  
2. Under Article 82 of the Agreement on the 
European Economic Area (EEA), the amounts of the annual participation of  the EFTA States, as 
confirmed to the Comm ission by the EEA Joint 
Committee in accordance with Article 1(5) of Protocol 32 annexed to that Agreement, shall give rise to the provision, at th e start of the financial 
year, of the full amounts of the corresponding appropriations for commitments and appropriations for payments. 2. Under Article 82 of the Agreement on the 
European Economic Area (EEA), the amounts of the annual participation of  the EFTA States, as 
confirmed to the Commission by the EEA Joint Committee in accordance with Article 1(5) of Protocol 32 annexed to that Agreement, shall give rise to the provision, at th e start of the financial 
year, of the full amounts of the corresponding appropriations for commitments and appropriations for payments.  
3. If, in the course of the financial year, 
additional appropriation s are provided on the 
budget lines with EFTA State participation without the EFTA States being able, during that 
year, to adjust their contributions accordingly in order to comply with th e «proportionality factor» 
provided for in Article 82 of the Agreement on the European Economic Area, the Commission may, 3. If, in the course of the financial year, 
additional appropriation s are provided on the 
budget lines with EFTA State participation without the EFTA States being able, during that 
year, to adjust their contributions accordingly in order to comply with the «proportionality factor» provided for in Article 82 of the Agreement on the European Economic Area, the Commission may,  
EN  Error! Unknown document property name.  EN as a provisional and exceptional measure, use its 
cash resources to pre-finance the share of the EFTA States. Whenever such additional appropriations are prov ided, the Commission 
shall, as soon as possible, call in the corresponding contributions from the EFTA States. The Commission shall inform the budgetary authority each  year of any such 
decisions taken. as a provisional and exceptional measure, use its 
cash resources to pre-finance the share of the EFTA States. Whenever such additional appropriations are prov ided, the Commission 
shall, as soon as po ssible, call in the 
corresponding contributions from the EFTA States. The Commission shall inform the budgetary authority each year of any such decisions taken. 
The pre-financing shall be regularised as soon as possible in the budget for the following financial year. The pre-financing shall be  regularised as soon as 
possible in the budget for the following financial year.  
4. In accordance with Article 18(1)(d) of the 
Financial Regulation, the financial contributions 
of the EFTA States shall constitute assigned revenue. The accounting officer shall adopt appropriate measures to ensure that use of the revenue arising from those contributions and of the corresponding appropriations is monitored separately. 4. In accordance with Article 18(1)(d) of the 
Financial Regulation, the financial contributions 
of the EFTA States sh all constitute assigned 
revenue. The accounting officer shall adopt appropriate measures to ensure that use of the revenue arising from those contributions and of the corresponding appropriations is monitored separately.  
In the report provided for in Article 131(2) of the 
Financial Regulation, the Commission shall show separately the stage of implementation, in both 
revenue and expenditure, corresponding to EFTA State participation. In the report provided for in Article 131( 2) of the 
Financial Regulation, the Commission shall show separately the stage of implementation, in both 
revenue and expenditure, corresponding to EFTA State participation.  
EN  Error! Unknown document property name.  EN Article 13 
Proceeds of sanctions imposed on Member States 
declared to have an excessive deficit 
(Article 18(1)(b) of the Financial Regulation) Article 13 
Proceeds of sanctions imposed on Member States 
declared to have an excessive deficit 
(Article 18(1)(b) of the Financial Regulation)  
The budget structure to accommodate the 
proceeds of the sanctions referred to in Section 4 
of Council Regulation (EC) No 1467/975 shall be 
as follows: The budget structure to accommodate the 
proceeds of the sanctions referred to in Section 4 of Council Regulation (EC) No 1467/97
6 shall be 
as follows:  
(a) in the statement of revenue, a line carrying 
a token entry (p.m.) shall be entered to accommodate the interest on such amounts; (a) in the statement of revenue, a line carrying 
a token entry (p.m.) shall be entered to accommodate the interest on such amounts;  
(b) at the same time, and without prejudice to 
Article 74 of the Financ ial Regulation, entry of 
those amounts in the statement of revenue shall give rise to the provisi on, in the statement of 
expenditure, of commitment appropriations and payment appropriations. These appropriations shall be implemented in accordance with Article 17 of the Financial Regulation. (b) at the same time, and without prejudice to 
Article 74 of the Financ ial Regulation, entry of 
those amounts in the statement of revenue shall give rise to the provis ion, in the statement of 
expenditure, of commitment appropriations and payment appropriations. These appropriations shall be implemented in accordance with Article 17 of the Financial Regulation.  
                                                 
5 OJ L 209, 2.8.1997, p. 6. 
6 OJ L 209, 2.8.1997, p. 6. 
EN  Error! Unknown document property name.  EN Article 13a 
Charges entailed by acceptance of donations to 
the Communities 
(Article 19(2) of the Financial Regulation) Article 13a 
Charges entailed by acceptance of donations to 
the Communities 
(Article 19(2) of the Financial Regulation)  
For the purposes of the authorisation of the 
European Parliament and of the Council referred to in Article 19(2) of the Financial Regulation, the Commission shall estimate  and duly explain the 
financial charges, including follow-up costs, entailed by the acceptan ce of donations made to 
the Communities. For the purposes of th e authorisation of the 
European Parliament and of the Council referred to in Article 19(2) of the Financial Regulation, the Commission shall estimate and duly explain the financial charges, incl uding follow-up costs, 
entailed by the acceptan ce of donations made to 
the Communities.  
Article 14 
Passing for payment of the net amount 
(Article 20(1) of the Financial Regulation) Article 14 
Passing for payment of the net amount 
(Article 20(1) of the Financial Regulation)  
Pursuant to Article 20( 1) of the Financial 
Regulation, the following deductions may be made from payment requests, invoices or statements, which shall then be passed for payment of the net amount: Pursuant to Article 20( 1) of the Financial 
Regulation, the following deductions may be made from payment re quests, invoices or 
statements,  which shall then be passed for 
payment of the net amount: Precision: the deducti on is not made on 
invoices. It is made on payment requests 
(a) penalties imposed on parties to procurement contracts or beneficiaries of a grant; (a) penalties imposed on parties to 
procurement contracts or beneficiaries of a grant;  
(b) discounts, refunds and rebates on 
individual invoices and payment requests; (b) discounts, refunds and rebates on 
individual invoices and cost statements  payment 
requests ;  
(c) interest generated by pre-financing 
payments, as referred to in the first subparagraph (c) interest genera ted by pre-financing 
payments;,  as referred to in the first subparagraph Article 5a(1) FR is deleted (the right 
reference should be Artic le 5(4) FR but it is 
EN  Error! Unknown document property name.  EN of Article 5a(1) of the Financ ial Regulation. of Article 5a(1 ) of the Financial Regulation . not necessary to make it).  
 (d) adjustments for amounts unduly paid.  
 Adjustments referred to in point (d) of the first 
paragraph may be made, by means of direct 
deduction, against a new payment of the same 
type to the same payee under the chapter, 
article and financial year in respect of which 
the excess payment was made, and which give 
rise to interim paymen ts or payments of 
balances.  
 This provision existed in the 2002 IR and 
was deleted by mistake at the occasion of the 2006 revision. These provisions are necessary to take in to account the common 
practise. The accounting system shall keep the appropriate information, for the significant cases (new paragraph (e)) 
 To the items referred to in points (c) and (d) of 
the first paragraph the Union accounting rules  
shall apply.   
Article 15 
Accounts for recoverable taxes 
(Article 20(2) of the Financial Regulation) Article 15 
Accounts for recoverable taxes 
(Article 20(2) of the Financial Regulation)  
Any taxes borne by the Communities under 
Article 20(2) of the Fina ncial Regulation shall be 
entered in a suspense account until they are refunded by the States concerned. Any taxes borne by the Communities under 
Article 20(2) of the Financial Regulation shall be entered in a suspense account until they are refunded by the States concerned.  
EN  Error! Unknown document property name.  EN CHAPTER  5 
(CHAPTER 6 OF THE FINANCIAL 
REGULATION ) 
PRINCIPLE OF SPECIFICATION  CHAPTER  5 
(CHAPTER 6 OF THE FINANCIAL 
REGULATION ) 
PRINCIPLE OF SPECIFICATION   
Article 17 
Rules concerning the calculation of percentages 
of transfers of the inst itutions other than the 
Commission 
(Article 22 of the Financial Regulation) Article 17 
Rules concerning the calculation of percentages 
of transfers of the inst itutions other than the 
Commission 
(Article 22 of the Financial Regulation)  
1. The percentages referred to in Article 22 
of the Financial Regulati on shall be calculated at 
the time the request for transfer is made and with reference to the appropriations provided in the budget, including amending budgets. 1. The percentages referred to in Article 22 
of the Financial Regulati on shall be calculated at 
the time the request for transfer is made and with reference to the appropriations provided in the budget, including amending budgets.  
2. The amount to be taken into consideration 
shall be the sum of the transfers to be made on the line from which transfers are being made, after adjustment for earlier transfers made. 2. The amount to be taken into consideration 
shall be the sum of the transfers to be made on the line from which transfers are being made, after adjustment for earlier transfers made.  
The amount corresponding to the transfers which 
can be carried out autonomously by the institution concerned without a decision of the budgetary authority shall not be ta ken into consideration. The amount corresponding to the transfers which 
can be carried out autonomously by the institution concerned without a d ecision of the budgetary 
authority shall not be ta ken into consideration.  
EN  Error! Unknown document property name.  EN Article 17a 
Rules concerning the calculation of percentages 
of transfers of the Commission  
(Article 23 of the Financial Regulation) Article 17a 
Rules concerning the calculation of percentages 
of transfers of the Commission  
(Article 23 of the Financial Regulation)  
1. The percentages referred to in 
Article 23(1) of the Fina ncial Regulation shall be 
calculated at the time the request for transfer is made and with reference to the appropriations provided in the budget, including amending budgets. 1. The percentages referred to in 
Article 23(1) of the Fina ncial Regulation shall be 
calculated at the time the request for transfer is made and with reference to the appropriations provided in the budget, including amending budgets.  
2. The amount to be taken into consideration 
shall be the sum of the transfers to be made on the line from which or to which transfers are being made, after adjustment for earlier transfers made.  2. The amount to be taken into consideration 
shall be the sum of the transfers to be made on the line from which or to which transfers are being made, after adjustment for earlier transfers made.   
The amount corresponding to the transfers which 
can be carried out autonomously by the Commission without a d ecision of the budgetary 
authority shall not be ta ken into consideration. The amount corresponding to the transfers which 
can be carried out autonomously by the Commission without a d ecision of the budgetary 
authority shall not be ta ken into consideration.  
Article 18 
Administrative expenditure 
(Article 23 of the Financial Regulation) Article 18 
Administrative expenditure 
(Article 23 of the Financial Regulation)  
The expenditure referred to in point (b) of the first 
subparagraph of Article 23(1) of the Financial 
Regulation shall cover, for each policy area, the items referred to in Article 27. The expenditure referred to in point ( c
b) of the 
first subparagraph of Article 23(1) of the Financial Regulation sha ll cover, for each policy 
area, the items referred to in Article 27.  
EN  Error! Unknown document property name.  EN Article 19 
Grounds for requests for transfers of 
appropriations 
(Articles 22 and 23 of the Financial Regulation) Article 19 
Grounds for requests for transfers of 
appropriations 
(Articles 22 and 23 of the Financial Regulation)  
Proposals for transfers and all information for the 
budgetary authority con cerning transfers made 
under Articles 22 and 23 of the Financial Regulation shall be accompanied by appropriate and detailed supporting documents showing the implementation of appropria tions and estimates of 
requirements up to the end of the financial year, both for the lines to whic h the appropriations are 
to be transferred and for those from which they are to be taken. Proposals for transfers and all information for the 
budgetary authority concer ning transfers made 
under Articles 22 and 23 of the Financial Regulation shall be accompanied by appropriate and detailed supporting documents showing the implementation of appropriations and estimates of requirements up to the end of the financial year, both for the lines to which the appropriations are to be transferred and for those from which they are to be taken.  
Article 20 
Grounds for requests for transfers from the 
emergency aid reserve 
(Article 26 of the Financial Regulation) Article 20 
Grounds for requests for transfers from the 
emergency aid reserve 
(Article 26 of the Financial Regulation)  
Proposals for transfers to allow the utilisation of 
the emergency aid reserve, referred to in Article 26 of the Financial Regulation, shall be accompanied by appropriate and detailed supporting documents showing: Proposals for transfers to allow the utilisation of 
the emergency aid reserve, referred to in Article 26 of the Financial Regulation, shall be accompanied by appropr iate and detailed 
supporting documents showing:  
(a) for the line to which the transfer is to be 
made, the most recent information available for the implementation of appropriations and the 
estimate of requirements up to the end of the (a) for the line to which the transfer is to be 
made, the most recent information available for the implementation of appropriations and the 
estimate of requirements up to the end of the  
EN  Error! Unknown document property name.  EN financial year; financial year; 
(b) for all lines relating to external action, the 
implementation of appropriations up to the end of the month preceding the request for transfer and an estimate of requirements up to the end of the financial year, including a comparison with the initial estimate; (b) for all lines relating to external action, the 
implementation of appropriations up to the end of the month preceding the request for transfer and an estimate of requirements up to the end of the financial year, including a comparison with the initial estimate;  
(c) an analysis of the possibilities of 
reallocating appropriations. (c) an analysis of the possibilities of 
reallocating appropriations.  
CHAPTER  6 
(CHAPTER 7 OF THE FINANCIAL 
REGULATION ) 
PRINCIPLE OF SOUND FINANCIAL 
MANAGEMENT  CHAPTER  6 
(CHAPTER 7 OF THE FINANCIAL 
REGULATION ) 
PRINCIPLE OF SOUND FINANCIAL 
MANAGEMENT   
Article 21 
Evaluation 
(Article 27 of the Financial Regulation) Article 21 
Evaluation 
(Article 27 of the Financial Regulation)  
1. All proposals for programmes or activities 
occasioning budget expenditure shall be the subject of an ex ante  evaluation, which shall 
address: 1. All proposals for programmes or activities 
occasioning budget expenditure shall be the subject of an ex ante  evaluation, which shall 
address:  
(a) the need to be met in the short or long 
term; (a) the need to be met in the short or long 
term;  
EN  Error! Unknown document property name.  EN (b) the added value of Community 
involvement; (b) the added value of Community  Union  
involvement;  
(c) the objectives to be achieved; (c) the objectives to be achieved;  
(d) the policy options available, including he 
risks associated with them; (d) the policy options available, including he 
risks associated with them;  
(e) the results and impacts expected, in 
particular economic, social and environmental impacts, and the indicators and evaluation arrangement needed to measure them; (e) the results and impacts expected, in 
particular economic, social and environmental impacts, and the indicators and evaluation arrangement needed to measure them;  
(f) the most appropriate method of 
implementation for the preferred option(s);  (f) the most appropriate method of 
implementation for the preferred option(s);   
(g) the internal coherence of the proposed 
programme or activity and its relations with other 
relevant instruments; (g) the internal coherence of the proposed 
programme or activity and its relations with other relevant instruments;  
(h) the volume of appropriations, human 
resources and other admini strative expenditure to 
be allocated with due regard for the cost-effectiveness principle; (h) the volume of appropriations, human 
resources and other admini strative expenditure to 
be allocated with due regard for the cost-effectiveness principle;  
(i) the lessons learned from similar 
experiences in the past. (i) the lessons learned from similar 
experiences in the past.  
2. The proposal shall set out the 
arrangements for monitoring, reporting and evaluation, taking due account  of the respective 
responsibilities of all le vels of government that 2. The proposal shall set out the 
arrangements for monitoring, reporting and evaluation, taking due account  of the respective 
responsibilities of all leve ls of government that  
EN  Error! Unknown document property name.  EN will be involved in the implementation of the 
proposed programme or activity. will be involved in the implementation of the 
proposed programme or activity. 
3. All programmes or activities, including 
pilot projects and preparatory actions, where the resources mobilised exceed EUR 5 000 000 shall be the subject of an interim and/or ex post evaluation in terms of the human and financial resources allocated and the results obtained in order to verify that they were consistent with the objectives set, as follows: 3. All programmes or activities, including 
pilot projects and preparatory actions, where the resources mobilised exceed EUR 5 000 000 shall be the subject of an interim and/or ex post evaluation in terms of the human and financial resources allocated and the results obtained in order to verify that they were consistent with the objectives set, as follows:  
(a) the results obtaine d in carrying out a 
multiannual programme shall be periodically evaluated in accordance with a timetable which 
enables the findings of that evaluation to be taken into account for any decision on the renewal, modification or suspension of the programme; (a) the results obtaine d in carrying out a 
multiannual programme shall be periodically evaluated in accordance with a timetable which enables the findings of that evaluation to be taken into account for any d ecision on the renewal, 
modification or suspension of the programme;  
(b) activities financed on an annual basis shall 
have their results evalua ted at least every six 
years. (b) activities financed on an annual basis shall 
have their results evaluated at least every six years.  
Points (a) and (b) of the first subparagraph shall 
not apply to each of the projects or actions conducted within those ac tivities, for which the 
requirement may be met by the final reports sent 
by the bodies which carried out the action. Points (a) and (b) of the first subparagraph shall 
not apply to each of th e projects or actions 
conducted within those ac tivities, for which the 
requirement may be met by the final reports sent by the bodies which carried out the action.  
4. The evaluations referred  to in paragraphs 1 
and 3 shall be proporti onate to the resources 
mobilised for and the impact of the programme 4. The evaluations referred  to in paragraphs 1 
and 3 shall be proportionate to the resources mobilised for and the impact of the programme  
EN  Error! Unknown document property name.  EN and activity concerned. and activity concerned. 
Article 22 
Financial statement 
(Article 28 of the Financial Regulation) Article 22 
Financial statement 
(Article 28 of the Financial Regulation)  
1. The financial statement shall contain the 
financial and economic data for the assessment by the legislative authority of the need for Community action. It sha ll provide appropriate 
information as regards coherence with other financial instruments and any possible synergy. 1. The financial statement shall contain the 
financial and economic data for the assessment by the legislative authority of the need for Community
 Union  action. It shall provide 
appropriate information as  regards coherence with 
other financial instruments and any possible synergy.  
In the case of multiannual operations, the financial 
statement shall contain the foreseeable schedule of annual requirements in terms of appropriations and posts and an evaluati on of their medium-term 
financial impact. In the case of multiannual operations, the financial 
statement shall contain the foreseeable schedule of annual requirements in terms of appropriations and posts , including for external staff, 
and an 
evaluation of their medium-term financial impact. Precision required conc erning the type of 
data required concerning  posts in financial 
statements. 
2. In order to prevent any risk of fraud or 
irregularity which might  adversely affect the 
protection of the Communities' financial interests, the financial statement shall provide information regarding existing and planned fraud prevention and protection measures. 2.
 In order to prevent any risk of fraud or 
irregularity which might  adversely affect the 
protection of the Communities' financial interests, 
the financial statement shall provide information 
regarding existing and planned fraud prevention 
and protection measures.  Redundant with Article 28(3)FR 
EN  Error! Unknown document property name.  EN Article 22a 
Effective and efficient internal control  
(Article 28a(1) of the Financial Regulation ) Article 22a 
Effective and efficient internal control  
(Article 28a(1) of the Financial Regulation )  
1. Effective internal control shall be based on 
best international practices and include in particular the following: 1. Effective internal cont rol shall be based on 
best international practices and include in particular the following:  
(a) segregation of tasks; (a) segregation of tasks;  
(b) an appropriate risk management and 
control strategy including c ontrols at beneficiary 
level; (b) an appropriate risk management and 
control strategy including controls at beneficiary 
level;  
(c) avoidance of conflicts of interests; (c ) avoidance of conflicts of interests;  
(d) adequate audit trails and data integrity in 
data systems; (d) adequate audit trails and data integrity in 
data systems;  
(e) procedures for monitoring of performance 
and for follow-up of identified internal control weaknesses and exceptions; (e) procedures for monitoring of performance 
and for follow-up of identified internal control weaknesses and exceptions;  
(f) periodic assessment of the sound 
functioning of the control system. (f) periodic assessment of the sound 
functioning of the internal  control system. Harmonisation of terminology 
2. Efficient internal control shall be based on 
the following elements: 2. Efficient internal control shall be based on 
the following elements:  
(a) the implementation of an appropriate risk 
management and control strategy coordinated (a) the implementation of an appropriate risk 
management and control strategy coordinated  
EN  Error! Unknown document property name.  EN among appropriate actors i nvolved in the control 
chain; among appropriate actors i nvolved in the control 
chain; 
(b) the accessibility of control results to all appropriate actors involved in the control chain; (b) the accessibility of control results to all 
appropriate actors involved in the control chain; 
  
 (c)  reliance where appropriate on 
management declarations  of implementation 
partners and independent audit opinions, 
provided that the quality of the underlying 
work is adequate and acceptable and that it has 
been performed in accordance with agreed 
standards.  This new provision aims at introducing, 
among the elements taken into account for an 
efficient internal control, the possibility to rely on third party assurance, where appropriate. 
(c) the timely application of corrective measures including, where appropriate, dissuasive penalties; (c)
(d) the timely application of corrective 
measures including, wher e appropriate, dissuasive 
penalties;   
(d) clear and unambiguous legislation 
underlying the policies; (d)(e) clear and unambiguous legislation 
underlying the policies;  
(e) the elimination of multiple controls; (e) (f) the elimination of multiple controls;  
(f) the principle of improving the cost-benefit 
ratio of controls. (f)(g) the principle of improving the cost-benefit 
ratio of controls , taking into account the 
tolerable risk of error ref erred to in Article 28b 
of the Financial Regulation . This provision is updated in line with the 
introduction of the concept of tolerable risk of error in the FR. 
EN  Error! Unknown document property name.  EN CHAPTER  7 
(CHAPTER 8 OF THE FINANCIAL 
REGULATION ) 
PRINCIPLE OF TRANSPARENCY  CHAPTER  7 
(CHAPTER 8 OF THE FINANCIAL 
REGULATION ) 
PRINCIPLE OF TRANSPARENCY   
Article 23 
Provisional publica tion of the budget 
(Article 29 of the Financial Regulation) Article 23 
Provisional publica tion of the budget 
(Article 29 of the Financial Regulation)  
As soon as possible and no later than four weeks 
after the final adoption of the budget, the final 
detailed budget figures shall be published in all languages on the Internet site of the institutions, on the Commission's initiative, pending official publication in the Official Journal of the 
European Union . As soon as possible and no later than four weeks 
after the final adoption of the budget, the final 
detailed budget figures shall be published in all languages on the Internet site of the institutions, on the Commission's initiative, pending official publication in the Official Journal of the 
European Union .  
EN  Error! Unknown document property name.  EN TITLE  III 
ESTABLISHMENT  AND  STRUCTURE  
OF THE  BUDGET TITLE  III 
ESTABLISHMENT  AND  
STRUCTURE  OF THE  BUDGET  
CHAPTER  1 
ESTABLISHMENT OF THE BUDGET  CHAPTER  1 
ESTABLISHMENT OF THE BUDGET   
Article 24 
General introduction to the preliminary draft 
budget 
(Article 33 of the Financial Regulation) Article 24  
General i ntroduction to the preliminary draft 
budget  
(Article 33 of the Financial Regulation)  It is proposed to delete this Article and 
transfer its substance in a simplified way to Article 33 FR.  
The Commission shall draw up the general 
introduction to the preliminary draft budget. The Commission shall draw up the general 
introduction to the preliminary draft budget.   
Each of the sections of the preliminary draft 
budget shall be preceded by an introduction drawn up by the institution concerned. Each of the sectio
ns of the preliminary draft 
budget shall be preceded by an introduction drawn 
up by the institution concerned.   
The general introduction shall comprise: The general introduction shall comprise:   
(a) financial tables covering the entire budget; (a)  financ ial tables covering the entire budget;   
(b) as regards the titles in the Commission 
section: (b) as regards the titles in the Commission 
section:   
(i) a description of the policies substantiating 
entitlement to the appropriations requested, with due account for the principles and requirements set out in Articles 27 and 33(2)(d) of the Financial Regulation; (i)
 a description of the policies substantiating 
entitlement to the appropr iations requested, with 
due account for the principles and requirements 
set out in Articles 27 and 33( 2)(d) of the Financial 
Regulation;   
EN  Error! Unknown document property name.  EN (ii) the grounds for cha nges in appropriations 
from one financial year to the next. (ii) the grounds for changes in appropriations 
from one financial year to the next.   
Article 25 
Working documents in s upport of the preliminary 
draft budget 
(Articles 30 and 33 of the Financial Regulation) Article 25 
Working documents in s upport of the preliminary 
draft budget 
(Articles 30 and 33 of the Financial Regulation) With the proposed deletion of points (1)(b) 
and (c) below, Article 25 IR only needs to refer to Article 33 FR.  
In support of the preliminary draft budget, the 
following working documents shall be provided: In support of the preliminary  draft budget, the 
following working documents shall be provided in 
respect of human resources  staff of the 
institutions :  
(a) in respect of staff of the institutions: (a)  in respect of staff of the institutions:  Modification in line with the Conditions of 
Employment of Other Servants of the European Communities (CEOS) applicable since 1.5.2004 concerning contractual agents. In line with current practice.
 
(i) a statement of the policy for permanent 
and temporary staff; (ai) a statement of the policy on posts and 
external personnel  for permanent and temporary 
staff; Precision required conc erning the type of 
data required concerning posts and external personnel in working documents presented in support of the draft budget. 
(ii) for each category of staff, an organisation chart of budgetary posts a nd persons in post at the 
beginning of the year in  which the preliminary 
draft budget is presented, indicating their distribution by grade and administrative unit; (b
ii) for each category of staff , the latest  
authorised establishment plan, as well as the 
number of posts actually filled  an organisation 
chart of budgetary posts  and persons in post at the 
beginning of the year in which the preliminary draft budget is presented, indicating their distribution by grade and administrative unit;  
EN  Error! Unknown document property name.  EN  (c) a list of posts broke n down by policy area;   Transferred from point iv) below. 
 (d) for each category of external staff, the 
initial estimated number of full-time 
equivalents on the basis of the authorised 
appropriations as well as the number of  
persons actually in place at the beginning of the 
year in which the draft budget is presented, 
indicating their distribut ion by function group 
and, as appropriate, by grade.  Modification in line with the Conditions of 
Employment of Othe r Servants of the 
European Communities (CEOS) applicable since 1.5.2004 concerning contractual agents. In line with current practice 
(iii) where a change in the number of persons in post is proposed, a statement of the reasons justifying such change; (iii)
 where a change in the number of persons 
in post is prop osed, a statement of the reasons 
justifying such change;   
(iv) a list of posts broke n down by policy area; (iv)  a list of posts broken down by policy area;  Now under point ii a) above 
(b) a detailed statement of borrowing and 
lending policy; (b) a detail ed statement of borrowing and 
lending policy;  Redundant: this provision is already covered 
by Article 30(1) FR. 
 
(c) in respect of s ubsidies to the bodies 
referred to in Article 32 of the Financial Regulation, an estimate of revenue and expenditure prefaced  by an explanatory 
memorandum drawn up by the bodies concerned and, for the European Schools, a statement showing revenue and expenditure prefaced by an explanatory memorandum. (c)
 in respect of subs idies to the bodies 
referred to in Article 32 of the Fi nancial 
Regulation, an estimate of revenue and 
expenditure prefaced by an explanatory 
memorandum drawn up by the bodies concerned 
and, for the European Schools, a statement 
showing revenue and expenditure prefaced by an 
explanatory memorandum.  Obsolete: this provision does not reflect the 
content of the working document concerning agencies and has been supplanted by the Framework FR applicable to agencies, according to which the 'estimate of revenue and expenditure prefaced by an explanatory memorandum drawn up by the bodies concerned' is directly transmitted by the agencies themselves. 
EN  Error! Unknown document property name.  EN Further information concerning agencies is 
foreseen under point (b) (i) below. 
 The Commission may provide the following 
working documents in support of the draft 
budget:  
(a) workin g documents on the planned  
implementation of approp riations for the year 
and outstanding commitments, on the bodies 
referred to in Articl e 185 of the Financial 
Regulation and the European Schools, on the 
pilot projects and preparatory actions;  
(b) activity statements or any other relevant 
document containing the following:  
(i) information on the achievement of the 
objectives referred to in Article 27 of the 
Financial Regulation for the various activities;  
(ii) full justification and cost-benefit approach 
for proposed change s in the level of 
appropriations;  
(iii) clear rationale for intervention at the level 
of the Union complying, inter alia, with the 
principle of subsidiarity;  
(iv) information on the implementation rates of 
the activity in the previous year;  The text shown under (b) is transferred and 
simplified from current Article 33(2) FR on working documents.  
Indeed, it is proposed no t to list exhaustively 
current working documents in support of the draft budget in order to not to pre-empt future evolution, in part icular the possibility 
of new working documents. 
Provisions from Article  33(2) which are not 
taken up in the present provision: 
- point (a) concerning the analysis of 
financial management, which overlaps with the report on budgetary and financial management foreseen in Article 128 FR, and is, in practice, not done as such in the DB 
- point (c): first part concerning working 
documents relating to establishment plans of the institutions is alr eady under Article 25 (a) 
(ii) IR; second part on agencies and European Schools remain under 25 (b) (i). 
EN  Error! Unknown document property name.  EN (v) integration of evaluation results.  
 
 The Commission may also submit an opinion 
on the estimates of the other institutions. 
Where that opinion covers different estimates  
it shall include explanation.   
 Article 25a  
(Article 33 of the Fi nancial Regulation)   
 The financial programming referred to in 
Article 33 of the Financia l Regulation shall be 
structured by category of expenditure, policy 
area and budget line. The complete financial 
programming shall cover all categories of 
expenditure with the exception of agriculture, 
cohesion policy and administration for which 
only summary data shall be provided.  Reference to financial programming, which 
was until now only foreseen in the IIA on 
budgetary discipline and sound financial management (Point 46 IIA), is introduced in the FR and completed by the present provision.  
 Article 25b  
Publication of information on value and 
recipients of Union funds awarded under direct 
management  
(Article 30 of the Fi nancial Regulation)   
 The information on the value and the 
recipients of Union funds awarded under direct 
management shall be pub lished on an internet 
site of the Union instit ution by the 30 June of 
the year following the financial year in which New Article providing complementary 
information on the implementation of Article 30 FR relating to transparency as regards funds managed under direct management. This provision takes stock of the FTS 
EN  Error! Unknown document property name.  EN the funds have been awarded.  
The information may also be published, 
according to a standard presentation, by any 
other appropriate means, including the Official 
Journal of the European Union.  (Financial transparency  system) put in place 
in 2009. 
EN  Error! Unknown document property name.  EN  Article 25c  
Link to the publication of information on 
recipients of Union funds awarded under 
indirect management  
(Articles 30 of the Financial Regulation)   
 Where the management of Union funds is 
delegated to the authorities and bodies referred 
to in paragraph 1 point (2) of Article 53 of the 
Financial Regulation the information referred 
to in Article 25b shall be published by those 
entrusted authorities and bodies on their 
website. The agreements entrusting budget 
implementation tasks shall require such 
obligation.  
The internet site of the Union institution shall 
contain at least the address of the website 
where this information can be found except 
where it is published direc tly in the dedicated 
place on the internet site of the Union 
institution.  
The information may also be published by any 
other appropriate means, including the Official 
Journal of the European Union.  New Article providing complementary 
information on the implementation of Article 30 FR relating to transparency as regards funds managed under indirect management.   
Article 26 
Preliminary draft amending budgets Article 26 
Preliminary draft amending budgets  
EN  Error! Unknown document property name.  EN (Article 37(1) of the Financial Regulation) (Article 37(1) of the Financial Regulation) 
Preliminary draft amending budgets shall be 
accompanied by statements of grounds and the information on the implementation of the budget for the preceding and current financial years available at the time of their establishment. Preliminary draft amending budgets shall be 
accompanied by statements of grounds and the information on the implementation of the budget for the preceding and current financial years available at the time of their establishment. Modifications linked to the entry into force 
of the Lisbon Treaty are introduced in a separate adhoc revision (COM(2010)71): 'preliminary draft amending budget' replaced by 'draft amending budget' 
CHAPTER  2 
STRUCTURE AND PRESENTATION OF THE 
BUDGET  CHAPTER  2 
STRUCTURE AND PRESENTATION OF THE 
BUDGET   
Article 27 
Administrative appropriations 
(Article 41 of the Financial Regulation) Article 27 
Administrative appropriations 
(Article 41 of the Financial Regulation)  
Where the statement of expenditure of a section of 
the budget is presented in a nomenclature based on a classification by purpose, administrative appropriations shall be divided into separate 
headings by title accord ing to the following 
classification: Administrative expenditure  shall be classified 
as follows: Where the statement of expenditure of 
a section of the budget is presented in a 
nomenclature based on a classification by 
purpose, administrative appropriatio ns shall be 
divided into separate headings by title according 
to the following classification:  Update of the presenta tion of administrative 
expenditure in the budge t in the context of 
ABB. 
(a) expenditure on staff authorised in the establishment plan: there shall be an amount of 
appropriations and a numb er of employment posts 
corresponding to th is expenditure; (a) expenditure on staff authorised in the 
establishment plan: there shall be an amount of 
appropriations and a number of establishment 
plan  employm ent posts corresponding to this 
expenditure; New wording in line with the information 
required concerning posts in working documents presented in support of the draft budget. Cf. Article 25 (a) IR above.  
(b) expenditure on extern al staff (including 
auxiliary staff and agen cy staff) and other (b) expenditure on external personnel  staff 
(including auxiliary staff and agency staff) and Update of the presentation of administrative 
EN  Error! Unknown document property name.  EN management expenditure (including 
representation expenses and meeting expenses); other management  expenditure referred to in  
Article 23(1)(b) of the Financial Regulation and 
financed under the 'admin istration' heading of 
the multiannual financial framework (including 
representation expenses and meeting expenses) ; expenditure in the budget. 
(c) expenditure on buildi ngs and other related 
expenditure, including cleaning and maintenance, rental and hiring, teleco mmunications, water, gas 
and electricity; (c) expenditure on buildings and other related 
expenditure, including cl eaning and maintenance, 
rental and hiring, teleco mmunications, water, gas 
and electricity;  
d) support expenditure. d) external personnel and technical 
assistance directly linked to the 
implementation of programmes  support 
expenditure . Update of the wording and clarification of 
the content of 's upport expenditure'. 
The Commission's administrative expenditure of a 
type common to all titles shall also be set out in a separate summary statement classified by type. The Commission's 
administrative expenditure of 
the Commission   of a type which is  common to 
several  all titles shall also be set out in a separate 
summary statement classified by type. Because not all titles have "decentralised 
administrative expenditure" ("global envelope"), 'several' would therefore be more appropriate than 'all' in this provision. 
Article 28 
Actual expenditure in th e last financial year for 
which the accounts have been closed 
(Article 46(1)(e) of the Financial Regulation) Article 28 
Actual expenditure in th e last financial year for 
which the accounts have been closed 
(Article 46(1)(e) of the Financial Regulation)  
For the purposes of estab lishing the budget, actual 
expenditure in the last financial year for which the accounts have been closed shall be determined as follows: For the purposes of establishing the budget, actual 
expenditure in the last financial year for which the accounts have been closed shall be determined as 
follows:  
(a) in commitments: commitments entered in 
the accounts during the financial year against (a) in commitments: co mmitments entered in 
the accounts during the financial year against  
EN  Error! Unknown document property name.  EN appropriations for that financial year as defined in 
Article 5; appropriations for that fina ncial year as defined in 
Article 5; 
(b) in payments: payments made during the financial year, that is to say, for which a payment order has been sent to the bank, against appropriations for that financial year as defined in the same article. (b) in payments: payments made during the 
financial year, that is to say, for which a payment order has been sent to the bank, against appropriations for that fina ncial year as defined in 
the same article.  
Article 29 
Budget remarks 
(Article 46(1)(g) of the Financial Regulation) Article 29 
Budget remarks 
(Article 46(1)(g) of the Financial Regulation)  
The budget remarks shall include: The budget remarks shall include:  
(a) the references of the basic act, where one 
exists; (a) the references of the basic act, where one 
exists;  
(b) all appropriate explanations concerning the 
nature and purpose of the appropriations. (b) all appropriate explanations concerning the 
nature and purpose of the appropriations.  
Article 30 
Establishment plan 
(Article 46(1)(3)(a) of the Financial Regulation) Article 30 
Establishment plan 
(Article 46(1)(3)(a) of the Financial Regulation)  
The staff of the Supply Agency shall appear 
separately in the Commission establishment plan. The staff of the Supply Agency shall appear 
separately in the Commission establishment plan.  
EN  Error! Unknown document property name.  EN TITLE  IV 
IMPLEMENTATION  OF THE  
BUDGET TITLE  IV 
IMPLEMENTATION  OF THE  
BUDGET  
CHAPTER  1 
GENERAL PROVISIONS  CHAPTER  1 
GENERAL PROVISIONS   
Article 32 
Maximum amounts for pilot schemes and 
preparatory actions 
(Article 49(6)(a) and (b) of the Financial 
Regulation) Article 32 
Maximum amounts for pilot schemes and 
preparatory actions 
(Article 49(6)(a) and (b) of the Financial 
Regulation)  
1. The total amount of appropriations for the 
pilot schemes referred to in Article 49(6)(a) of the Financial Regulation may not exceed EUR 40 million in any budget year. 1. The total amount of appropriations for the 
pilot schemes referred to in Article 49(6)(a) of the Financial Regulation may not exceed EUR 40 million in any budget year.  
2. The total amount of appropriations for new 
preparatory actions referred to in Article 49(6)(b) of the Financial Regulation may not exceed EUR 50 million in any budget year, and the total amount of appropriations actually committed for preparatory actions may not exceed EUR 100 million. 2. The total amount of appropriations for new 
preparatory actions referred to in Article 49(6)(b) of the Financial Regulation may not exceed EUR 50 million in any budget year, and the total amount of appropriations actually committed for preparatory actions may not exceed EUR 100 million.  
EN  Error! Unknown document property name.  EN Article 32a 
Preparatory measures in the field of the Common 
Foreign and Security Policy 
(Article 49(6)(c)of the Financial Regulation) Article 32a 
Preparatory measures in the field of the Common 
Foreign and Security Policy 
(Article 49(6)(c)of the Financial Regulation)  
The financing of measures  agreed by the Council 
for the preparation of EU crisis management operations under Title V of the Treaty on European Union shall cover incremental costs directly arising from a specific field deployment of a mission or team involving inter alia  
personnel from the EU institutions, including high risk insurance, travel and accommodation costs and per diem payments. The financing of measures  agreed by the Council 
for the preparation of EU crisis management operations under Title V of the Treaty on 
European Union shall cover incremental costs directly arising from a specific field deployment of a mission or team involving inter alia  
personnel from the EU institutions, including high risk insurance, travel and accommodation costs and per diem payments.  
Article 33 
Specific powers of the Commission under the 
Treaties 
(Article 49(6)(d) of the Financial Regulation) Article 33 
Specific powers of the Commission under the 
Treaties 
(Article 49(6)(d) of the Financial Regulation)  
1. The articles of the EC Treaty which 
directly confer sp ecific powers on the 
Commission are as follows: 1. The articles of the EC Treaty which 
directly confer sp ecific powers on the 
Commission are as follows:  
(a) Article 138 (social dialogue); (a ) Article 138 (social dialogue);  
(b) Article 140 (studies, opinions and 
consultations on social matters); (b) Article 140 (studies, opinions and 
consultations on social matters);  
(c) Articles 143 and 145 (special reports on (c ) Articles 143 and 145 (s pecial reports on  
EN  Error! Unknown document property name.  EN social matters); social matters); 
(d) Article 152(2) (initiatives to promote 
coordination on health protection matters); (d) Article 152(2) (initiatives to promote 
coordination on health protection matters);  
(e) Article 155(2) (initiatives to promote 
coordination on trans-European networks); (e) Article 155(2) (initiatives to promote 
coordination on trans-European networks);  
(f) Article 157(2) (initiatives to promote 
coordination on matters relating to industry); (f) Article 157(2) (initiatives to promote 
coordination on matters relating to industry);  
(g) Article 159, second paragraph (report on 
progress made towards achieving economic and social cohesion); (g) Article 159, second paragraph (report on 
progress made towards achieving economic and social cohesion);  
(h) Article 165(2) (initiatives to promote 
coordination on research and technological development); (h) Article 165(2) (initiatives to promote 
coordination on research and technological development);  
(i) Article 173 (report on research and 
technological development); (i) Article 173 (report on research and 
technological development);  
(j) Article 180(2) (initiatives to promote 
coordination of development cooperation policies). (j) Article 180(2) (initiatives to promote 
coordination of development cooperation policies).  
2. The articles of the Euratom Treaty which 
directly confer sp ecific powers on the 
Commission are as follows: 2. The articles of the Euratom Treaty which 
directly confer sp ecific powers on the 
Commission are as follows:  
(a) Article 70 (financi al support, within the 
limits set by the budget, for prospecting (a) Article 70 (financial support, within the 
limits set by the budget, for prospecting  
EN  Error! Unknown document property name.  EN programmes in the territories of the Member 
States); programmes in the territories of the Member 
States); 
(b) Article 77 et seq . (safeguards). (b) Article 77 et seq . (safeguards).  
3. In the presentation of the preliminary draft 
budget, further detail may be added to the lists set out in paragraphs 1 and 2, with an indication of the articles in question a nd the amounts involved. 3. In the presentation of the preliminary draft 
budget, further detail may be added to the lists set out in paragraphs 1 and 2, with an indication of the articles in question a nd the amounts involved.  
Article 34 
Definition of a conflict of interests 
(Article 52(2) of the Financial Regulation) Article 34 
Definition of a conflict of interests 
(Article 52(2) of the Financial Regulation)  
1. Acts likely to be vitiated by a conflict of 
interests within the meaning of Article 52(2) of the Financial Regulation may, inter alia , take one 
of the following forms: 1.
 Acts likely to be vitiated by a conflict of 
interests within the meaning of Article 52(2) of 
the Financial Regulation may, inter alia, take one 
of the following forms:  The definition of conflict of interest is laid 
down in an accurate manner in paragraph 2 of Article 52 FR. The first paragraph of Article 34 IR is supposed to give exam ples of conflict of 
interest situations which are misleading as they cover cases of irregularities or corruption. 
It is therefore preferable to delete the 
paragraph 1 of Article 34 IR and to rely on Article 52(2) FR 
(a) granting oneself or others unjustified direct or indirect advantages; (a)
 granting oneself or others unjustified 
direct or ind irect advantages;   
(b) refusing to grant a beneficiary the rights or 
advantages to which that beneficiary is entitled; (b) refusing to grant a bene ficiary the rights or 
advantages to which that beneficiary is entitled;   
EN  Error! Unknown document property name.  EN (c) committing undue or wrongful acts or 
failing to carry out acts that are mandatory. (c) committing undue or wrongful acts or 
failing to carry out acts that are mandatory.   
2. The competent authority referred to in 
Article 52(1) of the Financial Regulation shall be the hierarchical superior of the member of staff concerned. The hierarchical superior shall confirm in writing whether or not there is a conflict of 
interests. If there is, the hierarchical superior shall 
personally take any appropriate decision. 1.
2. The competent authority referred to in Article 
52(1) of the Financial Regulation shall be the 
hierarchical superior of the member of staff concerned. The hierarchical  superior shall confirm 
in writing whether or not there is a conflict of 
interests and inform the authorising officer by 
delegation thereof . If there is, the hierarchical 
superior shall personall y take any appropriate 
decision. The AOD shall always be informed of 
potential conflict of inte rest in its department. 
3. A conflict of interest shall be presumed to 
exist if an applicant, candidate or tenderer is a member of staff covered by the Staff Regulations, unless his participation in the procedure has been authorised in advance by his superior. 2
.3. A conflict of interest shall be presumed to 
exist if an applicant, candidate or tenderer is a member of staff covered by the Staff Regulations, 
unless his participation in  the procedure has been 
authorised in advance by his superior.  
EN  Error! Unknown document property name.  EN CHAPTER  2 
METHODS OF IMPLEMENTATION  CHAPTER  2 
METHODS OF IMPLEMENTATION   
SECTION 1 
GENERAL PROVISIONS  SECTION 1 
GENERAL PROVISIONS   
 Article 34a  
Management mode  
(Article 53 of the Financial Regulation)   
 The accounting system of the Commission shall 
identify the management mode and, under 
each management mode, the type of entity or 
person  listed in Article 53 paragraph 1 point 2  
of the Financial Regulation entrusted with 
tasks of budget implementation.  
As regards direct management by the 
Commission the accountin g system shall  
distinguish management by the following:  
(a) departments of the Commission,  
(b)executive agencies,  
(c) heads of EU delegations,  
(d) budget support,  The objective of the simplification proposed 
concerning management modes, from 5 to 2 (direct and indirect) is mainly operational. However, the information concerning the nature of implementing partners (Member States, agencies, intern ational organisations, 
public or private entitie s) should be available 
from an accounting point of view. This is the purpose of the present provision. 
EN  Error! Unknown document property name.  EN (e) trust funds referred to  in Article 164 of the 
Financial Regulation.  
 Article 34aa  
Direct management  – Budget support 
(Article 53 of the Financial Regulation)   
 1. Where provided for in the relevant basic 
acts, the Commission may use sectoral or 
general budget support within a third country 
if: 
(a) the partner country’s management of 
public spending is sufficiently transparent, 
reliable and effective, and;  
(b)  where the partner country has put in place 
properly formulated sectoral or 
macroeconomic policies approved by its 
principal donors, including, where relevant, the 
international financial institutions.  
2. The financing decision shall detail the 
objectives and the exp ected results of the 
provision of budget support to a third country. 
The payment of the Union contribution shall be 
based on the fulfilment of conditions, including 
the improvement of the management of public 
spending, and on clear and objective 
performance indicators forming the basis for This provision gives a regulatory framework 
for direct budget support  to third countries. 
The conditions laid down in the ENPI basic act are completed by the obligation to ensure that funds have been correctly allocated on the basis of reliable indicators.     Financing Decisions shall contain the 
confirmation of the AOSD that the conditions for direct support are met and lay down the indicators a llowing the evaluation 
of the correct implementation of the action. 
 
EN  Error! Unknown document property name.  EN the measuring of progress over time in the 
respective sector.  
 Article 34b  
Equivalence of systems, rules and procedures 
in indirect management with entities and 
persons other than Member States  
(Article 53b of the Financial Regulation)   
 1. The Commission may accept that 
procurement rules and procedures are 
equivalent to its own if the following conditions 
are met:  
(a) they comply with  the principle of 
broad competition of tenderers to 
obtain the best value for money, and 
negotiated procedures are limited to 
reasonable amounts or are duly 
justified;  
(b) they ensure transparency with 
adequate ex-ante publication, in 
particular of call for tenders, and 
adequate ex -post publication of 
contractors;  
(c) they ensure equal treatment, 
proportionality and non-discrimination;  
(d) they prevent conflicts of interests 
throughout the entire selection (see current text Article 43(6) IR for joint 
Management) 
 
EN  Error! Unknown document property name.  EN procedure.  
National law of Member States transposing 
Directive 2004/18/EC of the European  
Parliament and of the Council shall be 
considered equivalent to the rules applied by 
the institutions in accordance with the 
Financial Regulation.  
. 2. The Commission may accept that grant 
rules and procedures are equivalent to its own 
if the following conditions are met:  
(a) they comply with the principles of 
proportionality, sound financial 
management, equal treatment and non-
discrimination;  
(b) hey ensure transparency with 
adequate publication of call for 
proposals, direct award procedures 
being limited to reasonable amounts or 
being duly justified;  
(c) they prevent conflicts of interests 
throughout the entire selection 
procedure ;  
(d) they provide that grants may not be 
cumulative or awar ded retrospectively, 
that they must, as a rule, involve co-
financing and that they may not have  
          
EN  Error! Unknown document property name.  EN the purpose or the effect of producing a 
profit for the beneficiary.  
 
 3.  The Commission m ay accept that rules 
and procedures on the use of financial 
instruments are equivalent to its own if they 
comply with the principles laid down in Title 
VI.b of the Financial Regulation.   
 4. The Commission may accept that the 
accounting systems and the internal control 
systems used by entities and persons to be 
entrusted with budget implementation tasks 
are providing an equivalent level of protection 
of the financial interests of the Union if they 
comply with and are operated in accordance 
with internationally accepted standards.   
 Article 34c  
Ex-ante assessment of rules and procedures of 
the entities and persons other than member 
states in indirect management  
(Article 53c(1) of the Financial Regulation)  Out of the scope of ex-ante assessment: 
Member States. 
 For the purposes of the ex-ante assessment 
pursuant to Article 53c(1) of the Financial 
Regulation, the authorising officer responsible 
may rely on an ex-ante assessment made by 
another authorising officer provided that their  
EN  Error! Unknown document property name.  EN conclusions are relevant to the specific risks of 
the tasks to be entrusted, in particular their 
nature and the amounts involved.   
Where budget implementation tasks are 
entrusted to third countries, the authorising 
officer may rely on an ex-ante assessment made 
by other donors as far as this assessment was  
made with regard to the conditions for indirect 
management set out in Article 53b of the 
Financial Regulation.  
For the implementation of financial 
instruments pursuant to paragraph 1 point 
(2)(d) of Article 53 of the Financial Regulation  
the ex ante assessment sh all be only made once, 
covering any future implementation of 
financial instruments by  the relevant entity.  
EN  Error! Unknown document property name.  EN  Article 34ca  
Management declaration of assurance and 
compliance statement  (Article 53b(5) of the 
Financial Regulation)   
 In case of actions terminating before the end of 
the financial year concerned, the final report of 
the entrusted entity or person for this action 
may replace the management declaration of 
assurance referred to in Article 53b(5)(d), 
provided it is submitte d before the 1 February 
of the year following the financial year 
concerned.  
 
Where international organisations  implement 
non-multiannual actions limited to 18 months , 
the compliance statement referred to in Article 
53b(5) of the Financial Regulation may be 
incorporated in the final report.  
 
  
Article 42 
Clearance-of-accounts procedures in 
decentralised or shared management 
(Articles 53b and 53c of the Financial Regulation)Article 34cb 
Clearance-of-accounts pr ocedures in indirect 
management in decentralised or shared  
management  
 (Articles 53b and 53c  Articles 53a(6) and Article 
53b(6)point (b) of the Financial Regulation)  
EN  Error! Unknown document property name.  EN 1. The purpose of the clearance-of-accounts 
procedure referred to in Articles 53b and 53c of 
the Financial Regulation sh all be to ensure that 
expenditure by the Member States in the context of shared management or by third countries in the context of decentralised management and which may be chargeable to the Community budget is in order and consistent with the applicable Community rules. 1.
 The pur pose of the clearance -of-accounts 
procedure referred to in Articles 53b and 53c of 
the Financial Regulation shall be to ensure that 
expenditure by the Member States in the context 
of shared management or by third countries in the 
context of decentralised m anagement and which 
may be chargeable to the Community budget is in 
order and consistent with the applicable 
Community rules. 1. The purpose of the 
clearance-of-accounts pr ocedure referred to in 
Articles 53a(6) and 53b(6)  of the Financial 
Regulation shall be to en sure that expenditure 
declared by Member States , entities and persons 
entrusted with budget implementation tasks  is 
in compliance with the applicable rules and that 
the accounts are complete, accurate and true.  Update of the wording in line with the 
reorganising of management methods in Article 53 FR (direc t and indirect)  
2. Without prejudice to specific provisions 
contained in sectoral rules, the clearance-of-accounts procedure shall consist in: 2.
 2. Without prejudice to specific provisions 
contained in sectoral rules, the clearance-of-accounts procedure shall consist in:  
(a) the declaration of expenditure by the 
Member States or third countries in the form of accounts certified by a technically competent department or body functi onally independent of 
the spending agency; (a)
 the declaration of expenditure by the 
Member States or third countries in the form of 
accounts certified by a technically competent 
department or body functi onally independent of 
the spending agency;  
(a) certification of the accounts of the 
authorities or bodies entrusted with budget 
implementation tasks Member States or third 
countries  by a functionally independent and 
technically competent department of the entity 
or person concerned;  The modification proposed aims at providing 
detailed information regarding the procedure and entity responsible for the production of certified accounts. 
EN  Error! Unknown document property name.  EN  
(b) document and, where appropriate, on-the-
spot checks by the Commission, subject to no limitations or restrictions , on the content of those 
accounts and on the underl ying transactions, 
including checks made with beneficiaries; (b) document
 desk review  and, where 
appropriate, on-the-spot checks subject to no 
limitations  or restrictions, on the content of those  
by the Commission as to the completeness, 
accuracy and veracity of the  accounts and on  
the legality and regularity of the  underlying 
transactions, including checks made with the 
beneficiaries ;  
(c) establishment by the Commission of the 
amount of expenditure recognised as chargeable to the budget, following an adversarial procedure and after the Member States or third countries have been notified; (c) establishment by the Commission of the 
amount of expenditure recognised as chargeable to the budget, following an  adversarial procedure 
with the authorities and bodies and after these
 
Member States or third countries  authorities and 
bodies have been informed notified ; Update of the wording in line with the 
reorganising of management methods in Article 53 FR (indirect management by authorities and bodies). 
(d) calculation of the financial correction arising from the difference between declared expenditure and expend iture recognised as 
chargeable to the budget; (d) calculation by the Commission of the 
financial correction arising from any difference between declared expenditure and expenditure recognised as chargeable to the budget;  
(e) recovery or repayment of the balance 
arising from the differe nce between recognised 
expenditure and the sums  already paid to the 
Member States or third countries. Recovery shall 
be by offsetting as specified in Article 83. (e) recovery or repayment by the 
Commission  of the balance arising from the 
difference between rec ognised expenditure and 
the sums already paid to the authorities or bodies  
Member States or  third countries . Recovery  The 
Commission  shall recover amounts due  by 
offsetting as specified in Article 83. Update of the wording in line with the 
reorganising of management methods in Article 53 FR (indirect management by authorities and bodies). 
EN  Error! Unknown document property name.  EN 3. In the context of decentralised 
management, the clearance-of-accounts procedure described in paragraphs 1 and 2 shall apply in accordance with the degree of decentralisation agreed. 3.
 In the context of decentralised 
management, the clearance -of-accounts pro cedure 
described in paragraphs 1 and 2 shall apply in 
accordance with the degree of decentralisation 
agreed . Where budget implementation tasks are 
entrusted to an intern ational organisation 
implementing a multi-donor action, the clearance of accounts procedure shall consist in verifying that an amount correspo nding to that paid by the 
Commission for the acti on concerned has been 
used by the international organisation for the action and that the expend iture has been incurred 
in accordance with the obligations laid down in the agreement signed with the international organisation.  
Article 41 
Detailed arrangements for indirect centralised 
management 
(Articles 54(2)(b), (c) and (d) of the Financial 
Regulation) Article 34d  
Content of the agreement entrusting budget 
implementation tasks to  entities and persons 
other than Member States  
(Articles 53c(3) of th e Financial Regulation)  Content of current Article 41 IR  
1. Where the Commission entrusts 
implementing tasks to bodi es, entities or persons 
referred to in points (b), (c) and (d) of Article 54(2) of the Financial Regulation, it shall conclude an agreement with them laying down the detailed arrangements for the management and control of funds and the pr otection of the financial 
interests of the Communities. Decisions or agreements entrusting 
implementing tasks to the entities or persons 
referred to in Article 53 paragraph 1 point 2)  
a) , b) c), d), f) g) and h) and to bodies referred 
to in Article 185a of the Financial Regulation 
shall include detailed arrangements ensuring 
the protection of the fi nancial interests of the 
Union and the transparency of operations  
EN  Error! Unknown document property name.  EN 2. The agreement referred to in paragraph 1 
shall include the following provisions: carried out. They shall include at least the 
following:  
2. The agreeme nt referred to in paragraph 1 
shall include the following provisions:  
(a) a definition of the tasks assigned; (a) a clear definition of the tasks assigned  
and the limits thereof, co ncerning in particular 
the modification of the tasks entrusted, the 
waiving of debts, the use of funds reimbursed 
or unused;   
(b) the conditions and detailed arrangements 
for performing the tasks,  including appropriate 
provisions for demarcat ing responsibilities and 
organising the controls to be carried out; (b) conditions and detailed arrangements for 
performing the tasks, including appropriate 
provisions for demarcating responsibilities and 
organising the controls to be carried out , 
including the evaluation of the programmes;   
 (c) conditions for payments of the Union 
contribution, including the reimbursement of 
costs incurred in respect  of implementation as 
well as the remuneration of the entrusted 
entity, together with rules on which supporting 
documents are required to justify the 
payments;   
(c) the rules on reporting to the Commission 
on how the tasks are performed; (d) rules on reporting to the Commission on 
how the tasks are performed , the results 
expected, irregularities which occurred and the 
measures taken, the conditions under which 
payments may be suspe nded or interrupted as 
well as the conditions under which  
EN  Error! Unknown document property name.  EN performance of the tasks terminates;  
(d) the conditions under which performance of 
the tasks terminates; 
 (d) the conditions under which performance of 
the tasks terminates;  
(e) the date by which individual contracts  
and agreements which implement the 
agreement entrusting budget implementation 
tasks shall be concluded;  There is currently no deadline for contracting 
for joint management and for indirect centralised management. 
The ultimate delay for external actions is set 
by reference to Article 166 FR.  
 (f) exclusion rules which allow the contracting 
authority or body to exclude to entities which 
are in a situation referred  to in points a), b) 
and e) of Article 93(1) a nd in points a) and b) 
Article 94 of the Financial Regulation from 
participating in award procedures or from 
being awarded contracts or grants;  These are the exclusion cases which are to be 
laid down in delegation agreement concluded with International Or ganisations (current 
Article 43(4) point (d) FR. 
 
(e) the detailed arrangements for Commission 
scrutiny; (g) detailed arrangements for Commission 
scrutiny as well as provisions granting the 
Commission and the Court of Auditors access 
to the information that is required for it to 
perform its duties, if necessary through on the 
spot-checks;   
 (ga) arrangements providing for:  
(i) an undertaking of the entrusted entity to 
inform the Commission without delay of any fraud occurring in the management of Union funds and the measures taken; Experience has shown that OLAF faced 
difficulties to carry out its mission especially in third countries. Cases of fraud shall be immediately reported to the Commission and an antifraud contact poi nt shall be designated 
in the entrusting agreement. 
EN  Error! Unknown document property name.  EN (ii) the designation of a contact point which 
shall have the appropriate powers to cooperate 
directly with OLAF in order to facilitate the 
latter's operational activities;   
(f) the conditions governing the use of 
separate bank accounts, th e beneficiary of the 
interest yielded and the use made of it; (h) conditions governing the use of bank 
accounts, recovery of the interest yielded or the 
use made of it;  International Organisations are thus 
exempted from reimbursing pre financing interest which shall be invested in the action. 
(h) an undertaking to refrain from any act 
which may give rise to a conflict of interests 
within the meaning of Article 52(2) of the Financial Regulation. (h)
 an undertaking to refrain from any act 
which may give rise to a conflict of interests 
within t he meaning of Article 52(2) of the 
Financial Regulation   
Sentence deleted: now in Article 56 FR. 
(g) the provisions guara nteeing the visibility 
of Community action in relation to the other 
activities of the body; (i) provisions guaranteeing the visibility of 
Union action in relation to the other activities 
of the body;   
 (j) for Financial Instruments pursuant to 
Title VIb:  
- provisions regarding the alignment of 
interest between the Commission and the 
entrusted entity;  
- provisions regarding issues on ethics, 
deontology, money laundering, fight against 
terrorism and the reporting of irregularities 
and fraud;  
- preservation of confid entiality, notably of 
commercial conditions.   
EN  Error! Unknown document property name.  EN 3. The bodies, entities or persons referred to 
in paragraph 1 shall not  have the status of 
authorising officers by delegation.  The date referred to in point (e) shall be 
commensurate with the nature of the tasks 
entrusted. Except for multi-donor actions, it 
shall not exceed 3 years following the date of 
signature of the agreement entrusting budget 
implementation tasks.  
 
For the purposes of point (j) provisions shall 
ensure that there is a common interest in 
achieving the policy objectives defined for a 
financial instrument, possibly fostered by 
provisions such as co-investment requirements 
or financial incentives, while preventing 
conflict of interest with other activities of the 
entrusted entity  
 
3. The bodies, entities or persons referred to 
in paragraph 1 shall not  have the status of 
authorising officers by delegation.  
  
        
 
Transferred in Article 53FR 
Article 35 
Checks to be carried out by the Commission 
(Articles 53d, 54(2)(c) and 56 of the Financial 
Regulation) Article 35  
Checks to be carried out by the Commission  
(Articles 53ed, 54(2)(c ) and 56 of the Financial 
Regulation)   
1. Decisions entrusting implementing tasks to 
the entities or persons re ferred to in Article 56 of 
the Financial Regulation shall include all 1. Decisions entrusting implem enting tasks to 
the entities or persons referred to in 
Article  563a  (2) (d), (f) and (g) of the Financial  
EN  Error! Unknown document property name.  EN appropriate arrangements for ensuring the 
transparency of operations carried out. Regulation shall include all appropriate 
arrangements for ensuring the transparency of 
operations carried out . 
The Commission shall review those arrangements 
as necessary whenever there are substantial changes to the procedures  or systems applied by 
such entities or persons, in order to ensure continued compliance with  the conditions set out 
in Article 56. The Commission shall review those arrangement
s 
as necessary whenever there are substantial 
changes to the procedures or systems applied by 
such entities or persons , in order to ensure 
continued compliance with  the conditions set out 
in Article 56 3 (e) of the Financial Regulation . Transferred to Article 56(4) FR 
2. The entities or persons concerned shall 
provide the Commission, w ithin a specified time-
limit, with any information it requests and shall inform it without delay of  any substantial changes 
in their procedures or systems. 2.
 The entities or persons concerned shall 
provide the Commission, within a specified time -
limit, with any information it requests and shall 
inform it without delay of any substantial changes 
in their procedures or systems.  Transferred to Article 56(4) FR 
The Commission shall, as appropriate, set out the 
obligations in the decisions referred to in paragraph 1, or in the agreements concluded with those entities or persons. The Commission shall, as appropriate, set out the 
obligations in the decisions referred to in 
paragraph 1, or in the agreements concluded with 
those entities or persons.  Transferred to Articl e 34d point (j) IR 
3. The Commission may accept that the 
procurement procedures of the bodies referred to in Articles 54(2)(c) and of the beneficiaries referred to in Article 1 66(1)(a) of the Financial 
Regulation are equivalent  to its own, with due 
account for internationally accepted standards. 3. The Commission may accept that the 
procurement procedures of the bodies referred to 
in Articles 54(2)(c) 3 (e) and of the ben eficiaries 
referred to in Article 166(1)(a) of the Financial 
Regulation are equivalent  to its own, with due 
account for internationally accepted standards.  Transferred to Article 34b IR 
4. Where the Commission implements the 
budget by joint management, the verification agreements concluded with the international 4.
 Where the Commission implements the 
budget by joint management, the verification 
agreements concluded with the international Transferred to Article 38 IR 
EN  Error! Unknown document property name.  EN organisations concerned shall appl y. organisations concerned shall ap ply. 
5. The independent external audit referred to 
in Article 56(1)(d) of the Financial Regulation shall be at least performed by an audit service functionally independent of the entity to which the 
Commission entrusts implementation tasks and shall perform its duties in accordance with internationally accepted auditing standards. 5.
 The independent external audit referred to 
in Article 56(1)(d) of the Financial Regulation 
shall be at least performed by an audit service 
functio nally independent of the entity to which the 
Commission entrusts implementation tasks and 
shall perform its duties in accordance with 
internationally accepted auditing standards . Transferred to Article 34c (3) 
Article 35a 
Measures to promote best  practices (Article 53b 
of the Financial Regulation) Article 35a  
Measures to promote best  practices (Article 53b 
of the Financial Regulation)   
The Commission shall compile a register of 
bodies responsible for management, certification and audit activities unde r the sector-specific 
regulations. In order to pr omote best practices in 
the implementation of the Structural Funds and the European Fisheries Fund, the Commission shall make available for information purposes to those responsible for management and control activities a methodological guide setting out its 
own control strategy and approach, including checklists, and best prac tice examples which have 
been identified. The Commission shall compile a register of 
bodies responsible for ma nagement, certification 
and audit activities under the sector -specific 
regulations. In order to promote best practices in 
the implementation of th e Structural Funds and 
the European Fisheries Fund, the Commission 
shall make available for information purposes to 
those responsible for management and control 
activities a methodological guide setting out its 
own control strategy a nd approach, including 
checklists, and best prac tice examples which have 
been identified.  Transferred to S UB-SECTION 2B below 
concerning specific provisions for indirect management with Member States (shared management) 
EN  Error! Unknown document property name.  EN SECTION 2 
SPECIAL PROVISIONS  SECTION 2 
SPECIAL PROVISIONS   
 S UB-SECTION 2A 
DIRECT MANAGEMENT   
Article 36 
Direct centralised management 
(Article 53a of the Financial Regulation) Article 36 
Direct centralised management 
(Article 53 paragraph 1 point 1 of the Financial 
Regulation)  
Where the Commission implements the budget on 
a centralised basis directly in its departments, implementation tasks sha ll be performed by the 
financial actors within the meaning of Articles 58 to 68 of the Financial Regulation and in compliance with the conditi ons laid down in this 
Regulation. Where the Commission im plements the budget on 
a centralised basis direc tly in its departments, 
implementation tasks shall be performed by the financial actors within the meaning of Articles 58 
to 68 of the Financial Regulation and in compliance with the conditions laid down in this Regulation.  
Article 37 
Exercise of powers delegated to executive 
agencies 
(Articles 54(2)(a) and 55(2) of the Financial 
Regulation) Article 37 36a 
Exercise of powers delegated to executive 
agencies 
(Articles 54(2)(a) and 55(2) of the Financial 
Regulation)  
1. Decisions to delegate  powers to executive 
agencies shall authorise them, as authorising officers by delegation, to implement appropriations relating  to the Community 1. Decisions to delegate  powers to executive 
agencies shall authorise them, as authorising officers by delegation, to implement appropriations relating to the Community
 Union   
EN  Error! Unknown document property name.  EN programme the management of which is entrusted 
to them. programme the management of which is entrusted 
to them. 
2. The Commission's instrument of delegation shall contain th e same provisions as are 
listed in Article 39(2). It shall be formally accepted in writing by the director on behalf of the executive agency. 2. The Commission's instrument of 
delegation shall contain at  least the provisions as 
are listed in points a) to d) and ga) of Article  34d
 
39(2) . It shall be formally accepted in writing by 
the director on behalf of the executive agency.  
 S UB-SECTION 2B 
INDIRECT MANAGEMENT WITH MEMBER STATES 
Article 35a 
Measures to promote best  practices (Article 53b 
of the Financial Regulation) Article 37  
Specific provisions for i ndirect management with 
Member States- measures to promote best 
practices (Article 53b of the Financial 
Regulation)  Restructuring 
 The Commission shall compile a register of 
bodies responsible for ma nagement, certification 
and audit activities unde r the sector-specific 
regulations.  
 In order to promote best practices in the 
implementation of the Structural Funds and the 
European Fisheries Fund, the Commission shall 
make available for information purposes to those 
responsible for management  and control activities 
a methodological guide setting out its own control 
strategy and approach, including checklists, and 
best practice examples  Transferred from Section 1 above. AGRI 
funds are covered by the first paragraph.     Harmonisation of practises is needed for structural funds a nd Fisheries fund 
implemented by various DGs. Obligations for AGRI funds (which are isolated from the Structural funds)  are dealt with in the sector-specific regulations
.      
EN  Error! Unknown document property name.  EN Article 42a  
Summary of audits and declarations 
(Article 53b(3) of the Financial Regulation) Article 37a  
Specific provisions for i ndirect management with 
Member States - summary of audits (Article 53 of 
the Financial Regulation)  
1. The summary shall be provided by the 
appropriate authority or  body designated by the 
Member State for the area of expenditure concerned in accordance with the sector-specific rules. 1.
 The summary shall be provided by the 
appropriate authority or body designated by the 
Member State for the area of expenditure 
concerned in accordance with the sector -specific 
rules. The summar y shall include statistical data 
on the costs of the audits and declarations.  See new rules laid down in Article 53b FR 
2. The part related to audits shall: 2.  The part related to audits shall:   
(a) include, as concerns agriculture, the 
certificates established by the certification bodies, 
and, as concerns struct ural and other similar 
measures, the audit opinions provided by the audit authorities; (a)
 include, as concerns agriculture, the 
certificates established by the certification bodies, 
and, as conce rns structural and other similar 
measures, the audit opini ons provided by the audit 
authorities;   
(b) be provided by 15 Fe bruary of the year 
following the year of the audit activity for agricultural expenditure and for structural and 
other similar measures. (b)
 be provided by 15 February of the year 
following the year of the audit activity for 
agricultural expenditure and for structural and 
other similar measures.   
3. The part related to declarations shall: 3.  The part related to declarations shall:   
(a) include, as concerns agriculture, the 
statements of assurance provided by the paying agencies, and, as concerns structural and other similar measures, certifi cations by the certifying (a)
 include, as concerns agriculture, the 
statements of as surance provided by the paying 
agencies, and, as concerns structural and other 
similar measures, certifi cations by the certifying  
EN  Error! Unknown document property name.  EN authorities; authorities;  
(b) be provided by 15 February of the 
following financial year for agricultural expenditure and for structural and other similar measures. (b)
 be provided by 15 February of the 
following financial year for agricultural 
expenditure and for structural and other similar 
measures.   
 S UB-SECTION 2C 
INDIRECT MANAGEMENT WITH INTERNATIONAL 
ORGANISATIONS   
Article 43 
Joint management 
(Articles 53d, 108a and 165 of the Financial 
Regulation) Article 38  
Specific provisions for indirect management 
with International Organisations  
(Articles 53 paragraph 1 point (2)(b), and 165 
of the Financial Regulation)   
1. The Commission shall ensure that suitable 
arrangements exist for the control and audit of the action in its entirety. 1.
 The Commission shall ensure that suitable 
arrangements exist for the control and audit of the 
action in its entirety.   
2. The international organisations referred to 
in Article 53d of the Fi nancial Regulation shall 
be: 
(a) international public-sector organisations 
set up by intergovernmental agreements, and specialised agencies set up by such organisations; 
(b) the International Committee of the Red 
Cross (ICRC); 1 2
. The international organisations referred to 
in point 2) (b) of paragraph 1 of Article 53 d  of 
the Financial Regulation shall be: 
(a) international public-sector organisations 
set up by intergovernmental agreements, and specialised agencies set up by such organisations; 
(b) the International Committee of the Red 
Cross (ICRC);   
    
EN  Error! Unknown document property name.  EN (c) the International Federation of National 
Red Cross and Red Crescent Societies. 
For the purpose of Article 53d of the Financial 
Regulation, the European Investment Bank and the European Investment Fund shall be assimilated to international organisations. (c) the International Federation of National 
Red Cross and Red Crescent Societies. 
For the purpose of Arti cle 53d of the Financial 
Regulation, the European Investment B ank and 
the European Investme nt Fund shall be 
assimilated to international organisations . 
d) other organisations assimilated to 
international organisations by a Commission 
decision.   
 
The assimilation of EIB and its subsidiaries 
to International Organisation is not necessary any more, as they are listed in the entities eligible for indirect management (Article 53 paragraph 1 point 2 FR). 
 Beyond the existing list of entities 
assimilated to international organisations, it 
is proposed to open the possibility for the Commission to complete this list. This option would is more flexible than a revision of the IR should any future extension of (b) and (c) be necessary. 
 2. Where the Commission implements the budget 
in indirect management with international organisations, the verification agreements concluded with them shall apply.  
The Commission shall negotiate arrangements 
providing for the designation of a contact point 
which shall have the appropriate powers to 
cooperate directly with OLAF  in order to facilitate 
the latter's operational activities.  Moved from current Article 35 IR 
  
Anti fraud contact point to be negotiated 
when renewing verification agreements with IOs 
3. Where the budget is implemented by joint 3.  Where the budget is implemented by joint  
EN  Error! Unknown document property name.  EN management with international organisations in 
accordance with Articles 53d and 165 of the Financial Regulation, the organisations and the actions to be financed shall be chosen in an objective and transparent manner. management with international organi
sations in 
accordance with Articl es 53d and 165 of the 
Financial Regulation, the organisations and the 
actions to be financed shall be chosen in an 
objective and transparent manner.  
 
4. Without prejudice to  Article 35 of this 
Regulation, agreements concluded with the international organisations referred to in Article 53d of the Financial Regulation shall contain in particular the following: 4.
 Without prejudice to Article 35 of this 
Regulation, agreements concluded with the 
international organisations ref erred to in 
paragraph  1 of Article  53ed of the Financial 
Regulation shall contai n in particular the 
following:  Merged with Article 34d applicable to 
delegation agreements in indirect management with entities other than Member States 
(a) a definition of the action, the project or the programme to be implemented under joint management; (a)
 a definition of the action, the project or the 
programme to be implemented under joint 
management;   
(b) the conditions and the detailed 
arrangements for their implementation, including in particular the principles for the award of procurement contracts and grants; (b)
 the conditions and the detailed 
arrangements for their implementation, including 
in particular the principles for the award of 
procurement contracts and gran ts;  
(c) the rules on reporti ng to the Commission 
on implementation; (c) the rules on reporting to the Commission 
on implementation;   
(d) provisions obliging the organisation to 
which implementation tasks are entrusted to exclude from participation in a procurement or grant award procedure ca ndidates and applicants 
who are in the situations referred to in point (a), (d)
 provisions obliging the organisati on to 
which implementation tasks are entrusted to 
exclude from participation in a procurement or 
grant award procedure ca ndidates and applicants 
who are in the situations referred to in point (a),  
EN  Error! Unknown document property name.  EN (b) and (e) of Article 93(1) and its points (a) (b) 
and (e) of Article 94 of the Financial Regulation; (b) and (e) of Article 93(1) and its points (a) (b) 
and (e)  of Article 94 of the Financial Regulation;  
(e) the conditions for payments of the 
Community contribution, and the supporting documents required to justify the payments; (e)
 the conditions for payments of the 
Community contribution, and the supporting 
documents required to justify the payments;   
(f) the conditions under which this 
implementation terminates; (f) the conditions under which this 
implementation terminates;   
(g) the detailed arrangements for Commission 
scrutiny; (g) the detailed arrangements  for Commission 
scrutiny;   
(h) provisions granting the Court of Auditors 
access to the information required to perform its duties, if necessary on the spot, in accordance with the verification agr eements concluded with 
the international orga nisations concerned. (h)
 provisions granting the Court of Auditors 
access to the information required to perform its 
duties, if necessary on the spot, in accordance 
with the verification agreements concluded to that 
effect  with the international organisations 
concerned.   
(i) provisions regarding th e use of any interest 
yielded; (i) provisions regarding the use of any interest 
yielded;   
(j) provisions guaranteeing  the visibility of 
the Community action, pr oject or programme in 
relation to the other activiti es of the organisation. (j) provisions guaranteeing the visibility of 
the Community action, pr oject or programme in 
relation to the other activ ities of the organisation.   
(k) provisions on the publication of the 
beneficiaries of funds deriving from the budget, 
which require the international organisations to publish the information in accordance with Article 169 of this Regulation. (k)
 provisions on the publication of the 
beneficiaries of funds deriving from the budget, 
which require the international organisations to 
publish the information in accordance with Article 
169 of this Regulation an undertaking to refrain  
EN  Error! Unknown document property name.  EN from any act which may rise to a conflict of 
interests.  
5. A project or programme shall be 
considered to be jointly elaborated when the Commission and the international public-sector body jointly assess the feasibility and define the 
implementation agreements. 5.
 A project or programme shall be 
considered to be jointly elaborated when the 
Commission and the international public -sector 
body jointly assess th e feasibility and define the 
implementation agreements.   
6. In the implementation of projects in joint 
management, international organisations shall comply with at least the following requirements: 6.
 In the implementation of projects in joint 
management,  international organisations shall 
comply with at least the following requirements:   
(a) procurement and grant award procedures 
shall comply with the principles of transparency, proportionality, sound fi nancial management, 
equal treatment and non-discrimination, lack of conflict of interests and respect of international standards; (a)
 procurement and gran t award procedures 
shall comply with the principles of transparency, 
proportionality, sound fi nancial management, 
equal treatment and non -discrimination, lack of 
conflict of interests and respect of international 
standards;   
(b) grants may not be cumulative or awarded 
retrospectively; (b) grants may not be cumulative or awarded 
retrospectively;   
(c) grants must involve co-financing, save as 
otherwise provided in Article 253; (c) grants must involve co -financing, save as 
otherwise provided in Article 253;   
(d) grants may not have  the purpose or effect 
of producing a profit for the beneficiary. (d) grants may not have the purpose or effect 
of producing a pr ofit for the beneficiary.   
These requirements shall be  expressly established 
in the agreements concluded with the international organisations. These requirements shall be expressly established 
in the agreements concluded with the international 
organisatio ns.  
EN  Error! Unknown document property name.  EN  S UB-SECTION 2D 
INDIRECT MANAGEMENT WITH BODIES WITH A 
PUBLIC SERVICE MISSION   
Article 38 
Eligibility of national or international public-
sector bodies or private- law entities with a public-
service mission for the delegation of powers and 
conditions relating thereto 
(Article 54(2)(c) of the Financial Regulation) Article 38  
Eligibility of national or international public -
sector bodies or private -law entities with a public -
service mission for the delegation of powers and 
conditions relating thereto  
(Article 54(2)(c) of the Financial Regulation)   
1.  The Commission ma y delegate tasks 
involving the exercise of  public authority to: 1.  The Commission may delegate tasks 
involving the exercise of  public authority to:  See common principles laid down in Article 
53b FR 
(a) international public-sector bodies; (a)  international public -sector bodies;   
(b) national public-sec tor bodies or private-
law entities with a public-service mission governed by the law of a Member State, one of the EEA States or one of the countries that is candidate for membership of the European Union or, if appropriate, by the law of any other country. (b)
 national public -sector bodies or private -
law entities with a public -service mission 
governed by the law of a Member State, one of 
the EEA States or one of the countries that is 
candidate for membership of the European Union 
or, if appropriate, by the law of any other country.   
2. The Commission shall ensure that the 
bodies or entities referred to in paragraph 1 offer adequate financial guarantees, issued preferably by a public authority, in part icular as regards full 
recovery of amounts due to the Commission. 2.
 The Commission shall ensure that the 
bodies or entities referred to in paragraph 1 offer 
adequate financial guarantees, issued preferably 
by a public authority, in pa rticular as regards full 
recovery of amounts due to the Commission.   
3. Where the Commission intends to entrust 3.  Where the Commission intends to entrust  
EN  Error! Unknown document property name.  EN tasks involving the exercise  of public authority, 
and in particular tasks of budget implementation, to a body referred to in poi nt (c) of Article 54(2) 
of the Financial Regul ation, it shall analyse 
compliance with the principles of economy, effectiveness and efficiency. tasks involving the exercise of public authori
ty, 
and in particular tasks of budget implementation, 
to a body referred to in poi nt (c) of Article 54(2) 
of the Financial Regulat ion, it shall analyse 
compliance with the principles of economy, 
effectiveness and efficiency.  
Article 39 
Designation of national or international public-
sector bodies or private- law entities with a public-
service mission 
(Article 54(2)(c) of the Financial Regulation) Article 39 
Designation of public law bodies or bodies 
governed by private law national or international 
public -sector bodies or private -law entities  with a 
public-service mission 
(Article 54(2)(c)  53 point (2)(f)  of the Financial 
Regulation)  
1. The national public-sector bodies or 
private-law entities with a public-service mission shall be subject to the law of the Member State or the country in which they have been set up. 1. The national 
public law -sector  bodies or 
bodies governed by private law  private -law 
entities  with a public-service mission shall be 
subject to the law of the Member State or the country in which they have been set up.   
2. The bodies or entities referred to in 
paragraph 1 or internat ional public-sector bodies 
shall be chosen in an objective and transparent manner, in accordance with the principle of sound financial management, to match the implementation requirements identified by the Commission. That choice may not entail any 
discrimination between the various Member States or countries concerned. 2.
 The bodies or entities referred to in 
paragraph 1 or international public -sector bodies 
shall be chosen in an objective and transparent 
manner, in accordance with the principle of sound 
financial management, to match the 
implementation requirements identified by the 
Commission. That choice may not entail any 
discrimination between the various Me mber 
States or countries concerned.  Transferred to Article 53c (2) FR. 
EN  Error! Unknown document property name.  EN 3. In cases of management by a network, 
requiring the designation of at least one body or 
entity by Member State or by country concerned, the body or entity shall be designated by the Member State or the country concerned in accordance with the provisions of the basic act. 2 
3. In cases of management by a network, 
requiring the designation of at least one body or 
entity by Member State or by country concerned, the body or entity shall be designated by the 
Member State or the country concerned in 
accordance with the provisions of the basic act.  
In all other cases, the Commission shall designate 
such bodies or entities in agreement with the 
Member States or countries concerned. In all other cases, the Commission shall designate 
such bodies or entities in agreement with the 
Member States or countries concerned.  
4. Where the Commission entrusts 
implementing tasks to bodies  referred to in point 
(c) of Article 54(2) of th e Financial Regulation, it 
shall inform annually the legislative authority of the cases and bodies c oncerned by providing 
commensurate justificati on of the use of such 
bodies. 3 
4. Where the Commission entrusts 
implementing tasks to bodies referred to in point (2)
c)(f) paragraph 1 of Article 53 54(2)   of the 
Financial Regulation, it shall inform annually the legislative authority of the cases and bodies concerned by providi ng commensurate 
justification of the use of such bodies.  
Article 39a 
Persons entrusted with the management of 
specific actions pursuant to Title V of the Treaty 
on European Union  
(Article 54(2)(d) of the Financial Regulation) Article 39a  
Persons entrusted with the management of 
specific actions pursuant to Title V of the Treaty 
on European Union  
(Article  54(2)(d) of the Financial Regulation)   
Persons entrusted with the management of 
specific actions as referred to in point (d) of Article 54(2) of the Financial Regulation shall put in place the appropriate st ructures and procedures 
in order to assume the responsibility for the funds 
that they will manage. Those persons shall have Persons entrusted with the management of 
specific actions as referre d to in point (d) of 
Article  54(2) of the Financia l Regulation shall put 
in place the appropriate st ructures and procedures 
in order to assume the responsibility for the funds  
that they will manage. Those persons shall have Transferred to Article 53bFR  
EN  Error! Unknown document property name.  EN the status of Common Fore ign and Security Policy 
Special Advisers of th e Commission pursuant to 
Articles 1 and 5 of the C onditions of Employment 
of Other Servants of the European Communities. the status of Common Fore ign and Security Policy 
Special Advisers of the Commission pursuant to 
Articles 1 and 5 of the C onditions of Employment 
of Other Servants of the European Communities.  
 SUB-SECTION 2E 
INDIRECT MANAGEMENT FOR FINANCIAL 
INSTRUMENTS   
 Article 39b  
Entities implementing financial instruments  
(Articles 53 paragraph 1 point (2) and 120b (3) 
of the Financial Regulation)   
 1. The Commission may entrust the 
implementation of financial instruments to:  
 (a) the European Investment Bank, the 
European Investment Fund or any subsidiaries 
established by the European Investment Bank;  
 (b) international financial institutions in which 
some Member State is a shareholder or 
financial institutions established in a Member 
State aiming at the achievement of public 
interest under the control of public authority.  
 In accordance with the principles set out in 
article 120c of the Fi nancial Regulation, the 
implementation of Financial instruments may be entrusted to the EIB-group, international financial institutions where Member States are stakeholder, and national financial institutions with a public service mission. 
 2. Entities referred to in paragraph 1 may 
further entrust part of the implementation to 
financial intermediaries  provided that these 
entities ensure under their responsibility that 
the intermediaries satisfy the criteria laid down Mirroring financial prac tice, implementation 
shall possible sub-entrusted to a network of financial intermediaries. 
EN  Error! Unknown document property name.  EN in Articles 53b and 120c (3) of the Financial 
Regulation  
 Article 39c  
Rules for implementation and control of 
financial instruments  
(Articles 53 paragraph 1 point 2) and 120c of 
the Financial Regulation)   
 1. Decisions entrusting entities with 
implementing tasks shall include appropriate 
arrangements for ensuring the transparency 
and sound financial management of operations 
carried out.  
 2. The obligations of the entrusted entities 
shall be set out in the decisions referred to in 
paragraph 1, and in the framework or  
delegation agreements concluded with the 
entities. The framework or delegation 
agreements shall contain detailed rules for the 
implementation of the tasks entrusted.  
 
3. Entrusted entities shall, with respect to 
the implementation of each financial 
instrument, report to the Commission 
regularly and at least once a year by 31 March. 
Provisional unaudited fi nancial statements 
shall be provided by 15 February.  
 Considering notably its complexity and 
financial implications, the implementation of Financial instruments implies: (1) transparency and sound financial management, (2) the conclusion of a delegation agreement with detailed provisions, (3) regular reporting, (4) fiduciary accounts and (5) non-speculative hedging.       This article covers the possibility for the entrusted entities to open fiduciary accounts 
in their name and on behalf of the Commission.     The possibility for the IFI to open fiduciary 
EN  Error! Unknown document property name.  EN 4. These entrusted entities may open 
fiduciary accounts within the meaning of 
Article 61 (4) of the Financial Regulation, in 
their name and on beha lf of the Commission. 
These entrusted entities should send 
corresponding account statements to the 
Commission's responsible service.  
The assets held on such fiduciary accounts 
shall be managed in accordance with the 
principle of sound financial management, 
follow appropriate prudential rules, and have 
appropriate liquidity.  
 5. The Commission may harmonise
 
hedging operations in order to reduce the 
interest rate, cash-flow or foreign currency 
risks. Those operations shall rely on 
appropriate instrument s and shall not seek 
speculative purposes.  accounts for the implementation of their 
tasks shall be covered in the relevant agreements between the Commission and the IFIs. 
EN  Error! Unknown document property name.  EN  Article 39d  
Principles for Financial Instruments  
(Articles 53 and 120c of the Financial 
Regulation)   
 Non-cooperative jurisdic tions referred to in 
Article 120c of the Financial Regulation 
include notably jurisdicti ons listed on relevant 
international registers.  Precision for the new requirement on 
financial instruments: their implementing chain shall not involve entities located in non-cooperative jurisdicti ons in respect of 
internationally accepted standards. 
   
   
 S UB-SECTION 2F 
MISCELLANEOUS   
Article 40 
Compliance with the procurement rules 
(Article 57 of the Financial Regulation) Article 40 
Compliance with the procurement rules 
(Article 57 of the Financial Regulation)  
Where the Commission entrusts tasks to private 
bodies under Article 57(2 ) of the Financial 
Regulation, it shall conc lude a contract in 
accordance with the provisi ons of Title V of Part 
One of the Financial Regulation. Where the Commission entrusts tasks to private 
bodies under Article 57(2 ) of the Financial 
Regulation, it shall conc lude a contract in 
accordance with the provisi ons of Title V of Part 
One of the Financial Regulation.  
EN  Error! Unknown document property name.  EN Article 41 
Detailed arrangements for indirect centralised 
management 
(Articles 54(2)(b), (c) and (d) of the Financial 
Regulation) Article 41  
Detailed arrang ements for indirect centralised 
management  
(Articles 54(2)(b), (c) and (d) of the Financial 
Regulation)  Transferred in Article 34d IR 
1. Where the Commission entrusts 
implementing tasks to bodi es, entities or persons 
referred to in points (b), (c) and (d) of Article 54(2) of the Financial Regulation, it shall conclude an agreement with them laying down the detailed arrangements for the management and control of funds and the pr otection of the financial 
interests of the Communities. 1.
 Where the Commission entrusts 
implementing tasks to bodi es, entities or persons 
referred to in points (b), (c) and (d) of Article 
54(2) of the Financia l Regulation, it shall 
conclude an agreement with them laying down the 
detailed arrangements for the management and 
control of  funds and the protection of the financial 
interests of the Communities.   
2. The agreement referred to in paragraph 1 
shall include the following provisions: 2. The agreement referred to in paragraph 1 
shall include the following provisions:   
(a) a definition of the tasks assigned; (a)  a definition of the tasks assigned;   
(b) the conditions and detailed arrangements 
for performing the tasks, including appropriate provisions for demarcating responsibilities and organising the controls to be carried out; (
b) the conditions and detailed arrangements 
for performing the tasks,  including appropriate 
provisions for demarcati ng responsibilities and 
organising the controls to be carried out;   
(c) the rules on reporti ng to the Commission 
on how the tasks are performed; (c) the rules on reporting to the Commission 
on how the tasks are performed;   
(d) the conditions under which performance of 
the tasks terminates; (d) the conditions under which performance of 
the tasks terminates;   
EN  Error! Unknown document property name.  EN (e) the detailed arrangements for Commission 
scrutiny; (e) the detailed arrangements for Commission 
scrutiny;   
(f) the conditions governing the use of 
separate bank accounts, th e beneficiary of the 
interest yielded and the use made of it; (f) the conditions governing the use of 
separate bank accounts, the beneficiary of the 
interest yielded and the use made of it;   
(g) the provisions guaranteeing the visibility 
of Community action in relation to the other 
activities of the body; (g) the provisions guarantee ing the visibility 
of Community  action in relation to the other 
activities of the body;   
(h) an undertaking to refrain from any act 
which may give rise to a conflict of interests 
within the meaning of Article 52(2) of the Financial Regulation. (h)
 an undertaking to refrain from any act  
which may give rise to a conflict of interests 
within the meaning of Article 52(2) of the 
Financial Regulation.   
3. The bodies, entities or persons referred to 
in paragraph 1 shall not  have the status of 
authorising officers by delegation. 3. The bodies,  entities or persons referred to 
in paragraph 1 shall not  have the status of 
authorising officers by delegation.  Transferred in Article 53 FR 
Article 42 
Clearance-of-accounts procedures in 
decentralised or shared management 
(Articles 53b and 53c of the Financial Regulation)Article 42  
Clearance -of-accounts procedures in 
decentralised or shared management  
(Articles 53b and 53c of the Financial Regulation) 
1. The purpose of the clearance-of-accounts 
procedure referred to in Articles 53b and 53c of 
the Financial Regulation sh all be to ensure that 
expenditure by the Member States in the context of shared management or by third countries in the context of decentralised management and which 1.
 The purpose of the clearance -of-accounts 
procedure referred to in Articles 53b and 53c of 
the Financial Regulation shall be to ensure that 
expenditure by the Member States in the context 
of shared management or by thir d countries in the 
context of decentralised  management and which  
EN  Error! Unknown document property name.  EN may be chargeable to the Community budget is in 
order and consistent with the applicable Community rules. may be chargeable to the Community budget is in 
order and consistent with the applicable 
Community rules.  
2. Without prejudice to specific provisions 
contained in sectoral rules, the clearance-of-accounts procedure shall consist in: 2.
 Without prejudice to specific provisions 
contained in sectoral rules, the clearance -of-
accounts procedure shall consist in:   
(a) the declaration of expenditure by the 
Member States or third countries in the form of accounts certified by a technically competent department or body functi onally independent of 
the spending agency; (a)
 the declaration of expenditure by the 
Member States or third countries in the form of 
accounts certified by a technically competent  
department or body functi onally independent of 
the spending agency;   
(b) document and, where appropriate, on-the-
spot checks by the Commission, subject to no limitations or restrictions , on the content of those 
accounts and on the underl ying transactions, 
including checks made with beneficiaries; (b)
 document and, where appropriate, on -the-
spot checks by the Commission, subject to no 
limitations or restrictions , on the content of those 
accounts and on the underl ying transactions, 
including checks made wit h beneficiaries;   
(c) establishment by the Commission of the 
amount of expenditure recognised as chargeable to the budget, following an adversarial procedure and after the Member States or third countries have been notified; (c)
 establishment by the Commi ssion of the 
amount of expenditure recognised as chargeable 
to the budget, following an  adversarial procedure 
and after the Member States or third countries 
have been notified;   
(d) calculation of the financial correction 
arising from the difference between declared expenditure and expend iture recognised as 
chargeable to the budget; (d)
 calculation of the financial correction 
arising from the difference between declared 
expenditure and expenditure recognised as 
chargeable to the budget;   
(e) recovery or repayment of the balance (e)  recovery or repayment of the balance  
EN  Error! Unknown document property name.  EN arising from the differe nce between recognised 
expenditure and the sums  already paid to the 
Member States or third countries. Recovery shall 
be by offsetting as specified in Article 83. arising from the difference between recognised 
expenditure and the sums already paid to the 
Member States or third countries. Recovery shall 
be by offsetting as specified in Article 83.  
3. In the context of decentralised 
management, the clearance-of-accounts procedure described in paragraphs 1 and 2 shall apply in accordance with the degree of decentralisation agreed. 3.
 In the context of decentralised 
management, the clearance -of-accounts procedure 
described in paragraphs 1 and 2 shall apply in 
accordance wit h the degree of decentralisation 
agreed.   
Article 42a  
Summary of audits and declarations 
(Article 53b(3) of the Financial Regulation) Article 42a  
Summary of audits and declarations  
(Article 53b(3) of the Financial Regulation)   
1. The summary shall be provided by the 
appropriate authority or  body designated by the 
Member State for the area of expenditure concerned in accordance with the sector-specific rules. 1.
 The summary shall be provided by the 
appropriate authority or body designated by the 
Member S tate for the area  of expenditure 
concerned in accordance with the sector -specific 
rules.   
2. The part related to audits shall: 2.  The part related to audits shall:   
(a) include, as concerns agriculture, the 
certificates established by the certification bodies, 
and, as concerns struct ural and other similar 
measures, the audit opinions provided by the audit authorities; (a)
 include, as concerns agriculture, the 
certificates established by the certification bodies, 
and, as concerns struct ural and other simil ar 
measures, the audit opini ons provided by the audit 
authorities;   
(b) be provided by 15 Fe bruary of the year 
following the year of the audit activity for (b) be provided by 15 Febru ary of the year 
following the year of the audit activity for  
EN  Error! Unknown document property name.  EN agricultural expenditure and for structural and 
other similar measures. agricultural expenditure and for structural and 
other similar measures.  
3. The part related to declarations shall: 3.  The part related to declarations shall:   
(a) include, as concerns agriculture, the 
statements of assurance provided by the paying agencies, and, as concerns structural and other similar measures, certifi cations by the certifying 
authorities; (a)
 include, as concerns agriculture, the 
statements of assurance provided by the paying  
agencies, and, as concerns structural and other 
similar measures, certifi cations by the certifying 
authorities;   
(b) be provided by 15 February of the 
following financial year for agricultural 
expenditure and for structural and other similar measures. (b
) be provided by 15 February of the 
following financial year for agricultural 
expenditure and for structural and other similar 
measures.   
Article 43 
Joint management 
(Articles 53d, 108a and 165 of the Financial 
Regulation) Article 43  
Joint management  
(Articles 53d, 108a and 165 of the Financial 
Regulation)  Transferred to Article 38 IR 
 
1. The Commission shall ensure that suitable 
arrangements exist for the control and audit of the action in its entirety. 1.
 The Commission shall ensure that suitable 
arrang ements exist for the control and audit of the 
action in its entirety.   
2. The international organisations referred to 
in Article 53d of the Fi nancial Regulation shall 
be: 
(a) international public-sector organisations 
set up by intergovernmental agreements, and 12. The international organisations referred to 
in Article  53 a (2) (g)d of the Financial Regulation 
shall be:  
(a) international public -sector organisations 
set up by intergovernmental agreements, and  
EN  Error! Unknown document property name.  EN specialised agencies set up by such organisations; 
(b) the International Committee of the Red 
Cross (ICRC); 
(c) the International Federation of National 
Red Cross and Red Crescent Societies. 
For the purpose of Article 53d of the Financial 
Regulation, the European Investment Bank and the European Investment Fund shall be assimilated to international organisations. specialised agencies set up by such organisations;
 
(b) the International Committee of the Red 
Cross (ICRC); other organizations  assimilated to 
international organiza tions by a Commission 
decision . 
(c) the International Fe deration of National 
Red Cross and Red Crescent Societies.  
For the purpose of Arti cle 53d of the Financial 
Regulation, the European Investment Bank and 
the European Investme nt Fund shall be 
assimilated to international organisatio ns. 
3. Where the budget is implemented by joint 
management with international organisations in accordance with Articles 53d and 165 of the Financial Regulation, the organisations and the actions to be financed shall be chosen in an objective and transparent manner. 2
3. Where the budget is implemented by joint 
management with indirectly through either 
international organisations or public or private 
sector bodies with a public service mission  in 
accordance with Articl es 53d and 165 of the 
Financial Regulat ion, the organisations or bodies  
and the actions to be financed shall be chosen in 
an objective and transparent manner.  
3. The Commission shall ensure that suitable 
arrangements exist for the control and audit of the 
action in its entirety.   
4. Without prejudice to  Article 35 of this 
Regulation, agreements concluded with the international organisations referred to in Article 53d of the Financial Regulation shall contain in 4.
 Without prejudice to Article 35 of this 
Regulation, agr eements concluded with the 
international organisati ons referred to in 
paragraph  1 of Article  53ed of the Financial  
EN  Error! Unknown document property name.  EN particular the following: Regulation shall contain in particular the 
following:  
(a) a definition of the action, the project or the 
programme to be implemented under joint management; (a)
 a definition of the action, the project or the 
programme to be implemented under joint 
management;   
(b) the conditions and the detailed 
arrangements for their implementation, including in particular the principles for the award of procurement contracts and grants; (b)
 the conditions and the detailed 
arrangements for their implementation, including 
in particular the principles for the award of 
procurement contracts and grants;   
(c) the rules on reporti ng to the Commission 
on implementation; (c) the rules on reporting to the Commission 
on implementation;   
(d) provisions obliging the organisation to 
which implementation tasks are entrusted to exclude from participation in a procurement or grant award procedure ca ndidates and applicants 
who are in the situations referred to in point (a), (b) and (e) of Article 93(1) and its points (a) (b) and (e) of Article 94 of the Financial Regulation; (d)
 provisions obliging th e organisation to 
which implementation tasks are entrusted to 
exclude from participation in a procurement or 
grant award procedure ca ndidates and applicants 
who are in the situations referred to in point (a), 
(b) and (e) of Article 93(1) and its points (a) (b) 
and (e) of Article 94 of the Financial Regulation;   
(e) the conditions for payments of the 
Community contribution, and the supporting documents required to justify the payments; (e)
 the conditions for payments of the 
Community contribution, and the supporting 
documents required to justify the payments;   
(f) the conditions under which this 
implementation terminates; (f) the conditions under which this 
implementation terminates;   
(g) the detailed arrangements for Commission 
scrutiny; (g) the detailed arrangements for Commission 
scrutiny;   
EN  Error! Unknown document property name.  EN (h) provisions granting the Court of Auditors 
access to the information required to perform its duties, if necessary on the spot, in accordance with the verification agr eements concluded with 
the international orga nisations concerned. (h)
 provisions granting the Court of Auditors 
access to the information required to perform its 
duties, if necessary on the spot, in accordance 
with the verification agreements concluded to that 
effect  with the international organisations 
concerned.   
(i) provisions regarding th e use of any interest 
yielded; (i) provisions regarding the use of any interest 
yielded;   
(j) provisions guaranteeing  the visibility of 
the Community action, pr oject or programme in 
relation to the other activiti es of the organisation. (j) provisions guaranteeing the visibility of 
the Co mmunity action, projec t or programme in 
relation to the other activ ities of the organisation.   
(k) provisions on the publication of the 
beneficiaries of funds deriving from the budget, 
which require the international organisations to publish the information in accordance with Article 169 of this Regulation. (k)
 provisions on the publication of the 
beneficiaries of funds deriving from the budget, 
which require the international organisations to 
publish the information in accordance with Article 
169 of this Regulation an undertaking to refrain 
from any act which may rise to a conflict of 
interests.   
5. A project or programme shall be 
considered to be jointly elaborated when the Commission and the international public-sector body jointly assess the feasibility and define the 
implementation agreements. 5.
 A project or programme shall be 
considered to be jointly elaborated when the 
Commission and the international public -sector 
body jointly assess the feasibility and define the 
implementation agreements.   
6. In the implementation of projects in joint 
management, international organisations shall comply with at least the following requirements: 6.
 In the implementation of projects in joint 
management, international organisations shall 
comply with at least the fol lowing requirements:   
EN  Error! Unknown document property name.  EN (a) procurement and grant award procedures 
shall comply with the principles of transparency, proportionality, sound fi nancial management, 
equal treatment and non-discrimination, lack of conflict of interests and respect of international standards; (a)
 procurement and gran t award procedures 
shall comply with the principles of transparency, 
proportionality, sound fi nancial management, 
equal treatment and non -discrimination, lack of 
conflict of interests and respect of international 
standards;   
(b) grants may not be cumulative or awarded 
retrospectively; (b) grants may not be cumulative or awarded 
retrospectively;   
(c) grants must involve co-financing, save as 
otherwise provided in Article 253; (c) grants must involve co -financing, save  as 
otherwise provided in Article 253;   
(d) grants may not have  the purpose or effect 
of producing a profit for the beneficiary. (d) grants may not have the purpose or effect 
of producing a profit for the beneficiary.   
These requirements shall be  expressly established 
in the agreements concluded with the international organisations. These requirements shall be expressly established 
in the agreements concluded with the international 
organisations.   
Article 43a 
Information on transfers of personal data for 
audit purposes  
(Article 48 of the Financial Regulation) Article 43a 
Information on transfers of personal data for 
audit purposes  
(Article 48 of the Financial Regulation)  
In any call made in the context of grants or 
procurements implemented in direct centralised management, potential be neficiaries, candidates 
and tenderers shall, in accordance with Regulation In any call made in the context of grants or 
procurements implemented in direct centralised
 
management, potential be neficiaries, candidates 
and tenderers shall, in ac cordance with Regulation Adjustment in line with restructuration of 
management modes 
EN  Error! Unknown document property name.  EN (EC) No 45/2001 of the European Parliament and 
of the Council7 be informed that, for the purposes 
of safeguarding the financial interests of the Communities, their personal data may be transferred to internal audit services, to the European Court of Auditors, to the Financial Irregularities Panel or to the European Anti-Fraud Office (hereinafter 'OLAF'). (EC) No 45/2001 of the European Parliament and 
of the Council
8 be informed that, for the purposes 
of safeguarding the fina ncial interests of the 
Communities, their personal data may be transferred to internal audit services, to the European Court of Auditors, to the Financial Irregularities Panel or to the European Anti-Fraud Office (hereinafter 'OLAF'). 
CHAPTER 3 
Financial actors CHAPTER 3 
Financial actors  
SECTION 1 
RIGHTS AND OBLIGATIONS OF THE 
FINANCIAL ACTORS  SECTION 1 
RIGHTS AND OBLIGATIONS OF THE 
FINANCIAL ACTORS   
Article 44 
Rights and obligations of the financial actors 
(Article 58 of the Financial Regulation) Article 44 
Rights and obligations of the financial actors 
(Article 58 of the Financial Regulation)  
Each institution shall provide each financial actor 
with the resources require d to perform his duties 
and a charter describing in  detail his tasks, rights 
and obligations. Each institution shall provide each financial actor 
with the resources require d to perform his duties 
and a charter describing in  detail his tasks, rights 
and obligations.  
                                                 
7  OJ L 8, 12.1.2001, p. 1. 
8  OJ L 8, 12.1.2001, p. 1. 
EN  Error! Unknown document property name.  EN SECTION 2 
AUTHORISING OFFICER  SECTION 2 
AUTHORISING OFFICER   
Article 45 
Assistance for authorising officers by delegation 
and subdelegation 
(Article 59 of the Financial Regulation) Article 45 
Assistance for authorising officers by delegation 
and subdelegation 
(Article 59 of the Financial Regulation)  
1. The authorising officer responsible may be 
assisted in his duties by persons covered by the Staff Regulation (hereinaft er «staff») entrusted, 
under his responsibility, with certain operations required for the implemen tation of the budget and 
production of the financial and management information. In order to prevent any conflict of 
interests, staff assisting authorising officers by delegation or subdelegation shall be subject to the 
obligations referred to in Article 52 of the Financial Regulation. 1. The authorising officer responsible may be 
assisted in his duties by persons covered by the Staff Regulation (hereina fter «staff») entrusted, 
under his responsibility, with certain operations 
required for the implementation of the budget and production of the financial and management information. In order to prevent any conflict of 
interests, staff assisting authorising officers by delegation or subdelegation shall be subject to the 
obligations referred to in Article 52 of the Financial Regulation.  
2. Each institution shall inform the budgetary 
authority whenever an authorising officer by delegation takes up his du ties, changes duties or 
terminates his duties. 2. Each institution shall inform the budgetary 
authority whenever an authorising officer by delegation takes up his du ties, changes duties or 
terminates his duties.  
EN  Error! Unknown document property name.  EN Article 46 
Internal provisions governing delegations 
(Article 59 of the Financial Regulation) Article 46 
Internal provisions governing delegations 
(Article 59 of the Financial Regulation)  
In accordance with the Fi nancial Regulation and 
this Regulation, each inst itution shall lay down in 
its internal rules such measures for the management of appropriations as it considers necessary for proper implem entation of its section 
of the budget. In accordance with the Fi nancial Regulation and 
this Regulation, each inst itution shall lay down in 
its internal rules such measures for the management of appropriations as it considers necessary for proper implem entation of its section 
of the budget.  
Article 47 
Segregation of duties of initiation and verification 
of an operation 
(Article 60(4) of the Financial Regulation) Article 47 
Segregation of duties of initiation and verification 
of an operation  Ex ante and ex post controls  
(Article 60(4) and (5)  of the Financial 
Regulation)  
1. Initiation of an operation shall be 
understood to mean all the operations which are normally carried out by the staff referred to in Article 45 and which are preparatory to the adoption of the acts implementing the budget by the competent authorising officer, holder of a delegation or a subdelegation. 1. Initiation of an operation shall be 
understood to mean all th e operations which are 
normally carried out by the staff referred to in Article 45 and which are preparatory to the adoption of the acts implementing the budget by the competent authorising officer, holder of a delegation or a subdelegation.  
2. Ex ante  verification of an operation shall 
be understood to mean all the ex ante  checks put 
in place by the authorisi ng officer responsible in 
order to verify its op erational and financial 
aspects. 2. Ex ante  verification of an operation shall 
be understood to mean all the ex ante  checks put 
in place by the authorising officer responsible in order to verify its op erational and financial 
aspects.  
EN  Error! Unknown document property name.  EN 3. Each operation shall be subject at least to 
an ex ante  verification. The purpose of that 
verification shall be to ascertain that: 3. Each operation shall be  subject at least to 
an ex  ante verification .  
Ex ante controls shall check the coherence 
among supporting documents requested and 
any other information available.  
 The extent of ex ante cont rols shall in each case 
be based on the specific risks identified.  
 
In case of doubt, the authorising officer 
responsible for validating the relevant payment 
shall request complementary information or 
perform an on-the-spot control in order to 
obtain reasonable assurance as part of the ex 
ante control.  
The purpose of the ex ante  that verificati on 
controls shall be to ascertain that: The sentence deleted is in fact moved to 
Article 60(4) FR (and clarified) because it establishes ex-ante veri fication as a general 
rule. Only details or complementary provisions should be in the IR. 
(a) the expenditure and revenue are in order and comply with the pr ovisions applicable, in 
particular those of th e budget and the relevant 
regulations and of any acts adopted in implementation of the Treat ies or regulations and, 
where appropriate, the terms of contracts; (a) the expenditure and revenue are in order 
and comply with the pr ovisions applicable, in 
particular those of the budget and the relevant regulations and of any acts adopted in 
implementation of the Treat ies or regulations and, 
where appropriate, the terms of contracts;  
(b) the principle of sound financial 
management referred to in Chapter 7 of Title II of the Financial Regulation is applied. (b) the principle of sound financial 
management referred to in Chapter 7 of Title II of the Financial Regulation is applied.  
For the purpose of ex ante verification, a series of 
similar individual transactions relating to routine For the purpose of verification controls , a series of 
similar individual transactions relating to routine  
EN  Error! Unknown document property name.  EN expenditure on salaries, pensions, reimbursement 
of mission expenses and me dical expenses may be 
considered by the authorising officer responsible to constitute a single operation. expenditure on salaries, pensions, reimbursement 
of mission expenses and me dical expenses may be 
considered by the authorising officer responsible to constitute a single operation. 
In the case referred to in  the second subparagraph, 
the authorising officer responsible shall, depending on his risk assessment, carry out an appropriate ex post  verification, in accordance 
with paragraph 4." In the case referred to in  the second subparagraph, 
the authorising officer  responsible shall, 
depending on his risk asse ssment, carry out an 
appropriate ex post veri fication, in accordance 
with paragraph 4 ." Redundant with Article 47.3 
4. The ex post verifications on documents 
and, where appropriate, on the spot shall check that operations fina nced by the budget are 
correctly implemented and in particular that the criteria referred to in paragraph 3 are complied 
with. These verifications may be organised on a 
sample basis using risk analysis. 4. The ex post verifications
 controls may be 
effected on the basis of  documents and, where 
appropriate, on the spot .  
These controls shall check that operations 
financed by the budget are correctly implemented and in particular that the criteria referred to in paragraph 3 are complied with. These 
verifications may be orga nised on a sample basis 
using risk analysis . 
The outcomes of ex post controls shall be 
reviewed by the authorising officer by 
delegation at least annually to identify any 
potential systemic issues. He/she shall take 
measures to address those issues.  
The risk analysis referred to in Article 60 (5) of 
the Financial regulation shall be reviewed in 
the light of the results of controls and other 
relevant information.  These changes provide for clarification, as 
well as more detailed provisions on the follow-up of ex-post controls. 
EN  Error! Unknown document property name.  EN 5. The members of staff responsible for the 
verifications referred to in paragraphs 2 and 4 
shall be different from those members of staff 
performing the tasks of initiation referred to in paragraph 1 and they shall not be subordinate to the latter. 5. The members of staff responsible for the 
verifications referred to in paragraphs 2 and 4 
shall be differ ent from those members of staff 
performing the tasks of initiation referred to in 
paragraph 1 and they sha ll not be subordinate to 
the latter.  
In case of multi-annual programmes, the 
authorising officer by delegation shall establish 
a multi-annual control strategy, specifying the 
nature and extent of controls over the period 
and the manner how the results are to be 
measured year-on-year for the annual 
assurance process.  
 See Article 60(5) FR 
   A sound multi-annual strate gy is important in 
the context of the Commission's assurance framework, notably as many services (Research DGs, Structural Funds) explicitly give assurance on this basis. 
Article 48 
Management and internal control procedures 
(Article 60(4) of the Financial Regulation) Article 48  
Management and internal control procedures  
(Article 60(4) of the Financial Regulation   
The management and internal control systems and 
procedures shall be designed to: The management and internal control systems and 
procedures shall be designed to  Replacing of  article 48 IR with a reference 
to article 28a in 60.2 
(a) achieve the objectives of the policies, programmes and actions of  the institution in 
accordance with the principle of sound financial management; (a)
 achieve the objectives of the policies, 
programmes and actions of th e institution in 
accordance with the prin ciple of sound financial 
management;  Redundant with 28a2a 
(b) comply with the rules of Community law 
and minimum control standards established by the institution; (b)
 comply with the rules of Commu nity law 
and minimum control standards established by the 
institution;  Minimum control sta ndards mentioned in 
60.2 
EN  Error! Unknown document property name.  EN (c) safeguard the institution's assets and 
information; (c) safeguard the institution's assets and 
information; ; Redundant with 28a 2c 
(d) prevent and detect ir regularities, errors and 
fraud; (d) prevent and detect irre gularities, errors and 
fraud;  Redundant with 28a 2c 
(e) identify and prevent management risks and 
manage them effectively; (e) identify and prevent management risks and 
manage  them effectively;  Redundant with 28a 2b 
(f) ensure reliable produc tion of financial and 
management information; (f) ensure reliable production of financial and 
management information;  Redundant with 28a 2b 
(g) keep supporting documents relating to and 
subsequent to budget implementation and budget implementation measures; (g)
 keep supporting documents relating to and 
subsequent to budget implementation and budget 
implementation measures;  Moved/merged into article 49 
(h) keep documents relating to advance 
guarantees for the institu tion and keep a log to 
enable such guarantees to be adequately monitored. (h)
 keep documents relating to advance 
guarantees for the institu tion and keep a log to 
enable such guarantees to be adequately 
monitored.  Moved/merged into article 49 
Article 49 
Keeping of supporting documents by authorising 
officers 
(Article 60(4) of the Financial Regulation) Article 49 
Keeping of supporting documents by authorising 
officers 
(Article 60(4 2) of the Financial Regulation)  
The management systems and procedures 
concerning the keeping of original supporting documents shall provide for: The authorising of ficer shall set up 
The 
management  paper based or electronic  systems 
and procedures concerning  for the keeping of 
original supporting documents relating to and 
subsequent to budget implementation and Transferred from article  48(g) (deletion of 
Article 48 because of overlap with Article 28a and 22a IR) 
EN  Error! Unknown document property name.  EN budget implementation measures. The system  
shall provide for: 
(a) such documents to be numbered; (a) such documents to be numbered;  
(b) such documents to be dated; (b) such documents to be dated;  
(c) registers, which may be computerised, to 
be kept identifying the exact location of such documents; (c) registers, which may be computerised, to 
be kept identifying the exact location of such documents;  
(d) such documents to be kept for at least five 
years from the date on which the European Parliament grants discharge for the budgetary year to which the documents relate. (d) such documents to be kept for at least five 
years from the date on which the European Parliament grants discharge for the budgetary year to which the documents relate.  
 (e) keeping of documents relating to pre-
financing guarantees for the institution and of 
a log to enable such  guarantees to be 
adequately monitored.  Transferred from article 48(h) (deletion of 
Article 48 because of overlap with Article 
28a and 22a IR 
Documents relating to oper ations not definitively 
closed shall be kept for longer than provided for in point (d) of the first subp aragraph, that is to say, 
until the end of the year following that in which the operations are closed. Documents relating to oper ations not definitively 
closed shall be kept fo r longer than provided for 
in point (d) of the first subparagraph, that is to 
say, until the end of the year following that in which the operations are closed.  
Personal data contained in supporting documents 
shall be deleted where possible when those data are not necessary for budgetary discharge, control and audit purposes. In any event, as concerns the 
conservation of traffic data, Article 37(2) of Regulation (EC) No 45/2001 shall apply. Personal data contained in supporting documents 
shall be deleted where possible when those data are not necessary for budge tary discharge, control 
and audit purposes. In any event, as concerns the 
conservation of traffic data, Article 37(2) of 
Regulation (EC) No 45/2001 shall apply.  
EN  Error! Unknown document property name.  EN Article 50 
Code of professional standards 
(Article 60(5) of the Financial Regulation) Article 50 
Code of professional standards 
(Article 60(5 6) of the Financial Regulation)  
1. The staff designated by the authorising 
officer responsible to verify financial operations shall be chosen on the grounds of their knowledge, skills and particul ar qualifications as 
evidenced by diplomas or by appropriate 
professional experience, or  after an appropriate 
training programme. 1. The staff designated by the authorising 
officer responsible to ve rify financial operations 
shall be chosen on the grounds of their knowledge, skills and particul ar qualifications as 
evidenced by diplomas or by appropriate 
professional experience, or  after an appropriate 
training programme.  
2. Each institution shall draw up a code of 
professional standards which determine, on matters of internal control: 2. Each institution shall draw up a code of 
professional standards which determine, on matters of internal control:  
(a) the level of technical and financial 
competence required of the staff referred to in paragraph 1; (a) the level of technical and financial 
competence required of the staff referred to in paragraph 1;  
(b) the obligation for such staff to undergo 
continuing training; (b) the obligation for such staff to undergo 
continuing training;  
(c) the mission, role and tasks allocated to 
them; (c) the mission, role and tasks allocated to 
them;  
(d)  the rules of conduct, in particular the 
standards of ethics and integrity that they must comply with and the rights they enjoy. (d)  the rules of conduc t, in particular the 
standards of ethics and in tegrity that they must 
comply with and the rights they enjoy.  
EN  Error! Unknown document property name.  EN 3. Each institution shall put in place the 
appropriate structures to distribute to authorising 
departments and update pe riodically appropriate 
information concerning the control standards and the methods and techniques available for that purpose. 3. Each institution shall put in place the 
appropriate structures to distribute to authorising 
departments and update pe riodically appropriate 
information concerning the control standards and the methods and techniques available for that purpose.  
Article 51 
Failure of the authorising officer by delegation to 
take action 
(Article 60(6) of the Financial Regulation) Article 51 
Failure of the authorising officer by delegation to 
take action 
(Article 60(6 7) of the Financial Regulation)  
Failure by the authorising officer by delegation to 
take action, as referred to  in Article 60(6) of the 
Financial Regulation, sha ll mean the absence of 
any reply within a reasonable time given the circumstances of the case a nd, at all events, within 
a month at most. Failure by the authorising officer by delegation to 
take action, as referred to in Article 60(6
7) of the 
Financial Regulation, shall mean the absence of any reply within a reasonable time given the circumstances of the case a nd, at all events, within 
a month at most.  
Article 52 
Ex post verification and annual activity report 
(Article 60(7) of the Financial Regulation) Article 52  
Ex post verification and annual activity report  
(Article 60(78) of th e Financial Regulation)   
The result of the ex post verifications shall, with 
other matters, be set out in the annual activity report submitted by the authorising officer by delegation to his institution. The result of the ex post verifications shall, with
 
other matters, be set out in the annual activity 
report submitted by the authorising officer by 
delegation to his institution.  The reporting requirement to report on 
results of controls has been introduced in Article 60(9)FR 
EN  Error! Unknown document property name.  EN Article 53 
Transmission of financial and management 
information to the accounting officer 
(Article 60 of the Financial Regulation) Article 53 
Transmission of financial and management 
information to the accounting officer 
(Article 60 of the Financial Regulation)  
The authorising officer by delegation shall send 
the accounting officer, in  accordance with the 
rules adopted by the latt er, the financial and 
management information required for the performance of the accounting officer's duties. The authorising officer by delegation shall send 
the accounting officer, in  accordance with the 
rules adopted by the latter, the financial and management information required for the performance of the accounting officer's duties. 
The accounting officer shall be informed, 
regularly and at least for the closure of the 
accounts, by the authorising officer of the 
relevant financial data of the fiduciary bank 
accounts in order to allow the use of Union 
funds to be reflected in the accounts of the 
Union.   
  In order to allow the Accounting officer to be informed of the relevant financial data of the fiduciary bank accounts required for the performance of the accounting officer's duties.  
Article 54 
Report on negotiated procedures 
(Article 60 of the Financial Regulation) Article 54 
Report on negotiated procedures 
(Article 60 of the Financial Regulation)  
Authorising officers by delegation shall record, 
for each financial year, contracts concluded by the negotiated procedures re ferred to in Articles 
126(1) (a) to (g), 127(1) (a) to (d), 242, 244 and 246. If the proportion of negotiated procedures in relation to the number of contracts awarded by the same authorising officer by delegation increases appreciably in relation to earlier years or if that proportion is distinctly higher than the average Authorising officers by delegation shall record, 
for each financial year, contracts concluded by the negotiated procedures re ferred to in Articles 
126(1) (a) to (g), 127(1) (a) to (d), 242, 244 and 246. If the proportion of negotiated procedures in relation to the number of contracts awarded by the same authorising officer by delegation increases appreciably in relation to earlier years or if that 
proportion is distinctly higher than the average  
EN  Error! Unknown document property name.  EN recorded for the institution, the authorising officer 
responsible shall report to the institution setting 
out any measures taken to reverse that trend. Each 
institution shall send a report on negotiated 
procedures to the budgetary authority. In the case of the Commission, that repo rt shall be annexed to 
the summary of the annual activity reports referred to in Article 60(7) of the Financial 
Regulation. recorded for the institution, the authorising officer 
responsible shall report to  the institution setting 
out any measures taken to reverse that trend. Each 
institution shall send a report on negotiated 
procedures to the budgetary authority. In the case of the Commission, that report shall be annexed to the summary of the annual activity reports referred to in Article 60(7
8) of the Financial 
Regulation. 
SECTION 3 
ACCOUNTING OFFICER  SECTION 3 
ACCOUNTING OFFICER   
Article 55 
Appointment of the accounting officer 
(Article 61 of the Financial Regulation) Article 55 
Appointment of the accounting officer 
(Article 61 of the Financial Regulation)  
Each institution shall appoint an accounting 
officer from officials subject to the Staff Regulations of Offici als of the European 
Communities. 1.
 Each institution shall appoint an accounting 
officer from officials subject to the Staff Regulations of Officials of the European Communities.  
The accounting officer shall, obligatorily, be 
chosen by the institution on the grounds of his 
particular competence as evidenced by diplomas or by equivalent professional experience. The accounting officer shall, obligatorily, be 
chosen by the institution on the grounds of his particular competence as evidenced by diplomas or by equivalent professional experience.  
 2. Two or more institutions or bodies may 
appoint the same accounting officer.  
 In such case, they sh all make the necessary 
arrangements in order to avoid any conflict of 
interest.  It is necessary to insert the possibility for two 
or more institutions or bodies to appoint the same person as accounting officer.  
EN  Error! Unknown document property name.  EN Article 56 
Termination of duties of the accounting officer 
(Article 61 of the Financial Regulation) Article 56 
Termination of duties of the accounting officer 
(Article 61 of the Financial Regulation)  
1. A trial balance shal l be drawn up without 
delay in the event of termination of the duties of the accounting officer. 1. A trial balance shall be drawn up without 
delay in the event of termination of the duties of the accounting officer.  
2. The trial balance accompanied by a 
handing over report shall be transmitted by the accounting officer who is terminating his duties or, if it is not possible,  by an official in his 
department to the new accounting officer. 2. The trial balance accompanied by a 
handing over report shall be transmitted by the accounting officer who is  terminating his duties 
or, if it is not possible,  by an official in his 
department to the new accounting officer.  
The new accounting officer shall sign the trial 
balance in acceptance within one month from the date of transmission and he may make reservations. The new accounting officer shall sign the trial 
balance in acceptance within one month from the date of transmission and he may make reservations.  
The handing over report shall also contain the 
result of the trial bala nce and any reservations 
made. The handing over report shall also contain the 
result of the trial balance and any reservations made.  
3. Each institution shall inform the budgetary 
authority of the appointment or termination of duties of its accounting officer. 3. Each institution or body referred to in 
Article 185 of the Financial Regulation  shall 
inform the budgetary authority and the 
Commission's Accounting Officer  of the 
appointment or termination of duties of its accounting officer. To facilitate the consolidation procedure it 
should be stipulated in the IR that each institution/body according to Art. 185 have to 
notify within 2 weeks the Commission's Accounting Officer about the appointment/ resignation of its Accounting Officer.  
EN  Error! Unknown document property name.  EN Article 57 
Opinion on accounting and inventory systems 
(Article 61 of the Financial Regulation) Article 57 
Opinion on accounting and inventory systems 
(Article 61 of the Financial Regulation)  
Where financial management systems set up by 
the authorising officer provide data for the institution's accounts or ar e used to substantiate 
data in those accounts, the accounting officer must give his agreement to  the introduction or 
modification of such systems. Where financial manageme nt systems set up by 
the authorising officer provide data for the 
institution's accounts or ar e used to substantiate 
data in those accounts, the accounti ng officer must 
give his agreement to the introduction or 
modification of such systems.  
 
The competent authorising officer shall notify 
the accounting officer of all developments or 
significant modifications of a financial 
management system, an inventory system or a 
system for the valuation of assets and liabilities, 
if it provides data for the accounts of the 
institution or is used to substantiate data 
thereof, so that the accounting officer can 
verify compliance with the validation criteria.  A certain number of issues have been 
identified during the course of validations. Some require a consideration of the policy itself, others can be solved with minor textual changes. In particular, current Regulations seem to be written with the objective of a one-off verification rather than a more continuous process.  
At policy level, the following question arises: 
the accounting officer is empowered to verify the respect of the validation criteria. However, there is no provision for any particular action if it is  found that the criteria 
are not respected. Currently the AO can suspend or refuse an agreement, but there are no other consequences laid down. In addition, there are no provisions to cancel a validation that has al ready been given.  
A solution could be that if the Accounting officer refuses the validation, the authorising officer must put in place an action plan in order to solve the problems raised in justifying such a refusal. 
The accounting officer sha ll also be consulted 
regarding the introduction or modification by the authorising officers resp onsible of inventory The accounting officer shall also be consulted 
regarding the introduction or modification by the 
authorising officers responsible of invento ry  
EN  Error! Unknown document property name.  EN systems and systems for valuing assets and 
liabilities. systems and systems for valuing assets and 
liabilities.  
At any time, the accounting officer may 
reexamine a financial management system 
already validated. Where a financial 
management system set up by the authorising 
officer is not or is no longer validated by the 
accounting officer, the responsible authorising 
officer shall establish an action plan in order to 
correct, in due time, weaknesses for which the 
validation has been rejected.   
 This adds a clear provision allowing the 
accounting officer to re-perform a validation.  
 
 The responsible author ising officer shall be 
responsible for the completeness of information 
transmitted to the accounting officer.  This makes explicit that the AODs remain 
responsible for the exhaustivity of information forwarded to the accounting officer.  
Article 58 
Treasury management 
(Article 61 of the Financial Regulation) Article 58 
Treasury management 
(Article 61 of the Financial Regulation)  
1. The accounting officer shall ensure that his 
institution has at its dis posal sufficient funds to 
cover the cash requirements arising from budgetary implementation. 1. The accounting officer shall ensure that his 
institution has at its disposal sufficient funds to cover the cash requirements arising from budgetary implementation.  
2. For the purposes of paragraph 1, the 
accounting officer shall set up cash management systems enabling him to draw up cash-flow forecasts. 2. For the purposes of paragraph 1, the 
accounting officer shall set up cash management 
systems enabling him to draw up cash-flow forecasts.  
EN  Error! Unknown document property name.  EN 3. The Commission's accounting officer shall 
divide up the funds availa ble in accordance with 
Regulation (EC, Euratom) No 1150/2000. 3. The Commission's accounting officer shall 
divide up the funds availa ble in accordance with 
Regulation (EC, Euratom) No 1150/2000.  
Article 59 
Management of bank accounts 
(Article 61 of the Financial Regulation) Article 59 
Management of bank accounts 
(Article 61 of the Financial Regulation)  
1. For the requirements of treasury 
management, the accounting officer may open accounts in the name of the institution with financial institutions or national central banks or cause such accounts to be opened. In duly 
warranted circumstances, he/she may open accounts in currencies other than the euro. 1. For the requirements of treasury 
management, the accounting officer may open accounts in the name of the institution with financial institutions or national central banks or cause such accounts to be opened. In duly 
warranted circumstances, he/she may open accounts in currencies other than the euro. 
  
 2. The accounting officer shall be responsible 
for closing accounts referred to in the 
paragraph 1 or for ensuring that such accounts 
are closed.  Clarification: closing accounts is also the 
responsibility and competence of the accounting officer  
2. The accounting officer shall negotiate the 
operating terms for accounts with financial institutions, in accordance with the principles of sound financial management, efficiency and competitive tendering. 3.
 2. The accounting officer shall set negotiate  
the operating terms for accounts referred to in 
the paragraph 1  with financial institutions, in 
accordance with the principles of sound financial management, efficiency and competitive tendering. Clarification: the term 'negotiate' is confusing 
as it refers to negotiated procedure in procurement wording. This is not the case as confirmed in the paragraph below. 
3. At least every five  years the accounting 4. 3. At least every five years the accounting Cl arification: the proposed change aims at 
EN  Error! Unknown document property name.  EN officer shall relaunch competitive tendering 
between financial institu tions with which accounts 
have been opened. officer shall relaunch competitive tendering 
between financial institu tions with which accounts 
have been opened  could be opened in 
accordance with paragraph 1 . lifting any ambiguity concerning the 
competitive procedure concerned. Indeed, the text currently in force gives the impression that tendering is limite d to institutions with 
which the Commission has already contracted, thereby preventing an open tender. The objective is to allow open tenders, i.e. also concerning financial institutions with wh ich the Commission has 
not contracted. 
 Where local banking conditions allow for it, 
imprest related bank accounts opened with 
financial institutions located outside the Union 
shall be regularly subject to a competitive 
survey. Such a survey shall be undertaken, at 
least every five years, at  the initiative of the 
imprest account holder, who then shall submit 
to the Accounting Officer a substantiated  
proposal for the selection of a bank for a 
period not exceeding five years.  The selection of banks for imprest accounts 
is usually made as follows: imprest account holders in Delegations make a 'Bank Survey' with at least three local banks, if the local environment allows for it. The imprest account holder and the Head of Delegation then male a proposal to to the accounting officer, who accepts it (most of the time) or not. In some delegations, in particular for safety reasons, the criteria of proximity of a local branch from the Bank, can be important.  The decision to create the imprest account is then adopted with the details of the local branch and signed by the accounting officer. The proposal aims at taking into account 
these sometimes difficult local conditions. 
4. The accounting officer shall ensure strict 
compliance with the operating terms for accounts opened with financial institutions. 5.
 4 The accounting officer shall ensure strict 
compliance with the operating terms for accounts opened with financial institutions in accordance The current provision is inapplicable outside 
the Union, given the diversity of local laws and rules. It is also  disproportionate to 
request that the accounting officer the 'strict' 
EN  Error! Unknown document property name.  EN with paragraph 1 . 
For imprest related bank accounts opened with 
financial institutions located outside the Union, 
the imprest account holder shall assume this 
responsibility taking  into account the 
applicable legislation in the country where 
he/she exercises his mandate.  respect of operating terms for accounts 
opened in more than 130 countries. As a consequence, it is proposed that imprest account holders are responsible for the compliance of operating terms. Rules concerning the creation of imprest accounts and the Charter of imprest account officers should be modified accordingly. 
5. The Commission's accounting officer shall be responsible, after consulting the accounting officers of the other institutions, for harmonising the operating terms for accounts opened by the various institutions. 5.
 The Commission's accounting officer shall 
be responsible, after consulting the accounting 
officers of the other institutions, for harmonising 
the operating terms for accounts opened by the 
various institutions.  
6. The accounting officer of the 
Commission shall inform the accounting 
officers of the other institutions and of the 
bodies referred to in Article 185 of the 
Financial Regulation, on the operating terms of 
accounts opened with financial institutions. 
The accounting officers of the other institutions 
and of the bodies referred to in Article 185 of 
the Financial Regulation shall harmonise, with 
these operating terms, the operating terms of 
the accounts they open.  Experience shows that the provision 
currently in force is not realistic, all the more 
so if it should be applicable to agencies, because the procedures for the execution of payments (SWIFT – non SWIFT) vary between institutions. In this context, an exercise led in 2008 to gather information on bank accounts managed by other institutions and agencies was not satisfactory (absence of responses).   
 7. Within the implementation of a programme 
or an action, bank acco unts may be opened or 
closed, in agreement with the Accounting  
Officer in the name of the Commission and on 
its behalf by a financial institution listed in This paragraph is strictly related to the new 
article 61 (4) of FR concerning fiduciary accounts and aims clarif ying the role of the 
Accounting Officer.  
EN  Error! Unknown document property name.  EN points 2(c) and (d) of Article 53 paragraph 1 of 
the Financial regulation, in accordance the 
terms set out in the relevant framework or 
delegation agreement.  
Article 60 
Signatures on accounts 
(Article 61 of the Financial Regulation) Article 60 
Signatures on accounts 
(Article 61 of the Financial Regulation)  
The terms governing the opening, operation and 
use of accounts shall provide, depending on internal control requirem ents, that cheques, bank 
credit transfer orders  or any other banking 
operations must be signed by one or more duly authorised members of staff. The terms governing the opening, operation and 
use of accounts shall provide, depending on internal control requirement s, that cheques, bank 
credit transfer orders  or any other banking 
operations must be signed by one or more duly authorised members of staff.  
To that end, the accounting officer of each 
institution shall communicate to all financial institutions with which the institution concerned 
has opened accounts the names and specimen signatures of the authorised members of staff. To that end, the accounting officer of each 
institution shall communi cate to all financial 
institutions with which the institution concerned has opened accounts the names and specimen signatures of the authorised members of staff.  
Article 61 
Management of account balances 
(Article 61 of the Financial Regulation) Article 61 
Management of account balances 
(Article 61 of the Financial Regulation)  
1. The accounting officer shall ensure that 
the balance on the bank accounts provided for in 
Article 59 does not deviate significantly from the cash-flow forecasts referred to in Article 58(2) and in any event: 1. The accounting officer shall ensure that 
the balance on the bank accounts provided for in Article 59 does not deviate significantly from the cash-flow forecasts referred to in Article 58(2) and in any event:  
EN  Error! Unknown document property name.  EN (a) that none of those accounts is in debit; (a ) that none of those accounts is in debit;  
(b) that the balance of accounts held in other 
currencies is periodically  converted into euro. (b) that the balance of accounts held in other 
currencies is periodically  converted into euro.  
2. The accounting officer may not maintain 
balances in foreign currency accounts which might cause excessive losses to the institution as a result of exchange rate fluctuations. 2. The accounting officer may not maintain 
balances in foreign currency accounts which might cause excessive losses to the institution as a result of exchange rate fluctuations.  
Article 62 
Transfers and conversion operations 
(Article 61 of the Financial Regulation) Article 62 
Transfers and conversion operations 
(Article 61 of the Financial Regulation)  
Without prejudice to Ar ticle 69, the accounting 
officer shall conduct transfers between accounts opened in the name of  the institution with 
financial institutions, and conduct currency conversion operations. Without prejudice to Article 69, the accounting 
officer shall conduct transfers between accounts opened by him/her
 in the name of the institution 
with financial institutio ns, and conduct currency 
conversion operations. In order to exclude the bank accounts 
referred to in Article 61.4 F.R. 
Article 63 
Methods of payment 
(Article 61 of the Financial Regulation) Article 63 
Methods of payment 
(Article 61 of the Financial Regulation)  
Payments shall be made by bank credit transfer or 
by cheque. Payments shall be made by bank credit transfer or 
by cheque.  
EN  Error! Unknown document property name.  EN Article 64 
Legal Entities Files 
(Article 61 of the Financial Regulation) Article 64 
Legal Entities Files 
(Article 61 of the Financial Regulation)  
1. The accounting officer may make 
payments by bank credit transfer only if the payee’s bank account details and information confirming the payee’s identity, or any modification, have first been entered in a common file by institution. 1. The accounting officer may make 
payments by bank credit transfer only if the payee’s bank account deta ils and information 
confirming the payee’s identity, or any modification, have first been entered in a common file by institution.  
Any such entry in the file of the payee's legal and 
bank account details or modification of those details shall be based on a supporting document, the form of which shall be defined by the Commission’s accounting officer. Any such entry in the file of the payee's legal and 
bank account details or modification of those details shall be based on a supporting document, the form of which shall be defined by the Commission’s
 accounting officer. Revised provision to accommodate for the 
needs of other institutions:  indeed, the form 
of the supporting document defined by the Commission's Accounti ng officer cannot be 
used by other institutions without modifications. The BIC/SWIFT code, for example, is not a field on the Commission's form. The form of the supporting document should therefore be defined by the Accounting officer.  
2. With a view to payment by bank credit 
transfer, authorising officers may enter into a commitment towards a third party on behalf of their institution only if that third party has provided the documentation required for its entry in the file. 2. With a view to payment by bank credit 
transfer, authorising officers may enter into a commitment towards a third party on behalf of their institution only if that third party has provided the documentation required for its entry in the file.  
Authorising officers shall inform the accounting 
officer of any change in the legal and bank Authorising officers shall inform the accounting 
officer of any change in the legal and bank  
EN  Error! Unknown document property name.  EN account details communicated to them by the 
payee and shall check that these details are valid before a payment is made. account details communicated to them by the 
payee and shall check that these details are valid before a payment is made. 
In connection with pre-accession aid, individual commitments may be concluded with the public authorities in the countries applying for accession to the European Union wit hout a prior entry in the 
third-party file. In such cases the authorising officer shall do his utmost to ensure that the entry 
is made as quickly as possible. The agreements shall provide that communication to the Commission of the payee' s bank account details is 
a condition to be fulfilled before the first payment can be made. In connection with pre-accession aid, individual 
commitments may be concluded with the public authorities in the countries applying for accession to the European Union wit hout a prior entry in the 
third-party file. In such cases the authorising officer shall do his utmost to ensure that the entry is made as quickly as possible. The agreements shall provide that communication to the Commission of the payee's bank account details is a condition to be fulfilled before the first payment can be made.  
Article 65 
Keeping of supporting documents by the 
accounting officer 
(Article 61 of the Financial Regulation) Article 65 
Keeping of supporting documents by the 
accounting officer 
(Article 61 of the Financial Regulation)  
Supporting documents for the accounting system 
and for the preparation of the accounts referred to in Article 121 of the Fina ncial Regulation shall be 
kept for at least five years from the date on which the European Parliament grants discharge for the budgetary year to which the documents relate. Supporting documents for the accounting system 
and for the preparation of  the accounts referred to 
in Article 121 of the Financial Regulation shall be kept for at least five years from the date on which the European Parliament grants discharge for the budgetary year to which the documents relate.  
However, documents relating to operations not 
definitively closed shall be kept for longer, that is 
to say, until the end of th e year following that in 
which the operations are closed. However, documents relating to operations not 
definitively closed shall be kept for longer, that is 
to say, until the end of th e year following that in 
which the operations are closed.  
EN  Error! Unknown document property name.  EN Each institution shall decide in which department 
the supporting documents are to be kept. Each institution shall decide in which department 
the supporting documents are to be kept.  
SECTION 4 
IMPREST ADMINISTRATOR  SECTION 4 
IMPREST ADMINISTRATOR   
Article 66 
Conditions of use of imprest accounts 
(Article 63 of the Financial Regulation) Article 66 
Conditions of use of imprest accounts 
(Article 63 of the Financial Regulation)  
1. Where, owing to the limited amounts 
involved, it is materially  impossible or inefficient 
to carry out payment operations by budgetary procedures, imprest accounts may be set up for the payment of such expenditure. 1. Where, owing to the limited amounts 
involved, it is materially impossible or inefficient to carry out payment operations by budgetary procedures, imprest accounts may be set up for the payment of such expenditure.  
2. The imprest administrator may 
provisionally validate and pay expenditure, on the basis of a detailed framework set out in the instructions from the authorising officer responsible. Those instructions shall specify the rules and conditions under  which the provisional 
validation and payments sh all be carried out and, 
where appropriate, the te rms for signing legal 
commitments within the meaning of Article 94(1)(e). 2. The imprest administrator may 
provisionally validate and pay expenditure, on the basis of a detailed framework set out in the instructions from the authorising officer responsible. Those instruct ions shall specify the 
rules and conditions under  which the provisional 
validation and payments sh all be carried out and, 
where appropriate, the terms for signing legal commitments within the meaning of Article 94(1)(e).  
3. The creation of an imprest account and the 
appointment of an imprest administrator shall be the subject of a decision by the accounting officer, 3. The creation of an imprest account and the 
appointment of an impres t administrator shall be 
the subject of a decision by the accounting officer,  
EN  Error! Unknown document property name.  EN on a duly substantiated proposal from the 
authorising officer responsi ble. That decision shall 
set out the respective responsibilities and obligations of the impres t administrator and the 
authorising officer. on a duly substantiated proposal from the 
authorising officer responsi ble. That decision shall 
set out the respective  responsibilities and 
obligations of the impres t administrator and the 
authorising officer. 
Amendment of the operating terms for an imprest account shall also be the s ubject of a decision by 
the accounting officer on a duly substantiated proposal from the authoris ing officer responsible. Amendment of the operating terms for an imprest 
account shall also be the subject of a decision by the accounting officer on a duly substantiated proposal from the authoris ing officer responsible.  
Article 67 
Conditions governing creation and payment 
(Article 63 of the Financial Regulation) Article 67 
Conditions governing creation and payment 
(Article 63 of the Financial Regulation)  
1. The decision setting up an imprest account 
and appointing an imprest administrator and the decision amending the operating terms for an imprest account shall sp ecify in particular: 1. The decision setting up an imprest account 
and appointing an imprest administrator and the decision amending the operating terms for an imprest account shall specify in particular:  
(a) the maximum amount which may be 
initially provided as an  imprest, and its purpose; (a) the maximum amount which may be 
initially provided as an  imprest, and its purpose;  
(b) whether a bank account or post office giro 
account is to be opened in the name of the 
institution; (b) whether a bank account or post office giro 
account is to be opened in the name of the institution;  
(c) the nature and maximum amount of each 
item of expenditure which may be paid by the imprest administrator to third parties or collected from them; (c) the nature and maximum amount of each 
item of expenditure whic h may be paid by the 
imprest administrator to third parties or collected from them;  
EN  Error! Unknown document property name.  EN (d) the frequency with which supporting 
documents must be produced, the procedure for producing them and the arrangements for transmitting them to the authorising officer for settlement; (d) the frequency with which supporting 
documents must be produced, the procedure for producing them and the arrangements for transmitting them to the authorising officer for settlement;  
(e) the procedure to be followed if the imprest 
has to be replenished; (e) the procedure to be followed if the imprest 
has to be replenished;  
(f) that imprest transactions will be settled by 
the authorising officer by no later than the end of the following month, so that the accounting balance and the bank balance can be reconciled; (f) that imprest transactions will be settled by 
the authorising officer by no later than the end of 
the following month, so that the accounting balance and the bank balance can be reconciled;  
(g) the period of validity of the authorisation 
given to the imprest administrator by the accounting officer; (g) the period of validity of the authorisation 
given to the imprest administrator by the accounting officer;  
(h) the identity of the appointed imprest 
administrator. (h) the identity of the appointed imprest 
administrator.  
2. In proposals for decisions setting up 
imprest accounts the authorising officer responsible shall ensure that: 2. In proposals for decisions setting up 
imprest accounts the authorising officer responsible shall ensure that:  
(a) priority is given to the use of budgetary 
procedures where there is access to the central computerised accounting system; (a) priority is given to the use of budgetary 
procedures where there is  access to the central 
computerised accounting system;  
(b) imprest accounts are used only in 
substantiated cases. (b) imprest accounts are used only in 
substantiated cases.  
EN  Error! Unknown document property name.  EN The maximum amount which may be paid by the 
imprest administration where it is materially impossible or inefficient to carry out payment operations by budgetary procedures shall not exceed EUR 60 000 for each item of expenditure. The maximum amount which may be paid by the 
imprest administration where it is materially impossible or inefficien t to carry out payment 
operations by budgetary procedures shall not exceed EUR 60 000 for each item of expenditure.  
3. The imprest administrator may make 
payments to third parties on the basis and within the limits of: 3. The imprest administrator may make 
payments to third parties on the basis and within the limits of:  
(a) prior budget and legal commitments 
signed by the authorisin g officer responsible; (a) prior budget and legal commitments 
signed by the authorisin g officer responsible;  
(b) the positive residual balance of the imprest 
account, in cash or at the bank. (b) the positive residual balance of the imprest 
account, in cash or at the bank.  
4. Payments from imprest accounts may be 
made by bank credit transfer , including the direct 
debit system referred to in Article 80 of the Financial Regulation, cheque or other means of payment, in accordance with the instructions laid down by the accounting officer. 4. Payments from imprest accounts may be 
made by bank credit transf er, including the direct 
debit system referred to in Article 80 of the Financial Regulation, cheque or other means of payment, including debit cards,
 in accordance 
with the instructions laid down by the accounting 
officer. Modernisation/electronic payment: the 
possibility to use de bit cards linked to 
imprest accounts is introduced. This should facilitate payments in particular in the Union Delegations and Representations, and avoid the risks associated with handling cash. 
5. Payments made shall be followed by formal final validation decisions and/or payment orders signed by the authorising officer responsible. 5. Payments made shall be followed by 
formal final validation decisions and/or payment orders signed by the authorising officer responsible.  
EN  Error! Unknown document property name.  EN Article 68 
Choice of imprest administrators 
(Article 63 of the Financial Regulation) Article 68 
Choice of imprest administrators 
(Article 63 of the Financial Regulation)  
Imprest administrators shall be chosen from 
officials or, should the n eed arise and only in duly 
substantiated cases, from other members of staff. Imprest administrators shall be chosen on the grounds of their knowledge, skills and particular 
qualifications as evidenced by diplomas or by appropriate professional e xperience, or after an 
appropriate trai ning programme. Imprest administrators shall be chosen from 
officials or, should the need arise and only in duly substantiated cases, from other members of staff. Imprest administrators shall be chosen on the grounds of their knowledge, skills and particular 
qualifications as eviden ced by diplomas or by 
appropriate professional e xperience, or after an 
appropriate trai ning programme.  
Article 69 
Endowment of imprest accounts 
(Article 63 of the Financial Regulation) Article 69 
Endowment of imprest accounts 
(Article 63 of the Financial Regulation)  
1. The accounting officer shall make 
payments endowing imprest accounts and shall monitor those accounts from the point of view of opening of bank accounts and delegation of signatures and controls on the spot and in the centralised accounts. The accounting officer shall endow the imprest accounts. Imprests shall be paid to the bank account opened for the imprest. 1. The accounting officer shall make 
payments endowing imprest accounts and shall monitor those accounts from the point of view of opening of bank accounts and delegation of signatures and controls on the spot and in the centralised accounts. The accounting officer shall endow the imprest accounts.  Imprests shall be 
paid to the bank account opened for the imprest.  
Imprest accounts may also be  endowed directly by 
miscellaneous local revenue such as that arising from: Imprest accounts may also be endowed directly by 
miscellaneous local revenue such as that arising from:  
EN  Error! Unknown document property name.  EN (a) sales of equipment; (a) sales of equipment;  
(b) publications; (b) publications;  
(c) miscellaneous repayments; (c) miscellaneous repayments;  
(d) interest. (d) interest.  
The imprest shall be settled, in terms of 
expenditure or miscellaneous or assigned revenue, in accordance with the decision setting up the imprest account referred to in Article 67 and the provisions of the Fina ncial Regulation. The 
amounts in question shall be deducted by the authorising officer when he subsequently replenishes the impres t accounts concerned. The imprest shall be settled, in terms of 
expenditure or miscellane ous or assigned revenue, 
in accordance with the decision setting up the imprest account referred to  in Article 67 and the 
provisions of the Financial Regulation. The amounts in question shall be deducted by the authorising officer when he subsequently replenishes the impres t accounts concerned.  
2. In order, in particular, to avoid any 
exchange losses, the imprest administrator may make transfers between different bank accounts relating to the same imprest. 2. In order, in particular, to avoid any 
exchange losses, the imprest administrator may make transfers between different bank accounts relating to the same imprest.  
Article 70 
Checks by authorising officers and accounting 
officers 
(Article 63 of the Financial Regulation) Article 70 
Checks by authorising officers and accounting 
officers 
(Article 63 of the Financial Regulation)  
1. The imprest administrator shall keep an 
account of the funds at his disposal, in cash and at 
the bank, and of payments made and amounts received, in accordance w ith the rules and on the 1. The imprest administrator shall keep an 
account of the funds at hi s disposal, in cash and at 
the bank, and of payments made and amounts received, in accordance with the rules and on the  
EN  Error! Unknown document property name.  EN instructions given by the accounting officer. 
Statements of that acco unt shall be accessible at 
all times to the authorising officer responsible and a list of transactions shall be established at least once a month and be sent in the following month together with supporting documents by the imprest administrator to the authorising officer responsible for settlement of the imprest operations. instructions given by the accounting officer. 
Statements of that account  shall be accessible at 
all times to the authorising officer responsible and a list of transactions sha ll be established at least 
once a month and be sent in the following month together with supporting documents by the imprest administrator to the authorising officer responsible for settlement of the imprest operations. 
2. The accounting officer shall carry out, or have carried out by a staff member in his own department or in the authorising department 
specially empowered for that purpose, checks, which must as a general rule be effected on the spot and without warning, to verify the existence of the funds allocated to the imprest administrators and the bookkeeping and to check 
that imprest transactions  are settled within the 
time-limit set. The accounting officer shall communicate the findings of those checks to the authorising officer responsible. 2. The accounting officer shall carry out, or 
have carried out by a staff member in his own department or in the authorising department specially empowered for that purpose, checks, which must as a general rule be effected on the spot and without warning, to verify the existence of the funds allocated to the imprest administrators and the bookkeeping and to check that imprest transactions are settled within the time-limit set. The accounting officer shall communicate the findings of those checks to the authorising officer responsible.  
Article 71 
Procurement procedure 
(Article 63 of the Financial Regulation) Article 71 
Procurement procedure 
(Article 63 of the Financial Regulation)  
Payments made from imprest accounts may, 
within the limits laid down in Article 129(4), 
consist simply in the payment of costs against invoices, without prior acceptance of a tender. Payments made from imprest accounts may, 
within the limits laid down in Article 129(4), 
consist simply in the payment of costs against invoices, without prior acceptance of a tender.  
EN  Error! Unknown document property name.  EN CHAPTER  4 
LIABILITY OF THE FINANCIAL ACTORS  CHAPTER  4 
LIABILITY OF THE FINANCIAL ACTORS   
SECTION 1 
GENERAL RULES  SECTION 1 
GENERAL RULES   
Article 72 
Bodies responsible in matters of fraud 
(Articles 60(6) and 65(2) of the Financial 
Regulation) Article 72 
Bodies responsible in matters of fraud 
(Articles 60(6 7) and 65(2) of the Financial 
Regulation)  
The authorities and bodies re ferred to in Articles 
60(6) and 65(2) of the Financial Regulation shall be understood to mean the bodies designated by the Staff Regulations and the decisions of the Community institutions concerning the terms and 
conditions for internal investigations in relation to the prevention of fraud, corruption and any other 
illegal activity detrimental to the Communities' interests. The authorities and bodies re ferred to in Articles 
60(6
7) and 65(2) of the Fi nancial Regulation shall 
be understood to mean the bodies designated by 
the Staff Regulations and the decisions of the Community
 Union  institutions concerning the 
terms and conditions for internal investigations in relation to the prevention of fraud, corruption and 
any other illegal activity detrimental to the Communities' interests.  
EN  Error! Unknown document property name.  EN SECTION 2 
RULES APPLICABLE TO AUTHORISING 
OFFICERS BY DELEGATION AND 
SUBDELEGATION  SECTION 2 
RULES APPLICABLE TO AUTHORISING 
OFFICERS BY DELEGATION AND 
SUBDELEGATION   
Article 73 
Confirmation of instructions 
(Article 66(2) of the Financial Regulation) Article 73 
Confirmation of instructions 
(Article 66(2) of the Financial Regulation)  
1. An authorising officer by delegation or 
subdelegation who receives a binding instruction 
which he considers to be irregular or contrary to 
the principle of sound financial management, in particular because the instruction cannot be 
carried out with the resources allocated to him, shall, in writing, so inform the authority from which he received the delegation or subdelegation. If the instruction is confirmed in writing and that confirmation is receiv ed in good time and is 
sufficiently clear, in that it refers explicitly to the points which the authorising officer by delegation or subdelegation has challenged, the authorising officer may not be held liable; he shall carry out the instruction, unless it is  manifestly illegal or 
constitutes a breach of the relevant safety standards. 1. An authorising officer by delegation or 
subdelegation who receives  a binding instruction 
which he considers to be irregular or contrary to 
the principle of sound financial management, in particular because the instruction cannot be carried out with the resources allocated to him, shall, in writing, so inform the authority from which he received the delegation or subdelegation. If the instru ction is confirmed in 
writing and that confirmation is received in good time and is sufficiently clear, in that it refers explicitly to the points which the authorising officer by delegation or subdelegation has challenged, the authorising officer may not be held liable; he shall carry out the instruction, unless it is manifestly ill egal or constitutes a 
breach of the relevant safety standards.  
2. Paragraph 1 shall also apply in cases 
where an authorising officer learns, in the course 2. Paragraph 1 shall also apply in cases 
where an authorising officer learns, in the course  
EN  Error! Unknown document property name.  EN of acting on a binding instruction, that the 
circumstances of the case may give rise to an irregular situation. of acting on a binding instruction, that the 
circumstances of the case may give rise to an irregular situation. 
3. Any instructions confirmed in the circumstances described in Article 66(2) of the Financial Regulation shall be recorded by the authorising officer by de legation responsible and 
mentioned in his a nnual activity report. 3. Any instructions confirmed in the 
circumstances described in Article 66(2) of the Financial Regulation shall be recorded by the authorising officer by de legation responsible and 
mentioned in his a nnual activity report.  
Article 74 
Financial irregularities 
(Articles 60(6) and 66(4) of the Financial 
Regulation) Article 74 
Financial irregularities 
(Articles 60(6) and 66(4) of the Financial 
Regulation)  
Without prejudice to th e powers of OLAF, the 
Panel referred to in Articl e 43a (hereinafter “the 
panel”) shall be competent in respect of any infringement of a provision of the Financial Regulation or of a provisi on relating to financial 
management or the checking of operations resulting from an act or omission of a member of staff. Without prejudice to th e powers of OLAF, the 
Panel referred to in Articl e 43a (hereinafter “the 
panel”) shall be compet ent in respect of any 
infringement of a provision of the Financial Regulation or of a provis ion relating to financial 
management or the checking of operations resulting from an act or omission of a member of 
staff.  
Article 75 
Financial irregularities panel 
(Articles 60(6) and 66(4) of the Financial 
Regulation) Article 75 
Financial irregularities panel 
(Articles 60(6 7) and 66(4) of the Financial 
Regulation)  
1. Cases of financial irregularities as referred 
to in Article 74 of this Regulation shall be referred 1. Cases of financial irre gularities as referred 
to in Article 74 of this Regulation shall be referred  
EN  Error! Unknown document property name.  EN to the Panel by the appointing authority for an 
opinion referred to in th e second subparagraph of 
Article 66(4) of the Financial Regulation. to the Panel by the appointing authority for an 
opinion referred to in th e second subparagraph of 
Article 66(4) of the Financial Regulation. 
An authorising officer by delegation may refer a 
matter to the panel if he considers that a financial irregularity has occurre d. The Panel shall deliver 
an opinion evaluating whethe r irregularities within 
the meaning of Article 74 have occurred, how serious they are and what their consequences might be. Where the Panel' s analysis suggests that 
the case referred to it is a matter for OLAF, it shall transmit the file to the appointing authority without delay and shall inform OLAF at once. An authorising officer by delegation may refer a 
matter to the panel if he considers that a financial irregularity has occurred. The Panel shall deliver an opinion evaluating wh ether irregularities 
within the meaning of Ar ticle 74 have occurred, 
how serious they are and what their consequences might be. Where the Panel' s analysis suggests that 
the case referred to it is a matter for OLAF, it shall transmit the file to the appointing authority without delay and shall inform OLAF at once.  
When the panel is directly  informed of a matter by 
a member of staff in accordance with Article 
60(6) of the Financial Re gulation, it shall transmit 
the file to the appointing authority and shall inform the member of staff accordingly. The appointing authority ma y request the panel’s 
opinion on the case. When the panel is directly informed of a matter by 
a member of staff in accordance with Article 60(6
7) of the Financial Regulation, it shall 
transmit the file to the appointing authority and 
shall inform the member of staff accordingly. The appointing authority ma y request the panel’s 
opinion on the case.  
2. The institution or, in the case of a joint 
panel, the participating institutions shall, depending on its or their own internal organisation, specify the operating arrangements of the panel and its composition,  which shall include an external participant with the required qualifications and expertise. 2. The institution or, in the case of a joint 
panel, the participating institutions shall, depending on its or their own internal organisation, specify the operating arrangements of the panel and its composition,  which shall include an external participant with the required qualifications and expertise.  
EN  Error! Unknown document property name.  EN CHAPTER  5 
REVENUE OPERATIONS  CHAPTER  5 
REVENUE OPERATIONS   
SECTION 1 
OWN RESOURCES  SECTION 1 
OWN RESOURCES   
Article 76 
Rules applying to own resources 
(Article 69 of the Financial Regulation) Article 76 
Rules applying to own resources 
(Article 69 of the Financial Regulation)  
The authorising officer shall draw up a schedule 
indicating when the own resources defined in the Decision on the system of the European Communities' own resources will be made available to the Commission. The authorising officer shall draw up a schedule 
indicating when the own resources defined in the Decision on the system of the European Communities' own resources will be made available to the Commission.  
Own resources shall be established and recovered 
in accordance with the rules adopted pursuant to the Decision referred to in the first paragraph. Own resources shall be established and recovered 
in accordance with the rules adopted pursuant to the Decision referred to in the first paragraph.  
SECTION 2 
ESTIMATE OF AMOUNTS RECEIVABLE  SECTION 2 
ESTIMATE OF AMOUNTS RECEIVABLE   
Article 77 
Estimate of amounts receivable 
Article 70 of the Fi nancial Regulation) Article 77 
Estimate of amounts receivable 
Article 70 of the Fi nancial Regulation)  
1. Estimates of amounts receiv able shall 1. Estimates of amounts receivable shall  
EN  Error! Unknown document property name.  EN specify the type of revenue and the budget item to 
which they are to be booked and, as far as possible, the particulars of the debtor and the estimated amount. specify the type of revenue and the budget item to 
which they are to be booked and, as far as possible, the particulars of the debtor and the 
estimated amount. 
When drawing up an estimate of amounts receivable, the authorising officer responsible shall check in particular that: When drawing up an estimate of amounts 
receivable, the authorising officer responsible shall check in particular that:  
(a) the revenue is booke d to the correct budget 
item; (a) the revenue is booked to the correct budget 
item;  
(b) the estimate is in order and complies with 
the provisions applicable and the principle of sound financial management. (b) the estimate is in order and complies with 
the provisions applicable  and the principle of 
sound financial management.  
2. Subject to Articles 160 (1a) and 161(2) of 
the Financial Regulation, an estimate of amounts receivable shall not have  the effect of making 
commitment appropriations available. In the cases referred to in Article 18 of the Financial Regulation, appropriations may be made available 
only after the sums due have actually been recovered by the Communities. 2. Subject to Articles 160 (1a) and 161(2) of 
the Financial Regulation and Article 10(2) of the 
present Regulation , an estimate of amounts 
receivable shall not have  the effect of making 
commitment appropriations available. In the cases 
referred to in Article  18 of the Financial 
Regulation, appropriations may be made available 
only after the sums due  have actually been 
recovered by the Communities.  
EN  Error! Unknown document property name.  EN SECTION 3 
ESTABLISHMENT OF AMOUNTS 
RECEIVABLE  SECTION 3 
ESTABLISHMENT OF AMOUNTS 
RECEIVABLE   
Article 78 
Procedure 
(Article 71 of the Financial Regulation) Article 78 
Procedure 
(Article 71 of the Financial Regulation)  
1. The establishment by the authorising 
officer responsible of an amount receivable shall constitute recognition of the right of the Communities in respect of a debtor and establishment of entitlement to demand that the debtor pay the debt. 1. The establishment by the authorising 
officer responsible of an amount receivable shall constitute recognition of the right of the Communities in respect of a debtor and establishment of entitlement to demand that the debtor pay the debt.  
2. The recovery order shall be the operation 
by which the authorising officer responsible instructs the accounting officer to recover the amount established. 2. The recovery order shall be the operation 
by which the authorising officer responsible instructs the acc ounting officer to recover the 
amount established.  
3. The debit note shall be to inform the 
debtor that: 3. The debit note shall be to inform the 
debtor that:  
(a) the Communities have established the 
amount receivable; (a) the Communities have established the 
amount receivable;  
(b) if payment of the debt is made before the 
deadline, no default interest will be due; (b) if payment of the de bt is made before the 
deadline, no default interest will be due;  
(c) failing payment by the deadline referred to (c) failing reimbursement  payment  by the Update: the word reimbursement is more 
EN  Error! Unknown document property name.  EN in point (b) the debt shall bear interest at the rate 
referred to in Article 86, without any pr ejudice to 
any specific regulations applicable; deadline referred to in point (b) the debt shall bear 
interest at the rate referred to in Article 86, without any prejudice to any specific regulations 
applicable; accurate in this context. 
(d) failing payment by the deadline referred to 
in point (b) the institution shall effect recovery by either by offsetting or by enforcement of any guarantee lodged in advance; (d) failing reimbursement
 payment  by the 
deadline referred to in poi nt (b) the institution 
shall effect recovery by either by offsetting or by enforcement of any guarantee lodged in advance; Update: the word reimbursement is more 
accurate in this context. 
(e) the accounting officer may effect recovery by offsetting before the deadline referred to in point b), where it is n ecessary to protect the 
Communities’ financial interests when he has justified grounds to believ e that the amount due to 
the Commission would be lost, after the debtor has been informed of the reasons and date of the recovery by offsetting; (e) the accounting officer may effect recovery 
by offsetting before the deadline referred to in point b), where it is n ecessary to protect the 
Communities’ financial interests when he has justified grounds to believ e that the amount due to 
the Commission would be lost, after the debtor has been informed of the reasons and date of the recovery by offsetting;  
(f) if, after all those steps have been taken, the 
amount has not been recovered in full, the institution shall effect recovery by enforcement of a decision secured either in accordance with Article 72(2) of the Financial Regulation or by legal action. (f) if, after all those steps have been taken, the 
amount has not been recovered in full, the institution shall effect recovery by enforcement of a decision secured either in accordance with Article 72(2) of the Financial Regulation or by legal action.  
The authorising officer shall send the debit note to 
the debtor with a copy to the accounting officer. The authorising officer shall send the debit note to 
the debtor with a copy to the accounting officer . 
The debit note shall be printed out and sent to 
the debtor by the Authorising officer. The 
Accounting Officer shall be informed of that Update of the provision: the debit note 
should naturally still be sent to the debtor but 
no longer to the Accounting officer, who can obtain a copy directly from the central 
accounting system (ABAC). This 
modification was recommended by the 
EN  Error! Unknown document property name.  EN dispatch through the Central Financial 
Information System.  Internal Audit Service of the Commission in 
its October 2008 report on recovery under direct management, and endorsed in the Commission’s internal provisions on recovery  with the adoption of the Internal Rules for 2009. 
Article 79 
Establishment of amounts receivable 
(Article 71 of the Financial Regulation) Article 79 
Establishment of amounts receivable 
(Article 71 of the Financial Regulation)  
To establish an amount receivable the authorising 
officer responsible shall ensure that: To establish an amount receivable the authorising 
officer responsible shall ensure that:  
(a) the receivable is certain and not subject to 
any condition; (a) the receivable is certain and , meaning 
that it is not subject to any condition; This modification aims at ensuring coherence 
with the French version ("du caractère 
certaine de la créance, qui ne doit pas être 
affectée d'une condition "). Indeed, the current 
English provision suggests that two conditions should be fulfilled, i.e. that the debt is not challenged and
 that no condition 
exist to establish the receivable. As a consequence, any challenge by the debtor can prevent offsetting. On the contrary, in accordance with the French version, the Accounting officer can recover by offsetting as soon as the debt is not subject to any condition, whether it is challenged or not (CJ Decision of 6.11.2008 in the case C-203/07 P). 
(b) the receivable is of fixed amount, (b) the receivab le is of fixed amount,  
EN  Error! Unknown document property name.  EN expressed precisely in cash terms; expressed precisely in cash terms; 
(c) the receivable is due  and is not subject to 
any payment time; (c) the receivable is due and is not subject to 
any payment time;  
(d) the particulars of the debtor are correct; (d ) the particulars of the debtor are correct;  
(e) the amount to be recovered is booked to 
the correct budget item; (e) the amount to be recovered is booked to 
the correct budget item;  
(f) the supporting documents are in order; and (f ) the supporting documents are in order; and  
(g) the principle of sound financial 
management is complied with, in particular with regard to the criteria referred to in point (a) of Article 87(1). (g) the principle of sound financial 
management is complied with, in particular with regard to the criteria referred to in point (a) of Article 87(1).  
Article 80 
Supporting documents for the establishment of 
amounts receivable 
(Article 71 of the Financial Regulation) Article 80 
Supporting documents for the establishment of 
amounts receivable 
(Article 71 of the Financial Regulation)  
1. The establishment of an amount receivable 
shall be based on supporting documents certifying the Communities' entitlement. 1. The establishment of an amount receivable 
shall be based on supporting documents certifying the Communities' entitlement.  
2. Before establishing an amount receivable 
the authorising officer responsible shall personally check the supporting documents or, on his own responsibility, shall ascertain that this has been done. 2. Before establishing an amount receivable 
the authorising officer re sponsible sha ll personally 
check the supporting documents or, on his own responsibility, shall ascert ain that this has been 
done.  
EN  Error! Unknown document property name.  EN 3. The supporting documents shall be kept by 
the authorising officer in accordance with Articles 
48 and 49. 3. The supporting documents shall be kept by 
the authorising officer in  accordance with Articles 
48 and 49.  
SECTION 4 
AUTHORISATION OF RECOVERY  SECTION 4 
AUTHORISATION OF RECOVERY   
Article 81 
Establishment of the recovery order 
(Article 72 of the Financial Regulation) Article 81 
Establishment of the recovery order 
(Article 72 of the Financial Regulation)  
1. The recovery order shall specify: 1. The recovery order shall specify:  
(a) the financial year to which the revenue is 
to be booked; (a) the financial year to which the revenue is 
to be booked;  
(b) the references of the act or legal 
commitment which is the source of the debt and gives rise to the entitlement to recovery; (b) the references of the act or legal 
commitment which is the source of the debt and 
gives rise to the entitlement to recovery;  
(c) the budget article and any other 
subdivision that may apply, including, where appropriate, the referen ces of the corresponding 
budget commitment; (c) the budget article and any other 
subdivision that may apply, including, where appropriate, the referen ces of the corresponding 
budget commitment;  
d) the amount to be recovered, expressed in 
euro; d) the amount to be recovered, expressed in 
euro;  
(e) the name and address of the debtor; (e ) the name and address of the debtor;  
EN  Error! Unknown document property name.  EN (f) the deadline referred to in Article 78(3)(b); (f ) the deadline referred to in Article 78(3)(b);  
(g) the possible method of  recovery, including 
in particular recovery by offsetting or enforcement of any guarantee lodged. (g) the possible method of recovery, including 
in particular recovery by  offsetting or enforcement 
of any guarantee lodged.  
2. The recovery order shall be dated and 
signed by the authorising officer responsible, then sent to the accounting officer. 2. The recovery order shall be dated and 
signed by the authorising o fficer responsible, then 
sent to the accounting officer.  
3. The accounting officer of each institution 
shall keep a list of amo unts due to be recovered. 
Community entitlements shall be grouped in the 
list according to the date of issue of the recovery order. He shall transfer this list to the accounting officer of the Commission. 3. The accounting officer of each institution 
shall keep a list of amount s due to be recovered. 
Community
 Union  entitlements shall be grouped 
in the list according to the date of issue of the recovery order. He shall transfer this list to the accounting officer of the Commission.  
The accounting officer of the Commission shall 
prepare a consolidated list showing the amount 
due per institution and per date of issue of the recovery order. The list shall be added to the Commission's Report on budgetary and financial management. The accounting officer of the Commission shall 
prepare a consolidated list showing the amount due per institution and per date of issue of the recovery order. The list shall be added to the Commission's Report on budge tary and financial 
management.  
4. The Commission shall establish a list of 
Community entitlements stating the names of the debtors and the amount of the debt, where the debtor has been ordered to pay by a Court decision that has the force of res judicata  and 
where no or no significant payment has been made for one year following its pronouncement. The list shall be published, taking account of the 4. The Commission shall establish a list of 
Community
 Union  entitlements stating the names 
of the debtors and the amount of the debt, where the debtor has been ordered to reimburse
 pay by 
a Court decision that has the force of res judicata  
and where no or no significant reimbursement  
payment  has been made for one year following its 
pronouncement. The list sh all be published, taking Update: the word reimbursement is more 
accurate in this context.  
EN  Error! Unknown document property name.  EN relevant legislation on data protection. ac count of the relevant legislation on data 
protection. 
SECTION 5 
RECOVERY  SECTION 5 
RECOVERY   
Article 82 
Collection formalities 
(Article 73 of the Financial Regulation) Article 82 
Collection formalities 
(Article 73 of the Financial Regulation)  
1. Upon the recovery of an amount 
receivable, the accounting officer shall make an entry in the accounts and shall inform the authorising officer responsible. 1. Upon the recovery of an amount 
receivable, the accounting officer shall make an entry in the accounts and shall inform the authorising officer responsible.  
2. A receipt shall be issued in respect of any 
cash payments made to the accounting officer or imprest administrator. 2. A receipt shall be issued in respect of any 
cash payments made to the accounting officer or imprest administrator.  
 3. Partial reimbursement by a debtor subject to 
several recovery orders shall first be posted on 
the oldest entitlement unless otherwise 
specified by the debtor.  
Any partial payments shall first cover the 
interest.  
 
 Il faut encadrer les situations de 
remboursement partiel en y déplaçant l'article 86 §4 et en en visageant le cas d’un 
débiteur qui fait l'objet de plusieurs ordres de recouvrement émis à sa charge (imputation sur la créance la plus ancienne d'abord). 
Cette disposition est conforme aux principes 
du droit généralement reconnus et contenus dans les codes civils des Pays européens. 
EN  Error! Unknown document property name.  EN   
Article 83 
Recovery by offsetting 
(Article 73 of the Financial Regulation) Article 83 
Recovery by offsetting 
(Article 73 of the Financial Regulation)  
1. Where the debtor has a claim on the 
Communities that is certain, of a fixed amount and due, relating to a sum established by a payment order, the accounting officer shall, following the deadline referred to in Article 78(3)(b) recover established amounts receivable by offsetting. 1. Where the debtor has a claim on the 
Communities that is certain as defined in point 
(a) of Article 79 , of a fixed amount and due, 
relating to a sum established by a payment order, the accounting officer shall, following the deadline referred to in Article 78(3)(b) recover established amounts receivable by offsetting.  
In exceptional circumstances, where it is 
necessary to safeguard the financial interests of the Communities, when the accounting officer has justified grounds to believ e that the amount due to 
the Communities would be lost, the accounting officer shall recover by offsetting before the deadline referred to in Article 78(3) (b). In exceptional circumstances, where it is 
necessary to safeguard the financial interests of the Communities, when the accounting officer has justified grounds to believ e that the amount due to 
the Communities would be lost, the accounting officer shall recover by offsetting before the deadline referred to in Article 78(3) (b).  
 The Accounting officer shall recover by 
offsetting before the de adline referred to in 
Article 78(3) (b) when the debtor agrees.  
 The Accounting officer should be able to 
recover by offsetting before the deadline when the debtor agrees. 
 
2. Before proceeding with any recovery in 
accordance with paragr aph 1, the accounting 
officer shall consult the authorising officer 2. Before proceeding with any recovery in 
accordance with para graph 1, the accounting 
officer shall consult the authorising officer  
EN  Error! Unknown document property name.  EN responsible and inform the debtors concerned. responsible and inform the debtors concerned. 
Where the debtor is a national authority or one of 
its administrative entities, the accounting officer shall also inform the Member State concerned at least 10 working days in advance of his intention 
to resort to recovery by offsetting. However, in agreement with the Member State or administrative entity c oncerned, the accounting 
officer may proceed with the recovery by offsetting before the deadline has passed.  Where the debtor is a national authority or one of 
its administrative entities, the accounting officer shall also inform the Member State concerned at least 10 working days in advance of his intention to resort to recovery by offsetting. However, in agreement with the Member State or administrative entity concerned, the accounting officer may proceed with the recovery by offsetting before the deadline has passed.  
  
3. The offsetting referred to in paragraph 1 
shall have the same effect as a payment and discharge the Communities for the amount of the debt and, where appropriate of the interest due. 3. The offsetting referred to in paragraph 1 
shall have the same effect as a payment and discharge the Communities for the amount of the debt and, where appropriate of the interest due.  
Article 84 
Recovery procedure failing voluntary payment 
(Articles 72 and 73 of the Financial Regulation) Article 84 
Recovery procedure failing voluntary payment 
(Articles 72 and 73 of the Financial Regulation)  
1. Without prejudice to Article 83, if the full 
amount has not been rec overed by the deadline 
referred to in Article 78(3)(b) and specified in the debit note, the accounting officer shall inform the authorising officer responsible and shall without delay launch the procedure for effecting recovery by any means offered by the law, including, where appropriate, by enforcement of any guarantee 1. Without prejudice to Article 83, if the full 
amount has not been rec overed by the deadline 
referred to in Article 78(3)(b) and specified in the debit note, the accounting officer shall inform the authorising officer responsible and shall without delay launch the procedure for effecting recovery 
by any means offered by the law, including, where appropriate, by enforcement of any guarantee  
EN  Error! Unknown document property name.  EN lodged in advance. lodged in advance. 
2. Without prejudice to Article 83, where the 
recovery method referred to in paragraph 1 cannot be used and the debtor has failed to pay in 
response to the letter of formal notice sent by the 
accounting officer, the accounting officer shall enforce a recovery decision secured either in accordance with Article 72( 2) of the Financial 
Regulation or by legal action. 2. Without prejudice to Article 83, where the 
recovery method referred to in paragraph 1 cannot be used and the debtor has failed to pay in response to the letter of formal notice sent by the 
accounting officer, the accounting officer shall enforce a recovery decision secured either in accordance with Article 72(2) of the Financial Regulation or by legal action.  
Article 85 
Additional time for payment 
(Article 73 of the Financial Regulation) Article 85 
Additional time for payment 
(Article 73 of the Financial Regulation)  
The accounting officer, in collaboration with the 
authorising officer responsible, may allow additional time for payment only at the written request of the debtor, with due indication of the reasons, and provided that the following two conditions are fulfilled: The accounting officer, in collaboration with the 
authorising officer responsible, may allow additional time for payment only at the written request of the debtor, w ith due indication of the 
reasons, and provided that the following two conditions are fulfilled:  
(a) the debtor undertakes to pay interest at the 
rate specified in Article 86 for the entire additional period allowe d, starting from the 
deadline referred to in Article 78(3)(b); (a) the debtor undertakes to pay interest at the 
rate specified in Article 86 for the entire additional period allowed, starting from the deadline referred to in Article 78(3)(b);  
b) in order to safeguard the Community's 
rights, the debtor  lodges a financial guarantee 
covering the debt outstandi ng in both the principal 
sum and the interest, which is accepted by the institution's accounting officer. b) in order to safeguard the Community
 
Union 's rights, the debtor lodges a financial 
guarantee covering the de bt outstanding in both 
the principal sum and the interest, which is accepted by the institution's accounting officer.  
EN  Error! Unknown document property name.  EN The guarantee referred to in point (b) of the first 
paragraph may be replaced by a joint and several guarantee by a third party approved by the institution's accounting officer. The guarantee referred to in point (b) of the first 
paragraph may be replaced by a joint and several guarantee by a third party approved by the institution's accounting officer.  
 In exceptional circumstances, the accounting 
officer may refrain from requiring a guarantee 
as referred to in point (b) of the first 
paragraph when, on the basis of his 
assessment, this requirements would impede 
the collection of the amount established as 
receivable.  Possibility to refrain from requiring a 
guarantee where this requirement would impede the collection of the amount due.  
Article 85a 
Recovery of fines, periodic penalty payments and 
other penalties 
(Articles 73 and 74 of the Financial Regulation) Article 85a 
Recovery of fines,  or periodic  other penalties 
(Articles 73 and 74 of the Financial Regulation)  
1. Where an action is brought before a 
Community court against a Commission decision imposing a fine, periodic penalty payment or other penalty under the EC Treaty or Euratom Treaty and until such time as all legal remedies have been exhausted, the accounting officer shall provisionally collect th e amounts concerned from 
the debtor or request hi m to provide a financial 
guarantee. The guarantee requested shall be independent of the obligation to pay the fine, periodic penalty payment or other penalty and shall be enforceable upon first call. It shall cover the claim as to principal and the interest due as 1. Where an action is brought before a 
Community
 Union  court against a Commission 
decision imposing a fine, periodic  or other 
penalty ies under the Treaty on the Functioning of 
the European Union Treaty or Euratom Treaty and until such time as all legal remedies have been exhausted, the accounting officer
 debtor  shall 
either  provisionally collect  pay the amounts 
concerned from the debtor  on the bank account 
designated by the accounting officer  or request 
him to  provide a financial guarantee acceptable 
to the accounting officer . The guarantee 
requested  shall be independent of the obligation to  
EN  Error! Unknown document property name.  EN specified in Article 86(5). pay the fine, periodic  or penalty payment or other 
penalty ies and shall be enfor ceable upon first call. 
It shall cover the claim as to principal and the interest due as specifi ed in Article 86(5). 
 2. The Commission shall secure the 
provisionally cashed amounts by having them 
invested in financial a ssets thus ensuring the 
security and liquidity of the monies whilst also 
yielding financial remuneration.  In order  to take into  account the 
communication concerni ng the reduction in 
the risks of management of fines provisionally cashed in the competition area (SEC(2009)749). 
2. After all legal remedies have been exhausted, the provisi onally collected amounts 
and the interest they have yielded shall be entered into the budget or repaid to the debtor. In the event of a financial guara ntee, the latter shall be 
enforced or released. 2.
 After all  legal remedies have been 
exhausted, the provisiona lly collected amounts 
and the interest they have yielded shall be entered 
into the budget or repaid to the debtor. In the 
event of a financial guarantee, the latter shall be 
enforced or released  
3.  After the exhaustion of all legal 
remedies and where the fine or penalty has 
been confirmed:  
(a) the provisionally collected amounts and 
the interest and other amounts they have 
yielded shall be entered into the budget in 
accordance with Article 74 of the Financial 
Regulation at the late st during the financial 
year following the year in which all legal 
remedies have been exhausted, or;  
(b) where a financial guarantee has been 
lodged, the latter shall be enforced and the This provision should be introduced in order 
to take into account the communication concerning the reduction in the risks of management of fines provisionally cashed in the competition area (SEC(2009)749).  
EN  Error! Unknown document property name.  EN corresponding amounts entered in the 
budget, or;  
(c) where the amount of the fine or of the 
penalty has been increased by the Court, 
points (a) and (b) shall apply up to the 
amounts of the decision of the Commission 
and the accounting offi cer shall collect the 
amount corresponding to the increase, 
which will be entered into the budget.  
 4.   After all legal remedies have been 
exhausted and where the fine or penalty has 
been cancelled or reduced:  
(a) the amounts unduly collected together 
with the interest yielded shall be repaid to 
the third party concerned, or;  
 (b) where a financial guarantee has been 
lodged, the latter shall be released 
accordingly.   
Article 85b 
Rules for limitation periods  
(Article 73a of the Financial Regulation) Article 85b 
Rules for limitation periods  
(Article 73a of the Financial Regulation)  
1. The limitation period for entitlements of 
the Communities in respect of third parties shall begin to run on the expiry of the deadline communicated to the debtor  in the debit note as 1. The limitation period for entitlements of 
the Communities in respect of third parties shall begin to run on the expiry of the deadline communicated to the debtor  in the debit note as  
EN  Error! Unknown document property name.  EN specified in Article 78(3)(b). specified in Article 78(3)(b). 
The limitation period for entitlements of third 
parties in respect of the Communities shall begin to run on the date on which the payment of the third party's entitlement is due according to the corresponding legal commitment. The limitation period for entitlements of third 
parties in respect of the Communities shall begin to run on the date on which the payment of the third party's entitlement is due according to the corresponding legal commitment.  
2. The limitation period for entitlements of 
the Communities in respect of third parties shall be interrupted by any act of an institution, or a Member State acting at the request of an institution, notified to th e third party and aiming 
at recovering the debt. 2. The limitation period for entitlements of 
the Communities in respect of third parties shall be interrupted by any act of an institution, or a Member State acting at the request of an institution, notified to th e third party and aiming 
at recovering the debt.  
The limitation period for entitlements of third 
parties in respect of th e Communities shall be 
interrupted by any act no tified to the Communities 
by their creditors or on be half of their creditors 
aiming at recovering the debt. The limitation period for entitlements of third 
parties in respect of the Communities shall be interrupted by any act notified to the Communities by their creditors or on be half of their creditors 
aiming at recovering the debt.  
3. A new limitation period of five years shall 
begin to run on the day following the interruptions referred to in paragraph 2. 3. A new limitation period of five years shall 
begin to run on the day following the interruptions referred to in paragraph 2.  
4. Any legal action relating to an amount 
receivable as referred to in paragraph 1, including actions brought before a c ourt which later declares 
itself not to have jurisd iction, shall interrupt the 
limitation period. The new limitation period of five years shall not begin until a judgment having 
the force of res judicata  is given or there is an 4. Any legal action relating to an amount 
receivable as referred to in paragraph 1, including 
actions brought before a c ourt which later declares 
itself not to have jurisd iction, shall interrupt the 
limitation period. The new limitation period of five years shall not begin until a judgment having 
the force of res judicata  is given or there is an  
EN  Error! Unknown document property name.  EN extrajudicial settlement between the same parties 
on the same action. extrajudicial settlement between the same parties 
on the same action. 
5. Where the accounting officer allows the debtor additional time for payment in accordance with Article 85, this shall be considered as an interruption of the limitation period. The new limitation period of 5 year s shall begin to run on 
the day following the expiry of the extended time for payment. 5. Where the accounting officer allows the 
debtor additional time for payment in accordance with Article 85, this sha ll be considered as an 
interruption of the limitation period. The new limitation period of 5 year s shall begin to run on 
the day following the expiry of the extended time for payment.  
6. Entitlements shall not be recovered after 
the expiry of the limitation period, as established in paragraphs 1 to 5. 6. Entitlements shall not be recovered after 
the expiry of the limitation period, as established in paragraphs 1 to 5.  
Article 86 
Default interest 
(Article 71(4) of the Financial Regulation) Article 86 
Default interest 
(Article 71(4) of the Financial Regulation)  
1. Without prejudice to any specific 
provisions deriving from th e application of sector-
specific regulations, any amount receivable not repaid on the deadline referred to in Article 78(3)(b) shall bear interest in accordance with paragraphs 2 and 3. 1. Without prejudice to any specific 
provisions deriving from the application of sector-specific regulations, any amount receivable not repaid on the deadline referred to in Article 78(3)(b) shall bear interest in accordance with paragraphs 2 and 3.  
2. The interest rate for amounts receivable 
not repaid on the deadline referred to in Article 78(3)(b) shall be the rate applied by the European 
Central Bank to its pr incipal refinancing 
operations, as published in the C series of the 2. The interest rate for amounts receivable 
not repaid on the deadline referred to in Article 78(3)(b) shall be the rate applied by the European 
Central Bank to its principal refinancing operations, as published in the C series of the  
EN  Error! Unknown document property name.  EN Official Journal of the European Union , in force 
on the first calendar day of the month in which the deadline falls, increased by: Official Journal of the European Union , in force 
on the first calendar day of the month in which the deadline falls, increased by: 
(a) seven percentage points where the obligating event is a public supply and service contract referred to in Title V; (a) seven percentage points where the 
obligating event is a p ublic supply and service 
contract referred to in Title V;  
(b) three and a half percentage points in all 
other cases. (b) three and a half percentage points in all 
other cases.  
3. Interest shall be calculated from the 
calendar day following the d eadline referred to in 
Article 78(3)(b) and specified in the debit note up to the calendar day on which the debt is repaid in full. 3. Interest shall be calculated from the 
calendar day following the deadline referred to in 
Article 78(3)(b) and specified in the debit note up to the calendar day on which the debt is repaid in full. 
The recovery order corresponding to the 
amount of the default interest shall be issued 
when  this interest is actually received  Amounts receivable concerning late interests 
are certain only when the interests concerned 
are collected, because these amounts vary on a daily basis. 
 
4. Any partial payments shall first cover the 
interest determined in accordance with paragraphs 2 and 3. 4. Any partial payments shall first cover the 
interest determined in accordance wit h paragraphs 
2 and 3.  
 Paragraph 4 is moved to Article 82.  
 
 
5. In the case of fines, where the debtor 
provides a financial guarantee which is accepted by the accounting officer in lieu of provisional payment, the interest rate applicable from the deadline referred to in Arti cle 78(3)(b) shall be the 5. In the case of fines, where the debtor 
provides a financial guarantee which is accepted by the accounting officer in lieu
 instead of 
provisiona l payment, the interest rate applicable 
from the deadline referred to in Article 78(3)(b) It is proposed to delete the word 
"provisional" so that the ECB rate of 1.5% can be used for financial guarantees related to the payment of a fine.  
EN  Error! Unknown document property name.  EN rate referred to in paragraph 2 increased by one 
and a half percentage points. shall be the rate referred to in paragraph 2 as in 
force on the first day of the month in which the 
decision imposing a fine has been adopted  and 
increased only by one and a half percentage 
points. IR should be update in accordance with the 
practice that any decision on a fine sets as well, as the interest rate, the first day of the month in which the decision was taken. 
Article 87 
Waiving of recovery of an established amount 
receivable 
(Article 73 of the Financial Regulation) Article 87 
Waiving of recovery of an established amount 
receivable 
(Article 73 of the Financial Regulation)  
1. The authorising officer responsible may 
waive recovery of all or part of an established amount receivable only in the following cases: 1. The authorising officer responsible may 
waive recovery of all or part of an established amount receivable only in the following cases:  
(a) where the foreseeable cost of recovery 
would exceed the amount to  be recovered and the 
waiver would not harm the Community's image; (a) where the foreseeable cost of recovery 
would exceed the amount to be recovered and the waiver would not harm the Community
 Union 's 
image;  
(b) where the amount receivable cannot be 
recovered in view of its age or the insolvency of 
the debtor; (b) where the amount receivable cannot be 
recovered in view of its age or the insolvency of 
the debtor;  
(c) where recovery is inconsistent with the 
principle of proportionality. (c) where recovery is inconsistent with the 
principle of proportionality.  
2. In the case referred to in point (c) of 
paragraph 1, the authorising officer responsible shall act in accordance with predetermined procedures established w ithin each institution and 2. In the case referred to in point (c) of 
paragraph 1, the authorising officer responsible shall act in accordance with predetermined procedures established w ithin each institution and  
EN  Error! Unknown document property name.  EN shall apply the following criteria which are 
compulsory and applicable  in all circumstances: shall apply the followi ng criteria which are 
compulsory and applicable in all circumstances: 
(a) the facts, having regard to the gravity of the irregularity giving rise to the establishment of the amount receivable (f raud, repeat offence, 
intent, diligence, good faith, manifest error); (a) the facts, having regard to the gravity of 
the irregularity giving rise to the establishment of the amount receivable (fraud, repeat offence, intent, diligence, good faith, manifest error);  
(b) the impact that waiving recovery would 
have on the operation of the Communities and their financial interests (amount involved, risk of 
setting a precedent, underm ining of the authority 
of the law). (b) the impact that waiving recovery would 
have on the operation of the Communities and their financial interests (amount involved, risk of 
setting a precedent, undermining of the authority of the law).  
Depending on the circumstances of the case, the 
authorising officer responsible may also have to take the following additi onal criteria in to account: Depending on the circumstances of the case, the 
authorising officer responsible may also have to take the following additi onal criteria in to account:  
(a) any distortion of co mpetition that would 
be caused by the waiving of recovery; (a) any distortion of co mpetition that would 
be caused by the waiving of recovery;  
(b) the economic and social damage that 
would be caused were the debt to be recovered in full. (b) the economic and social damage that 
would be caused were the debt to be recovered in full.  
3. The waiver decision referred to in Article 
73(2) of the Financial Regulation shall be substantiated and shall refer to the diligence 
exercised to secure recove ry and the points of law 
and fact on which the waiver is based. The authorising officer responsible shall waive recovery in accordance with Article 81. 3. The waiver decision referred to in Article 
73(2) of the Financial Regulation shall be substantiated and shall refer to the diligence exercised to secure recove ry and the points of law 
and fact on which the waiver is based. The authorising officer responsible shall waive recovery in accordance with Article 81.  
EN  Error! Unknown document property name.  EN 4. The waiving of recovery of an established 
amount receivable may not be delegated by the institution where the amount to be waived: 4. The waiving of recovery of an established 
amount receivable may not be delegated by the institution where the amount to be waived:  
(a) is EUR 1000000 or more; or (a) is EUR 1000000 or more; or  
(b) is EUR 100000 or more, where this 
represents 25 % or more of the established amount 
receivable. (b) is EUR 100000 or more, where this 
represents 25 % or more of the established amount 
receivable.  
Beneath the thresholds set out in the first 
subparagraph, each institution shall lay down in 
its internal rules the conditions and procedure for 
delegating the power to waive recovery of an 
established debt. Beneath the thresholds set out in the first 
subparagraph, each institution shall lay down in 
its internal rules the conditions and procedure for 
delegating the power to waive recovery of an 
established debt.  
5. Each institution shall send to the budgetary 
authority each year a report on the waivers referred to in paragrap hs 1 to 4 involving EUR 
100 000 or more. In the case of the Commission, that report shall be annexe d to the summary of the 
annual activity reports refe rred to in Article 60(7) 
of the Financial Regulation. 5. Each institution shall send to the budgetary 
authority each year a report on the waivers referred to in paragraphs 1 to 4 involving EUR 100 000 or more. In the case of the Commission, that report shall be annexe d to the summary of the 
annual activity reports refe rred to in Article 60(7) 
of the Financial Regulation.  
Article 88 
Cancellation of an estab lished amount receivable
(Article 73 of the Financial Regulation) Article 88 
Cancellation of an estab lished amount receivable
(Article 73 of the Financial Regulation)  
1. In the event of a mistake as to a point of 
law, the authorising officer responsible shall cancel the established amount receivable in 1. In the event of a mistake as to a point of 
law, the authorising offi cer responsible shall 
cancel totally or partially  the established amount This provision is modified as a consequence 
of the simplification introduced in Article 73(2)(2), according to which an amount 
EN  Error! Unknown document property name.  EN accordance with Articles 80 and 81; cancellation 
shall be suitably substantiated. receivable in accordance with Articles 80 and 
81 and include adequate reasons.  
 receivable can be cancelled only by waiving 
or by the cancellation in the event of a mistake as to a point of law or fact. Article 89 is deleted for the same reason.  
2. Each institution shall lay down in its internal rules the cond itions and procedure for 
delegating the power to cancel an established amount receivable. 2. Each institution shall lay down in its 
internal rules the cond itions and procedure for 
delegating the power to cancel an established amount receivable.  
Article 89 
Technical and accounting adjustment of an 
established amount receivable 
(Article 73 of the Financial Regulation) Article 89  
Technical and accountin g adjustment of an 
established amount receivable  
(Article 73 of the Financial Regulation)   
1. The authorising officer responsible shall 
adjust the established amount receivable upwards 
or downwards if the discove ry of an error of fact 
necessitates the alteratio n of the amount, provided 
that the correction does not imply relinquishment of the Communities' established entitlement. Such adjustment shall be made in accordance with Articles 80 and 81 a nd shall be suitably 
substantiated. 1.
 The authorising offic er responsible shall 
adjust the established am ount receivable upwards 
or downwards if the discovery of an error of fact 
necessitates the alteratio n of the amount, provided 
that the correction does not imply relinquishment 
of the Communities' established en titlement. Such 
adjustment shall be ma de in accordance with 
Articles 80 and 81 and shall be suitably 
substantiated.  This provision is modified as a consequence 
of the simplification introduced in Article 73(2)(2), according to which an amount 
receivable can be cancelled only by waiving or by the cancellation in the event of a mistake as to a point of law or fact. 
2. Each institution shall lay down in its internal rules the cond itions and procedure for 
delegating the power to make a technical and 
accounting adjustment of an established amount receivable. 2.
 Each institution shall lay down in its 
internal rules the cond itions and procedure for 
delegating the power to make a technical and 
accounting adjustment of an established amount 
receivable.   
EN  Error! Unknown document property name.  EN CHAPTER  6 
EXPENDITURE OPERATIONS  CHAPTER  6 
EXPENDITURE OPERATIONS   
Article 90 
Financing decision 
(Article 75 of the Financial Regulation) Article 90 
Financing decision 
(Article 75 of the Financial Regulation)  
1. The financing decision shall set out the 
essential elements of an action involving expenditure from the budget. 1. The financing decision shall set out the 
essential elements of an action involving expenditure from the budget.  
2. For grants, the decision adopting the 
annual work programme referred to in Article 110 of the Financial Regulation shall be considered to 
be the financing decision within the meaning of Article 75 of the Financ ial Regulation, provided 
that it constitutes a sufficiently detailed framework. 2. For grants, the decision adopting the 
annual work programme referred to in Article 110 of the Financial Regulation shall be considered to 
be the financing decision within the meaning of Article 75 of the Financial Regulation, provided that it constitutes a sufficiently detailed framework.  
As regards procurement, where the 
implementation of the corresponding appropriations is provide d for by an annual work 
programme constituting a sufficiently detailed framework, this work pr ogramme shall also be 
considered to be the financing decision for the procurement contracts involved. As regards procurement, where the 
implementation of the corresponding appropriations is provide d for by an annual work 
programme constituting a sufficiently detailed framework, this work programme shall also be considered to be the financing decision for the procurement contracts involved.  
3. In order to be considered a sufficiently 
detailed framework, the work programme adopted 3. In order to be considered a sufficiently 
detailed framework, the work programme adopted  
EN  Error! Unknown document property name.  EN by the Commission shall set out the following:  by the Commission shall set out the following:  
(a) For grants:  (a) For grants:   
(i) the reference to the basic act and the 
budgetary line; (i) the reference to the basic act and the 
budgetary line;  
(ii) the priorities of the year, the objectives to 
be fulfilled and the foreseen results with the appropriations authorised for the financial year; (ii) the priorities of th e year, the objectives to 
be fulfilled and the foreseen results with the appropriations authorised for the financial year;  
(iii) the essential selection and award criteria to 
be used to select the proposals; (iii) the essential eligibility,  selection and 
award criteria to be used to select the proposals; Selection criteria are often standard: 
technical capacity and financial capacity. The 
eligibility criteria (targeted population) are more important. 
(iv) the maximum possible rate of cofinancing and if different rates are envisaged the criteria to 
be followed for each rate; (iv) the maximum possible rate of cofinancing 
and if different rates are envisaged the criteria to 
be followed for each rate;  
(v) the timetable and the indicative amount of 
the calls for proposals. (v) the timetable and th e indicative amount of 
the calls for proposals.  
(b) For procurement:  (b) For procurement:   
(i) the global budgetary envelope reserved for 
the procurements during the year; (i) the global budgetary envelope reserved for 
the procurements during the year;  
(ii) the indicative number and type of 
contracts envisaged and if possible their subject in 
generic terms; (ii) the indicative number and type of 
contracts envisaged and if possible their subject in 
generic terms;  
EN  Error! Unknown document property name.  EN (iii) the indicative timeframe for launching the 
procurement procedures.  (iii) the indicative timeframe for launching the 
procurement procedures.   
If the annual work programme does not provide 
this detailed framework fo r one or more actions, it 
must be modified accordingly or a specific financing decision must be  adopted containing the 
information referred to in points (a) and (b) of the first subparagraph for the actions concerned. If the annual work programme does not provide 
this detailed framework fo r one or more actions, it 
must be modified accordingly or a specific financing decision must be  adopted containing the 
information referred to in points (a) and (b) of the 
first subparagraph for the actions concerned.  
4. Without prejudice to any specific 
provision of a basic act, any substantial change in a financing decision already adopted shall follow the same procedure as the initial decision. 4. Without prejudice to any specific 
provision of a basic act, a ny substantial change in 
a financing decision alr eady adopted shall follow 
the same procedure as the initial decision.  
 5. In case of trust funds referred to in 
Article 164 of the Fina ncial Regulation, the 
financial decision shall include :  
(i) The reference to the basic act and the 
budgetary line;  
(ii) The appropriations reserved to the trust 
fund for the current year together 
with the amounts planned over its 
duration;  
(iii) The objectives of the trust fund and its 
duration;  
(iv) The rules of governance of the trust 
fund;  
(v) The possibility to entrust budget 
implementation tasks to the entities  
EN  Error! Unknown document property name.  EN and persons referred to in point (2) 
of Article 53(1) of the Financial 
regulation in accordance with the 
provisions set out in Chapter 2 of 
Title IV of the Financial Regulation.  
 
SECTION 1 
COMMITMENT OF EXPENDITURE  SECTION 1 
COMMITMENT OF EXPENDITURE   
Article 91 
Global and provisional commitments 
(Article 76(2) of the Financial Regulation) Article 91 
Global and provisional commitments 
(Article 76(2) of the Financial Regulation)  
1. The global budget commitment shall be 
implemented either by the conclusion of a financing agreement, itself providing for the subsequent conclusion of one or more legal commitments, or by the conclusion of one or more legal commitments. 1. The global budget commitment shall be 
implemented either by the conclusion of a financing agreement, itself providing for the subsequent conclusion of one or more legal commitments, or by the conclusion of one or more legal commitments.  
Financing agreements in the field of financial 
assistance and budgetary support which constitute legal commitments may give rise to payments without the conclusion of other legal commitments. Financing agreements in the field of financial 
assistance and budgetary support which constitute legal commitments may give rise to payments without the conclusion of other legal commitments.  
2. The provisional budget commitment shall 
be implemented either by the conclusion of one or 
more legal commitments giving rise to an 2. The provisional budget commitment shall 
be implemented either by the conclusion of one or more legal commitments giving rise to an The reference to 'administrative expenditure' 
corresponds to the title of article 96 "Administrative expenditure covered by 
EN  Error! Unknown document property name.  EN entitlement to subsequent payments or, in cases 
relating to expenditure on staff management or on 
communications activities engaged in by the institutions for the coverage of Community events on communication activiti es performed by the 
Institutions and aimed at covering community events, directly by payments. entitlement to subsequent payments or, in 
particular  in cases relating to expenditure of 
administrative nature  on staff management  or on 
communications activitie s engaged in by the 
institutions for the coverage of Communi ty Union  
events on communication activities performed by the Institutions and aimed at covering Community
 
Union  events, directly by payments. provisional commitments " which covers not 
only the staff expenditures but other operating expenditure.  
Article 92 
Adoption of a global commitment 
(Article 76 of the Financial Regulation) Article 92 
Adoption of a global commitment 
(Article 76 of the Financial Regulation)  
1. A global commitment shall be made on the 
basis of a financing decision. 1. A global commitment shall be made on the 
basis of a financing decision.  
The global commitment shall be made at the latest 
before the decision on the selection of beneficiaries is taken and, where implementation of the appropriations concerned involves the 
adoption of a work programme within the meaning of Article 166, at the earliest after that 
programme has been adopted. The global commitment shall be made at the latest 
before the decision on the selection of beneficiaries is taken and, where implementation 
of the appropriations concerned involves the 
adoption of a work programme within the meaning of Article 166, at the earliest after that 
programme has been adopted.  
2. Where the global commitment is 
implemented by the conclusion of a financing agreement, the second subparagraph of paragraph 1 shall not apply. 2. Where the global commitment is 
implemented by the conclusion of a financing agreement, the second s ubparagraph of paragraph 
1 shall not apply.  
EN  Error! Unknown document property name.  EN Article 94 
Single signature 
(Article 76 of the Financial Regulation) Article 94 
Single signature 
(Article 76 of the Financial Regulation)  
1. The rule that there be  a single signatory for 
the budget commitment and the corresponding 
legal commitment may be departed from in the following cases alone: 1. The rule that there be  a single signatory for 
the budget commitment and the corresponding legal commitment may be departed from in the following cases alone:  
(a) where the commitments are provisional; (a) where the commitments are provisional;  
(b) where global commitments relate to 
financing agreements with third countries; (b) where global commitments relate to 
financing agreements with third countries;  
(c) where the institution's decision constitutes 
the legal commitment; (c) where the institution's decision constitutes 
the legal commitment;  
(d) where the global commitment is 
implemented by a number of legal commitments, for which different authorising officers are responsible; (d) where the global commitment is 
implemented by a number of legal commitments, for which different authorising officers are responsible;  
(e) where, in connection with imprest 
accounts available for external action, legal commitments must be signed by members of staff of the local units referred  to in Article 254 on the 
instruction of the author ising officer responsible, 
who remains, however, fully responsible for the underlying transaction. (e) where, in connection with imprest 
accounts available for external action, legal commitments must be signed by members of staff of the local units referred  to in Article 254 on the 
instruction of the authoris ing officer responsible, 
who remains, however, fully responsible for the underlying transaction.  
EN  Error! Unknown document property name.  EN (f) where an institution has delegated 
authorising officer powers to the director of an 
interinstitutional European office pursuant to Article 174a(1) of the Financial Regulation. (f) where an institution has delegated 
authorising officer powers to the director of an 
interinstitutional European office pursuant to Article 174a(1) of the Financial Regulation.  
2. If the authorising officer responsible who 
signed the budget commitment is not available and remains unavailable for a period incompatible with the time-limits for concluding the legal commitment, that legal commitment shall be concluded by the pers on designated under the 
deputisation rules adopted by each institution, 
provided that that pers on has the status of 
authorising officer in accordance with Article 59(2) of the Financial Regulation. 2. If the authorising officer responsible who 
signed the budget commitment is not available and remains unavailable for a period incompatible with the time-limits for concluding the legal commitment, that legal commitment shall be 
concluded by the person designated under the deputisation rules adopted by each institution, provided that that pers on has the status of 
authorising officer in accordance with Article 59(2) of the Financial Regulation.  
Article 95 
Registration of individual legal commitments 
(Article 77 of the Financial Regulation) Article 95 
Registration of individual legal commitments 
(Article 77 of the Financial Regulation)  
In the case of a global budget commitment 
followed by several individual legal commitments, the authorising officer responsible shall register in the cen tral accounts the amounts 
of these successive individual legal commitments. The authorising officer responsible shall check that the aggregate amount does not exceed the amount of the global co mmitment covering them. In the case of a global budget commitment 
followed by several individual legal commitments, the authorising officer responsible shall register in the cen tral accounts the amounts 
of these successive individual legal commitments. The authorising officer responsible shall check 
that the aggregate amount does not exceed the 
amount of the global co mmitment covering them   
The registration in the ac counts shall indicate the 
references of the global commitment against 
which the individual commitments are being The registration in the ac counts shall indicate the 
references of the global commitment against 
which the individual commitments are being  
EN  Error! Unknown document property name.  EN booked. booked. 
The authorising officer re sponsible shall register 
the amounts in the accounts before signing the corresponding individual legal commitment. The authorising officer responsible shall register 
the amounts in the accounts before signing the corresponding individual legal commitment , save 
in the cases referred to in the fourth paragraph 
of Article 77(2) of the Financial Regulation.   
 In all cases, the authorising officer responsible 
shall check that the a ggregated amount does 
not exceed the amount of the global 
commitment covering them.   
Article 96 
Administrative expenditure covered by provisional 
commitments 
(Article 76 of the Financial Regulation) Article 96 
Administrative expenditure covered by provisional 
commitments 
(Article 76 of the Financial Regulation)  
Items regarded as routine administrative 
expenditure which may give  rise to provisional 
commitments shall include the following: Items regarded as routine administrative 
expenditure which may give  rise to provisional 
commitments shall include the following:  
(a) expenditure on staff, whether or not 
covered by the Staff Regul ations, on other human 
resources and pensions a nd on the remuneration of 
experts; (a) expenditure on staff, whether or not 
covered by the Staff Re gulations, on other human 
resources and pensions and on the remuneration of experts;  
(b) expenditure relating to Members of the 
institution; (b) expenditure relating to Members of the 
institution;  
(c) training expenditure; (c) training expenditure;  
(d) expenditure on competitions, selection and 
recruitment; (d) expenditure on competitions, selection and 
recruitment;  
EN  Error! Unknown document property name.  EN (e) mission expenses; (e) mission expenses;  
(f) representation e xpenses; (f) represen tation expenses;  
(g) meeting expenses; (g) meeting expenses;  
(h) freelance interpreters and/or translators; (h ) freelance interpreters and/or translators;  
(i) exchanges of officials; (i) exchanges of officials;  
(j) recurring rentals of movable and 
immovable property; (j) recurring rentals of movable and 
immovable property or recurring payments 
relating to building contracts within the 
meaning of article 116 of the present 
Regulation or loan instalments pursuant article 
179(3)(b) of the Financial Regulation;  Currently, the purchase of a building is not 
done in cash but split over several years and is distinct from the rental of immovable property.  
Following the proposal to allow the 
Institutions to finance the acquisition of real 
estate assets through a loan, the payment of 
each annual (or periodic) instalment is to be treated as a recurring administrative expenditure, similar to a rent payment.  
Hence the change proposed should allow the 
Commission and other Institutions to develop a long term real estate  policy (in particular 
for delegations, OIB and OIL).  
(k) miscellaneous insurance; (k) miscellaneous insurance;  
(l) cleaning and maintenance; (l) cleaning and maintenance;  
(m) welfare expenditure; (m) welfare and medical  expenditure; Clarification  
EN  Error! Unknown document property name.  EN (n) the use of telecommunications services; (n ) the use of telecommunications services;  
(o) financial charges; (o) financial charges;  
(p) legal expenses; (p) legal expenses;  
(q) damages, including interest; (q) damages, including interest;  
(r) work equipment; (r) work equipment;  
(s) water, gas and electricity; (s ) water, gas and electricity;  
(t) periodical publica tions on paper or in 
electronic versions. (t) periodical  publications on paper or in 
electronic versions. Remove the word "periodical". With changes 
in technology and the efficiency gains offered by "print on demand" options for all 
types of publication (con sistent with reducing 
initial print runs, av oiding over-production 
with its associated storage fees and destruction fees), it makes sense to cover all types of publications by provisional commitments. Nowadays there is normally no distinction betw een print on demand 
reproduction of periodical and individual titles, new or old. This would also be consistent with the new category proposed: 
v) communications activities engaged in by 
the institutions for the coverage of Union events;  
 (u) civil protection interventions in case of 
emergency;  This new provision create s the possibility to 
use provisional commitments for both dissociated and non-dissociated 
EN  Error! Unknown document property name.  EN appropriations in relatio n to civil protection 
(only for emergency situations) and other categories of administrative expenditure. 
 (v) communications activities engaged in by the 
institutions for the coverage of Union events;   
SECTION 2 
VALIDATION OF EXPENDITURE  SECTION 2 
VALIDATION OF EXPENDITURE   
Article 97 
Validation and «passing for payment» 
(Article 79 of the Financial Regulation) Article 97 
Validation and «passing for payment» 
(Article 79 of the Financial Regulation)  
1. Validation of any e xpenditure shall be 
based on supporting documents within the meaning of Article 104 attesting the creditor's entitlement, on the basis of a statement of services 
actually rendered, supplies  actually delivered or 
work actually carried out, or on the basis of other 
documents justifying payment. 1. Validation of any e xpenditure shall be 
based on supporting documents within the meaning of Article 104 a ttesting the creditor's 
entitlement, on the basis of a statement of services 
actually rendered, supplie s actually delivered or 
work actually carried out, or on the basis of other 
documents justifying payment , including 
recurring payments of subscriptions or 
training courses . In order to clarify this provision, it is 
proposed give some examples of cases where "other documents " may be accepted as 
justification for payment. In the suggested cases (subscriptions to  training courses, 
databanks and newspapers), the good or service is not yet delivered when the payment is validated. 
2. The authorising officer responsible shall personally check the supporting documents or shall, on his own responsibility, ascertain that this has been done, before taking the decision validating the expenditure. 2. The authorising officer responsible shall 
personally check the supporting documents or shall, on his own responsibility, ascertain that this has been done, before  taking the decision 
validating the expenditure.  
EN  Error! Unknown document property name.  EN 3. The validation decisi on shall be expressed 
by the signing of a «passed for payment» voucher by the authorising officer responsible or by an official or other servant technically competent, empowered by formal decision of the authorising officer. Such empowerment decisions shall be kept for future reference. 3. The validation decision shall be expressed 
by the signing of a «passed for payment» voucher by the authorising officer responsible or by an official or other servant technically competent, empowered by a formal decision of the authorising officer and under his/her 
responsibility in accordance with Article 58(4) 
of the Financial Regulation . Such empowerment 
decisions shall be kept for future reference. Clarification: this article create a confusion 
on the necessity to organise a formal process of sub delegation within the Implementing rules of the Budget.. It is completed to confirm that the empowerment is made under the responsibility of the Authorising Officer and is not a sub delegation within the meaning of the Internal Rules. 
  
Article 98 
Passing for payment of procurement contracts 
(Article 79 of the Financial Regulation) Article 98 
Passing for payment of procurement contracts  for 
interim and balance payments  
(Article 79 of the Financial Regulation)  
For payments corresponding to procurement 
contracts, the endorsement «passed for payment» shall certify that: For interim and balance 
payments corresponding 
to procurement contracts, the endorsement «passed for payment» shall certify that:  
(a) the institution has received and formally 
registered an invoice drawn up by the contractor; (a) the institution has received and formally 
registered an invoice drawn up by the contractor;  
(b) the invoice itself, or an internal document 
accompanying the invoice received, has been endorsed «certified co rrect» and signed by an 
official or other servant technically competent and duly empowered by the authorising officer responsible; (b) the invoice itself, or  an internal document 
accompanying the invoice received, has been endorsed «certified correct» and signed by an official or other servant technically competent and 
duly empowered by the authorising officer responsible;  
(c) all aspects of the invoice have been 
checked by the authorising officer responsible or (c) all aspects of th e invoice have been 
checked by the authorising officer responsible or  
EN  Error! Unknown document property name.  EN on his responsibility with a view to determining in 
particular the amount to be paid and the validity of 
the payment as discharge of the debt. on his responsibility with a view to determining in 
particular the amount to be paid and the validity of the payment as discharge of the debt. 
The endorsement «certified correct», referred to in point (b) of the first para graph shall certify that 
the services provided for in  the contract have been 
properly provided, or th at the supplies provided 
for in the contract have been properly delivered, or that the work provided for in the contract has been properly carried out. For supplies and work, the official or other servant technically competent shall draw up a provisional  acceptance certificate, 
then a final acceptance certif icate at the end of the 
guarantee period laid down in the contract. Those 
two certificates shall count as the «certified correct» endorsement. The endorsement «certified correct», referred to in 
point (b) of the first paragraph shall certify that the services provided for in the contract have been properly provided, or that  the supplies provided 
for in the contract have been properly delivered, or that the work provided for in the contract has been properly carried out.  For supplies and work, 
the official or other serv ant technically competent 
shall draw up a provisional acceptance certificate, then a final acceptance certif icate at the end of the 
guarantee period laid down in the contract. Those two certificates shall c ount as the «certified 
correct» endorsement.   
For recurring payments including payment of 
subscriptions or training courses, the 
endorsement «certified correct», shall certify 
that the entitlement of the creditor is in 
accordance with relevant documents justifying 
payment.  
  
      For routine expenditure like travel tickets, the service is not delivere d when the payment is 
made, so it cannot be in the scope of the 'certified correct'. 
Article 99 
Passing for payment of grants 
(Article 79 of the Financial Regulation) Article 99 
Passing for payment of grants for interim and 
balance payments  
(Article 79 of the Financial Regulation) The scope of this Article is limited to interim 
and balance payments 
For payments corresponding to grants, the For interim and balance  payments corresponding The scope of this Article is limited to interim 
EN  Error! Unknown document property name.  EN endorsement «passed for payment» shall certify 
that: to grants, the endorsement  «passed for payment» 
shall certify that: and balance payments: prefinancing shall be 
directly governed by the principles of Article 79 FR. 
(a) the institution has received and formally registered a payment request drawn up by the beneficiary; (a) the institution has received and formally 
registered a cost statement
 payment request  
drawn up by the beneficiary; Terminology: the cost statement is drawn by 
the beneficiary; the payment request is issued by the Commission. 
(b) the payment request itself, or an internal document accompanying the payment request received, has been endor sed «certified correct» 
and signed by an official or other servant technically competent, empowered by the authorising officer responsible; by such endorsement, he certifies th at the action or work 
programme carried out by th e beneficiary is in all 
respects in compliance with the grant agreement; (b) the cost statement
 payment request  itself, 
or an internal document accompanying the cost 
statement  payment request  received, has been 
endorsed «certified correct» and signed by an official or other servant technically competent, empowered by the authoris ing officer responsible; 
by such endorsement, he certifies that the action or work programme carried out by the beneficiary is in all respects in compliance with the grant agreement or decision
. The definition of "certified correct" 
(conforme aux faits) must be different for 
prefinancing payments than for intermediary or final payments (See below)  
 
 
(c) all aspects of the payment request have 
been checked by the authorising officer responsible or on his respons ibility with a view to 
determining in particular the amount to be paid and the validity of the payment as discharge of the debt. (c) all aspects of the cost statement
 payment 
request  have been checked by the authorising 
officer responsible or on his responsibility with a 
view to determining in pa rticular the amount to be 
paid and the validity of the payment as discharge of the debt.  
EN  Error! Unknown document property name.  EN  Article 99a 
Certified correct   for pre-financing  payments  
(Article 79 of the Financial Regulation)  
 For pre-financing payments, the authorising 
officer shall certify with the endorsement 
'certified correct' that:  
 (a) the grant decision ha s been received by the 
beneficiary or that the grant agreement or the  
contract or the delegation agreement has been 
signed by the contracting parties;  
 (b) and, where applicable, that the conditions 
required in those documents and the conditions 
laid down in Article 180(1) of the present 
regulation are met.   
- When pre-financing is due upon signature of the contract/agreement or reception of grant decision point (a) will only apply.   -When further pre-fi nancing is due on 
verification of consumption of previous instalment, point (b) will also apply. 
 Article 99b  
Certified correct for interim payments 
corresponding to grants  (Article 79 of the 
Financial Regulation)   
 For interim payments corresponding to grants, 
the endorsement 'certifie d correct' shall certify 
that:  
(a) costs declared by the beneficiary  
corresponds to the advancement of the action 
or work programme and seem reasonably 
compliant with the grant agreement or  
EN  Error! Unknown document property name.  EN decision;  
(b) the authorising officer responsible has 
obtained and checked any relevant and 
necessary information on  costs incurred by the 
beneficiary.  
Article 100 
Passing for payment of staff expenditure 
(Article 79 of the Financial Regulation) Article 100 
Passing for payment of staff  expenditure 
(Article 79 of the Financial Regulation)  
For payments corresponding to staff expenditure, 
the endorsement «passed for payment» shall 
certify that the following supporting documents exist: For payments corresponding to staff expenditure, 
the endorsement «passed for payment» shall 
certify that the following supporting documents exist:  
(a) in respect of monthly salary: (a) in respect of monthly salary:  
(i) the complete list of  staff, giving all the 
components of remuneration; (i) the complete list of staff, giving all the 
components of remuneration;  
(ii) a form (personal information sheet) based 
on decisions taken in each individual case, showing, whenever such change occurs, any change in any component of remuneration; (ii) a form (personal information sheet) based 
on decisions taken in each individual case, showing, whenever such change occurs, any change in any component of remuneration;  
(iii) in the case of recruitments or 
appointments, a certified true copy of the recruitment or appointment decision which accompanies the validation of the first salary payment; (iii) in the case of recruitments or 
appointments, a certif ied true copy of the 
recruitment or appointment decision which accompanies the validation of the first salary payment;  
(b) in respect of other remunera tions such as (b) in respect of other remunerations such as  
EN  Error! Unknown document property name.  EN staff paid on an hourly or  daily basis: a statement 
signed by the authorised me mber of staff showing 
the days and hours worked; staff paid on an hourly or daily basis: a statement 
signed by the authorised me mber of staff showing 
the days and hours worked; 
(c) in respect of overtime: a statement signed by the authorised member of staff certifying the amount of overtime worked; (c) in respect of overtime: a statement signed 
by the authorised member of staff certifying the amount of overtime worked;  
(d) in respect of mission expenses: (d) in respect of mission expenses:  
(i) the travel order signed by the competent 
authority; (i) the travel order signed by the competent 
authority;  
(ii) the statement of mission expenses, signed 
by the member of staff on mission and by the administrative superior to whom the appropriate powers have been delegated, and showing, in particular, the place of  mission, the dates and 
times of departure and arrival at the place of mission, travel expenses, subsistence expenses, and other expenses duly au thorised on production 
of supporting documents; (ii) the statement of mission expenses, signed 
by the member of staff on mission and by the administrative superior to whom the appropriate powers have been delegated, and showing, in 
particular,   if the mission expenses differ from 
the mission order. The statement of mission 
expenses shall indicate  the place of mission, the 
dates and times of departure and arrival at the place of mission, travel expenses, subsistence 
expenses, and other expenses duly authorised on production of supporting documents; The decision of the Commission of July 2007 
on simplification provides for a change to be introduced in the next FR revision, namely the possibility to cancel the need for the mission expenses statement to be signed also by the AO of the mission performer if this 
statement does not differ from the mission order. Thus, in this ca se, the signature of the 
mission performer should be sufficient to request the reimbursement of mission expenses. 
(e) in respect of othe r staff expenditure: the 
supporting documents referring to the decision on which the expenditure is based and giving all the 
components of the calculation. (e) in respect of some
 other staff  
administrative expenditure including  
subscriptions or training courses which, 
according to the contract, are to be paid in 
advance:  the supporting documents referring to 
the decision on which the expenditure is based and giving all the componen ts of the calculation. All other staff expenditure seems to be 
covered by points a, b and c.  
However, there is the need to cover other 
administrative expenditures, such as rents, training courses, newspaper subscription which are paid in advance.  
EN  Error! Unknown document property name.  EN  It is necessary to include it here as not 
possible to have attesting that the goods or services have been delivered. 
However, for the other services that are paid 
in after the delivery of the goods and services are delivered a "certified correct" ( conforme 
aux faits)  and thus, they should follow the 
regular system for procurement.  
 
Article 101 
Material form of «passed for payment» 
(Article 79 of the Financial Regulation) Article 101 
Material form of «passed for payment» 
(Article 79 of the Financial Regulation)  
In a non-computerised system, «passed for 
payment» shall take the form of a stamp incorporating the signat ure of the authorising 
officer responsible or of a technically competent member of staff, empowered by the authorising officer responsible in accordance with Article 97. In a computerised system, «passed for payment» shall take the form of an electronically secured 
validation by the authorisi ng officer responsible or 
of a technically competent member of staff, empowered by the authorising officer responsible. In a non-computerised system, «passed for 
payment» shall take the form of a stamp incorporating the signature of the authorising officer responsible or of a technically competent member of staff, empo wered by the authorising 
officer responsible in accordance with Article 97. In a computerised system, «passed for payment» shall take the form of an electronically secured validation by the authorisi ng officer responsible or 
of a technically competent member of staff, empowered by the authorising officer responsible. Justification: see Article 97. 
 
EN  Error! Unknown document property name.  EN  
Article 101a  
Material form of «certified correct»  
(Article 79 of the Fi nancial Regulation)   
 In a computerised system, "certified correct" 
may take the form of an  electronically secured 
validation by the technically competent 
member of staff, empow ered by the authorising 
officer responsible.  New article: an electronic "certified correct" 
approval should be allowed in a computerised system. However, because not all operational agents are using ABAC or a local system, the electronic validation should remain optional. 
SECTION 3 
AUTHORISATION OF PAYMENTS  SECTION 3 
AUTHORISATION OF PAYMENTS   
Article 102 
Checks on payments by the authorising officer 
(Article 80 of the Financial Regulation) Article 102 
Checks on payments by the authorising officer 
(Article 80 of the Financial Regulation)  
When drawing up the payment order, the 
authorising officer responsible shall ensure that: When drawing up the payment order, the 
authorising officer responsible shall ensure that:  
(a) the payment order has been properly 
issued, meaning that a corresponding validation decision has been taken prev iously in the form of 
«passed for payment», that the particulars of the payee are correct and that the amount is due; (a) the payment order has been properly 
issued, meaning that a corresponding validation 
decision has been taken previously in the form of «passed for payment», that the particulars of the payee are correct and that the amount is due;  
(b) the payment order corresponds to the (b ) the payment order corresponds to the  
EN  Error! Unknown document property name.  EN budget commitment against which it is booked; budget commitment against which it is booked; 
(c) the expenditure is charged to the correct 
item in the budget; (c) the expenditure is charged to the correct 
item in the budget;  
(d) appropriations are available. (d ) appropriations are available.  
Article 103 
Mandatory details on payment orders and 
transmission to the accounting officer 
(Article 80 of the Financial Regulation) Article 103 
Mandatory details on payment orders and 
transmission to the accounting officer 
(Article 80 of the Financial Regulation)  
1. The payment order shall state: 1. The payment order shall state:  
(a) the financial year to which the expenditure 
is to be booked; (a) the financial year to which the expenditure 
is to be booked;  
(b) the budget article and any other 
subdivision that may apply; (b) the budget article and any other 
subdivision that may apply;  
(c) the references of the legal commitment 
giving rise to an entitlement to payment; (c) the references of the legal commitment 
giving rise to an entitlement to payment;  
(d) the references of the budget commitment 
against which it is to be booked; (d) the references of the budget commitment 
against which it is to be booked;  
(e) the amount to be paid, expressed in euro; (e ) the amount to be paid, expressed in euro;  
(f) the name, address and bank account details 
of the payee; (f) the name, address and bank account details 
of the payee;  
EN  Error! Unknown document property name.  EN (g) the object of the expenditure; (g ) the object of the expenditure;  
(h) the means of payment; (h) the means of payment;  
(i) the entry of items in the inventory in 
accordance with Article 222. (i) the entry of items in the inventory in 
accordance with Article 222.  
2. The payment order shall be dated and 
signed by the authorising officer responsible, then sent to the accounting officer. 2. The payment order shall be dated and 
signed by the authorising o fficer responsible, then 
sent to the accounting officer.  
SECTION 4 
PAYMENT OF EXPENDITURE  SECTION 4 
PAYMENT OF EXPENDITURE   
Article 104 
Supporting documents 
(Article 81 of the Financial Regulation) Article 10 5 4 
Supporting documents 
(Article 81 of the Financial Regulation) Order of Articles 104 and 105 will be 
modified to correspond with chronology 
1. Pre-financing, includ ing in cases where it 
is split into a number of payments, shall be paid either on the basis of the contract, the decision, the 
agreement or the basic act, or on the basis of supporting documents which make it possible to check the conformity of the actions financed with the terms of the contract, decision or agreement in 
question. If a date of pa yment for pre-financing is 
determined in those instruments, payment of the due amount shall not be dependent upon further demand. 1. Pre-financing, including  in cases where it 
is split into a number of payments, shall be paid 
either on the basis of th e contract, the decision or 
the grant agreement , the delegation  agreement 
or the basic act, or on the basis of supporting documents which make it possible to check the compatibility
 conformity of the actions financed 
with the terms of the contract, decision or 
agreement in question and, where applicable, the 
necessity to provide further float . If a date of 
payment for pre-financing is determined in those instruments, payment of the due amount shall not  
 Adjusted in line with Article 81.4 FR 
EN  Error! Unknown document property name.  EN be dependent upon further demand. 
Interim payments and payments of balances shall 
be based on supporting documents which make it possible to check that the action financed has been 
carried out in accordance with the basic act or the decision in favour of th e beneficiary, or in 
accordance with the term s of the contract or 
agreement concluded with the beneficiary. Interim payments and payments of balances shall 
be based on supporting documents which make it possible to check that the action financed has been carried out in accordance with the basic act or the decision in favour of th e beneficiary, or in 
accordance with the term s of the contract or 
agreement concluded with the recipient
 
beneficiary .  
   Precision of terminology 
2. The authorising officer responsible shall 
lay down, in compliance w ith the principle of 
sound financial management, the nature of the supporting documents referred to in paragraph 1 in accordance with the basi c act and the contracts 
and agreements conclude d with the beneficiary. 
Interim and final technical and financial implementation reports, shall constitute supporting documents for the purposes of paragraph 1. 2. The authorising officer responsible shall 
lay down, in compliance with the principle of sound financial management, the nature of the supporting documents referred to in paragraph 1 in accordance with the basi c act and the contracts 
and agreements concluded with the recipient
 
beneficiary . Interim and final technical and 
financial implementation reports, shall constitute supporting documents for the purposes of paragraph 1.  
  Precision of terminology 
3. The supporting documents shall be kept by 
the authorising officer responsible in accordance with Articles 48 and 49. 3. The supporting documents shall be kept by 
the authorising officer responsible in accordance with Articles 48 and 49.  
EN  Error! Unknown document property name.  EN Article 105 
Booking of pre-financing and interim payments 
(Article 81 of the Financial Regulation) Article 10 4 5 
Booking of pre -financing and interim  Types of 
payment 
(Article 81 of the Financial Regulation) Order of Articles 104 and 105 will be 
modified to correspond with chronology 
1. Pre-financing is inte nded to provide the 
beneficiary with a float. It may be split into a number of payments. 1. Pre-financing is inte nded to provide the 
beneficiary
 recipient  with a float. It may be split 
into a number of payments in accordance with 
sound financial management . 
 Pre-financing is possible for any kind of 
recipients. 
 
2. An interim payment, which may be 
repeated, is intended to reimburse expenditure incurred by the beneficiary on the basis of a statement of expenditure when the action is in progress. It may clear pre- financing in whole or in 
part, without prejudice to  the provisions of the 
basic act. 2. An interim payment, which may be 
repeated, is intended to reimburse expenditure incurred by the recipient
 beneficiary . on the basis 
of a cost statement or an invoice  of expenditure  
when the action is in progress or to pa y for  
services, supplies or works completed and 
delivered at interim stages of the contract . It 
may clear pre -financing in whole or in part, 
without prejudice to the provisions of the basic 
act. Interim payments can be paid during the 
lifetime of the contract for partial delivery. 
Interim payments are made on the basis of 
costs approved by the AO. The clearing of the prefinancing shall be  made in accordance 
with the rules referred to in Article 81.3 FR. 
3. The closure of the expenditure shall take 
the form of the payment of the balance, which may not be repeated and clears all preceding payments, or a recovery order. 3. The closure of the expenditure shall take 
the form of the payment of the balance,
 which 
may not be repeated and  clears all preceding 
payments , or a recovery order. In case of contestation another payment may 
be made after the "balance" payment. 
"Clearing a payment" is confusing. 
EN  Error! Unknown document property name.  EN SECTION 5 
TIME LIMITS FOR EXPENDITURE 
OPERATIONS  SECTION 5 
TIME LIMITS FOR EXPENDITURE 
OPERATIONS   
Article 106 
Payment time limits and default interest 
(Article 83 of the Financial Regulation) Article 106 
Payment time limits and default interest 
(Article 83 of the Financial Regulation)  
1. Sums due shall be paid within no more 
than forty-five calendar days from the date on which an admissible payment request is registered by the authorised department of the authorising officer responsible; the date of payment shall be understood to mean the date on which the institution's account is debited. 1. Sums due shall be paid within no more 
than forty-five calendar days from the date on which an admissible
 payment request  an invoice 
or a cost statement is registered by the authorised 
department of the authoris ing officer responsible; 
the date of payment shall be understood to mean the date on which the institution's account is debited. The word ‘admissible’ is unnecessary and 
redundant: by definition, when a payment request is registered, it means that it is admissible. 
 
The payment request is not  admissible if at least 
one essential requirement is not met. The payment request is not admissible if at least 
one essential requirement is not met.   
Where the payment request is not admissible, the 
authorising officer shall in form the contractor or 
beneficiary within 30 cale ndar days from the date 
on which the payment re quest was initially 
received. That information shall include a description of all deficiencies. Where the payment request is not admissible, the 
authorising officer shall in form the contractor or 
beneficiary within 30 cale ndar days from the date 
on which the payment request w as initially 
received. That information shall include a 
description of all deficiencies.   
2. The payment period referred to in 
paragraph 1 shall be thirty calendar days for 2. The payment period referred to in 
paragraph 1 shall be th irty calendar days for  
EN  Error! Unknown document property name.  EN payments relating to service or supply contracts, 
save where the contract  provides otherwise. payments relating to service or supply contracts, 
save where the contract  provides otherwise. 
3. For contracts, grant agreements and 
decisions under which payment depends on the approval of a report or a certificate, the time-limit for the purposes of the payment periods referred 
to in paragraphs 1 and 2 shall not begin to run until the report or certificate in question has been approved. The beneficiar y shall be informed 
without delay. 3. For contracts, grant agreements and 
decisions under which payment depends on the approval of a report or a certificate
, the time-limit 
for the purposes of the payment periods referred to in paragraphs 1 and 2 shall not begin to run until the report or certificate
 in question has been 
approved. The recipient  beneficiary  shall be 
informed without delay. The payment is under the condition of the 
approval of a report. Where a certificate is due (for example an audit certificate) the report will not be approved in the absence of the certificate. Therefore the term "certificate" can be deleted. 
 
The time allowed for approval may not exceed: The time allowed for approval may not exceed:  
(a) 20 calendar days for straightforward 
contracts relating to the supply of goods and 
services; (a) 20 calendar days for straightforward 
contracts relating to the supply of goods and 
services;  
(b) 45 calendar days fo r other contracts and 
grant agreements and decisions; (b) 45 calendar days for other contracts and 
grant agreements and decisions;  
(c) 60 calendar days fo r contracts and grant 
agreements and decisions involving technical services or actions which are particularly complex to evaluate. (c) 60 calendar days for contracts and grant 
agreements and decisions involving technical services or actions which are particularly complex to evaluate.  
In any case, the contractor or beneficiary shall be 
informed in advance of the possibility that payments might be delayed for the purpose of approval of a report. In any case, the contractor  or beneficiary shall be 
informed in advance of the possibility that payments might be delayed for the purpose of approval of a report.  
The authorising officer responsible shall in form The authorising officer responsible may reject  
EN  Error! Unknown document property name.  EN the beneficiary by means of a formal document of 
any suspension of the period allowed for approval of the report or certificate. the report where at least one essential 
requirement is not met or suspend the time-
limit for approval because the appropriate 
supporting documents have not been produced 
or additional informat ion is necessary to 
approve the report.  
He/she shall inform the recipient the beneficiary  
by means of a formal document of any rejection 
of the report or  suspension of the period allowed 
for approval of the re port or certificate  and state 
the reasons for the rejection or suspension . 
In case of rejection of the report and 
submission of a new report, the approval 
procedure in accordance wi th the first to fifth 
subparagraphs shall apply to the new report.  
In case of suspension, time for the purposes of 
the remainder of the approval period shall 
begin to run again from the date on which the 
requested information is received.  
The authorising officer responsible may decide 
that a single time-limit for the approval of the 
report or the certificate, and for payment shall apply. This single time-limit may not exceed the aggregated maximum applicable periods for approval of the report or certificate and for 
payment. The authorising officer responsible may decide 
that a single time-limit for the approval of the report or the certificate
, and for payment shall 
apply. This single time-limit may not exceed the aggregated maximum applicable periods for approval of the report or certificate and for payment.  
4. The authorising officer responsible may 4. Where at least one essential The procedure to reject a non admissible 
payment request is detailed. For the 
EN  Error! Unknown document property name.  EN suspend the time limit for payment by informing 
creditors, at any time dur ing the period referred to 
in paragraph 1, that the payment request cannot be met, either because the amount is not due or because the appropriate supporting documents have not been produced. If information comes to the notice of the authorising officer responsible which puts in doubt the elig ibility of expenditure 
appearing in a payment request, the authorising 
officer may suspend the time limit for payment for 
the purpose of further ve rification, including an 
on-the-spot check, in order to ascertain, prior to payment, that the expenditure is indeed eligible. The authorising officer shall inform the contractor or beneficiary in questi on as soon as possible and 
set out the reasons for the suspension. requirement of the cost statement or the 
invoice is not met, the re quest may be rejected.  
The authorising officer shall inform the 
recipient of the rejection of the request within 
30 calendar days from the date on which it was 
initially received. The payment procedure in 
accordance with paragraph 1 shall apply to the 
new request.  
The authorising officer responsible may suspend 
the time limit for payment by informing creditors, 
at any time during the period referred to in paragraph 1, that the invoice or cost statement
 
payment request  cannot be paid  met , either  
because the information contained in the 
submitted documents is incomplete or 
unsatisfactory . the amount is not due or because 
the appropriate supporting documents have not 
been produced.  If information comes to the notice 
of the authorising officer responsible which puts in doubt the eligibility of expenditure appearing in 
a cost statement
 payment  request , the authorising 
officer may suspend the time limit for payment for the purpose of further ve rification, including an 
on-the-spot check, in orde r to ascertain, prior to 
payment, that the expenditure is indeed eligible. The authorising officer shall inform the contractor or beneficiary in question as soon as possible and set out the reasons for the suspension. information of the beneficiary or contractor a 
deadline is fixed as well as the necessity of a clear motivation.  The first stage of control is formal and shall be based on a check-list. The beneficiary shall know rapidly if some documents are missing. The text is clarified in that sense and the delay is extended to 30 days. If one 
document is missing, the request is rejected 
and a new payment procedure shall start with the reception of a new request with required 
documents.   The second stage is an analysis of the documents, when these documents have been received completely (instruction phase). The AOSD shall then have the time for approval defined under Paragraph 3. 
EN  Error! Unknown document property name.  EN Time for the purposes of the remainder of the 
payment period shall begin to run again from the date on which the properly formulated payment request is first registered. Time for the purposes of the remainder of the 
payment period shall begin to run again from the date on which the properly formulated documents are payment request is
 first registered.  
5. On expiry of the time-limits laid down in 
paragraphs 1, 2 and 3, the creditor shall be entitled to interest in accordan ce with the following 
provisions: 5. On expiry of the time-limits laid down in 
paragraphs 1, 2 and 3, the creditor shall  be entitled 
to interest in accordance with the following provisions: The principle of automa tic interest has been 
introduced in 2006 and can not be changed. 
(a) the interest rates shall be those referred to in the first subparagraph of Article 86(2); (a) the interest rates shall be those referred to 
in the first subparagraph of Article 86(2);  
(b) the interest shall be payable for the period 
elapsing from the calendar day following expiry of the time-limit for payment up to the day of payment. (b) the interest shall be payable for the period 
elapsing from the calendar day following expiry of the time-limit for payment up to the day of payment. 
  
 The first subparagraph shall apply for sums 
paid from the budget in direct management 
mode and shall not apply to the profit of 
Member States and the entrusted entities listed  
in Article 53(1) point 2 of the Financial 
Regulation . Member States were already out of the scope 
of this Article (paragraph below). It is proposed to exclude from the scope of this article all entrusted entities. 
By way of exception, when the interest calculated 
in accordance with the provisions of the first subparagraph is lower than or equal to EUR 200, it shall be paid to th e creditor only upon a demand 
submitted within two months of receiving late By way of exception, when the interest calculated 
in accordance with the provisions of the first subparagraph is lower than or equal to EUR 200, it shall be paid to the creditor only upon a demand 
submitted within two months of receiving late  
EN  Error! Unknown document property name.  EN payment. payment. 
The first and the second subparagraphs shall not 
apply to Member States. The first and the second subparagraphs shall not 
apply to Member States.   
6. Each institution shall submit to the 
budgetary authority a report on the compliance with the time-limits and on the suspension of the time-limits laid down in paragraphs 1 to 5. The report of the Commission shall be annexed to the summary of the annual activ ity reports referred to 
in Article 60(7) of th e Financial Regulation. 6. Each institution shall submit to the 
budgetary authority a report on the compliance with the time-limits and on the suspension of the time-limits laid down in paragraphs 1 to 5. The report of the Commission sh all be annexed to the 
summary of the annual activ ity reports referred to 
in Article 60(7) of th e Financial Regulation.  
CHAPTER  7 
IT SYSTEMS  CHAPTER  7 
IT SYSTEMS   
Article 107 
Description of IT systems 
(Article 84 of the Financial Regulation) Article 107 
Description of IT systems 
(Article 84 of the Financial Regulation)  
Where computer systems and subsystems are used 
to process budget implementation operations, a full and up-to-date description of each system or subsystem shall be required. Where computer systems and subsystems are used 
to process budget implementation operations, a full and up-to-date descript ion of each system or 
subsystem shall be required.  
Each description shall de fine the content of all 
data fields and describe how the system treats each individual operation. It shall show in detail how the system guarantees the existence of a complete audit trail for each operation. Each description shall de fine the content of all 
data fields and describe how the system treats each individual operation. It  shall show in detail 
how the system guarantees the existence of a complete audit trail for each operation.  
EN  Error! Unknown document property name.  EN Article 108 
Periodical save 
(Article 84 of the Financial Regulation) Article 108 
Periodical save 
(Article 84 of the Financial Regulation)  
The data in computer systems and subsystems 
shall be saved periodically and kept in a safe place. The data in computer systems and subsystems 
shall be saved periodically and kept in a safe place.  
CHAPTER  8 
INTERNAL AUDITOR  CHAPTER  8 
INTERNAL AUDITOR   
Article 109 
Appointment of the internal auditor 
(Article 85 of the Financial Regulation) Article 109 
Appointment of the internal auditor 
(Article 85 of the Financial Regulation)  
1. Each institution shall appoint its internal 
auditor in accordance w ith arrangements adapted 
to its specific features and requirements. The institution shall inform the budgetary authority of 
the appointment of the internal auditor. 1. Each institution shall appoint its internal 
auditor in accordance w ith arrangements adapted 
to its specific features and requirements. The institution shall inform the budgetary authority of the appointment of the internal auditor.  
2. Each institution shall determine, in 
accordance with its specific features and its requirements, the scope of the mission of the internal auditor and shall lay down in detail the objectives and procedures for the exercise of the internal audit function with due respect for international internal audit standards. 2. Each institution shall determine, in 
accordance with its specific features and its requirements, the scope of the mission of the internal auditor and shall lay down in detail the objectives and procedures for the exercise of the internal audit function with due respect for international internal audit standards.  
EN  Error! Unknown document property name.  EN 3. The institution may appoint as internal 
auditor, by virtue of their particular competence, an official or other servant covered by the Staff Regulations chosen from nationals of the Member States. 3. The institution may appoint as internal 
auditor, by virtue of thei r particular competence, 
an official or other se rvant covered by the Staff 
Regulations chosen from nationals of the Member States.  
4. If two or more institutions appoint the 
same internal auditor they shall make the necessary arrangements for him to be declared liable for his actions as laid down in Article 114. 4. If two or more institutions appoint the 
same internal auditor they shall make the necessary arrangements for him to be declared liable for his actions as laid down in Article 114.  
5. The institution shall inform the budgetary 
authority when the duties of the internal auditor are terminated. 5. The institution shall inform the budgetary 
authority when the duties of the internal auditor are terminated.  
Article 110 
Operational resources 
(Article 86 of the Financial Regulation) Article 110 
Operational resources 
(Article 86 of the Financial Regulation)  
The institution shall provide the internal auditor 
with the resources required for the proper performance of his audit function and a mission charter detailing his task s, duties and obligations. The institution shall provid e the internal auditor 
with the resources required for the proper performance of his audit function and a mission charter detailing his task s, duties and obligations.  
Article 111 
Work programme 
(Article 86 of the Financial Regulation) Article 111 
Work programme 
(Article 86 of the Financial Regulation)  
1. The internal auditor shall adopt his work 
programme and shall subm it it to the institution. 1. The internal auditor shall adopt his work 
programme and shall subm it it to the institution.  
EN  Error! Unknown document property name.  EN 2. The institution may ask the internal auditor 
to carry out audits not included in the work programme referred to in paragraph 1. 2. The institution may ask the internal auditor 
to carry out audits not included in the work programme referred to in paragraph 1.  
Article 112 
Reports of the internal auditor 
(Article 86 of the Financial Regulation) Article 112 
Reports of the internal auditor 
(Article 86 of the Financial Regulation)  
1. The internal auditor shall submit to the 
institution the annual internal audit report 
provided for in Article 86(3) of the Financial 
Regulation, indicating the number and type of internal audits carried out, the principal recommendations made a nd the action taken on 
those recommendations. 1. The internal auditor shall submit to the 
institution the annual internal audit report provided for in Article 86(3) of the Financial Regulation, indicating th e number and type of 
internal audits carried out, the principal recommendations made a nd the action taken on 
those recommendations.  
That annual report shall also mention any 
systemic problems detected by the specialised panel set up pursuant to Article 66(4) of the Financial Regulation. That annual report shall also mention any 
systemic problems detected by the specialised panel set up pursuant to Article 66(4) of the Financial Regulation.  
2. Each institution shall consider whether the 
recommendations made in the reports of its internal auditor are suitable for an exchange of best practices with the other institutions. 2. Each institution shall consider whether the 
recommendations made in the reports of its internal auditor are suitab le for an exchange of 
best practices with the other institutions.  
3. The internal auditor shall, during the 
elaboration of his report, particularly focus on the 
overall compliance with the principle of sound financial management and shall ensure that appropriate measures have been taken in order to 3. The internal auditor shall, during the 
elaboration of his report, particularly focus on the overall compliance with the principle of sound financial management and shall ensure that appropriate measures have been taken in order to  
EN  Error! Unknown document property name.  EN steadily improve and enhance it s application. steadily improve and enhance its application. 
Article 113 
Independence 
(Article 87 of the Financial Regulation) Article 113 
Independence 
(Article 87 of the Financial Regulation)  
The internal auditor shall enjoy complete 
independence in the conduc t of his audits. He may 
not be given any instructi ons nor be restricted in 
any way as regards the performance of the functions which, by virtue of his appointment, are assigned to him under the Financial Regulation. The internal auditor shall enjoy complete 
independence in the conduc t of his audits. He may 
not be given any instructi ons nor be restricted in 
any way as regards the performance of the functions which, by virtue of his appointment, are assigned to him under the Financial Regulation.  
Article 114 
Liability of the internal auditor 
(Article 87 of the Financial Regulation) Article 114 
Liability of the internal auditor 
(Article 87 of the Financial Regulation)  
The institution alone, pr oceeding in accordance 
with this Article, may act to have the internal auditor, as an official or  other servant subject to 
the Staff Regulations, declared liable for his actions. The institution alone, proceeding in accordance 
with this Article, may act to have the internal auditor, as an official or  other servant subject to 
the Staff Regulations, declared liable for his actions.  
The institution shall take a reasoned decision to 
open an investigation. That decision shall be communicated to the interested party. The institution may put in char ge of the investigation, 
under its direct responsibility, one or more officials of a grade equal to or higher than that of the member of staff concerned. In the course of the investigation, the views of the interested party 
shall be heard. The institution shall take a reasoned decision to 
open an investigation. That decision shall be 
communicated to the interested party. The institution may put in char ge of the investigation, 
under its direct respons ibility, one or more 
officials of a grade equal to or higher than that of the member of staff con cerned. In the course of 
the investigation, the views of the interested party 
shall be heard.  
EN  Error! Unknown document property name.  EN The investigation report sh all be communicated to 
the interested party, who shall then be heard by the institution on the subject of that report. The investigation report shall be communicated to 
the interested party, who shall then be heard by 
the institution on the subject of that report.  
On the basis of the report and the hearing, the 
institution shall adopt either a reasoned decision terminating the proceed ings or a reasoned 
decision in accordance with Articles 22, 86 and Annex IX of the Staff Regulations. Decisions imposing disciplinary measures or financial penalties shall be notified to the interested party and communicated, for information purposes, to the other institutions and the Court of Auditors. On the basis of the re port and the hearing, the 
institution shall adopt e ither a reasoned decision 
terminating the proceedings or a reasoned decision in accordance w ith Articles 22, 86 and 
Annex IX of the Staff Regulations. Decisions imposing disciplinary m easures or financial 
penalties shall be notified to the interested party and communicated, for information purposes, to the other institutions and the Court of Auditors.  
The interested party may bring an action in 
respect of such decisions  before the Court of 
Justice of the European Communities, as provided for in the Staff Regulations. The interested party may bring an action in 
respect of such decisions  before the Court of 
Justice of the European Communities, as provided for in the Staff Regulations.  
Article 115 
Action before the Court of Justice of the European 
Communities 
(Article 87 of the Financial Regulation) Article 115 
Action before the Court of Justice of the European 
Communities 
(Article 87 of the Financial Regulation)  
Without prejudice to the remedies allowed by the 
Staff Regulations, the inte rnal auditor may bring 
an action directly before the Court of Justice of 
the European Communities in respect of any act relating to the performa nce of his duties as 
internal auditor. Such an action must be lodged 
within three months r unning from the calendar 
day on which the act in question is notified. Without prejudice to the remedies allowed by the 
Staff Regulations, the inte rnal auditor may bring 
an action directly before the Court of Justice of the European Communities in respect of any act relating to the performa nce of his duties as 
internal auditor. Such an action must be lodged 
within three months r unning from the calendar 
day on which the act in question is notified.  
Such actions shall be investigated and heard as 
provided for in Article 91(5) of the Staff Such actions shall be investigated and heard as 
provided for in Article 91(5) of the Staff  
EN  Error! Unknown document property name.  EN Regulations of Offici als of the European 
Communities. Regulations of Officials of the European 
Communities. 
 
EN  Error! Unknown document property name.  EN E:\_common\RF & MODEX\REVISION RF-MODEX 2010\ 2009.11.10 Working document\V ersion CIS\IMPLEMENTING RU LES title V and onwards - W ork doc - FR review 2010.doc 
 
WORKING  DOCUMENT:  TABLE IMPLEMENTING RULES (II/II)  
Commission Regulation 2342/2002 Prop osed amendment Justification 
TITLE  V 
PROCUREMENT TITLE  V 
PROCUREMENT  
CHAPTER  1 
GENERAL PROVISIONS  CHAPTER  1 
GENERAL PROVISIONS   
SECTION 1 
SCOPE AND AWARD PRINCIPLES  SECTION 1 
SCOPE AND AWARD PRINCIPLES   
Article 116 
Definitions and scope 
(Article 88 of the Financial Regulation) Article 116 
Definitions and scope 
(Article 88 of the Financial Regulation)  
1. Building contracts cover the purchase, long 
lease, usufruct, leasing, rental or hire purchase, with or without option to buy, of land, existing buildings or other real estate. 1. Building contracts cover the purchase, long 
lease, usufruct, leasing, rental or hire purchase, with or without option to buy, of land, existing buildings or other real estate.  
2. Supply contracts cover the purchase, 
leasing, rental or hire pur chase, with or without 
option to buy, of products. A contract for the 2. Supply contracts cover the purchase, 
leasing, rental or hire pur chase, with or without 
option to buy, of products. A contract for the  
 
EN  Error! Unknown document property name.  EN supply of products and, inci dentally, for sitting and 
installation shall be consid ered a supply contract.  supply of products and, inci dentally, for sitting and 
installation shall be consid ered a supply contract.  
3. Works contracts cover either the execution, 
or both the execution and design, of works or a work related to one of the activities referred to in Annex I to Directive 2004/ 18/EC of the European 
Parliament and of the Council
9 or the realisation, by 
whatever means, of a work corresponding to the requirements specified by the contracting authority.  A 'work' mean s the outcome of building 
or civil engineering works taken as a whole that is 
sufficient of itself to fulfil an economic or technical function. 3. Works contracts cover either the execution, 
or both the execution and design, of works or a work related to one of the activities referred to in Annex I to Directive 2004/ 18/EC of the European 
Parliament and of the Council
10 or the realisation, 
by whatever means, of a work corresponding to the requirements specified by the contracting authority.  A 'work' mean s the outcome of building 
or civil engineering works taken as a whole that is 
sufficient of itself to fulfil an economic or technical function.  
4. Service contracts cover all intellectual and 
non-intellectual services ot her than those covered 
by supply contracts, works contracts and building contracts.  Those services  are listed in Annexes IIA 
and IIB to Directive 2004/18/EC.  4. Service contracts cover all intellectual and 
non-intellectual services ot her than those covered 
by supply contracts, works contracts and building contracts.  Those services  are listed in Annexes IIA 
and IIB to Directive 2004/18/EC.   
5. A contract coveri ng both products and 
services shall be considered a service contract where the value of the services in question exceeds that of the products included in the contract. 5. A contract coveri ng both products and 
services shall be considered a service contract where the value of the services in question exceeds that of the products included in the contract.  
A contract having as its object services and 
involving works that are onl y incidental in relation 
to the principal object of  the contract shall be A contract having as its object services and 
involving works that are onl y incidental in relation 
to the principal object of  the contract shall be  
                                                 
9 OJ L 134, 30.4.2004, p. 114. 
10 OJ L 134, 30.4.2004, p. 114. 
 
EN  Error! Unknown document property name.  EN considered a service contract. considered a service contract. 
A contract having as its obj ect services covered by 
Annex IIA to Directive 2004/18/EC and services covered by Annex IIB thereto shall be considered as covered by Annex IIA if the value of the services 
listed in that Annex exceed s that of the services 
listed in Annex IIB. A contract having as its obj ect services covered by 
Annex IIA to Directive 2004/18/EC and services covered by Annex IIB thereto shall be considered as covered by Annex IIA if the value of the services 
listed in that Annex exceed s that of the services 
listed in Annex IIB.  
5a. The description of the various types of 
contract is based on the reference nomenclature constituted by the common procurement vocabulary (CPV) within the meaning of Regulation (EC) No 2195/2002 of the European Parliament and of the Council
11. 5a. The description of the various types of 
contract is based on the reference nomenclature constituted by the common procurement vocabulary (CPV) within the meaning of Regulation (EC) No 2 195/2002 of the European 
Parliament and of the Council
12.  
In the event of differences between the CPV and 
the statistical classifica tion of economic activities 
in the European Community (NACE), listed in Annex I to Directive 2004/18/EC, or between the CPV and the Central Product Classification (CPC) (provisional version), listed in Annex II to that Directive, the NACE nomenclature or the CPC nomenclature respectively shall take precedence. In the event of differences between the CPV and 
the statistical classification of economic activities in the European Community
 Union  (NACE), listed 
in Annex I to Directive 2004/18/EC, or between the 
CPV and the Central Product Classification (CPC) (provisional version), listed in Annex II to that Directive, the NACE nomenclature or the CPC nomenclature respectively shall take precedence.  
6. The terms «contractor», «supplier» and 
«service provider» refer to any natural or legal person or public entity or consortium of such persons and/or bodies wh ich offers to execute 6. The terms «contractor», «supplier» and 
«service provider» refer to any natural or legal person or public entity or consortium of such persons and/or bodies wh ich offers to execute  
                                                 
11 OJ L 340, 16.12.2002, p. 1. 
12 OJ L 340, 16.12.2002, p. 1. 
 
EN  Error! Unknown document property name.  EN works, supply products and provide services 
respectively. The terms «economic operator» covers «contractors», «suppliers» and «service providers». Economic operators who have submitted a tender are referred to as «tenderers». Those who have asked to be allowed to take part in a restricted procedure, a competitive dialogue, or a negotiated procedure are referred to as «candidates». works, supply products and provide services 
respectively. The terms «economic operator» covers «contractors», «suppliers» and «service providers». Economic operators who have submitted a tender are referred to as «tenderers». Those who have asked to be allowed to take part in a restricted procedure, a competitive dialogue, or a negotiated procedure are referred to as «candidates». Economic operators registered in a 
list of vendors according to Article 128(1)(b) are 
referred to as "vendors".  
Consortia of economic operato rs shall be authorised 
to submit tenders or to be  candidates. Contracting 
authorities may not demand that consortia must have a given legal form in order to be allowed to submit a tender or request to take part, but the 
consortium selected may be required to adopt a given legal form after it has been awarded the contract if this change is necessary for proper performance of the contract. Consortia of economic operato rs shall be authorised 
to submit tenders or to be  candidates. Contracting 
authorities may not demand that consortia must have a given legal form in order to be allowed to submit a tender or request to take part, but the 
consortium selected may be required to adopt a given legal form after it has been awarded the contract if this change is necessary for proper performance of the contract.  
7. Departments of the Community institutions 
shall be considered to be  contracting authorities, 
save where they conclude between themselves administrative arrangements for the provision of services, the supply of products or the execution of works. 7. Departments of the Community
 Union  
institutions shall be cons idered to be contracting 
authorities, save where they conclude between themselves administrative arrangements for the provision of services, the supply of products ,
 or for 
the execution of works or for the implementation 
of building contracts . The executive agencies are part of what is 
considered direct management, are located in Brussels and are established to execute programmes on the Commission's behalf. It should be possible that  they can rely on 
Commission's in-house services to cover their administrative ne eds without recourse 
to public procurement as an option. 
 
EN  Error! Unknown document property name.  EN Article 117 
Framework contracts and specific contracts 
(Article 88 of the Financial Regulation) Article 117 
Framework contracts and specific contracts 
(Article 88 of the Financial Regulation) Reformulation and repositioning of the 
paragraphs in order to make the concept and functioning of the framework contract more understandable  
 
EN  Error! Unknown document property name.  EN 1. Where a framework contract is to be 
concluded with several economic operators it shall be concluded with at leas t three operators provided 
that there is a sufficient number of economic operators who satisfy the selection criteria or a sufficient number of admissible tenders which meet the award criteria. 
A framework contract with a number of economic 
operators may take the form of contracts which are 
separate but concluded in identical terms. 
The term of a framework contract may not exceed 
four years, save in exceptional cases duly justified in particular by the s ubject of the framework 
contract. 
In sectors subject to a ra pid price and technological 
evolution, framework cont racts without reopening 
of competition shall contain a stipulation either on a 
mid-term review or on  a benchmarking system. 
After the mid-term revi ew, if the conditions 
initially laid down are no longer geared to the price or technological evolution, the contracting authority 
may not use the framework contract concerned and 
shall take appropriate measures to terminate it. 
2. Specific contracts based on framework 
contracts shall be awarde d in accordance with the 
terms of the framework contract, only between the contracting authorities a nd the economic operators 1.
 Where a framework contract is to be 
concluded with several economic operators it shall 
be concluded with at leas t three operators provided 
that there is a sufficient number of economic 
operators who satisfy the selection criteria or a 
sufficient number of admissible tenders which me et 
the award criteria.  
A framework contract with a number of economic 
operators may take the form of contracts which are 
separate but concluded in identical terms.  
The term of a framework contract may not exceed 
four years, save in exceptional cases duly j ustified 
in particular by the s ubject of the framework 
contract.  
In sectors subject to a ra pid price and technological 
evolution, framework cont racts without reopening 
of competition shall contain a stipulation either on a 
mid-term review or on a benchmark ing system. 
After the mid -term review, if the conditions 
initially laid down are no longer geared to the price 
or technological evolution, the contracting authority 
may not use the framework contract concerned and 
shall take appropriate measures to termina te it. 
2. Specific contracts based on framework 
contracts shall be awarde d in accordance with the 
terms of the framework contract, only between the 
contracting authorities a nd the economic operators  
 
EN  Error! Unknown document property name.  EN originally party to the framework contract. 
When awarding specific cont racts, the parties may 
not make substantial amendments to the terms laid down in that framework cont ract, in particular in 
the case referred to in paragraph 3. 
3. Where a framework contract is concluded 
with a single economic operator, the specific contracts shall be awarded within the limits of the terms laid down in the framework contract. 
For the award of those specific contracts, 
contracting authorities ma y consult in writing the 
economic operator party to the framework contract, requesting it to supplement its tender if necessary. 
4. Specific contracts based on framework 
contracts concluded with  a number of economic 
operators shall be awarded in accordance with the following arrangements: 
(a) by application of the terms laid down in the 
framework contract without reopening competition; 
(b) where not all the terms are laid down in the 
framework contract, after the parties have again 
competed on the basis of the same and, if necessary, more precisely formulated terms, and, 
where appropriate, on th e basis of other terms 
referred to in the specification for the framework contract. originally party to the framework contract.
 
When awarding  specific contracts,  the parties may 
not make substantial amendments to the terms laid 
down in that framework cont ract, in particular in 
the case referred to in paragraph 3.  
3. Where a framework contract is concluded 
with a single economic operator, the sp ecific 
contracts shall be awarded within the limits of the 
terms laid down in the framework contract.  
For the award of those specific contracts, 
contracting authorities ma y consult in writing the 
economic operator party to the framework contract, 
requestin g it to supplement its tender if necessary.  
4. Specific contracts based on framework 
contracts concluded with  a number of economic 
operators shall be awarded in accordance with the 
following arrangements:  
(a) by application of the terms laid down in the 
framework contract without reopening competition;  
(b) where not all the terms are laid down in the 
framework contract, after the parties have again 
competed on the basis of the same and, if 
necessary, more precisely formulated terms, and, 
where appropriate, on the basis of other terms 
referred to in the specification for the framework 
contract.  
 
EN  Error! Unknown document property name.  EN For every specific contract to be awarded in 
accordance with the arrangements in point (b) of the first subparagraph, cont racting authorities shall 
consult in writing the ec onomic operators capable 
of performing the contract , fixing a time limit 
which is sufficiently long to allow tenders to be submitted. Tenders shall be submitted in writing. Contracting authorities shall award each specific contract to the tenderer who has submitted the best 
tender on the basis of the award criteria set out in 
the specification for the framework contract. For every specific contract to be awarded in 
accordance with the arrangements in point (b) of 
the first subparagraph, contracting authorities 
shall consult in writing the economic operators 
capable of performing the contract, fixing a time 
limit which is sufficiently long to allow tenders 
to be submitted. Tenders shall be submitted in 
writing. Contracting author ities shall award each 
specific contract to the tenderer wh o has 
submitted the best tender on the basis of the 
award criteria set out in the specification for the 
framework contract.  
1. The duration of a framework contract may 
not exceed four years, save in exceptional 
cases duly justified in particular by the subject 
of the framework contract.  
 Specific contracts based on framework 
contracts shall be awarded in accordance with 
the terms of the framework contract, only 
between the contracting authorities and the  
contractors of the framework contract.  
 When awarding specific contracts, the parties 
may not make substantial changes  of the 
framework contract.  
2. Where a framework contract is concluded 
with a single economic operator, the specific 
contracts shall be awarded within the limits of 
the terms laid down in the framework 
 
EN  Error! Unknown document property name.  EN contract.  
    In duly justified circumstances, contracting 
authorities may consult in writing the 
contractor, requesting it to supplement its 
tender if necessary.  
3. Where a framework contract is to be 
concluded with several economic operators, it 
shall be concluded with at least three operators, 
provided that there is a sufficient  number of 
economic operators who satisfy the selection 
criteria or a sufficien t number of admissible 
tenders which meet the award criteria.  
A framework contract with several economic 
operators may take the form of separate 
contracts which contain identical terms.  
Specific contracts based on framework contracts 
concluded with several economic operators shall 
be awarded in accordance with the following 
arrangements:  
(a) in case of framework contracts without 
reopening of competition  by application of the 
terms laid down in the framework contract  
without reopening competition ; 
(b) in case of framework contracts with 
reopening of competition  where not all the terms 
are lai d down in the framework contract , after the 
 
EN  Error! Unknown document property name.  EN parties have again competed on the basis of the 
same and, if necessary, more precisely 
formulated terms, and, where appropriate, on 
the basis of other term s referred to in the 
specification for the framework contract.  
For every specific contract to be awarded in 
accordance with the arra ngements in point (b) 
of the  first  third  subparagraph, contracting 
authorities shall consult in writing the 
contractors of the framework contract, fixing a 
time limit which is sufficiently long to allow 
tenders to be submitted. Tenders shall be 
submitted in writing. Contracting authorities 
shall award each specific contract to the 
tenderer who has submitted the best tender on 
the basis of the award criteria set out in the 
specification for the framework contract.  
4.  In sectors subject to a rapid price and 
technological evolution,  framework contracts 
without reopening of competition shall contain a 
stipulation either on a mi d-term review or on a 
benchmarking system. After the mid-term  
review, if the conditions initially laid down are 
no longer adapted to the price or technological 
evolution, the contractin g authority may not use 
the framework contract concerned and shall 
take appropriate measures to terminate it.  
 
 
EN  Error! Unknown document property name.  EN 5. Only specific contracts based on framework 
contracts shall be preceded by a budgetary commitment. 5. Only specific contracts based on framework 
contracts shall be preceded by a budgetary commitment.  
SECTION 2 
PUBLICATION  SECTION 2 
PUBLICATION   
Article 118 
Advertising of contracts covered by Directive 
2004/18/EC, with the exception of contracts 
referred to in Annex IIB thereto 
(Article 90 of the Financial Regulation) Article 118 
Advertising of contracts covered by Directive 
2004/18/EC, with the exception of contracts 
referred to in Annex IIB thereto 
(Article 90 of the Financial Regulation)  
1. Publication for contr acts with a value equal 
to or above the thresholds laid down in Articles 157 and 158 shall consist in a pre-information notice, a 
contract notice or simplifie d contract notice and an 
award notice. 1. Publication for contr acts with a value equal 
to or above the thresholds laid down in Articles 157 
and 158 shall consist in a pre -information notice,  a 
contract notice or simplifie d contract notice and an 
award notice. A prior information notice shall be 
compulsory only where the contracting 
authority intends to make use of the possibility 
of shortening time limits for receipt of tenders in 
accordance with Article 140(4).  Deletion of Article 157 IR is proposed: 
consistency change 
2. The pre-information no tice is the notice by 
which the contracting authorities make known, by way of indication, the estimated total value of contracts and framework c ontracts, by category of 
service or groups of pr oducts, and the essential 
characteristics of works c ontracts which they intend 2. The pre
-prior  information notice is the 
notice by which the contra cting authorities make 
known, by way of indicati on, the estimated total 
value and subject  of contracts and framework 
contracts, by category of service or groups of 
products, and the essent ial characteristics of works  
Deletion of Article 157 IR is proposed: 
consistency change 
 
EN  Error! Unknown document property name.  EN to award during a budgeta ry year, but excluding 
contracts under the negotiated procedure without prior publication of a c ontract notice. The pre-
information notice shall be compulsory only where the estimated total value of the contracts is equal to or above the thresholds laid down in Article 157 
and the contracting authority  intends to make use of 
the possibility of shortening time limits for receipt of tenders in accordance with Article 140(4). contracts
 which they intend to award during a 
budgetary  financial  year, but excluding contracts 
under the negotiated pro cedure without prior 
publication of a contract notice. The pre -
information notice shall be compulsory only where 
the estimated total value of the contracts is equal to 
or above the thresholds laid down in Article 157 
and the contracting authority  intends to make use of 
the possibility of shortening time limits for receipt 
of tenders in accordance with Article 1 40(4).  
The pre-information notice sh all be published either 
by the Office for Official Publications of the European Communities (OPOCE) or by the contracting authorities th emselves on their buyer 
profile as referred to in poi nt (2)(b) of Annex VIII 
to Directive 2004/18/EC. The pre
-prior  information notice shall be published 
either by the Office for Official  Publications Office  
of the European Union Communities (Publications  
Office  OPOCE ) or by the contracting authorities 
themselves on their buyer pr ofile as referred to in 
point (2)(b) of Anne x VIII to Directive 
2004/18/EC. Change of name for the Publications Office 
according to Decision 2009/496/EC,Euratom. 
The pre-information notice shall be sent to OPOCE 
or published on the buyer profile as soon as possible and in any event by no later than 31 March 
of each budgetary year in the case of supply and service contracts and, in the case of works contracts, as soon as po ssible after the decision 
approving the programme for those contracts. The compulsory
 pre-prior  information notice shall 
be sent to the Publications Office  OPOCE  or 
published on the buyer profile as soon as possible and in any event by no later than 31 March of each budgetary
 financial  year in the case of supply and 
service contracts and, in the case of works contracts, as soon as po ssible after the decision 
approving the programme for those contracts.  
Contracting authorities which publish the pre-
information notice on thei r buyer profile shall send 
to OPOCE, electronically and using the format and transmission procedures sp ecified in point (3) of Contracting authorities which publish the pre
-prior  
information notice on thei r buyer profile shall send 
to the Publications Office  OPOCE , electronically 
and using the format and transmission procedures  
 
EN  Error! Unknown document property name.  EN Annex VIII to Directive 2004/18/EC, a notice 
announcing the publication of a pre-information notice on a buyer profile. specified in point (3) of  Annex VIII to Directive 
2004/18/EC, a notice announci ng the publication of 
a pre
-prior  information notice on a buyer profile. 
3. The contract notice is the means by which 
the contracting authorities make known their intention to launch a pro cedure for the award of a 
contract or framework contract or to set up a dynamic purchasing system in accordance with Article 125a. Without prejudice to contracts concluded after a negotiated  procedure as referred 
to in Article 126, The contract notice shall be compulsory for the following contracts: 3. The contract notice is the means by which 
the contracting authorities make known their intention to launch a pro cedure for the award of a 
contract or framework contract or to set up a dynamic purchasing system in accordance with Article 125a. Without prejudice to contracts concluded after a negotiated  procedure as referred 
to in Article 126, T
the contract notice shall be 
compulsory for the following contracts:  
(a) contracts with an estimated value equal to 
or above the thresholds laid down in points (a) and (c) of Article 158(1); (a) contracts with an estimated value equal to 
or above the thresholds laid down in points (a) and (c) of Article 158(1);  
(b) research and development contracts listed in 
category 8 of Annex II A with an estimated value of equal to or a bove the threshold laid down in in 
point (b) of Article 158( 1) for research and 
development contracts listed. (b) research and development contracts listed in 
category 8 of Annex II A with an estimated value of equal to or above the threshold laid down in in
 
point (b) of Article 158( 1) for research and 
development contracts listed. Typing  
It shall not be compulsory for specific contracts 
based on framework contracts. It shall not be compulsory for specific contracts 
based on framework contracts.  
Contracting authorities which wish to award a 
specific contract based on a dynamic purchasing system shall make known their intention by means of a simplified contract notice. Contracting authorities which wish to award a 
specific contract based on a dynamic purchasing system shall make known their intention by means of a simplified contract notice.  
 
EN  Error! Unknown document property name.  EN In an open procedure the contract notice shall 
specify the date, time a nd, where appropriate, place 
of the meeting of the opening committee, which shall be open to the tenderers. In an open procedure the contract notice shall 
specify the date, time a nd, where appropriate, place 
of the meeting of the opening committee, which shall be open to the tenderers.  
Contracting authorities sh all state whether or not 
they authorise variants and shall specify the minimum capacity levels they demand if they make use of the possibility pr ovided for in the second 
subparagraph of Article 135( 2). They shall set out 
the selection criter ia referred to in  Article 135 that 
they intend to use, the minimum number of candidates they plan to i nvite to tender and, where 
appropriate, the maxi mum number, and the 
objective and non-discriminatory criteria they intend to apply in order to limit the number, in accordance with the second subparagraph of Article 123(1). Contracting authorities sh all state whether or not 
they authorise variants and shall specify the minimum capacity levels they demand if they make use of the possibility pr ovided for in the second 
subparagraph of Article 135( 2). They shall set out 
the selection criter ia referred to in  Article 135 that 
they intend to use, the minimum number of candidates they plan to i nvite to tender and, where 
appropriate, the maxi mum number, and the 
objective and non-discriminatory criteria they intend to apply in order to limit the number, in accordance with the second subparagraph of Article 
123(1).  
Where there is unrestricted, direct and full access to 
the call for tenders by electronic means, in particular in the dynamic purchasing systems referred to in Article 125a, the Internet address at which these documents can be consulted shall appear in the contract notice. Where there is unrestricted, direct and full access to 
the call for tenders by electronic means, in particular in the dynamic purchasing systems referred to in Article 125a, the Internet address at which these documents can be consulted shall appear in the contract notice.  
Contracting authorities wishing to organise a 
contest shall issue a notice announcing their intention. Contracting authorities wishing to organise a 
contest shall issue a notice announcing their intention.  
Where appropriate, contra cting authorities shall 
specify in the contract no tice that the procurement Where appropriate, contra cting authorities shall 
specify in the contract no tice that the procurement  
 
EN  Error! Unknown document property name.  EN procedure is an interi nstitutional procurement 
procedure. In such cases, the contract notice shall indicate the institutions, executive agencies or bodies referred to in Arti cle 185 of the Financial 
Regulation which are invol ved in the procurement 
procedure, the institution responsible for the procurement procedure and the global volume of the contracts for all those institutions, executive agencies or bodies. procedure is an interi nstitutional procurement 
procedure. In such cases, the contract notice shall indicate the institutions , executive agencies or 
bodies referred to in Article s
 185 and 185a  of the 
Financial Regulation which are involved in the procurement procedure, the institution responsible for the procurement procedure and the global volume of the contracts for all those institutions, executive agencies or bodies. 
4. The award notice shall give the outcome of 
the procedure for the award of contracts, framework contracts or  contracts based on a 
dynamic purchasing system. In the case of contracts with a value equal to or above the thresholds laid 
down in Article 158, the award notice shall be 
compulsory. It shall not be  compulsory for specific 
contracts based on framework contracts. 4. The award notice shall give the outcome of 
the procedure for the award of contracts, framework contracts or  contracts based on a 
dynamic purchasing system. In the case of contracts with a value equal to or above the thresholds laid 
down in Article 158, the award notice shall be compulsory. It shall not be  compulsory for specific 
contracts based on framework contracts.  
The award notice shall be sent to the OPOCE no 
later than 48 calendar days  from the date on which 
the contract or framework contract is signed. However, notices relating to contracts based on a dynamic purchasing system may be grouped together on a quarterly basis. In such cases, they shall be sent to the OPOCE no later than 48 days after the end of each quarter. The award notice shall be sent to the Publications 
Office  OPOC E no later than 48 calendar days from 
the date on which the contract or framework contract is signed. However, notices relating to contracts based on a dynamic purchasing system may be grouped together on a quarterly basis. In such cases, they shall be sent to the Publications 
Office  OPOCE  no later than 48 days after the end 
of each quarter.  
Contracting authorities which have held a design 
contest shall send the OPOCE a notice of the Contracting authorities which have held a design 
contest shall send the Publications Office  OPOCE   
 
EN  Error! Unknown document property name.  EN results of the contest. a notice of  the results of the contest.  
In case of interinstitutional procedures, the 
award notice shall be sent by the contracting 
authority responsible for the procedure.  
The award notice shall also  be sent to the OPOCE 
in the case of a contract or a framework contract with a value equal to or above the thresholds laid 
down in Article 158 and awarded pursuant to a negotiated procedure without  prior publication of a 
contract notice, in sufficient time for the publication to occur before the signature of the contract, in accordance with the terms and conditions set out in  Article 158a(1). The award notice shall also be sent to the 
Publications Office
 OPOCE  in the case of a 
contract or a framework c ontract with a value equal 
to or above the thresholds  laid down in Article 158 
and awarded pursuant to a negotiated procedure without prior publication of  a contract notice, in 
sufficient time for the publication to occur before the signature of the contr act, in accordance with the 
terms and conditions set out in Article 158a(1).  
Information relating to the value and contractors of 
specific contracts based on a framework contract during a financial year sh all be published on the 
internet website of the contracting authority no later than 31 March following the end of that financial year if, as a result of th e conclusion of a specific 
contract or of the aggregate volume of the specific contracts, the thresholds referred to in Article 158 are exceeded. Information relating to the value and contractors of 
specific contracts based on a framework contract during a financial year sh all be published on the 
internet website of the contracting authority no later than 31 March following the end of that financial year if, as a result of th e conclusion of a specific 
contract or of the aggreg ate volume of the specific 
contracts, the thresholds referred to in Article 158 are exceeded.  
5. The notices shall be drawn up in accordance 
with the standard forms adopted by the Commission pursuant to Directive 2004/18/EC. 5. The notices shall be drawn up in accordance 
with the standard forms adopted by the Commission pursuant to Directive 2004/18/EC.  
 
EN  Error! Unknown document property name.  EN Article 119 
Advertising of contracts not  covered by Directive 
2004/18/EC, and of the contracts referred to in 
Annex IIB thereto 
(Article 90 of the Financial Regulation) Article 119 
Advertising of contracts not  covered by Directive 
2004/18/EC, and of the contracts referred to in 
Annex IIB thereto 
(Article 90 of the Financial Regulation)  
1. Contracts with a value below the thresholds 
laid down in Article 158 and the service contracts referred to in Annex IIB to Directive 2004/18/EC shall be advertised by appr opriate means in order to 
ensure competitive tendering and impartiality of the 
procurement procedure.  Such advertising shall involve: 1. Contracts with a value below the thresholds 
laid down in Article 158 and the service contracts referred to in Annex IIB to Directive 2004/18/EC shall be advertised by appr opriate means in order to 
ensure competitive tendering and impartiality of the 
procurement procedure.  Such advertising shall involve:  
(a) if no contract notice as referred to in Article 
118(3) has been published, notice of a call for expressions of interest for contracts covering a similar subject with a valu e greater than the amount 
referred to in Article 128(1); (a) if no
 a contract notice as referred to in 
Article 118(3) has been published , or a notice of a 
call for expressions of interest for contracts covering a similar subject with a value greater than the amount referred to in Article 128(1) 
129(1) ; Coordination of references 
 The amount referred to in Article 129(1) IR 
is Euro 60.000. 
(b) the annual publication of a list of contractors, specifying the subject and the value of 
the contract awarded, for contracts with a value greater than EUR 25000. (b) the annual publication of a list of 
contractors, specifying the subject and the value of 
the contract awarded, for contracts with a value greater than EUR 25000. 
 . 
2. A list of contractor s to whom building 
contracts and contracts declared secret in 
accordance with Article 126( 1)(j) are awarded shall 2. A list of contractor s to whom building 
contracts and contracts declared secret in 
accordance with Article 126( 1)(j) are awarded shall  
 
EN  Error! Unknown document property name.  EN be published only once a year , with an indication of 
the subject and value of th e contracts awarded. That 
list shall be sent to the budgetary authority. In the 
case of the Commission, it sh all be annexed to the 
summary of the annual activ ity reports referred to 
in Article 60(7) of th e Financial Regulation. be published only once a year , with an indication of 
the subject and value of th e contracts awarded. That 
list shall be sent to the budgetary authority. In the 
case of the Commission, it shall be annexed to the 
summary of the annual activ ity reports referred to 
in Article 60(7) of th e Financial Regulation. 
3. Information relating to contracts with a 
value greater than the amount  referred to in Article 
128(1) shall be sent to the Office for Official Publications of the European Communities; the annual lists of contractors shall be sent by no later 
than 31 March following the end of the financial year. 3. Information relating to contracts with a 
value greater than the amount  referred to in Article 
128(
1) 129(1)  that have not been the subject of 
an individual award notice  shall be sent to the 
Office for Official  Publications Office  of the 
European Communities ; the annual lists of 
contractors shall be sent by no later than 31 March  
30 June of the  following the end of the  financial 
year. 
 The amount referred to in Article 129(1) IR 
is Euro 60.000. 
Ex ante  advertising and the annual publication of 
the list of contractors fo r the other contracts shall 
be on the Internet site of the institutions; ex post publication shall take place by no later than 31 March of the following fina ncial year. Publication 
may also be in the Official Journal of the European 
Communities . Information relating to contracts with a value 
greater than the amount referred to in 
paragraph 2 point b above shall be published on 
the Internet site of the institution no later than 
30 June of the following financial year.  
Ex ante  advertising and the annual publication of 
the list of contractors fo r the other contracts shall 
be on the Internet si te of the institutions; ex post 
publication shall take place by no later than 31 
March of the following fina ncial year. Publication 
may also be in the Official Journal of the European 
Communities .  
 
EN  Error! Unknown document property name.  EN  
Article 120 
Publication of notices 
(Article 90 of the Financial Regulation) Article 120 
Publication of notices 
(Article 90 of the Financial Regulation)  
1. The Office for Official Publications of the 
European Communities shall publish the notices referred to in Articles 118 and 119 in the Official 
Journal of the European Communities  no later than 
twelve calendar days after their dispatch. 1. the Office for Official
 Publications Office  
of the European Communities  shall publish the 
notices referred to in Ar ticles 118 and 119 in the 
Official Journal of the European Communities  
Union  no later than twelve cal endar days after their 
dispatch.  
The period specified in the first subparagraph shall 
be reduced to five calendar days in the case of the fast-track procedures referred to in Article 142. The period specified in the first subparagraph shall 
be reduced to five calendar days in the case of the fast-track procedures referred to in Article 142.  
2. The contracting authorit ies must be able to 
provide evidence of th e date of dispatch. 2. The contracting authorit ies must be able to 
provide evidence of th e date of dispatch.  
Article 121 
Other forms of advertising 
(Article 90 of the Financial Regulation) Article 121 
Other forms of advertising 
(Article 90 of the Financial Regulation)  
In addition to the advertising provided for in 
Articles 118, 119 and 120, contracts may be advertised in any other wa y, notably in electronic 
form. Any such advertising shall refer to the notice 
published in the Official Journal of the European 
Communities , as provided for in Article 120, if one In addition to the adve rtising provided for in 
Articles 118, 119 and 120, contracts may be advertised in any other wa y, notably in electronic 
form. Any such advertising shall refer to the notice 
published in the Official Journal of the European 
Communities
 Union , as provided for in Article 120,  
 
EN  Error! Unknown document property name.  EN has been published, and may not precede the 
publication of that notice, which alone is authentic. if one has been published, and may not precede the 
publication of that notice, which alone is authentic. 
Such advertising may not introduce any 
discrimination between candi dates or tenderers nor 
contain details other than  those contained in the 
contract notice, if one has been published. Such advertising may not introduce any 
discrimination between candi dates or tenderers nor 
contain details other than  those contained in the 
contract notice, if one has been published.  
SECTION 3 
PROCUREMENT PROCEDURES  SECTION 3 
PROCUREMENT PROCEDURES   
Article 122 
Types of procurement procedure 
(Article 91 of the Financial Regulation) Article 122 
Types of procurement procedure 
(Article 91 of the Financial Regulation)  
1. Contracts shall be awarded by call for 
tender, using the open, re stricted or negotiated 
procedure after publication of a contract notice or 
by negotiated procedure without prior publication of a contract notice, wher e appropriate following a 
contest. 1. Contracts shall be awarded by call for 
tender, using the open, re stricted or negotiated 
procedure after publication of a contract notice or 
by negotiated procedure without prior publication of a contract notice, wher e appropriate following a 
contest.  
2. Calls for tenders are open where all 
interested economic operato rs may submit a tender. 
That applies also in the case of the dynamic purchasing systems referred to in Article 125a. 2. Calls for tenders are open where all 
interested economic operato rs may submit a tender. 
That applies also in the case of the dynamic purchasing systems referred to in Article 125a.  
Calls for tenders are restricted where all economic 
operators may ask to take  part but only candidates 
satisfying the selection criteria referred to in Article 135 and invited simultaneously and in writing by Calls for tenders are restricted where all economic 
operators may ask to take  part but only candidates 
satisfying the selection criteria referred to in Article 135 and invited simultaneously and in writing by  
 
EN  Error! Unknown document property name.  EN the contracting authoritie s may submit a tender or a 
solution under the competitive dialogue procedure referred to in Article 125b. the contracting authoritie s may submit a tender or a 
solution under the competitive dialogue procedure referred to in Article 125b. 
The selection phase may be repeated for each individual contract, al so in the case of a 
competitive dialogue, or may involve drawing up a list of potential candidate s under the restricted 
procedure referred to  in Article 128. The selection phase may be repeated for each 
individual contract, al so in the case of a 
competitive dialogue, or may involve drawing up a list of potential candidate s under the restricted 
procedure referred to in Article 128 (1)(a).
  
3. In a negotiated procedure, the contracting 
authorities shall consult te nderers of their choice 
who satisfy the selection criteria laid down in 
Article 135, and negotiate th e terms of the contract 
with one or more of them. 3. In a negotiated procedure, the contracting 
authorities shall consult te nderers of their choice 
who satisfy the selection criteria laid down in 
Article 135, and negotiate th e terms of the contract 
with one or more of them.  
In negotiated procedures where a contract notice is 
published, as referred to in Article 127, the 
contracting authorities shall simultaneously and in writing invite the selected  candidates to negotiate. In negotiated procedures where a contract notice is 
published, as referred to in Article 127, the 
contracting authorities shall simultaneously and in writing invite the selected  candidates to negotiate.  
4. Contests are procedures which enable the 
contracting authority to acquire, mainly in the fields of architecture and civil engineering or data processing, a plan or design proposed by a selection board after being put out to competitive tender with 
or without the award of prizes. 4. Contests are procedures which enable the 
contracting authority to acquire, mainly in the fields of architecture and civil engineering or data processing, a plan or design proposed by a selection board after being put out to competitive tender with 
or without the award of prizes.  
 
EN  Error! Unknown document property name.  EN Article 123 
Number of candidates in restricted or negotiated 
procedures 
(Article 91 of the Financial Regulation) Article 123 
Number of candidates in restricted or negotiated 
procedures 
(Article 91 of the Financial Regulation)  
1. In a restricted procedure, including the 
procedure referred to in Article 128, the number of candidates invited to subm it a tender may not be 
less than five, provided th at a sufficient number of 
candidates satisfy the selection criteria. 1. In a restricted procedure and
, including  the 
procedure s referred to in points (a) and (b) of  
Article 128 (1), the number of candidates invited to 
submit a tender may not be less than five, provided that a sufficient number of candidates satisfy the selection criteria.  
The contracting authority may also provide for a 
maximum number of twenty candidates, depending on the subject of the contract and on the basis of objective and non-discriminato ry selection criteria. 
In such cases, the range and criteria shall be indicated in the contract  notice or the call for 
expressions of interest referred to in Articles 118 and 119. The contracting authority may also provide for a 
maximum number of up to
 twenty candidates, 
depending on the subject of the contract and on the basis of objective and non- discriminatory selection 
criteria. In such cases, the range and criteria shall be indicated in the contract notice or the call for expressions of interest referred to in Articles 118 and 119. Clarification of ambiguity. 
In any event, the number of candidates invited to 
tender must be sufficient to ensure genuine competition. In any event, the number of candidates invited to 
tender must be sufficient to ensure genuine competition.  
2. In negotiated procedures and after a 
competitive dialogue, the number of candidates invited to negotiate or to tender may not be less 
than three, provided that  a sufficient number of 
candidates satisfy the selection criteria. 2. In negotiated procedures and after a 
competitive dialogue, the number of candidates invited to negotiate or to tender may not be less 
than three, provided that  a sufficient number of 
candidates satisfy the selection criteria.  
 
EN  Error! Unknown document property name.  EN The number of candidates invited to tender must be 
sufficient to ensure genuine competition. The number of candidates invited to tender must be 
sufficient to ensure genuine competition.  
The first and second subpara graphs shall not apply 
to the following: The first and second subpara graphs shall not apply 
to the following:  
(a) contracts involving ve ry small amounts, as 
referred to in Article 129(3); (a) contracts involving very low values  small 
amounts , as referred to in Article 129(3);  
(b) contracts for legal services within the 
meaning of Annex IIB of  Directive 2004/18/EC; (b) contracts for legal services within the 
meaning of Annex IIB of  Directive 2004/18/EC;  
(c) contracts declared secr et, as referred to in 
Article 126(1)(j). (c) contracts declared secr et, as referred to in 
Article 126(1)(j).  
3. Where the number of candidates meeting 
the selection criteria and the minimum levels is below the minimum number specified in paragraphs 1 and 2, the c ontracting authority may 
continue the procedure by inviting the candidate or 
candidates with the require d capacities. However, 
the contracting authority may not include other economic operators who did no t ask to take part, or 
candidates who do not have the required capacities. 3. Where the number of candidates meeting 
the selection criteria and the minimum levels is below the minimum number specified in paragraphs 1 and 2, the c ontracting authority may 
continue the procedure by inviting the candidate or 
candidates with the require d capacities. However, 
the contracting authority may not include other economic operators who were not initially invited 
to be part of the procedure  did not ask to take 
part, or candidates who do not have the required 
capacities. Making clear that once procedure is 
launched (even negotiated one), no new economic operators can be further invited.  
 
EN  Error! Unknown document property name.  EN Article 124 
Arrangements for negotiated procedures 
(Article 91 of the Financial Regulation) Article 124 
Arrangements for negotiated procedures 
(Article 91 of the Financial Regulation)  
Contracting authorities shall negotiate with 
tenderers the tenders they have submitted in order 
to adapt them to the requirements set out in the contract notice referred to in Article 118 or in the specifications and in any additional documents and in order to find the tender  offering best value for 
money. Contracting authorities shall negotiate with 
tenderers the tenders they have submitted in order to adapt them to the requirements set out in the contract notice referred to  in Article 118 or in the 
specifications and in any additional documents and in order to find the tender  offering best value for 
money.  
During the negotiation, the contracting authorities 
shall ensure equal treatment for all tenderers. During the negotiation, the contracting authorities 
shall ensure equal treatment for all tenderers.  
Where contracting authorities may, in accordance 
with Article 127, awar d contracts using a 
negotiated procedure after publishing a contract notice, they may arrange for the negotiated procedure to be conducted in stages so as to reduce 
the number of tenders to be negotiated, while applying the award criteria set out in the contract 
notice or specification. The contract notice or 
specification shall state that  use is to be made of 
this possibility. Where contracting authorities may, in accordance 
with Article 127, award contracts using a negotiated procedure afte r publishing a contract 
notice, they may arrange for the negotiated procedure to be conducted in  stages so as to reduce 
the number of tenders to be negotiated, while applying the award criteria set out in the contract notice or specification. The contract notice or 
specification shall state that use is to be made of this possibility.  
Article 125 
Contests 
(Article 91 of the Financial Regulation) Article 125 
Contests 
(Article 91 of the Financial Regulation)  
1. The rules for the organisation of a contest 
shall be communicated to t hose interested in taking 1. The rules for the organisation of a contest 
shall be communicated to t hose interested in taking  
 
EN  Error! Unknown document property name.  EN part. part. 
The number of candidates inv ited to take part must 
be sufficient to ensure genuine competition. The number of candidates inv ited to take part must 
be sufficient to ensure genuine competition.  
2. The selection board shall be appointed by 
the authorising officer res ponsible. It shall be made 
up exclusively of natu ral persons who are 
independent of participants  in the contest. Where a 
particular professional qua lification is required for 
participation in a contest, at least one third of the members of the selection board must have the same or an equivalent qualification. 2. The selection board shall be appointed by 
the authorising officer res ponsible. It shall be made 
up exclusively of natu ral persons who are 
independent of participants  in the contest. Where a 
particular professional qua lification is required for 
participation in a contest, at least one third of the members of the selection board must have the same or an equivalent qualification.  
The selection board shall be autonomous in its 
opinions. Its opinions shall be adopted on the basis of projects submitted to it anonymously by the candidates and solely in the light of the criteria set out in the co ntest notice. The selection board shall be autonomous in its 
opinions. Its opinions shall be adopted on the basis of projects submitted to it anonymously by the candidates and solely in the light of the criteria set out in the co ntest notice.  
3. The proposals of the selection board, based 
on the merits of each project, and its observations, shall be recorded in a report signed by its members. 3. The proposals of the selection board, based 
on the merits of each project, and its observations, shall be recorded in a report signed by its members.  
Candidates shall remain anonymous until the 
selection board has given its opinion. Candidates shall remain anonymous until the 
selection board has given its opinion.  
Candidates may be asked by the selection board to 
answer the questions recorded in the report in order to clarify a project. A full report of the resulting 
dialogue shall be drawn up. Candidates may be asked by the selection board to 
answer the questions recorded in the report in order to clarify a project. A full report of the resulting 
dialogue shall be drawn up.  
 
EN  Error! Unknown document property name.  EN 4. The contracting authority shall then take a 
decision giving the name and address of the candidate selected and the reasons for the choice by reference to the criteria  announced in the contest 
notice, especially  if it departs from the proposals 
made in the selection board's opinion. 4. The contracting authority shall then take a 
decision giving the name and address of the candidate selected and the reasons for the choice by reference to the criteria  announced in the contest 
notice, especially  if it departs from the proposals 
made in the selection board's opinion.  
Article 125a 
Dynamic purchasing system 
(Article 91 of the Financial Regulation) Article 125a 
Dynamic purchasing system 
(Article 91 of the Financial Regulation)  
1. The dynamic purchasing system, as referred 
to in Articles 1(6) and 33 of Directive 2004/18/EC, 
is a completely electronic process for making commonly used purchases, which is open throughout its duration to any economic operator who satisfies the sel ection criteria and has 
submitted an indicative tender that complies with the specification and a ny additional documents. 
The indicative tenders may be improved at any time 
provided that they continue to comply with the specification. 1. The dynamic purchasing system, as referred 
to in Articles 1(6) and 33 of Directive 2004/18/EC, 
is a completely electronic process for making commonly used purchases, which is open throughout its duration to any economic operator who satisfies the sel ection criteria and has 
submitted an indicative tender that complies with the specification and a ny additional documents. 
The indicative tenders may be improved at any time 
provided that they continue to comply with the specification.  
2. For the purposes of setting up the dynamic 
purchasing system, contra cting authorities shall 
publish a contract notice stating that a dynamic 
purchasing system is bei ng used and containing a 
reference to the Internet address offering unrestricted, direct and full access to the specification and to any additional documents from the time of publication of  the notice up to the 2. For the purposes of setting up the dynamic 
purchasing system, contra cting authorities shall 
publish a contract notice stating that a dynamic 
purchasing system is bei ng used and containing a 
reference to the Internet address offering unrestricted, direct and full access to the specification and to any additional documents from the time of publication of  the notice up to the  
 
EN  Error! Unknown document property name.  EN expiry of the system. expiry of the system. 
They shall indicate in the specification, amongst 
other matters, the nature of the purchases envisaged under that system, and all the necessary information concerning the purchasing system, the electronic equipment used and the technical connection arrangements and specifications. They shall indicate in the specification, amongst 
other matters, the nature of the purchases envisaged under that system, and all the necessary information concerning the purchasing system, the electronic equipment used and the technical connection arrangements and specifications.  
3. Contracting authorities shall give any 
economic operator, throughout the duration of the dynamic purchasing system, the possibility of submitting an indicative tende r with a view to being 
admitted to the system under the conditions referred to in paragraph 1. They shall complete evaluation within a maximum of 15 days from the date of submission of the indicative tender. 
However, they may extend the evaluation period provided that no invitation to  tender is issued in the 
meantime. 3. Contracting authorities shall give any 
economic operator, throughout the duration of the dynamic purchasing system, the possibility of submitting an indicative tende r with a view to being 
admitted to the system under the conditions referred to in paragraph 1. They shall complete evaluation within a maximum of 15 days from the date of submission of the indicative tender. 
However, they may extend the evaluation period provided that no invitation to  tender is issued in the 
meantime.  
The contracting authority sh all inform tenderers at 
the earliest possible opportuni ty that they have been 
admitted to the dynamic purchasing system or that their tender has been rejected. The contracting authority sh all inform tenderers at 
the earliest possible opportuni ty that they have been 
admitted to the dynamic purchasing system or that their tender has been rejected.  
4. Each specific contract shall be the subject of 
an invitation to tender. Before issuing this invitation, contracting au thorities shall publish a 
simplified contract notice inviting all interested 
economic operators to submit an indicative tender, 
within a time limit that may not be less than 15 4. Each specific contract shall be the subject of 
an invitation to tender. Before issuing this invitation, contracting au thorities shall publish a 
simplified contract notice inviting all interested 
economic operators to submit an indicative tender, 
within a time limit that may not be less than 15  
 
EN  Error! Unknown document property name.  EN days from the date on which the simplified notice is 
sent. Contracting authorities may not proceed with tendering until they have completed evaluation of all the indicative tenders received by that deadline. days from the date on which the simplified notice is 
sent. Contracting authoriti es may not proceed with 
tendering until they have completed evaluation of all the indicative tenders received by that deadline. 
Contracting authorities sh all invite all tenderers 
admitted to the system to submit a tender within a reasonable time. They shall award the contract to the tenderer who has submitted the tender offering best value for money on the basis of the award criteria set out in the contract notice for the establishment of the dynamic purchasing system. Those criteria may, if a ppropriate, be formulated 
more precisely in the invitation to tender. Contracting authorities sh all invite all tenderers 
admitted to the system to submit a tender within a reasonable time. They shall award the contract to the tenderer who has submitted the tender offering best value for money on the basis of the award criteria set out in the contract notice for the establishment of the dynamic purchasing system. Those criteria may, if a ppropriate, be formulated 
more precisely in the invitation to tender.  
5. A dynamic purchasing system may not last 
for more than four years, except in duly justified exceptional cases. 5. A dynamic purchasing system may not last 
for more than four years, except in duly justified exceptional cases.  
Contracting authorities may not resort to this 
system to prevent, restrict or distort competition. Contracting authorities may not resort to this 
system to prevent, restrict or distort competition.  
No charges may be billed to the interested 
economic operators or to parties to the system. No charges may be billed to the interested 
economic operators or to parties to the system.  
Article 125b 
Competitive dialogue 
(Article 91 of the Financial Regulation) Article 125b 
Competitive dialogue 
(Article 91 of the Financial Regulation)  
1. In the case of particularly complex 
contracts, where the contracting authority considers 1. In the case of particularly complex 
contracts, where the contracting authority considers  
 
EN  Error! Unknown document property name.  EN that direct use of the open procedure or the existing 
arrangements governing the restricted procedure will not allow the contract to be awarded to the tender offering best value for money, it may make use of the competitive dialogue referred to in Article 29 of Directive 2004/18/EC. that direct use of the open procedure or the existing 
arrangements governing the restricted procedure will not allow the contract to be awarded to the tender offering best value for money, it may make use of the competitive dialogue referred to in Article 29 of Directive 2004/18/EC. 
A contract is considered to be «particularly complex» where the contra cting authority is not 
objectively able to define the technical means capable of satisfying the needs or objectives or able to specify the legal or financial make-up of the project. A contract is considered to be «particularly 
complex» where the contra cting authority is not 
objectively able to define the technical means capable of satisfying the need s or objectives or able 
to specify the legal or financial make-up of the project.  
2. Contracting authorities shall publish a 
contract notice setting out their needs and requirements, which they shall define in that notice and/or in a descriptive document. 2. Contracting authorities shall publish a 
contract notice setting out their needs and requirements, which they shall define in that notice and/or in a descriptive document.  
3. Contracting authorities shall open a 
dialogue with the candidate s satisfying the selection 
criteria set out in Article 135 in order to identify and define the means best suited to satisfying their 
needs. 3. Contracting authorities shall open a 
dialogue with the candidate s satisfying the selection 
criteria set out in Article 135 in order to identify and define the means best suited to satisfying their 
needs.  
During the dialogue, contra cting authorities shall 
ensure equality of treatment among all tenderers and confidentiality of the solutions proposed or other information communicated by a candidate participating in the dialogue unless he/she agrees to 
its disclosure. During the dialogue, contra cting authorities shall 
ensure equality of treatment among all tenderers and confidentiality of the solutions proposed or other information communicated by a candidate participating in the dialogue unless he/she agrees to 
its disclosure.  
 
EN  Error! Unknown document property name.  EN Contracting authorities may provide for the 
procedure to take place in successive stages in order to reduce the number  of solutions to be 
discussed during the dialogue stage by applying the award criteria in the contract notice or the 
descriptive document if pr ovision is made for this 
possibility in the contract  notice or the descriptive 
document. Contracting authorities may provide for the 
procedure to take place in successive stages in order to reduce the number  of solutions to be 
discussed during the dialogue stage by applying the award criteria in the contract notice or the descriptive document if pr ovision is made for this 
possibility in the contract  notice or the descriptive 
document.  
4. After informing the participants that the 
dialogue is concluded, cont racting authorities shall 
ask them to submit their final tenders on the basis of the solution or solutions presented and specified during the dialogue. These te nders shall contain all 
the elements required and necessary for the performance of the project. 4. After informing the participants that the 
dialogue is concluded, cont racting authorities shall 
ask them to submit their final tenders on the basis of the solution or solutions presented and specified during the dialogue. These te nders shall contain all 
the elements required and necessary for the performance of the project.  
At the request of the c ontracting authority, these 
tenders may be clarified, specified and fine-tuned provided this does not have the effect of changing basic aspects of the tender or of the invitation to tender, variations in which could distort competition or have a discriminatory effect. At the request of the c ontracting authority, these 
tenders may be clarified, specified and fine-tuned provided this does not have the effect of changing basic aspects of the tender or of the invitation to tender, variations in which could distort competition or have a discriminatory effect.  
At the request of the contracting authority, the 
tenderer identified as having submitted the tender offering best value for money may be asked to clarify aspects of the tender or confirm commitments contained in the tender provided this does not have the effect of modifying substantial 
aspects of the tender or of  the call for tenders and At the request of the contracting authority, the 
tenderer identified as having submitted the tender offering best value for money may be asked to clarify aspects of th e tender or confirm 
commitments contained in the tender provided this does not have the effect of modifying substantial 
aspects of the tender or of  the call for tenders and  
 
EN  Error! Unknown document property name.  EN does not risk distorting competition or causing 
discrimination. does not risk distorting competition or causing 
discrimination. 
5. The contracting authorities may specify prices or payments to the participants in the dialogue. 5. The contracting authorities may specify 
prices or payments to the participants in the dialogue.  
Article 125c 
Joint procurement procedure with a Member State
(Article 91 of the Financial Regulation) Article 125c 
Joint procurement procedure with a Member State
(Article 91 of the Financial Regulation)  
In the case of a joint procurement procedure 
between one instituti on and the contracting 
authority from one or more Member States, the procedural provisions app licable to the institution 
shall apply. In the case of a joint procurement procedure 
between one institution and the contracting 
authority from one or more Member States, the procedural provisions app licable to the institution 
shall apply.  
Where the share pertaining to or managed by the 
contracting authority of a Member State in the total estimated value of the contract is equal to or above 50%, or in other duly justif ied cases, the institution 
may decide that the proce dural rules applicable to 
the contracting authority fr om a Member State shall 
apply, provided that they can be considered as equivalent to those of the institution. Where the share pertaining to or managed by the 
contracting authority of a Member State in the total estimated value of the contra ct is equal to or above 
50%, or in other duly justified cases, the institution may decide that the proce dural rules applicable to 
the contracting authority from a Member State shall apply, provided that they can be considered as equivalent to those of the institution.  
The institution and the contracting authority from a 
Member State concerned by the joint procurement procedure shall agree in  particular upon the 
practical modalities for the evaluation of the 
requests for participation or the tenders, the award 
of the contract, the law a pplicable to the contract 
and the competent court for hearing disputes. The institution and the contracting authority from a 
Member State concerned by the joint procurement procedure shall agree in  particular upon the 
practical modalities for the evaluation of the requests for participation or the tenders, the award of the contract, the law applicable to the contract and the competent court for hearing disputes.  
 
EN  Error! Unknown document property name.  EN Article 126 
Use of a negotiated procedure without prior 
publication of a contract notice 
(Article 91 of the Financial Regulation) Article 126 
Use of a negotiated procedure without prior 
publication of a contract notice 
(Article 91 of the Financial Regulation)  
1. Contracting authorities may use the 
negotiated procedure without  prior publication of a 
contract notice, whatever the estimated value of the contract, in the following cases: 1. Contracting authorities may use the 
negotiated procedure without  prior publication of a 
contract notice, whatever the estimated value of the contract, in the following cases:  
(a) where no tenders, or no suitable tenders, or 
no applications have been submitted in response to an open procedure or restricted procedure after the initial procedure has been completed, provided that the original terms of the contract as specified in the call for tenders referred to  in Article 130 are not 
substantially altered; (a) where no tenders, or no suitable tenders, or 
no applications have been submitted in response to an open procedure or restricted procedure after the initial procedure has been completed, provided that the original terms of the contract as specified in the call for tenders referred to in Article 130 are not 
substantially altered;  
b) where, for technical or artistic reasons, or 
for reasons connected with the protection of exclusive rights, the contract can be awarded only to a particular economic operator; b) where, for technical or artistic reasons, or 
for reasons connected with the protection of exclusive rights, the contract can be awarded only to a particular economic operator;  
(c) in so far as is strictly necessary where, for 
reasons of extreme urgency brought about by unforeseeable events not attributable to the contracting authorities, it is impossible to comply with the time limits set for the other procedures and laid down in Articles 140, 141 and 142; (c) in so far as is strictly necessary where, for 
reasons of extreme urgency brought about by unforeseeable events not attributable to the contracting authorities, it is impossible to comply with the time limits set for the other procedures and laid down in Articles 140, 141 and 142;  
 
EN  Error! Unknown document property name.  EN (d) where a service contract follows a contest 
and must, under the rules applying, be awarded to the successful candidate or to one of the successful candidates; in the latte r case, all successful 
candidates shall be invited to participate in the negotiations; (d) where a service contract follows a contest 
and must, under the rules applying, be awarded to the successful candidate or to one of the successful candidates; in the latter case, all successful candidates shall be invited to participate in the negotiations;  
(e)  for additional services and works not 
included in the project initially envisaged or in the initial contract but wh ich, through unforeseen 
circumstances, have become necessary for the performance of the services or works, subject to the conditions set out in paragraph 2; (e)  for additional services and works not 
included in the project initially envisaged or in the initial contract but wh ich, through unforeseen 
circumstances, have become necessary for the performance of the services or works, subject to the conditions set out in paragraph 2;  
(f) for new services or works consisting in the 
repetition of similar services or works entrusted to the economic operator awarde d the initial contract 
by the same contracting authority, provided that these services or works conform to a basic project and that this project was the subject of an initial contract awarded under the open or restricted 
procedure, subject to th e conditions set out in 
paragraph 3; (f) for new services or works consisting in the 
repetition of similar services or works entrusted to the economic operator awarde d the initial contract 
by the same contracting authority, provided that these services or works conform to a basic project and that this project was the subject of an initial contract awarded under the open or restricted 
procedure, subject to th e conditions set out in 
paragraph 3;  
(g) for supply contracts: (g ) for supply contracts:  
(i) in the case of additional deliveries which 
are intended either as a partial replacement of 
normal supplies or installati ons or as the extension 
of existing supplies or inst allations, where a change 
of supplier would oblige th e contracting authority 
to acquire equipment having different technical (i) in the case of additional deliveries which 
are intended either as a partial replacement of 
normal supplies or installati ons or as the extension 
of existing supplies or inst allations, where a change 
of supplier would oblige th e contracting authority 
to acquire equipment ha ving different technical  
 
EN  Error! Unknown document property name.  EN characteristics which would result in 
incompatibility or disproportionate technical difficulties in operation and maintenance; the length of such contracts may not exceed three years; characteristics which would result in 
incompatibility or disproportionate technical difficulties in operation and maintenance; the length of such contracts may not exceed three years; 
(ii) where the products are manufactured purely 
for the purpose of resear ch, experiment, study or 
development, with the exception of commercial viability tests and large-scale production aimed at recovering research and development costs; (ii) where the products are manufactured purely 
for the purpose of resear ch, experiment, study or 
development, with the exception of commercial viability tests and large-scale production aimed at recovering research and development costs;  
(iii) in respect of supplies quoted and purchased 
on a commodity market; (iii) in respect of supplies quoted and purchased 
on a commodity market;  
(iv)in respect of purchases on particularly 
advantageous terms, either from a supplier which is definitively winding up its business activities, or from the receivers or li quidators of a bankruptcy, 
an arrangement with creditors, or a similar procedure under national law; (iv)in respect of purchases on particularly 
advantageous terms, either from a supplier which is definitively winding up its business activities, or from the receivers or li quidators of a bankruptcy, 
an arrangement with creditors, or a similar procedure under national law;  
(h) for building contracts,  after prospecting the 
local market; (h) for building contracts, after prospecting the 
local market;  
(i) for contracts for legal services within the 
meaning of Annex IIB to Directive 2004/18/EC, provided that such cont racts are appropriately 
advertised; (i) for contracts for legal services within the 
meaning of Annex IIB to Directive 2004/18/EC, provided that such cont racts are appropriately 
advertised;  
(j) for contracts declared to be secret by the 
institution or by the aut horities delegated by the (j) for contracts declared to be secret by the 
institution or by the aut horities delegated by the  
 
EN  Error! Unknown document property name.  EN institution, or for cont racts whose performance 
must be accompanied by special security measures, in accordance with the administrative provisions in force or when the protection of the essential interests of the Communities or of the Union so requires. institution, or for contracts whose performance 
must be accompanied by special security measures, in accordance with the administrative provisions in force or when the protection of the essential interests of the Communities or of the Union so requires. 
Contracting authorities may also use the negotiated 
procedure without prior pub lication of a contract 
notice in the case of contract s with a value less than 
or equal to EUR 60 000. Contracting authorities may also use the negotiated 
procedure without prior pub lication of a contract 
notic e in the case of contracts with a value less than 
or equal to EUR 60 000.  The paragraph is red undant (see Article 
129) and should be deleted.  
2. For the additional services and works referred to in point (e) of paragraph 1, the contracting authority may make use of the 
negotiated procedure without  prior publication of a 
contract notice on condition that the award is made to the contractor performing the contract: 2. For the additional services and works 
referred to in point (e) of paragraph 1, the contracting authority may make use of the 
negotiated procedure without  prior publication of a 
contract notice on condition that the award is made to the contractor performing the contract:  
(a) where such additional contracts cannot be 
technically or economically separated from the main contract without serious inconvenience for the contracting authority; or (a) where such additional contracts cannot be 
technically or economically separated from the main contract without serious inconvenience for the contracting authority; or  
(b) where such services or works, although 
separable from the performance of the original contract, are strictly n ecessary for its completion. (b) where such services or works, although 
separable from the performance of the original contract, are strictly n ecessary for its completion.  
The aggregate value of additional contracts may not 
exceed 50 % of the amount of the initial contract. The aggregate value of additional contracts may not 
exceed 50 % of the amount of the initial contract.  
3. In the cases referred to in poi nt (f) of the 3. In the cases refe rred to in point (f) of the  
 
EN  Error! Unknown document property name.  EN first subparagraph of para graph 1, the option of 
using the negotiated proce dure shall be pointed out 
as soon as the first ope ration is put out to 
competitive tender, and the total estimated amount for the subsequent services  or work shall be taken 
into consideration in calculating the thresholds referred to in Article 15 8. That procedure may be 
used only during the th ree years following 
conclusion of the original contract. first subparagraph of para graph 1, the option of 
using the negotiated proce dure shall be pointed out 
as soon as the first ope ration is put out to 
competitive tender, and the total estimated amount for the subsequent services  or work shall be taken 
into consideration in calculating the thresholds referred to in Article 15 8. That procedure may be 
used only during the th ree years following 
conclusion of the original contract. 
Article 127 
Use of a negotiated procedure after prior 
publication of a contract notice 
(Article 91 of the Financial Regulation) Article 127 
Use of a negotiated procedure after prior 
publication of a contract notice 
(Article 91 of the Financial Regulation)  
1. Contracting authorities may use the 
negotiated procedure after having published a contract notice, whatever the estimated value of the contract, in the following cases: 1. Contracting authorities may use the 
negotiated procedure after having published a contract notice, whatever the estimated value of the contract, in the following cases:  
(a) where tenders which are irregular or 
unacceptable, by reference in particular to the selection or award criteria, are submitted in response to an open or rest ricted procedure, or a 
competitive dialogue, which has been completed, provided that the original terms of the contract as 
specified in the call for tenders referred to in Article 130 are not substa ntially altered, without 
prejudice to the applic ation of paragraph 2; (a) where tenders which are irregular or 
unacceptable, by reference in particular to the selection or award criteria, are submitted in response to an open or rest ricted procedure, or a 
competitive dialogue, which has been completed provided that the original terms of the contract as 
specified in the call for tenders referred to in Article 130 are not substa ntially altered, without 
prejudice to the applic ation of paragraph 2;  
 
(b) in exceptional cases involving work, (b ) in exceptional cases involving work,  
 
EN  Error! Unknown document property name.  EN supplies or services where the nature or the risks do 
not permit prior overall pr icing by the tenderer; supplies or services where the nature or the risks do 
not permit prior overall pr icing by the tenderer; 
(c) where the nature of the service to be 
procured, in particular in the case of financial services and intellectual services, is such that contract specifications ca nnot be established with 
sufficient precision to permit the award of the contract by selecting th e best tender in accordance 
with the rules governing open or restricted procedures; (c) where the nature of the service to be 
procured, in particular in the case of financial services and intellectual services, is such that contract specifications ca nnot be established with 
sufficient precision to permit the award of the contract by selecting the best tender in accordance 
with the rules governing open or restricted procedures;  
(d) for works contracts, where the works are 
performed solely for purpos es of research, testing 
or development and not w ith the aim of ensuring 
profitability or rec overing research and 
development costs; (d) for works contracts, where the works are 
performed solely for purpos es of research, testing 
or development and not w ith the aim of ensuring 
profitability or rec overing research and 
development costs;  
(e) for the service contracts referred to in 
Annex IIB to Directive 2004/18/EC, subject to points (i) and (j) of  the first subparagraph of Article 
126(1) of this Regulation and the second subparagraph thereof. (e) for the service contracts referred to in 
Annex IIB to Directive 2004/18/EC, subject to points (i) and (j) of  the first subparagraph of Article 
126(1) of this Regulation and the second subparagraph thereof.  
(f) for research and development services other 
than those where the benefits accrue exclusively to the contracting authority for its use in the conduct of its own affairs, on c ondition that the service 
provided is wholly remunerated by the contracting authority; (f) for research and development services other 
than those where the benefits accrue exclusively to the contracting authority for its use in the conduct of its own affairs, on c ondition that the service 
provided is wholly remunerated by the contracting authority;  
(g) for service contracts for the acquisition, (g ) for service contracts for the acquisition,  
 
EN  Error! Unknown document property name.  EN development, production or co-production of 
programme material intended for broadcasting by broadcasters and contracts for broadcasting time. development, production or co-production of 
programme material inte nded for broadcasting by 
broadcasters and contracts for broadcasting time. 
2. In the cases referred to in point (a) of paragraph 1, contracting authorities may refrain 
from publishing a contract not ice if they include in 
the negotiated procedure all the tenderers and only the tenderers satisfying th e selection criteria who, 
during the previous procedure, submitted tenders in accordance with the formal requirements of the procurement procedure. 2. In the cases referred to in point (a) of 
paragraph 1, contracting authorities may refrain 
from publishing a contract not ice if they include in 
the negotiated procedure all the tenderers and only the tenderers satisfying th e selection criteria who, 
during the previous procedure, submitted tenders in accordance with the formal requirements of the procurement procedure.  
Article 128 
Restricted procedure involving a call for 
expressions of interest 
(Article 91 of the Financial Regulation) Article 128 
Restricted  Procedure involving a call for 
expressions of interest 
(Article 91 of the Financial Regulation) Providing a simpler alternative for middle-
value contracts. 
 
 
1. A call for expressions of interest shall constitute a means of pre-selecting candidates who will be invited to submit tenders in response to future restricted invitations to tender for contracts with a value of more than EUR 60000, subject to Articles 126 and 127. 1. For contracts with a value
 not exceeding  
that referred to in Article 158 and without 
prejudice to Articles 126 and 127, contracting 
authorities may use a A call for expressions  of 
interest shall constitute  to do either of the 
following:   
(a) means of  to pre-selecting  candidates who will  
to be invited to submit tende rs in response to future 
restricted invitations to tender for contracts with a 
value of more than EUR 60000 , subject ; 
(b) to collect a list of vendors to be invited to The amount referred to in Article 129(1) IR 
is Euro 60.000. 
 
EN  Error! Unknown document property name.  EN submit requests to participate or tenders.  
 
to Articles 126 and 127 . 
2.  The list drawn up following a call for 
expressions of interest shall be valid for no more than three years from the date on which the notice referred to in point (a) of Article 119(1) is sent to 
the Office for Official Pub lications of the European 
Communities. 2. The list drawn up following a call for 
expressions of interest shall be valid for no more
 
than the following period : 
(a) not more than three years from the date on 
which the notice referred to in point (a) of Article 119(1) is sent to the Publications
 Office for 
Official Publications of the European Communities  
in the case referred to in  point (a) of paragraph 
1 of this Article;  
(b) not more than five years from the date on 
which the notice referred to in point (a) of 
Article 119(1) is sent to the Publications Office 
in the case of list withou t pre-selection referred 
to in point (b) of paragraph 1 of this Article.   
Any interested person may submit an application at 
any time during the period of validity of the list, with the exception of the last three months of that period. Any interested person may submit an application at 
any time during the period of validity of the list, with the exception of the last three months of that period.  
3. Where a specific contract is to be awarded, 
the contracting authority shall invite either all candidates entered on the list or only some of them, on the basis of objective  and non-discriminatory 
selection criteria specific to that contract, to submit 3. Where a specific
 contract is to be awarded, 
the contracting authority shall invite either all candidates or vendors
 entered on the list or only 
some of them, on the basis of objective and non-discriminatory selection criteria specific to that Word "specific" was a mistake 
 
EN  Error! Unknown document property name.  EN a tender. contract to do the following : 
(a) to submit a tender in the case referred to in 
point (a) of paragraph 1, or  
(b) to submit, in case of the list referred to in 
point (b) of paragraph 1, either of the following:  
 (i) tenders including  documents relating 
to exclusion and selection criteria,  
 (ii) documents relating to exclusion and 
selection criteria and, in a second step, tenders, 
for those fulfilling these criteria.  
 
Article 129 
Low-value contracts 
(Article 91 of the Financial Regulation) Article 129 
Low-value contracts 
(Article 91 of the Financial Regulation)  
1. A negotiated procedure with consultation of 
at least five candidates may be used for contracts with a value less than or equal to EUR 60 000. 1. A negotiated procedure without prior 
publication of a contract notice  with consultation 
of at least five  three candidates may be used for 
contracts with a low value les s than or equal to  not 
exceeding  EUR 60 000. It should be said here, even if it appears 
obvious to experts, that it is a negotiated procedure without prior publication of a contract notice. 
 
If, following consultation of the candidates, the 
contracting authority recei ves only one tender that 
is administratively and technically valid, the contract may be awarded provided that the award If, following consultation of the candidates, the 
contracting authority recei ves only one tender that 
is administratively and technically valid, the contract may be awarded provided that the award  
 
EN  Error! Unknown document property name.  EN criteria are met. criteria are met. 
2. For contracts with a va lue less than or equal 
to EUR 25 000, the procedure referred to in paragraph 1 with consulta tion of at least three 
candidates may be used. 2.
 For contracts with a va lue less than or equal 
to EUR 25 000, the procedure referred to in 
paragraph 1 with consulta tion of at least three 
candidates may be used.  Abolition of the intermediary threshold of 
EUR 25,000. 
3. Contracts with a value less than or equal to 
EUR 5 000 may be awarded on the basis of a single tender. 3. Contracts with a very low 
value less than or 
equal to  not exceeding  EUR 5 000  15 000  may be 
awarded on the basis of a single tender following a 
negotiated procedure without prior publication 
of a contract notice.  Increase of threshold to balance it with the 
administrative costs of a procurement procedure. 
4. Payments of amounts less than or equal to EUR 500 in respect of items of expenditure may consist simply in paymen t against invoi ces, without 
prior acceptance of a tender. 4. Payments of amounts less than or equal to 
EUR 500
 1 000  in respect of items of expenditure 
may consist simply in payment against invoices, without prior acceptance of a tender. Increase of threshold to balance it with the 
administrative costs of a procurement procedure. 
Article 130 
Documents relating to the invitation to tender 
(Article 92 of the Financial Regulation) Article 130 
Documents relating to the invitation to 
tenderTender documents  
(Article 92 of the Financial Regulation)  
1. The documents relating to the invitation to 
tender shall include at least: 1. The tender documents relating to the 
invitation to tender  shall include at least: Clarification of terminology 
(a) the invitation to tender or to negotiate or to 
take part in the dialogue under the procedure referred to in Article 125b; (a) the invitation to tender or to negotiate or to 
take part in the dialogue under the procedure referred to in Article 125b;  
(b) the attached specification or, in the case of a (b) the attached sp ecification or, in the case of a  
 
EN  Error! Unknown document property name.  EN competitive dialogue as referred to in Article 125b, 
a document describing the needs and requirements of the contracting authorit y, or the reference for the 
Internet address at which such specification or document can be consulted; competitive dialogue as referred to in Article 125b, 
a document describing the needs and requirements of the contracting authorit y, or the reference for the 
Internet address at which such specification or document can be consulted; 
(c) the model contract. (c) the model contract. 
Point (c) of the first subparagraph shall not 
apply to cases where, due to exceptional and 
duly justified circumstances, the model contract 
cannot be used.  There are situations in practice (e.g. 
subscription contracts, some insurance contracts, some low value contracts etc) when there is no possibility of imposing Commission's model contract on the contractor.  
The documents relating to the invitation to tender shall contain a reference to the advertising measures taken under Articles 118 to 121. The tender
 documents relating to the invitation to 
tender  shall contain a reference to the advertising 
measures taken under Articles 118 to 121. Clarification of terminology 
2. The invitation to tender or to negotiate or to 
take part in the dial ogue shall at least: 2. The invitation to tender or to negotiate or to 
take part in the dial ogue shall at least:  
(a) specify the rules governing the lodging and 
presentation of tenders, including in particular the closing date and time for submission, any requirement as to the use of a standard reply form, the documents to be attached, including those in evidence of financial, economic, technical and professional capacity referred to in Article 135 if they are not specified in th e contract notice, and the 
address to which they must be sent; (a) specify the rules governing the lodging and 
presentation of tenders, including in particular the closing date and time for submission, any requirement as to the use of a standard reply form, the documents to be attached, including those in evidence of financial, economic, technical and professional capacity referred to in Article 135 if they are not specified in th e contract notice, and the 
address to which they must be sent;  
(b) state that submission of a tender implies 
acceptance of the specification referred to in (b) state that submission of a tender implies 
acceptance of the specification referred to in  
 
EN  Error! Unknown document property name.  EN paragraph 1 to which the te nder relates and that this 
submission binds the contractor to whom the contract is awarded dur ing performance of the 
contract; paragraph 1 to which the te nder relates and that this 
submission binds the contractor to whom the contract is awarded dur ing performance of the 
contract; 
(c) specify the period during which a tender will remain valid and may not be varied in any respect; (c) specify the period during which a tender 
will remain valid and may not be varied in any respect;  
(d) forbid any contact between the contracting 
authority and the tendere r during the procedure, 
save, exceptionally, under th e conditions laid down 
in Article 148, and, where provision is made for an on-the-spot visit, specify the arrangements for such 
a visit; (d) forbid any contact between the contracting 
authority and the tendere r during the procedure, 
save, exceptionally, under th e conditions laid down 
in Article 148, and, where provision is made for an on-the-spot visit, specify the arrangements for such 
a visit;  
(e) specify, in the case of a competitive 
dialogue, the date set and th e address for the start of 
the consultation phase. (e) specify, in the case of a competitive 
dialogue, the date set and th e address for the start of 
the consultation phase.  
3. The specifications shall at least: 3. The specifications shall at least:  
(a) specify the exclusion and selection criteria 
applying to the contract, save in a competitive dialogue, in the restricted procedure and in the negotiated procedure follo wing publication of a 
notice as referred to in Article 127; in such cases those criteria shall appear  solely in the contract 
notice or the call for expressions of interest; (a) specify the exclusion and selection criteria 
applying to the contract, save in a competitive dialogue, in the restricted procedure and in the negotiated procedure follo wing publication of a 
notice as referred to in Article 127; in such cases those criteria shall appear  solely in the contract 
notice or the call for expressions of interest;  
(b) specify the award criteria and their relative 
weighting or, where appropriate, the decreasing (b) specify the award criteria and their relative 
weighting or, where appropriate, the decreasing  
 
EN  Error! Unknown document property name.  EN order of importance, if this  is not specified in the 
contract notice; order of importance, if this is not specified in the 
contract notice; 
(c) set out the technical specifications referred to in Article 131; (c) set out the technical specifications referred 
to in Article 131;  
(d) state the minimum requirements which 
variants must meet in the procedures referred to in Article 138(2) under which th e contract is awarded 
to the tender offering best value for money, where the contracting authority ha s stated in the contract 
notice that such variants are permitted; (d) state the minimum requirements which 
variants must meet in the procedures referred to in Article 138(2) under which th e contract is awarded 
to the tender offering best value for money, where the contracting authority ha s stated in the contract 
notice that such variants are permitted;  
(e) state that the Protocol on Privileges and 
Immunities or, where appropriate, the Vienna Convention on Diplomatic Relations or Consular 
Relations applies; (e) state that the Protocol on Privileges and 
Immunities or, where appropriate, the Vienna Convention on Diplomatic Relations or Consular 
Relations applies;  
(f) specify the evidence of access to contracts, 
as set out in Article 159; (f) specify the evidence of access to contracts, 
as set out in Article 159;  
(g) specify, in the dynamic purchasing systems 
referred to in Article 125a, the nature of the purchases envisaged, as well as all the necessary information concerning the purchasing system, the electronic equipment used and the technical connection arrangements and specifications. (g) specify, in the dynamic purchasing systems 
referred to in Article 125a, the nature of the purchases envisaged, as well as all the necessary information concerning the purchasing system, the electronic equipment used and the technical connection arrangements and specifications.  
4. The model contract shall in particular: 4. The model contract shall in particular:  
(a) specify the penalties for failure to comply 
with its clauses; (a) specify the penalties for failure to comply 
with its clauses;  
 
EN  Error! Unknown document property name.  EN (b) specify the details wh ich must be contained 
in invoices or in the relevant supporting documents in accordance with Article 98; (b) specify the details wh ich must be contained 
in invoices or in the relevant supporting documents in accordance with Article 98;  
(c) state that, when the institutions are 
contracting authorities, Community law is the law which applies to the cont ract, complemented, where 
necessary, by a national law as specified in the contract. (c) state that, when the institutions are 
contracting authorities, Community
 Union  law is 
the law which applies to the contract, complemented, where necessary, by a national law as specified in the contract.   
  In case of some building contracts reference 
to Union law has especially negative impact on the price. 
(d) specify the competent court for hearing disputes. (d) specify the competent court for hearing 
disputes. 
For the purposes of point (c) of the first 
subparagraph, in case of contracts referred to in 
Article 116(1), the model contract may refer 
exclusively to national law.   
5. The contracting authorities may demand 
information from the tenderer on any part of the contract that the tenderer may intend to subcontract 
to third parties and on the identity of any subcontractors. In addition to the information referred to in Article 134, the contracting authority may also require the candidate or tenderer to submit information on the financial, economic, technical and professional capaciti es, as referred to in 
Articles 135, 136 and 137, of the envisaged 5. The contracting authorities may demand 
information from the tenderer on any part of the contract that the tenderer may intend to subcontract 
to third parties and on the identity of any subcontractors. In addition to the information referred to in Article 134, the contracting authority may also require the candidate or tenderer to submit information on the financial, economic, technical and professional capaciti es, as referred to in 
Articles 135, 136 and 137, of the envisaged  
 
EN  Error! Unknown document property name.  EN subcontractor, in particul ar when subcontracting 
represents a significant part of the contract. subcontractor, in particul ar when subcontracting 
represents a significant part of the contract. 
Article 131 
Technical specifications 
(Article 92 of the Financial Regulation) Article 131 
Technical specifications 
(Article 92 of the Financial Regulation)  
1. Technical specifications must afford equal 
access for candidates and tenderers and not have the effect of creating unjustified obstacles to competitive tendering. 1. Technical specifications must afford equal 
access for candidates and tenderers and not have the effect of creating unjustified obstacles to competitive tendering.  
They shall define the characteristics required of a 
product, service or material or work with regard to the purpose for which they are intended by the contracting authority. They shall define the characteristics required of a 
product, service or material or work with regard to the purpose for which they are intended by the contracting authority.  
2. The characteristics referred to in paragraph 
1 shall include: 2. The characteristics referred to in paragraph 
1 shall include:  
(a) the quality levels; (a) the quality levels;  
(b) environmental performance; (b) environmental performance;  
(c) wherever possible, the accessibility criteria 
for people with disabiliti es or the design for all 
users; (c) wherever possible, the accessibility criteria 
for people with disabiliti es or the design for all 
users;  
(d) the levels and proc edures of conformity 
assessment; (d) the levels and proc edures of conformity 
assessment;  
 
EN  Error! Unknown document property name.  EN (e) fitness for use; (e) fitness for use;  
(f) safety or dimensions, including, for 
supplies, the sales name and user instructions, and, for all contracts, termi nology, symbols, testing and 
test methods, packaging, marking and labelling, 
production procedures and methods; (f) safety or dimensions, including, for 
supplies, the sales name and user instructions, and, for all contracts, termi nology, symbols, testing and 
test methods, packaging, marking and labelling, 
production procedures and methods;  
(g) for works contracts, the procedures relating 
to quality assurance and th e rules relating to design 
and costing, the test, inspection and acceptance 
conditions for works and methods or techniques of construction and all the other technical conditions which the contracting authority may impose under general or specific regulations in relation to the finished works and to the materials or parts which they involve. (g) for works contracts, the procedures relating 
to quality assurance and th e rules relating to design 
and costing, the test, inspection and acceptance conditions for works and methods or techniques of construction and all the other technical conditions which the contracting authority may impose under general or specific regulations in relation to the finished works and to the materials or parts which they involve.  
3. The technical specifications shall be 
formulated as follows: 3. The technical specifications shall be 
formulated as follows:  
(a) by reference to European standards, or to 
European technical approva ls or common technical 
specifications, where such exist, to international standards or to other tec hnical reference material 
produced by European standards bodies or, failing this, their national equiva lents. Every reference 
shall be followed by the expression «or equivalent»; or (a) by reference to European standards, or to 
European technical approvals or common technical specifications, where such exist, to international standards or to other tec hnical reference material 
produced by European standards bodies or, failing this, their national equiva lents. Every reference 
shall be followed by the expression «or equivalent»; or  
(b) in terms of performance or of functional 
requirements, which may include environmental (b) in terms of performance or of functional 
requirements, which may include environmental  
 
EN  Error! Unknown document property name.  EN characteristics and shall be sufficiently detailed to 
enable tenderers to determine the purpose of the contract and the contracti ng authorities to award the 
contract; or characteristics and shall be sufficiently detailed to 
enable tenderers to determine the purpose of the contract and the contracti ng authorities to award the 
contract; or 
(c) by a mixture of those two formulation methods. (c) by a mixture of those two formulation 
methods.  
4. Where the contracting authorities make use 
of the possibility of refe rring to the specifications 
referred to in point (a) of paragraph 3, they may not reject a tender on the grounds that it does not comply with those specifications if the tenderer or candidate proves, to th e satisfaction of the 
contracting authority, by any appropriate means, that the tender meets in equivalent manner the requirements set. 4. Where the contracting authorities make use 
of the possibility of refe rring to the specifications 
referred to in point (a) of paragraph 3, they may not reject a tender on the grounds that it does not comply with those specifications if the tenderer or candidate proves, to th e satisfaction of the 
contracting authority, by any appropriate means, that the tender meets in equivalent manner the requirements set.  
An appropriate means may take the form of a 
technical dossier of the manufacturer or a test 
report from a recognised body. An appropriate means may take the form of a 
technical dossier of the manufacturer or a test report from a recognised body.  
5. Where the contracting authorities make use 
of the possibility provid ed for in point (b) of 
paragraph 3, of prescribi ng specifications in terms 
of performance or of func tional requirements, they 
may not reject a tender which complies with a national standard transpos ing a European standard, 
a European technical appr oval or common technical 
specifications, an internati onal standard or technical 
reference material produced by a European 
standards body, if those speci fications relate to the 5. Where the contracting authorities make use 
of the possibility provid ed for in point (b) of 
paragraph 3, of prescribi ng specifications in terms 
of performance or of func tional requirements, they 
may not reject a tender which complies with a national standard transpos ing a European standard, 
a European technical approval or common technical specifications, an international standard or technical 
reference material produced by a European 
standards body, if those speci fications relate to the  
 
EN  Error! Unknown document property name.  EN necessary performance or functiona l requirements. necessary performa nce or functional requirements. 
The tenderer must prove to  the satisfaction of the 
contracting authority and by any appropriate means 
that the tender meets the performance or functional 
requirements set by the c ontracting authority. An 
appropriate means may take the form of a technical 
dossier of the manufacturer or a test report from a recognised body. The tenderer must prove to  the satisfaction of the 
contracting authority and by any appropriate means 
that the tender meets the performance or functional 
requirements set by the c ontracting authority. An 
appropriate means may take the form of a technical 
dossier of the manufacturer or a test report from a recognised body.  
5a. Where contracting authorities lay down 
environmental characteristics in terms of performance or of functi onal requirements, they 
may use the detailed specifications, or, if necessary, parts thereof, as defined by European, multinational or national eco-labels, or  by any other eco-label, 
provided that the following conditions are satisfied: 5a. Where contracting authorities lay down 
environmental characteristics in terms of performance or of functi onal requirements, they 
may use the detailed specif ications, or, if necessary, 
parts thereof, as defined by European, multinational or national eco-labels, or  by any other eco-label, 
provided that the following conditions are satisfied:  
(a) the specifications used are appropriate to 
define the characteristics of the supplies or services that are the object of the contract; (a) the specifications used are appropriate to 
define the characteristics of the supplies or services that are the object of the contract;  
(b) the requirements for the label are drawn up 
on the basis of scientific information; (b) the requirements for the label are drawn up 
on the basis of scientific information;  
(c) the eco-labels are adopted using a procedure 
in which all the parties concerned, such as government bodies, consumers, manufacturers, distributors and environm ental organisations, can 
participate; (c) the eco-labels are adopted using a procedure 
in which all the parties concerned, such as government bodies, consumers, manufacturers, distributors and environm ental organisations, can 
participate;  
(d) the eco-labels are accessible to all interested (d ) the eco-labels are accessible to all interested  
 
EN  Error! Unknown document property name.  EN parties. parties. 
Contracting authorities may indicate that the 
products or services b earing the eco-label are 
presumed to comply with the technical specifications laid down in the contract documents. They shall accept any other appropriate means of proof, such as a tec hnical dossier of the 
manufacturer or a test report from a recognised 
body. Contracting authorities may indicate that the 
products or services b earing the eco-label are 
presumed to comply with the technical specifications laid down in the contract documents. They shall accept any other appropriate means of proof, such as a tec hnical dossier of the 
manufacturer or a test report from a recognised 
body.  
5b. A recognised body for the purposes of 
paragraphs 4, 5 and 5a is a test and calibration laboratory or a certifi cation and inspection body 
which complies with applicable European standards. 5b. A recognised body for the purposes of 
paragraphs 4, 5 and 5a is a test and calibration laboratory or a certifi cation and inspection body 
which complies with applicable European standards.  
6. Save in exceptional cases, duly warranted 
by the subject of the cont ract, those specifications 
may not refer to a specific make or source, or a particular process, or to trade marks, patents, types 
or a specific origin or production which would have 
the effect of favouring or eliminating certain 
products or economic operators. 6. Save in exceptional cases, duly warranted 
by the subject of the contra ct, those specifications 
may not refer to a specific make or source, or a particular process, or to trade marks, patents, types 
or a specific origin or production which would have 
the effect of favouring or eliminating certain 
products or economic operators.  
Where it is not possible to provide a sufficiently 
detailed and intelligible description of the subject of the contract, the refere nce shall be followed by 
the expression «or equivalent». Where it is not possible to provide a sufficiently 
detailed and intelligible description of the subject of the contract, the refere nce shall be followed by 
the expression «or equivalent».  
 
EN  Error! Unknown document property name.  EN Article 132 
Price revision 
(Article 92 of the Financial Regulation) Article 132 
Price revision 
(Article 92 of the Financial Regulation)  
1. The documents relating to the invitation to 
tender shall clearly stat e whether a firm, non-
revisable price must be quoted. 1. The tender documents relating  to the 
invitation to tender  shall clearly state whether a 
firm, non-revisable price must be quoted. Clarification of terminology 
2. If that is not th e case, the documents 
relating to the invitation to tender shall lay down the conditions and/or formulas for revision of prices during the lifetime of the contract. In such cases the contracting authority shall take particular account of: 2. If that is not the case, the tender
 documents 
relating to the invitation to tender  shall lay down 
the conditions and/or formulas for revision of prices during the lifetime of the contract. In such cases the contracting authority shall take particular account of: Clarification of terminology 
(a) the object of the pr ocurement procedure and 
the economic situation in which it is taking place; (a) the object of the pr ocurement procedure and 
the economic situation in which it is taking place;  
(b) the type of tasks and contract and their 
duration; (b) the type of tasks and contract and their 
duration;  
(c) its financial interests. (c) its financial interests.  
Article 133 
Illegal activities givi ng rise to exclusion 
(Articles 93 and 114 of the Financial Regulation) Article 133 
Illegal activities givi ng rise to exclusion 
(Articles 93 and 114 of the Financial Regulation)  
The cases referred to in point  (e) of Article 93(1) of 
the Financial Regulation shall be the following: The cases referred to in point (e)  (e) of Article 
93(1) of the Financial Regulation shall include all 
illegal activities detrimental to the financial Article 93(1)(e) FR is not exhaustive 
 
EN  Error! Unknown document property name.  EN interests of the European Union and in 
particular be the following: 
(a) cases of fraud as referred to in Article 1 of 
the Convention on the prot ection of the European 
Communities' financial interests drawn up by the Council Act of 26 July 1995
13; (a) cases of fraud as refe rred to in Article 1 of 
the Convention on the prot ection of the European 
Communities' financial interests drawn up by the Council Act of 26 July 1995
14;  
(b) cases of corruption as referred to in Article 
3 of the Convention on th e fight against corruption 
involving officials of the European Communities or 
officials of Member States  of the European Union, 
drawn up by the Council Act of 26 May 199715; (b) cases of corruption as referred to in Article 
3 of the Convention on th e fight against corruption 
involving officials of the European Communities or 
officials of Member States  of the European Union, 
drawn up by the Council Act of 26 May 199716;  
(c) cases of involvement in a criminal 
organisation, as defined in Article 2(1) of Joint Action 98/733/JHA of the Council
17; (c) cases of involvement in a criminal 
organisation, as defined in Article 2(1) of Joint 
Action 98/733/JHA of the Council18; of Council 
Framework Decision 2008/841/JHA of 24 
October 2008 on the fight against organised 
crime19;  
 Update of the act of reference. The Council 
Joint Action 98/733/JHA has been replaced by Council Framework Decision 2008/841/JHA of 24 October 2008 on the fight against organised crime. Definitions of the involvement in a criminal organization are now contained in Article 2.   
                                                 
13 OJ C 316, 27.11.1995, p. 48. 
14 OJ C 316, 27.11.1995, p. 48. 
15 OJ C 195, 25.6.1997, p. 1. 
16 OJ C 195, 25.6.1997, p. 1. 
17 OJ L 315, 29.12.1998, p. 1. 
18 OJ L 315, 29.12.1998, p. 1. 
19             OJ L 300, 11.11.2008, p. 42  
 
EN  Error! Unknown document property name.  EN (d) cases of money laundering as defined in 
Article 1 of Council Directive 91/308/EEC20. (d) cases of money laundering as defined in 
Article 1 of Council Dir ective 91/308/EEC of 10 
June 199121.  
Article 133a 
Application of exclusion criteria and duration of 
exclusion 
(Articles 93, 94, 95 and 96 of the Financial 
Regulation) Article 133a 
Application of exclusion criteria and duration of 
exclusion 
(Articles 93, 94, 95 and 96 of the Financial 
Regulation)  
1. In order to determine duration of exclusion 
and to ensure compliance with the principle of proportionality, the institution responsible shall take into account in partic ular the seriousness of the 
facts, including their impact on the Communities’ financial interests and image and the time which has elapsed, the duration and recurrence of the offence, the intention or de gree of negligence of the 
entity concerned and the measures taken by the entity concerned to remedy the situation. 1. In order to determine duration of exclusion 
and to ensure compliance with the principle of proportionality, the institution responsible shall take into account in partic ular the seriousness of the 
facts, including their impact on the Communities’ financial interests and image and the time which has elapsed, the duration and recurrence of the offence, the intention or de gree of negligence of the 
entity concerned and the measures taken by the entity concerned to remedy the situation.  
When determining the period of exclusion, the 
institution responsible shall give the candidate or tenderer concerned the oppor tunity to express their 
views. When determining the period of exclusion, the 
institution responsible shall give the candidate or tenderer concerned the oppor tunity to express thei
r 
its views. Correction 
Where the duration of the period of exclusion is 
determined, in accordance with the applicable law, Where the duration of the period of exclusion is 
determined, in accordance with the applicable law,  
                                                 
20 OJ L 166, 28.6.1991, p. 77. 
21 OJ L 166, 28.6.1991, p. 77. 
 
EN  Error! Unknown document property name.  EN by the authorities or bodies referred to in Article 
95(2) of the Financial Re gulation, the Commission 
shall apply this duration up to the maximum duration laid down in Articl e 93(3) of the Financial 
Regulation by the authorities or bodies referred to in Article 
95(2) and (3)
 of the Financial Regulation, the 
Commission shall apply th is duration up to the 
maximum duration laid down in Article 93 (3)  (4) 
of the Financial Regulation 95(3) FR added ECB and EIB for their own 
funds) 
Renumbering in accordance with changes in 
Article 93 RF. 
2. The period referred to in  Article 93(3) of the 
Financial Regulation is set at a maximum of five years, calculated from the following dates: 2. The period referred to  in Article 93 (3)
 (4) 
of the Financial Regulation is set at a maximum of five years, calculated from the following dates: Renumbering in accordance with changes in 
Article 93 RF 
(a) from the date of the judgment having the force of res judicata  in the cases referred to in 
points (b) and (e) of Article  93(1) of the Financial 
Regulation; (a) from the date of the judgment having the 
force of res judicata  in the cases referred to in 
points (b) and (e)
 (e) of Article 93(1) of the 
Financial Regulation; Initial text restated 
(b) from the date on which the infringement is 
committed or, in the case of continuing or repeated infringements, the date on which the infringement 
ceases, in the cases referred to in Article 93(1)(c) of the Financial Regulation. (b) from the date on which the infringement is 
committed or, in the case of continuing or repeated infringements, the date on which the infringement ceases, in the cases referred to in Article 93(1)(c) 
(1)(c)  of the Financial Regulation where the 
misconduct relates to contracts with the 
institution concerned. If the grave professional 
misconduct was established by a decision of a 
public authority or an international 
organisation, the date of the decision shall 
prevail.   Initial text restated 
Decisions of public authorities or IO should 
be assimilated, as regards the calculation of the exclusion period , to judgements. 
Otherwise the delays usually incurred render the application of an appropriate 
exclusion period factually impossible. 
That period of exclusio n may be extended to ten 
years in the event of a repeated offence within five years of the date referred to in points (a) and (b), 
subject to paragraph 1. That period of exclusio n may be extended to ten 
years in the event of a repeated offence within five years of the date referred to in points (a) and (b), 
subject to paragraph 1.  
 
EN  Error! Unknown document property name.  EN 3. Candidates and tenderers shall be excluded 
from a procurement and grant procedure as long as they are in one of the situations referred to in points (a) and (d) of Article 93(1) of the Financial Regulation. 3. Candidates and tenderers shall be excluded 
from a procurement and grant procedure as long as they are in one of the situations referred to in points (a) and (d)
 (d) of Article 93 (1)  (1) of the Financial 
Regulation. Initial numbering restated. No change in 93 
(1) FR 
Article 134 
Evidence 
(Articles 93and 94 of th e Financial Regulation) Article 134 
Evidence 
(Articles 93and 94 of th e Financial Regulation)  
1. Candidates and tenderers shall provide a 
declaration on their honour , duly signed and dated, 
stating that they are not in one of the situations referred to in Articles 93 and 94 of the Financial Regulation. 1. Candidates and tenderers shall provide a 
declaration on their honour , duly signed and dated, 
stating that they are not in one of the situations referred to in Articles 93 and 94 of the Financial Regulation.  
However, in case of restricted procedure, 
competitive dialogue and negotiated procedure after publication of a contract notice, whenever the contracting authority limits the number of candidates to be invited to negotiate or submit a tender, all the candidates shall provide the certificates referred to in paragraph 3. However, in case of restricted procedure, 
competitive dialogue and negotiated procedure after publication of a contract notice, whenever the contracting authority limits the number of candidates to be invited to negotiate or submit a tender, all the candidates shall provide the certificates referred to in paragraph 3.  
Depending on its risk assessment, the contracting 
authority may refrain from  requiring the declaration 
referred to in the first subparagraph for contracts with a value less than or equal to EUR 5 000. However, for contracts referred to in Articles 241(1), 243(1), and 245( 1), the contracting 
authority may refrain from requiring that Depending on its risk assessment, the contracting 
authority may refrain from  requiring the declaration 
referred to in the first subparagraph for contracts with a value less than or equal to EUR
 5 000 
referred to in Article 129(3).  However, for 
contracts referred to in Articles 241(1), 243(1), and 
245(1), the contracting au thority may refrain from  
 
EN  Error! Unknown document property name.  EN declaration for contracts w ith a value less than or 
equal to EUR 10 000. requiring that declaration for contracts with a value 
less than or equal to EUR 1 20 000. 
2. The tenderer to whom th e contract is to be 
awarded shall provide, within a time limit defined by the contracting authority and preceding the signature of the contract, the evidence referred to in paragraph 3, confirming the declaration referred to in paragraph 1 in the following cases:  2. The tenderer to whom th e contract is to be 
awarded shall provide, within a time limit defined by the contracting authority and preceding the signature of the contract, the evidence referred to in paragraph 3, confirming the declaration referred to in paragraph 1 in the following cases:   
(a) for contracts awarded by the institutions on 
their own account, with a va lue equal to or greater 
than the thresholds referred to in Article 158; (a) for contracts awarded by the institutions on 
their own account, with a va lue equal to or greater 
than the thresholds referred to in Article 158;  
(b) for contracts in the field of external actions 
with a value equal to or greater than the thresholds laid down in Article 241(1)  (a), Article 243(1) (a), 
or Article 245(1) (a). (b) for contracts in the field of external actions 
with a value equal to or greater than the thresholds laid down in Article 241(1)  (a), Article 243(1) (a), 
or Article 245(1) (a).  
For contracts with a value less than the thresholds 
referred to in points (a) and (b), the contracting 
authority may, where it has doubts as to whether the tenderer to whom the contract is to be awarded is in one of the situations  of exclusion, require him 
to provide the evidence referred to in paragraph 3. For contracts with a value less than the thresholds 
referred to in points (a) and (b), the contracting 
authority may, where it has doubts as to whether the tenderer to whom the contract is to be awarded is in one of the situations  of exclusion, require him 
to provide the evidence referred to in paragraph 3.  
3. The contracting authority shall accept as 
satisfactory evidence that the candidate or tenderer to whom the contract is to be awarded is not in one of the situations described in  point (a), (b) or (e) of 
Article 93(1) of the Financial Regulation, a recent extract from the judicial r ecord or, failing that, an 3. The contracting authority shall accept as 
satisfactory evidence that the candidate or tenderer to whom the contract is to be awarded is not in one of the situations described in point (a), (b) or (e)
 (e) 
of Article 93(1) of the Financial Regulation, a recent extract from the judicial record or, failing Initial numbering restated. No change in 93 
(1) FR 
 
EN  Error! Unknown document property name.  EN equivalent document recently issued by a judicial 
or administrative authority in the country of origin or provenance showing that  those requirements are 
satisfied. The contracting authority shall accept, as satisfactory evidence that the candidate or tenderer is not in the situation de scribed in point (d) of 
Article 93(1) of the Financial Regulation, a recent certificate issued by the competent authority of the State concerned. that, an equivalent document recently issued by a 
judicial or administrative au thority in the country of 
origin or provenance showing that those 
requirements are satisfied. The contracting authority shall accept, as satisfactory evidence that the candidate or tenderer is not in the situation described in point (d)
 (d) of Article 93 (1)  (1) of the 
Financial Regulation, a r ecent certificate issued by 
the competent authority of the State concerned. 
Where the document or certificate referred to in paragraph 1 is not issued in the country concerned 
and for the other cases of exclusion referred to in 
Article 93 of the Financ ial Regulation, it may be 
replaced by a sworn or , failing that, a solemn 
statement made by the interested party before a judicial or administrative authority, a notary or a 
qualified professional body in  his country of origin 
or provenance. Where the document or certificate referred to in 
paragraph 1 is not issued in the country concerned 
and for the other cases of exclusion referred to in 
Article 93 of the Financ ial Regulation, it may be 
replaced by a sworn or , failing that, a solemn 
statement made by the interested party before a judicial or administrative authority, a notary or a 
qualified professional body in  his country of origin 
or provenance.  
4. Depending on the national legislation of the 
country in which the ca ndidate or tenderer is 
established, the documents referred to in paragraphs 1 and 3 shall relate to legal persons 
and/or natural persons including, where considered necessary by the contracting authority, company directors or any person with powers of representation, decision-m aking or control in 
relation to the candi date or tenderer. 4. Depending on the national legislation of the 
country in which the ca ndidate or tenderer is 
established, the documents referred to in paragraphs 1 and 3 shall relate to legal persons 
and/or natural persons including, where considered necessary by the contracting authority, company directors or any person with powers of representation, decision-m aking or control in 
relation to the candi date or tenderer.  
5. Where they have doubts as to whether 
candidates or tenderers are in  one of the situation of 5. Where they have doubts as to whether 
candidates or tenderers are in one of the situation of  
 
EN  Error! Unknown document property name.  EN exclusion, contracting aut horities may themselves 
apply to the competent authorities referred to in paragraph 3 to obtain any information they consider necessary about that situation. exclusion, contracting aut horities may themselves 
apply to the competent authorities referred to in paragraph 3 to obtain any information they consider necessary about that situation. 
6. The contracting authority may waive the obligation of a candidate or tenderer to submit the documentary evidence referred to in paragraph 3 if such evidence has already been submitted to it for the purposes of another procurement procedure and provided that the issuing date of the documents 
does not exceed one year and that they are still valid.  6. The contracting authority may waive the 
obligation of a candidate or tenderer to submit the documentary evidence referred to in paragraph 3 if such evidence has already been submitted to it for the purposes of another procurement procedure and provided that the issuing date of the documents 
does not exceed one year and that they are still valid.   
In such a case, the candidate or tenderer shall 
declare on his honour that the documentary evidence has already been provided in a previous procurement procedure and confirm that no changes in his situation have occurred. In such a case, the candidate or tenderer shall 
declare on his honour that the documentary evidence has already been provided in a previous procurement procedure and confirm that no changes in his situation have occurred.  
7. When requested by the contracting 
authority, the candidate or  tenderer shall submit a 
declaration on honour from the intended subcontractor that he is not  in one of the situations 
referred to in Articles 93 and 94 of the Financial Regulation. 7. When requested by the contracting 
authority, the candidate or  tenderer shall submit a 
declaration on honour from the intended subcontractor that he is not  in one of the situations 
referred to in Articles 93 and 94 of the Financial Regulation.  
In case of doubt on this  declaration on the honour, 
the contracting authority sh all request the evidence 
referred to in paragraphs 3 and 4. Paragraph 5 shall 
apply, where appropriate. In case of doubt on this  declaration on the honour, 
the contracting authority shall request the evidence referred to in paragraphs 3 and 4. Paragraph 5 shall 
apply, where appropriate.  
 
EN  Error! Unknown document property name.  EN Article 134a 
Central database 
(Article 95 of the Financial Regulation) Article 134a 
Central database 
(Article 95 of the Financial Regulation)  
1. The institutions, executive agencies and 
bodies referred to in Article 95(1) of the Financial Regulation shall transmit to the Commission, in the format established by the Commission, information identifying the economic operators which are in one of the situations referred to in Articles 93, 94, 96(1)(b) and 96(2)(a) of the Financial Regulation, the grounds for exclusion and the duration of the 
period of exclusion. 1. The institutions, executive agencies and 
bodies referred to in Article 95(1) of the Financial Regulation shall transmit to the Commission, in the format established by the Commission, information identifying the economic operators which are in one of the situations referred to in Articles 93, 94, 96(1)(b) and 96(2)(a) of the Financial Regulation, the grounds for exclusion and the duration of the 
period of exclusion.  
They shall also transmit information concerning 
persons with powers of representation, decision 
making or control over economic operators which are legal entities, when these persons have found themselves in one of the situations referred to in Articles 93, 94, 96(1)(b) and 96(2)(a) of the 
Financial Regulation. They shall also transmit information concerning 
persons with powers of representation, decision 
making or control over economic operators which are legal entities, when these persons have found themselves in one of the situations referred to in Articles 93, 94, 96(1)(b) and 96(2)(a) of the 
Financial Regulation.  
The authorities and bodies  referred to in Article 
95(2) of the Financial Re gulation shall transmit to 
the Commission, in the format established by the Commission: The authorities and bodies  referred to in Article 
95(2) and (3)
 of the Financial Regulation shall 
transmit to the Commission, in the format established by the Commission: Renumbering in accordance with changes in 
the FR 
(a) information identifying the following persons who are in one of the situations referred to in Article 93(1)(e) of the Financial Regulation, 
where their conduct was detrimental to the (a) information identifying the following 
persons who are in one of the situations referred to in Article 93(1) (e)
 (e) of the Financial Regulation, 
where their conduct was detrimental to the Initial numbering restated. No change in 93 
(1) FR 
 
EN  Error! Unknown document property name.  EN Communities' financial interests: Communities' financial interests: 
(i) the economic operators;  (i) the economic operators;   
(ii) persons with powers of representation, 
decision-making or control over economic operators which are legal entities; (ii) persons with powers of representation, 
decision-making or control over economic operators which are legal entities;  
(b) the type of their conviction;  (b ) the type of their conviction;   
(c) the duration of the period of exclusion from 
procurement procedures, where applicable. (c) the duration of the period of exclusion from 
procurement procedures, where applicable.  
2. The institutions, agencies, authorities and 
bodies referred to in paragraph 1 shall designate the persons authorised to co mmunicate to and receive 
from the Commission the information contained in the database. 2. The institutions, agencies, authorities and 
bodies referred to in paragraph 1 shall designate the persons authorised to co mmunicate to and receive 
from the Commission the information contained in the database.  
In the case of the institu tions, agencies, authorities 
and bodies referred to in Article 95(1) of the Financial Regulation, the designated persons shall 
address the information as soon as possible to the accounting officer of the Commission, and request, 
as appropriate, entry, modification or removal of data in the database. In the case of the institu tions, agencies, authorities 
and bodies referred to in Article 95(1) of the Financial Regulation, the designated persons shall 
address the information as soon as possible to the accounting officer of the Commission, and request, 
as appropriate, entry, modification or removal of data in the database.  
In the case of the authorities and bodies referred to 
in Article 95(2) of the Financial Regulation, the 
designated persons shall address the requisite information to the Commission authorising officer responsible for the programme or action concerned, In the case of the authorities and bodies referred to 
in Article 95(2) of the Financial Regulation, the 
designated persons shall address the requisite information to the Commission authorising officer responsible for the programme or action concerned,  
 
EN  Error! Unknown document property name.  EN within three months of the issue of the relevant 
judgement. within three months of the issue of the relevant 
judgement. 
The accounting officer of the Commission shall enter, modify or remove data in the database. He shall, via a secured protocol, provide on a monthly basis validated data containe d in the database to the 
designated persons. The accounting officer of the Commission shall 
enter, modify or remove data in the database. He shall, via a secured protocol, provide on a monthly basis validated data containe d in the database to the 
designated persons.  
3. The institutions, agencies, authorities and 
bodies referred to in paragraph 1 shall certify to the Commission that the info rmation communicated by 
them was established and transmitted in accordance with the principles set out  in Regulation (EC) No 
45/2001 and in Directive 95/46/EC of the European Parliament and of the Council
22 concerning the 
protection of personal data.  3. The institutions, agencies, authorities and 
bodies referred to in paragraph 1 shall certify to the Commission that the info rmation communicated by 
them was established and transmitted in accordance with the principles set out  in Regulation (EC) No 
45/2001 and in Directive 95/46/EC of the European Parliament and of the Council
23 concerning the 
protection of personal data.   
In particular, they shall inform in advance all 
economic operators or pe rsons referred to in 
paragraph 1 that their data  may be included in the 
database and communicate d by the Commission to 
the designated persons refe rred to in paragraph 2. 
They shall update, where appropriate, the information transmitted, following rectification or erasure or any modification of data. In particular, they shall inform in advance all 
economic operators or pe rsons referred to in 
paragraph 1 that their data  may be included in the 
database and communicate d by the Commission to 
the designated persons refe rred to in paragraph 2. 
They shall update, where appropriate, the information transmitted, following rectification or erasure or any modification of data.  
Any party entered in the database shall have the 
right to be informed of th e data stored concerning Any party entered in the database shall have the 
right to be informed of th e data stored concerning  
                                                 
22  OJ L 281, 23.11.1995, p. 3. 
23  OJ L 281, 23.11.1995, p. 3. 
 
EN  Error! Unknown document property name.  EN that party, upon request to  the accounting officer of 
the Commission. that party, upon request to  the accounting officer of 
the Commission. 
4. Member States shall take appropriate measures to assist the Commission in order to 
manage the database effici ently, in compliance with 
Directive 95/46/EC. 4. Member States shall take appropriate 
measures to assist the Commission in order to 
manage the database effici ently, in compliance with 
Directive 95/46/EC.  
Appropriate arrangements shall be laid down in the 
agreements with the author ities of third countries 
and all bodies referred to in Article 95(2) of the 
Financial Regulation, in or der to ensure compliance 
with these provisions and with the principles concerning the protection of personal data.  Appropriate arrangements shall be laid down in the 
agreements with the author ities of third countries 
and all bodies referred to in Article 95(2) and (3)
 of 
the Financial Regulation, in order to ensure compliance with these provisions and with the principles concerning th e protection of personal 
data.  Renumbering in accordance with the FR 
   
Article 134b 
Administrative and fi nancial penalties 
(Articles 96 and 114 of the Financial Regulation) Article 134b 
Administrative and fi nancial penalties 
(Articles 96 and 114 of the Financial Regulation)  
1. Without prejudice to the application of 
penalties laid down in th e contract, candidates or 
tenderers and contractor s who have made false 
declarations, have made substantial errors or 
committed irregularities or fraud, or have been found in serious breach of their contractual obligations may be excluded from all contracts and grants financed by the Community budget for a maximum of five years from the date on which the 1. Without prejudice to the application of 
penalties laid down in th e contract, candidates or 
tenderers and contractor s who have made false 
declarations, have made substantial errors or 
committed irregularities or fraud, or have been found in serious breach of their contractual obligations may be excluded from all contracts and grants financed by the Community
 Union  budget 
for a maximum of five years from the date on  
 
EN  Error! Unknown document property name.  EN infringement is established as confirmed following 
an adversarial procedure with the contractor. which the infringement is established as confirmed 
following an adversarial procedure with the contractor. 
That period may be exte nded to ten years in the 
event of a repeated offence within five years of the date referred to in the first subparagraph. That period may be exte nded to ten years in the 
event of a repeated offence within five years of the date referred to in the first subparagraph.  
2. Tenderers or candidates who have made 
false declarations, have  committed substantial 
errors, irregularities or fraud, may also be subject to financial penalties repres enting 2% to 10% of the 
total estimated value of the contract being awarded. 2. Tenderers or candidates who have made 
false declarations, have  committed substantial 
errors, irregularities or fraud, may also be subject to financial penalties repres enting 2% to 10% of the 
total estimated value of the contract being awarded.  
Contractors who have been  found in serious breach 
of their contractual obligations may be subject to financial penalties repres enting 2% to 10% of the 
total value of the contract in question. Contractors who have been  found in serious breach 
of their contractual obligations may be subject to financial penalties repres enting 2% to 10% of the 
total value of the contract in question.  
That rate may be increased to 4% to 20% in the 
event of a repeat infringeme nt within five years of 
the date referred to in the first subparagraph of 
paragraph 1. That rate may be increased to 4% to 20% in the 
event of a repeat infringeme nt within five years of 
the date referred to in the first subparagraph of 
paragraph 1.  
3. The institution shall determine the 
administrative or financia l penalties taking into 
account in particular the elements referred to in 
Article 133a(1). 3. The institution shall determine the 
administrative or financia l penalties taking into 
account in particular the elements referred to in 
Article 133a(1).  
 
EN  Error! Unknown document property name.  EN Article 135 
Selection criteria 
(Article 97(1) of the Financial Regulation) Article 135 
Selection criteria 
(Article 97(1) of the Financial Regulation)  
1. The contracting author ities shall draw up 
clear and non-discriminato ry selection criteria. 1. The contracting author ities shall draw up 
clear and non-discriminato ry selection criteria.  
2. The selection criteria shall be applied in 
every procurement procedure for the purposes of assessing the financial,  economic, technical and 
professional capacity of the candidate or the tenderer. 2. The selection criteria shall be applied in 
every procurement procedure for the purposes of assessing the financial,  economic, technical and 
professional capacity of the candidate or the tenderer.  
The contracting authority  may lay down minimum 
capacity levels below which candidates may not be selected. The contracting authority  may lay down minimum 
capacity levels below which candidates may not be selected.  
3. Any tenderer or candidate may be asked to 
prove that he is authorised to perform the contract under national law, as evidenced by inclusion in a trade or professional register, or a sworn 
declaration or certificate, membership of a specific 
organisation, express author isation, or entry in the 
VAT register. 3. Any tenderer or candidate may be asked to 
prove that he is authorised to perform the contract under national law, as evidenced by inclusion in a trade or professional register, or a sworn 
declaration or certificate, membership of a specific organisation, express author isation, or entry in the 
VAT register.  
4. The contracting author ities shall specify in 
the contract notice or in the call for expressions of 
interest or the invitation to submit a tender, the references chosen to test  the status and the legal 
capacity of tenderers or candidates. 4. The contracting author ities shall specify in 
the contract notice or in the call for expressions of 
interest or the invitation to submit a tender, the references chosen to test  the status and the legal 
capacity of tenderers or candidates.  
 
EN  Error! Unknown document property name.  EN 5. The information requested by the 
contracting authority as proof of the financial, economic, technical and pr ofessional capacity of 
the candidate or tenderer and the minimum capacity 
levels required in accordance with paragraph 2 may not go beyond the subject of the contract and shall take account of the legitimate interests of the economic operators as regards in particular the protection of the firm's  technical and business 
secrets. 5. The information requested by the 
contracting authority as proof of the financial, economic, technical and pr ofessional capacity of 
the candidate or tenderer  and the minimum capacity 
levels required in accordance with paragraph 2 may not go beyond the subject of the contract and shall take account of the legitimate interests of the economic operators as regards in particular the protection of the firm's  technical and business 
secrets.  
6. The contracting authority may, depending 
on his assessment of risks, decide not to require proof of the financial,  economic, technical and 
professional capacity of ca ndidates or tenderers in 
the case of the following contracts: 6. The contracting authority may, depending 
on his assessment of risks, decide not to require proof of the financial,  economic, technical and 
professional capacity of ca ndidates or tenderers in 
the case of the following contracts:  
(a) contracts awarded by the institutions on 
their own account, with a value of less than or 
equal to EUR 60 000,  (a) contracts awarded by the institutions on 
their own account, with a value of less than or 
equal to EUR  60 000  the value referred to in 
Article 129(1) ,  Replacing figures by references 
(b) contracts awarded in the field of external 
actions, with a value below the thresholds referred 
to in Article 241(1)(a), Ar ticle 243(1)(a), or Article 
245(1)(a). (b) contracts awarded in the field of external 
actions, with a value below the thresholds referred 
to in Article 241(1)(a), Ar ticle 243(1)(a), or Article 
245(1)(a).  
Where the contracting authority decides not to 
require proof of the financ ial, economic, technical 
and professional capacity of candidates or 
tenderers, no pre-financing shall be made unless a 
financial guarantee of an equivalent amount is Where the contracting authority decides not to 
require proof of the financ ial, economic, technical 
and professional capacity of candidates or 
tenderers, no pre-financing shall be made unless a 
financial guarantee of an equivalent amount is  
 
EN  Error! Unknown document property name.  EN provided. provided. 
Article 136 
Economic and financial capacity 
(Article 97(1) of the Financial Regulation) Article 136 
Economic and financial capacity 
(Article 97(1) of the Financial Regulation)  
1. Proof of economic and financial capacity 
may in particular be furn ished by one or more of 
the following documents: 1. Proof of economic and financial capacity 
may in particular be furn ished by one or more of 
the following documents:  
a) appropriate statements from banks or 
evidence of professional ri sk indemnity insurance; a) appropriate statements from banks or , 
where appropriate,  evidence of professional risk 
indemnity insurance; Alignment with the Directive 2004/18 
(b) the presentation of balance sheets or 
extracts from balance sheets for at least the last two years for which accounts have been closed, where publication of the balance sheet is required under 
the company law of the country in which the economic operator is established; (b) the presentation of balance sheets or 
extracts from balance sheets  financial statements  
for at least the last two years for which accounts have been closed, where publication of the balance 
sheet is required under the company law of the 
country in which the economic operator is 
established  
 Balance sheet which is mandatorily 
published was not considered sufficient. Instead, complete se t of signed financial 
statements should prov ide a better view on 
the financial viability. This is a clarification since Article 136(1) contains an exemplary, not an exhaustive list. 
 
(c)  a statement of overall turnover and 
turnover concerning the work s, supplies or services 
covered by the contract during a period which may 
be no more than the last three financial years. (c)  a statement of overall turnover and 
turnover concerning the work s, supplies or services 
covered by the contract during a period which may 
be no more than the last three financial years available
. Alignment with Directive 2004/18 
2. If, for some exceptional reason which the 2. The contracting authority may waive the  
 
EN  Error! Unknown document property name.  EN contracting authority considers justified, the 
tenderer or candidate is unable to provide the references requested by the contracting authority, he may prove his economic and financial capacity by any other means which th e contracting authority 
considers appropriate. obligation of a candidate or tenderer to submit 
the documentary evidence referred to in 
paragraph 1 if such evidence has already been 
submitted to it for the purposes of another 
procurement procedure and still complies with 
the requirements of paragraph 1.  
If, for some exceptional reason which the 
contracting authority considers justified, the tenderer or candidate is unable to provide the 
references requested by the contracting authority, 
he may prove his economic and financial capacity by any other means which th e contracting authority 
considers appropriate. 
3. An economic operator may, where appropriate and for a partic ular contract, rely on the 
capacities of other entities, regardless of the legal nature of the links which it has with them. It must in that case prove to the contracting authority that it will have at its disposal the resources necessary for performance of the contract, for example by producing an undertaking on the part of those entities to place those resources at its disposal. 3. An economic operator may, where 
appropriate and for a partic ular contract, rely on the 
capacities of other entities , regardless of the legal 
nature of the links which it has with them. It must in that case prove to the contracting authority that it will have at its disposal the resources necessary for performance of the contract, for example by producing an undertaking on the part of those entities to place those resources at its disposal.  
Under the same conditions, a consortium of 
economic operators as referred to in Article 116(6) may rely on the capacities of members of the consortium or of other entities. Under the same conditions, a consortium of 
economic operators as referred to in Article 116(6) may rely on the capacities of members of the consortium or of other entities.  
 
EN  Error! Unknown document property name.  EN Article 137 
Technical and professional capacity 
(Article 97(1) of the Financial Regulation) Article 137 
Technical and professional capacity 
(Article 97(1) of the Financial Regulation)  
1. Technical and professional capacity of 
economic operators shall be  evaluated and verified 
in accordance with paragraphs 2 and 3. In procurement procedures for supplies requiring sitting or installation ope rations, services and/or 
works, such capacity shall be assessed with regard 
in particular to their know-how, efficiency, experience and reliability. 1. Technical and professional capacity of 
economic operators shall be  evaluated and verified 
in accordance with paragraphs 2 and 3. In procurement procedures for supplies requiring sitting or installation ope rations, services and/or 
works, such capacity shall be assessed with regard 
in particular to their know-how, efficiency, experience and reliability.  
2. Evidence of the technical and professional 
capacity of economic operators may, depending on the nature, quantity or scale and purpose of the 
supplies, services or works to be provided, be furnished on the basis of one or more of the following documents: 2. Evidence of the technical and professional 
capacity of economic operators may, depending on the nature, quantity or scale and purpose of the 
supplies, services or works to be provided, be furnished on the basis of one or more of the following documents:  
(a) the educational and professional 
qualifications of the service provider or contractor and/or those of the firm's  managerial staff and, in 
particular, those of th e person or persons 
responsible for providing the services or carrying 
out the works; (a) the educational and professional 
qualifications of the service provider or contractor and/or those of the firm's  managerial staff and, in 
particular, those of th e person or persons 
responsible for providing the services or carrying 
out the works;  
(b) a list: (b) a list:  
(i) of the principal services provided and 
supplies delivered in the past three years, with the (i) of the principal services provided and 
supplies delivered in the past three years, with the  
 
EN  Error! Unknown document property name.  EN sums, dates and recipients, public  or private; sums, dates and recipients, public or private; 
(ii) of the works carried  out in the last five 
years, with the sums, date s and place. The list of 
the most important works shall be accompanied by certificates of satisfact ory execution, specifying 
whether they have been carried out in a professional manner and have been fully completed; (ii) of the works carried  out in the last five 
years, with the sums, date s and place. The list of 
the most important works shall be accompanied by certificates of satisf actory execution, specifying 
whether they have been carried out in a professional manner and have been fully completed;  
(c) a description of the technical equipment, 
tools and plant to be employed by the firm for performing a service or works contract; (c) a description of the technical equipment, 
tools and plant to be employed by the firm for performing a service or works contract;  
(d) a description of the technical equipment and 
the measures employed to ensure the quality of supplies and services, a nd a description of the 
firm's study and rese arch facilities; (d) a description of the technical equipment and 
the measures employed to ensure the quality of supplies and services, a nd a description of the 
firm's study and rese arch facilities;  
(e) an indication of the technicians or technical 
bodies involved, whether or  not belonging directly 
to the firm, especially th ose responsible for quality 
control; (e) an indication of the technicians or technical 
bodies involved, whether or  not belonging directly 
to the firm, especially th ose responsible for quality 
control;  
(f) in respect of supplies: samples, descriptions 
and/or authentic photogra phs and/or certificates 
drawn up by official quality control institutes or agencies of recognised competence attesting the 
conformity of the products  with the specifications 
or standards in force; (f) in respect of supplies: samples, descriptions 
and/or authentic photogra phs and/or certificates 
drawn up by official quality control institutes or agencies of recognised competence attesting the 
conformity of the products with the specifications 
or standards in force;  
(g) a statement of the average annual manpower (g) a statement of the average annual manpower  
 
EN  Error! Unknown document property name.  EN and the number of manageri al staff of the service 
provider or contractor in  the last three years; and the number of manageri al staff of the service 
provider or contractor in  the last three years; 
(h) an indication of the proportion of the 
contract which the service provider may intend to subcontract; (h) an indication of the proportion of the 
contract which the service provider may intend to subcontract;  
(i) for public works contracts and public 
service contracts, and only in appropriate cases, an indication of the environmental management measures that the economic operator will be able to apply when performing the contract. (i) for public works contracts and public 
service contracts, and only in appropriate cases, an indication of the environmental management measures that the economic operator will be able to apply when performing the contract.  
Where the services or supplies referred to in point 
(b)(i) of the first subparagraph are provided to contracting authorities, evidence of performance 
shall be in the form of certificates issued or countersigned by the competent authority. Where the services or supplies referred to in point 
(b)(i) of the first subparagraph are provided to contracting authorities, evidence of performance 
shall be in the form of certificates issued or countersigned by the competent authority.  
3. Where the services or products to be 
supplied are complex or, ex ceptionally, are required 
for a special purpose, evidence of technical and professional capacity may be secured by means of a check carried out by the c ontracting authority or on 
its behalf by a competent official body of the country in which the servi ce provider or supplier is 
established, subject to th at body's agreement. Such 
checks shall concern the supplier's technical capacity and production capaci ty and, if necessary, 
its study and research facilities and quality control 
measures. 3. Where the services or products to be 
supplied are complex or, ex ceptionally, are required 
for a special purpose, evidence of technical and professional capacity may be secured by means of a check carried out by the c ontracting authority or on 
its behalf by a competent official body of the country in which the servi ce provider or supplier is 
established, subject to th at body's agreement. Such 
checks shall concern the supplier's technical capacity and production capacity and, if necessary, its study and research facilities and quality control 
measures.  
 
EN  Error! Unknown document property name.  EN 3a. Where contracting au thorities require the 
production of certificates drawn up by independent 
bodies attesting the comp liance of the economic 
operator with certain quality assurance standards, they shall refer to quality assurance systems based on the relevant European standards series certified 
by bodies conforming to the European standards series concerning certification. 3a. Where contracting au thorities require the 
production of certificates drawn up by independent 
bodies attesting the comp liance of the economic 
operator with certain quality assurance standards, they shall refer to quality assurance systems based on the relevant European st andards series certified 
by bodies conforming to the European standards series concerning certification. However, 
contracting authorities shall also accept other 
evidence of equivalent quality assurance 
measures from economic operators.  Obligation to accept equivalent measures. 
3b. Where contracting au thorities require the 
production of certificates drawn up by independent 
bodies attesting the comp liance of the economic 
operator with certain environmental management standards, they shall refer to the Community Eco-Management and Audit Scheme (EMAS) provided for in Regulation (EC) No 761/2001 of the European Parliament and of the Council
24 or to 
environmental management standards based on the relevant European or international standards certified by bodies confor ming to Community law 
or the relevant European or international standards concerning certification. They shall recognise 
equivalent certificates from bodies established in 
other Member States. They shall also accept other 
evidence of equivalent environmental management 3b. Where contracting au thorities require the 
production of certificates drawn up by independent 
bodies attesting the comp liance of the economic 
operator with certain environmental management standards, they shall refer to the Community
 Union  
Eco-Management and Audit Scheme (EMAS) provided for in Regulation (EC) No 761/2001 of the European Parliament and of the Council
25 or to 
environmental management standards based on the relevant European or international standards certified by bodies conforming to Community
 
Union  law or the relevant European or international 
standards concerning cer tification. They shall 
recognise equivalent cer tificates from bodies 
established in other Member States. They shall also 
accept other evidence of equivalent environmental  
                                                 
24 OJ L 114, 24.4.2001, p. 1. 
25 OJ L 114, 24.4.2001, p. 1. 
 
EN  Error! Unknown document property name.  EN measures from economic operators. manage ment measures from economic operators. 
4. An economic operator may, where 
appropriate and for a partic ular contract, rely on the 
capacities of other entities, regardless of the legal nature of the links which it has with them. It must in that case prove to the contracting authority that it will have at its disposal the resources necessary for performance of the contract, for example by producing an undertaking on the part of those entities to place those resources at its disposal. 4. An economic operator may, where 
appropriate and for a partic ular contract, rely on the 
capacities of other entities , regardless of the legal 
nature of the links which it has with them. It must in that case prove to the contracting authority that it will have at its disposal the resources necessary for performance of the contract, for example by producing an undertaking on the part of those entities to place those resources at its disposal.  
Under the same conditions, a consortium of 
economic operators as referred to in Article 116(6) may rely on the capacities of members of the consortium or of other entities. Under the same conditions, a consortium of 
economic operators as referred to in Article 116(6) may rely on the capacities of members of the consortium or of other entities.  
Article 138 
Award arrangements and criteria 
(Article 97(2) of the Financial Regulation) Article 138 
Award arrangements and criteria 
(Article 97(2) of the Financial Regulation)  
1. Without prejudice to Article 94 of the 
Financial Regulation, contra cts shall be awarded in 
one of the following two ways: 1. Without prejudice to Article 94 of the 
Financial Regulation, contra cts shall be awarded in 
one of the following two ways:  
(a) under the automatic award procedure, in 
which case the contract is awarded to the tender which, while being in order and satisfying the conditions laid down, quotes the lowest price; (a) under the automatic award procedure, in 
which case the contract is awarded to the tender which, while being in order and satisfying the conditions laid down, quotes the lowest price;  
(b) under the best-value-for-money procedure. (b ) under the best-value-for-money procedure.  
 
EN  Error! Unknown document property name.  EN 2. The tender offering the best value for 
money shall be the one with  the best price-quality 
ratio, taking into account criteria justified by the subject of the contract su ch as the price quoted, 
technical merit, aesthetic and functional characteristics, environmental characteristics, running costs, profitability completion or delivery times, after-sales service and technical assistance. 2. The tender offering the best value for 
money shall be the one with  the best price-quality 
ratio, taking into account criteria justified by the subject of the contract such as the price quoted, technical merit, aesthetic and functional characteristics, environmental characteristics, running costs, profitability completion or delivery times, after-sales service and technical assistance.  
3. The contracting authority shall specify, in 
the contract notice or in the specification or in the descriptive document, the weighting it will apply to each of the criteria for de termining best value for 
money. That weighting may be expressed as a range with an appropriate maximum spread. 3. The contracting authority shall specify, in 
the contract notice or in the specification or in the descriptive document, the weighting it will apply to each of the criteria for determining best value for money. That weighting ma y be expressed as a 
range with an appropriate maximum spread.  
The weighting applied to price in relation to the 
other criteria must not resu lt in the neutralisation of 
price in the choice of co ntractor, without prejudice 
to the scales laid down by the institution for the remuneration of certain services, such as those provided by experts for evaluation purposes.  The weighting applied to price in relation to the 
other criteria must not resu lt in the neutralisation of 
price in the choice of co ntractor, without prejudice 
to the scales laid down by the institution for the remuneration of certain services, such as those provided by experts for evaluation purposes.   
If, in exceptional cases, weighting is technically 
impossible, particularly on account of the subject of 
the contract, the contracting authority shall merely specify the decreasing order of importance in which 
the criteria are to be applied. If, in exceptional cases, weighting is technically 
impossible, particularly on account of the subject of 
the contract, the contracting authority shall merely specify the decreasing order of importance in which 
the criteria are to be applied.  
 
EN  Error! Unknown document property name.  EN Article 138a 
Use of electronic auctions 
(Article 97(2) of the Financial Regulation) Article 138a 
Use of electronic auctions 
(Article 97(2) of the Financial Regulation)  
1. In open, restricted or  negotiated procedures 
in the case referred to in Article 127(1)(a), the 
contracting authorities may decide that the award of 
a public contract shall be preceded by an electronic auction, as referred to in  Article 54 of Directive 
2004/18/EC, when the contra ct specifications can 
be established with precision. 1. In open, restricted or  negotiated procedures 
in the case referred to in Article 127(1)(a), the 
contracting authorities may decide that the award of 
a public contract shall be preceded by an electronic auction, as referred to in  Article 54 of Directive 
2004/18/EC, when the contra ct specifications can 
be established with precision.  
In the same circumstances, an electronic auction 
may be held on the reopening of competition among the parties to a framework contract as referred to in Article 117( 4)(b) of this Regulation 
and on the opening for competition of contracts to be awarded under the dynamic purchasing system referred to in Article 125a. In the same circumstances, an electronic auction 
may be held on the reopening of competition among the parties to a framework contract as referred to in Article 117( 4)(b) of this Regulation 
and on the opening for competition of contracts to be awarded under the dynamic purchasing system referred to in Article 125a.  
The electronic auction shall be based either solely 
on prices, in which case th e contract is awarded to 
the lowest price, or on the prices and/or the values of the features of the tenders indicated in the specification, in which case the contract is awarded to the tender offering best value for money. The electronic auction shall be based either solely 
on prices, in which case th e contract is awarded to 
the lowest price, or on the prices and/or the values of the features of the tenders indicated in the 
specification, in which case the contract is awarded to the tender offering best value for money.  
2. Contracting authorities  which decide to hold 
an electronic auction shall state that fact in the 
contract notice. 2. Contracting authorities  which decide to hold 
an electronic auction shall state that fact in the 
contract notice.  
 
EN  Error! Unknown document property name.  EN The specification shall include the following 
details: The specification shall include the following 
details:  
(a) the features, the values for which will be the 
subject of electronic auc tion, provided that those 
features are quantifiable and can be expressed in figures or percentages; (a) the features, the values for which will be the 
subject of electronic auc tion, provided that those 
features are quantifiable and can be expressed in figures or percentages;  
(b) any limits on the values which may be 
submitted, as they result from the specifications relating to the subjec t of the contract; (b) any limits on the values which may be 
submitted, as they result from the specifications relating to the subjec t of the contract;  
(c) the information which will be made 
available to tenderers in th e course of the electronic 
auction and, where appropriate, when it will be made available to them; (c) the information which will be made 
available to tenderers in the course of the electronic auction and, where appropr iate, when it will be 
made available to them;  
(d) the relevant information concerning the 
electronic auction process; (d) the relevant information concerning the 
electronic auction process;  
(e) the conditions under which the tenderers 
will be able to bid and, in particular, the minimum differences which will, where appropriate, be required when bidding; (e) the conditions under which the tenderers 
will be able to bid and, in particular, the minimum differences which will, where appropriate, be required when bidding;  
(f) the relevant information concerning the 
electronic equipment used and the arrangements and technical specifications for connection. (f) the relevant information concerning the 
electronic equipment used and the arrangements and technical specifications for connection.  
3. Before proceeding with an electronic 
auction, contracting authorities shall make a full initial evaluation of the te nders in accordance with 3. Before proceeding with an electronic 
auction, contracting authorities shall make a full initial evaluation of the tenders in accordance with  
 
EN  Error! Unknown document property name.  EN the award criteria set and with the weighting fixed 
for them. the award criteria set and with the weighting fixed 
for them. 
All tenderers who have submitted admissible tenders shall be inv ited simultaneously by 
electronic means to submit new prices and/or new values; the invitation shall contain all relevant information concerning individual connection to the electronic equipment being used and shall state the date and time of the start of the electronic auction. The electronic auction may take place in a number of successive phases. The electronic auction may not start sooner than two working days after the date on which invitations are sent out. All tenderers who have submitted admissible 
tenders shall be inv ited simultaneously by 
electronic means to submit new prices and/or new values; the invitation shall contain all relevant information concerning individual connection to the electronic equipment being used and shall state the date and time of the start of the electronic auction. The electronic auction may take place in a number of successive phases. The electronic auction may not start sooner than two working days after the date on which invitations are sent out.  
4. When the contract is  to be awarded on the 
basis of the tender offering best value for money, the invitation shall be acc ompanied by the outcome 
of a full evaluation of the relevant tender, carried 
out in accordance with the weighting provided for in the first subparagraph of Article 138(3). 4. When the contract is  to be awarded on the 
basis of the tender offering best value for money, the invitation shall be acc ompanied by the outcome 
of a full evaluation of the relevant tender, carried 
out in accordance with the weighting provided for in the first subparagraph of Article 138(3).  
The invitation shall also state the mathematical 
formula to be used in the electronic auction to determine automatic re-rankings on the basis of the new prices and/or new values submitted. That formula shall incorporate the weighting of all the 
criteria fixed to determine the tender offering best value for money, as indicated  in the contract notice 
or in the specification; for that purpose, any ranges shall, however, be reduced beforehand to a The invitation shall also state the mathematical 
formula to be used in the electronic auction to determine automatic re-rankings on the basis of the new prices and/or new values submitted. That formula shall incorporate the weighting of all the 
criteria fixed to determine the tender offering best value for money, as indicated in the contract notice or in the specification; for that purpose, any ranges shall, however, be reduced beforehand to a  
 
EN  Error! Unknown document property name.  EN specified value. specified value. 
Where variants are authorised, a separate formula 
shall be provided for each variant. Where variants are authorised, a separate formula 
shall be provided for each variant.  
5. Throughout each phase of an electronic 
auction the contracting authorities shall instantaneously communicate to all tenderers at least sufficient information to enable them to ascertain their relative rankings at any moment. They may also communicate other information concerning other prices or values submitted, provided that that is stat ed in the specification. 
They may also at any time announce the number of participants in that phase of the auction. In no case, 
however, may they disclose the identities of the tenderers during any phase of an electronic auction. 5. Throughout each phase of an electronic 
auction the contracting authorities shall instantaneously communicate to all tenderers at least sufficient information to enable them to ascertain their relative rankings at any moment. They may also communicate other information concerning other prices or values submitted, provided that that is stat ed in the specification. 
They may also at any time announce the number of participants in that phase of the auction. In no case, 
however, may they disclose the identities of the tenderers during any phase of an electronic auction.  
6. Contracting authoriti es shall close an 
electronic auction in one or  more of the following 
ways: 6. Contracting authorities shall close an 
electronic auction in one or  more of the following 
ways:  
(a) in the invitation to take part in the auction, 
they shall indicate the date and time fixed in advance; (a) in the invitation to take part in the auction, 
they shall indicate the date and time fixed in advance;  
(b) when they receive no more new prices or 
new values which meet the requirements concerning minimum differences. In that event, the contracting authorities shall state in the invitation to 
take part in the auction the time which they will allow to elapse after receiving the last submission (b) when they receive no more new prices or 
new values which meet the requirements concerning minimum differences. In that event, the contracting authorities shall state in the invitation to 
take part in the auction the time which they will allow to elapse after receiving the last submission  
 
EN  Error! Unknown document property name.  EN before they close the electronic auction; before they close the electronic auction; 
(c) when the number of phases in the auction, 
fixed in the invitation to ta ke part in the auction, 
has been completed. (c) when the number of phases in the auction, 
fixed in the invitation to ta ke part in the auction, 
has been completed.  
When the contracting aut horities have decided to 
close an electronic auction in accordance with point (c), possibly in combination with the arrangements laid down in point (b), the i nvitation to take part in 
the auction shall indicate the timetable for each phase of the auction. When the contracting aut horities have decided to 
close an electronic auction in accordance with point (c), possibly in combination with the arrangements laid down in point (b), the i nvitation to take part in 
the auction shall indicate the timetable for each phase of the auction.  
7. After closing an electronic auction, 
contracting authorities sha ll award the contract in 
accordance with Article 138 on the basis of the results of the el ectronic auction. 7. After closing an electronic auction, 
contracting authorities sha ll award the contract in 
accordance with Article 138 on the basis of the 
results of the el ectronic auction.  
Contracting authorities may not have improper 
recourse to electronic au ctions nor may they use 
them in such a way as to prevent, restrict or distort competition or to change the subject-matter of the contract, as put up for tender in the published 
contract notice and defined in the specification. Contracting authorities may not have improper 
recourse to electronic au ctions nor may they use 
them in such a way as to prevent, restrict or distort competition or to change the subject-matter of the contract, as put up for tender in the published 
contract notice and defined in the specification.  
Article 139 
Abnormally low tenders 
(Article 97(2) of the Financial Regulation) Article 139 
Abnormally low tenders 
(Article 97(2) of the Financial Regulation)  
1. If, for a given contract , tenders appear to be 
abnormally low, the contra cting authority shall, 1. If, for a given contract , tenders appear to be 
abnormally low, the contra cting authority shall,  
 
EN  Error! Unknown document property name.  EN before rejecting such tend ers on that ground alone, 
request in writing details of the constituent elements of the tender which it considers relevant and shall verify those constituent elements, after due hearing of the parties, taking account of the explanations received. These details may relate in particular to compliance with the provisions relating to employment protection and working 
conditions in force at the place where the work, 
service or supply is to be performed. before rejecting such tend ers on that ground alone, 
request in writing details of the constituent elements of the tender which it considers relevant and shall verify those constituent elements, after due hearing of the parties, taking account of the explanations received. These details may relate in particular to compliance with the provisions relating to employment protection and working 
conditions in force at the place where the work, 
service or supply is to be performed. 
The contracting authority may, in particular, take 
into consideration explanations relating to: The contracting authority may, in particular, take 
into consideration explanations relating to:  
(a) the economics of the manufacturing 
process, of the provision of services or of the 
construction method; (a) the economics of the manufacturing 
process, of the provision of services or of the 
construction method;  
b) the technical solutions chosen or the 
exceptionally favourable condi tions available to the 
tenderer; b) the technical solutions chosen or the 
exceptionally favourable c onditions available to the 
tenderer;  
(c) the originality of the tender. (c) the originality of the tender.  
2. Where the contracting authority establishes 
that a tender is abnormally low as a result of State 
aid provided, it may reject  the tender on that ground 
alone only if the tenderer is  unable to prove, within 
a reasonable time determ ined by the contracting 
authority, that the aid in question has been awarded definitively and in accordance with the procedures and decisions specified in  the Community rules on 2. Where the contracting authority establishes 
that a tender is abnormally low as a result of State 
aid provided, it may reject  the tender on that ground 
alone only if the tenderer is  unable to prove, within 
a reasonable time determ ined by the contracting 
authority, that the aid in question has been awarded 
definitively and in accordance with the procedures and decisions specified in the Community
 Union   
 
EN  Error! Unknown document property name.  EN State aid. rules on State aid. 
Article 140 
Time limits for receipt of tenders and requests to 
participate 
(Article 98(1) of the Financial Regulation) Article 140 
Time limits for receipt of tenders and requests to 
participate 
(Article 98(1) of the Financial Regulation)  
1. The time limits for the receipt of tenders 
and requests to participate, laid down in calendar days by the contracting au thorities, shall be long 
enough to allow interested parties a reasonable and 
appropriate period to prepare and submit their tenders, taking particular account of the complexity of the contract or the need to visit the site or consult 
on the spot the docume nts annexed to the 
specifications. 1. The contracting authorities shall lay 
down in calendar days fix and peremptory time 
limits for the receipt of te nders and requests to 
participate. The time limits shall be  The time 
limits for the receipt of tenders and requests to 
participate, laid down in calendar days by the 
contracting authorities, shall be long enough to 
allow interested parties a reasonable and appropriate period to prepare and submit their tenders, taking particular account of the complexity of the contract or the need to visit the site or consult 
on the spot the docume nts annexed to the 
specifications. Clarifies that time limits for receipts of 
offers/requests of pa rticipation to CfTs 
cannot be prolonged. This is in line with recent case-law (case T-202-08R) 
 
2. In open procedures for contracts with a 
value equal to or above the thresholds set in Article 
158, the time limit for receipt of tenders shall be no less than 52 days from the date on which the contract notice is dispatched. 2. In open procedures for contracts with a 
value equal to or above the thresholds set in Article 
158, the time limit for receipt of tenders shall be no less than 52 days from the date on which the contract notice is dispatched. 
However, in procedures after a call for 
expression of interest referred to in Article 
128(1)(b), the time limit for receipt of tenders 
shall be no less than 21 days from the date on  Shortening the time limit using the new 
option for middle-value procedures. 
 
EN  Error! Unknown document property name.  EN which the invitation to tender is dispatched.  
3. In restricted procedures, in cases of use of 
the competitive dialogue referred to in Article 125b and in negotiated procedur es with publication of a 
contract notice for contr acts above the thresholds 
set in Article 158, the time-limit for receipt of requests to participate sha ll be no less than 37 days 
from the date on which the contract notice is dispatched. 3. In restricted procedures, in cases of use of 
the competitive dialogue referred to in Article 125b and in negotiated procedur es with publication of a 
contract notice for contr acts above the thresholds 
set in Article 158, the time-limit for receipt of requests to participate sha ll be no less than 37 days 
from the date on which the contract notice is dispatched.  
In restricted procedures for contracts with a value 
equal to or above the thres holds set in Article 158, 
the time limit for receipt of tenders shall be no less than 40 days from the date on which the invitation to tender is dispatched. In restricted procedures for contracts with a value 
equal to or above the thres holds set in Article 158, 
the time limit for receipt of tenders shall be no less than 40 days from the date on which the invitation to tender is dispatched.  
However, in the restricted procedures after a call 
for expressions of interest  referred to in Article 
128, the time limit for receipt of tenders shall be no less than 21 days from the date on which the invitation to tender is dispatched. However, in the restricted  procedures after a call 
for expressions of interest  referred to in Article 
128(1)
, the time limit for receipt of tenders shall be 
(a) no less than 21 days from the date on which the 
invitation to tender is dispatched for receipt of 
tenders in the case of the procedure referred to 
in Article 128(1)(a) and Article 128(3)(b)(i);  
(b) no less than 10 days fo r receipt of requests to 
participate and no less th an 21 days  for receipt 
of tenders in the case of  the two-step procedure 
referred to in Article 128(3)(b)(ii).  Amendment linked to the changes in Article 
128. 
4. Where the contracting authorities, in 4. Where the contracting authorities, in Th e thresholds for obligatory publication of 
 
EN  Error! Unknown document property name.  EN accordance with Article 118( 2), have sent a pre-
information notice for publication or have themselves published a pre-information notice on their buyer profile, the time  limit for the receipt of 
tenders may generally be reduced to 36 days but shall in no circumstances be less than 22 days from the date of dispatch of the contract notice or the 
invitation to tender. accordance with Article 118(2), have sent a pre-
information notice for publication or have themselves published a pre
-prior  information 
notice on their buyer profile for contracts above 
the thresholds set in Article 158 , the time limit for 
the receipt of tenders may generally be reduced to 36 days but shall in no circumstances be less than 22 days from the date of dispatch of the contract notice or the invitation to tender. a pre-information notice are those of Article 
158 as Article 157 is proposed to be deleted. 
The shortened time limits referred to in the first subparagraph shall be permitted only if the pre-information notice satisfies the following conditions: The shortened time limits referred to in the first 
subparagraph shall be permitted only if the pre
-
prior  information notice satisfies the following 
conditions:  
(a) it contains all the information required for 
the contract notice, insofar as that information is available at the time the notice is published; (a) it contains all the information required for 
the contract notice, insofar as that information is available at the time the notice is published;  
(b) it was sent for public ation between 52 days 
and 12 months before the date on which the contract notice was sent. (b) it was sent for public ation between 52 days 
and 12 months before the date on which the contract notice was sent.  
5. The time limits for receipt of tenders may 
be shortened by five days if unrestricted and direct 
access is available by electronic means to all documents constituting the call for tenders from the date of publication of the contract notice or the call 
for expressions of interest. 5. The time limits for receipt of tenders may 
be shortened by five days if unrestricted and direct 
access is available by electronic means to all documents constituting the call for tenders from the date of publication of the c ontract notice or the call 
for expressions of interest.  
 
EN  Error! Unknown document property name.  EN Article 141 
Time allowed for access to invitation to tender 
documents 
(Article 98(1) of the Financial Regulation) Article 141 
Time allowed for access to invitation to tender 
documents 
(Article 98(1) of the Financial Regulation)  
1. Provided that the request was made in good 
time before the deadline for submission of tenders, the specification or descriptive documents in the procedure referred to in Article 125b and additional documents shall be sent, within six calendar days of the receipt of the request, to all economic operators who have requested the sp ecification or expressed 
interest in taking part in a dialogue or submitting a tender, subject to the pr ovisions of pa ragraph 4. 
Contracting authorities are not bound to reply to requests for documents made less than five working days before the deadline for submission of tenders. 1. Provided that the request was made in good 
time before the deadline for submission of tenders, the specification or descriptive documents in the procedure referred to in Article 125b and additional documents shall be sent, within six calendar days of the receipt of the request, to all economic operators who have requested the sp ecification or expressed 
interest in taking part in a dialogue or submitting a tender, subject to the pr ovisions of pa ragraph 4. 
Contracting authorities are not bound to reply to requests for documents made less than five working days before the deadline for submission of tenders.  
2. Provided that the request was made in good 
time before the deadline for submission of tenders, additional information relating to the specification or the descriptive documents or additional documents shall be supplied simultaneously to all economic operators who have requested the 
specification or expressed interest in taking part in a dialogue or submitting a tender no later than six days before the deadline for the receipt of tenders or, in the case of requests  for information received 
less than eight calendar days before the deadline for receipt of tenders, as soon as possible after receipt 2. Provided that the request was made in good 
time before the deadline for submission of tenders, additional information relating to the specification or the descriptive documents or additional documents shall be supplied simultaneously to all economic operators who have requested the 
specification or expressed interest in taking part in a dialogue or submitting a tender no later than six days before the deadline for the receipt of tenders or, in the case of requests  for information received 
less than eight calendar days before the deadline for receipt of tenders, as soon as possible after receipt  
 
EN  Error! Unknown document property name.  EN of the request. Contracting authorities are not 
bound to reply to requests for additional information made less than five working days before the deadline for submission of tenders. of the request. Contracting authorities are not 
bound to reply to requests for additional information made less than five working days before the deadline for submission of tenders. 
3. If, for whatever reason, the specifications and the additional documents or information cannot be supplied within the time-limits set in paragraphs 1 and 2, or where tenders can be made only after a 
visit to the site or after on-the-spot consultation of 
the documents annexed to the specifications, the time-limits for receipt of tenders referred to in Article 140 shall be extended to enable all economic operators to acquaint themselves with all the requisite information for preparing tenders, subject to the provisions  of Article 240. That 
extension shall be adve rtised in appropriate 
manner, in accordance with the arrangements set out in Articles 118 to 121. 3. If, for whatever reason, the specifications 
and the additional documents or information cannot be supplied within the time-limits set in paragraphs 1 and 2, or where tenders can be made only after a 
visit to the site or after on-the-spot consultation of 
the documents annexed to the specifications, the time-limits for receipt of tenders referred to in Article 140 shall be extended to enable all economic operators to acquaint themselves with all the requisite information for preparing tenders, subject to the provisions  of Article 240. That 
extension shall be adve rtised in appropriate 
manner, in accordance with the arrangements set out in Articles 118 to 121.  
4. In the open procedure, including the 
dynamic purchasing systems referred to in Article 125a, if there is unrestricte d and full direct access 
by electronic means to the entire call for tenders and any additional documents, paragraph 1 shall not apply. The contract no tice referred to in Article 
118(3) shall give the Inte rnet address at which 
those documents can be consulted. 4. In the open procedure, including the 
dynamic purchasing systems referred to in Article 125a, if there is unrestricte d and full direct access 
by electronic means to the entire call for tenders and any additional documents, paragraph 1 shall not apply. The contract no tice referred to in Article 
118(3) shall give the Inte rnet address at which 
those documents can be consulted.  
 
EN  Error! Unknown document property name.  EN Article 142 
Time limits in urgent cases 
(Article 98(1) of the Financial Regulation) Article 142 
Time limits in urgent cases 
(Article 98(1) of the Financial Regulation)  
1. Where duly substantiated urgency renders 
impracticable the minimum time limits laid down in Article 140(3) for restricted procedures and negotiated procedures wher e a contract notice is 
published, contracting authorities may set the following time limits, expressed in calendar days: 1. Where duly substantiated urgency renders 
impracticable the minimum time limits laid down in Article 140(3) for restricted procedures and negotiated procedures wher e a contract notice is 
published, contracting authorities may set the following time limits, expressed in calendar days:  
(a) a time limit for the receipt of requests to 
participate which may not be less than 15 days 
from the date on which the contract notice is dispatched or 10 days if  the notice is sent to 
OPOCE electronically; (a) a time limit for the receipt of requests to 
participate which may not be less than 15 days 
from the date on which the contract notice is dispatched or 10 days if  the notice is sent to the 
Publications Office OPOCE  electronically;  
(b) a time limit for the receipt of tenders which 
may not be less than 10 days from the date of dispatch of the invitation to tender. (b) a time limit for the receipt of tenders which 
may not be less than 10 days from the date of dispatch of the invitation to tender.  
2. In restricted procedures and fast-track 
negotiated procedures, a dditional information on 
the specifications shall, provided it has been requested in good time, be communicated to all candidates or tenderers no later than four calendar 
days before the deadline for receipt of tenders. 2. In restricted procedures and fast-track 
negotiated procedures, a dditional information on 
the specifications shall, provided it has been requested in good time, be communicated to all candidates or tenderers no la ter than four calendar 
days before the deadline for receipt of tenders.  
 
EN  Error! Unknown document property name.  EN Article 143 
Methods of communication 
(Article 98(1) of the Financial Regulation) Article 143 
Methods of communication 
(Article 98(1) of the Financial Regulation)  
1. The arrangements for the submission of 
tenders and requests to participate shall be determined by the contracting authority, which may choose an exclusive method of submission. Tenders 
and requests to participate may be submitted by letter or by electronic means. Requests to participate may also be submitted by fax. 1. The arrangements for the submission of 
tenders and requests to participate shall be determined by the contracting authority, which may choose an exclusive method of submission. Tenders 
and requests to participate may be submitted by letter or by electronic means. Requests to participate may also be submitted by fax.  
The means of communication chosen shall be non-
discriminatory in nature  and shall not have the 
effect of restricting the access of economic 
operators to the award procedure. The means of communication chosen shall be non-
discriminatory in nature  and shall not have the 
effect of restricting the access of economic 
operators to the award procedure.  
The means of communication chosen shall be such 
as to ensure that the following conditions are satisfied: The means of communication chosen shall be such 
as to ensure that the following conditions are satisfied:  
(a) each submission contains all the 
information required for its evaluation; (a) each submission contains all the 
information required for its evaluation;  
(b) the integrity of data is preserved; (b ) the integrity of data is preserved;  
(c) the confidentiality of tenders is preserved 
and the contracting author ities examine the content 
of tenders only after the time limit set for submitting them has expired. (c) the confidentiality of tenders and requests 
to participate is preserved and the contracting 
authorities examine th e content of tenders and 
requests to participate only after the time limit set  
 
EN  Error! Unknown document property name.  EN for submitting them has expired. 
Where necessary for the purposes of legal proof, 
the appointing authorities may decide that requests to participate submitted by fax must be confirmed by letter or electronically as soon as possible and at 
all events before the final date set in Articles 140 and 251. Where necessary for the purposes of legal proof, 
the appointing authorities may decide that requests to participate submitted by fax must be confirmed by letter or electronically as soon as possible and at 
all events before the final date set in Articles
 140 
and 251 .  
Contracting authorities may require that electronic 
tenders be accompanied by an advanced electronic signature within the meaning of Directive 1999/93/EC of the European Parliament and of the 
Council
26. Contracting authorities may require that electronic 
tenders and requests to participate  be 
accompanied by an advan ced electronic signature 
within the meaning of Di rective 1999/93/EC of the 
European Parliament and of the Council27.  
1a. Where the contracti ng authority authorises 
submission of tenders and requests to participate by electronic means, the tools used and their technical 
characteristics shall be  non-discriminatory in 
nature, generally availabl e and interoperable with 
the information and communication technology products in general use. The information relating to the specifications required for presentation of tenders and requests to participate, including 
encryption, shall be made av ailable to the tenderers 
or candidates. 1a. Where the contracti ng authority authorises 
submission of tenders and requests to participate by electronic means, the tools used and their technical 
characteristics shall be  non-discriminatory in 
nature, generally availabl e and interoperable with 
the information and communication technology products in general use. The information relating to the specifications required for presentation of tenders and requests to participate, including 
encryption, shall be made av ailable to the tenderers 
or candidates.  
Moreover, the devices for the electronic receipt of 
tenders and requests to part icipate shall conform to Moreover, the devices for the electronic receipt of 
tenders and requests to part icipate shall conform to Simplification of the contracts below the 
Directive threshold – use of the electronic 
                                                 
26 OJ L 13, 19.1.2000, p. 12. 
27 OJ L 13, 19.1.2000, p. 12. 
 
EN  Error! Unknown document property name.  EN the requirements of A nnex X to Directive 
2004/18/EC. the requirements of Annex X to Directive 
2004/18/EC except for contracts below the 
threshold laid down in Article 158(1) . submission would depend on the judgment 
of AO supported by opening committee. 
 
2. Where submission is by letter, tenderers 
may choose to submit tenders: 2. Where submission is by letter, tenderers or 
candidates may choose to submit tenders or 
requests to participate:   
(a) either by post or by courier service, in 
which case the call for tenders  shall specify that the 
evidence shall be constituted by the date of dispatch, the postmark or the date of the deposit 
slip; (a) either by post or by courier service, in 
which case the call for tenders  shall specify that the 
evidence shall be constituted by the date of dispatch, the postmark or the date of the deposit 
slip;  
(b) by hand-delivery to the premises of the 
institution by the tenderer in person or by an agent; 
for which purposes the call for tenders shall specify, in addition to the information referred to in Article 130(2)(a), the depa rtment to which tenders 
are to be delivered against a signed and dated receipt. (b) by hand-delivery to the premises of the 
institution by the tenderer or candidates 
in person 
or by an agent; for which purposes the call for tenders shall specify, in a ddition to the information 
referred to in Article 130( 2)(a), the department to 
which tenders or requests to participate 
are to be 
delivered against a signe d and dated receipt.  
3. In order to maintain secrecy and to avoid 
any difficulties where tenders  are sent by letter, the 
invitation to tender must include the following provision: 3. In order to maintain secrecy and to avoid 
any difficulties where tenders  are sent by letter, the 
invitation to tender must include the following provision:  
Tenders must be submitted in a sealed envelope 
itself enclosed within a second sealed envelope. The inner envelope must bear, in addition to the 
name of the department to which it is addressed, as Tenders must be submitted in a sealed envelope 
itself enclosed within a second sealed envelope. 
The inner envelope must bear, in addition to the 
name of the department to which it is addressed, as  
 
EN  Error! Unknown document property name.  EN indicated in the invitation to tender, the words 
Invitation to tender — Not to be opened by the mail 
service. If self-adhesive envelopes are used, they 
must be sealed with adhesive tape and the sender must sign across that tape. indicated in the invitation to tender, the words 
Invitation to tender — Not to be opened by the mail 
service. If self-adhesive envelopes are used, they 
must be sealed with adhesive tape and the sender must sign across that tape. 
Article 144 
Tender guarantees 
(Article 98(2) of the Financial Regulation) Article 144 
Tender guarantees 
(Article 98(2) of the Financial Regulation)  
The contracting authority may require a tender 
guarantee, lodged in accor dance with Article 150, 
representing 1 % to 2 % of  the total value of the 
contract. The contracting authority may require a tender 
guarantee, lodged in accor dance with Article 150, 
representing 1 % to 2 % of  the total value of the 
contract.  
A tender guarantee shall be released when the 
contract is awarded. If no tender is submitted by the deadline set or if the tender is subsequently withdrawn, the guarantee shall be retained. A tender guarantee shall be released when the 
contract is awarded. If no tender is submitted by the deadline set or if the tender is subsequently withdrawn, the guarantee shall be retained.  
Article 145 
Opening of tenders and requests to participate 
(Article 98(3) of the Financial Regulation) Article 145 
Opening of tenders and requests to participate 
(Article 98(3) of the Financial Regulation)  
1. All requests to participate and tenders that 
satisfy the requirements of Article 143 shall be opened. 1. All requests to participate and tenders that 
satisfy the requirements of Article 143 shall be opened.  
2. Where the value of a contract exceeds the 
threshold laid down in Article 129(1), the authorising officer res ponsible shall appoint a 
committee to open the tenders. 2. Where the value of a contract exceeds the 
threshold laid down in Article 129(1), the authorising officer res ponsible shall appoint a 
committee to open the tenders.  
 
EN  Error! Unknown document property name.  EN The opening committee shall be made up of at least 
three persons representing at least two organisational entities of the institution concerned 
with no hierarchical link between them, at least one of which does not come under the authorising officer responsible. To avoid any conflict of interests, those persons shall be subject to the obligations laid down in Article 52 of the Financial Regulation. In the repres entations or local units 
referred to in Article 254 or isolated in a Member 
State, if there are no separate entities, the requirement of organisational entities with no hierarchical link between them shall not apply. The opening committee shall be made up of at least 
three persons representing at least two organisational entities of the institution concerned 
with no hierarchical link between them, at least one of which does not come under the authorising officer responsible. To avoid any conflict of interests, those persons shall be subject to the obligations laid down in Article 52 of the Financial Regulation. In the repres entations or local units 
referred to in Article 254 or isolated in a Member 
State, if there are no separate entities, the requirement of organisational entities with no hierarchical link between them shall not apply.  
In the case of a procurement procedure launched on 
an interinstitutional basis, the opening committee shall be appointed by th e competent authorising 
officer from the institution responsible for the procurement procedure. The composition of the opening committee shall reflec t, insofar as possible, 
the interinstitutional char acter of the procurement 
procedure. In the case of a procurement procedure launched on 
an interinstitutional basis, the opening committee shall be appointed by th e competent authorising 
officer from the institution responsible for the procurement procedure. The composition of the opening committee shall reflec t, insofar as possible, 
the interinstitutional char acter of the procurement 
procedure.  
3. Where tenders are submitted by post, one or 
more members of the opening committee shall initial the documents proving the date and time of dispatch of each tender. 3. Where tenders are submitted by post, one or 
more members of the opening committee shall initial the documents proving the date and time of dispatch of each tender.  
They shall also initial: They shall also initial:  
(a) either each page of each tender; or (a) either each page of each tender; or  
 
EN  Error! Unknown document property name.  EN (b) the cover page and the pages containing the 
financial details of each tender, the integrity of the initial tender being guaranteed by any appropriate technique employed by a department that is 
independent of the authorising department, save in the cases referred to in the third subparagraph of 
paragraph 2. (b) the cover page and the pages containing the 
financial details of each tender, the integrity of the initial tender being guaranteed by any appropriate technique employed by a department that is 
independent of the authorising department, save in the cases referred to in the third subparagraph of 
paragraph 2.  
Where the contract is awarded under the automatic 
award procedure in accord ance with point (a) of 
Article 138(1), the pri ces quoted in tenders 
satisfying the requirements shall be made public. Where the contract is awarded under the automatic 
award procedure in accord ance with point (a) of 
Article 138(1), the pri ces quoted in tenders 
satisfying the requirements shall be made public.  
The members of the committee shall sign the 
written record of the opening of the tenders received, which shall identify those tenders which satisfy the requirements and those which do not, and which shall give the grounds on which tenders were rejected for non-comp liance, by reference to 
the methods of submitting tenders referred to in Article 143. The members of the committee shall sign the 
written record of the opening of the tenders received, which shall identify those tenders which satisfy
 comply with the requirements of Article 
143 and those which do not, and which shall give 
the grounds on which tenders were rejected for non-compliance, by reference to the methods of submitting tenders referred to in Article 143. Clarification of terminology 
 
Article 146 
Committee for the evalu ation of tenders and 
requests to participate 
(Article 98(4) of the Financial Regulation) Article 146 
Committee for the evalu ation of tenders and 
requests to participate 
(Article 98(4) of the Financial Regulation)  
1. All requests to pa rticipate and tenders 
declared as satisfying th e requirements shall be 
evaluated and ranked by an evaluation committee 
set up for each of the two stages on the basis of the 1. All requests to pa rticipate and tenders 
declared as satisfying  complying with  the 
requirements of Article 143  shall be evaluated and 
ranked by an evaluation committee set up for each  
Clarification of terminology 
 
EN  Error! Unknown document property name.  EN pre-announced exclusion and selection criteria and 
the award criteria respectively. of the two stages on the basis of the pre-announced 
exclusion and selection criteria and the award 
criteria respectively. 
That committee shall be appointed by the authorising officer responsib le to give an advisory 
opinion on contracts with a value above the threshold referred to in Article 129(1). That committee shall be appointed by the 
authorising officer responsib le to give an advisory 
opinion on contracts with a value above the threshold referred to in Article 129(1).  
However, the authorising officer responsible may 
decide that the evaluation committee is to evaluate and rank the tenders on the basis of the award criteria only and that the exclusion and selection criteria are to be evaluated by other appropriate means guaranteeing the ab sence of conflicts of 
interests. However, the authorising officer responsible may 
decide that the evaluation committee is to evaluate and rank the tenders on the basis of the award criteria only and that the exclusion and selection criteria are to be evaluated by other appropriate means guaranteeing the ab sence of conflicts of 
interests.  
2. The evaluation committee shall be made up 
of at least three persons representing at least two organisational entities of the institution concerned 
with no hierarchical link between them, at least one of which does not come under the authorising officer responsible. To avoid any conflict of interests, those persons shall be subject to the obligations laid down in Article 52 of the Financial Regulation. 2. The evaluation committee shall be made up 
of at least three persons representing at least two 
organisational entities of the institution concerned 
with no hierarchical link between them, at least one of which does not come under the authorising officer responsible. To avoid any conflict of interests, those persons shall be subject to the obligations laid down in Article 52 of the Financial Regulation.  
In the representations and local units referred to in 
Article 254 or isolated in a Member State, if there are no separate entitie s, the requirement of 
organisational entities with no hierarchical link 
between them shall not apply.  In the representations and local units referred to in 
Article 254 or isolated in a Member State, if there are no separate entitie s, the requirement of 
organisational entities with no hierarchical link 
between them shall not apply.  No change here
, even if the situation is 
similar for traditional and executive agencies to carry ou t evaluations without 
using persons coming from two 
organisational entities. In such bodies all 
 
EN  Error! Unknown document property name.  EN staff is subject to the same hierarchy: the 
Executive Director. However, as these bodies have their own financial regulations, the rule should be introduced in these 
specific regulations.  
 to Article 178(1), third paragraph 
The evaluation committee may be composed of the 
same members as the committee opening the tenders. The evaluation committee may be composed of the 
same members as the committee opening the tenders.  
Outside experts may assist the committee by 
decision of the authorising officer responsible. The authorising officer respons ible shall ensure that 
these experts satisfy the obligations laid down in Article 52 of the Financial Regulation. Outside experts may assist the committee by 
decision of the authorising officer responsible. The authorising officer respons ible shall ensure that 
these experts satisfy the obligations laid down in Article 52 of the Financial Regulation.  
In the case of a procurement procedure launched on 
an interinstitutional basis, the evaluation committee shall be appointed by th e competent authorising 
officer from the institution responsible for the procurement procedure. The composition of the evaluation committee shall reflect, insofar as possible, the interinstitutional character of the procurement procedure. In the case of a procurement procedure launched on 
an interinstitutional basis, the evaluation committee shall be appointed by th e competent authorising 
officer from the institution responsible for the procurement procedure. The composition of the evaluation committee shall reflect, insofar as possible, the interinstitutional character of the procurement procedure.  
3. Requests to particip ate and tenders which 
do not satisfy all the essential requirements set out in the supporting documentation for invitations to 3. Requests to particip ate and tenders which 
do not satisfy all the essential requirements set out in the supporting documentation for invitations to
 Clarification of terminology 
 
EN  Error! Unknown document property name.  EN tender or the specific requirements laid down 
therein shall be eliminated. tender documents  or the specific requirements laid 
down therein shall be eliminated. 
However, the evaluation committee or the contracting authority may ask candidates or tenderers to supply additional material or to clarify the supporting documents submitted in connection with the exclusion and selection criteria, within the time limit it specifies. However, the evaluation committee or the 
contracting authority may ask candidates or tenderers to supply additional material or to clarify the supporting documents submitted in connection with the exclusion and selection criteria, within the time limit it specifies.  
Requests to participate a nd tenders which are not 
excluded and which meet the selection criteria shall be considered admissible. Requests to participate a nd tenders which are not 
excluded and which meet the selection criteria shall be considered admissible.  
4. In the case of abnor mally low tenders as 
referred to in Article 1 39 of this Regulation, the 
evaluation committee shall request any relevant information concerning the composition of the tender. 4. In the case of abnor mally low tenders as 
referred to in Article 1 39 of this Regulation, the 
evaluation committee shall request any relevant information concerning the composition of the tender.  
Article 147 
Results of the evaluation 
(Article 99 of the Financial Regulation) Article 147 
Results of the evaluation 
(Article 99 of the Financial Regulation)  
1. A written record of the evaluation and 
ranking of requests to participate and tenders declared to satisfy the requirements shall be drawn up and dated.  1. A written record of the evaluation and 
ranking of requests to participate and tenders declared to satisfy the requirements shall be drawn up and dated.   
The written record shall be signed by all the 
members of the evaluation committee. The written record shall be signed by all the 
members of the evaluation committee. Signature The agreement of the members of the 
committee can also be given using 
 
EN  Error! Unknown document property name.  EN may be made in an elect ronic system providing 
sufficient identificati on of the signatory.  electronic tools. 
If the evaluation committee was not given 
responsibility for the evaluation and ranking of the 
tenders on the basis of the exclusion and selection criteria, the written record  shall also be signed by 
the persons who were given that responsibility by the authorising officer responsible. The written record shall be kept for future reference. If the evaluation committee was not given 
responsibility to verify the tenders against
 for the 
evaluation and ranki ng of the tenders on the basis 
of the exclusion and selection criteria, the written 
record shall also be sign ed by the persons who were 
given that responsibility by the authorising officer 
responsible. The written r ecord shall be kept for 
future reference.  
2. The written record referred to in paragraph 
1 shall contain at least the following: 2. The written record referred to in paragraph 
1 shall contain at least the following:  
(a) the name and address of the contracting 
authority, and the subject a nd value of the contract, 
the framework contract or the dynamic purchasing system;   (a) the name and address of the contracting 
authority, and the subject a nd value of the contract, 
the framework contract or the dynamic purchasing system;    
(b) the names of the candidates or tenderers 
rejected and the reasons for their rejection; (b) the names of the candidates or tenderers 
rejected and the reasons for their rejection;  
(c) the names of the candidates or tenderers to 
be examined and the reasons for their selection; (c) the names of the candidates or tenderers to 
be examined and the reasons for their selection;  
(d) the reasons for the rejection of tenders 
found to be abnormally low; (d) the reasons for the rejection of tenders 
found to be abnormally low;  
(e) the names of the candidates or contractor 
proposed and the reasons for that choice and, if known, the proportion of the contract or the (e) the names of the candidates or contractor 
proposed and the reasons for that choice and, if known, the proportion of the contract or the  
 
EN  Error! Unknown document property name.  EN framework contract which the contractor intends to 
subcontract to third parties. framework contract which the contractor intends to 
subcontract to third parties. 
3. The contracting authority  shall then take its 
decision giving at least the following: 3. The contracting authority  shall then take its 
decision giving at least the following:  
(a) the name and address of the contracting 
authority, and the subject a nd value of the contract, 
the framework contract or the dynamic purchasing system; (a) the name and address of the contracting 
authority, and the subject a nd value of the contract, 
the framework contract or the dynamic purchasing system;  
(b) the names of the candidates or tenderers 
rejected and the reasons for their rejection; (b) the names of the candidates or tenderers 
rejected and the reasons for their rejection;  
(c) the names of the candidates or tenderers to 
be examined and the reasons for their selection; (c) the names of the candidates or tenderers to 
be examined and the reasons for their selection;  
(d) the reasons for the rejection of tenders 
found to be abnormally low; (d) the reasons for the rejection of tenders 
found to be abnormally low;  
(e) the names of the candidates or contractor 
selected and the reasons for that choice by reference to the selec tion and award criteria 
announced in advance and, if known, the proportion of the contra ct or the framework 
contract which the contract or intends to subcontract 
to third parties; (e) the names of the candidates or contractor 
selected and the reasons for that choice by reference to the selec tion and award criteria 
announced in advance and, if known, the proportion of the contra ct or the framework 
contract which the contract or intends to subcontract 
to third parties;  
(f) in the case of negotiated procedures and 
competitive dialogue, the circumstances referred to in Articles 125b, 126, 127, 242, 244, 246 and 247 which justify their use; (f) in the case of negotiated procedures and 
competitive dialogue, the circumstances referred to in Articles 125b, 126, 127, 242, 244, 246 and 247 which justify their use;  
 
EN  Error! Unknown document property name.  EN (g) where appropriate, the reasons why the 
contracting authority has decided not to award a 
contract. (g) where appropriate, the reasons why the 
contracting authority has decided not to award a 
contract.  
In the case of a procurement procedure launched on 
an interinstitutional basis, the decision referred to in the first subparagraph shall be taken by the contracting authority responsible for the procurement procedure. In the case of a procurement procedure launched on 
an interinstitutional basis, the decision referred to in the first subparagraph shall be taken by the contracting authority responsible for the procurement procedure.  
Article 148 
Contacts between cont racting authorities and 
tenderers 
(Article 99 of the Financial Regulation) Article 148 
Contacts between cont racting authorities and 
tenderers 
(Article 99 of the Financial Regulation)  
1. Contact between the contracting authority 
and tenderers during the c ontract award procedure 
may take place, by way of exception, under the conditions set out in paragraphs 2 and 3. 1. Contact between the contracting authority 
and tenderers during the c ontract award procedure 
may take place, by way of exception, under the conditions set out in paragraphs 2 and 3.  
2. Before the closing date for the submission 
of tenders, in respect of the additional documents and information referred to in Article 141, the contracting authority may: 2. Before the closing date for the submission 
of tenders, in respect of the additional documents and information referred to in Article 141, the contracting authority may:  
(a) at the instance of tenderers, communicate 
additional information so lely for the purpose of 
clarifying the nature of  the contract, such 
information to be communi cated on the same date 
to all tenderers who have asked for the (a) at the instance of tenderers, communicate 
additional information so lely for the purpose of 
clarifying the nature of  the contract, such 
information to be communi cated on the same date 
to all tenderers who have asked for the  
 
EN  Error! Unknown document property name.  EN specifications; specifications; 
(b) at its own instance, if it discovers an error, a 
lack of precision, an omi ssion or any other type of 
clerical defect in the text  of the contract notice, 
invitation to tender or specifications, inform the persons concerned on the same date and in a manner identical with that applicable in respect of the original invitation to tender. (b) at its own instance, if it discovers an error, a 
lack of precision, an omi ssion or any other type of 
clerical defect in the text  of the contract notice, 
invitation to tender or specifications, inform the persons concerned on the same date and in a manner identical with that applicable in respect of the original invitation to tender.  
3. If, after the tenders have been opened, some 
clarification is required in  connection with a tender, 
or if obvious clerical erro rs in the tender must be 
corrected, the contracting authority may contact the 
tenderer, although such contact may not lead to any alteration of the te rms of the tender. 3. If, after the tenders have been opened, some 
clarification is required in  connection with a tender, 
or if obvious clerical erro rs in the tender must be 
corrected, the contracting authority may contact the tenderer, although such contact may not lead to any alteration of the te rms of the tender.  
4. In every case where contact has been made, 
a «note for the file» shall be drawn up. 4. In every case where contact has been made, 
a «note for the file» shall be drawn up  a record 
shall be kept in the tender file . "Note for the file" is internal Commission 
jargon 
5. In the case of contracts for legal services within the meaning of Annex IIB to Directive 2004/18/EC, the contracting authority may enter into the necessary contacts with tenderers to check the selection and/or award criteria. 5. In the case of contracts for legal services 
within the meaning of Annex IIB to Directive 2004/18/EC, the contracting authority may enter into the necessary contacts with tenderers to check the selection and/or award criteria.  
 
EN  Error! Unknown document property name.  EN Article 149 
Information for candidates and tenderers 
(Articles 100(2), 101 and 105 of the Financial 
Regulation) Article 149 
Information for candidates and tenderers 
(Articles 100(2), 101 and 105 of the Financial 
Regulation)  
1. The contracting authorities shall as soon as 
possible inform candidates and tenderers of decisions reached concerning the award of the contract or framework c ontract or admission to a 
dynamic purchasing system, including the grounds for any decision not to award a contract or framework contract, or set up a dynamic purchasing system, for which there has been competitive tendering or to recommence the procedure. 1. The contracting authorities shall as soon as 
possible inform candidates and tenderers of decisions reached concerning the award of the contract or framework c ontract or admission to a 
dynamic purchasing system, including the grounds for any decision not to award a contract or framework contract, or set up a dynamic purchasing system, for which there has been competitive tendering or to recommence the procedure.  
2. The contracting author ity shall, within not 
more than fifteen calendar days from the date on which a written request is received, communicate the information provided for in Article 100(2) of the Financial Regulation. 2. The contracting author ity shall, within not 
more than fifteen calendar days from the date on which a written request is received, communicate the information provided for in Article 100(2) of the Financial Regulation.  
3. In the case of contracts awarded by the 
Community institutions on their own account, with a value equal to or more than the thresholds referred to in Articl e 158 and which are not 
excluded from the scope of Directive 2004/18/EC, the contracting authority shall inform all unsuccessful tenderers or candidates, simultaneously and individually, by mail, fax or e-mail, that their application or tender has not been 3. In the case of contracts awarded by the 
Community
 Union  institutions on their own 
account, with a value equal to or more than the thresholds referred to in Article 158 and which are not excluded from th e scope of Directive 
2004/18/EC, the contracting authority shall inform 
all unsuccessful tende rers or candidates, 
simultaneously and individually, by mail, fax or e-mail, that their application or tender has not been  
 
EN  Error! Unknown document property name.  EN accepted at either of the following stages: ac cepted at either of the following stages: 
(a) shortly after decisions have been taken on 
the basis of exclusion a nd selection criteria and 
before the award decision, in procurement procedures organised in  two separate stages, (a) shortly after decisions have been taken on 
the basis of exclusion a nd selection criteria and 
before the award decision, in procurement procedures organised in  two separate stages,  
(b) as regards the award decisions and decisions 
to reject offers, as soon as possible after the award decision and within the following week at the latest. (b) as regards the award decisions and decisions 
to reject offers, as soon as possible after the award decision and within the following week at the latest.  
In each case, the contracting authority shall indicate 
the reasons why the tender or application has not been accepted and the available legal remedies. In each case, the contracting authority shall indicate 
the reasons why the tender or application has not been accepted and the available legal remedies.  
Unsuccessful tenderers or candidates may request 
additional information about  the reasons for their 
rejection in writing by mail, fax or email, and all tenderers who have put in an admissible tender may obtain information about the characteristics and 
relative merits of the tender accepted and the name of the successful tenderer, without prejudice to the 
second subparagraph of Article 100(2) of the Financial Regulation. The contracting authority shall reply within no more than fifteen calendar days from receipt of the request. Unsuccessful tenderers or candidates may request 
additional information about  the reasons for their 
rejection in writing by mail, fax or email, and all selected
 tenderers who have put in an admissible 
tender may obtain information about the 
characteristics and relative merits of the tender accepted and the name of the successful tenderer, without prejudice to the second subparagraph of 
Article 100(2) of  the Financial Regulation. The 
contracting authority sha ll reply within no more 
than fifteen calendar days from receipt of the request.  
 
EN  Error! Unknown document property name.  EN Article 149a 
Signature of the contract 
(Articles 100 and 105 of the Financial Regulation) Article 149a 
Signature of the contract 
(Articles 100 and 105 of the Financial Regulation)  
Implementation of a contract may not start before 
the contract is signed. Implementation of a contract may not start before 
the contract is signed.  
SECTION 4 
GUARANTEES AND CONTROL  SECTION 4 
GUARANTEES AND CONTROL   
Article 150 
Advance guarantee 
(Article 102 of the Financial Regulation) Article 150 
Advance guarantee 
(Article 102 of the Financial Regulation)  
1. Where suppliers, contractors or service 
providers are required to  lodge a guarantee in 
advance, it must be for an  amount and a period that 
are sufficient for it to be activated. 1. Where suppliers, contractors or service 
providers are required to  lodge a guarantee in 
advance, it must be for an  amount and a period that 
are sufficient for it to be activated.  
2. The guarantee shall be  supplied by a bank 
or an authorised financial institution. It may be replaced by a joint and se veral guarantee by a third 
party. 2. The guarantee shall be  supplied by a bank 
or an authorised financial institution. It may be replaced by a joint and se veral guarantee by a third 
party.  
The guarantee shall be denominated in euro. The guarantee shall be denominated in euro.  
It shall have the effect  of making the bank or 
financial institution or the third party stand as irrevocable collateral security, or first-call It shall have the effect  of making the bank or 
financial institution or the third party stand as irrevocable collateral security, or first-call  
 
EN  Error! Unknown document property name.  EN guarantor of the contractor's obligations. guarantor of the contractor's obligations. 
Article 151 
Performance guarantee 
(Article 102 of the Financial Regulation) Article 151 
Performance guarantee 
(Article 102 of the Financial Regulation)  
1. Subject to Article  250, a performance 
guarantee may be demanded by the authorising officer in accordance with the usual commercial terms for supply and service contracts and in accordance with the special specifications for works contracts. 1. Subject to Article 250, a
 A performance 
guarantee may be demanded by the authorising officer in accordance with the usual commercial terms for supply and service contracts and in accordance with the special specifications for works contracts. It is the nature of the special Part Two 
(where Article 250 is located) that it is lex specialis. This does not have to be said in 
Part One. 
This guarantee shall be mandatory above EUR 345000 for works contracts. This guarantee shall be mandatory above EUR 
345 000 for works contracts.  
2. A guarantee correspond ing to 10 % of the 
total value of the contract may be constituted by deductions from payments as and when they are made. 2. A guarantee correspond ing to 10 % of the 
total value of the contract may be constituted by deductions from payments as and when they are made.  
It may be replaced by an amount withheld from the 
final payment in order to constitute a guarantee until final acceptance of the services, supplies or works. It may be replaced by an amount withheld from the 
final payment in order to constitute a guarantee until final acceptance of the services, supplies or works.  
3. Guarantees shall be released in accordance 
with the terms of the contract, save where the contract has not been performed or has been performed incorrectly or completion is late. In such cases a proportion of the guarantee shall be retained 3. Guarantees shall be released in accordance 
with the terms of the contract, save where the contract has not been performed or has been performed incorrectly or completion is late. In such cases a proportion of the guarantee shall be retained  
 
EN  Error! Unknown document property name.  EN in proportion to the seriousness of the damage 
suffered. in proportion to the seriousness of the damage 
suffered. 
Article 152 
Guarantee for pre-financing 
(Article 102 of the Financial Regulation) Article 152 
Guarantee for pre-financing 
(Article 102 of the Financial Regulation)  
A guarantee shall be required in return for the 
payment of pre-financing exceeding EUR 150000 or in the case referred to in Article 135(6) second subparagraph. 1. The authorising officer shall assess the risks 
associated with pre-financing payment.  
Where the risk is assesse d as above tolerable, 
the authorising officer shall take mitigating 
actions to reduce the ri sk. Those mitigation 
actions may take the form of refusal of pre-
financing, payment of reduced amount of pre-
financing or a request for financial guarantee.  
2. A guarantee shall be required in return for the 
payment of pre-financing exceeding EUR 150 000 
or in the case referred to  in second paragraph of  
Article 135(6), second sub paragraph  or when the 
authorising officer decides to request a 
financial guarantee pursuant to paragraph 1.  Proposed to delete the obligatory guarantee 
on pre-financing above EUR 150,000 and instead to require the authorising officer to mitigate the risk to pre-financing by 1. no pre-financing, 2. lower amount of pre-financing or 3. guarant ee on pre-financing. 
Special provision of Article 250(4) IR would be deleted.  Where the authorising officer does not assess the financial capacity of the contractor in accordan ce with Article 135(6) 
and pays a pre-financing, he/she shall request a guarantee. 
However, where the contra ctor is a public body, the 
authorising officer resp onsible may, depending on 
his risk assessment, waive that obligation. However, where the contractor is a public body, the 
authorising officer respons ible may, depending on 
his risk assessment, waive that obligation.   
The guarantee shall be released as and when the 
pre-financing is deducted from interim payments or payments of balances to the contractor in accordance with the terms of the contract. The guarantee shall 
may be released as and when 
the pre-financing is deducted from interim payments or payments of balances to the contractor in accordance with the terms of the contract.  
 
EN  Error! Unknown document property name.  EN Article 153 
Suspension in the event of errors or irregularities 
(Article 103 of the Financial Regulation) Article 153 
Suspension in the event of errors or irregularities 
(Article 103 of the Financial Regulation)  
1. Contracts shall be suspended under Article 
103 of the Financial Regulat ion in order to verify 
whether presumed subs tantial errors or 
irregularities or fraud have actually occurred. If 
they are not confirmed, performance of the contract shall resume as soon as possible. 1. Contracts shall 
may be suspended under 
Article 103 of the Financia l Regulation in order to 
verify whether presumed substantial errors or irregularities or fraud have actually occurred. If 
they are not confirmed, perf ormance of the contract 
shall resume as soon as possible.  
2. A substantial error or irregularity shall be 
any infringement of a pr ovision of a contract or 
regulation resulting from an act or an omission which causes or might cause a loss to the Community budget. 2. A substantial error or irregularity shall be 
any infringement of a pr ovision of a contract or 
regulation resulting from an act or an omission which causes or might cause a loss to the Community
 Union  budget.  
CHAPTER  2 
PROVISIONS APPLICABLE TO CONTRACTS 
AWARDED BY THE COMMUNITY 
INSTITUTIONS ON THEIR OWN ACCOUNT  CHAPTER  2 
PROVISIONS APPLICABLE TO CONTRACTS 
AWARDED BY THE COMMUNITY  UNION  
INSTITUTIONS ON THEIR OWN ACCOUNT   
Article 154 
Identification of the app ropriate level for the 
calculation of thresholds 
(Articles 104 and 105 of the Financial Regulation) Article 154 
Identification of the app ropriate level for the 
calculation of thresholds 
(Articles 104 and 105 of the Financial Regulation)  
It shall be for each authorising officer by delegation 
or subdelegation within each institution to assess It shall be for each authorising officer by delegation 
or subdelegation within each institution to assess  
 
EN  Error! Unknown document property name.  EN whether the thresholds la id down in Article 105 of 
the Financial Regulation have been reached. whether the thresholds la id down in Article 105 of 
the Financial Regulation have been reached. 
Article 155 
Separate contracts and contracts with lots 
(Article 91 and 105 of th e Financial Regulation) Article 155 
Separate contracts and contracts with lots 
(Article 91 and 105 of th e Financial Regulation)  
1. The estimated value of a contract may not 
be determined with a view to evading the requirements laid down in this Regulation, nor may a contract be split up for that purpose. 1. The estimated value of a contract may not 
be determined with a view to evading the requirements laid down in this Regulation, nor may a contract be split up for that purpose.  
Whenever appropriate, technically feasible, and 
cost efficient, contracts with a value equal to or 
greater than the thresholds  laid down in Article 158 
shall be awarded at the sa me time in the form of 
separate lots. Whenever appropriate, technically feasible, and 
cost efficient, contracts with a value equal to or 
greater than the thresholds  laid down in Article 158 
shall be awarded at the sa me time in the form of 
separate lots.  
2. Where the subject of a supply, service or 
works contract is subdivided into several lots, each one the subject of an indi vidual contract, the value 
of each lot shall be taken into account for the overall evaluation of the applicable threshold. 2. Where the subject of a supply, service or 
works contract is subdivide d into several lots, each 
one the subject of an individual contract, the total
 
value of all the  each  lots shall be taken into account 
for the overall evaluation of the applicable threshold. Simplification to take the total value of the 
lots into account ev en though it becomes 
stricter than the Directive 2004/18. 
Where the overall value of  lots is equal to or 
exceeds the thresholds laid down in Article 158, Article 90(1) and Article 91(1) and (2) of the Financial Regulation shall apply to each of the lots, save those with an estimated value of less than EUR 80000 in the case of service or supply 
contracts, or less than one million euro in the case Where the overall value of  lots is equal to or 
exceeds the th resholds laid down in Article 158, 
Article 90(1) and Article 91(1) and (2) of the 
Financial Regulation shall apply to each of the lots, 
save those with an estimated value of less than 
EUR 80000 in the case of service or supply 
contracts, or less than one m illion euro in the case  
 
EN  Error! Unknown document property name.  EN of works contracts, provided that the aggregate 
amount of those lots does  not exceed 20 % of the 
aggregate value of all the lots making up the contract in question. of works contracts, provided that the aggregate 
amount of those lots does not exceed 20  % of the 
aggregate value of all the lots making up the 
contract in question.  
Where the total value of all the lots is equal to or 
exceeds the thresholds laid down in Article 158, 
Article 90(1) and Article 91(1) and (2) of the 
Financial Regulation shall apply to each of the 
lots. 
3. Where the planned purchase of standard 
supplies may give rise to simultaneous contracts in separate lots, the estimated value of all those lots shall be taken as the basis for determining the applicable threshold. 3.
 Where the planned purchase of standard 
supplies may give rise to simultaneous contracts in 
separate lots, the estimated value of all those lots 
shall be t aken as the basis for determining the 
applicable threshold.   
4. Where a contract is to be awarded in the 
form of separate lots, tenders shall be evaluated separately for each lot. If several lots are awarded to the same tenderer, a single contract covering those lots may be signed. 4. Where a contract is to be awarded in the 
form of separate lots, tenders shall be evaluated separately for each lot. If several lots are awarded to the same tenderer, a single contract covering those lots may be signed.  
Article 156 
Arrangements for estimati ng the value of certain 
contracts 
(Article 105 of the Financial Regulation) Article 156 
Arrangements for estimati ng the value of certain 
contracts 
(Article 105 of the Financial Regulation)  
1. For the purposes of calculating the 
estimated amount of a contract, the contracting authority shall include the contractors total 1. For the purposes of calculating the 
estimated amount of a contract, the contracting authority shall include the contractors total  
 
EN  Error! Unknown document property name.  EN estimated remuneration. estimated remuneration. 
Where a contract provides for options or possible 
renewal, the basis for calculation shall be the maximum amount authorise d, including the use of 
option clauses and renewal. Where a contract provides for options or possible 
renewal, the basis for calculation shall be the maximum amount authorise d, including the use of 
option clauses and renewal.  
This estimate shall be made when the contract 
notice is sent or, where there is no such publicity, when the contracting authority initiates the award procedure. This estimate shall be made when the contract 
notice is sent or, where there is no such publicity, when the contracting authority initiates the award procedure.  
1a. For framework contracts and dynamic 
purchasing systems the value to be taken into account shall be the maximum value of all the contracts envisaged during the total lifetime of the 
framework contract or dynamic purchasing system. 1a. For framework contracts and dynamic 
purchasing systems the value to be taken into account shall be the maximum value of all the contracts envisaged during the total lifetime of the 
framework contract or dynamic purchasing system.  
2. For service contracts, account shall be taken 
of: 2. For service contracts, account shall be taken 
of:  
(a) in the case of insurance services, the 
premium payable and other forms of remuneration; (a) in the case of insurance services, the 
premium payable and other forms of remuneration;  
(b) in the case of banki ng or financial services, 
the fees, commissions, interest and other types of remuneration; (b) in the case of banki ng or financial services, 
the fees, commissions, interest and other types of remuneration;  
(c) in the case of design contracts, the fees, 
commissions payable and other forms of remuneration. (c) in the case of design contracts, the fees, 
commissions payable and other forms of remuneration.  
 
EN  Error! Unknown document property name.  EN 3. In the case of service contracts which do not 
specify a total price or of supply contracts for leasing, rental or hire purchase of products, the 
value to be taken as th e basis for calculating the 
estimated value shall be: 3. In the case of service contracts which do not 
specify a total price or of supply contracts for leasing, rental or hire purchase of products, the 
value to be taken as th e basis for calculating the 
estimated value shall be:  
(a) in the case of fixed-term contracts: (a ) in the case of fixed-term contracts:  
(i) where their term is forty-eight months or 
less in the case of services or twelve months or less in the case of supplies, the total contract value for their duration; (i) where their term is forty-eight months or 
less in the case of services or twelve months or less in the case of supplies, the total contract value for their duration;  
(ii) where their term is more than twelve 
months in the case of supplies, the total value including the estima ted residual value; (ii) where their term is more than twelve 
months in the case of supplies, the total value including the estima ted residual value;  
(b) in the case of contracts for an indefinite 
period or, in the case of services, for a period 
exceeding forty-eight mont hs, the monthly value 
multiplied by forty-eight. (b) in the case of contracts for an indefinite 
period or, in the case of services, for a period 
exceeding forty-eight m onths, the monthly value 
multiplied by forty-eight.  
4. In the case of service or supply contracts 
which are awarded regularl y or are to be renewed 
within a given time, the contract value shall be established on the basis of: 4. In the case of service or supply contracts 
which are awarded regularl y or are to be renewed 
within a given time, the contract value shall be established on the basis of:  
(a) either the actual aggregate cost of similar 
contracts for the same categories of services or products awarded over the previous financial year 
or twelve months, adjust ed, where possible, for 
anticipated changes in qua ntity or value over the (a) either the actual aggregate cost of similar 
contracts for the same ca
tegories  types  of services 
or products awarded over the previous financial year or twelve months, adjusted, where possible, 
for anticipated changes in quantity or value over the Use of the word “category” suggests the 
category in the CPV meaning which is much more restrictive then current  
 
EN  Error! Unknown document property name.  EN twelve months following the initi al contract; twelve months following the initial contract;  
(b) or the estimated aggregate cost of 
successive contracts during the twelve months following the first service performed or first delivery or during the term  of the contract, where 
this is greater than twelve months. (b) or the estimated aggregate cost of 
successive contracts during the twelve months following the first service performed or first delivery or during the term  of the contract, where 
this is greater than twelve months.  
5. In the case of works contracts, account shall 
be taken not only of the va lue of the works but also 
of the estimated total value of the supplies needed to carry out the works and made available to the contractor by the contracting authority. 5. In the case of works contracts, account shall 
be taken not only of the va lue of the works but also 
of the estimated total value of the supplies needed to carry out the works and made available to the contractor by the contracting authority.  
Article 157 
Thresholds for pre-information notices 
(Article 105 of the Financial Regulation) Article 157  
Thresholds for pre -information notices  
(Article 105 of the Financial Regulation)   
The thresholds referred to in Article 118 for 
publication of a pre-info rmation notice shall be: The thresholds referred to in Article 118 for 
publication of a pre -information notice shall be:  Pre-information notice shall no longer be 
compulsory 
(a) EUR 750,000 for the supply and service contracts listed in Annex IIA to Directive 2004/18/EC; (a)
 EUR 750,000 for the supply and service 
contracts listed in Annex IIA to Directive 
2004/18/EC;   
(b) EUR 5 278 000 for works contracts. (b)  EUR 5 278 000 for works contracts.   
 
EN  Error! Unknown document property name.  EN Article 158 
Thresholds for application of the procedures under 
Directive 2004/18/EC 
(Article 105 of the Financial Regulation) Article 158 
Thresholds for application of the procedures under 
Directive 2004/18/EC 
(Article 105 of the Financial Regulation)  
1. The thresholds referred to in Article 105 of 
the Financial Regulation shall be: 1. The thresholds referred to in Article 105 of 
the Financial Regulation shall be:  
(a) EUR 137 000 for the supply and service 
contracts listed in Annex IIA to Directive 2004/18/EC, with the exceptio n of the research and 
development contracts listed  in category 8 of that 
Annex; (a) EUR 137
 125 000 for the supply and service 
contracts listed in Annex IIA to Directive 2004/18/EC, with the exceptio n of the research and 
development contracts listed  in category 8 of that 
Annex;  
(b) EUR 211 000 for the service contracts listed 
in Annex IIB to Directive 2004/18/EC and for the research and development service contracts listed in category 8 of Annex IIA to Directive 2004/18/EC; (b) EUR 211 
193 000 for the service contracts 
listed in Annex IIB to Directive 2004/18/EC and for the research and development service contracts listed in category 8 of Annex IIA to Directive 2004/18/EC;  
(c) EUR 5 278 000 for works contracts. (c) EUR 5 278  4 845  000 for works contracts.  
2. The time limits referred to in Article 105 of 
the Financial Regulation shall be those specified in Articles 140, 141 and 142. 2. The time limits referred to in Article 105 of 
the Financial Regulation shall be those specified in Articles 140, 141 and 142.  
 
EN  Error! Unknown document property name.  EN Article 158a 
Standstill period before signature of the contract 
(Article 105 of the Financial Regulation) Article 158a 
Standstill period before signature of the contract 
(Article 105 of the Financial Regulation)  
1. The contracting authority shall not sign the 
contract or framewor k contract, covered by 
Directive 2004/18/EC, with the successful tenderer 
until 14 calendar days have elapsed. 1. The contracting authority shall not sign the 
contract or framewor k contract, covered by 
Directive 2004/18/EC, with the successful tenderer 
until 14 calendar days have elapsed.  
That period shall run from either of the following 
dates: That period shall run from either of the following 
dates:  
(a) the day after the simultaneous dispatch of 
the award decisions and decisions to reject, (a) the day after the simultaneous dispatch of 
the notifications to successful and unsuccessful 
tenderers  award decisions and decisions to reject,   
(b) where the contract or framework contract is 
awarded pursuant to a nego tiated procedure without 
prior publication of a contra ct notice, the day after 
the contract award notice referred to in Article 118 has been published in the Official Journal of the 
European Union . (b) where the contract or framework contract is 
awarded pursuant to a nego tiated procedure without 
prior publication of a contra ct notice, the day after 
the contract award notice referred to in Article 118 has been published in the Official Journal of the 
European Union . 
Where a fax or electronic means is used for the 
dispatch according to point (a), the standstill 
period shall be 10 calendar days.  Shortest deadline allowed by the Directive 
2004/18 
 
If necessary, the contracting authority may suspend 
the signing of the c ontract for additional 
examination if this is justified by the requests or comments made by unsuccessful or aggrieved If necessary, the contracting authority may suspend 
the signing of the c ontract for additional 
examination if this is justified by the requests or comments made by unsuccessful or aggrieved  
 
EN  Error! Unknown document property name.  EN tenderers or candidates or by any other relevant 
information received. The requests, comments or information must be received during the period set in the first subparagraph. In the case of suspension all the candidates or tende rers shall be informed 
within three working days following the suspension decision. tenderers or candidates or by any other relevant 
information received. The requests, comments or information must be received during the period set in the first subparagraph. In the case of suspension all the candidates or tende rers shall be informed 
within three working days following the suspension decision. 
Except in the cases provided  for in paragraph 2, any 
contract signed before the expiry of the period set in the first subparagraph shall be null and void. Except in the cases provided  for in paragraph 2, any 
contract signed before the expiry of the period set in the first subparagraph shall be null and void.  
Where the contract or fr amework contract cannot 
be awarded to the succe ssful envisaged tenderer, 
the contracting authority may award it to the following best tenderer. Where the contract or fr amework contract cannot 
be awarded to the succe ssful envisaged tenderer, 
the contracting authority may award it to the following best tenderer.  
2. The period set in the first subparagraph of 
paragraph 1 shall not appl y in the following cases: 2. The period set in the first subparagraph of 
paragraph 1 shall not apply in the following cases:  
(a) open procedures where only one tender has 
been submitted; (a) open , restricted or negotiated  procedures 
after prior publication of a contract notice where 
only one tender has been submitted; Proposed formulation waives the obligation 
of respecting standstill period in regard to 
economic operators wh o were invited to 
submit a tender but did not submit it. 
Remedy directive (as amended by Directive 2007/66/EC) requires to respect standstill period in regard to ca ndidates and tenderers 
concerned (art. 2b(b) in relation with art. 2(a)2). In this resp ect economic operators 
who did not submit offers within the 
deadline cannot be regarded as tenderers 
 
EN  Error! Unknown document property name.  EN (b) restricted or negotiated procedures after 
prior publication of a c ontract notice where the 
tenderer to whom the contract is to be awarded was the only one who satisfi es the exclusion and 
selection criteria, provided that, in accordance with point (a) of the first subp aragraph of Article 149(3), 
the other candidates or tenderers have been informed of the grounds of their exclusion or rejection shortly after the relevant decisions have 
been taken on the basis of the exclusion and 
selection criteria; (b) restricted or negotiated procedures after 
prior publication of a c ontract notice where the 
tenderer to whom the contract is to be awarded was the only one who satisfi es the exclusion and 
selection criteria, provided that, in accordance with point (a) of the first subp aragraph of Article 149(3), 
the other candidates or tenderers have been informed of the grounds of their exclusion or rejection shortly after the relevant decisions have 
been taken on the basis of the exclusion and 
selection criteria;  
(c) specific contracts based on a framework 
contract and by applying th e terms set out in such a 
framework contract, without reopening the competition. (c) specific contracts based on a framework 
contract; and by applyin
g the terms set out in such a 
framework contract, without reopening the 
competition.  The exemption from standstill period should 
apply to all framework contracts. 
(d) extreme urgency referred to in Article 126(1)(c). (d) extreme urgency referred to in Art
icle 
126(1)(c)  negotiated procedures referred to in 
Articles 126(1)(c) and 126(1)(g)(iii) . Insertion of the obvious exemption for 
goods quoted on markets. 
Article 159 
Evidence of access to contracts 
(Articles 106 and 107 of the Financial Regulation) Article 159 
Evidence of access to contracts 
(Articles 106 and 107 of the Financial Regulation)  
The specifications shall require tenderers to 
indicate in which State th ey have their headquarters 
or domicile and to presen t the supporting evidence 
normally acceptable under their own law. The specifications shall require tenderers to 
indicate in which State th ey have their headquarters 
or domicile and to present the supporting evidence normally acceptable under their own law. Flexibility: enabling requesting registration 
documents only from the winner (e.g. in case of law value contract) 
 
 
EN  Error! Unknown document property name.  EN TITLE  VI 
GRANTS TITLE  VI 
GRANTS  
CHAPTER  1 
SCOPE  CHAPTER  1 
SCOPE   
Article 160 
Scope 
(Article 108 of the Financial Regulation) Article 160  
Scope  
(Article 108 of the Financial Re gulation)   
1. The procedure for the award of grants and 
the conclusion of agreements by the Commission with the bodies referred to in Article 54 of the Financial Regulation, in resp ect of the co-financing 
of their administrative expenditure and for the purposes of making av ailable the operating 
appropriations which they are delegated to manage, and with the beneficiaries of financing agreements as referred to in Article 166 of that Regulation are 
not subject to the provisions of this Title. 1.
 The procedur e for the award of grants and 
the conclusion of agreements by the Commission 
with the bodies referred to in Article 54 of the 
Financial Regulation, in  respect of the co -financing 
of their administrative expenditure and for the 
purposes of making available the operating 
appropriations which they are delegated to manage, 
and with the beneficiaries of financing agreements 
as referred to in Article 166 of that Regulation are 
not subject to the provisions of this Title.  Appropriate provisions in Article 108(2) FR 
exclude expenditure implemented under indirect management from this Title. 
Article 160a 
Subscriptions 
(Article 108 of the Financial Regulation) Article 160a 
Subscriptions 
(Article 108 of the Financial Regulation)  
The subscriptions referred to  in point (d) of Article 
108(2) of the Financial Regulation shall be sums paid to bodies of which the Community is member, The subscriptions referred to  in point (d) of Article 
108(2) of the Financial Regulation shall be sums paid to bodies of which the Community
 Union  is  
 
EN  Error! Unknown document property name.  EN in accordance with the budge tary decisions and the 
conditions of payment established by the body concerned. member, in accordance with the budgetary 
decisions and the conditions of payment established by the body concerned. 
Article 160b 
Participations 
(Article 108 of the Financial Regulation) Article 160b
 
Participations  
(Article 108 of the Financial Regulation)   
For the purposes of Article 108(2) and (3) of the 
Financial Regulation, th e following definitions 
shall apply: For the purposes of Artic le 108(2) and (3) of the 
Financial Regulation, th e following definitions 
shall apply:  This list has no added value since financial 
instruments are dealt in a separate Title from grants and are covered by a generic 
definition. 
(a) "equity participation” means an ownership 
position in an organisation or venture taken through an investment, in which returns on the investment are dependent on the profitability of the organisation or venture; (a)
 "equity participation” means a n ownership 
position in an organisa tion or venture taken through 
an investment, in which returns on the investment 
are dependent on the profitability of the 
organisation or venture;   
(b) “share-holding” means an equity 
participation in the fo rm of shares in an 
organisation or venture; (b) “share -holding” means an equity 
participation in the fo rm of shares in an 
organisation or venture;   
(c) “equity investment” means the provision of 
capital to a firm by an inve stor in return for partial 
ownership of that firm wh ere, in addition, this 
investor may assume some management control of the firm and may share in future profits; (c)
 “equity investment” means  the provision of 
capital to a firm by an inve stor in return for partial 
ownership of that firm wh ere, in addition, this 
investor may assume so me management control of 
the firm and may share in future profits;   
(d) “quasi-equity financing” means a type of 
financing that involves a mix of equity and debt, 
where the equity allows investors to achieve a high rate of return upon the success of the company or (d)
 “quasi -equity financing”  means a type of 
financing that involves a mix of equity and debt, 
where the equity allows investors to achieve a high 
rate o f return upon the success of the company or  
 
EN  Error! Unknown document property name.  EN where the debt component entails a premium price 
contributing to the return of the investor; where the debt component entails a premium price 
contributing to the return of the investor;  
(e) “risk-bearing instrument” means a financial 
instrument which guarantees the total or partial coverage of a defined risk, if possible in exchange for an agreed remuneration. (e)
 “risk-bearing instrument” means a financial 
instrument which guarantees the total or partial 
coverage of a defined risk, if possible in exchange 
for an agreed remuneration.   
Article 160c 
Specific rules 
(Article 108(3) of the Financial Regulation) Article 160c  
Specific rules  
(Article 108(3) of the Financial Regulation)   
1. Where grants as referred to in Article 
108(3) of the Financial Regulation are awarded by 
the Commission under direct centralised management, they shall be subject to the provisions of this Title, with the exception of the following provisions: 1.
 Where contributions  grants as referred to in 
Article 108(3) of the Fi nancial Regulation are 
awarded by the Commission under indirec t 
centralised management, they  shall be subject to the 
provisions of this Title, with the exception of the 
following provisions:  Financial instrument ar e out of the scope of 
the grant Title. Theref ore these derogations 
to grant principles are obsolete. 
(a) the no-profit rule as referred to in Article 
165 of this Regulation; (a) the no -profit rule as referred to in Article 
165 of this Regulation;   
(b) the co-financing requi rement as referred to 
in Article 172 of this Regulation; (b) the co -financing requir ement as referred to 
in Article  172 of this Regulation;   
(c) for actions where the objective is to 
reinforce the financial capaci ty of a beneficiary or 
to generate an income, the assessment of the financial viability of the applicant as referred to in Article 173(4) of this Regulation; (c)
 for actions where the objective is to 
reinforce the financial capaci ty of a beneficiary or 
to generate an income, the assessment of the 
financial viability of the applicant as referred to in 
Article 173(4) of this Regula tion;  
 
EN  Error! Unknown document property name.  EN (d) the requirement for an advance guarantee as 
referred to in Article 182 of this Regulation. (d) the requirement for an advance guarantee as 
referred to in Article 182 of this Regulation.   
The first subparagraph app lies without prejudice to 
the accounting treatment of the grants concerned, 
which shall be determined by the accounting officer in accordance with international accounting standards. The first subparagraph app lies without prejudice to 
the accounting treatment of the contributions  grant s 
concerned, which shall be determined by the 
accounting officer in accorda nce with international 
accounting standards.   
2. In all cases where a financial contribution is 
made, the authorising officer responsible shall 
ensure that appropriate arrangements have been 
made with the recipient of  the contribution defining 
the modalities for payment and control. 2. In all cases where a financial contribution is 
made, the authorising officer responsible shall 
ensure that appropriate arrangements have been 
made wi th the recipient of the contribution defining 
the modalities for payment and control.   
Article 160d 
Prizes 
(Article 109(3)(b) of the Financial Regulation) Article 160d  
Prizes  
(Article 120a 09(3)(b) of  the Financial Regulation )  
Moved under new Title VIa dedicated to 
prizes  
 
For the purposes of point (b) of Article 109(3) of the Financial Regulation, prizes shall be the reward for an entry in a contest. For the purposes of po int (b) of Article 10
8a(2) 
9(3) of the Financial Regulat ion, prizes shall be the 
reward for an entry in a contest.   
They shall be awarded by a panel of judges who are 
free to decide whether or not to award prizes depending on their appraisal of the quality of the entries by reference to the rules of the contest. They shall be awarded b
y a panel of judges who are 
free to decide whether or not to award prizes 
depending on their appraisal of the quality of the 
entries by reference to the rules of the contest.   
The amount of the prize sh all not be linked to the 
costs incurred by the recipient. The amount of the prize is shall not be linked to the 
costs incurred by the recipient.   
The rules of the contest shall lay down the award 
conditions and criteria and the amount of the prize. The rules of the contest shall lay down the award 
condition s and criteria and the amount of the prize.   
 
EN  Error! Unknown document property name.  EN Appropriate written arrangement shall be made 
with the recipient of the prize defining the 
modalities for payment .  
Article 160e 
Agreement and decision for grants 
(Article 108(1) of the Financial Regulation) Article 160e 
Agreement and decision for grants 
(Article 108(1) of the Financial Regulation) The choice of the instrument eg. agreement 
or decision remains under the appreciation of the AO. The same programme can use both as far as beneficiar ies are not placed in 
the same conditions (EU/non EU recipients).  
1. For each Community programme or action, 
the annual work programme shall determine whether grants shall be covered by a decision or by a written agreement. 1. 
For each Community programme or action, 
the annual work programme shall determine 
whether Ggrants shall be covered by a decision or 
by a written agreement.  
2. To determine the instrument to be used, the 
following elements shall be taken into account: 2. To determine the instrument to be used, the 
following elements shall be taken into account:  
(a) equal treatment and non-discrimination 
between beneficiaries, in particular on the basis of 
nationality or geographical location; (a) location of the beneficiary, within or 
outside the European Union;  equal treatment and 
non-discrimination between beneficiaries, in 
particular on the basi s of nationality or  the 
geographical location;   
(b) coherence of that instrument with other 
instruments used within the same Community programme or action; (b)
 coherenc e of that instrument with other 
instruments used within the same Community 
programme or action;   
(c) complexity and standardisation of the 
content of the actions or  work programmes funded. (cb) complexity and standardisation of the 
content of the actions or  work programmes funded.  
3. In the case of programmes managed by 
several authorising officers, the instrument to be 2 3. In the case of programmes managed by 
several authorising officers, the instrument to be  
 
EN  Error! Unknown document property name.  EN used shall be determined in consultation between 
those authorising officers. used shall be determined in consultation between 
those authorising officers. 
Article 160f 
Expenditure on the members of the institutions 
(Article 108(2)(a) of the Financial Regulation ) Article 160f 
Expenditure on the members of the institutions 
(Article 108(2)(a) of the Financial Regulation )  
Expenditure on the members of the institutions as 
referred to in Article 10 8(2)(a) of the Financial 
Regulation shall include contributions to associations of current and former members of the 
European Parliament. These contributions shall be 
implemented in accordance with the internal administrative rules of the European Parliament. Expenditure on the members of the institutions as 
referred to in Article 108( 2)(a) of the Financial 
Regulation shall include  contributions to 
associations of current and former members of the 
European Parliament. These contributions shall be 
implemented in accordance with the internal administrative rules of the European Parliament.  
Article 161 
Actions which may receive grants 
(Article 108 of the Financial Regulation) Article 161 
Actions which may receive grants 
(Article 108 of the Financial Regulation)  
An action which may receive a grant within the 
meaning of Article 108 of the Financial Regulation 
must be clearly identified. An action which may receive a grant within the 
meaning of Article 108 of the Financial Regulation 
must be clearly identified.  
No action may be split for the purpose of evading 
the financing rules laid down in this Regulation. No action may be split for the purpose of evading 
the financing rules laid down in this Regulation.  
  
Article 161b
 
Beneficiaries  
(Article 108 of the Financial Regulation)  
  
 For the purposes of Title VI, the term 
"beneficiary" shall mean one or several entities 
to which the grant is awarded.  The first paragraph confirms the current 
interpretation that a grant beneficiary may refer to one or several entities. 
 
EN  Error! Unknown document property name.  EN  
Where the grant is awarded to several 
beneficiaries, the grant agreement shall identify 
these beneficiaries and specify the rights and 
obligations between them and the Commission.  
Any change regarding the beneficiaries shall be 
subject to the approval  of the Authorising 
officer responsible.  
 
Where the action is implemented by a network 
of legal entities repres ented by a coordinating 
legal entity, the grant ag reement shall be signed 
by the coordinating legal entity on behalf of its 
affiliated members who shall be regarded as co-
beneficiaries. The coordinating legal entity shall 
assume the financial responsibility towards the 
Commission for the implementation of the whole 
action.  
  
The second paragraph reserves the contractual relationships  (and in particular 
the issue of the joint liability of the beneficiaries) to be specified in the grant agreement.  The third paragraph is meant to allow, explicitly, the change or addition of 
beneficiaries subject to  the approval of the 
AOSD.  The last paragraph is to simplify the management of grants given to coordinating legal entities (generally at European level) but in which the action is carried out by their members at national level.   Currently such scheme is only possible by obliging both the coordi nating entity and all 
the members to sign the agreement. Otherwise it would fall into cascading grants of article 120 FR  (as the coordinating 
entity distributes to national entities, who in their turn implement the action in favour of third parties.)  With this new provision, the Commission will only deal with the coordinating entity, without having to sign  with all the other 
members. This will simplify the grant procedure.  
 
EN  Error! Unknown document property name.  EN  
Article 162 
Bodies pursuing an aim of general European 
interest 
(Article 108 of the Financial Regulation) Article 162 
Bodies pursuing an aim of general European 
interest 
(Article 108 of the Financial Regulation)  
A body pursuing an aim of general European 
interest is: A body pursuing an aim of general European 
interest is:  
(a) an European body involved in education, 
training, information, innova tion or research and 
study in European policies, any activities 
contributing to the promo tion or citizenship or 
human rights, or an European standards body; (a) an  European  body involved in education, 
training, information, innova tion or research and 
study in European policies, any activities 
contributing to the promo tion or citizenship or 
human rights, or an European standards body; Non-European bodies realising the 
objectives of the EU are qualified for an 
operating subsidy. 
If an AO wants to focus on European bodies 
for justified grounds, he shall use the 
eligibility criteria. 
(b) an European network representing non-
profit bodies active in the Member States or in the candidate countries and pr omoting principles and 
policies consistent with the objectives of the Treaties. (b) an
 European  network legal entity  
representing non-profit  bodies active in the 
Member States or in the candidate countries and  
promoting principles and policies consistent with 
the objectives of the Treaties. The term network is unclear: the basic 
requirement is a legal entity to which the operating grant may be awarded.  
Article 163 
Partnerships 
(Article 108 of the Financial Regulation) Article 163 
Partnerships 
(Article 108 of the Financial Regulation)  
1. Specific grants may form part of framework 
partnership. 1. Specific grants for actions and operating 
grants  may form part of framework partnership. Make clear that partne rships are opened for 
subsequent operating grants. However the decreasing rule over a period of 4 years 
shall be applied (see  Article113 FR as 
 
EN  Error! Unknown document property name.  EN revised). 
2. A framework partnership may be 
established as a long-term cooperation mechanism between the Commission a nd the beneficiaries of 
grants. It may take the form of an agreement or a decision. 2. A framework partnership may be 
established as a long-term cooperation mechanism between the Commission a nd the beneficiaries of 
grants. It may take the form of an agreement or a decision.  
The framework partnership agreement or decision 
shall specify the common objectives, the nature of actions planned on a one-off basis or as part of an 
approved annual work programme, the procedure 
for awarding specific grants , in compliance with the 
principles and procedural ru les in this Title, and the 
general rights and obligations of each party under the specific agreements or decisions. The framework partnership agreement or decision 
shall specify the common objectives, the nature of actions planned on a one-off basis or as part of an 
approved annual work programme, the procedure 
for awarding specific grants, in compliance with the principles and procedural ru les in this Title, and the 
general rights and obligations of each party under the specific agreements or decisions.  
The duration of the partnership may not exceed 
four years, save in exceptional cases, justified in particular by the subject of the framework partnership. The duration of the partnership may not exceed 
four years, save in exceptional cases, justified in particular by the subject of the framework partnership.  
Authorising officers may not make undue use of 
framework partnership agr eements or decisions or 
use them in such a way that the purpose or effect is contrary to the principles of transparency or equal 
treatment of applicants. Authorising officers may not make undue use of 
framework partnership agr eements or decisions or 
use them in such a way that the purpose or effect is contrary to the principles of transparency or equal 
treatment of applicants.  
3. Framework partnership agreements or 
decisions shall be treated as grants for the purposes of the award procedure. They  shall be subject to the 
ex ante  publication procedures referred to in Article 3. Framework partnership agreements or 
decisions shall be treated as grants with regard to 
programming, publication and award . for the 
purposes of the award procedure . They shall be Precision 
 
EN  Error! Unknown document property name.  EN 167. subject to the ex ante  publication procedures 
referred to in Article 167.  
4. Specific grants based on framework 
partnership agreements or decisions shall be awarded in accordance with the procedures laid down in those agreements  or decisions, and in 
compliance with this Title. 4. Specific grants based on framework 
partnership agreements or decisions shall be awarded in accordance with the procedures laid down in those agreements  or decisions, and in 
compliance with this Title.  
They shall be subject to the ex post publication 
procedures laid down in Article 169. They shall be subject to the ex post publication 
procedures laid down in Article 169.  
Article 164 
Content of grant agreements 
(Article 108 of the Financial Regulation) Article 164 
Content of grant agreements 
(Article 108 of the Financial Regulation)  
1. The grant agreement sh all at least  lay down 
the following: 1. The grant agreement sh all at least  lay down 
the following:  
(a) the subject; (a) the subject;  
(b) the beneficiary; (b) the beneficiary ; Covers also "beneficiaries" : s ee Article 
161b IR  
(c) the duration, namely: (c) the duration, namely:  (i) the date of its entry into force and its 
termination; (i) the date of its entry into force and its 
termination ; Recommendation of the legal service: the 
date of termination is  source of confusion 
with the end of the action and of undue constraints (riders). The contract is terminated when its object is fulfilled or earlier for due reasons. This avoids multiple 
 
EN  Error! Unknown document property name.  EN riders without added value when the 
implementation is late. 
(ii) the starting date and the duration of the 
action or financial year being funded; (ii) the starting date and the duration of the 
action or financial year being funded;  
 
(d) the total estimated cost of the action and the 
Community funding provide d for, as an overall 
ceiling expressed as an absolute value, supplemented as appropria te by an indication of: (d) the total estimated cost of the action,  and 
the maximum amount of Union
 Community  
funding expressed in Euro provided for ,as an 
overall ceiling  expressed as an absolute value  
supplemented,  as appropriate, by : Article simplified to avoid duplication with 
FR. 
(i) the maximum rate of funding of the costs of 
the action or approved work programme in the case referred to in point (a) of Article 108a(1) of the 
Financial Regulation; (i) where the grant takes the form of a 
reimbursement of eligible costs , in the case 
referred to in point (a) of Article 108a(1) of the 
Financial Regulation their estimated amount and 
the maximum financing rate maximum rate of 
funding of those costs of the action or  ; The rate may be 100% if co-financing is 
made of ineligible costs (direct taxes are excluded in some basic acts) or of in kind contributions. The rate of EC funding is fixed on the eligible costs within the limit authorised by the relevant basic act. 
(ii) the lump-sum or fl at-rate financing referred 
to in points (b) and (c) of Article 108a(1) of the Financial Regulation; (ii) in the cases referred to in points (b) to (c) 
of Article 108a of the Financial Regulation,  the 
lump-sum, standard scale of unit costs  or flat-rate 
financing referred to in points (b) and (c) of Article 
108a(1) of the Financial Regulation ; Where non-real cost methods are used, 
precision should be given of the amount granted under each method. 
(iii) the elements set out in points (i) and (ii) of 
this point in the cases referred to in point (d) of Article 108a(1) of the Financial Regulation. (iii) where reimbursement of eligible costs 
and other forms of grant are combined , the 
elements set out in points (i) and (ii) of this pointin 
the cases referred to in po int (d) of Article 108a(1) 
of the Financial Regulation.  Simplification for readers 
(e) a detailed descrip tion of the action or, for an (e) a detailed  description of the action or , for an The expected results of the action of work 
 
EN  Error! Unknown document property name.  EN operating grant, of the work programme approved 
for that financial year by the authorising officer; operating grant, of the work programme approved 
for that financial year by the authorising officer 
together with a descri ption of the results 
expected from the implementation of the action 
or of the work programme . programme - especially for lumps sums - 
shall be described in the agreement or decision. This is the condition to move to an output scheme and exercise a real output control. 
(f) the general terms a nd conditions applicable 
to all agreements of this type, such as the acceptance by the beneficiary of audits by the Commission, OLAF and the Court of Auditors and 
of the ex post publication rules referred to in 
Article 169, in accordance with Regulation (EC) No 45/2001;  these general terms shall at least: (f) the general terms a nd conditions applicable 
to all agreements of this type, such as the acceptance by the beneficiary of audits by the Commission, OLAF and the Court of Auditors and 
of the ex post publication rules referred to in 
Article 169, in accordance with Regulation (EC) No 45/2001;  these general terms shall at least:  
(i) state that Community law is the law which 
applies to the grant agreement, complemented, where necessary, by national law as specified in the grant agreement; (i) state that Union
 Community  law is the law 
which applies to the grant agreement, complemented, where necessary, by national law as specified in the grant agreement . Derogation may 
be made in the agreements concluded with 
international organisations;   
(ii) specify the competent court to hear 
disputes. (ii) specify the competent court to hear 
disputes. "Court" covers also arbitration panels. 
(g) the estimated overall budget (g) the estimated overall budget; comprising all 
the costs that are necessary for the  implementation 
of the action or the work programme (eligible and 
ineligible costs), as well as the possible in kind 
contr ibution ; In principle, the budget of an action must 
show all the resources allocated to carry out the action and the total cost the action may entail (estimated in the provisional budget these costs are, when incurred at the end of the action, eligible or not).  
(h) where implementation of the action (h) where implementation of the action  
 
EN  Error! Unknown document property name.  EN involves procurement, the pr inciples referred to in 
Article 184 or the procurement rules which the beneficiary must comply with; involves procurement, the pr inciples referred to in 
Article 184 or the procurement rules which the beneficiary must comply with; 
(i) the responsibilities of the beneficiary, at 
least in terms of sound financial management and submission of activity and financial reports; whenever appropriate, intermediate targets shall be established, upon which those reports become due; (i) the responsibilities of the beneficiary, at 
least in terms of sound financial management and submission of activity and financial reports; whenever appropriate, intermediate targets shall be established, upon which those reports become due;  
(j) the arrangements and time-limits for 
approving those reports and for payment by the 
Commission. (j) the arrangements and time-limits for 
approving those reports and for payment by the 
Commission.  
(k) as appropriate, details of the eligible costs 
of the action or approved work programme, or of the lump sums or flat-rate financing referred to in Article 108a(1) of the Financial Regulation; (k) as appropriate, details of the eligible costs 
of the action or approved work programme, or of the lump sums or standard scale of unit costs or
 
flat-rate financing referred to in Article 108a of the 
Financial Regulation; The total costs shall be mentioned in the 
agreement under point (d) above. The AOD may restrict the categories of eligible costs for a certain programme if he wants to assign the grant to such categories of costs. He shall then detail them in the call for proposals and in th e agreement/decision. 
(l) provisions governing the public display of 
references to the European Communities Budget Support, unless it is not possible or appropriate 
according to a substantiated decision of the authorising officer. (l) provisions governing the public display of 
references to the Union financial support
 
European Communities Budget Support , unless it is 
not possible or appropriate according to a substantiated decision of the authorising officer. Change of wording to avoid confusion with 
Budget Support 
1a. The grant agreement may lay down the 
arrangements and time limits for suspension in accordance with Article 183. 1a. The grant agreement may lay down the 
arrangements and time limits for suspension in accordance with Article 183.  
 
EN  Error! Unknown document property name.  EN 2. In the cases referred to in Article 163, the 
framework partnership decision or framework partnership agreement shall specify the information referred to in points (a),( b) , (c)(i), (d)(i), (f), and 
(h) to (k) of paragra ph 1 of this Article. 2. In the cases referred to in Article 163, the 
framework partnership decision or framework partnership agreement shall specify the information referred to in points (a),( b), (c)(i), (d)(i),
 (f), and 
(h) to (k) of paragra ph 1 of this Article. Deletion of point d), fi nancing rate is not 
mandatory  in framework partnership agreements 
The specific decision or agreement shall contain the 
information referred to in points (a) to (e), (g) and (k) of paragraph 1 and, where necessary, point (i) thereof. The specific decision or agreement shall contain the 
information referred to in points (a) to (e), (g) and (k) of paragraph 1 and, where necessary, point (i) thereof.  
3. Grant agreements may be amended only by 
written additional agreements. Such additional agreements shall not have the purpose or the effect of making such changes to agreements as would call into question the gran t award decision or be 
contrary to the equal treatment of applicants. 3. Grant agreements may be amended only by 
written additional agreements. Such additional agreements shall not have the purpose or the effect of making such changes to agreements as would call into question the gran t award decision or be 
contrary to the equal treatment of applicants.  
4. Paragraphs 1 to 3 shall apply mutatis 
mutandis  to grant decisions.  4. Paragraphs 1 to 3 shall apply mutatis 
mutandis  to grant decisions.   
Some of the information referred to in paragraph 1 
may be provided in the call for proposals or any related document, instea d of the grant decision. Some of the information referred to in paragraph 1 
may be provided in the call for proposals or any related document, instea d of the grant decision.  
 
EN  Error! Unknown document property name.  EN CHAPTER  2 
AWARD PRINCIPLES  CHAPTER  2 
AWARD PRINCIPLES   
Article 165 
No-profit rule 
(Article 109(2) of the Financial Regulation) Article 165 
No-profit rule 
(Article 109(2) of the Financial Regulation)  
1. For the purposes of this Title, profit shall be 
defined as follows: 1. For the purposes of this Title, profit shall be 
defined as follows:  
(a) in the case of a gran t for an action, profit 
means a surplus of receipts over the costs incurred by the beneficiary when the request is made for final payment; (a) in the case of a gran t for an action, profit 
means a surplus of receipts over the costs incurred by the beneficiary, when the request is made for final payment. Provided that
 the co-financing 
principle is respected, the beneficiary may 
substitute other source of funding from third 
parties to its own financial resources;  The principle of the total costs is 
maintained. Ineligibility of costs does not mean that they were not necessary for the implementation of the project (see for example costs disbursed out of the eligibility period). 
Where the beneficiary applied with its own 
funds as co-financing, it should be authorised to reduce them if it finds external funding within the course of the implementation. 
(b) in the case of an operating grant, profit 
means a surplus balance on the operating budget of the beneficiary. (b) in the case of an operating grant, profit 
means a surplus balance on the operating budget of the beneficiary.  
2. Lump sums and flat-r ate financing shall be 
determined according to Article 181 on the basis of the costs or the category of costs to which they 2. Lump sums and, standard scale of unit 
costs  and flat-rate financi ng shall be determined 
according to Article 181 on the basis of  the costs or Covered by  Article 181IR. Are maintained the provisions rela ted to non profit. 
 
EN  Error! Unknown document property name.  EN relate, established by statistical data and similar 
objective means , in such a way as to exclude a 
priori  a profit. On the same basis, those amounts 
shall be reassessed and, wher e appropriate, adjusted 
by the Commission every two years. the category of costs to which they relate, 
established by statistical data and similar objective 
means, in such a way as to reasonably  exclude a 
priori  a profit. On the same basis, those amounts 
shall be reassessed and, where appropriate, ad justed 
by the Commission every two years . 
 
In that case, and for each grant, non-pro fit shall be 
verified at the time of the determination of the 
amounts. In that case, and fo r each grant, non -profit shall be 
verified at the time of the determination of the 
amounts.  Covered by 181 Article IR  
Where the ex post  control on the generating event 
reveals that the event has not occurred and an undue payment has been made  to the beneficiary on 
a lump sum or flat-rate financing, the Commission 
shall be entitled to recover up to the amount of the 
lump sum or flat-rate fina ncing and, in the case of a 
false declaration regardi ng the lump sum or flat-
rate financing, impose fina ncial penalties up to 50% 
of the total amount of the lump sum or flat-rate financing. Where the 
ex post control on the generating event 
reveals that the event has not occurred and an 
undue payment has been made  to the beneficiary on 
a lump sum or flat -rate financing, t he Commission 
shall be entitled to recover up to the amount of the 
lump sum or flat -rate financing and, in the case of a 
false declaration regarding the lump sum or flat -
rate financing, impose fina ncial penalties up to 50% 
of the total amount of the lump s um or flat -rate 
financing.  Such corrections are provided in Articles 
119 FR and 183(3) IR  
Such controls are without prejudice to the verification and certification of actual costs required for the payment of grants or for grants consisting in the reimbursement of a specified proportion of the eligible costs. Such controls are without prejudice to the 
verification and certification of actual costs 
required for the payment of grants or for grants 
consisting in the reimbursement of a specified 
proportion of the eligible costs.  More adequate under 180 IR than under the 
no-profit rule.  
3. In the case of operating grants to bodies which pursue an aim of ge neral European interest, 3. For the purpose of calculating the profit 
generated by the grant  t o  b e  r e c overed , the  
The basis for the calculation of the profit is 
 
EN  Error! Unknown document property name.  EN the Commission shall be en titled to recover the 
percentage of the annual profit corresponding to the 
Community contribution to  the operating budget of 
the bodies concerned wher e these bodies are also 
funded by public authorities  which are themselves 
required to recover the percentage of the annual profit corresponding to thei r contribution. For the 
purpose of calculating the amount to be recovered, 
the percentage corresponding to the contributions in 
kind to the operating budget shall not be taken into 
account. percentage corre sponding to the
 co-financing in 
the form of in kind contributions  to the operating 
budget shall not be taken into account.  
In the case of operating grants to bodies which 
pursue an aim of genera l European interest,  Where  
a profit is made , the Commission shall be entitled 
to recover the percentage of the annual profit 
corresponding to the Union  Community  
contribution to the operating  costs actually 
incurred by the beneficiary to carry out the 
action or work programme budget of the  bodies  
concerned where these bodies where these bodies 
are also funded by public authorities which are 
themselves required to recover the percentage of 
the annual profit corresponding to their 
contribution . For the purpose of calculating the 
amount to be recovered, the percentage 
corresponding to the contri butions in kind to the 
operating budget shall not be taken into account.  unclear and the % of recoverable profit is 
unfair. 
1) the profit of an action/programme is 
calculated on the total costs necessary to carry out the action (entire costs = eligible + non eligible costs). 
 2) Unique and simple regime for all real 
costs grants: the grant is deemed to have 
generated the profit on a prorata basis
. 
 
Article 165a 
Co-financing principle  
(Article 109 of the Financial Regulation) Article 165a 
Co-financing principle  
(Article 109 of the Financial Regulation)  
1. Co-financing shall require that part of the 
cost of an action or of th e running costs of an entity 
is borne by the beneficiary of a grant, or by contributions other than the Community contribution. 1. Co-financing shall require that part of the 
cost of an action or of th e running costs of an entity 
is borne by the beneficiary of a grant, or by 
contributio ns other than the Community 
contribution.  the resources  which are necessary 
to carry out the action or the work programme  
The co-financing principl e shall be verified 
reasonably; especially where in kind contributions are expe cted. To obtain the 
EU grant, the beneficiary has to justify in 
 
EN  Error! Unknown document property name.  EN are not entirely provided by the Union 
contribution . 
Applicants and beneficiar ies shall indicate the 
existence of co-financing.  priority: 
- the satisfactory implementation of 
the action; 
- and in detail its eligible costs; 
then, the action must be co-financed in such 
an extent that the union contribution does not exceed the maximum rate of the relevant basic act.
 
2. In the case of grants taking one of the forms 
provided for in points (b) or (c) of Article 108a(1) 
of the Financial Regulation, or a combination thereof, co-financing shall only be assessed at the stage of the evaluation of  the grant application.  This provision is inserted and clarified in 
Article 109(5) FR 
 Moved from Article 172 and deleted 
This provision is not necessary. Operational 
modalities are left to AOSD within the assessment of the financial capacity of the beneficiary to carry out  the action or work 
programme. 
 
EN  Error! Unknown document property name.  EN  4. The co -financing principle shall be 
considered to be respect ed where the Community 
contribution is designe d to cover certain 
administrative costs of a financial institution, 
including, where appropr iate, a variable fee 
constituting a performance -related incentive in 
relation to the management of a project or 
programme forming an indissol uble whole.  Moved from Article 172 and deleted 
This Article is not ne cessary since financial 
instruments would be excluded from the grant Title and covered by the new Title VIb. 
 2 
5. The authorising officer responsible 
may accept in-kind contributions  as co-financing 
in kind , if considered necessary or appropriate. 
Such contributions must not exceed:  
(a) either the costs actually borne and duly 
supported by accounting documents; 
(b) or, failing that , the costs generally accepted on 
the market in question. 
In-kind contributions shall be presented 
separately in the estimated budget to reflect the 
total resources allocated to the action. Their unit 
value is evaluated in the provisional budget and 
shall not be subject to subsequent changes.  Moved from Article 172 and modified 
 
In-kind contributions concern the provision 
of resources  without any cost  borne by the 
beneficiary for the implementation  of the 
action. However, the beneficiary can justify the value of such cont ribution in providing 
accounting documents (e.g. invoicing of same services to third parties, or invoice from third parties for same services). 
We can only affect to these an equivalent 
monetary amount to estimate an economy 
for sake of conforming to the maximum rate 
of funding included in legal basis .  
As in kind contributions are difficult to 
evaluate and control they allow compliance with the co-financing principle. 
Where the AO decides to finance up to 
 
EN  Error! Unknown document property name.  EN 100% of the eligible costs, the possible 
profit of the action may be totally recovered 
by the Commission (see Article 165(3) IR above); 
In kind contribution are not allowed for 
operating grant where the whole annual budget of the beneficiary is already taken into account as eligible basis; 
 
Contributions involving real estate as referred to in 
Article 116(1) shall be excluded from the 
calculation of the amount of co -financing  
In-kind contributions shall comply with national 
tax and social security rules.   Deletion as this provision is difficult to 
understand: the exact value of in kind contribution does not matter for the calculation of the grant. It is difficult to defend that a working programme is not co-financed where a building is provided for the activities of a beneficiary. 
Problems exist if such the equivalent value 
of such contributions is declared eligible. 
Article 166 
Annual programming 
(Article 110(1) of the Financial Regulation) Article 166 
Annual
 pProgramming 
(Article 110(1) of the Financial Regulation)  
1. An annual work programme for grants shall 
be prepared by each authorising officer responsible. This work programme sh all be adopted by the 
institution and published on th e grants internet site 
of the institution concerned as soon as possible, if 1. An
 annual  work programme for grants shall 
be prepared and may be adopted  by each 
authorising officer responsible.  Theis work 
programme shall be adopte d by the institution and 
published on the grants internet site of the A work programme for grant is required 
here for transparency reasons and sound programming. It may then be adopted by the AO. It may cover more than one year for 
 
EN  Error! Unknown document property name.  EN necessary during the y ear preceding budget 
implementation, and no later than 31 March of the 
year of implementation. institution concerned as soon as possible, if 
necessary during the year preceding budget 
implementation, and  no later than 31 March of the 
year of implementation. repetitive grant schemes.  
It has not in itself the value of a financing 
decision . Should the AO want to commit 
credits on that basis he shall annex the work programme to a financing decision to be adopted by the College and make it sufficiently detailed. 
The work programme shall specify the basic act, 
the objectives, the schedule of calls for proposals 
with the indicative amount and the results expected. The work programme shall specify the basic act, 
the budgetary line
, the objectives to be fulfilled , 
the foreseen results , the schedule of calls for 
proposals with the indicative amount, the period 
covered by the programme , the maximum rate 
of co-financing  and the results expected .  
 
2. Any substantial change in the work 
programme in the course of  the year shall also be 
adopted and published as provided for in paragraph 1. 2. Any substantial change in the work 
programme in the course of  the year shall also be 
adopted and published as provided for in paragraph 1.  
Article 167 
Content of calls for proposals 
(Article 110(1) of the Financial Regulation) Article 167 
Content of calls for proposals 
(Article 110(1) of the Financial Regulation)  
1. Calls for proposals shall specify: 1. Calls for proposals shall specify:  
(a) the objectives pursued; (a ) the objectives pursued;  
(b) the eligibility, exclusion, selection and 
award criteria as referred to in Articles 114 and 115 
of the Financial Regulation and the relevant (b) the eligibility, exclusion, selection and 
award criteria as referred to in Articles 114 and 115 
of the Financial Regulation and the relevant  
 
EN  Error! Unknown document property name.  EN supporting documents; supporting documents; 
(c) the arrangements for Community financ ing; (c) the arrangements for Community  Union  
financing;  
(d) the arrangements and final date for the 
submission of proposals a nd the possible start-up 
date for the actions and th e planned date for closing 
the award procedure. (d) the arrangements and final date for the 
submission of proposals a nd the possible start-up 
date for the actions and th e planned date for closing 
the award procedure.  
2. Calls for proposals shall be published on the 
internet site of the Community institutions and 
possibly by any other appr opriate means, including 
the Official Journal of the European Union , in 
order to provide maximum publicity among potential beneficiaries.  They may be published 
during the year preceding budget implementation. Any modification of the c ontent of the calls for 
proposals shall be also subj ect to publication under 
the same conditions. 2. Calls for proposals shall be published on the 
internet site of the Community
 Union  institutions 
and possibly by any othe r appropriate means, 
including the Official Journal of the European 
Union , in order to provide maximum publicity 
among potential beneficiaries. They may be published during the y ear preceding budget 
implementation. Any modification of the content of the calls for proposals shall be also subject to publication under the same conditions.  
Article 168 
Exceptions to calls for proposals 
(Article 110(1) of the Financial Regulation) Article 168 
Exceptions to calls for proposals 
(Article 110(1) of the Financial Regulation)  
1. Grants may be awarded without a call for 
proposals only in th e following cases: 1. Grants may be awarded without a call for 
proposals only in th e following cases:  
(a) for the purposes of humanitarian aid, within 
the meaning of Council Regulation No 1257/96
28 (a) for the purposes of humanitarian aid and 
civil protection operations or for crisis management  
                                                 
28 OJ L 163, 2.7.1996, p. 1. 
 
EN  Error! Unknown document property name.  EN and aid for crisis situations within the meaning of 
paragraph 2; aid  within the meaning of paragraph 2; 
(b) in other exceptional and duly substantiated 
emergencies; (b) in other exceptional and duly substantiated 
emergencies;  
(c) to bodies with a de jure  or de facto  
monopoly, duly substantiated in the award decision; (c) to bodies with a de jure  or de facto  
monopoly, duly substantiated in the award decision;  
(d) to bodies identified by a basic act, within 
the meaning of Article 49 of the Financial 
Regulation, as beneficiaries of a grant. (d) to bodies identified by a basic act, within 
the meaning of Article 49 of the Financial 
Regulation, as beneficiaries of a grant or to bodies 
designated by the Member States, under their 
responsibility, where those Member States are 
identified by a basic ac t as beneficiaries of a 
grant . Following the experience of some services, 
there seems to be a need to award grants to 
(public or private) bodies implementing the 
actions in the name and on behalf of the Member States, as only the latter are identified as beneficiaries of grants under centralised management in the relevant basic acts (e.g. programmes implemented by DG ESTAT, some actions by DG SANCO). The current use of Article 168(1)(c) IR, i.e. bodies in monopolistic situations, is not completely satisfactory. 
 
(e) in the case of re search and technological 
development, to bodies identified in the annual work programme referred to in Article 110 of the Financial Regulation, where the basic act expressly 
provides for that possibility, and on condition that the project does not fall under the scope of a call for proposals; (e) in the case of re search and technological 
development, to bodies identified in the annual work programme referred to in Article 110 of the Financial Regulation, where the basic act expressly 
provides for that possibility, and on condition that the project does not fall under the scope of a call for proposals;  
 
EN  Error! Unknown document property name.  EN (f) for actions with specific characteristics that 
require a particular type of body on account of its 
technical competence, its high degree of specialisation or its administrative power, on condition that the action s concerned do not fall 
within the scope of a call for proposals. (f) for actions with specific characteristics that 
require a particular type of body on account of its 
technical competence, its high degree of specialisation or its administrative power, on condition that the action s concerned do not fall 
within the scope of a call for proposals. The se
 cases 
referred to in point (f) of th e first subparagraph  
shall be duly substantiated in the award decision.  
  Following paragraph merged 
The cases referred to in point (f) of the first 
subparagraph shall be dul y substantiated in the 
award decision. The cases referred to i
n point (f) of the first 
subparagraph shall be dul y substantiated in the 
award decision .  
2. Crisis situations shall be understood to 
mean, for third countries, s ituations posing a threat 
to law and order, the security and safety of individuals, threatening to escalate into armed conflict or to destabilise  the country, and which 
could seriously harm: 2. Crisis situations shall be understood to 
mean, for third countries, situations of immediate 
or imminent danger  threatening to escalate into 
armed conflict or to de stabilise the country. 
Situation of crisis may also result from natural 
disasters, manmade crisis such as wars and 
other conflicts or extraordinary circumstances 
having comparable effects related inter alia to 
climate change, environmental degradation, 
privation of access to energy and natural 
resources or extreme poverty. posing a threat to 
law and order, the security and safety of 
individuals, threatening to escalate into armed 
conflict or to dest abilise the country , and which 
could seriously harm : Obsolete references to the Treaty are 
deleted. A definition is laid down, inspired from IFS Regulation and Cotonou Agreement (Article 72(2)). 
(a) the safeguarding of the common values, 
fundamental interests, independence and integrity   
 
EN  Error! Unknown document property name.  EN of the European Union; 
(b) the security of the European Union, peace-
keeping and international security, promotion of 
international cooperation or development and strengthening of democracy, the rule of law, respect 
for human rights and fundamental freedoms, in accordance with Article 11 of the Treaty on European Union and Article 3 of Council Regulation (EC) No 381/2001
29.  Unnecessary reference to texts, as the 
definition is redrafted to encompass all cases of immediate global crisis (urgency) and imminent risk of global crisis. Avoid future obsolete references 
Article 169 
Ex post publication 
(Article 110(2) of the Financial Regulation) Article 169 
Ex post publication 
(Article 110(2) of the Financial Regulation)  
1. All grants awarded in the course of a 
financial year, except scholarships paid to natural persons, shall be published, according to a standard presentation, in a dedicated and easily accessible place of the internet site of the Community institution concerned duri ng the first half of the 
year following the closure of the budget year in respect of which they were awarded. 1. All grants awarded in the course of a 
financial year, except for very low value grants
 
referred to in Article 175b and scholarships paid 
to natural persons, shall be published, in 
accordance with Article 25b . a standard 
presentation, in a dedicated and easily accessible 
place of the internet site of the Community 
institution concerned duri ng the first half of the 
year following the closure of the budget year in 
respect of which they were awa rded.  Following the introduction of a new 
Article 25b IR, the exis ting obligations in 
relation to publicity should be amended – 
publication of very low value grants paid to 
natural persons is mean ingless (see current 
exemption for scholarships). 
In cases where management is delegated to the 
bodies referred to in Article 54 of the Financial Regulation, reference shall be made at least to the In cases where management is delegated to the 
bodies referred to in Article 54 of the Financial 
Regulation, reference shall be made at least to the Moved under Art 25c IR. 
                                                 
29 OJ L 57, 27.2.2001, p. 5. 
 
EN  Error! Unknown document property name.  EN address of the website where this information can 
be found if it is not pub lished directly in the 
dedicated place of the internet site of the 
Community institutions. address of the website where this information can 
be found if it is not published directly in the 
dedicated place of the internet site of the 
Community institutions.  
The information may also be published, according 
to a standard presentati on, by any other appropriate 
means, including the Official Journal of the 
European Union . The information may also be published, according 
to a standard presentati on, by any other appropriate 
means, including the Official Journal of the 
European Union . Moved under Art 25c IR. 
2. The following shall be published with the 
agreement of the benefici ary in accordance with 
point (f) of Article 164(1): 2. The following shall be published with the 
agreement of the benefici ary in accordance with 
point (f) of Article 164(1):  
(a) the name and address of the beneficiaries; (a ) the name and address of the beneficiaries;  
(b) the subject of the grant; (b) the subject of the grant;  (c) the amount awarded and, except in the case 
of a lump sum or flat-rate financing as referred to in 
Article 108a (1)(b) and (c) of the Financial Regulation, the rate of funding of the costs of the action or approved work programme. (c) the amount awarded and, except in the case 
of a lump sum or standard scale of unit costs
 as 
referred to in Article 108a points (b) and (bb)  of 
the Financial Regulation, th e rate of funding of the 
costs of the action or approved work programme. Modification linked with the new 
qualification of standard scale of unit costs  
The obligation laid down in the first subparagraph may be waived if publication of the information may threaten the safety of the beneficiaries or harm 
their business interests The obligation laid down in the first subparagraph 
may be waived if publication of the information may threaten the safety of the beneficiaries or harm 
their business interests.  
3. Following the publica tion pursuant to 
paragraph 2, when requested by the budgetary authority the Commission shall forward to the latter 3. Following the publica tion pursuant to 
paragraph 2, when requested by the budgetary authority the Commission shall forward to the latter  
 
EN  Error! Unknown document property name.  EN a report on: a report on : 
(a) the number of applicants in the past year; (a) the number of applicants in the past year;  
(b) the number and percentage of successful 
applications per call for proposals; (b) the number and percentage of successful 
applications per call for proposals;  
(c) the mean duration of the procedure from 
date of closure of the call for proposals to the award of a grant; (c) the mean duration of the procedure from 
date of closure of the call for proposals to the award of a grant;  
(d) the number and amount of grants where the 
ex post publication obligation was waived in the 
past year for reasons of safety of the beneficiaries 
or protection of th eir business interest. (d) the number and amount of grants where the 
ex post publication obligation was waived in the 
past year for reasons of safety of the beneficiaries 
or protection of th eir business interest.  
Article 169a 
Information for applicants 
(Article 110 of the Financial Regulation) Article 169a 
Information for applicants 
(Article 110 of the Financial Regulation)  
The Commission shall pr ovide information and 
advice to applicants by the following means: The Commission shall pr ovide information and 
advice to applicants by the following means:  
(a) laying down joint standards for application 
forms for similar grants a nd monitoring the size and 
readability of the application forms; (a) laying down joint standards for application 
forms for similar grants a nd monitoring the size and 
readability of the application forms;  
(b) supplying information to potential 
applicants in particular through seminars and the provision of handbooks. (b) supplying information to potential 
applicants in particular through seminars and the provision of handbooks.  
(c) maintaining permanent data for (c ) maintaining permanent data for  
 
EN  Error! Unknown document property name.  EN beneficiaries in the Legal Entity File referred to in 
Article 64. beneficiaries in the Legal Entity File referred to in 
Article 64. 
Article 170 
Joint financing 
(Article 111 of the Financial Regulation) Article 170 
Multiple  Joint  financing 
(Article 111 of the Financial Regulation) Avoid confusion with ex-joint management 
in the title 
An action may be financed jointly from separate 
budget lines by a number of authorising officers. An action may be financed jointly from separate 
budget lines by a number of authorising officers.  
Article 171 
Retroactive effect for m anagement of humanitarian 
aid and crisis situations 
(Article 112 of the Financial Regulation) Article 171 
Retroactive effect of fund ing in cases of extreme 
urgency for management of humanitarian aid and 
crisis situations  
(Article 112 of the Financial Regulation)  
In order to ensure that humanitarian aid operations 
and operations in crisis situations within the meaning of Article 168(2) are conducted 
efficiently, expenditure incurred by a beneficiary 
before the date of submission of the application shall be eligible for Community financing solely in the following cases: Within the scope of Article 112(1) of the 
Financial Regulation,   In order to ensure that 
humanitarian aid operations and operations in crisis 
situations within the mean ing of Article 168(2) are 
conducted efficiently,  the expenditure incurred by a 
beneficiary before the da te of submission of the 
application shall be eligible for Community  Union  
financing under the following conditions  solely in 
the following cases : The scope of the super-retroactivity (costs 
incurred before the submission of applications) is restricted for 3 sectors and by the extreme urgency in the FR. Further restrictions seems excessive.  
  
(a) where the expenditure relates to the 
constitution of stocks by the applicant for use in 
connection with the action for which the grant is awarded; (a) the reasons for such derogation have been 
properly substantiated in the financing decision where the expenditure relates to the constitution of 
stocks by the a pplicant for use in  connection with 
the action for which the grant is awarded;  Appreciation at the level of the Financing 
Decision is maintained. 
 
EN  Error! Unknown document property name.  EN  
(b) by way of exception and for properly 
substantiated reasons, where the financing decision and the grant agreement explicitly provide for this by setting an eligibility date  earlier than the date for 
submission of applications. (b) by way of exception and for prop
erly 
substantiated reasons, where  the financing decision 
and the grant agreement or decision  explicitly 
provide for this by  setting  explicitly  the an 
eligibility date earlier than the date for submission 
of applications.  
 
Article 172 
External co-financing 
(Article 113 of the Financial Regulation) Article 172  
External co -financing  
(Article 113 of the Financial Regulation ) Repealed, content moved to Article 165a 
1. The beneficiary shall supply evidence of the 
co-financing provided, either by way of own 
resources, or in the form of financial transfers from third parties, or in kind, save in cases of 
contributions of a flat-rate amount and scales of unit costs referred to in Article 181(1). 1.
 The beneficiary shall supply evidence of the 
co-financing provided , either by way of own 
resources, or in the form of financial transfers from 
third parties, or in kind, save in cases of 
contributions of a flat -rate amount and scales of 
unit costs referred to in Article 181(1).   
2. The authorising officer responsible may 
accept co-financing in kind, if considered necessary or appropriate. In such cases the value of such contributions must not exceed: 2.
 The authorising officer responsible may 
accept co -financing in kind, if considered necessary 
or appropriate. In such ca ses the value of such 
contributions must not exceed:  Moved to Article 165a IR 
(a) either the costs actually borne and duly 
supported by accounting documents; (a) either the costs actually borne and duly 
supported by accounting documents;   
(b) or the costs generally accepted on the 
market in question. (b) or the costs generally accepted on the 
market in question.   
 
EN  Error! Unknown document property name.  EN Contributions involving real estate as referred to in 
Article 116(1) shall be excluded from the calculation of the amou nt of co-financing. Cont
ributions involving real estate as referred to in 
Article 116(1) shall be excluded from the 
calculation of the amount of co -financing.   
3. For grants with a total value of less than or 
equal to EUR 25 000, the authorising officer responsible may, depending on his risk assessment, 
waive the obligation to provide the evidence for co-financing referred to in paragraph 1. 3.
 For grants with a total value of less than or 
equal to EUR  25 000, the authorising officer 
responsible may, depending on his risk assessm ent, 
waive the obligation to provide the evidence for co -
financing referred to in paragraph 1.  Moved to Article 165a IR 
Where a single beneficiary is awarded several 
grants in a financial year, the threshold of EUR 25 
000 shall apply to the to tal of those grants. Where a single beneficiary is awarded several 
grants in a financial year, the threshold of EUR 25 
000 shall apply to the to tal of those grants.  Moved to Article 165a IR 
4. The co-financing principle shall be 
considered to be respect ed where the Community 
contribution is designe d to cover certain 
administrative costs of a financial institution, including, where appropr iate, a variable fee 
constituting a performance-related incentive in relation to the management of a project or programme forming an indissoluble whole. 4.
 The co -financing principle shall be 
considered to be respect ed where the Community 
contribution is designe d to cover certain 
administrative costs of a financial institution, 
including, where appropr iate, a variable fee 
constituting a performance -related incentive in 
relation to the management of a project or 
programme forming an indissoluble whole.  Moved to Article 165a IR 
 
EN  Error! Unknown document property name.  EN    
 
Article 172a  
Eligible costs 
(Article 113 of the Financial Regulation) Article 172a  
Eligible costs 
(Article 113 of the Financial Regulation) (New Article 172 IR has been deleted : 
considered as confusing or unnecessary by 
several DGs). 
1. Eligible costs are costs actually incurred by 
the beneficiary of a grant which meet all the following criteria: 1. Eligible costs are costs actually incurred by 
the beneficiary of a grant which meet all the following criteria: Initial text restated. 
 
(a) they are incurred during the duration of the 
action or of the work programme, with the 
exception of costs relating to  final reports and audit 
certificates; (a) they are incurred during the duration of the 
action or of the work programme, with the 
exception of costs relating to  final reports and audit 
certificates;  
(b) they are indicated in the estimated overall 
budget of the action or work programme;  (b) they are indicated in the estimated overall 
budget of the action or work programme;   
(c) they are necessary for the implementation of 
the action or of the work programme which is the subject of the grant; (c) they are necessary for the implementation of 
the action or of the work programme which is the subject of the grant;  
(d) they are identifiable and verifiable, in 
particular being recorded in the accounting records 
of the beneficiary and determined according to the applicable accounting sta ndards of the country 
where the beneficiary is established and according to the usual cost-accounting practices of the (d) they are identifiable and verifiable, in 
particular being recorded in the accounting records 
of the beneficiary and determined according to the applicable accounting sta ndards of the country 
where the beneficiary is established and according to the usual cost-accounting practices of the  
 
EN  Error! Unknown document property name.  EN beneficiary; beneficiary; 
(e) they comply with the requirements of 
applicable tax and so cial legislation; (e) they comply with the requirements of 
applicable tax and so cial legislation;  
(f) they are reasonable, justified, and comply 
with the requirements of sound financial management, in particular regarding economy and efficiency.  (f) they are reasonable, justified, and comply 
with the requirements of sound financial management, in particular regarding economy and efficiency.   
2. Without prejudice to paragraph 1 and to the 
basic act, the following costs may be considered as 
eligible by the authoris ing officer responsible:  2. Without prejudice to paragraph 1 and to the 
basic act, the call for proposals shall specify the 
categories of  costs cons idered eligible for Union 
funding.   
Tthe following costs may be considered as eligible 
by the authorising officer responsible: For efficiency reasons AOD may choose : 
- to work with the sole notion of eligible 
costs with the consequences entailed for the 
non-profit and the co -financing rules ; 
- and/or to restrict the categories of eligible 
costs for certain programmes. 
 
(a) costs relating to a bank guarantee or 
comparable surety to be lodged by the beneficiary of the grant pursuant to Ar ticle 118 of the Financial 
Regulation; (a) costs relating to a bank guarantee or 
comparable surety to be lodged by the beneficiary of the grant pursuant to Ar ticle 118 of the Financial 
Regulation;  
(b) costs relating to external audits required by 
the responsible authorising officer either upon the request for financing or upon the request for payment;  (b) costs relating to external audits required by 
the responsible authorising officer either upon the request for financing or upon the cost statement
 
request for payment ;  Terminology 
(c) value added tax paid, and which cannot be 
refunded to the benefici ary according to the (c) value added tax paid, and which cannot be 
refunded to the benefici ary according to the  
 
EN  Error! Unknown document property name.  EN applicable national legislation;  applicable national legislation;  
(d) depreciation costs, provided they are 
actually incurred by th e beneficiary;  (d) depreciation costs, provided they are 
actually incurred by th e beneficiary;   
(e) administrative expenditure, staff and 
equipment costs, includi ng the salary costs of 
personnel of national administrations to the extent that they relate to the cost of activities which the relevant public authority w ould not carry out if the 
project concerned we re not undertaken. (e) administrative expenditure, staff and 
equipment costs, includi ng the salary costs of 
personnel of national administrations to the extent that they relate to the cost of activities which the relevant public authority w ould not carry out if the 
project concerned we re not undertaken.  
 3. Costs incurred by affiliated members as 
referred to in Article 161b of the present 
regulation may be accepted as eligible provided 
that the concerned members  are identified in the 
grant agreement or decisi on and abide the rules 
applicable to the beneficiary under the grant 
agreement or decision, including those 
concerning the rights of the Commission and the 
Court of Auditors to control the spending of 
expenditure in accordance with the grant rules.   
Article 172b 
Principle of gradual decrea se of operating grants 
(Article 113(2) of the Financial Regulation) Article 172b 
Principle of gradual decrea se of operating grants 
(Article 113(2) of the Financial Regulation)  
 
Where operating grants are decreased, they shall be 
decreased in a proportionate and equitable manner. Where operating grants are decreased, they shall be 
decreased in a proportionate and equitable manner.  
 
EN  Error! Unknown document property name.  EN Article 172c 
Financing applications  
(Article 114 of the Financial Regulation) Article 172c 
Financing applications  
(Article 114 of the Financial Regulation)  
1. The arrangements for the submission of 
grant applications shall be determined by the authorising officer responsible, who may choose the method of submission. Grant applications may 
be submitted by letter or by electronic means. 1. The arrangements for the submission of 
grant applications shall be determined by the authorising officer responsible, who may choose the method of submission. Grant applications may 
be submitted by letter or by electronic means.  
The means of communication chosen shall be non-
discriminatory in nature  and shall not have the 
effect of restricting the access of applicants to the 
award procedure. The means of communication chosen shall be non-
discriminatory in nature  and shall not have the 
effect of restricting the access of applicants to the 
award procedure.  
The means of communication chosen shall be such 
as to ensure that the following conditions are satisfied: The means of communication chosen shall be such 
as to ensure that the following conditions are satisfied:  
(a) each submission must contain all the 
information required for its evaluation; (a) each submission must contain all the 
information required for its evaluation;  
(b) the integrity of data must be preserved; (b) the integrity of data must be preserved;  
(c) the confidentiality of proposals must be 
preserved. (c) the confidentiality of proposals must be 
preserved.  
For the purposes of point (c), the authorising officer 
responsible shall examine the content of applications only after the time-limit set for submitting them has expired. For the purposes of point (c), the authorising officer 
responsible shall examine the content of applications only after the time-limit set for submitting them has expired.  
 
EN  Error! Unknown document property name.  EN The authorising officer res ponsible may require that 
electronic submission be accompanied by an advanced electronic signature within the meaning of Directive 1999/93/EC. The authorising officer res ponsible may require that 
electronic submission be accompanied by an advanced electronic signature within the meaning of Directive 1999/93/EC.  
2. Where the authorising officer responsible 
authorises submission of applications by electronic means, the tools used and their technical characteristics shall be  non-discriminatory in 
nature, generally availabl e and interoperable with 
the information and communication technology 
products in general use. The information relating to the specifications required for presentation of applications, including en cryption shall be made 
available to the applicants. 2. Where the authorising officer responsible 
authorises submission of applications by electronic means, the tools used and their technical characteristics shall be  non-discriminatory in 
nature, generally availabl e and interoperable with 
the information and communication technology 
products in general use. The information relating to the specifications requir ed for presentation of 
applications, including en cryption shall be made 
available to the applicants.  
Moreover, the devices for the electronic receipt of 
applications shall guarantee security and confidentiality. Moreover, the devices for the electronic receipt of 
applications shall guarantee security and confidentiality.  
3. Where submission is by letter, applicants 
may choose to submit applic ations in one of the 
following ways: 3. Where submission is by letter, applicants 
may choose to submit applic ations in one of the 
following ways:  
(a) by post or by courier service, in which case 
the call for proposals shall sp ecify that the evidence 
shall be constituted by the date of dispatch, the postmark or the date of the deposit slip; (a) by post or by courier service, in which case 
the call for proposals shall sp ecify that the evidence 
shall be constituted by the date of dispatch, the postmark or the date of the deposit slip;  
(b) by hand-delivery to the premises of the 
institution by the applicant in person or by an agent, in which case the call fo r proposals shall specify (b) by hand-delivery to the premises of the 
institution by the applicant in person or by an agent, in which case the call fo r proposals shall specify  
 
EN  Error! Unknown document property name.  EN the department to which applications are to be 
delivered against a signe d and dated receipt. the department to which applications are to be 
delivered against a signe d and dated receipt. 
CHAPTER  3 
AWARD PROCEDURE  CHAPTER  3 
AWARD PROCEDURE   
Article 173 
Financing applications 
(Article 114 of the Financial Regulation) Article 173 
Financing applications 
(Article 114 of the Financial Regulation)  
1. Applications shall be made on the form 
established in accordance with the joint standards laid down pursuant to Ar ticle 169a(a) and made 
available by the authorising officers responsible, and in accordance with the criteria laid down in the basic act and the call for proposals. 1. Applications shall be made on the form 
established in accordance with the joint standards laid down pursuant to Ar ticle 169a(a) and made 
available by the authorising officers responsible, and in accordance with the criteria laid down in the basic act and the call for proposals.  
2. The application shall show the legal status 
of the applicant and his financial and operational 
capacity to carry out the proposed action or work 
programme, subject to  Article 176(4). 2. The application shall show the legal status 
of the applicant and his financial and operational 
capacity to carry out the proposed action or work 
programme, subject to  Article 176(4).  
For that purpose the applicant shall submit a 
declaration on his honour a nd, for applications for a 
grant exceeding EUR 25,000, any supporting documents requested, on the basis of his risks assessment, by the authorising officer responsible. The request for such documents shall be indicated in the call for proposals. For that purpose the applicant shall submit a 
declaration on his honour a nd, for applications for a 
grant exceeding EUR 2
50,000, any supporting 
documents requested, on the basis of his risks assessment, by the authorising officer responsible. The request for such documents shall be indicated in the call for proposals. Low value grants : th reshold raised from 
25.000 € to 50.000 € 
 
EN  Error! Unknown document property name.  EN The supporting documents may consist in particular 
in the profit and loss account, the balance sheet for the last financial year fo r which the accounts were 
closed. The supporting documents may consist in particular 
in the profit and loss account, the balance sheet for the last financial year fo r which the accounts were 
closed.  
3. The budget for the action or the operating 
budget attached to the a pplication shall have 
revenue and expenditure in  balance, subject to 
provisions for possible varia tions in exchange rates, 
and shall indicate the cost s which are eligible for 
financing from the Community budget. 3. The estimated
 budget for the action or the 
operating budget attached to  the application shall 
have revenue and expenditure in balance, subject to provisions for possible varia tions in exchange rates, 
and shall indicate the  costs which are necessary to 
carry out the action eligible  for financing from the 
Community budget . In principle, the estimated budget of the 
action must show all the cost and all the resources allocated to  realise the action. 
Then the AO must appreciate which proportion of eligible cost EU funds may 
cover. 
4. Where the application concerns grants for 
an action for which am ount exceeds EUR 500,000 
or operating grants of which exceed EUR 100,000, an audit report produced by an approved external auditor shall be submitted. That report shall certify the accounts for the last financial year available. 4. Where the application concerns grants for 
an action for which am ount exceeds EUR 750,000 
or operating grants of which exceed EUR 100,000, an audit report produced by ann
 approved  approved 
external auditor shall be submitted. That report shall certify the accounts for the last financial year 
available.  Approved is maintained, as the term 
"certified" raised questions from several DGs. 
750,000 € is the threshold retained for 
Article 180 IR. 
The provisions of the first subparagraph shall apply 
only to the first applica tion made by a beneficiary 
to an authorising officer in any one budget year. The provisions of the first subparagraph shall apply 
where grants take the form of a reimbursement of a specified proportion of eligible costs as provided for in Article 108a first paragraph
 points a) and c) 
of the Financial Regulati on. In such cases, these 
provisions shall apply only to the first application made by a beneficiary to an authorising officer in any one budget year.  
In the case of agreements linking the Commission 
and a number of benefici aries, those thresholds In the case of agreements linking the Commission 
and a number of benefici aries, those thresholds  
 
EN  Error! Unknown document property name.  EN shall apply to each beneficiary. shall apply to each beneficiary. 
In case of partnerships as referred to in Article 163, 
the audit referred to in the first subparagraph, covering the last two financ ial years available must 
be produced before the framework agreement is concluded. In case of partnerships as referred to in Article 163, 
the audit referred to in the first subparagraph, covering the last two financ ial years available must 
be produced before the framework agreement is concluded.  
The authorising officer responsible may, depending 
on his risk assessment, waive the obligation of audit referred to in the first subparagraph for, 
secondary and higher education establishments and 
beneficiaries who have accepted joint and several liabilities in the case of agreements with a number 
of beneficiaries. The authorising officer responsible may, depending 
on his risk assessment, waive the obligation of audit referred to in the first subparagraph for, 
secondary and higher education establishments and 
beneficiaries who have accepted joint and several liabilities in the case of agreements with a number 
of beneficiaries.  
The first subparagraph sh all not apply to public 
bodies and the internationa l organisations referred 
to in Article 43 (2). The first subparagraph sh all not apply to public 
bodies and the internationa l organisations referred 
to in Article  38
 43 (2).  Renumbering of Articles 
5. The applicant shall indicate the sources and 
amounts of any other fundi ng received or applied 
for in the same financial year for the same action or for any other action and for routine activities. 5. The applicant shall indicate the sources and 
amounts of any other fundi ng received or applied 
for in the same financial year for the same action or for any other action and for routine activities.  
Article 174 
Evidence of non exclusion 
(Article 114 of the Financial Regulation) Article 174 
Evidence of non exclusion 
(Article 114 of the Financial Regulation)  
Applicants shall declare on their honour that they 
are not in one of the situations listed in Article 93(1) and 94 of the Financial Regulation. The Applicants shall declare on their honour that they 
are not in one of the situations listed in Article 93 and 94 of the Financial Re gulation. The authorising The objective is to avoid burdensome 
formalities for beneficiaries where they are unnecessary or have already been 
 
EN  Error! Unknown document property name.  EN authorising officer respons ible may, depending on 
his risk analysis, request th e evidence referred to in 
Article 134. Applicants sha ll be required to supply 
such evidence, unless there is a material impossibility recognised by the authorising officer responsible. officer responsible may, depending on his risk 
analysis, request that successful applicants 
provide  the evidence referred to in Article 134. 
Applicants  Applicants  shall be required to supply 
such evidence, unless there is a material impossibility recognised by the authorising officer responsible or such evidence has already been 
submitted for the purposes of another grant or 
procurement procedure, provided that the 
documents are not more than one year old 
starting from their date of issue . accomplished under another recent 
procedure.  However, it is a possibility for the AOSD, therefore in principle applicants  are 
requested to supply evidence. 
Article 174a 
Applicants without legal personality 
(Article 114 of the Financial Regulation) Article 174a 
Applicants without legal personality 
(Article 114 of the Financial Regulation)  
When an application for a grant is submitted by an 
applicant who does not have legal personality, in accordance with Article 114( 2)(a) of the Financial 
Regulation, the representati ves of that applicant 
shall prove that they have the capacity to undertake legal obligations on behalf  of the applicant, and 
shall offer financial guarant ees equivalent to those 
provided by legal persons When an application for a grant is submitted by an 
applicant who does not have  legal personality, in 
accordance with Article 114(2)(a) of the Financial Regulation, the representa tives of that applicant 
shall prove that they have  the capacity to undertake 
legal obligations on behalf of the applicant, and shall offer financial and operational
 guarantees 
equivalent to those provided by legal persons  
    Financial capacity and operational capacity must ensured 
 Article 174b 
Legal entities forming one applicant 
(Article 114 of the Financial Regulation)  
 The authorising Officer responsible may consider 
as a unique applicant several legal entities which together satisfy the cond itions for applying for a  
In line with Article 161b, a provision is 
inserted to cover legally constituted 
 
EN  Error! Unknown document property name.  EN grant, provided that the application identifies these 
entities involved in the proposed action or work 
programme as part of  the applicant.  networks, groupings, consortia. 
    
Article 175 
Financial and administrative penalties 
(Article 114 of the Financial Regulation) Article 175 
Financial and administrative penalties 
(Article 114 of the Financial Regulation)  
1. Financial or administrative penalties, or 
both, may be imposed on applicants who have 
made false declarations or substantial errors, or committed irregularities or fraud, in accordance with the conditions laid  down in Article 134b and 
in proportion to the value of  the grants in question. 1. Financial or administrative penalties, or 
both, may be imposed on applicants who have 
made false declarations or substantial errors, or committed irregularities or fraud, in accordance with the conditions laid  down in Article 134b and 
in proportion to the value of  the grants in question.  
Such financial or administra tive penalties, or both, 
may also be imposed on beneficiaries who have been found in serious breach  of their contractual 
obligations. Such financial or administra tive penalties, or both, 
may also be imposed on beneficiaries who have been found in serious breach  of their contractual 
obligations.  
Article 175a 
Eligibility criteria 
(Article 114 of the Financial Regulation) Article 175a 
Eligibility criteria 
(Article 114 of the Financial Regulation)  
1. The eligibility criteria shall be published in 
the call for proposals. 1. The eligibility criteria shall be published in 
the call for proposals.  
2. The eligibility criteria shall determine the 
conditions for participating in a call for proposals. 2. The eligibility criteria shall determine the 
conditions for participating in a call for proposals.  
 
EN  Error! Unknown document property name.  EN Those criteria shall be established with due regard 
for the objectives of the action and shall comply with the principles of transparency and non-discrimination.  Those criteria shall be established with due regard 
for the objectives of the action and shall comply with the principles of transparency and non-discrimination.  
Article 175b 
Very low value grants 
(Article 114(3) of the Financial Regulation) Article 175b 
Very low value grants 
(Article 114(3) of the Financial Regulation)  
 
Very low-value grants sha ll be considered to be 
those grants which are lo wer than or equal to 
EUR 5 000. Very low-value grants shall be considered to be 
those grants which are lower than or equal to 
EUR 5 000. The very low value threshold allows the AO 
to exempt from any
 evidence of of non-
exclusion: Article 114(3 ) FR (declaration of 
honour). No change  
Article 176 
Selection criteria 
(Article 115(1) of the Financial Regulation) Article 176 
Selection criteria 
(Article 115(1) of the Financial Regulation)  
1. The selection criteria shall be published in 
the call for proposals and shall be such as to make it possible to assess the a pplicant's financial and 
operational capacity to complete the proposed action or work programme. 1. The selection criteria shall be published in 
the call for proposals and shall be such as to make it possible to assess the a pplicant's financial and 
operational capacity to complete the proposed action or work programme.  
2. The applicant must have stable and 
sufficient sources of funding to maintain his activity throughout the pe riod during which the 
action is being carried out or the year for which the grant is awarded and to participate in its funding. The applicant must have the professional competencies and qualifications required to 2. The applicant must have stable and 
sufficient sources of funding to maintain his activity throughout the pe riod during which the 
action is being carried out or the year for which the grant is awarded and to participate in its funding. The applicant must have the professional competencies and qualifications required to  
 
EN  Error! Unknown document property name.  EN complete the proposed ac tion or work programme 
unless specifically provided otherwise in the basic 
act. complete the proposed ac tion or work programme 
unless specifically provided otherwise in the basic 
act. 
3. Financial and operational capacity shall be 
verified in particular on the basis of an analysis of any of the supporting documents referred to in Article 173 and requested by the authorising officer 
responsible in the call for proposals. 3. Financial and operational capacity shall be 
verified in particular on the basis of an analysis of any of the supporting documents referred to in Article 173 and requested by the authorising officer 
responsible in the call for proposals.  
If no supporting documents were requested in the 
call for proposals and if the authorising officer 
responsible has doubts a bout the financial or 
operational capacity of app licants, he shall request 
them to provide any appropriate documents. If no supporting documents were requested in the 
call for proposals and if the authorising officer 
responsible has doubts a bout the financial or 
operational capacity of app licants, he shall request 
them to provide any appropriate documents.  
4. The verification of financial capacity in 
accordance with paragraph 3 shall not apply to natural persons in receipt of  scholarships, to public 
bodies or to the in ternational organisations referred 
to in Article 43(2). 4. The verification of financial capacity in 
accordance with paragraph 3 shall not apply to natural persons in receipt of  scholarships, to public 
bodies or to the in ternational organisations referred 
to in Article 38
 43(2) . 
The authorising officer responsible may, 
depending on his risk analysis, waive the 
obligation to verify the operational capacity of 
public bodies or international organisations 
referred to in Article 38.  Currently, the public b odies, International 
Organisations and natural persons in receipt of scholarships are exempted from the verification of the financial capacity. No waiver from the verification of the operational capacity is currently foreseen in 
the IR. However, as regards public bodies (including Member Stat es) and International 
Organisations the practice has shown that it is not always necessary verifying the operational capacity of the beneficiary. In many cases, it can be assumed that these beneficiaries have the professional competencies and qualifications required to complete the project, in particular if the project falls within the specific competences 
 
EN  Error! Unknown document property name.  EN of public body or International 
Organisation. 
 
In the case of the partnershi ps referred to in Article 
163, that verification shall be performed before the 
framework agreement is concluded. In the case of the partnershi ps referred to in Article 
163, that verification shall be performed before the 
framework agreement is concluded.  
Article 177 
Award criteria 
(Article 115(2) of the Financial Regulation) Article 177 
Award criteria 
(Article 115(2) of the Financial Regulation)  
1. The award criteria sh all be published in the 
call for proposals. 1. The award criteria sh all be published in the 
call for proposals.  
2. The award criteria shall be such as to enable 
grants to be awarded eith er to the actions which 
maximise the overall effectiveness of the Community programme which they implement or to the bodies whose work programme is designed to 
attain the same result. Those criteria shall be defined in such a way as to ensure also that the Community funds are properly managed. 2. The award criteria shall be such as to enable 
grants to be awarded eith er to the actions which 
maximise the overall effectiveness of the Community
 Union  programme which they 
implement or to the bodies whose work programme is designed to attain the same result. Those criteria shall be defined in such a way as to ensure also that the Community
 Union  funds are properly managed. 
These criteria shall be applied in such a way as to 
enable the selection of planned actions or work programmes which the Commission can be confident will comply with its objectives and priorities and guarantee the visibility of the Community financing. These criteria shall be applied in such a way as to 
enable the selection of planned actions or work programmes which the Commission can be confident will comply with its objectives and priorities and guarantee the visibility of the Community
 Union  financing.  
 
EN  Error! Unknown document property name.  EN 3. The award criteria shall be defined in such a 
way that it will be possible subsequently to carry out an evaluation. 3. The award criteria shall be defined in such a 
way that it will be possible subsequently to carry out an evaluation.  
Article 178 
Evaluation of applications and award 
(Article 116 of the Financial Regulation) Article 178 
Evaluation of applications and award 
(Article 116 of the Financial Regulation)  
1. The authorising officer responsible shall 
appoint a committee to evaluate the proposals, unless the Commission deci des otherwise in the 
framework of a specific sectoral programme. The 
authorising officer may appoint such a committee before the final date for the submission of proposals provided for in point (d) of Article 167. 1. The authorising officer responsible shall 
appoint a committee to evaluate the proposals, unless the Commission deci des otherwise in the 
framework of a specific sector i
al programme. The 
authorising officer may appoint such a committee 
before the final date for the submission of proposals 
provided for in point (d) of Article 167.  Under article 178 IR the Authorising 
Officer may nominate the members of the Evaluation Committee at the latest before 
the final date of submission of proposals. 
This level of details on timing of the committee nomination at the level of the legal Act has no justification. This question should be detailed in  an instruction note 
rather than in the legislation. Furthermore, the timing of the nomination is not mentioned in the sections covering procurement (see Articles 145 and 146 IR). 
The committee shall be made up of at least three 
persons representing at least two organisational entities of the Commission with no hierarchical link between them. To avoid any conflict of interests, those persons shall be subject  to the obligations laid 
down in Article 52 of the Financial Regulation. The committee shall be made up of at least three 
persons representing at least two organisational entities of the Commission with no hierarchical link between them. To avoid any conflict of interests, those persons shall be subject  to the obligations laid 
down in Article 52 of the Financial Regulation.  
In the representations and local units referred to in 
Article 254 and the delegate d bodies referr ed to in 
Article 160(1), if there are no separate entities, the In the representations and local units referred to in 
Article 254 and the delegate d bodies referr ed to in 
Article 160(1), if there are no separate entities, the  
 
EN  Error! Unknown document property name.  EN requirement of organisational entities with no 
hierarchical link between them shall not apply. requirement of organisational entities with no 
hierarchical link between them shall not apply. 
Outside experts may assist the committee by 
decision of the authorising officer responsible. Outside experts may assist the committee by 
decision of the authorising officer responsible.  
1a. The authorising officer responsible shall, 
where appropriate, divide the process into several procedural stages. The rules governing the process shall be announced in the call for proposals. 1a. The authorising officer responsible shall, 
where appropriate, divide the process into several procedural stages. The rules governing the process shall be announced in the call for proposals.  
Where a call for proposals specifies a two-stage 
submission procedure, only those applicants whose 
proposals satisfy the evaluati on criteria for the first 
stage shall be requested to submit a complete proposal in the second stage. Where a call for proposals specifies a two-stage 
submission procedure, only those applicants whose 
proposals satisfy the evaluati on criteria for the first 
stage shall be requested to submit a complete proposal in the second stage.  
Where a call for proposals specifies a two-stage 
evaluation procedure, onl y those proposals that 
pass the first stage, based on the evaluation against a limited set of criteria, shall go forward for further evaluation. Where a call for proposals specifies a two-stage 
evaluation procedure, onl y those proposals that 
pass the first stage, based on the evaluation against a limited set of criteria, shall go forward for further evaluation.  
The applicants whose proposals are rejected at any 
stage shall be informed in accordance with Article 116 (3) of the Financial Regulation. The applicants whose propos als are rejected at any 
stage shall be informed in accordance with Article 116 (3) of the Financial Regulation.  
Each subsequent stage of the procedure must be 
clearly distinct from the previous one. Each subsequent stage of the procedure must be 
clearly distinct from the previous one.  
The same documents and information shall not be 
required to be provided mo re than once during the The same documents and information shall not be 
required to be provided mo re than once during the  
 
EN  Error! Unknown document property name.  EN same procedure. same procedure. 
2. The evaluation committee or, where 
appropriate, the authorising officer responsible may ask an applicant to provide additional information or to clarify the supporting documents submitted in connection with the applica tion, in particular in the 
case of obvious clerical errors. 2. The evaluation committee or, where 
appropriate, the authorising officer responsible may ask an applicant to provide additional information or to clarify the supporting documents submitted in connection with the applica tion, in particular in the 
case of obvious clerical errors.  
The authorising officer shall keep appropriate 
records of contacts with applicants during the 
procedure. The authorising officer shall keep appropriate 
records of contacts with applicants during the 
procedure.  
3. Upon completion of its work, the members 
of the evaluation committee shall sign a record of all the proposals examined, containing an assessment of their quality and identifying those which may receive funding. Where necessary that record shall rank the proposals examined. 3. Upon completion of its work, the members 
of the evaluation committee shall sign a record of all the proposals examined, containing an assessment of their quality and identifying those which may receive fundi ng. Where necessary that 
record shall rank the proposals examined, provide  
recommendations on the maximum amount to 
award and possible non-substantial adjustments 
to the grant application.   
  Confirmation of practise  
The record shall be kept for future reference. Th e record shall be kept for future reference.  
4. The authorising officer responsible shall 
then take his deci sion giving at least: 
(a) the subject and the overall amount of the 
decision; 
(b) the name of the benefi ciaries, the title of the 
actions, the amounts accepted and the reasons for 4. The authorising officer responsible may ask 
an applicant to adjust it s application in the light 
of the recommendations of the evaluation 
committee. The authorisin g officer responsible 
shall keep appropriate reco rds of contacts with 
applicants during the procedure.  He/she  shall 
then take his deci sion giving at least: The wording of article 178 IR also raises the 
question of the possibility for services to discuss non-substantial aspects of the grants (adjustment of costs / content of action and work programme) between the report of the evaluation committee and the award decision. Such discussions are often 
 
EN  Error! Unknown document property name.  EN that choice, including where it is inconsistent with 
the opinion of the evaluation committee; 
(c) the names of any appl icants rejected and the 
reasons for that rejection. (a) the subject and the overall amount of the 
decision; 
(b) the name of the benefi ciaries, the title of the 
actions, the amounts accepted and the reasons for that choice, including where it is inconsistent with the opinion of the evaluation committee; 
(c) the names of any appl icants rejected and the 
reasons for that rejection. necessary as the amounts of grants proposed 
are often lower than that asked for by the applicant. This affects the budget and in some cases also the co ntent of the action. In 
other cases, the evaluation committee suggests that some of the activities foreseen 
should be modified.  
5. The provisions of paragraphs 1 to 4 shall 
not apply to beneficiar ies of grants who are 
identified in the basic act. 5. The provisions of paragraphs 1, 1a and 3 are 
not compulsory for the award of grants who are 
identified in the basic act  pursuant to  Article 168 . 
. For the cases listed in Article 168 IR where 
Calls for proposals are not mandatory 
(Urgencies, monopoly, beneficiary identifies I the basic act…) it is reasonable to assume that there won’t be systematically a selection procedure with an evaluation Committee. It is therefore proposed to allow the AO to choose the most efficient procedure. 
Article 179 
Information for applicants 
(Article 116 of the Financial Regulation) Article 179 
Information for applicants 
(Article 116 of the Financial Regulation)  
Applicants shall be informed as soon as possible 
and in any case within 15 calendar days after the award decision has been sent  to the beneficiaries. Applicants shall be informed as soon as possible 
and in any case within 15 calendar days after the award decision has been sent  to the beneficiaries.  
 
EN  Error! Unknown document property name.  EN CHAPTER  4 
PAYMENT AND CONTROL  CHAPTER  4 
PAYMENT AND CONTROL   
Article 180 
Supporting documents for payments 
(Article 117 of the Financial Regulation) Article 180 
Supporting documents for requests  for payments 
(Article 119 of the Financial Regulation) Payment request is issued by the 
Commission. 
1. For each grant, pre-financing may be split 
into several instalments. 1. For each grant, pre-financing may be split 
into several instalments in accordance with sound 
financial management .  
The payment in full of the new pre-financing 
payment shall be subject to the consumption of at least 70 % of the total am ount of any earlier pre-
financing. The payment in full of the new pre-financing 
payment shall be subject to the consumption of at least 70 % of the total amount of any earlier pre-financing.  
Where the consumption of the previous pre-
financing is less than 70 %, the amount of the new pre-financing payment sh all be reduced by the 
unused amounts of the previous pre-financing. Where the consumption of the previous pre-
financing is less than 70 %, the amount of the new pre-financing payment sh all be reduced by the 
unused amounts of the previous pre-financing.  
The statement of the bene ficiary's outlay shall be 
produced in support of any request for a new payment. The statement of the beneficiary's outlay shall be 
produced in support of any request for a new payment.  
1a. The beneficiary shall,  without prejudice to 
Article 104, certify on his honour that information contained in requests for payments is full, reliable and true. He shall also cert ify that the costs incurred 
can be considered eligib le in accordance with the 1a
. The beneficiary shall, without prejudice to 
Article 10 54, certify on his honour that information 
contained in cost statements  requests for payments  
is full, reliable and true. He shall also certify that the costs incurred can be considered eligible in Cost statement are drawn by beneficiaries, 
requests for payments are issued by the Commission. 
 
EN  Error! Unknown document property name.  EN grant agreement and that requests for payment are 
substantiated by adequa te supporting documents 
that can be checked. accordance with the grant agreement or decision  
and that cost statements  requests for payments  are 
substantiated by adequa te supporting documents 
that can be checked. 
2. A certificate on the financial statements and 
underlying accounts, produced by an approved auditor or in case of public bodies, by a competent and independent public officer, may be demanded by the authorising officer responsible in support of 
any payment on the basis of his assessment of risks. 
In the case of a grant for an action or of an operating grant, the certificate shall be attached to the request for payment. The certificate shall certify, in accordance with a methodology approved by the authoris ing officer responsible, 
that the costs declared by the beneficiary in the financial statements on which the request for payment is based are real, accurately recorded and 
eligible in accordance with the grant agreement. 2. A certificate on the financial statements and 
underlying accounts  of the action or the work 
programme , produced by an aprovedn  
approved external  auditor or in case of public 
bodies, by a competent and independent public 
officer, may be demanded by the authorising officer 
responsible in support of any payment on the basis of his assessment of risks. In the case of a grant for an action or of an operati ng grant, the certificate 
shall be attached to the cost statement
 request for 
payment . The certificate shall cer tify, in accordance 
with a methodology approved by the authorising officer responsible and on the basis of agreed-
upon procedures compliant with   international 
standards , that the costs declared by the 
beneficiary in the financial statements on which the cost statement
 request for payment  is based are 
real, accurately recorded and eligible in accordance with the grant agreement. 
In specific and duly justified cases, the 
authorising officer responsible may request the 
certificate in the form of  an opinion or other 
format in accordance with international 
standards.  Clarification 
Term "approved" restated    
 
 The possibility to  use agreed-upon 
procedures or request  an opinion from the 
auditor is introduced. 
Except in the case of lump sums and flat rate Except in the case of lump sums and flat rate 
Flat rate deleted in line with the new 
 
EN  Error! Unknown document property name.  EN financing, the certificate on the financial statements 
and underlying accounts shall be compulsory for interim payments per financial year and for payments of balances in the following cases: financing
standard scale of unit costs , the 
certificate on the financial statements and underlying accounts shall be compulsory for interim payments per financial year and for payments of balances in the following cases: definition: it is a fixed percentage of a 
category of costs. Th is category costs can 
always be audited (7% of direct costs  as 
flat rate for indirect costs) 
(a) grants for an action of EUR 750 000 or 
more, when the cumulative amounts of requests for payment is at least EUR 325 000; (a) grants for an action of EUR 750 000 or 
more, when the cumulative amounts of requests for payment is at least EUR 325 000;  
(b) operating grants of EUR 100 000 or more.  (b) operating grants of EUR 100 000 or more.   
Depending on his risks assessment, the authorising 
officer responsible may also waive the obligation to provide such certificate on the financial statements and underlying accounts in the case of: Depending on his risks assessment, the authorising 
officer responsible may also waive the obligation to provide such certificate on the financial statements and underlying accounts in the case of:  
(a) public bodies and the international 
organisations referred to in Article 43; (a) public bodies and the international 
organisations referred to in Article 38 43
;  
(b) the beneficiaries of grants in connection 
with humanitarian aid and the management of crisis situations, save in respect of payments of balances; (b) the beneficiaries of grants in connection 
with humanitarian aid, civil protection emergency 
operations and the management of crisis situations, 
save in respect of pa yments of balances; Added for clarification (crisis situations are 
mentioned). 
(c) for payments of balances, beneficiaries of 
grants in connection w ith humanitarian aid who 
have signed a partnership framework agreement, as referred to in Article 163, and who have in place a system of control offering  equivalent guarantees for 
such payments; (c) for payments of balances, beneficiaries of 
grants in connection w ith humanitarian aid who 
have signed a partnership framework agreement, as referred to in Article 163, and who have in place a system of control offering  equivalent guarantees for 
such payments;  
 
EN  Error! Unknown document property name.  EN (d) Beneficiaries of multiple grants who have 
provided independent cer tification offering 
equivalent guarantees on the control systems and methodology used to prepare their claims. (d) Beneficiaries of multiple grants who have 
provided independent cer tification offering 
equivalent guarantees on the control systems and methodology used to prepare their claims.  
In the case of an agreem ent linking the Commission 
and a number of benefici aries, the thresholds 
referred to in points (a) and (b) of the second 
subparagraph shall apply to each beneficiary. In the case of an agreem ent linking the Commission 
and a number of benefici aries, the thresholds 
referred to in points (a) and (b) of the second 
subparagraph shall apply to each beneficiary.  
 3. An operational verification from an 
independent third party approved by the 
Commission may be requested by the 
authorising officer responsib le in support of any 
payment on the basis of his assessment of risks. 
In the case of a grant for an action, the 
certificate shall, where applicable, be attached to 
the cost statement. The verification shall assess 
in accordance with a methodology approved by 
the authorising officer responsible, whether the 
output of the grant was effectively achieved in 
line with the conditions set out in the grant 
agreement or grant decision.  “Factual audits”: currently, the verification 
of grants is focused on the financial side by 
verifying the eligible costs and thus focused on the verification of inputs rather than on the verification of the outputs.  
- in the real cost regime, control of the 
execution should be more focused on the outputs (see Article 164(1)point d IR): 
- for the regimes of lump sum and standard 
scale of unit costs, ex post control shall only 
be focused on outputs. 
Therefore the "factual a udit" is a possibility 
for both regimes but is not an obligation for the authorising officer which would undermine simplification. 
In both cases, the objective of such 
verification would be to check whether the 
outputs have been achieved prior to a 
 
EN  Error! Unknown document property name.  EN payment being made. Although the 
verification of the operational side of a project should primarily be done by the Commission itself, this tool would allow externalising the verification where resources are scarce (‘cost-benefit’) or 
where professional expertise and objectivity of independent experts are needed (similar to that of an audit certificate for the 
financial side). An operational verification 
should however not be systematically 
requested, but rather used on a risk basis, depending on the risk profile of the project and the beneficiary as well as the nature and the amount of the project. 
Article 180a 
Forms of grants 
(Article 108a of the Financial Regulation) Article 180a 
Forms of grants 
(Article 108a of the Financial Regulation)  
1. Community grants in the form referred to in 
point (a) of Article 108a(1) of the Financial Regulation shall be calculated on the basis of eligible costs, which are defined as costs actually incurred by the beneficiary and subject to a preliminary budget estimate as submitted with the proposal and included in the grant decision or 
agreement. 1. Community g
 Grants in the form referred to 
in point (a) and (c)  of Article 108a of the Financial 
Regulation shall be calculated on the basis of eligible costs, which are defined as costs actually incurred by the beneficiary and subject to a preliminary budget estimate as submitted with the proposal and included in the grant decision or 
agreement. Initial wording restated 
2. Lump sums as referred to in point (b) of 
Article 108a(1) of the Fi nancial Regulation shall 2. Without prejudice to the principle of co-
financing,  lLump sums as referred to in point (b) of Added  : "all or" to confirm that a lump sum 
can be allocated to cover the total eligible 
 
EN  Error! Unknown document property name.  EN cover in global terms certain costs necessary for 
carrying out an action, or  for the annual operation 
of a beneficiary, in accord ance with the terms of the 
agreement and on the basis of an estimate. Article 108a of the Financ ial Regulation shall cover 
in global terms all or  certain estimated eligible 
costs necessary for carrying out an action, or for the 
annual operation of a bene ficiary, in accordance 
with the terms of the agreement and on the basis of an estimate. costs of an action or work programme. Non-
profit rule and co-fin ancing rule shall be 
respected at this stage by co-financing provided by the bene ficiary or other 
partners, in kind or in  ineligible costs. 
3. Flat-rate financing as referred to in point (c) 
of Article 108a(1) of the Financial Regulation shall cover specific categories of expenditure which are 
clearly identified in adva nce either by applying a 
percentage fixed in advan ce or by the application of 
a standard scale-of-unit cost. 3.
 Flat-rate financing as r eferred to in point (c) 
of Article 108a(1) of the Financial Regulation shall 
cover specific categories of expenditure which are 
clearly identified in adva nce either by applying a 
percentage fixed in advance. or by the application 
of a standard scale -of-unit cost.  Moved to § 4 
 
EN  Error! Unknown document property name.  EN  3. Standard scale of unit costs as referred to in 
point (bb) of Article 108a of the Financial 
Regulation shall cover specific categories of 
eligible costs which are clearly identified in 
advance by applying a fi xed amount per unit 
determined in advance . 
 Standard scale of unit costs is a subcategory 
of lump sums (per category of cost and per unit) more than a subc ategory of flat rate 
(which shall remain a rate).  
Both the amount and the unit are fixed in 
advanced. 
This constitutes the tool to accept average 
personnel costs  based on the internal rules 
of a beneficiary, as far as these rules are 
internally applied by the beneficiary for 
similar non-funded pr ojects (no bias 
detrimental to the Commission). Ex-ante verification of non-prof it and co-financing 
applies.  
 4. Flat-rate financing as referred to in point 
(c) of Article 108a of the Financial Regulation 
shall cover specific categories of expenditure 
which are clearly identifi ed in advance either by 
applying a percentage fixed in advance. or by 
the application of a standard scale -of-unit cost.  Moved from §3 
 
Standard scale-of-unit cost are now qualified as a subcategory of lump sums. 
Article 181 
Lump sums and flat-rate financing 
(Article 108a of the Financial Regulation) Article 181 
Lump sums, standard scale of unit costs
 and flat-
rate financing 
(Article 108a of the Financial Regulation)  
 
EN  Error! Unknown document property name.  EN 1. The Commission may, by way of decision, 
authorise the use of the following: 1. The Commission may, by way of decision, 
authorise the use of the following:  
1. Without prejudice to th e provisions of the basic 
act, the use of lump sums, standard scales of unit costs or flat-rate financi ng shall be authorised by 
way of decision of the Commission ensuring the 
respect of the principle of equal treatment of beneficiaries for the same category of actions or work programmes. 
 
Where the maximum amount per grant does not exceed EUR 50 000, the authorisation may be given by the competent authorising officer.  2. The authorisation shall at least be supported by 
the following:  a) justification of the appropriateness of these forms of financing with rega rd to the nature of the 
supported actions or work pr ogrammes as we ll as to 
the risks of irregularities and fraud  and costs of 
control;  b) identification of the costs or categories of costs covered by lump sums, standa rd scales of unit costs 
or flat-rate financing, whic h shall exclude ineligible 
costs according to the applicable Union rules;  c) description of the me thods to determine lump 
sums, standard scales of unit costs or flat-rate financing, which shall set conditions to reasonably  
 The AOSD should have the possibility to 1) 
decide lump sums within the framework agreed by the Commission - or by the AOD for scheme awarding  grants which are 
under 50.000 €. 2) adjust
 lump sums 
schemes 3) within the framework approved, decide
 personalised lump sums  on the basis 
of a provisional budget presented by the 
applicant and taking due account of the 
equal treatment principle (same methodology may not lead to same amounts because projects may be different. 
Profit shall only be verified ex-ante when 
determining the amount of the lump sums. In principle, Ex-post control cannot challenge the amounts of lump sums agreed after the signature of the agreement/decision.  
   
 
 
EN  Error! Unknown document property name.  EN ensure compliance with the no-profit and co-
financing rules and avoidance of double funding of costs. These methods shall be based:  
i) either on statistical data or similar objective means,  ii) or on a benefi ciary-by-beneficiary 
approach, by referen ce to certified or 
auditable historical data of the beneficiary 
or to its usual cost accounting practices.  
3. Where recourse to th e usual cost accounting 
practices of the benefici ary is authorised, the 
competent authorising officer may assess compliance of these practices with the conditions referred to in paragraph 2 ex ante or through an 
appropriate strategy for ex post controls.  If the compliance of th e usual cost accounting 
practices of the benefici ary with the conditions 
referred to in paragraph 2 has been established ex ante,  the amounts of lump  sums, scales of unit 
costs or flat-rate financing determined by application of these practices shall not be challenged by ex post controls.  The competent authorising officer may consider that the usual cost acc ounting practices of the 
beneficiary are compliant  with the conditions 
referred to in paragraph 2 if they are accepted by the national authorities under comparable funding  
 Using the 'ad personam' standard
 is a 
common source of det ected errors. When 
comparing any ad personam rate to an 
average , there will nearly always be a 
'deviation' greater than 2% (often much greater), which is thus regarded as significant by the ECA in assessing the 
regularity of a transaction. 
For the purpose of clarification, the 
assimilation of average personnel costs to real costs is not reta ined: real costs should 
remain costs actually incurred. An average is part of a lump sum approach.  
 The AO shall then use scale of unit costs 
per categories of staff (unit) and determine as a lump-sums-per-unit (standard scale of unit cost) the average "gross salary" per category of staff.  
 
EN  Error! Unknown document property name.  EN schemes. 
  
 
(a) one or more lump sums with a unit value of 
EUR 25 000 or less, to cove r one or more different 
categories of eligible costs; (a)
 one or more lump sums with a unit value of 
EUR 25 000 or less, to cove r one or more different 
categories of eligible costs;   
(b) flat-rate financing, in  particular on the basis 
of the scale annexed to the Staff Regulations or as 
approved each year by the Commission for the 
accommodations costs and daily allowances for mission costs. (b)
 flat-rate financing, in particular on the basis 
of the scale annexed to the Staff Regulations or as 
approved each year by the Commission for the 
accommodations costs and daily allowances fo r 
mission costs.   
That decision shall determine the maximum amount 
for the total of such fund ing authorised, by grant or 
type of grant. That decision shall determine the maximum amount 
for the total of such fund ing authorised, by grant or 
type of grant.   
2. Where appropriate, lump sums exceeding a 
unit value of EUR 25 000 sha ll be authorised in the 
basic act which shall la y down the conditions of 
award and the maximum amounts. 2. Where appropriate, lump sums exceeding a 
unit value of EUR 25 000 shall be a uthorised in the 
basic act which shall la y down the conditions of 
award and the maximum amounts .  
Those amounts shall be ad justed every two years by 
the Commission on the basis of statistical data and 
similar objective means as referred to in Article 165(2). Those amounts shall be ad justed every two years by 
the Commission on the basis of statistical data and 
similar objective means as referred to in Article 
165(2).   
   
3. The grant decision or agreement may 
authorise, in the form of  flat-rates, funding of the 3 4. The grant decision or agreement may authorise 
or impose , in the form of flat -rates, funding of the Clarification: standard agreements impose  
the flat rate to beneficiaries (sole option 
 
EN  Error! Unknown document property name.  EN beneficiary’s indirect costs up to a maximum of 
7 % of total eligible direct  costs for the action, save 
where the beneficiary is in receipt of an operating grant financed from the Community budget. The 7 % ceiling may be exceeded by reasoned decision of the Commission. beneficiary’s indirect costs up to a maximum of 
7 % of total eligible direct  costs for the action, save 
where the beneficiary is in receipt of an operating grant financed from the Community
 Union  budget. 
The 7 % ceiling may be  exceeded by reasoned 
decision of the Commission. given by AOSD to fund  indirect costs).. 
 5. The authorisation shall apply for the duration of 
the programme. It may be reviewed if substantial 
changes are needed. Data and amounts shall be 
assessed periodically and, when appropriate, lump 
sums, standard scales of unit costs or flat-rate financing shall be adjusted.   
4. The grant decision or agreement shall 
contain all necessary provisi ons in order to verify 
that the conditions for the award of lump-sums or flat-rate financing ha ve been respected. 6. 
 4. The grant decision or agreement shall 
contain all necessary provisi ons in order to verify 
that the conditions for the award of lump-sums or standard scale of unit cost s have been respected.  
Costs covered by a flat rate financing can always be 
controlled on a real cost basis. The Commission and ECA shall always 
have the right of access  to real costs but the 
Commission cannot, on this basis, reduce the amounts of lump sums agreed to align them on real costs. The information will be used for adjusting future lump sums. 
 
 
EN  Error! Unknown document property name.  EN  6. Where the ex post control reveals that the 
generating event has not occurred and an undue 
payment has been made to the beneficiary on a lump sum, standard scale of unit costs or flat-rate 
financing, the Commission shall be entitled to recover up to the amount of the grant lump sum, 
standard scale of unit costs or flat -rate financing  
without prejudice to the sanctions and penalties 
referred to in Article 96 of  the Financial regulation. Moved from Article 165 IR 
Article 182 
Advance guarantee 
(Article 118 of the Financial Regulation) Article 182 
Pre-financing  Advance  guarantee 
(Article 118 of the Financial Regulation)  
1. In order to limit the financial risks 
connected with the paymen t of pre-financing, the 
authorising officer responsible may, on the basis of his risks assessment either require the beneficiary to lodge a guarantee in advance, for up to the same amount as the pre-financing, or split the payment into several instalments. 1. In order to limit the financial risks 
connected with the paymen t of pre-financing, the 
authorising officer responsible may, on the basis of his risks assessment  requi re the beneficiary to 
lodge a guarantee in advance, for up to the same amount as the pre-financing, or split the payment into several instalments.  
   
However, for grants with a value of less than or 
equal to EUR 10 000, the authorising officer responsible may require th e beneficiary to lodge a 
guarantee in advance only in duly substantiated 
cases. However, for grants with a value of less than or 
equal to EUR 10 000, the authorising officer 
responsible may require th e beneficiary to lodge a 
guarantee in advance only in duly substantiated 
cases.  The decision to request bank guarantee shall 
be taken by the AO (no systematic obligation). 
Such a guarantee may also be required by the 
authorising officer resp onsible, depending on his 
risks assessment, in the light of the method of Such a guarantee may also be required by the 
authorising officer resp onsible, depending on his 
risks assessm ent, in the light of the method of  
 
EN  Error! Unknown document property name.  EN funding laid down in the grant agreement. funding laid down in the grant agreement.  
Whenever a guarantee is required, it is subject to 
the assessment and acceptance of the authorising officer responsible. 2. 
Whenever a guarantee is required, it is subject to 
the assessment and acceptance of the authorising officer responsible.  
2. Where pre-financing represents over 80 % 
of the total amount of the grant and provided it exceeds EUR 60 000, a guarantee shall be required. 2.
 Where pre -financing represents over 80 % 
of the total amount of the grant and provided it 
exceeds EUR 60 000, a guarantee shall be required.   
For NGOs operating in the field of external action, 
that guarantee shall be de manded in respect of pre-
financing exceeding EUR 1 000 000 or 
representing over 90 % of the total amount of the 
grant. For NGOs operating in the field of external action, 
that guarantee shall be de manded in respect of pre -
financing exceeding EUR 1 000 000 or 
representing over 90 % of the total amount of the 
grant.   
The guarantee shall be valid for a period 
sufficiently long to allow it to be activated. The guarantee shall be valid for a period 
sufficiently long to allow it to be activated.  
3. The guarantee shall be provided by an 
approved bank or financial institution established in one of the Member States. When the beneficiary is established in a third country, the authorising officer responsible may agree that a bank or 
financial institution established in that third country may provide the guarantee if  he considers that the 
bank or financial institution offers equivalent security and characteristics as those offered by a bank or financial institution established in a Member State. 3. The guarantee shall be provided by an 
approved bank or financial institution established in one of the Member States. When the beneficiary is established in a third country, the authorising officer responsible may agree that a bank or 
financial institution established in that third country may provide the guarantee if  he considers that the 
bank or financial institution offers equivalent security and characteristics as those offered by a bank or financial institution established in a Member State.  
At the request of the beneficiary, that guarantee At the request of the beneficiary, that guarantee  
 
EN  Error! Unknown document property name.  EN may be replaced by a joint and several guarantee by 
a third party or by the irrevocable and unconditional joint guarantee of the beneficiaries of 
an action who are partie s to the same grant 
agreement, after acceptance by the authorising officer responsible.  may be replaced by a joint and several guarantee by 
a third party or by the irrevocable and unconditional joint guarantee of the beneficiaries of 
an action who are partie s to the same grant 
agreement, after acceptance by the authorising officer responsible.  
The guarantee shall be denominated in euro. The guarantee shall be denominated in euro.  It shall have the effect  of making the bank or 
financial institution, third party or the other 
beneficiaries stand as irrevocable collateral 
security, or first-call guarantor of the grant 
beneficiary's obligations. It shall have the effect  of making the bank or 
financial institution, third party or the other 
beneficiaries stand as irrevocable collateral 
security, or first-call guarantor of the grant 
beneficiary's obligations.  
4. The guarantee shall be released as the pre-
financing is gradually cleared against interim 
payments or payments of balances to the beneficiary in accordance with the conditions laid down in the grant agreement. 4. The guarantee may 
shall be released as the pre-
financing is gradually cleared against interim 
payments or payments of balances to the beneficiary or
 in accordance with the conditions 
laid down in the grant agreement. Changing bank guarantees every time the 
pre-financing is clear ed creates unnecessary 
work for the services and for beneficiaries. It is proposed to let the AO estimate if this is relevant for the supported project. 
In the cases referred to in the second subparagraph 
of paragraph 1, it shall be released only upon 
payment of the balance. In the cases referred to in the second subparagraph 
of paragraph 1, it shall be released only upon 
payment of the balance.   
5. The authorising officer responsible may 
waive the obligation laid down in paragraph 2 for 
public-sector bodies a nd the international 
organisations referred to in Article 43. 5. The authorising officer responsible may 
waive the obligation laid down in paragraph 2 for 
public -sector bodies and the international 
organisations referred to in Article 43.   
The authorising officer responsible may also 
exempt from that obligati on beneficiaries who have The authorising officer responsible may also 
exempt from that obligati on beneficiaries who have  
 
EN  Error! Unknown document property name.  EN concluded a framework partnership agreement 
under Article 163. concluded a framework partnership agreement 
under Article 163.  
Article 183 
Suspension and reduction of grants 
(Article 119 of the Financial Regulation) Article 183 
Suspension and reduction of grants 
(Article 119 of the Financial Regulation)  
The authorising officer responsible shall suspend 
payments in the following cases:  A framework procedure is detailed for 
suspension of the grant agreement (protection of beneficiaries). 
(a) where the agreed action or work programme 
is not carried out at all,  or is not carried out 
properly, in full or on time; 1. The execution of the grant agreement or 
decision or the participat ion of a beneficiary in 
their execution may be suspended in order to 
verify whether presumed substantial errors or 
irregularities or fraud or breach of obligations 
have actually occur red. If they are not 
confirmed, execution shall resume as soon as 
possible.  (a) where the agreed action or work 
programme is not carried out at all, or is not carried 
out properly, in full or on time;  Reference deleted : this provision is an IR 
of Article 119 FR  
(b) where amounts exceeding the financing 
ceilings set in the agreement have been paid; 2. Where the agreed action or work programme 
is not carried out or is not carried out properly, 
the authorising officer responsible shall, after 
giving the beneficiary the opportunity to present 
his comments, either reduce or recover the grant 
in proportion, depending on the stage of the 
procedure.  
 (b) where amounts exceeding the financing 
ceilings set in the agreement have been p aid; Restructuring: substance of last paragraph 
of this Article. 
 
EN  Error! Unknown document property name.  EN (c) where the amounts paid in accordance with 
the grant agreement are higher than the real costs incurred by the beneficiary for the action or where the operating budget re veals a surplus ex post . 3. In case of recurrent errors or irregularities 
attributable to the beneficiary and having an 
impact on a number of grants awarded to him 
under similar conditions, the authorising officer 
may proceed to financial corrections for all the 
grants concerned and within the audit period 
defined in the grant agreements or decisions, by 
either reducing the grants or recovering from 
the beneficiary.   
The amount of financial corrections to be made 
shall be determined wherever possible and 
practicable on the basis of actual costs unduly 
declared as eligible for each grant concerned, 
having regard to the principle of 
proportionality.   
Where it is not possible or practicable to 
quantify the amount of ineligible costs precisely, 
the authorising officer responsible may base 
financial corrections on extrapolation or a flat 
rate, having regard to the principle of 
proportionality. The correction shall be made 
after an adversarial procedure.  
(c) where the amounts paid in accordance with 
the grant agreement are higher t han the real costs 
incurred by the beneficiary for the action or where 
the operating budget re veals a surplus ex post . Currently, each grant agreement is strictly 
separated from the others even if the beneficiary is a multi-beneficiary. 
Currently, there is no legal base in the 
FR/IR that allows the Commission to suspend its payments for non-audited projects when ex post controls find recurrent errors. This possibility is currently only foreseen in Artic le II.16.2 of the model 
grant agreement adopted by the 
Commission. 
In order to have a legal base for the 
suspension of payments of non-audited projects, this possibil ity should be included 
in Article 183 IR  
Guaranties are inserted: proportionality; 
only files that can still be audited under the agreement (5 year period from last payment), contradictory procedure. 
 
Depending on the stage reached in the procedure, 
the authorising officer shall, after giving the Depending on the stage reached in the procedure, 
the authorising officer shall, after giving the  
Restructuring: substance moved to 
 
EN  Error! Unknown document property name.  EN beneficiary or benefici aries the opportunity to 
present their comments, either reduce the grant or demand reimbursement pro rata by the beneficiary or beneficiaries. beneficiary or benefici aries the opportunity to 
present their comments, either reduce the gran t or 
demand reimbursement pro rata by the beneficiary 
or beneficiaries.  paragraph 3 
CHAPTER  5 
IMPLEMENTATION  CHAPTER  5 
IMPLEMENTATION   
Article 184 
Implementation contracts 
(Article 120 of the Financial Regulation) Article 184 
Implementation contracts 
(Article 120 of the Financial Regulation)  
1. Without prejudice to the application of the 
Directive 2004/18/EC, where implementation of the assisted actions requires the award of procurement 
contracts, beneficiaries of  grants shall award the 
contract to the tender offering best value for money, that is to say, to th e tender offering the best 
price-quality ratio, while ta king care  to avoid any 
conflict of interests. 1. Without prejudice to the application of the 
Directive 2004/18/EC, where implementation of the assisted actions requires the award of procurement 
contracts, beneficiaries of  grants shall award the 
contract to the tender offering best value for money, that is to say, to th e tender offering the best 
price-quality ratio or, as appropriate, to the tender 
offering the lowest price, while taking care to avoid any conflict of interests.  
2. Where implementation of the assisted 
actions requires the award of a procurement contract with a value of more than EUR 60 000, , the authorising officer responsible may require beneficiaries to abide by sp ecial rules in addition to 
those referred to in paragraph 1. 2. Where implementation of the assisted 
actions requires the award of a procurement contract with a value of more than EUR 60 000,,
 
the authorising officer responsible may require beneficiaries to abide by sp ecial rules in addition to 
those referred to in paragraph 1.  
Those special rules shall be based on rules 
contained in the Financial Regulation and Those special rules shall be based on rules 
contained in the Financial Regulation and  
 
EN  Error! Unknown document property name.  EN determined with due regard for the value of the 
contracts concerned, the relative size of the Community contribution in relation to the total cost of the action and the risk. Such special rules shall be included in the grant decision or agreement. determined with due regard for the value of the 
contracts concerned, the relative size of the Community
 Union  contribution in relation to the 
total cost of the action and the risk. Such special rules shall be included in the grant decision or agreement. 
Article 184a 
Financial support to third parties 
(Article 120(2) of the Financial Regulation) Article 184a 
Financial support to third parties 
(Article 120(2) of the Financial Regulation)  
1. Provided the objectives  or results to be 
obtained are sufficiently detailed in the conditions referred to in Article 120( 2)(b) of the Financial 
Regulation, the margin of discretion may be considered to be exhausted if the grant decision or 
agreement also specifies: 1.
 Provided the objectives or results to be 
obtained are sufficiently detailed in the conditions referred to in Article 120(2)(b) 
of the Financial 
Regulation, the margin of discretion may be considered to be exhausted if the grant decision or 
agreement also specifies: A unique regime is provided for authorised 
cascading grants as far as the redistribution concerned low value sub-grants and that the key elements of the awarding process is controlled by the Commission and laid down in the agreement/ decision. 
(a) the minimum and maximum amounts of 
financial support that can be  paid to a third party 
and criteria for determining the exact amount; (a) the minimum and
 maximum amounts  of 
financial support that can be  paid to a third party 
which shall not exceed Euro 50,000 and the 
criteria for determining the exact amount; The global threshold limiting the amount 
redistributed is delete d, as it is not possible 
to find an adequate threshold neither in terms of percentage of the grant given nor in 
terms of amount. This maximum amount is left to the AO.  
(b) the different types of activity that may 
receive such financial s upport, on the basis of a 
fixed list. (b) the different types of activity that may 
receive such financial s upport, on the basis of a 
fixed list;  
(b) the different types of activity that may 
receive such financial s upport, on the basis of a (c) the definition of the persons or categories 
of persons which may receive such financial  
 
EN  Error! Unknown document property name.  EN fixed list. support and the criteria to award it ; 
(b) the different types of activity that may 
receive such financial s upport, on the basis of a 
fixed list. (d) the procedures for awarding this 
financial support.  As the Commission will draft the 
agreement, the principles of the FR will be respected. 
2. For the purpose of Article 120(2)(c) of the 
Financial Regulation, the maximum amount of financial support that may be paid to third parties by a beneficiary shall be EUR 100 000, with a maximum of EUR 10 000 per each third party. 2.
 For the purpose of Article 120(2)(c) of the 
Financial Regulation, the maximum amount of 
financial support that may be paid to third parties 
by a beneficiary shall be EUR  100 000, with a 
maximum of EUR  10 000 per each third party.   
 )  
   
 
EN  Error! Unknown document property name.  EN TITLE  VII 
PRESENTATION  OF THE  ACCOUNTS  
AND  ACCOUNTING TITLE  VII 
PRESENTATION  OF THE  ACCOUNTS  
AND  ACCOUNTING  
CHAPTER  1 
PRESENTATION OF THE ACCOUNTS  CHAPTER  1 
PRESENTATION OF THE ACCOUNTS   
Article 185 
Report on budgetary an d financial management 
during the year 
(Article 122 of the Financial Regulation) Article 185 
Report on budgetary an d financial management 
during the year 
(Article 122 of the Financial Regulation)  
The report on budgetary and financial management 
during the year shall give an accurate description 
of: The report on budgetary and financial management 
during the year shall give an accurate description 
of:  
(a) the achievement of the objectives for the 
year, in accordance with the principle of sound 
financial management; (a) the achievement of the objectives for the 
year, in accordance with the principle of sound 
financial management;  
(b) the financial situation and the events which 
have had a significant infl uence on activities during 
the year. (b) the financial situation and the events which 
have had a significant infl uence on activities during 
the year.  
The report on budgetary and financial management 
shall be separate from the reports on implementation of the budget referred to in Article 
121 of the Financial Regulation. The report on budgetary and financial management 
shall be separate from the reports on implementation of the budget referred to in Article 
121 of the Financial Regulation.  
 
EN  Error! Unknown document property name.  EN Article 186 
Exception to the accounting principles 
(Article 124 of the Financial Regulation) Article 186 
Exception to the accounting principles 
(Article 124 of the Financial Regulation)  
Where, in a specific case, the accounting officers 
consider that an exception should be made to the content of one of the accounting principles defined in Articles 187 to 1941, that  exception shall be duly 
substantiated and reported  in the annex to the 
financial statements referred to in Article 203. Where, in a specific case, the accounting officers 
consider that an exception should be made to the content of one of the accounting principles defined in Articles 187 to 1941, that  exception shall be duly 
substantiated and reported  in the annex to the 
financial statements referred to in Article 203.  
Article 187 
Going-concern principle 
(Article 124 of the Financial Regulation) Article 187 
Going-concern principle 
(Article 124 of the Financial Regulation)  
1. The going-concern principle means that for 
the purposes of preparing the financial statements, the institutions and the bodies  referred to in Article 
121 of the Financial Regulation shall be deemed to be established for an indefinite duration. 1. The going-concern principle means that for 
the purposes of preparing the financial statements, the institutions and the bodies  referred to in Article 
121 of the Financial Regulation shall be deemed to be established for an indefinite duration.  
2. Where there are object ive indications that 
an institution or a body referre d to in Article 121 of 
the Financial Regulation is to cease its activities, the accounting officer shall present that information in the annex, indicating the reasons. The accounting officer shall apply the acc ounting rules with a view 
to determining the liquidation value of the institution or body concerned. 2. Where there are object ive indications that 
an institution or a body referre d to in Article 121 of 
the Financial Regulation is to cease its activities, the accounting officer shall present that information in the annex, indicating the reasons. The accounting officer shall apply the acc ounting rules with a view 
to determining the liquidation value of the institution or body concerned.  
 
EN  Error! Unknown document property name.  EN Article 188 
Principle of prudence 
(Article 124 of the Financial Regulation) Article 188 
Principle of prudence 
(Article 124 of the Financial Regulation)  
The principle of prudence means that assets and 
income shall not be overstated and liabilities and charges shall not be unde rstated. However, the 
principle of prudence does not allow the creation of 
hidden reserves or undue provisions. The principle of prudence means that assets and 
income shall not be overstated and liabilities and charges shall not be unde rstated. However, the 
principle of prudence does not allow the creation of 
hidden reserves or undue provisions.  
Article 189 
Principle of consistent accounting methods 
(Article 124 of the Financial Regulation) Article 189 
Principle of consistency of preparation  consistent 
accounting methods  
(Article 124 of the Financial Regulation) In line with Article 124 FR. 
1. The principle of consistent accounting 
methods means that the structure of the components of the financial statements and the accounting methods and valuation rules may not be changed from one year to the next. 1. The principle of consistent accounting 
methods means that the structure of the components of the financial statements and the accounting methods and valuation rules may not be changed from one year to the next.  
2. The Commission's accounting officer may 
not depart from the principle of consistent accounting methods other than in exceptional circumstances, in particular: 2. The Commission's accounting officer may 
not depart from the principle of consistent accounting methods other than in exceptional circumstances, in particular:  
(a) in the event of a significant change in the 
nature of the entity's operations; (a) in the event of a significant change in the 
nature of the entity's operations;  
(b) where the change made is for the sake of a (b ) where the change made is for the sake of a  
 
EN  Error! Unknown document property name.  EN more appropriate presentation of the accounting 
operations. more appropriate presenta tion of the accounting 
operations. 
Article 190 
Principle of comparability of information 
(Article 124 of the Financial Regulation) Article 190 
Principle of comparative comparability of  
information 
(Article 124 of the Financial Regulation) In line with Article 124 FR. 
1. The principle of comparability of 
information means that for each item the financial statements shall also show the amount of the corresponding item the previous year. 1. The principle of comparability of 
information means that for each item the financial statements shall also show the amount of the corresponding item the previous year.  
2. Where, pursuant to paragraph 1, the 
presentation or the cla ssification of one of the 
components of the financial statements is changed, the corresponding amounts for the previous year shall be made comparable and reclassified. 2. Where, pursuant to paragraph 1, the 
presentation or the cla ssification of one of the 
components of the financial statements is changed, the corresponding amounts for the previous year shall be made comparable and reclassified.  
Where it is impossible to recl assify items, this shall 
be explained in the annex referred to in Article 203. Where it is impossible to recl assify items, this shall 
be explained in the annex referred to in Article 203.  
Article 191 
Materiality principle 
(Article 124 of the Financial Regulation) Article 191 
Materiality and aggregation principle 
(Article 124 of the Financial Regulation) In line with Article 124 FR. 
1. The materiality principle means that all 
operations which are of significance for the information sought shall be taken into account in the financial statements. Materiality shall be 1. The materiality principle means that all 
operations which are of significance for the information sought shall be taken into account in the financial statements. Materiality shall be  
 
EN  Error! Unknown document property name.  EN assessed in particular by re ference to the nature of 
the transaction or the amount. assessed in particular by re ference to the nature of 
the transaction or the amount. 
2. Transactions may be aggregated where: 2. Transactions may be aggregated where:  
(a) the transactions are identical in nature, even 
if the amounts are large; (a) the transactions are identical in nature, even 
if the amounts are large;  
(b) the amounts are negligible; (b ) the amounts are negligible;  
(c) aggregation makes for clarity in the 
financial statements. (c) aggregation makes for clarity in the 
financial statements.  
Article 192 
No-netting principle 
(Article 124 of the Financial Regulation) Article 192 
No-netting principle 
(Article 124 of the Financial Regulation) In line with Article 124 FR. 
The no-netting principle m eans that receivables and 
debts may not be offset against each other, nor may charges and income, save where charges and income derive from the same transaction, from similar transactions or from hedging operations and provided that they are no t individually material. The no-netting principle m eans that receivables and 
debts may not be offset against each other, nor may charges and income, save where charges and income derive from the same transaction, from similar transactions or from hedging operations and provided that they are no t individually material.  
Article 193 
Principle of real ity over appearance 
(Article 124 of the Financial Regulation) Article 193 
Principle of substance over form reality over 
appearance  
(Article 124 of the Financial Regulation) In line with Article 124 FR. 
The principle of reality over appearance means that 
accounting events recorded in the financial The principle of reality  substance  over form  
appearance  means that accounting events recorded  
 
EN  Error! Unknown document property name.  EN statements shall be presented by reference to their 
economic nature. in the financial statements shall be presented by 
reference to their economic nature. 
Article 194 
Accrual-based accounting principles 
(Article 125 of the Financial Regulation) Article 194 
Accrual-based accounting principles 
(Article 125 of the Financial Regulation)  
1. The accrual-based accounting principle means 
that transactions and events shall be entered in the accounts when they occur and not when amounts are actually paid or r ecovered. They shall be 
booked to the financial year s to which they relate. 1. The accrual-based accounting principle means 
that transactions and other events shall be  shall be  
recognised and entered into the accounts when 
they occur and not when amounts are actually paid 
or recovered  cash or its equivalent is received or 
paid.  
They shall be booked to the financial years to 
which they relate.  
Transactions and events shall be entered in the 
accounts and recognised in the financial 
statements of the periods to which they relate. 
The elements recognised under accrual 
accounting shall mean assets, liabilities, net 
assets or equity, revenue and expenses.  Textual improvements and clarifications of 
the principle of accounting on accrual basis suggested by IPSAS's rules. 
2. The accounting methods provided for in Article 
133 of the Financial Regulation shall specify the obligating event for the entry of each transaction in the accounts. 2. The accounting methods provided for in Article 
133 of the Financial Regulation shall specify the obligating event for the entry of each transaction in the accounts.  
Article 199 
Economic outturn account Article 199 
Statement of financial performance Economic  
 
EN  Error! Unknown document property name.  EN (Article 126 of the Financial Regulation) outturn account 
(Article 126 of the Financial Regulation) 
The economic outturn account shall show the 
income and charges for the year, classified according to their nature. The statement of financial performance
 
economic outturn account shall show the income 
and charges for the year, classified according to their nature. Modification based upon IPSAS's rules. 
Article 201 
Cash flow table 
(Article 126 of the Financial Regulation) Article 201 
Cash flow statement table 
 (Article 126 of the Financial Regulation)  
The cash flow table shall show treasury 
movements. 
The treasury shall be made up of the following: (a) cash in hand; (b) bank accounts and deposits payable on 
demand; and 
(c) other disposable asse ts which can quickly be 
converted to cash and whose value is stable. The cash flow statement 
table  shall show treasury 
movements.  
The treasury shall be made up of the following: (a) cash in hand; (b) bank accounts and deposits payable on 
demand; and 
(c) other disposable asse ts which can quickly be 
converted to cash and whose value is stable. Modification based upon IPSAS's rules. 
Article 203 
Annex to the financial statements 
(Article 126 of the Financial Regulation) Article 203 
Annex  Notes to the financial statements 
(Article 126 of the Financial Regulation)  
 
EN  Error! Unknown document property name.  EN The annex referred to in Article 126 of the 
Financial Regulation shall fo rm an integral part of 
the financial statements. It shall contain at least the following information: The annex
 notes referred to in Article 126 of the 
Financial Regulation shall fo rm an integral part of 
the financial statements. It shall contain at least the following information: Modification based upon IPSAS's rules. 
(
A) ACCOUNTING PRINCIPLES , RULES AND  
METHODS ; 
 (A) ACCOUNTING PRINCIPLES , RULES AND  
METHODS ; 
  
b) explanatory notes,  supplying additional 
information not contained in the body of the 
financial statements which is necessary for an 
accurate picture;  b) explanatory notes,  supplying additional 
information not contained in the body of the 
financial statements which is necessary for an 
accurate picture;   
(c) off-balance-sheet commitments showing entitlements and obligations in the balance sheet which could have a materi al impact on the assets 
and liabilities, the financial situation or the result of 
the entity concerned. (c) off-balance-sheet commitments showing 
entitlements and obligations in the balance sheet which could have a materi al impact on the assets 
and liabilities, the financial situation or the result of 
the entity concerned.  
Article 204 
Explanatory notes 
(Article 126 of the Financial Regulation) Article 204 
Explanatory notes 
(Article 126 of the Financial Regulation)  
The explanatory notes shall be presented with cross 
references to the items in the financial statements to which they relate and in the same order of 
presentation. The explanatory notes shall be presented with cross 
references to the items in the financial statements to which they relate and in the same order of 
presentation.  
 
EN  Error! Unknown document property name.  EN Article 205 
Budgetary outturn account 
(Article 127 of the Financial Regulation) Article 205 
Budgetary outturn  account s 
(Article 127 of the Financial Regulation) In line with Article 127 F.R. 
1. The budgetary outturn account shall 
contain: 1. The budgetary outturn  account s shall 
contain:  
(a) information on revenue comprising: (a ) information on revenue comprising:  
(i) changes in the revenue estimates in the 
budget; (i) changes in the revenue estimates in the 
budget;  
(ii) the revenue outturn; (ii) the revenue outturn;  
(iii) entitlements established; (iii) entitlements established;  
(b) information showing changes in the total 
commitment and payment appropriations available; (b) information showing changes in the total 
commitment and payment appropriations available;  
(c) information showing the use made of the 
total commitment and payment appropriations available; (c) information showing the use made of the 
total commitment and payment appropriations available;  
(d) information showing commitments 
outstanding, those carried over from the previous year and those made during the year. (d) information showing commitments 
outstanding, those carried over from the previous year and those made during the year.  
2. As regards information on revenue, a 
statement shall also be a ttached showing, for each 
Member State, the brea kdown of amounts of own 
resources still to be recovered at the end of the 2. As regards information on revenue, a 
statement shall also be a ttached showing, for each 
Member State, the brea kdown of amounts of own 
resources still to be recovered at the end of the  
 
EN  Error! Unknown document property name.  EN financial year and covered by a recovery order. financial year and covered by a recovery order. 
 Article 206 bis  
Modalités de transmission des comptes  
(Article 129 of the Financial Regulation)   
 Provisional accounts and the final accounts 
referred to in Articles 128 and 129 of the 
Financial Regulation may be sent by electronic 
means.  Current practise about communication 
between institution's accounting officers and agencies. 
CHAPTER  2 
(CHAPTER 3 OF THE FINANCIAL 
REGULATION ) 
ACCOUNTING  CHAPTER  2 
(CHAPTER 3 OF THE FINANCIAL 
REGULATION ) 
ACCOUNTING   
SECTION 1 
ORGANISATION OF THE ACCOUNTS  SECTION 1 
ORGANISATION OF THE ACCOUNTS   
Article 207 
Organisation of the accounts 
(Article 132 of the Financial Regulation) Article 207 
Organisation of the accounts 
(Article 132 of the Financial Regulation)  
1. The accounting officer of each institution 
and body referred to in Artic le 121 of the Financial 
Regulation shall draw up and keep updated documents describing the organisation of the accounts and accounting procedures of his 1. The accounting officer of each institution 
and body referred to in Artic le 121 of the Financial 
Regulation shall draw up and keep updated documents describing the organisation of the accounts and accounting procedures of his  
 
EN  Error! Unknown document property name.  EN institution. institution. 
2. In drawing up the financial statements, as 
little use as possible shall be made of information 
from outside the accounts. 2. In drawing up the financial statements, as 
little use as possible shall be made of information 
from outside the accounts.  
3. Budget revenue and expenditure shall be 
recorded in the computerised  system referred to in 
Article 208, according to the economic nature of the operation, as current re venue or expenditure or 
as capital. 3. Budget revenue and expenditure shall be 
recorded in the computerised  system referred to in 
Article 208, according to the economic nature of the operation, as current re venue or expenditure or 
as capital.  
Article 208 
Computerised systems 
(Article 132 of the Financial Regulation) Article 208 
Computerised systems 
(Article 132 of the Financial Regulation)  
1. The accounts shall be kept with the help of 
an integrated computerised system. 1. The accounts shall be kept with the help of 
an integrated computerised system.  
2. Where accounts are kept using 
computerised systems and subsystems, such systems and subsystems shall be described in full. 2. Where accounts are kept using 
computerised systems and subsystems, such systems and subsystems shall be described in full.  
That description shall define the content of all data 
fields and specify how the system treats individual operations. It shall state how the system guarantees the existence of a comple te audit trail for each 
operation and for any change made to the computerised systems and subsystems so that it is possible at any time to identify the nature of the change and the person who made it. That description shall define the content of all data 
fields and specify how the system treats individual operations. It shall state how the system guarantees the existence of a complete audit trail for each operation and for any change made to the computerised systems and subsystems so that it is possible at any time to identify the nature of the change and the person who made it.  
 
EN  Error! Unknown document property name.  EN The description of computerised accounting 
systems and subsystems shall indicate any links between those systems and the central accounting system, particularly as rega rds the transfer of data 
and the reconciliation of balances. The description of computerised accounting 
systems and subsystems shall indicate any links between those systems and the central accounting system, particularly as rega rds the transfer of data 
and the reconciliation of balances.  
3. Access to the computerised systems and 
subsystems shall be confined to persons included on a list of authorised users which is kept and updated by each institution. 3. Access to the computerised systems and 
subsystems shall be confined to persons included on a list of authorised users which is kept and updated by each institution.  
SECTION 2 
ACCOUNTING LEDGERS  SECTION 2 
ACCOUNTING LEDGERS   
Article 209 
Accounting ledgers  
(Article 135 of the Financial Regulation) Article 209 
Accounting ledgers  
(Article 135 of the Financial Regulation)  
Each institution and each body referred to in Article 
121 of the Financial regulation shall keep a journal, a general ledger and an inventory Each institution and each body referred to in Article 
121 of the Financial regulation shall keep a journal, a general ledger and at least  sub-ledgers for 
debtors, creditors and fixed assets  an inventory   
More accurate terminology.  
The accounting ledgers sha ll consist of electronic 
documents which are iden tified by the accounting 
officer and offer full guarantees for use as evidence. The accounting ledgers shall consist of electronic 
documents which are iden tified by the accounting 
officer and offer full guarantees for use as evidence.  
Entries in the journal shall be transferred to the 
general ledger, itemised according to the chart of accounts referred to in Article 212  Entries in the journal shall be transferred to the 
general ledger, itemised according to the chart of accounts referred to in Article 212  
 
EN  Error! Unknown document property name.  EN The journal and the general ledger may be split into 
as many special journals and special ledgers are 
necessary to meet requirements.  The journal and the general ledger may be split into 
as many special journals and special ledgers are 
necessary to meet requirements.   
Entries recorded in special journals and special 
ledgers shall be centralised  at least every month in 
the journal and in the general ledger.  Entries recorded in special journals and special 
ledgers shall be centralised at least every month in the journal and in the general ledger.   
Article 210 
Trial balance 
(Article 135 of the Financial Regulation) Article 210 
Trial balance 
(Article 135 of the Financial Regulation)  
Each institution and body re ferred to in Article 121 
of the Financial Regulation shall establish a trial balance covering all the accounts of the general accounts, including the accounts cleared during the year, with, in each case: Each institution and body re ferred to in Article 121 
of the Financial Regulation shall establish a trial balance covering all the accounts of the general accounts, including the accounts cleared during the year, with, in each case:  
(a) account number; (a) account number;  
(b) description; (b) description;  
(c) total debits; (c) total debits;  
(d) total credits; (d) total credits;  
(e) balance. (e) balance.  
 
EN  Error! Unknown document property name.  EN Article 211 
Accounting reconciliations 
(Article 135 of the Financial Regulation) Article 211 
Accounting reconciliations 
(Article 135 of the Financial Regulation)  
1. The data in the genera l ledger shall be kept 
and organised in such a way as to justify the content of each of the a ccounts included in the trial 
balance. 1. The data in the genera l ledger shall be kept 
and organised in such a way as to justify the content of each of the a ccounts included in the trial 
balance.  
2. As regards the inventor y of fixed assets, the 
provisions of Articles 220 to 227 shall apply. 2. As regards the inventor y of fixed assets, the 
provisions of Articles 220 to 227 shall apply.  
SECTION 3 
CHART OF ACCOUNTS  SECTION 3 
CHART OF ACCOUNTS   
SECTION 4 
REGISTRATION  SECTION 4 
REGISTRATION   
Article 213 
Entries in the accounts 
(Article 135 of the Financial Regulation) Article 213 
Entries in the accounts 
(Article 135 of the Financial Regulation)  
1. Entries shall be made using the double entry 
method, whereby any movement or variation recorded in the accounts sh all be represented by an 
entry establishing an equivalence between the 
amount debited and the amount credited in the 1. Entries shall be made using the double entry 
method, whereby any movement or variation recorded in the accounts sh all be represented by an 
entry establishing an equivalence between the 
amount debited and the amount credited in the  
 
EN  Error! Unknown document property name.  EN various accounts affected by that entry. various accounts affected by that entry. 
2. The euro counterpart of a transaction 
denominated in a currency other than the euro shall be calculated and ente red in the accounts. 2. The euro counterpart of a transaction 
denominated in a currency ot her than the euro shall 
be calculated and entered in the accounts.  
Transactions in foreign currencies in accounts 
which can be revalued shall be revalued at least each time the accounts are closed. Transactions in foreign currencies in accounts 
which can be revalued shall be revalued at least each time the accounts are closed.  
That revaluation shall be based on the rates laid 
down in accordance with Article 8. That revaluation shall be based on the rates laid 
down in accordance with Article 8.  
The rate to be used for conversion between the euro 
and another currency to dr aw up the balance sheet 
at 31 December of year N sh all be that of the last 
working day of year N. The rate to be used for conversion between the euro 
and another currency to dr aw up the balance sheet 
at 31 December of year N sh all be that of the last 
working day of year N.  
3. The accounting rules adopted under Article 
133 of the Financial Regulation shall specify the conversion and re-evaluati on rules to be provided 
for the purposes of accrual accounting. 3. The accounting rules adopted under Article 
133 of the Financial Regulation shall specify the conversion and re-evaluati on rules to be provided 
for the purposes of accrual accounting.  
Article 214 
Accounting records 
(Article 135 of the Financial Regulation) Article 214 
Accounting records 
(Article 135 of the Financial Regulation)  
All accounting records shall specify the origin, 
content and booking reference of each data item and the references of the relevant supporting documents. All accounting records shall specify the origin, 
content and booking reference of each data item and the references of the relevant supporting documents.  
 
EN  Error! Unknown document property name.  EN Article 215 
Supporting documents 
(Article 135 of the Financial Regulation) Article 215 
Supporting documents 
(Article 135 of the Financial Regulation)  
1. Each entry shall be based on a dated and 
numbered supporting document, produced on paper or on a medium which guaran tees the reliability and 
safeguarding of its content for the periods laid down in Article 49. 1. Each entry shall be based on a dated and 
numbered supporting document, produced on paper or on a medium which guaran tees the reliability and 
safeguarding of its content for the periods laid down in Article 49.  
2. Operations of the same  type, carried out in 
the same place and on the same day may be summarised in a single supporting document. 2. Operations of the same  type, carried out in 
the same place and on the same day may be summarised in a single supporting document.  
Article 216 
Recording in the journal 
(Article 135 of the Financial Regulation) Article 216 
Recording in the journal 
(Article 135 of the Financial Regulation)  
Accounting operations shall be recorded in the 
journal by one of the following methods, which are not mutually exclusive: Accounting operations shall be recorded in the 
journal by one of the following methods, which are not mutually exclusive:  
(a) day by day, operation by operation; (a ) day by day, operation by operation;  
(b) in the form of a monthly summary of the 
total amounts involved in operations, provided that 
all documents allowing verification of individual operations day by day are kept. (b) in the form of a monthly summary of the 
total amounts involved in operations, provided that 
all documents allowing verification of individual operations day by day are kept.  
 
EN  Error! Unknown document property name.  EN Article 217 
Validation of entries 
(Article 135 of the Financial Regulation) Article 217 
Validation of entries 
(Article 135 of the Financial Regulation)  
1. Entries in the journal and in an inventory 
ledger shall be made final by means of a validation procedure prohibiting any ch ange to or deletion of 
the entry. 1. Entries in the journal and in an inventory 
ledger shall be made final by means of a validation procedure prohibiting any ch ange to or deletion of 
the entry.  
2. A closure procedure designed to freeze the 
chronology of records and guarantee their inviolability shall be implemented at the latest before the final financial statements are presented. 2. A closure procedure designed to freeze the 
chronology of records and guarantee their inviolability shall be implemented at the latest before the final financial statements are presented.  
SECTION 5 
RECONCILIATION AND VERIFICATION  SECTION 5 
RECONCILIATION AND VERIFICATION   
Article 218 
Reconciliation of accounts  
(Article 135 of the Financial Regulation) Article 218 
Reconciliation of accounts  
(Article 135 of the Financial Regulation)  
1. The balance of accounts in the trial balance shall 
be reconciled periodically a nd at least at the annual 
closure, with the data from the management systems used by authorising officers for the management of assets and liabilities and for the daily input into the accounting system. 1. The balance of accounts in the trial balance shall 
be reconciled periodically a nd at least at the annual 
closure, with the data from the management systems used by authorising officers for the management of assets and liabilities and for the daily input into the accounting system.  
2. Periodically, and at least whenever the accounts 2. Periodically, and at least whenev er the accounts Discriminate between ba lances (in the first 
 
EN  Error! Unknown document property name.  EN are closed, the accounting officer shall check that 
the data in the inventory ledger referred to in Article 209 correspond to th e actual situation, in 
particular as regards:  
(a) cash at bank, by reconciliation of the statements 
of account from financial institutions;  
(b) cash in cash offices, by reconciliation with the 
data in the cash book.  
The fixed assets accounts shall be reviewed in 
accordance with Article 224. are closed, the accounting officer shall check that 
the bank balances
 data in the inventory ledger 
referred to in Article 209  correspond to the actual 
situation, in particular as regards:  
(a) cash at bank, by reconciliation of the statements 
of account from financial institutions;  
(b) cash in cash offices, by reconciliation with the 
data in the cash book.  
The fixed assets accounts shall be reviewed in 
accordance with Article 224. paragraph) and fixed assets (in the second 
paragraph). 
3. The interinstitutional liaison accounts shall be 
reconciled and cleared monthly.  3. The interinstitutional liaison accounts shall be 
reconciled and cleared  monthly.  Update in line with practice: these accounts 
are not cleared monthly. 
4. The suspense accounts shall be reviewed 
annually by the accounting o fficer so that they can 
be cleared as soon as possible.  
 4. The suspense accounts shall be opened by the 
accounting officer under the responsibility of the 
competent authorising officer. They shall be 
reviewed annually by the accounting officer and 
shall so that they can be cleared as soon as possible  
by the competent authorising officer .  Clarification of the respective 
responsibilities of the Accounting officer and the authorising officer. 
 
EN  Error! Unknown document property name.  EN SECTION 6 
BUDGET ACCOUNTS  SECTION 6 
BUDGET ACCOUNTS   
Article 219 
Content and keeping of budget accounts 
(Article 137 of the Financial Regulation) Article 219 
Content and keeping of budget accounts 
(Article 137 of the Financial Regulation)  
1. The budget accounts shall show, for each 
subdivision of the budget: 1. The budget accounts shall show, for each 
subdivision of the budget:  
(a) in the case of expenditure: (a) in the case of expenditure:  
(i) the appropriations authorised in the initial 
budget, the appropriations entered in amending 
budgets, the appropriati ons carried over, the 
appropriations available following collection of assigned revenue, transfer s of appropriations and 
the total appropriations thus available; (i) the appropriations authorised in the initial 
budget, the appropriations entered in amending 
budgets, the appropriati ons carried over, the 
appropriations available following collection of assigned revenue, transfer s of appropriations and 
the total appropriations thus available;  
(ii) the commitments and payments in respect 
of the financial year; (ii) the commitments and payments in respect 
of the financial year;  
(b) in the case of revenue: (b) in the case of revenue:  
(i) the estimates entere d in the initial budget, 
the estimates entered in amending budgets, assigned revenue and the total amount of estimates thus determined; (i) the estimates entere d in the initial budget, 
the estimates entered in amending budgets, assigned revenue and the total amount of estimates thus determined;  
 
EN  Error! Unknown document property name.  EN (ii) the entitlements established and the 
amounts recovered in respect of the financial year in question; (ii) the entitlements established and the 
amounts recovered in respect of the financial year in question;  
(c) the commitments still to be paid and 
revenue still to be recovered carried forward from previous financial years. (c) the commitments still to be paid and 
revenue still to be recovered carried forward from previous financial years.  
The commitment appropriations and payment 
appropriations referred to in  point (a) of the first 
subparagraph shall be entered and shown separately. The commitment appropriations and payment 
appropriations referred to in  point (a) of the first 
subparagraph shall be entered and shown separately.  
The global provisional comm itments relating to the 
EAGF and the correspondi ng payments shall also 
be recorded in the budget accounts. The global provisional comm itments relating to the 
EAGF and the correspondi ng payments shall also 
be recorded in the budget accounts.  
Those commitments shall be presented in respect of 
total EAGF appropriations. Those commitments shall be presented in respect of 
total EAGF appropriations.  
2. The budget accounts shall show separately: 2. The budget accounts shall show separately:  
(a) the use of appropria tions carried over and 
the appropriations  for the year; (a) the use of appropria tions carried over and 
the appropriations  for the year;  
(b) the clearance of outstanding commitments. (b ) the clearance of outstanding commitments.  
On the revenue side, amount s still to be recovered 
from previous financial years shall be shown separately. On the revenue side, amount s still to be recovered 
from previous financial years shall be shown separately.  
3. The budget accounts may be organised in 3. The budget accounts may be organised in  
 
EN  Error! Unknown document property name.  EN such a way as to develop a cost accounting system. such a way as to develop a cost accounting system. 
4. The budget accounts shall be kept using 
computer systems, in books or on file cards. 4. The budget accounts shall be kept using 
computer systems, in books or on file cards.  
CHAPTER  3 
(CHAPTER 4 OF THE FINANCIAL 
REGULATION ) 
PROPERTY INVENTORIES  CHAPTER  3 
(CHAPTER 4 OF THE FINANCIAL 
REGULATION ) 
PROPERTY INVENTORIES   
Article 220 
Property inventories  
(Article 138 of the Financial Regulation) Article 220 
Property inventories  
(Article 138 of the Financial Regulation)  
The system of property inventories shall be 
established by the authorisi ng officer with technical 
assistance from the accounting officer. That inventory system must s upply all the information 
required for keeping the accounts and safeguarding 
assets.  The system of property inventories shall be 
established by the authorisi ng officer with technical 
assistance from the accounting officer. That inventory system must s upply all the information 
required for keeping the accounts and safeguarding 
assets.   
Article 221 
Safeguarding property  
(Article 138 of the Financial Regulation) Article 221 
Safeguarding property  
(Article 138 of the Financial Regulation)  
Each of the institutions shall adopt provisions on 
safeguarding the property included in their respective balance sheets and decide which administrative departments are responsible for the Each of the institutions shall adopt provisions on 
safeguarding the property included in their respective balance sheets and decide which administrative departments are responsible for the  
 
EN  Error! Unknown document property name.  EN inventory system.  inventory system.  
Article 222 
Entry of items in the inventory  
(Article 138 of the Financial Regulation) Article 222 
Entry of items in the inventory  
(Article 138 of the Financial Regulation)  
All items acquired with a pe riod of use greater than 
one year, which are not consumables, and whose purchase price or production cost is higher than that 
indicated in the accoun ting rules adopted under 
Article 133 of the Financial Regulation shall be 
entered in the inventory and recorded in the fixed 
assets accounts.  All items acquired with a pe riod of use greater than 
one year, which are not consumables, and whose purchase price or production cost is higher than that 
indicated in the accoun ting rules adopted under 
Article 133 of the Financial Regulation shall be 
entered in the inventory and recorded in the fixed 
assets accounts.   
Article 223 
Content of the inven tory for each item  
(Article 138 of the Financial Regulation) Article 223 
Content of the inven tory for each item  
(Article 138 of the Financial Regulation)  
The inventory shall contain an appropriate description of each item and specify its location, 
the date of acquisition and its unit cost.  The inventory shall contain an appropriate 
description of each item and specify its location, or 
for movable items, th e service or person 
responsible, the date of acquisition and its unit 
cost.  
Article 224 
Inventory checks  
(Article 138 of the Financial Regulation) Article 224 
Inventory checks of movable property  
(Article 138 of the Financial Regulation) Checks  only make sense for movable 
property, not buildings. 
Inventory checks carried out by the institutions 
shall be performed in such a way as to ensure that each item physically exists and matches the Inventory checks carried out by the institutions 
shall be performed in such a way as to ensure that each item physically exists and matches the  
 
EN  Error! Unknown document property name.  EN relevant entry in the inventory. Such checks shall 
be carried out under an  annual verification 
programme, save for tangi ble and intangible fixed 
assets, which shall be checked at least on a three-year basis.  relevant entry in the inventory. Such checks shall 
be carried out under an  annual verification 
programme, save for tangi ble and intangible fixed 
assets, which shall be checked at least on a three-year basis.  
Article 225 
Resale of property  
(Article 138 of the Financial Regulation) Article 225 
Resale of property  
(Article 138 of the Financial Regulation)  
Members, officials or other servants and any other 
staff of the institutions and bodies referred to in 
Article 121 of the Financ ial Regulation may not 
acquire items that are reso ld by these institutions 
and bodies, save where t hose items are resold by 
public tender procedure.  Members, officials or other servants and any other 
staff of the institutions and bodies referred to in 
Article 121 of the Financ ial Regulation may not 
acquire items that are reso ld by these institutions 
and bodies, save where t hose items are resold by 
public tender procedure.   
Article 226 
Procedure for sale of fixed assets  
(Article 138 of the Financial Regulation) Article 226 
Procedure for sale of fixed assets  
(Article 138 of the Financial Regulation)  
 
EN  Error! Unknown document property name.  EN 1. Sales of fixed assets shall be advertised locally in 
appropriate fashion, if th e unit purchase value is 
EUR 8 100 or more. The period between publication of the last announcement and conclusion of the sales contract shall be no less than fourteen calendar days. 
Those sales shall be the s ubject of a notice of sale 
published in the Official Journal of the European 
Communities , if the unit purchase value is EUR 391 
100 or more. Appropriate a dvertising may also be 
placed in the Member States’ press. The period between the date of publication of the notice in the Official Journal of the European Communities and 
conclusion of the sales contract shall be no less than one month. 
2. The institutions may forgo advertising where the 
cost of advertising exceeds the expected return from the operation. 
3. The institutions shall al ways endeavour to obtain 
the best price for sales of fixed assets.  1. Sales of fixed assets shall be advertised locally in 
appropriate fashion, if th e unit purchase value is 
EUR 8 100 or more. The period between publication of the last announcement and conclusion of the sales contract shall be no less than fourteen calendar days. 
Those sales shall be the s ubject of a notice of sale 
published in the Official Journal of the European 
Communities , if the unit purchase value is EUR 
391 100 or more. Appropriate  advertising may also 
be placed in the Member States’ press. The period between the date of publication of the notice in the Official Journal of the European Communities and 
conclusion of the sales contract shall be no less than one month. 
2. The institutions may forgo advertising where the 
cost of advertising exc eeds the expected return 
from the operation. 
3. The institutions shall al ways endeavour to obtain 
the best price for sales of fixed assets. 
4. Paragraphs 1, 2 and 3 shall not apply to sales 
between Union institutions and their Agencies 
and bodies referred to in Article 185 of the 
Financial Regulation .  
  
 
 
 
 
 
  
 
It would be dispropor tionate to apply the 
procedure of this Ar ticle 226 IR for sales 
between Union instituti ons and its agencies 
or bodies.   
This article does not apply for "sales" 
among EU Institutions, since a sale is a form of a contract which requires both contracting parties to have legal personality.  
 
EN  Error! Unknown document property name.  EN Article 227 
Procedure for disposing of fixed assets 
(Article 138 of the Financial Regulation) 
A statement or record shall be drawn up by the 
authorising officer whenev er any property in the 
inventory is sold, given away free of charge, scrapped, hired out or missing on account of loss, 
theft or any other reason. 
The statement or record sh all indicate in particular 
whether the item must be replaced at the expense of 
an official or other servant of the Communities or any other person. 
Where immovable property or major installations 
are made available free of  charge, a contract must 
be drawn up and the case  notified in an annual 
report sent to the European Parliament and the Council when the preliminary draft budget is presented.  Article 227 
Procedure for disposing of fixed assets 
(Article 138 of the Financial Regulation) 
A statement or record shall be drawn up by the 
authorising officer whenev er any property in the 
inventory, including buildings,
 is sold, given away 
free of charge, scrapped, hired out or missing on account of loss, theft or any other reason. 
The statement or record sh all indicate in particular 
whether the item must be replaced at the expense of 
an official or other servant of the Communities or any other person. 
Where immovable property or major installations 
are made available free of  charge, a contract must 
be drawn up and the case  notified in an annual 
report sent to the European Parliament and the Council when the preliminary draft budget is presented. 
Members, officials or ot her servants and any 
other staff of the institut ions and bodies referred 
to in Article 121 of the Financial Regulation may 
not be recipients of the property in the inventory 
given away free of charge or scrapped.   
  
For exhaustiveness, it would be 
preferable to explicitly mention 
buildings in Article 227 FR. 
 
 
  
For clarity, if only the specific cases of 
availability free of charge are 
concerned, this should be mentioned. 
 
 
EN  Error! Unknown document property name.  EN PART  TWO 
SPECIAL  PROVISIONS PART  TWO 
SPECIAL  PROVISIONS  
TITLE  I 
(TITLE  II OF PART  II OF THE  
FINANCIAL  REGULATION) 
STRUCTURAL  FUNDS,  COHESION  
FUND,  EUROPEAN  FISHERIES  FUND  
AND  EUROPEAN  AGRICULTURAL  
FUND  FOR  RURAL  DEVELOPMENT TITLE  I 
(TITLE  II OF PART  II OF THE  
FINANCIAL  REGULATION) 
STRUCTURAL  FUNDS,  COHESION  
FUND,  EUROPEAN  FISHERIES  FUND  
AND  EUROPEAN  AGRICULTURAL  
FUND  FOR  RURAL  DEVELOPMENT  
Article 228 
Repayment of payments on account 
(Article 157 of the Financial Regulation) Article 228 
Repayment of payments on account 
(Article 157 6 of the Financial Regulation)  
In accordance with the regulations on the Structural 
Funds, the Cohesion Fund, the Structural Funds, the Cohesion Fund, the Europ ean Fisheries Fund and 
the European Agricultural Fund for Rural Development the repayment in full or in part of payments on account in resp ect of a given operation 
shall not have the e ffect of reducing the 
contribution from the Fund to the operation concerned. In accordance with the regulations on the Structural 
Funds, the Cohesion Fund, the Structur
al Funds, the 
Cohesion Fund , the European Fisheries Fund and 
the European Agricultural Fund for Rural Development the repayment in full or in part of payments on account in resp ect of a given operation 
shall not have the e ffect of reducing the 
contribution from the Fund to the operation concerned. Words repeated. 
Amounts repaid shall constitute assigned revenue in 
accordance with point (f) of Article 18(1) of the Amounts repaid shall constitute assigned revenue in 
accordance with point ( c) of Article 18( 3) of the  
 
EN  Error! Unknown document property name.  EN Financial Regulation. Financial Regulation. 
TITLE  II 
(TITLE  III OF THE  FINANCIAL  
REGULATION) 
RESEARCH TITLE  II 
(TITLE  III OF THE  FINANCIAL  
REGULATION) 
RESEARCH  
Article 229 
Types of operations 
(Article 160 of the Financial Regulation) Article 229 
Types of operations 
(Article 160 of the Financial Regulation)  
1. The research and technological 
development appropriations shall be used to carry out direct action, indirect action under the framework programme for re search referred to in 
Article 166 of the EC Treaty, and the action referred to in Article 165 of that Treaty by participation in programmes and competitive activities conducted by the Joint Research Centre 
(JRC). 1. The research and technological 
development appropriations shall be used to carry out direct action, indirect action under the framework programme for re search referred to in 
Article 166 of the EC Treaty, and the action referred to in Article 165 of that Treaty by participation in programmes and competitive activities conducted by the Joint Research Centre 
(JRC).  
2. Direct action shall be carried out by the 
establishments of the JRC and shall in principle be entirely financed from the budget. It shall consist of: 2. Direct action shall be carried out by the 
establishments of the JRC and shall in principle be entirely financed from the budget. It shall consist of:  
(a) research programmes; (a) research programmes;  
(b) exploratory research activities; (b ) exploratory research activities;  
 
EN  Error! Unknown document property name.  EN (c) scientific and techni cal support activities of 
an institutional nature. (c) scientific and techni cal support activities of 
an institutional nature.  
3. Indirect action shall consist of programmes 
carried out under contracts to be concluded with 
third parties. The JRC may participate in those activities on the same basis as third parties. 3. Indirect action shall consist of programmes 
carried out under contracts to be concluded with 
third parties. The JRC may participate in those activities on the same basis as third parties.  
4. To ensure that nationa l research policies and 
Community research policy are mutually consistent, the Commission ma y take initiatives in 
accordance with Article 165 of the EC Treaty and 
charge exclusively administrative expenditure to the budget. 4. To ensure that nationa l research policies and 
Community
 Union  research policy are mutually 
consistent, the Commission ma y take initiatives in 
accordance with Article 165 of the EC Treaty and 
charge exclusively admini strative expenditure to 
the budget.  
5. In addition to the specific programmes 
referred to in Article 166( 3) of the EC Treaty, the 
Community may adopt: 5. In addition to the specific programmes 
referred to in Article 166(3) of the EC Treaty, the Community
 Union  may adopt:  
(a) supplementary programmes in which only 
certain Member States take part, in accordance with Article 168 of the EC Treaty; (a) supplementary programmes in which only 
certain Member States take part, in accordance with Article 168 of the EC Treaty;  
(b) programmes undertaken by several Member 
States, including participat ion in the structures 
created for the execution of those programmes, in accordance with Article 169 of the EC Treaty; (b) programmes undertaken by several Member 
States, including participat ion in the structures 
created for the execution of those programmes, in accordance with Article 169 of the EC Treaty;  
(c) cooperation with third countries or 
international organisations  in accordance with 
Article 170 of the EC Treaty; (c) cooperation with third countries or 
international organisations  in accordance with 
Article 170 of the EC Treaty;  
 
EN  Error! Unknown document property name.  EN (d) joint undertakings, in accordance with 
Article 171 of the EC Treaty. (d) joint undertakings, in accordance with 
Article 171 of the EC Treaty.  
6. The activities of a competitive nature 
conducted by the JRC shall consist of: 6. The activities of a competitive nature 
conducted by the JRC shall consist of:  
(a) scientific and tec hnical support activities 
under the research and t echnological development 
framework programmes, in principle entirely financed from the budget; (a) scientific and tec hnical support activities 
under the research and technological development framework programmes, in principle entirely financed from the budget;  
(b) services for third parties. (b) services for third parties.  
7. The estimate of amount receivable, as 
referred to in Article 160(1a) of the Financial Regulation shall be sent to the accounting officer 
for registration. 7. The estimate of amount receivable, as 
referred to in Article 160(1a) of the Financial Regulation shall be sent to the accounting officer 
for registration.  
Article 230  
Rules applicable to the JRC 
(Article 161 of the Financial Regulation)  Article 230 
Rules applicable to the JRC 
(Article 161 of the Financial Regulation)  
1. The estimates of amounts receivable referred to 
in Article 161(2) of the Financial Regulation shall 
be sent to the accounting officer for registration. 
2. Where the activities conducted by the JRC for 
third parties involve proc urement, the procurement 
procedure shall comply with the principles of transparency and equal treatment.  1. The estimates of amounts receivable referred to 
in Article 161(2) of the Financial Regulation shall 
be sent to the accounting officer for registration. 
2. Where the activities conducted by the JRC for 
third parties involve proc urement, the procurement 
procedure shall comply with the principles of transparency and equal treatment.   
 
EN  Error! Unknown document property name.  EN TITLE  III 
(TITLE  IV OF THE  FINANCIAL  
REGULATION) 
EXTERNAL  ACTIONS TITLE  III 
(TITLE  IV OF THE  FINANCIAL  
REGULATION) 
EXTERNAL  ACTIONS  
CHAPTER  I 
GENERAL  PROVISIONS CHAPTER  I 
GENERAL  PROVISIONS  
Article 231 
Actions which may be financed 
(Article 162 of the Financial Regulation) Article 231 
Actions which may be financed 
(Article 162 of the Financial Regulation)  
Appropriations for the actio ns referred to in Title 
IV, Chapter 1 of Part Two of the Financial Regulation may, in partic ular, finance procurement 
contracts, grants, including interest rate subsidies, special loans, loan guarantees and financial assistance, budgetary suppor t and other specific 
forms of budgetary aid. Appropriations for the actio ns referred to in Title 
IV, Chapter 1 of Part Two of the Financial Regulation may, in partic ular, finance procurement 
contracts, grants, including interest rate subsidies, special loans, loan guarantees and financial assistance, budgetary suppor t and other specific 
forms of budgetary aid.  
 Article 231a IR  
Trust funds for external actions   
 Specific bank accounts for trust funds are 
opened in the name of the Commission and are 
closed by the accounting officer following the 
rules prescribed by him.   
 
EN  Error! Unknown document property name.  EN The accounting officer shall ensure that these 
bank accounts and their respective balances are 
managed in accordance with the rules 
established for the Commission's bank accounts.  
The contributions of other donors are taken into 
account when cashed in the specific bank 
account of the trust fund and for the amount in 
Euro as converted by the specific bank account.  
The Union contribution is transferred in due 
time to cover the legal commitments of the trust 
fund account duly taken of available funds 
provided by the other donors.  
Accrued interests on the sums remaining in the 
trust fund shall be invest ed in the trust fund 
save otherwise provided fo r in the constitutive 
act of the trust fund.  
The contributions of the trust funds shall be 
implemented under the applicable rules of the 
Financial Regulation for external actions.  
All transactions made on this bank account 
during the year are detailed in the accounts of 
the trust fund. The consolidation of the trust 
fund in the Commission's annual accounts is 
defined by the accounting rules defined by the 
accounting officer.  
Financial reporting on the operations carried 
 
EN  Error! Unknown document property name.  EN out by each trust fund is established twice yearly 
by the authorising officer.  
The trust funds are subj ect every year to an 
independent external audit.  
The board of the trust fund shall approve the 
annual report of the trust fund drawn up by the 
authorising officer together with annual 
accounts drawn up by the accounting officer. 
These reports are attached to the annual report 
of the authorising officer by delegation and 
presented to the budget authority within the 
discharge procedure of the Commission.  
The rules for composition of the board and its 
internal rules are laid do wn in the constitutive 
act of the trust fund adopted by the Commission 
and adhered to by the donors. They shall ensure 
a fair representation of the donors and the 
requirement to have the positive vote of the 
Commission for the final decision on the use of 
the  funds.  
 
EN  Error! Unknown document property name.  EN CHAPTER  2 
IMPLEMENTATION OF ACTIONS  CHAPTER  2 
IMPLEMENTATION OF ACTIONS   
Article 232 
Financing agreement in centralised management 
(Article 166  of the Financial Regulation) Article 232  
Financing agreement in  decentralised 
management  
(Article 166 of the Financial Regulation )  
1. Before a financing agreement is concluded for an 
action which is to be the subject of decentralised management, the authorising officer responsible shall ensure, by means of document checks and on-the-spot checks, that the management and control system set up by the beneficiary third country to manage the Community funds complies with Article 56 of the Financial Regulation.  
2. Each financing agreement concluded in the 
context of decentralised management shall explicitly, in full or in pa rt depending on the degree 
of decentralisation agree d, lay down provisions:  
  (a) ensuring compliance with the criteria 
laid down in Article 56(1) and (2) of the 
Financial Regulation;  
  (b) stating that, if the minimum criteria 
laid down in Article 56(1) and (2) of the 
Financial Regulation cease to be met, the Commission may suspend or terminate 1. Before a financing agreement is concluded for an 
action which is to be the subject of decentralised 
management, the authorising officer responsible 
shall ensure, by  means of document checks and on -
the-spot checks, that the management and control 
system set up by the beneficiary third country to 
manage the Community funds complies with 
Article 56 of the Financial Regulation.  
2. Each financing agreement concluded in t he 
context of decentralised management shall 
explicitly, in full or in pa rt depending on the degree 
of decentralisation agreed, lay down provisions:  
  (a) ensuring compliance with the criteria 
laid down in Article 56(1) and (2) of the 
Financial Regulation ;  
  (b) stating that, if the minimum criteria 
laid down in Article 56(1) and (2) of the 
Financial Regulation cease to be met, the 
Commission may suspend or terminate This Article should be deleted, as the 
balanced approach of decentralised management mode is proposed as a model for the common principles of indirect budget implementation in Part I. No specific provision is therefore necessary for external actions. 
 
EN  Error! Unknown document property name.  EN implementation of the agreement;  
  (c) defining the adversarial clearance of 
accounts procedure, as provided for in Article 53c of the Fi nancial Regulation, 
which may be used to identify the liability of the third country;  
  (d) setting up the financial correction 
mechanisms referred to in Article 53c of the Financial Regulation and specified in 
Article 42 of this Regul ation, in particular 
as regards recovery by means of offsetting where the action is fully decentralised.  
  (e) provisions on the publication of the 
beneficiaries of funds  deriving from the 
budget.  
3. The provisions referre d to in point (e) of 
paragraph 2 shall require the third country to publish the information referred to in Article 169(2), according to a standard presentation, in a dedicated and easily accessible place of its internet site. If such internet publication is impossible, the information shall be published by any other appropriate means, including the national official journal.  
Publication shall take place during the first half of 
the year following the clos ure of the budget year in implementation of the agreement; 
 
  (c) defining the adve rsarial clearance of 
accounts pr ocedure, as provided for in 
Article 53c of the Fi nancial Regulation, 
which may be used to identify the liability 
of the third country;  
  (d) setting up the financial correction 
mechanisms referred to in Article 53c of 
the Financial Regulation and specifie d in 
Article 42 of this Regul ation, in particular 
as regards recovery by means of offsetting 
where the action is fully decentralised.  
  (e) provisions on the publication of the 
beneficiaries of funds  deriving from the 
budget.  
3. The provisions referred t o in point (e) of 
paragraph 2 shall require the third country 
to publish the information referred to in 
Article 169(2), according to a standard 
presentation, in a dedicated and easily 
accessible place of its internet site. If such 
internet publication is i mpossible, the 
information shall be published by any other 
appropriate means, including the national 
official journal.  
Publication shall take place during the first half of 
the year following the clos ure of the budget year in 
 
EN  Error! Unknown document property name.  EN respect of which the funds were attributed to the 
third country.  
The third country shall communicate to the 
Commission the address of  the place of publication 
and reference shall be made to this address in the dedicated place of the internet site of the 
Community institutions referred to in Article 169(1). If the information is published otherwise, 
the third country shall give the Commission full 
details of the means used. respect of which the funds we
re attributed to the 
third country.  
The third country shall communicate to the 
Commission the address of the place of publication 
and reference shall be made to this address in the 
dedicated place of the internet site of the 
Community institutions referre d to in Article 
169(1). If the information is published otherwise, 
the third country shall give the Commission full 
details of the means used.  
Article 233 
Special loans 
(Article 166 of the Financial Regulation) Article 233 
Special loans 
(Article 166 of the Financial Regulation)  
A loan contract shall be drawn up between the 
Commission, acting for the Community, and the borrower in respect of any investment project 
financed by a special loan. A loan contract shall be drawn up between the 
Commission, acting for the Community
 Union , and 
the borrower in respect of any investment project financed by a special loan.  
Article 233a 
(Article 166(3) of the Financial Regulation) Article 233a 
(Article 166(3) of the Financial Regulation) 
  
1. The following elements shall not be included in 
the calculation of the automatic decommitment provided for in Article 166(3)(a) of the Financial Regulation:  
  (a) that part of the budget commitments for 1. T
he following elements shall not be included in 
the calculation of the automatic decommitment 
provided for in Article 166(3)(a) of the Financial 
Regulation:  
  (a) that part of the budget commitments for Deleted in accordance  with the proposed 
modification of Article 166(3) FR. 
 
EN  Error! Unknown document property name.  EN which a declaration of expenditure has been made 
but reimbursement of which has been interrupted or 
suspended by the Commission at 31 December of year n + 3 ;  
  (b) that part of the budget commitments for 
which it has not been possible to make a disbursement or a declaration of expenditure for reasons of force majeure seriously affecting the implementation of the programme.  
National authorities claiming force majeure 
pursuant to point (b) of th e first subparagraph must 
demonstrate the direct consequences on the implementation of all or part of the programme.  
2. The Commission shall inform the beneficiary 
countries and the author ities concerned in good 
time if there is a risk of automatic decommitment. It shall inform them of the amount involved as indicated by the information in its possession. The beneficiary countries sha ll have two months from 
receiving this information to agree to the amount in 
question or to present observations. The Commission shall carry out the automatic decommitment not later than nine months after the time-limits laid down in points (a) and (b) respectively of Article 166(3) of the Financial 
Regulation.  
3. In the event of automatic decommitment, the 
Community financial contribution to the which a declaration of e xpenditure has been made 
but reimbursement of which ha s been interrupted or 
suspended by the Commission at 31 December of 
year n + 3 ;  
  (b) that part of the budget commitments for 
which it has not been possible to make a 
disbursement or a declar ation of expenditure for 
reasons of fo rce majeure seriously affecting the 
implementation of the programme.  
National authorities claiming force majeure 
pursuant to point (b) of the first subparagraph must 
demonstrate the direct consequences on the 
implementation of all or part of the programme .  
 2. The Commission shall inform the beneficiary 
countries and the author ities concerned in good 
time if there is a risk of automatic decommitment. 
It shall inform them of the amount involved as 
indicated by the information in its possession. The 
benefic iary countries shall ha ve two months from 
receiving this information to agree to the amount in 
question or to present observations. The 
Commission shall carry out the automatic 
decommitment not later than nine months after the 
time-limits laid down in poin ts (a) and (b) 
respectively of Article 166(3) of the Financial 
Regulation.  
 
EN  Error! Unknown document property name.  EN programmes concerned shall be reduced, for the 
year in question, by th e amount automatically 
decommited. The beneficiary country shall produce a revised financing plan dividing the reduction of 
the aid between the priorities and measures if relevant. If it does not do so, the Commission shall reduce the amounts allocated to each priority and measure if relevant pro rata.  
3. In the event of automatic decommitment, the 
Community financial contribution to the 
programmes concerned shall be reduced, for the 
year in question, by the amount automatically  
decommited. The beneficiary country shall produce 
a revised financing plan dividing the reduction of 
the aid between the priorities and measures if 
relevant. If it does not do so, the Commission shall 
reduce the amounts allocated to each priority and 
meas ure if relevant pro rata..  
Article 234 
Bank accounts 
(Article 166 of the Financial Regulation) Article 234 
Bank accounts  
(Article 166 of the Financial Regulation)  
1. For payments in the currency of the recipient 
State, accounts denominated in euro shall be opened with a financial inst itution in the recipient 
State or in one of the Member States in the name of the Commission or, by common agreement, of the recipient. The titles of those accounts shall make it possible to identify the funds in question.  
2. The accounts referred to in paragraph 1 shall be 
endowed to meet actual cash requirements. Transfers shall be made in euro and converted, where necessary, into the cu rrency of the recipient 
State as and when payments fall due, in accordance 1. For payments in the currency of the recipient 
State, accounts denominated in euro shall be opened with a financial inst itution in the recipient 
State or in one of the Member States in the name of the Commission or, by common agreement, of the recipient. The titles of those accounts shall make it possible to identify the funds in question.  
2. The accounts referred to in paragraph 1 shall be 
endowed to meet actual cash requirements. Transfers shall be made in euro and converted, where necessary, into the cu rrency of the recipient 
State as and when payments fall due, in accordance  
 
EN  Error! Unknown document property name.  EN with Articles 7 and 8. with Articles 7 and 8. 
CHAPTER  3 
PROCUREMENT  CHAPTER  3 
PROCUREMENT   
Article 235 
Renting of buildings 
(Article 167 of the Financial Regulation) Article 235 
Renting of buildings 
(Article 167 of the Financial Regulation)  
The only buildings contracts which may be 
financed from operating appropriations for external action shall be those relating to the renting of buildings already constructed at the time the lease is signed. These contracts shall be published as laid down in Article 119. The only buildings contracts which may be 
financed from operating appropriations for external action shall be those relating to the renting of buildings already constructed at the time the lease is signed. These contracts shall be published as laid down in Article 119.  
Article 236 
Definitions 
(Article 167 of the Financial Regulation) Article 236 
Definitions 
(Article 167 of the Financial Regulation)  
1. Service contracts shall comprise study and 
technical assistance contracts. 1. Service contracts shall comprise study and 
technical assistance contracts.  
A study contract is a serv ice contract concluded 
between a supplier and the contracting authority which includes studies for the identification and preparation of projects, feasibility studies, economic and market studies, technical studies and audits. A study contract is a serv ice contract concluded 
between a supplier and th e contracting authority 
which includes studies for the identification and preparation of projects, feasibility studies, economic and market studies, technical studies and audits.  
 
EN  Error! Unknown document property name.  EN A technical assistance contract is where the 
supplier is called on to play  an advisory role, to 
manage or supervise a project or to provide the consultants specified  in the contract. A technical assistance contract is where the 
supplier is called on to play  an advisory role, to 
manage or supervise a project or to provide the consultants specified  in the contract.  
2. Where a third country has qualified 
management staff in its departments or entities with public-sector participati on, the contracts may be 
performed directly by these departments or entities 
by direct labour. 2. Where a third country has qualified 
management staff in its departments or entities with public-sector participati on, the contracts may be 
performed directly by these departments or entities 
by direct labour.  
Article 237  
Special provisions relating to thresholds and the 
arrangements for awarding external contracts  
(Article 167(1)(a) and (b ) of the Financial 
Regulation) Article 237  
Special provisions relating to thresholds and the 
arrangements for awarding external contracts  
(Article 167(1)(a) and (b ) of the Financial 
Regulation)  
1. Articles 118 to 121, with the exception of the 
definitions, Article 122 (3) and (4), Articles 123, 126 to 129, 131 (3) to (6), Article 139 (2), Articles 140 to 146, Article 148 and Articles 151, 152 and 158a of this Regulation shall not apply to procurement contracts concl uded by or on behalf of 
the contracting authorities referred to in points (a) 
and (b) of Article 167( 1) of the Financial 
Regulation. 
Implementation of the procurement provisions 
under this Chapter shal l be decided by the 
Commission. 1. Articles 118 to 121, with the exception of the 
definitions, Article 122 (3) and (4), Articles 123, 126 to 129, 131 (3) to (6), Article 137(3a),
 139 (2), 
Articles 140 to 146, Article 148 and Articles 
151152 and 158a  of this Regulation shall not apply 
to procurement contracts concluded by or on behalf 
of the contracting authorities referred to in points 
(a) and (b) of Article 167(1) of the Financial 
Regulation. 
Implementation of the procurement provisions 
under this Chapter shal l be decided by the 
Commission , including the appropriate controls 
to be applied by the responsible authorising The addition of Article 137(3a) on the list is 
a consequence of the new Article 249(6). 
It is proposed to delete the reference to 
Article 158a IR (standstill period before contract signature) because it is in Chapter 2 of Title V (contracts awarded by EU institutions on their own behalf).  
The Authorising officer by delegation 
(AOD) would have to establish appropriate controls. This responsi bilisation of the AOD 
is the necessary consequence of the proposal that he may choose single-tender 
 
EN  Error! Unknown document property name.  EN 2. In the event of failure  to comply with the 
procedures referred to in paragraph 1, expenditure on the operations in question shall not be eligible for Community financing.  
3. This Chapter shall not apply to the contracting 
authorities referred to in point (b) of Article 167(1) 
of the Financial Regulation where, following the checks referred to in Article 35, the Commission has authorised them to use their own procurement 
procedures under decentralised management.  officer where the Commission is not the 
contracting authority . 
2. In the event of failure  to comply with the 
procedures referred to in paragraph 1, expenditure on the operations in question shall not be eligible for Community
 Union  financing.  
3. This Chapter shall not apply to the contracting 
authorities referred to in point (b) of Article 167(1) 
of the Financial Regulation where, following the 
checks referred to in Article 35  53c of the 
Financial Regulation , the Commission has 
authorised them to use their own procurement proceduresunder decentralised management.
 negotiated procedures (negotiated 
procedure). 
Coordinating the application of special 
provisions on procurem ent with the use by 
the third party's own procurement procedures if approved by the Commission: extension to third parties referred to in 
Article 167(1)(c ) FR. 
Article 238 
Procurement by the c ontracting authorities 
referred to in Article 16 7(1)( c) of the Financial 
Regulation 
(Article 167(1)( c) of the Financial Regulation) Article 238
 
Procurement by the c ontracting authorities 
referred to in Article 16 7(1)( c) of the Financial 
Regulation  
(Article 167(1)( c) of the Financial Regulation)   
1. The provisions of this Chapter shall not 
apply to procurement by the contracting authorities referred to in point (c) of Article 167(1) of the 
Financial Regulation. 1.
 The provisions of this Chapter shall not 
apply to procurement by the contracting authorities 
referred to in point (c) of Article 167( 1) of the 
Financial Regulation.   
2. The provisions of this Chapter shall not 
apply to actions under Regulation (EC) No 1257/96. 2.
 The provisions of this Chapter shall not 
apply to actions under Regulation (EC) No 
1257/96.   
 
EN  Error! Unknown document property name.  EN 3. The specific procurement procedures to be 
used in the cases referred to in paragraphs 1 and 2 shall be decided by the Commission in accordance with the principles referred to in Article 184. 3.
 The specific procurement procedures to be 
used in the cases referred to in paragraphs 1 a nd 2 
shall be decided by the Commission in accordance 
with the principles referred to in Article 184.   
4. In the event of failure to comply with the 
procedures referred to in paragraph 3, expenditure on the operations in question shall not be eligible for Community financing. 4.
 In the event of failure to comply with the 
procedures referred to in paragraph 3, expenditure 
on the operations in question shall not be eligible 
for Community financing.   
Article 239 
Advertising and non-discrimination 
(Articles 167 and 168 of the Financial Regulation) Article 239 
Advertising and non-discrimination 
(Articles 167 and 168 of the Financial Regulation)  
The Commission shall take the necessary 
implementing measures to guarantee as wide a participation as possible, on equal terms, in competitive tendering for the award of contracts financed by the Community. To that end, care shall 
be taken in particular to: The Commission shall take the necessary 
implementing measures to guarantee as wide a participation as possible, on equal terms, in competitive tendering for the award of contracts financed by the Community
 Union . To that end, 
care shall be taken in particular to:  
(a) ensure adequate advance publication, in 
reasonable time, of the pre-information notices, contract notices and award notices; (a) ensure adequate advance publication, in 
reasonable time, of the pre-information notices, contract notices and award notices;  
(b) eliminate any discriminatory practice or 
technical specifications liable to hamper wide participation on equal terms by all natural or legal persons referred to in Ar ticle 168 of the Financial 
Regulation. (b) eliminate any discriminatory practice or 
technical specifications liable to hamper wide 
participation on equal terms by all natural or legal persons referred to in Ar ticle 168 of the Financial 
Regulation.  
 
EN  Error! Unknown document property name.  EN Article 240 
Advertising 
(Article 167 of the Financial Regulation) Article 240 
Advertising 
(Article 167 of the Financial Regulation)  
1. The pre-information not ice for international 
calls for tender shall be sent to the Office for Official Publications of the European Communities as early as possible for s upply and service contracts 
and as quickly as possible after the decision authorising the programme for works contracts. 1. The pre
-prior  information notice for 
international calls for tender shall be sent to the Publications Office 
of the European Communities 
as early as possible for s upply and service contracts 
and as quickly as possi ble after the decision 
authorising the programme for works contracts.  
2. For the purposes of this Chapter, the 
contract notice shall be published: 2. For the purposes of this Chapter, the 
contract notice shall be published:  
(a) at least in the Official Journal of the 
European Communities  and on the Internet for 
international calls for tender; (a) at least in the Official Journal of the 
European Union Communities  and on the Internet 
for international calls for tender;  
(b) at least in the official  gazette of the recipient 
State or in any equivale nt publication for local 
invitations to tender. (b) at least in the official gazette of the recipient 
State or in any equivale nt publication for local 
invitations to tender.  
Where the contract notice is also published locally, 
it must be identical to the one published in the Official Journal of the European Communities  and 
on the Internet and it must be published simultaneously. The Commission shall be responsible for publication in the Official Journal 
of the European Communities  and on the Internet. 
If the notice is published locally, this may be done Where the contract notice is also published locally, 
it must be identical to the one published in the 
Official Journal of the European Union
 
Communities  and on the Internet and it must be 
published simultaneously. The Commission shall be responsible for publication in the Official 
Journal of the European Union 
Communities  and 
on the Internet. If the notice is published locally,  
 
EN  Error! Unknown document property name.  EN by the beneficiary. this may be done by the beneficiary. 
3. The award notice shall be sent when the 
contract is signed except wh ere, if still necessary, 
the contract was declared secret or where the performance of the contract must be accompanied by special security measures, or when the protection of the essential interests of the European Union, or the beneficiary country so requires, and 
where the publication of the award notice is deemed not to be appropriate. 3. The award notice shall be sent when the 
contract is signed except wh ere, if still necessary, 
the contract was declared secret or where the performance of the contract must be accompanied by special security measures, or when the protection of the essential interests of the European Union, or the beneficiary country so requires, and 
where the publication of the award notice is deemed not to be appropriate.  
Article 241  
Thresholds and procedures for awarding service 
contracts   
(Article 167 of the Financial Regulation) Article 241   
Thresholds and procedures for awarding service 
contracts  
(Article 167 of the Financial Regulation)  
1. The thresholds and procedures referred to in 
Article 167 of the Financia l Regulation shall be as 
follows for service contracts:  
 (a) for contracts with a value of EUR 200 000 
or more: an international restricted invitation to tender within the meaning of Article 122(2) and point (a) of Article 240(2);  
 (b) for contracts with a value of less than EUR 
200 000: competitive negotiated procedure within the meaning of paragraph 3, provided that the use of an existi ng framework contract is 
impossible or has been unsuccessful.  1. The thresholds and procedures referred to in 
Article 167 of the Financia l Regulation shall be as 
follows for service contracts:  
 (a) for contracts with a value of EUR 200 
000300 000  or more: an international restricted 
invitation to tender w ithin the meaning of 
Article 122(2) and point (a) of Article 240(2);  
 (b) for contracts with a value of less than EUR 
200 000 300 000 : competitive negotiated 
procedure within the meaning of paragraph 3, or a
 provided that the use of an existing  
framework contract is impossible or has been The proposed changes aim at: 
1. Increasing the thresholds for negotiated 
procedure without pub lication with three 
tenderers for service contracts from EUR 200,000 to 300,000; 
2. Removing the condition that an existing 
framework contract cannot be used or its use was not successful. 3. Threshold for a single tender should be increased from EUR 
10,000 to 20,000;  
4. Introducing a threshold for payment 
 
EN  Error! Unknown document property name.  EN Contracts with a value of less than or equal to EUR 
10 000 may be awarded on the basis of a single tender.  unsuccessful
. 
Contracts with a value of less than or equal to EUR 
10 000 20 000  may be awarded on the basis of a 
single tender. 
(c) payments for amounts less than or equal 
EUR 2 500 in respect of  item of expenditure 
may consist simply in payment against 
invoices without prior acceptance of a 
tender;  
(d) an appropriately advertised call for 
expression of interest shall constitute a 
means for preselecting candidates who will 
be invited to submit tenders in response to 
future restricted invitations to tender for 
contracts with a value not exceeding EUR 
300 000. The list so consti tuted shall be valid 
for no more than three years from the date of 
advertisement. Any interested person may 
apply to be placed on the list at any time, 
except for the last th ree months of its 
validity. The contracting authority shall 
invite all candidates on the list, or only some 
of them on the basis of objective and non-
discriminatory selection criteria relevant for 
the contract to be awarded, to submit a 
tender.  against invoices of EUR 2,500; 
5. Introducing a call for expression of 
interest to pre-select candidates for future restricted procedure fo r contracts of more 
than EUR 300,000.   
2. In the international restricted procedure 
referred to in point (a) of paragraph 1, the contract 2. In the international restricted procedure 
referred to in point (a) of paragraph 1, the contract  
 
EN  Error! Unknown document property name.  EN notice shall state the number  of candidates who will 
be invited to submit tenders. For service contracts the number of tenderers sha ll be within a range of 
four to eight. The number of candidates allowed to 
submit tenders must be sufficient to ensure genuine competition. notice shall state the number  of candidates who will 
be invited to submit tenders. For service contracts the number of tenderers sha ll be within a range of 
four to eight. The number of candidates allowed to 
submit tenders must be sufficient to ensure genuine competition. 
The list of selected candidates shall be published on the Commission's Internet site. The list of selected candidates shall be published on 
the Commission's Internet site.  
If the number of candidates satisfying the selection 
criteria or the minimum cap acity levels is less than 
the minimum number, the contracting authority may invite to submit a tender only those candidates who satisfy the criteria to submit a tender. If the number of candidates satisfying the selection 
criteria or the minimum cap acity levels is less than 
the minimum number, the contracting authority may invite to submit a tender only those candidates who satisfy the criteria to submit a tender.  
3. Under the negotiated procedure referred to 
in point (b) of paragr aph 1, the contracting 
authority shall draw up a list of at least three tenderers of its choice . The procedure involves 
limited competitive tender ing, without publication 
of a notice and shall be  known as a competitive 
negotiated procedure not covered by Article 124. 3. Under the negotiated procedure referred to 
in point (b) of paragr aph 1, the contracting 
authority shall draw up a list of at least three tenderers of its choice . The procedure involves 
limited competitive tender ing, without publication 
of a notice and shall be  known as a competitive 
negotiated procedure not covered by Article 124.  
Tenders shall be opened and evaluated by an 
evaluation committee with the necessary technical 
and administrative expertise. The members of the evaluation committee must sign a declaration of impartiality. Tenders shall be opened and evaluated by an 
evaluation committee with the necessary technical and administrative expertise. The members of the evaluation committee must sign a declaration of impartiality.  
If following consultation of the tenderers, the 
contracting authority recei ves only one tender that If following consultation of the tenderers, the 
contracting authority recei ves only one tender that  
 
EN  Error! Unknown document property name.  EN is administrative and technically valid, the contract 
may be awarded provided that the award criteria are met. is administrative and technically valid, the contract 
may be awarded provided that the award criteria are met. 
 3a. For legal services within the meaning of 
Annex IIB to Directive 2004/18/EC, the 
contracting authorities may use the competitive 
negotiated procedure, whatever the estimated 
value of the contract.   
4. The bids shall be sent in a package or outer 
envelope containing two sepa rate sealed envelopes, 
one bearing the words Enve lope A — Technical bid 
and the other the words Envelope B — Financial bid. The outer envelope shall bear: 4. The bids shall be sent in a package or outer 
envelope containing two sepa rate sealed envelopes, 
one bearing the words Enve lope A — Technical bid 
and the other the words Envelope B — Financial bid. The outer envelope shall bear:  
(a) the address indicated in the tender 
documents for the submission of tenders; (a) the address indicated in the tender 
documents for the submission of tenders;  
(b) the reference to the call for tenders to which 
the tenderer is responding; (b) the reference to the call for tenders to which 
the tenderer is responding;  
(c) where appropriate, th e numbers of the lots 
for which a tender is being submitted; (c) where appropriate, th e numbers of the lots 
for which a tender is being submitted;  
(d) the phrase «Not to be opened before the 
tender-opening session», in the language of the tender documents. (d) the phrase «Not to be opened before the 
tender-opening session», in the language of the tender documents.  
If interviews were envisaged in the tender 
documents, the selection board may interview the 
principal members of the team of experts proposed If interviews were envisaged in the tender 
documents, the selection board may interview the 
principal members of the team of experts proposed  
 
EN  Error! Unknown document property name.  EN in the technically acceptable bids, after establishing 
its written provisional conclusions and before 
definitively concluding the evaluation of the technical bids. In such cases the experts shall be interviewed by the selection board, preferably collectively if they form a team, and at intervals close enough to allow comparisons to be made. Interviews shall be conducted in accordance with a standard model agreed in advance by the selection 
board and applied to all the experts or teams called 
for interview. The date and time of the interview must be communicated to the tenderers at least ten calendar days in advance. In cases of force 
majeure , preventing the tenderer from attending the 
interview, a new date and time must be sent to the tenderer. in the technically acceptable bids, after establishing 
its written provisional conclusions and before 
definitively concluding the evaluation of the technical bids. In such cases the experts shall be interviewed by the selection board, preferably collectively if they form a team, and at intervals close enough to allow comparisons to be made. Interviews shall be conducted in accordance with a standard model agreed in advance by the selection 
board and applied to all th e experts or teams called 
for interview. The date and time of the interview must be communicated to the tenderers at least ten calendar days in advance. In cases of force 
majeure , preventing the tenderer from attending the 
interview, a new date and time must be sent to the tenderer. 
5. The contract award criteria shall serve to identify the tender offering best value for money. 5. The contract award criteria shall serve to 
identify the tender offering best value for money.  
The tender offering best value for money shall be 
selected using an 80/20 weighting distribution between technical quality and price. For that purpose: The tender offering best value for money shall be 
selected using an 80/20 weighting distribution between technical quality and price. For that purpose:  
(a) the score awarded to the technical bids shall 
be multiplied by 0,80; (a) the score awarded to the technical bids shall 
be multiplied by 0,80;  
(b) the score awarded to the price bids shall be 
multiplied by 0,20. (b) the score awarded to the price bids shall be 
multiplied by 0,20.  
 
EN  Error! Unknown document property name.  EN Article 242 
Use of the negotiated procedure for service 
contracts  
(Article 167 of the Financial Regulation) Article 242  
Use of the negotiated procedure for service 
contracts  
(Article 167 of the Financial Regulation)   
1. For service contracts, c ontracting authorities may 
use the negotiated procedur e with a single tender in 
the following cases:  
(a) where, for reasons of extreme urgency 
brought about by events which the contracting authorities could not have  foreseen and which can 
in no way be attributed to them, the time limit for the procedures referred to in points (a), (b) and (c) of Article 91(1) of the Financial Regulation cannot 
be kept;  
(b) where the services are entrusted to public-
sector bodies or to non-pr ofit institutions or 
associations and relate to activities of an institutional nature or  designed to provide 
assistance to peoples in the social field;  
(c) for services which are an extension of 
services already started, subject to the conditions 
laid down in paragraph 2;  
(d) where the tender procedure has been 
unsuccessful, that is to say, where no qualitatively and/or financially worthw hile tender has been 1. For service contracts, c ontracting authorities may 
use the negotiated procedur e with a single tender in 
the following cases:  
(a) where, for reasons of extreme urgency 
brought about by events which the contracting authorities could not have  foreseen and which can 
in no way be attributed to them, the time limit for the procedures referred to in points (a), (b) and (c) of Article 91(1) of the Financial Regulation cannot 
be kept;  
(b) where the services are entrusted to public-
sector bodies or to non-pr ofit institutions or 
associations and relate to activities of an institutional nature or  designed to provide 
assistance to peoples in the social field;  
(c) for services which are an extension of 
services already started, subject to the conditions laid down in paragraph 2;  
(d) where the tender procedure has been 
unsuccessful, that is to say, where no qualitatively and/or financially worthw hile tender has been 1. It is proposed that  negotiated procedure 
with a single tender is immediately used if the use of the framework contract has failed. So far, after failure of a framework contract, competitive negotiated procedure has to fail before a single-tender negotiated procedure is allowed.  
2. It is proposed that single-tender 
negotiated procedure can be used if a 
contract has to be concluded following an 
early termination of an existing one. 
3. It is proposed to delete the obligation to 
obtain the prior permission of the AOD to use the single-tender negotiated procedure. 
4. The same exception for legal services 
should be introduced as applies to general procurement. 
5. It is proposed that single-tender 
negotiated procedure is available for multiple, not just one, prolongation of an existing contract. The limitation on value 
 
EN  Error! Unknown document property name.  EN received, in which case, af ter cancelling the tender 
procedure, the contracti ng authority may negotiate 
with one or more tenderers of its choice, from among those that took part in the invitation to tender, provided that the original terms of the contract are not subs tantially altered;  
(e) where the contract concerned follows a 
contest and must, under th e rules applying, be 
awarded to the successful can didate or to one of the 
successful candidates, in wh ich case, all successful 
candidates shall be invited to participate in the negotiations;  
(f) where, for technical reasons, or for reasons 
connected with the protection of exclusive rights, the contract can be awarded only to a particular service provider.  
(g) where one attempt for the use of the 
competitive negotiated procedure following the unsuccessful use of a framework contract has failed. In this case, after cancelling the competitive negotiated procedure, the contracting authority may 
negotiate with one or more  tenderers of its choice, 
from among those that took part in the invitation to tender, provided that the original terms of the contract are not substantially altered.  
(h) For contracts declared to be secret, or for 
contracts whose performance must be accompanied by special security measures or when the protection received, in which case, after cancelling the tender 
procedure, the contracti ng authority may negotiate 
with one or more tenderers of its choice, from among those that took part in the invitation to tender, provided that the original terms of the contract are not subs tantially altered;  
(e) where the contract concerned follows a 
contest and must, under th e rules applying, be 
awarded to the successful can didate or to one of the 
successful candidates, in wh ich case, all successful 
candidates shall be invited to participate in the negotiations;  
(f) where, for technical reasons, or for reasons 
connected with the protect ion of exclusive rights, 
the contract can be awarded only to a particular service provider.  
(g) where one attempt for the use of the 
competitive negotiated procedure or 
following the 
unsuccessful  the use of a framework contract has  
have  failed. In this case, after cancelling the 
competitive negotiated procedure or the specific 
procedure under the framework contract , the 
contracting authority may negotiate with one or 
more tenderers of its choice, from among those that took part in the invitation to tender, provided that 
the original terms of the contract are not substantially altered.  
(h) For contracts declared to be secret, or for and duration of the extension would remain.  
 
EN  Error! Unknown document property name.  EN of the essential interests of the European Union or 
the beneficiary country so requires.  
For the purposes of point (a) of the first 
subparagraph, operations carried out in crisis situations as referred to in Article 168(2) shall be 
considered to satisfy the test of extreme urgency. 
The authorising officer by delegation, where appropriate in concertation with the other authorising officers by delegation concerned, shall 
establish that a situation of extreme urgency exists 
and shall review his decision regularly with regard to the principle of sound financial management.  
Where the Commission is not the contracting 
authority, the use of the negotiated procedure is subject to the prior agreement of the responsible authorising officer. 
      
 contracts whose performance must be accompanied 
by special security measures or when the protection of the essential interests of the European Union or the beneficiary country so requires.  
(i) where a new contract has to be concluded 
after early termination of  an existing contract;  
For the purposes of point (a) of the first 
subparagraph, operations carried out in crisis situations as referred to in Article 168(2) shall be 
considered to satisfy the test of extreme urgency. 
The authorising officer by delegation, where appropriate in concertation with the other authorising officers by delegation concerned, shall establish that a situation of extreme urgency exists and shall review his decision regularly with regard to the principle of sound financial management.  
Where the Commission is not the contracting 
authority, the use of the nego tiated procedure is 
subject to the prior agreement of the responsible 
authorising officer  
 
 
 
EN  Error! Unknown document property name.  EN 2. Services which are an extension of services 
already started, as referre d to in point (c) of 
paragraph 1, are as follows:  
(a) additional services no t covered by the principal 
contract but which, as a result of unforeseen circumstances, have become necessary for the performance of the contract, provided that the additional service cannot  be technically and 
economically separated from the principal contract 
without serious inconvenience for the contracting 
authority and the aggregate amount of additional services does not exceed 50 % of the value of the 
principal contract;  
(b) additional services consisting in the repetition 
of similar services entrusted to the contractor providing services under a first contract, provided that:  
(i) a contract notice was published for the first 
service and the possibility of using the negotiated 
procedure for new services  for the project and the 
estimated cost were clearly indicated in the contract 
notice published for the first service.  
(ii) the extension of the c ontract is a single one and 
for a value and duration not exceeding the value and the duration of the initial contract. 2. Services which are an extension of services 
already started, as refe rred to in point © of 
paragraph 1, are as follows:  
(a) additional services no t covered by the principal 
contract but which, as a result of unforeseen circumstances, have become necessary for the performance of the contract, provided that the additional service cannot  be technically and 
economically separated from the principal contract 
without serious inconvenience for the contracting 
authority and the aggregate amount of additional services does not exceed 50 % of the value of the 
principal contract;  
(b) additional services consisting in the repetition 
of similar services entrusted to the contractor providing services under a first contract, provided that:  
(i) a contract notice was published for the first 
service and the possibility of using the negotiated 
procedure for new services  for the project and the 
estimated cost were clearly indicated in the contract 
notice published for the first service.  
(ii) the extension of the c ontract is a single one and
 
for a value and duration not exceeding the value and the duration of the initial contract.  
 
EN  Error! Unknown document property name.  EN Article 243  
Thresholds and procedures for awarding supply 
contracts  
(Article 167 of the Financial Regulation) Article 243  
Thresholds and procedures for awarding supply 
contracts  
(Article 167 of the Financial Regulation)  
1. The thresholds and procedures referred to in 
Article 167 of the Financia l Regulation shall be as 
follows for supply contracts: 
(a) for contracts with a value of EUR 150 000 
or more: an international open invitation to tender 
within the meaning of Article 122(2) and point (a) 
of Article 240(2);  
(b) for contracts with a value of EUR 60 000 or 
more but less then EUR 150 000: a local open invitation to tender within the meaning of Article 122(2) and point (b) of Article 240(2);  
(c) for contracts with a value of less than EUR 
60 000: competitive negotiated procedure within the meaning of paragraph 2.  
Contracts with a value of less than or equal to EUR 
10 000 may be awarded on the basis of a single tender.  1. The thresholds and procedures referred to in 
Article 167 of the Financia l Regulation shall be as 
follows for supply contracts: 
(a) for contracts with a value of EUR 150 
000300 000  or more: an international open 
invitation to tender within the meaning of Article 
122(2) and point (a) of Article 240(2);  
(b) for contracts with a value of EUR 60 000 or 
more but less then EUR 150 000 300 000 : a 
framework contract or:  
i) for contracts of a value of EUR 100 000 or 
more but less than EUR 300 000:  local open 
invitation to tender within the meaning of Article 122(2) and point (b) of Article 240(2);  
(c
ii) for contracts with a value of less than EUR 
60 000 100 000 : competitive negotiated procedure 
within the meaning of paragraph 2. 
(c) payments for amounts less than or equal 
EUR 2 500 in respect of item of expenditure may 
consist simply in payment against invoices 
without prior acceptance of a tender;  1. Proposal to increa se the thresholds 
interval for local open invitation to tender from EUR 60,000 – 200,000 to EUR 100,000 – 300,000. 
2. Proposal to increase the thresholds for 
negotiated procedure without publication 
with three tenderers for supply contracts 
from EUR 60,000 to 100,000. 
3. Threshold for a sing le tender should be 
increased from EUR 10,000 to 20,000. 
4. Introduction of a possibility to conclude 
framework contracts for supplies with a value of less than EUR 300,000.  
5. Threshold for a single tender is proposed 
to increase from EUR 10,000 to 20,000.  
 
EN  Error! Unknown document property name.  EN Contracts with a value of less than or equal to EUR 
10 000 20 000 may be awarded on the basis of a 
single tender.  
2. Under the negotiated procedure referred to 
in point (c) of paragraph 1, the contracting authority shall draw up a list of at least three suppliers of its choice. The procedure involves limited competitive tender ing, without publication 
of a notice and shall be  known as a competitive 
negotiated procedure not covered by Article 124. 2. Under the negotiated procedure referred to 
in point (c) of paragraph 1, the contracting authority shall draw up a list of at least three suppliers of its choice. The procedure involves limited competitive tender ing, without publication 
of a notice and shall be  known as a competitive 
negotiated procedure not covered by Article 124.  
Tenders shall be opened and evaluated by an 
evaluated by an evaluation committee with the necessary technical and ad ministrative expertise. 
The members of the evaluation committee must sign a declaration of impartiality. Tenders shall be opened and evaluated by an 
evaluated by an evaluation committee with the necessary technical and ad ministrative expertise. 
The members of the evaluation committee must sign a declaration of impartiality.  
If following the consultation of the suppliers, the 
contracting authority receiv es only one tender that s 
administrative and technically valid, the contract may be awarded provided that the award criteria are met. If following the consultation of the suppliers, the 
contracting authority receiv es only one tender that s 
administrative and technically valid, the contract may be awarded provided that the award criteria are met.  
3. Each technical and financial bid must be 
placed in a single sealed envelope, itself placed in a package or outer envelope. The inner envelope shall bear: 3. Each technical and financial bid must be 
placed in a single sealed envelope, itself placed in a package or outer envelope. The inner envelope shall bear:  
(a) the address indicated in the tender 
documents for the submission of tenders; (a) the address indicated in the tender 
documents for the submission of tenders;  
 
EN  Error! Unknown document property name.  EN (b) the reference to the call for tenders to which 
the tenderer is responding; (b) the reference to the call for tenders to which 
the tenderer is responding;  
(c) where appropriate, th e numbers of the lots 
for which a tender is being submitted; (c) where appropriate, th e numbers of the lots 
for which a tender is being submitted;  
(d) the phrase «Not to be opened before the 
tender-opening session», in the language of the tender documents. (d) the phrase «Not to be opened before the 
tender-opening session», in the language of the tender documents.  
At the place and time set in the tender documents, 
the tenders shall be opened in public by the 
evaluation committee. At the public tender-opening 
session, the names of the tenderers, the prices quoted, the provision of the necessary tender guarantee and any other formality which the contracting authority consid ers appropriate must be 
announced. At the place and time set in the tender documents, 
the tenders shall be opened in public by the 
evaluation committee. At the public tender-opening 
session, the names of the tenderers, the prices quoted, the provision of the necessary tender guarantee and any other formality which the contracting authority consid ers appropriate must be 
announced.  
4. In the case of a supply contract not 
involving after-sales serv ice, the sole award 
criterion shall be price. 4. In the case of a supply contract not 
involving after-sales serv ice, the sole award 
criterion shall be price.  
Where proposals for after-sales service or for 
training are particularly significant, the tender 
offering best value for money shall be chosen, with due account for the technical  quality of the service 
offered and the price quoted. Where proposals for after-sales service or for 
training are particularly significant, the tender 
offering best value for money shall
 may be chosen, 
with due account for the technical quality of the 
service offered and the price quoted. Proposal to replace "shall" by "may". 
Article 244   
Use of the negotiated procedure for supply Article 244   
Use of the negotiated procedure for supply  
 
EN  Error! Unknown document property name.  EN contracts   
(Article 167 of the Financial Regulation) contracts   
(Article 167 of the Financial Regulation) 
1. Supply contracts may be awarded by negotiated procedure with a single tender in the following cases:  
 (a) where, for reasons of extreme urgency brought about by events which the contracting authorities could not have foreseen and which can in no way be attributed to them, the time-
limit for the procedures re ferred to in points (a), 
(b) and (c) of Article 91(1) of the Financial 
Regulation cannot be kept;  
 (b) where warranted by the nature or particular characteristics of the supplies, for example, where performance of the contract is exclusively reserved for the holders of patents 
or licences to use patents;  
 (c) for additional deliveries by the original supplier intended either as a partial replacement 
of normal supplies or installations or as the extension of existing supplies or installations, where a change of supplier would oblige the contracting authority to acquire equipment having different technical characteristics which would result in either incompatibility or disproportionate techni cal difficulties in 
operation and maintenance;  1. Supply contracts may be awarded by negotiated 
procedure with a single tender in the following cases:  
 (a) where, for reasons of extreme urgency brought about by events which the contracting authorities could not have foreseen and which can in no way be attributed to them, the time-
limit for the procedures re ferred to in points (a), 
(b) and (c) of Article 91(1) of the Financial 
Regulation cannot be kept;  
 (b) where warranted by the nature or particular characteristics of the supplies, for example, where performance of the contract is exclusively reserved for the holders of patents 
or licences to use patents;  
 (c) for additional deliveries by the original supplier intended either as a partial replacement of normal supplies or installations or as the extension of existing supplies or installations, where a change of supplier would oblige the contracting authority to acquire equipment having different technical characteristics which would result in either incompatibility or disproportionate techni cal difficulties in 
operation and maintenance;  1. It is proposed that single-tender 
negotiated procedure can be used if a 
contract has to be concluded following an 
early termination of an existing one. 
2. It is proposed to delete the obligation to 
obtain the prior permission of the AOD to use the single-tender negotiated procedure.  
 
EN  Error! Unknown document property name.  EN  (d) where the tender procedure has been 
unsuccessful, that is where no qualitatively and/or financially worthwhile tender has been received. In such cases, after cancelling the tender procedure, the co ntracting authority may 
negotiate with one or more tenderers of its 
choice, from among those that took part in the invitation to tender, provided that the original terms of the contract are not substantially 
altered.  
 (e) where after two attempts the competitive 
negotiated tender procedure has been unsuccessful, that is to say, where no administratively and technically valid tender or no qualitatively and/or fi nancially worthwhile 
tender has been received, in which case, after cancelling the competitive negotiated procedure, the contr acting authority may 
negotiate with one or more tenderers of its 
choice, from among those that took part in the invitation to tender, provided that the original terms of the contract are not substantially 
altered.  
 (f) for contracts declared to be secret, or for contracts whose performance must be accompanied by special security measures or when the protection of th e essential interests of 
the European Union or the beneficiary country 
so requires;   (d) where the tender procedure has been unsuccessful, that is where no qualitatively and/or financially worthwhile tender has been received. In such cases, after cancelling the tender procedure, the co ntracting authority may 
negotiate with one or more tenderers of its 
choice, from among those that took part in the invitation to tender, provided that the original terms of the contract are not substantially 
altered.  
 (e) where after two attempts the competitive 
negotiated tender procedure has been unsuccessful, that is to say, where no administratively and technically valid tender or no qualitatively and/or fi nancially worthwhile 
tender has been receive d, in which case, after 
cancelling the competitive negotiated procedure, the contr acting authority may 
negotiate with one or more tenderers of its 
choice, from among those that took part in the invitation to tender, provided that the original terms of the contract are not substantially 
altered.  
 (f) for contracts declared to be secret, or for contracts whose performance must be accompanied by special security measures or when the protection of th e essential interests of 
the European Union or the beneficiary country 
so requires;  
 
EN  Error! Unknown document property name.  EN  (g) for contracts in respect of supplies quoted 
and purchases on a commodity market;  
 (h) for contracts in respect of purchases on particularly advantageous terms, either from a supplier which is definitively winding up its business activities, or from the receivers or liquidators of a bankruptcy, an arrangement with creditors, or a similar procedure under national law.  
Where the Commission is not the contracting 
authority, the use of the negotiated procedure is subject to the prior agreement of the responsible authorising officer.   (g) for contracts in respect of supplies quoted 
and purchases on a commodity market;  
 (h) for contracts in respect of purchases on particularly advantageous terms, either from a supplier which is definitively winding up its business activities, or from the receivers or 
liquidators of a bankruptcy, an arrangement with creditors, or a similar procedure under national law.  
 (i) where a new contract has to be concluded 
after early termination of an existing 
contract.  
Where the Commission is not the contracting 
authority, the use of the negotiated procedure is 
subje ct to the prior agreement of the responsible 
authorising officer.  
2. For the purposes of point  (a) of paragraph 1, 
operations carried out in cris is situations as referred 
to in Article 168(2) shall be considered to satisfy the test of extreme urgency. The authorising officer by delegation, where appropr iate in concertation 
with the other authorisi ng officers by delegation 
concerned, shall establis h that a situation of 
extreme urgency exists and shall review his decision regularly with rega rd to the principle of 
sound financial management. 2. For the purposes of point  (a) of paragraph 1, 
operations carried out in cris is situations as referred 
to in Article 168(2) shall be considered to satisfy the test of extreme urgency. The authorising officer by delegation, where appropr iate in concertation 
with the other authorisi ng officers by delegation 
concerned, shall establis h that a situation of 
extreme urgency exists and shall review his decision regularly with rega rd to the principle of 
sound financial management.  
 
EN  Error! Unknown document property name.  EN Article 245  
Thresholds and procedures for awarding works 
contracts   
(Article 167 of the Financial Regulation) Article 245  
Thresholds and procedures for awarding works 
contracts  
(Article 167 of the Financial Regulation)  
1. The thresholds and procedures referred to in 
Article 167 of the Financia l Regulation shall be as 
follows for works contracts: 
 (a) for contracts with a value of EUR 5000000 or more:  
 (i) in principle an international open invitation to tender within the m eaning of Article 122(2) 
and point (a) of Article 240(2);  
 (ii) exceptionally, in view  of the characteristics 
of certain works and after the agreement of the authorising officer responsible if the Commission is not the contracting authority, an international restricted invitation to tender within the meaning of Article 122(2) and point 
(a) of Article 240(2);  
 (b) for contracts with a value of EUR 300000 or more but less then EUR 5000000: a local open invitation to tender w ithin the meaning of 
Article 122(2) and point (b) of Article 240(2);  
 (c) for contracts with a value of less than EUR 
300000: a competitive negotiated procedure 1. The thresholds and procedures referred to in 
Article 167 of the Financia l Regulation shall be as 
follows for works contracts: 
 (a) for contracts with a value of EUR 5 000 000 or more:  
 (i) in principle an international open invitation 
to tender within the m eaning of Article 122(2) 
and point (a) of Ar ticle 240(2); or  
 (ii) exceptionally,  in view of the characteristics 
of certain works and after the agreement of the 
authorising officer responsible if the 
Commission is not the contracting auth ority, an 
international restricted invitation to tender within the meaning of Article 122(2) and point 
(a) of Article 240(2);  
 (b) for contracts with a value of EUR 300 000 or more but less then EUR 5 000 000: a local open invitation to tender within the meaning of Article 122(2) and point (b) of Article 240(2);  
 (c) for contracts with a value of less than EUR 
300 000: a competitive negotiated procedure 1. It is proposed that  for works of EUR 5 
million and above, the international restricted procedure is a full alternative, not 
an exception, for the international open procedure. Also, a prior agreement of the 
AOD for the former should not longer be 
required. 
2. It is proposed to double the threshold for 
single-tender negotiated procedure from EUR 10,000 to 20,000.  
 
EN  Error! Unknown document property name.  EN within the meaning of paragraph 2;  
Contracts with a value of less than or equal to EUR 
10000 may be awarded on the basis of a single tender.  within the meaning of paragraph 2;  
Contracts with a value of less than or equal to EUR 
10 000
20 000 may be awarded on the basis of a 
single tender.  
2. Under the negotiated procedure referred to 
in point (c) of paragraph 1, the contracting authority shall draw up a list of at least three contractors of its choice. The procedure involves limited competitive tender ing, without publication 
of a notice and shall be  known as a competitive 
negotiated procedure not covered by Article 124. 2. Under the negotiated procedure referred to 
in point (c) of paragraph 1, the contracting authority shall draw up a list of at least three contractors of its choice. The procedure involves limited competitive tender ing, without publication 
of a notice and shall be  known as a competitive 
negotiated procedure not covered by Article 124.  
Tenders shall be opened and evaluated by an 
evaluation committee with the necessary technical 
and administrative expertise. The members of the evaluation committee must sign a declaration of impartiality. Tenders shall be opened and evaluated by an 
evaluation committee with the necessary technical and administrative expertise. The members of the evaluation committee must sign a declaration of impartiality.  
If following the consultation of the contractors, the 
contracting authority recei ves only one tender that 
is administrative and technically valid, the contract may be awarded provided that the award criteria are met. If following the consultation of the contractors, the 
contracting authority recei ves only one tender that 
is administrative and technically valid, the contract may be awarded provided that the award criteria are met.  
3. The selection criteria shall cover the 
capacity of the tenderer to carry out similar contracts, in particular by reference to works carried out in recent years. With selection being made in this way and si nce inadmissible tenders 
have already been elim inated, the only award 3. The selection criteria shall cover the 
capacity of the tenderer to carry out similar contracts, in particular by reference to works carried out in recent year s. With selection being 
made in this way and si nce inadmissible tenders 
have already been elim inated, the only award  
 
EN  Error! Unknown document property name.  EN criterion shall be the price. criterion shall be the price. 
4. Each technical and financial bid must be 
placed in a single sealed envelope, itself placed in a package or outer envelope. The inner envelope shall bear: 4. Each technical and financial bid must be 
placed in a single sealed envelope, itself placed in a package or outer envelope. The inner envelope shall bear:  
(a) the address indicated in the tender 
documents for the submission of tenders; (a) the address indicated in the tender 
documents for the submission of tenders;  
(b) the reference to the call for tenders to which 
the tenderer is responding; (b) the reference to the call for tenders to which 
the tenderer is responding;  
(c) where appropriate, th e numbers of the lots 
for which a tender is being submitted; (c) where appropriate, th e numbers of the lots 
for which a tender is being submitted;  
(d) the phrase «Not to be opened before the 
tender-opening session», in the language of the tender documents. (d) the phrase «Not to be opened before the 
tender-opening session», in the language of the tender documents.  
At the place and time set in the tender documents, 
the tenders shall be opened in public by the evaluation committee. At the public tender-opening 
session, the names of the tenderers, the prices quoted, the provision of the necessary tender guarantee and any other formality which the contracting authority thi nks appropriate must be 
announced. At the place and time set in the tender documents, 
the tenders shall be opened in public by the evaluation committee. At the public tender-opening 
session, the names of the tenderers, the prices quoted, the provision of the necessary tender guarantee and any other formality which the contracting authority thi nks appropriate must be 
announced.  
Article 246  
Use of the negotiated procedure for works Article 246  
Use of the negotiated procedure for works  
 
EN  Error! Unknown document property name.  EN contracts  
(Article 167 of the Financial Regulation) contracts  
(Article 167 of the Financial Regulation) 
1. Works contracts may be awarded by negotiated procedure with a single tender in the following cases:  
 (a) where, for reasons of extreme urgency brought about by events which the contracting authorities could not have foreseen and which can in no way be attributed to them, the time-
limit for the procedures re ferred to in points (a), 
(b) and (c) of Article 91(1) of the Financial 
Regulation cannot be kept.  
 (b) for additional works not included in the initial contract concluded but which have, through unforeseen circumstances, become necessary for carrying out the work described therein, subject to the conditions laid down in 
paragraph 2;  
 (c) where the tender procedure has been unsuccessful, that is where no qualitatively and/or financially worthwhile tender has been received. In such cases, after cancelling the tender procedure, the co ntracting authority may 
negotiate with one or more tenderers of its 
choice, from among those that took part in the invitation to tender, provided that the original terms of the contract are not substantially 
altered.  1. Works contracts may be awarded by negotiated 
procedure with a single tender in the following cases:  
 (a) where, for reasons of extreme urgency brought about by events which the contracting authorities could not have foreseen and which can in no way be attributed to them, the time-
limit for the procedures re ferred to in points (a), 
(b) and (c) of Article 91(1) of the Financial 
Regulation cannot be kept.  
 (b) for additional works not included in the initial contract concluded but which have, through unforeseen circumstances, become necessary for carrying out the work described therein, subject to the conditions laid down in 
paragraph 2;  
 (c) where the tender procedure has been unsuccessful, that is where no qualitatively and/or financially worthwhile tender has been received. In such cases, after cancelling the tender procedure, the co ntracting authority may 
negotiate with one or more tenderers of its 
choice, from among those that took part in the invitation to tender, provided that the original terms of the contract are not substantially 
altered.  1. It is proposed that single-tender 
negotiated procedure can be used if a 
contract has to be concluded following an 
early termination of an existing one. 
 2. It is proposed to delete the obligation to 
obtain the prior permission of the AOD to 
use the single-tender negotiated procedure 
(NP). 
 
EN  Error! Unknown document property name.  EN  (d) where the competitive negotiated tender 
procedure, after two attempts, has been unsuccessful, that is to say, where no administratively and technically valid tender or no qualitatively and/or fi nancially worthwhile 
tender has been received, in which case, after cancelling the competitive negotiated procedure, the contr acting authority may 
negotiate with one or more tenderers of its 
choice, from among those that took part in the 
invitation to tender, provided that the original terms of the contract are not substantially 
altered.  
 (e) for contracts declared to be secret, or for contracts whose performance must be accompanied by special security measures or when the protection of th e essential interests of 
the European Union or the beneficiary country 
so requires.  
For the purposes of point (a) of the first 
subparagraph, operations carried out in crisis situations as referred to in Article 168(2) shall be 
considered to satisfy the test of extreme urgency. 
The authorising officer by delegation, where appropriate in concertation with the other authorising officers by delegation concerned, shall establish that a situation of extreme urgency exists and shall review his decision regularly with regard to the principle of sound financial management.   (d) where the competitive negotiated tender procedure, after two attempts, has been unsuccessful, that is to say, where no administratively and technically valid tender or no qualitatively and/or fi nancially worthwhile 
tender has been receive d, in which case, after 
cancelling the competitive negotiated procedure, the contr acting authority may 
negotiate with one or more tenderers of its 
choice, from among those that took part in the 
invitation to tender, provided that the original terms of the contract are not substantially 
altered.  
 (e) for contracts declared to be secret, or for contracts whose performance must be accompanied by special security measures or when the protection of th e essential interests of 
the European Union or the beneficiary country 
so requires.  
 (f) where a new contract has to be concluded 
after early termination of an existing 
contract . 
For the purposes of point (a) of the first 
subparagraph, operations carried out in crisis situations as referred to in Article 168(2) shall be 
considered to satisfy the test of extreme urgency. 
The authorising officer by delegation, where appropriate in concertation with the other authorising officers by delegation concerned, shall 
 
EN  Error! Unknown document property name.  EN Where the Commission is not the contracting 
authority, the use of the negotiated procedure is subject to the prior agreement of the responsible authorising officer.  establish that a situation of extreme urgency exists 
and shall review his decision regularly with regard to the principle of sound financial management.  
Where the Commission is not the contracting 
authority, the use of the negotiated procedure is 
subject to the prior agreement of the responsible 
authorising officer.  
2. The additional works referred to in point (b) 
of paragraph 1 shall be aw arded to the contractor 
already carrying out the work: 2. The additional works referred to in point (b) 
of paragraph 1 shall be aw arded to the contractor 
already carrying out the work:  
(a) where such works cannot be technically or 
economically separated from the main contract without serious inconvenience for the contracting authority; (a) where such works cannot be technically or 
economically separated from the main contract without serious inconvenience for the contracting authority;  
(b) where such works, although separable from 
the performance of the origin al contract, are strictly 
necessary for its completion; (b) where such works, although separable from 
the performance of the origin al contract, are strictly 
necessary for its completion;  
(c) where the aggregate value of contracts 
awarded for additional works does not exceed 50 % of the value of the principal contract. (c) where the aggregate value of contracts 
awarded for additional works does not exceed 50 % of the value of the principal contract.  
Article 247 
Use of the negotiated procedure for buildings 
contracts 
(Article 167 of the Financial Regulation) Article 247 
Use of the negotiated procedure for buildings 
contracts 
(Article 167 of the Financial Regulation)   
 
EN  Error! Unknown document property name.  EN Buildings contracts as re ferred to in Article 235 
may be awarded by negotiated procedure after the local market has been prospected and after the Commission has given its agreement if it is not the contracting authority.  Buildings contracts as re ferred to in Article 235 
may be awarded by negotiated procedure after the local market has been prospected and after the Commission has given its agreement if it is not the 
contracting authority  responsible authorising 
officer has given hi s agreement if the 
Commission is not the contracting authority .  Clarification that it is the AO, not the 
College.  
Article 248 
Choice of procurement procedure for mixed 
contracts 
(Article 167 of the Financial Regulation) Article 248 
Choice of procurement procedure for mixed 
contracts 
(Article 167 of the Financial Regulation)  
In the case of contracts involving both supplies of 
services and supplies of  goods or execution of 
works, the contracting authority, after the Commission has given its agreement if it is not the contracting authority, shall determine the thresholds and procedures applicable by reference to the predominant aspect assessed on the basis of the relative value and the ope rational significance of 
the various components of the contract. In the case of contracts involving both supplies of 
services and supplies of  goods or execution of 
works, the contracting authority, after the Commission has given its agreement if it is not the contracting authority, shall determine the thresholds and procedures applicab le by reference to the 
predominant aspect assessed on the basis of the relative value and the operational significance of the various components of the contract.  
Article 249 
Tender documents  
(Article 167 of the Financial Regulation)  Article 249 
Tender documents  
(Article 167 of the Financial Regulation)  
1. The tender documents re ferred to in Article 
130 shall be drawn up on the basis of best international practices a nd in accordance with the 1. The tender documents re ferred to in Article 
130 shall be drawn up on the basis of best international practices a nd in accordance with the  
 
EN  Error! Unknown document property name.  EN provisions of this Chapter regarding advertising and 
contacts between the c ontracting authority and 
tenderers. provisions of this Chapter regarding advertising and 
contacts between the c ontracting authority and 
tenderers. 
2. For service contracts, the tender file must contain the following documents: 2. For service contracts, the tender file must 
contain the following documents:  
(a) instructions to tenderers, which must 
include: (a) instructions to tenderers, which must 
include:  
(i) the type of contract; (i ) the type of contract;  
(ii) the award criteria and their weightings; (ii) the award criteria and their weightings;  
(iii) the possibility of interviews and the 
timetable for them; (iii) the possibility of interviews and the 
timetable for them;  
(iv) whether variants are permitted; (iv) whether variants are permitted;  
(v) the proportion of sub-contracting which 
may be authorised; (v) the proportion of sub-contracting which 
may be authorised;  
(vi) the maximum budget available for the 
contract; (vi) the maximum budget available for the 
contract;  
(vii) the currency of tenders; (vii) the currency of tenders;  
(b) shortlist of candidates selected (mentioning 
the ban on association); (b) shortlist of candidates selected (mentioning 
the ban on association);  
(c) general conditions for service contracts; (c ) general conditions for service contracts;  
 
EN  Error! Unknown document property name.  EN (d) specific conditions which amplify, 
supplement or derogate from the general conditions; (d) specific conditions which amplify, 
supplement or derogate from the general conditions;  
(e) terms of reference indicating the planned 
timetable for the project and dates from which it is planned that the principal experts must be available; (e) terms of reference indicating the planned 
timetable for the project and dates from which it is planned that the principal experts must be available;  
(f) price schedule (for completion by the 
tenderer); (f) price schedule (for completion by the 
tenderer);  
(g) tender form; (g) tender form;  
(h) contract form; (h) contract form;  
(i) bank (or similar) guarantee forms for the 
payment of pre-financing. (i) bank (or similar) guarantee forms for the 
payment of pre-financing. 
Point (h) of the first subparagraph shall not 
apply to cases where, due to exceptional and  
duly justified circumstances, the model contract 
cannot be used.   
3. For supply contracts, the tender file must 
contain the following documents: 3. For supply contracts, the tender file must 
contain the following documents:  
(a) instructions to tenderers, which must 
include: (a) instructions to tenderers, which must 
include:  
(i) the selection and award criteria; (i ) the selection and award criteria;  
 
EN  Error! Unknown document property name.  EN (ii) whether variants are authorised; (i i) whether variants are authorised;  
(iii) the currency of tenders; (iii) the currency of tenders;  
(b) general conditions for supply contracts; (b ) general conditions for supply contracts;  
(c) specific conditions which amplify, 
supplement or derogate from the general conditions; (c) specific conditions which amplify, 
supplement or derogate from the general conditions;  
(d) technical annex containing any plans, 
technical specifications a nd the planned timetable 
for performance of the contract; (d) technical annex containing any plans, 
technical specifications a nd the planned timetable 
for performance of the contract;  
(e) price schedule (for completion by the 
tenderer); (e) price schedule (for completion by the 
tenderer);  
(f) tender form; (f) tender form;  
(g) contract form; (g) contract form;  
(h) bank (or similar) guarantee forms for: (h ) bank (or similar) guarantee forms for:  
(i) the tender; (i) the tender;  
(ii) payment of advances, and (i i) payment of advances, and  
(iii) proper performance. (iii) proper performance. 
Point (g) of the first subparagraph shall not 
apply to cases where, due to exceptional and 
duly justified circumstances, the model contract  
 
EN  Error! Unknown document property name.  EN cannot be used.  
4. For works contracts, the tender file must 
contain the following documents: 4. For works contracts, the tender file must 
contain the following documents:  
(a) instructions to tenderers, which must 
include: (a) instructions to tenderers, which must 
include:  
(i) the selection and award criteria; (i ) the selection and award criteria;  
(ii) whether variants are authorised; and (i i) whether variants are authorised; and  
(iii) the currency of tenders; (iii) the currency of tenders;  
(b) general conditions for works contracts; (b) general conditions for works contracts;  
(c) specific conditions which amplify, 
supplement or derogate from the general conditions; (c) specific conditions which amplify, 
supplement or derogate from the general conditions;  
(d) technical annexes containing plans, 
technical specifications a nd the planned timetable 
for performance of the contract; (d) technical annexes containing plans, 
technical specifications a nd the planned timetable 
for performance of the contract;  
(e) price schedule (for completion by the 
tenderer) and the brea kdown of prices; (e) price schedule (for completion by the 
tenderer) and the brea kdown of prices;  
(f) tender form; (f) tender form;  
(g) contract form; (g) contract form;  
(h) bank (or similar) guarantee forms for: (h ) bank (or similar) guarantee forms for:  
 
EN  Error! Unknown document property name.  EN (i) the tender; (i) the tender;  
(ii) payment of advances; (i i) payment of advances;  
(iii) proper performance. (iii) proper performance. 
Point (g) of the first subparagraph shall not 
apply to cases where, due to exceptional and 
duly justified circumstances, the model contract 
cannot be used.   
5. In the event of cont radiction, the specific 
conditions referred to in poi nt (d) of paragraph 2, 
point (c ) of paragraph 3 and point (c) of paragraph 
4 shall override the general conditions. 5. In the event of cont radiction, the specific 
conditions referred to in poi nt (d) of paragraph 2, 
point (c ) of paragraph 3 and point (c) of paragraph 
4 shall override the general conditions.  
 6. Where contracting auth orities require the 
production of certificates drawn up by 
independent bodies attesting the compliance of 
the economic operator with certain quality 
assurance standards, they shall refer to quality 
assurance systems based on the relevant 
European or, where appropriate, international 
standards certified by bodies conforming to the 
European or international standards concerning 
certification. They shall also accept other 
evidence of equivalent quality assurance 
measures from economic operators.  New provision introducing a reference to 
international standards as a possible frame of reference, especially when procurement occurs for the benefit of the third country, in the third country and by local contractors. In 
such a context, European standards may be irrelevant and a reliance on them may unduly exclude local contractors in 
contradiction to the development goals. As a consequence of Article 249(6), Article 137(3a) would be excl uded from applying 
to this part by being added to Article 237(1).  
 
EN  Error! Unknown document property name.  EN Article 250  
Guarantees  
(Articles 102 and 167 of the Financial Regulation) Article 250  
Guarantees   
(Articles 102 and 167 of the Financial Regulation)  
1. By way of derogation from Article 150, 
advance guarantees shall be  denominated in euro or 
in the currency of the contract they cover. 1. By way of derogation from Article 150, 
advance guarantees shall be  denominated in euro or 
in the currency of the contract they cover.  
2. The contracting authority may demand a 
tender guarantee, within the meaning of this Chapter, representing 1 % to 2 % of the overall 
value of the contract  for supply and works 
contracts; it shall comply with the provisions of Article 150. It shall be releas ed when the contract is 
awarded. It shall be retained if a tender submitted by the final date for submission is subsequently withdrawn. 2. The contracting authority may demand a 
tender guarantee, within the meaning of this Chapter, representing 1 % to 2 % of the overall 
value of the contract  for supply and works 
contracts; it shall comply with the provisions of Article 150. It shall be releas ed when the contract is 
awarded. It shall be retained if a tender submitted by the final date for submission is subsequently withdrawn.  
3. Where the pre-financing exceeds EUR 150000, a 
guarantee shall be required. However, where the contractor is a public body, the responsible authorising officer ma y, depending on his risk 
assessment, waive that obligation.  
The guarantee shall be rele ased as and when the 
pre-financing is deducted from interim payments or payments of balances made to the contractor in accordance with the terms of the contract.  3. Where the pre
-financing exceeds EUR 150 000 
300 000 , a guarantee shall be required. However, 
where the contractor is a national or international  
public body, the responsible  authorising officer 
may, depending on his risk assessment, waive that 
obligation.  
The guarantee shall be released as and when the 
pre-financing is deducted from interim payments or 
payments of balances made to the contractor in 
accordance with the terms of the contract.   Deletion: guarantee s on pre-financing 
should be governed by the general regime.  
 
EN  Error! Unknown document property name.  EN 4. A performance guarantee may be required 
by the contracting authority for an amount set in the 
tender file and corresponding to between 5 and 10 % of the total value of th e contract. This guarantee 
shall be determined on the basis of objective criteria such as the type and value of the contract. 4. A performance guarantee may be required 
by the contracting authority for an amount set in the 
tender file and corresponding to between 5 and 10 % of the total value of th e contract. This guarantee 
shall be determined on the basis of objective criteria such as the type and value of the contract.  
However, a performance guarantee shall be 
required where the following thresholds are exceeded: However, a performance guarantee shall be 
required where the following thresholds are exceeded:  
(i) EUR 345 000 for works contracts, (i ) EUR 345 000 for works contracts,  
(ii) EUR 150 000 for supply contracts. (i i) EUR 150 000 for supply contracts.  
The guarantee shall remain valid at least until final 
acceptance of the supplies and works. If the contract is not properly performed the entire guarantee shall be retained. The guarantee shall remain valid at least until final 
acceptance of the supplies and works. If the contract is not properly performed the entire guarantee shall be retained.  
Article 251   
Time-limits for procedures   
(Article 167 of the Financial Regulation) Article 251   
Time-limits for procedures  
(Article 167 of the Financial Regulation)  
1. Tenders must reach the contracting authority at 
the address and by no later than the date and time 
shown in the invitation to tender. The time limit for receipt of tenders and requests to participate, laid down by the contracting au thorities, shall be long 
enough to allow interested parties a reasonable and 
appropriate period to prepare and submit their 1. Tenders must reach the contracting authority at 
the address and by no later than the date and time 
shown in the invitation to tender. The time limit for receipt of tenders and requests to participate, laid down by the contracting au thorities, shall be long 
enough to allow interested parties a reasonable and 
appropriate period to prepare and submit their 1. It is proposed that questions by tenderers 
may be sent and answ ers by the contracting 
authority shall be pr ovided until the closing 
date for receipt of the tenders. The moratorium of 21 days for questions and of 11 days for answers would thus be deleted.  
 
EN  Error! Unknown document property name.  EN tenders. 
For service contracts, the minimum time between 
the date of dispatch of th e letter of invitation to 
tender and the final date for receipt of tenders shall be fifty days. However, in urgent cases and with the 
prior authorisation of the Commission, other time 
limits may be authorised. 
2. Tenderers may put ques tions in writing no later 
than twenty-one days befo re the closing date for 
receipt of tenders. The c ontracting authority shall 
provide the answers to th e questions no later than 
eleven days before the cl osing date for submission 
of tenders.  
3. In international restri cted procedures, the time 
limit for receipt of tenders shall be no less than thirty days from the date on which the contract notice is published. The pe riod between the date on 
which the letter of invitation is sent and the final date for the receipt of tenders shall be no less than fifty days. However, in certain exceptional cases and with the prior author isation of the Commission, 
other time limits may be authorised. 
4. In international open pr ocedures, the time limits 
for receipt of tenders, running from the date on which the contract notice is sent, shall be at least: 
(a) ninety days for works contracts, tenders. 
For service contracts, the minimum time between 
the date of dispatch of th e letter of invitation to 
tender and the final date for receipt of tenders shall be fifty days. However, in urgent cases and with the 
prior authorisation of the Commission,  other time 
limits may be authorised. 
2. Tenderers may put ques tions in writing no later 
than twenty -one days  before the closing date for 
receipt of tenders. The c ontracting authority shall 
provide the answers to th e questions no later than 
eleven days  before the closing date for submission 
of tenders.  
3. In international restricted procedures, the time 
limit for receipt of tenders shall be no less than thirty days from the date on which the contract notice is published. The period between the date on which the letter of invitation is sent and the final date for the receipt of tenders shall be no less than fifty days. However, in certain exceptional cases and with the prior authorisation of the Commission,
 
other time limits may be authorised. 
4. In international open pr ocedures, the time limits 
for receipt of tenders, running from the date on which the contract notice is sent, shall be at least: 
(a) ninety days for works contracts, 2. It is proposed to delete the limitations on 
the validity of tenders. This should not be regulated in the legislation, but should be determined by the AOD or the contracting authority. 
3. It is proposed to de lete the requirement of 
prior authorisation of the Commission. 
 
  
 
 
 
  
 
 
 
 
 
EN  Error! Unknown document property name.  EN (b) sixty days for supply contracts. 
However, in certain exceptional cases and with the 
prior authorisation of the Commission, other time 
limits may be authorised. 
5. In local open procedures, the time limits for 
receipt of tenders, running from the date when the 
contract notice is publishe d, shall be at least: 
(a) sixty days for works contracts; (b) thirty days fo r supply contracts. 
However, in certain exceptional cases and with the 
prior authorisation of the Commission, other time 
limits may be authorised. 
6. For the competitive negotiated procedures 
referred to in point (b) of  Article 241(1), point (c) 
of Article 243(1) and poi nt (c) of Article 245(1), 
candidates shall be allowed at  least thirty days from 
the date of dispatch of th e letter of invitation to 
tender in which to submit their tenders. 
7. For service contracts, th e period of validity of the 
tenders shall be ninety ca lendar days from the final 
date for submission of tenders. In exceptional cases, before the period of  validity expires, the 
contracting authority may ask the tenderers to extend the period for a specific number of days up (b) sixty days for supply contracts. 
However, in certain exceptional cases and with the 
prior authorisation of the Commission,  other time 
limits may be authorised. 
5. In local open procedures, the time limits for 
receipt of tenders, running from the date when the 
contract notice is publishe d, shall be at least: 
(a) sixty days for works contracts; (b) thirty days fo r supply contracts. 
However, in certain exceptional cases and with the 
prior authorisation of the Commission,  other time 
limits may be authorised. 
6. For the competitive negotiated procedures 
referred to in point (b) of  Article 241(1), point (c) 
of Article 243(1) and point (c) of Article 245(1), 
candidates shall be allowed at least thirty days from 
the date of dispatch of the letter of invitation to tender in which to submit their tenders. 
7. For service contracts, th e period of validity of the 
tenders shall be ninety calendar days from the final 
date for submi ssion of tenders. In exceptional 
cases, before the period of validity expires, the 
contracting authority may ask the tenderers to 
extend the period for a specific number of days up  
  
 
 
 
 
 
  
 
 
 
  
This should not be regulated in the 
legislation, but should be determined by the 
 
EN  Error! Unknown document property name.  EN to no more than forty calendar days. The tenderer 
whose tender is selected must maintain the validity of the tender for a further sixty calendar days from the date of notification of the award of the contract. 
8. For supply contracts, the period of validity of the 
tenders shall be ninety ca lendar days from the final 
date for submission of tenders. In exceptional cases, before the period of  validity expires, the 
contracting authority may ask the tenderers to 
extend the period for a specific number of days up 
to no more than forty calendar days. The tenderer whose tender is selected must maintain the validity of the tender for a further sixty calendar days from the date of notification of the award of the contract. 
9. For works contracts, the period of validity of the 
tenders shall be ninety ca lendar days from the final 
date for submission of tenders. In exceptional cases, before the period of  validity expires, the 
contracting authority may ask the tenderers to extend the period for a specific number of days up to no more than forty calendar days. The tenderer whose tender is selected must maintain the validity of the tender for a further sixty calendar days from the date of notification of the award of the contract. 
10. The time-limits specified in paragraphs 1 to 9 
are expressed in calendar days.  to no more than forty calendar days. The tenderer 
whose tender is selected must maintain the validity 
of the tender for a furthe r sixty calendar days from 
the date of notification of the award of the contract. 
8. For supply contracts, the period of validity of the 
tenders shall be ninety calendar days from the final 
date for sub mission of tenders. In exceptional 
cases, before the period of validity expires, the 
contracting authority may ask the tenderers to 
extend the period for a specific number of days up 
to no more than forty calendar days. The tenderer 
whose tender is selecte d must maintain the validity 
of the tender for a furthe r sixty calendar days from 
the date of notification of the award of the contract. 
9. For works contracts, the period of validity of the 
tenders shall be ninety calendar days from the final 
date for su bmission of tenders. In exceptional 
cases, before the period of validity expires, the 
contracting authority may ask the tenderers to 
extend the period for a specific number of days up 
to no more than forty calendar days. The tenderer 
whose tender is select ed must maintain the validity 
of the tender for a furthe r sixty calendar days from 
the date of notification of the award of the contract.  
10. The time-limits specified in paragraphs 1 to 9  6 
are expressed in calendar days.  AOD or the contracting authority. 
  This should not be regulated in the 
legislation, but should be determined by the AOD or the contracting authority. 
   
 
This should not be regulated in the 
legislation, but should be determined by the AOD or the contracting authority. 
    
 
 
 
EN  Error! Unknown document property name.  EN  
  
 
Article 252 
Evaluation committee  
(Article 167 of the Financial Regulation) Article 252 
Evaluation committee  
(Article 167 of the Financial Regulation)  
1. All requests to particip ate and tenders declared 
as satisfying the requirem ents shall be evaluated 
and ranked by an evaluation committee on the basis of the exclusion, select ion and award criteria 
announced in advance. This committee shall have an odd number of members, at  least three, with all 
the necessary technical and administrative expertise to assess the tenders.  
2. If the Commission is not the contracting 
authority, it must be kept systematically informed. It shall always be invited as an observer to the opening and assessment of tenders and shall receive a copy of each of them. Th e contracting authority 
shall send to the Commission, for its agreement, the results of evaluation of the tenders and a proposal for the award of the contr act. Once it has received 
this agreement, it shall sign the contracts and send 1. All requests to particip ate and tenders declared 
as satisfying the require ments shall be evaluated 
and ranked by an evaluation committee on the basis of the exclusion, selec tion and award criteria 
announced in advance. This committee shall have an odd number of members, at least thre e, with all 
the necessary technical and administrative expertise to assess the tenders.  
2. If the Commission is  not the contracting 
authority, it must be kept systematically informed. 
It shall always be invited as  an observer to the 
opening and assessment of tenders and shall receive 
a copy of each of them. The contracting authority 
shall send to the Commission, for its agreement, the 
results of evaluation of the tenders and a proposal 
for the award of the contract . Once it has received 
this agreement, it shall sign the contracts and send 1. It is proposed to delete the obligation to 
systematically inform the Commission, and to send it a copy of each tender. This is 
replaced by the responsibilisation of the AOD in the proposal Article 237(1) IR; point 3 of the comments to that article. 
2. It is proposed to broaden the possibility 
for the evaluation committee or the contracting authority to ask candidates or tenderers to provide explanations.  
3. The possibility should be created to 
waive the constitution of an evaluation committee where one tender is evaluated.  
 
EN  Error! Unknown document property name.  EN them to the Commission.  
3. Tenders which do not c ontain all the essential 
items demanded in the tender documents or which do not correspond to the specific requirements laid down shall be eliminated.  
However, the evaluation committee or the 
contracting authority may ask candidates or tenderers to supply additiona l material or to clarify 
the supporting documents submitted in connection 
with the exclusion and selection criteria, within the 
time-limit they specify and having respect to the principle of equal treatment.  
4. In the case of abnormally  low tenders as referred 
to in Article 139, the committee shall ask for the necessary clarifications concerning the composition of the tender.  them to the Commission.
 
2. If the Commission is not the contracting 
authority, it shall receive a copy of tender 
documents, tenders, the evaluation of the 
tenders and the signed contracts. It may 
participate as an obs erver to the opening and 
evaluation of tenders.  
 
3. Tenders which do not c ontain all the essential 
items demanded in the tender documents or which 
do not correspond to the speci fic requirements laid 
down shall be eliminated.  
However, the evaluation committee or the 
contracting authority may ask candidates or tenderers to supply additional material or to clarify the supporting documents submitted in connection , 
amongst others,  with the exclusion and selection 
criteria, within the time-limit they specify and having respect to the princi ple of equal treatment.  
4. In the case of abnormally  low tenders as referred 
to in Article 139, the committee shall ask for the necessary clarifications concerning the composition 
of the tender. 
5. The obligation to establish an evaluation 
committee may be waived for procedures 
referred to in Articl e 242, 244 and 246 when the 
 
EN  Error! Unknown document property name.  EN negotiation involves one single tenderer.  
CHAPTER  4 
GRANTS  CHAPTER  4 
GRANTS   
Article 253 
Financing in full 
(Article 169 of the Financial Regulation) Article 253 
Financing in full 
(Article 169 of the Financial Regulation)  
1. By way of derogation from the co- financing 
requirement in connection with grants, referred to in Article 109 of the Financial Regulation, the financing of an action in full may be authorised in the following cases, save where prohibited by the basic act:  
  (a) humanitarian ai d, including assistance 
for refugees, uprooted persons, rehabilitation and mine disposal;  
  (b) aid in crisis situations within the 
meaning of Article 168(2);  
  © actions for the protection of the health 
or fundamental rights of peoples;  
  (d) actions resulting from the 
implementation of financing agreements with third countries or actions with 1. By way of derogation from the co
- financing 
requirement in connection with grants, 
referred to in Article 109 of the Financial 
Regulation, the financing of an action in 
full may be authorised in the following 
cases, save where prohibited by the basic 
act:  
  (a) humanitarian aid, including assistance 
for refugees, uprooted persons, 
rehabilitation and mine disposal;  
  (b) aid in cris is situations within the 
meaning of Article 168(2);  
  © actions for the protection of the health 
or fundamental rights of peoples;  
  (d) actions resulting from the 
implementation of financing agreements 
with third countries or actions with More flexibility should be allowed for 
financing in full. For the purpose of clarity and simplification, it is proposed to completely delete Article 160c(1) and second and third subparagraph of Article 160c(2). Instead of listing different situations in which grant can be financed in full, this approach strictly follows Article 169 FR, according to which any grant considered essential in  external actions can 
be financed in full. The appreciation whether financing in full is essential will still be made by AO, who will have to justify it in the award decision.  
 
EN  Error! Unknown document property name.  EN international organisations within the 
meaning of Article 43.  
  e) where it is in the interests of the 
Community to be the sole donor to an action, and in particular to ensure visibility 
of a Community action.  
2. Grounds shall be provided in the award decision 
relating to the action in question in the case of any derogation from the co-
financing requirement, as provided for in 
paragraph 1. 
The authorising officer must be in a position to 
show that financing in full is essential to carry out the action in question. 
However, in the case of point (e) of paragraph 1, 
grounds shall be provided in the financing decision of the Commission. international 
organisations within the 
meaning of Article 43.  
  e) where it is in the interests of the 
Community to be the sole donor to an 
action, and in particular to ensure visibility 
of a Community action.  
2. Grounds shall be provided in the award decision 
relatin g to the action in question  in In the 
case of any derogation from the co-
financing requirement, as provided for in 
paragraph 1.  grounds shall be provided 
in the award decision . 
The authorising officer must be in a position to 
show that financing in full is  essential to 
carry out the action in question.  
However, in the case of point (e) of paragraph 1, 
grounds shall be provided in  the financing decision 
of the Commission.  
 Article 253a  
Financing applications   
( 1. By way of derogation from Article 172(c), 
where submission is by letter, applicants may 
choose to submit applic ations in one of the 
following ways:  
(a) by post or by courier service, in which case New provision: because of the special 
character of external actions, the date of 
receipt of grant applications by the contracting authority should be considered 
as the day on which application is submitted. This new article also aims at 
 
EN  Error! Unknown document property name.  EN the call for proposals sh all specify that the 
evidence shall be constituted by the date of 
receipt by the contracting authority;  
(b) by hand-delivery to the premises of the 
institution by the applicant in person or by an 
agent, in which case the call for proposals shall 
specify the date, time and department to which 
applications are to be delivered against a signed 
and dated receipt.  aligning the regime applicable to grants to 
the exception already foreseen for procurement under Article 251(1) IR. 
CHAPTER  5 
IMPREST ACCOUNTS AND INVENTORIES  CHAPTER  5 
IMPREST ACCOUNTS AND INVENTORIES   
Article 254 
Creation of imprest accounts 
(Article 63 of the Financial Regulation) Article 254 
Creation of imprest accounts 
(Article 63 of the Financial Regulation)  
For the payment of cer tain categories of 
expenditure, one or more imprest accounts may be set up in each local unit outside the Community in accordance with Article 63 of the Financial Regulation. A local unit sh all be, for instance, a 
Community delegation, office or branch office in a 
third country. For the payment of certain categories of 
expenditure, one or more imprest accounts may be set up in each local unit outside the Community
 
Union  in accordance with Article 63 of the 
Financial Regulation. A lo cal unit shall be, for 
instance, a Community  Union  delegation, office or 
branch office in a third country.  
The decision setting up such an imprest account 
shall lay down its operating terms in accordance with Article 67 and on th e basis of the specific 
needs of each local unit. The decision setting up such an imprest account 
shall lay down its operating terms in accordance with Article 67 and on the basis of the specific needs of each local unit.  
 
EN  Error! Unknown document property name.  EN Article 255 
Persons empowered to administer accounts 
(Article 62 of the Financial Regulation) Article 255 
Persons empowered to administer accounts 
(Article 62 of the Financial Regulation)  
Each institution shall lay down the conditions in 
accordance with which the staff it designates and 
empowers to administer accounts in the local units referred to in Article 254 are authorised to communicate the names and specimen signatures to local financial institutions. Each institution shall lay down the conditions in 
accordance with which th e staff it designates and 
empowers to administer accounts in the local units referred to in Article 254 are authorised to communicate the names and specimen signatures to local financial institutions.  
Article 256 
Inventory and advertising of sales 
(Article 138 of the Financial Regulation) Article 256 
Inventory and advertising of sales 
(Article 138 of the Financial Regulation)  
1. In the case of the delegations, the permanent 
inventories of movable property belonging to the 
Communities shall be kept locally. They shall be sent regularly to the central departments in accordance with the rules adopted by each institution. 1. In the case of the delegations, the permanent 
inventories of movable property belonging to the 
Communities shall be kept locally. They shall be sent regularly to the central departments in accordance with the rules adopted by each institution.  
Movable property in transit to the delegations shall 
be entered on a provisional list before being recorded in the permanent inventories. Movable property in transit to the delegations shall 
be entered on a provisional list before being recorded in the permanent inventories.  
2. The advertising arrangements for sales of 
delegations' movable property shall be in accordance with local usage. 2. The advertising arrangements for sales of 
delegations' movable property shall be in accordance with local usage.  
 
EN  Error! Unknown document property name.  EN TITLE  IV 
(TITLE  V OF THE  FINANCIAL  
REGULATION) 
EUROPEAN  OFFICES TITLE  IV 
(TITLE  V OF THE  FINANCIAL  
REGULATION) 
EUROPEAN  OFFICES  
Article 257 
Scope 
(Article 171 of the Financial Regulation Article 257 
Scope 
(Article 171 of the Financial Regulation  
The offices referred to in Article 171 of the 
Financial Regulation are as follows: 
(a) the Office for Official Publications; (b) the European Anti-Fraud Office; (c) The European Communities Personnel Selection 
Office and the European Administrative School administratively attached to it; 
(d) the Office for the Administration and Payment 
of Individual Entitlements; 
(e) the Office for Infrastructure and Logistics in 
Brussels and the Office for Infrastructure and Logistics in Luxembourg. 
One or more institutions may set up additional 
offices provided that this can be justif ied by a cost-
benefit study and guarantees  the visibility of the The offices referred to in Article 171 of the 
Financial Regulation are as follows: 
(a) the Office for Official
 Publications Office ; 
(b) the European Anti-Fraud Office; (c) The European Communities Personnel Selection 
Office and the European Administrative School administratively attached to it; 
(d) the Office for the Administration and Payment 
of Individual Entitlements; 
(e) the Office for Infrastructure and Logistics in 
Brussels and the Office for Infrastructure and Logistics in Luxembourg. 
One or more institutions may set up additional 
offices provided that this can be justif ied by a cost-
benefit study and guarantees  the visibility of the  
 
EN  Error! Unknown document property name.  EN Community action.  Community  Union  action.  
Article 258 
Delegations by the institutions to interinstitutional 
European offices 
(Articles 171 and 174a of the Financial Regulation)Article 258 
Delegations by the institutions to interinstitutional 
European offices 
(Articles 171 and 174a of the Financial Regulation) 
Each institution shall be responsible for budgetary commitments. The instituti ons may delegate to the 
Director of the interinstitutional European office concerned all subsequent act s, in particular legal 
commitments, validation of expenditure, 
authorisation of payments  and implementation of 
revenue, and shall set the limits and conditions for 
such delegation of powers.  Each institution shall be responsible for budgetary 
commitments. The instituti ons may delegate to the 
Director of the interinstitutional European office concerned all subsequent act s, in particular legal 
commitments, validation of expenditure, 
authorisation of payments  and implementation of 
revenue, and shall set the limits and conditions for 
such delegation of powers.   
Article 258a 
Specific rules for the Office for Official 
Publications 
(Articles 171 and 174a of the Financial Regulation)Article 258a 
Specific rules for the Office for Official
 Publications 
Office  
(Articles 171 and 174a of the Financial Regulation) 
With regard to the Office for Official Publications 
(Publications Office), each institution shall decide on its publication policy. The net proceeds from the sale of publications shall be re-used as assigned revenue by the institution wh ich is the author of 
those publications, in accord ance with Article 18 of 
the Financial Regulation.  With regard to the Office for Official
 Publications 
Office  (Publications Office),  each institution shall 
decide on its publication policy. The net proceeds 
from the sale of publicati ons shall be re-used as 
assigned revenue by the in stitution which is the 
author of those publications, in accordance with Article 18 of the Financial Regulation.   
 
EN  Error! Unknown document property name.  EN Article 259 
Delegation of certain tasks by the accounting 
officer 
(Article 172 of the Financial Regulation) Article 259 
Delegation of certain tasks by the accounting 
officer 
(Article 172 of the Financial Regulation)  
The Commission accounting officer, acting on a proposal from the management committee of the Office in question, may dele gate to a member of the 
staff of the Office certain of his tasks relating to the collection of revenue and the payment of 
expenditure effected directly by the Office in 
question.  The Commission accounting officer, acting on a 
proposal from the management committee of the Office in question, may dele gate to a member of the 
staff of the Office certain of his tasks relating to the collection of revenue and the payment of 
expenditure effected directly by the Office in 
question.   
Article 260 
Treasury — bank accounts 
(Article 172 of the Financial Regulation) Article 260 
Treasury — bank accounts 
(Article 172 of the Financial Regulation)  
To meet the cash requirements of an interinstitutional Office,  bank accounts or post 
office giro accounts may be opened in its name by the Commission, acting on a proposal from the management committee. The final cash position for each year shall be reconciled and adjusted between the Office in question and the Commission at the end of the financial year.  To meet the cash requirements of an 
interinstitutional Office,  bank accounts or post 
office giro accounts may be opened in its name by the Commission, acting on a proposal from the management committee. The final cash position for each year shall be reconciled and adjusted between the Office in question and the Commission at the end of the financial year.    
 
EN  Error! Unknown document property name.  EN TITLE  V 
(TITLE  VI OF THE  FINANCIAL  
REGULATION) 
ADMINISTRATIVE  
APPROPRIATIONS TITLE  V 
(TITLE  VI OF THE  FINANCIAL  
REGULATION) 
ADMINISTRATIVE  
APPROPRIATIONS  
Article 262 - Scope 
(Article 177 of the Financial Regulation) Article 262 - Scope 
(Article 177 of the Financial Regulation)  
The administrative appropriations covered by this 
Title shall be those defined in Article 27. 
Budgetary commitments corresponding to 
administrative appropriations of a type common to all titles and which are managed globally may be recorded globally in the budgetary accounting 
following the summary classification by type as set out in Article 27. 
The corresponding expenditu re shall be booked to 
the budget lines of each title according to the same distribution as for appropriations. The administrative appropriations covered by this 
Title shall be those defined in Article 27. 
Budgetary commitments corresponding to 
administrative appropriations of a type common to several
 all titles and which are managed globally 
may be recorded globally in the budgetary accounting following the su mmary classification by 
type as set out in Article 27. 
The corresponding expenditu re shall be booked to 
the budget lines of each title according to the same distribution as for appropriations. Modification in line with Article 27 IR. 
Article 263 
Buildings 
(Article 179(3) of the Financial Regulation) Article 263 
Buildings 
(Article 179(3) of the Financial Regulation)  
Before concluding the contracts re ferred to in Before concluding the contracts referred to in  
 
EN  Error! Unknown document property name.  EN Article 179(3) of the Financial Regulation, each 
institution shall submit a communication to the budgetary authority pres enting all relevant 
information on the operation planned, the cost to the budget for the current financial year and for future years, its justification as regards the principle of sound financial management and its impact on the financial perspective. Article 179(3) of the Financial Regulation, each 
institution shall submit a communication to the budgetary authority pres enting all relevant 
information on the operation planned, the cost to the budget for the current financial year and for future years, its justification as regards the principle of sound financial management and its impact on the financial perspective. 
The institution concerned shall at the same time inform the budgetary author ity of its schedule for 
building projects. The institution concerned shall at the same time 
inform the budgetary author ity of its schedule for 
building projects.  
Article 264 
Rent guarantees 
(Article 177 of the Financial Regulation) Article 264 
Rent guarantees 
(Article 177 of the Financial Regulation)  
Rent guarantees provided by the Commission shall 
take the form of a bank guarantee or a deposit on a blocked bank account in the name of the Commission and of the lessor, denominated in euro, save in duly substantiated cases. Rent guarantees provided by the Commission shall 
take the form of a bank guarantee or a deposit on a blocked bank account in the name of the Commission and of the lessor, denominated in euro, save in duly substantiated cases.  
However, where, for transactions in third countries, 
it is not possible to use a ny of those forms of rent 
guarantees, the authorising officer responsible may accept other forms provided that those forms ensure equivalent protection of the Communities’ financial 
interests. However, where, for transactions in third countries, 
it is not possible to use a ny of those forms of rent 
guarantees, the authorising officer responsible may accept other forms provided that those forms ensure equivalent protection of the Communities’ financial 
interests.  
 
EN  Error! Unknown document property name.  EN Article 265 
Advances to staff and members of the institutions 
(Article 177 of the Financial Regulation) Article 265 
Advances to staff and members of the institutions 
(Article 177 of the Financial Regulation)  
Advances may be paid, in accordance with the 
conditions laid down in the Staff Regulations, to staff and to the members of the institutions. Advances may be paid, in accordance with the 
conditions laid down in the Staff Regulations, to staff and to the members of the institutions.  
TITLE VI 
(TITLE VII OF PART II OF THE 
FINANCIAL REGULATION) 
EXPERTS" TITLE VI 
(TITLE VII OF PART II OF THE 
FINANCIAL REGULATION) 
EXPERTS"  
Article 265a 
External experts 
(Article 179a of the Financial Regulation) Article 265a 
External experts 
(Article 179a of the Financial Regulation)  
 1. For values below the thresholds laid down in 
Article 158(1)(a), external experts may be selected 
on the basis of the procedure laid down in paragraph 2 of this Arti cle for tasks involving in 
particular the evaluation of proposals and technical assistance. 
2. A call for expressions of interest shall be 
published in particular in the Official Journal of the 
European Union  or the internet site of the 
institution concerned in order to ensure maximum 1. For values below the thresholds laid down in 
Article 158(1)(a), external experts may be selected 
on the basis of the procedure laid down in paragraph 2 of this Arti cle for tasks involving in 
particular the evaluation of proposals and technical 
assistance . 
2. A call for expressions of interest shall be 
published in particular in the Official Journal of the 
European Union  or the internet site of the 
institution concerned in order to ensure maximum Changes proposed concern: 
- the specification of tasks instead of Article 
179a FR; 
- the content of the call for expressions of 
interest; 
- proposals on the maximum duration of the 
list. 
 
EN  Error! Unknown document property name.  EN publicity among potential candidates and with a 
view to establishing a list of experts.  
The list drawn up following the call for expressions 
of interest shall be valid for no more than the duration of a multi-annual programme.  
Any interested person may submit an application at 
any time during the period of validity of the list, with the exception of the last three months of that period.  
3. External experts shall not appear on the list 
referred to in paragraph 2 if they are in one of the situations of exclusion refe rred to in Article 93 of 
the Financial Regulation.  
4. External experts appeari ng on the list referred to 
in paragraph 2 shall be sele cted on the basis of their 
ability to perform the tasks referred to in paragraph 1 and in accordance with  the principles of non-
discrimination, equal treatment and absence of conflict of interests. publicity among potential candidates and with a 
view to establishing a list of experts. 
The call for expressions of interest shall include 
a description of the tasks envisaged and the fixed 
conditions of remuneration , that may be based 
on unit prices.  
The list drawn up following the call for expressions 
of interest shall be valid for no more than five 
years from its publication or for  the duration of a 
multi-annual programme related to the tasks . 
Any interested natural person may submit an 
application  at any time during the period of its 
validity of the list , with the exception of the last 
three months of that period.  
3. External experts shall not be selected to 
perform the tasks  appear on the list  referred to in 
paragraph 2  Article 179a of the Financial 
Regulation  if they are in one of the situations of 
exclusion referred to in Articles 93 and 94 of the 
Financial Regulation.  
4. External experts appeari ng on the list referred to 
in paragraph 2 shall be sele cted on the basis of their 
ability to perform the tasks referred to in paragraph 
1 and in accordance with the principle s of non -
discrimination, equal treat ment and absence of 
conflict of interests.   
        
 
    Clarification: the f act that, that upon 
registration, no examination of the selection criteria is made is only applicable when the contracting authority expresses interest in the services of the expert. 
 
EN  Error! Unknown document property name.  EN PART  THREE 
TRANSITIONAL  AND  FINAL  
PROVISIONS PART  THREE 
TRANSITIONAL  AND  FINAL  
PROVISIONS  
TITLE  I 
TRANSITIONAL  PROVISIONS TITLE  I 
TRANSITIONAL  PROVISIONS  
Article 266 
Transfers of research appropriations 
(Article 160 of the Financial Regulation) Article 266  
Transfers of research a ppropriations  
(Article 160 of the Financial Regulation)  Obsolete 
For direct and indirect action in the field of 
research, referred to in Article 229(2) to (5), the procedure for transfers of appropriations for the financial year 2003 shall be governed by the first and second paragraphs of Article 95 of the 
Financial Regulati on of 21 December 1977. For direct and indirect action in the field of 
research, referred to in Article 229(2) to (5), the 
procedure for transfers of appropriations for the 
financial ye ar 2003 shall be governed by the first 
and second paragraphs of Article 95 of the 
Financial Regulati on of 21 December 1977.   
Article 267 
Liquidation of the guarantee account Article 267 
Liquidation of the guarantee account  
1. The credit balance of  the guarantee account 
kept in the general account s in the name of each 
accounting officer or assi stant accounting officer 
and credited with the special allowances granted pursuant to Article 75 of the Financial Regulation of 21 December 1977 shall be  paid to the persons 1. The credit balance of  the guarantee account 
kept in the general account s in the name of each 
accounting officer or assi stant accounting officer 
and credited with the special allowances granted pursuant to Article 75 of the Financial Regulation of 21 December 1977 shall be  paid to the persons  
 
EN  Error! Unknown document property name.  EN concerned or to those entitled under them by 
decision of the institutions, after they have been granted discharge in respect  of the financial years 
2001 and 2002 in accordance with the opinion of the accounting officer where he is not personally 
concerned. concerned or to those entitled under them by 
decision of the institutions, after they have been granted discharge in respect  of the financial years 
2001 and 2002 in accordance with the opinion of the accounting officer where he is not personally 
concerned. 
2. The credit balance of  the guarantee account 
kept in the general account s in the name of each 
imprest administrator and credited with the special allowances granted pursua nt to Article 75 of the 
Financial Regulation of 21 December 1977 shall be paid to the persons concerned or those entitled under them with the agreement of, and after verification by, the accounting officer and the authorising officer concerned. 2. The credit balance of  the guarantee account 
kept in the general account s in the name of each 
imprest administrator and credited with the special allowances granted pursua nt to Article 75 of the 
Financial Regulation of 21 December 1977 shall be paid to the persons concerned or those entitled under them with the agreement of, and after verification by, the accounting officer and the authorising officer concerned.  
3. The guarantee account shall be credited 
with interest corresponding to the annual average of the monthly rates applied by the European Central Bank to its principal re financing operations, in 
euro, as published in the C series of the Official 
Journal of the European Communities , up to the 
date of liquidation. 3. The guarantee account shall be credited 
with interest corresponding to the annual average of the monthly rates applied by the European Central Bank to its principal re financing operations, in 
euro, as published in the C series of the Official 
Journal of the European Communities , up to the 
date of liquidation.  
Article 268 
Conversion into euro of commitments or estimates 
of amounts receivable from before 1 January 2003
(Article 16 of the Financial Regulation) Article 268  
Conversion into euro of commitments or estimates 
of amounts receivable from before 1 January 2003
(Article 16 of the Financial Regulation)  obsolete 
Budget commitments and the estimates of amounts Budget commitments and the estimates of amounts  
 
EN  Error! Unknown document property name.  EN receivable referred to in  Article 161(2) of the 
Financial Regulation made before 1 January 2003 in a currency other than th e euro shall be calculated 
in euro by no later than 1 June 2003 at the rate referred to in Article 7, applicable on 1 January 2003. receivable referred to in  Article 161(2) of the 
Financial Regulation made before 1 January 2003 
in a currency other tha n the euro shall be calculated 
in euro by no later than 1 June 2003 at the rate 
referred to in Article 7, applicable on 1 January 
2003.  
Article 269 
Decentralised management of pre-accession aid 
(Article 53c of the Financial Regulation) Article 269  
Decent ralised management of pre -accession aid  
(Article 53c of the Financial Regulation)  obsolete 
In connection with the pre-accession aid referred to 
in Council Regulation (EEC) No 3906/8930 and 
Council Regulation (EC) No 555/200031, the rules 
concerning checks laid down in Article 35 shall not affect the decentralised management already in operation with the candidate  countries in question. In connection with the pre
-accession aid referred to 
in Council Regulation (EEC) No 3906/8932 and 
Council Regulation (EC) No 555/200033, the rules 
concerning checks laid down in Article 35 shall not 
affect the decentralised management already in 
operation with the candidate  countries in question.   
                                                 
30 OJ L 375, 23.12.1989, p. 11. 
31 OJ L 68, 16.3.2000, p. 3. 
32 OJ L 375, 23.12.1989, p. 11. 
33 OJ L 68, 16.3.2000, p. 3. 
 
EN  Error! Unknown document property name.  EN TITLE  II 
FINAL  PROVISIONS TITLE  II 
FINAL  PROVISIONS  
Article 270 - Bodies referred to in Article 185 of the 
Financial Regulation 
(Article 185 of the Financial Regulation) Article 270 - Bodies referred to in Article 185 of the 
Financial Regulation 
(Article 185 of the Financial Regulation)  
Bodies which actually r eceive a grant charged to 
the Community budget and which are included in a list drawn up by the Commission and attached to the preliminary draft budge t for each financial year 
shall be subject to the obligations referred to in Articles 14(2), point (3)(d ) of Article 46(1) and 
Article 185 of the Financial Regulation. Bodies which actually r eceive a grant charged to 
the Community budget and which are included in a 
list drawn up by the Commission and attached to 
the preliminary draft budge t for each financial year 
shall be subject t o the obligations referred to in 
Articles 14(2), point (3)(d ) of Article 46(1) and 
Article 185 of the Financial Regulation.  It is proposed to delete the entire Article as 
redundant: by definitio n, bodies which are 
subject to Article 185 are subject to FR provisions, save sp ecific derogations. 
Article 271 
Updating of thresholds and amounts Article 271 
Updating of thresholds and amounts  
1. The thresholds and amounts laid down in 
Articles 54, 67, 119, 126, 128, 129, 130, 135, 151, 152, 164, 172, 173, 175b, 180, 181, 182, 226, 241, 243, 245 and 250 shall be upda ted every three years 
in line with movements in the consumer price index in the Community. 1. The thresholds and amounts laid down in 
Articles 54,
 67, 119, 126, 128, 129, 130,  135, 151, 
152, 164,  172, 173, 175b,  180, 181, 182, 226, 241, 
243, 245 and 250 shall be updated every three  five 
years in line with movements in the consumer price index in the Community
 Union . This article should be updated for articles 
referring to other parts than Title V (procurement). Some articles listed include no amounts, some were missing and cross references have been developed.  
Triennial revision of amounts seems less 
relevant for procurement thresholds than an adjustment from time to time in the framework of general revisions seems better. Besides, you might consider adding a 
 
EN  Error! Unknown document property name.  EN rule for rounding up the results in the future. 
2. The thresholds referred to in point (b) of 
Article 157 and in Article 158(1) in respect of procurement contracts shall be adjusted every two years pursuant to Article 78(1) of Directive 2004/18/EC. 2. The thresholds referred to in point (b) of 
Article 157 and  in Article 158(1) in respect of 
procurement contracts shall be adjusted every two years pursuant to Article 78(1) of Directive 2004/18/EC. Art. 157 to be deleted (consistency issue) 
3. The Commission, which shall establish the 
new amounts and thresholds in accordance with the timetable and criteria set out in paragraphs 1 and 2, 
shall inform the other institutions and shall have 
those amounts and thresholds published in the Official Journal of the European Communities . 3. The Commission, which shall establish the 
new amounts and thresholds in accordance with the timetable and criteria set out in paragraphs 1 and 2, 
shall inform the other institutions and shall have 
those amounts and thresholds published in the 
Official Journal of the European Communities
 
Union .  
Article 272 
Repeal Article 272 
Repeal  
Regulation (Euratom, ECSC, EC) No 3418/93 is 
repealed. Regulation (Euratom, ECSC, EC) No 3418/93 is 
repealed.  
References to the repeal ed Regulation shall be 
construed as references to this Regulation. References to the repeal ed Regulation shall be 
construed as references to this Regulation.  
Article 273 
Entry into force Article 273 
Entry into force  
This Regulation shall ente r into force on 1 January 
2003. This Regulation shall enter into force on the third 
day following that of its publication in the 
Official Journal of the European Union  1 January Requirement recommended by Legal 
Service 
 
EN  Error! Unknown document property name.  EN 2003 . 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States. This Regulation shall be binding in its entirety and 
directly applicable in all Member States.