Text proposed by the Commission Amendment

Article 2 Article 2

Definitions Definitions

1. For the purposes of this Regulation, the following definitions shall apply: 1. For the purposes of this Regulation, the following definitions apply:

(1) ‘accompanying measures’ means activities provided in addition to the distribution of food and/or basic material assistance with the aim of addressing social exclusion such as referring to and providing social services or advice on managing a household budget; (1) ‘accompanying measures’ means activities provided in addition to the distribution of food and/or basic material assistance with the aim of addressing social exclusion and eradicating poverty such as referring to and providing social services and psychological support, providing relevant information on public services or advice on managing a household budget;

(2) ‘associated country’ means a third country which is party to an agreement with the Union allowing for its participation in the Employment and Social Innovation and Health strands of the ESF+ in accordance with Article 30; (2) ‘associated country’ means a third country which is party to an agreement with the Union allowing for its participation in the Employment and Social Innovation and Health strands of the ESF+ in accordance with Article 30;

(3) ‘basic material assistance’ means goods which fulfil the basic needs of a person for a life with dignity, such as clothing, hygiene goods and school material; (3) ‘basic material assistance’ means goods which fulfil the basic needs of a person for a life with dignity, such as clothing, hygiene goods , including feminine hygiene products, and school material;

(4) ‘blending operation’ means actions supported by the Union budget, including within blending facilities pursuant to Article 2(6) of the Financial Regulation, combining non-repayable forms of support and/or financial instruments from the Union budget with repayable forms of support from development or other public finance institutions, as well as from commercial finance institutions and investors; (4) ‘blending operation’ means actions supported by the Union budget, including within blending facilities pursuant to Article 2(6) of the Financial Regulation, combining non-repayable forms of support and/or financial instruments from the Union budget with repayable forms of support from development or other public finance institutions, as well as from commercial finance institutions and investors;

(5) ‘common immediate result indicators’ means common result indicators which capture effects within four weeks as from the day the participant leaves the operation (exit date); (5) ‘common immediate result indicators’ means common result indicators which capture effects within four weeks as from the day the participant leaves the operation (exit date);

(6) ‘common longer term result indicators’ means common result indicators which capture effects six months after a participant has left the operation; (6) ‘common longer term result indicators’ means common result indicators which capture effects six and twelve months after a participant has left the operation;

(7) ‘costs of purchasing food and/or basic material assistance’ means the actual costs linked to the purchase of food and/or basic material assistance by the beneficiary and not limited to the price of the food and/or basic material assistance; (7) ‘costs of purchasing food and/or basic material assistance’ means the actual costs linked to the purchase of food and/or basic material assistance by the beneficiary and not limited to the price of the food and/or basic material assistance;

(7a) ‘cross-border partnerships’ in the Employment and Social Innovation strand means permanent structures of cooperation between public employment services, civil society or the social partners located in at least two Member States;

(8) ‘end recipient’ means the most deprived person or persons receiving the support as laid down in point (xi) of Article 4(1); (8) ‘end recipient’ means the most deprived person or persons receiving the support as laid down in point (xi) of Article 4(1);

(9) ‘health crisis’ means any crisis commonly perceived as a threat, having a health dimension and which requires urgent action by authorities under conditions of uncertainty; (9) ‘health crisis’ means any crisis commonly perceived as a threat, having a health dimension and which requires urgent action by authorities under conditions of uncertainty;

(10) ‘legal entity’ means any natural person, or any legal person created and recognised as such under national law, Union law or international law, which has a legal personality and which may, acting in its own name, exercise rights and be subject to obligations; (10) ‘legal entity’ means any natural person, or any legal person created and recognised as such under national law, Union law or international law, which has a legal personality and which may, acting in its own name, exercise rights and be subject to obligations;

(11) ‘microfinance’ includes guarantees, microcredit, equity and quasi-equity, coupled with accompanying business development services such as in the form of individual counselling, training and mentoring, extended to persons and micro-enterprises that experience difficulties accessing credit for the purpose of professional and/or revenue-generating activities; (11) ‘microfinance’ includes guarantees, microcredit, equity and quasi-equity, coupled with accompanying business development services such as in the form of individual counselling, training and mentoring, extended to persons and micro-enterprises that experience difficulties accessing credit for the purpose of professional and/or revenue-generating activities;

(12) micro-enterprise' means an enterprise with fewer than 10 employees and an annual turnover or balance sheet below EUR 2 000 000 ; (12) micro-enterprise' means an enterprise with fewer than 10 employees and an annual turnover or balance sheet below EUR 2 000 000 ;

(13) ‘most deprived persons’ means natural persons, whether individuals, families, households or groups composed of such persons, whose need for assistance has been established according to the objective criteria set by the national competent authorities in consultation with relevant stakeholders, while avoiding conflicts of interest and which are approved by those national competent authorities and which may include elements that allow the targeting of the most deprived persons in certain geographical areas; (13) ‘most deprived persons’ means natural persons, whether individuals, families, households or groups composed of such persons , including children and homeless people , whose need for assistance has been established according to the objective criteria set by the national competent authorities in consultation with relevant stakeholders, while avoiding conflicts of interest and which are approved by those national competent authorities and which may include elements that allow the targeting of the most deprived persons in certain geographical areas;

(14) ‘reference value’ means a value to set targets for common and programme specific result indicators which is based on existing or previous similar interventions; (14) ‘reference value’ means a value to set targets for common and programme specific result indicators which is based on existing or previous similar interventions;

(15) ‘social enterprise’ means an undertaking, regardless of its legal form, or a natural person which (15) ‘social enterprise’ means a social economy undertaking, regardless of its legal form, or a natural person who:

(a) in accordance with its Articles of Association, Statutes or with any other legal document that may result in liability under the rules of the Member State where it is located, has as its primary social objective the achievement of measurable, positive social impacts rather than generating profit for other purposes, and which provides services or goods that generate a social return, and/or employs methods of production of goods or services that embodies social objectives; (a) in accordance with its Articles of Association, Statutes or with any other legal document that may result in liability under the rules of the Member State where it is located, has as its primary social objective the achievement of measurable, positive social , including environmental, impacts rather than generating profit for other purposes, and which provides services or goods that generate a social return, and/or employs methods of production of goods or services that embodies social objectives;

(b) uses its profits first and foremost to achieve its primary social objective, and has predefined procedures and rules covering any distribution of profits that ensure that such distribution does not undermine the primary social objective; (b) reinvests most of its profits first and foremost to achieve its primary social objective, and has predefined procedures and rules covering any distribution of profits that ensure that such distribution does not undermine the primary social objective;

(c) is managed in an entrepreneurial, accountable and transparent way, in particular by involving workers, customers and stakeholders impacted by its business activities; (c) is managed in an entrepreneurial , democratic, participatory , accountable and transparent way, in particular by involving workers, customers and stakeholders impacted by its business activities;

(15a) ‘social economy enterprise’ means different types of enterprises and entities falling within the social economy, such as cooperatives, mutuals, associations, foundations, social enterprises and other forms of enterprises regulated by the laws of the individual Member States and based on the primacy of the individual and social objectives over capital, democratic governance, solidarity and the reinvestment of the majority of profits or surpluses;

(16) ‘social innovations’ mean activities that are social both as to their ends and their means and in particular those which relate to the development and implementation of new ideas (concerning products, services and models) that simultaneously meet social needs and create new social relationships or collaborations, thereby benefiting society and boosting its capacity to act; (16) ‘social innovations’ mean activities , including collective activities, that are social both as to their ends and their means and in particular those which relate to the development and implementation of new ideas (concerning products, services , practices and models) that simultaneously meet social needs and create new social relationships or collaborations, including between public, third sector organisations such as voluntary and community organisations and social economy enterprises, thereby benefiting society and boosting its capacity to act;

(17) ‘social experimentations’ mean policy interventions that offer an innovative response to social needs, implemented on a small scale and in conditions that enable their impact to be measured, prior to being implemented in other contexts or on a larger scale, if the results prove convincing; (17) ‘social experimentations’ mean policy interventions that offer an innovative response to social needs, implemented on a small scale and in conditions that enable their impact to be measured, prior to being implemented in other , including geographical and sectorial, contexts or on a larger scale, if the results prove convincing;

(18) ‘key competences’ means the knowledge, skills and competences all individuals need, at any stage of their lives, for personal fulfilment and development, employment, social inclusion and active citizenship. The key competences are: literacy; multilingual; mathematics, science, technology and engineering; digital; personal, social and learning to learn; citizenship; entrepreneurship; cultural awareness and expression; (18) ‘key competences’ means the knowledge, skills and competences all individuals need, at any stage of their lives, for personal fulfilment and development, employment, social inclusion and active citizenship. The key competences are: literacy; multilingual; mathematics, science, technology , arts and engineering; digital; media; personal, social and learning to learn; citizenship; entrepreneurship; (inter) cultural awareness and expression and critical thinking ;

(19) ‘third country’ means a country that is not member of the European Union. (19) ‘third country’ means a country that is not member of the European Union;

(19a) ‘disadvantaged groups’ means targeted groups with a high level of people experiencing or at risk of poverty, discrimination or social exclusion, including among others ethnic minorities such as Roma, third-country nationals, including migrants, elderly people, children, single parents, persons with disabilities or persons with chronic diseases;

(19b) ‘lifelong learning’ means learning in all its forms (formal, non-formal and informal learning) taking place at all stages in life including early childhood education, general education, vocational education and training, higher education and adult education, and resulting in an improvement in knowledge, skills, competences, and possibilities to participate in society.

2. The definitions in Article [2] of [the future CPR] shall also apply for the ESF+ strand under shared management. 2. The definitions in Article [2] of [the future CPR] also apply for the ESF+ strand under shared management.