EUROPEAN COMMISSION Brussels, 12.8.2021 COM(2021) 476 final REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL concerning the implementation and the results of the Pericles 2020 programme for the protection of the euro against counterfeiting in 2020



REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL concerning the implementation and the results of the Pericles 2020 programme for the protection of the euro against counterfeiting in 2020 1.General The ''Pericles 2020'' programme (hereafter ''the Programme") is an exchange, assistance and training programme for the protection of the euro against counterfeiting. It replaces the Pericles programme that was established in 2001 and ran during the period 2002-2013. The Programme was established by Regulation (EU) No 331/2014 of the European Parliament and of the Council of 11 March 2014. Its application was extended to the non-participating Member States by Council Regulation (EU) 2015/768 of 11 May 2015. Regulation (EU) No 331/2014 establishes the duration of the Programme until 31 December 2020. Article 13(3) of the Regulation requires the Commission to provide annual information on the results of the Programme to the European Parliament and to the Council. This Annual Report responds to that requirement in relation to the year 2020. The global COVID-19 pandemic and related social distancing and travel restrictions have profoundly affected the implementation of the Pericles Programme in 2020. Pericles promotes transnational and cross-border cooperation between central bank and law enforcement authorities within the EU, as well as internationally, in order to ensure a global protection of the euro against counterfeiting. The programme is implemented mainly through actions such as conferences, technical training courses and staff exchanges with a wide range of participants from EU Member States and third countries, which together with the sensitive and technical subject matter therefore mainly implies in-person participation and the reimbursement of travel, accommodation, venue and subsistence expenses. The restrictions on travel and in-person gatherings imposed due to the pandemic as of March 2020 meant that the safe implementation of these actions was no longer possible, resulting in the rescheduling of almost all of the actions to 2021. Most of the actions referred to in this report are therefore still due to take place. To the extent possible and necessary due to the evolution of the pandemic, some planned events may be transformed into digital or hybrid events. 2.Annual Work Programme 2020 a.Implementation of the Annual Work Programme in 2020 The annual budget for the implementation of the Programme for the year 2020 was set at EUR 1 100 000 and was financed from the budget line 01.020400 of the general budget of the European Union for 2020. A total of EUR 1 095 203 was committed in 2020. The Programme is implemented through co-financed actions (grants) originating from the competent authorities of the Member States and through ''Commission actions'', organised directly by the Commission. A transfer of EUR 121 046 was made from the Commission actions budget to the grants budget in 2020 to further support the implementation of the actions of the Member States. The implementation of the Programme reflects the commitment of Member States and the Commission to protect the euro against counterfeiting. Discussions of the multi-annual strategy at the meetings of the Euro Counterfeiting Experts Group (ECEG) made it possible to commit 99.56% of the overall budget in 2020. The Programme committed to funding 9 projects in total. Altogether, 7 grants were succesfully awarded from applications originating from the competent authorities of the Member States, a decrease from 10 grants in 2019. One application submitted by the second deadline was not awarded a grant as it did not fulfil the eligibility criteria. Furthermore, 2 Commission actions were funded, one of which had to be cancelled due to the Covid-19 situation, and the other is a commitment to cover the costs to incorporate the future Pericles IV programme (2021 – 2027) into the eGrants tool, a fully electronic (paperless) management system for grants. Subject to the epidemiological developments, all actions will either be implemented with in-person participation in 2021 and later, or the Commission will encourage national authorities to transform them into virtual or hybrid actions where possible. Chart I and Chart II: Type of action financed and Number of planned actions per Member State (actions committed to in 2020, see annex I)

It is noteworthy that France, Italy and Spain, the Member States most affected by euro counterfeiting, this year again received Pericles grants. In addition, The Netherlands and Romania have also received grants as part of the programme in 2020. Of particular note is the Dutch Police, a first time applicant to the Pericles 2020 Programme, which demonstrates the increasing participation of more competent national authorities as beneficiaries to the programme. All their efforts enhance the protection of the euro which is beneficial to all other Member States. The actions for which commitments were made in 2020 consist of 2 conferences, 2 technical trainings, 2 staff exchanges,1 study and the E-Grants migration project. The actions are set to take place both inside and outside the EU depending on the specific needs to protect the euro against counterfeiting. Since its inception, the Programme has consolidated its regional approach by implementing actions involving regions of the world which are particularly important to the fight against counterfeiting. For the year 2020, grants were awarded for actions to take place in Latin America (pandemic restrictions permitting, a training seminar will be organised by Spain in Uruguay with attendants from a total of 19 Latin American countries) and South-Eastern Europe (pandemic restrictions allowing, a three-day conference will be organised by Romania in Bucharest with representatives from a total of 13 countries, including both EU Member States and countries in the region). Further information on the origin and professional background of participants expected to take part in the Programme’s 2020 commitments will be provided in a future edition of the Pericles annual report, subject to the implementation of the actions in light of the Covid-19 pandemic. b.Overview of actions under the Annual Work Programme 2020 A comprehensive overview of Pericles actions committed under the 2020 Annual Work Programme can be found in Annex I. A more detailed overview of these actions will be provided in a future edition of the Pericles annual report, subject to the implementation of the actions in light of the Covid-19 pandemic. 3.Implementation of actions in 2020 that were committed to under previous budgets of the Programme 2020 saw the implementation of 1 Commission procured action that was committed to under previous budgets of the Programme. The procured action was a technical training on the protection of euro coins carried out in Belgrade, Serbia, on 3-5 March 2020. This action aimed at raising awareness on euro-coin counterfeiting in Serbia and neighbouring countries, increasing technical capacity in Serbia, as well as boosting cooperation between Serbia and Montenegro, and between Serbia and the EU. The action reflects the continued priority of the Pericles Programme of fostering better regional cooperation in South Eastern Europe to combat currency counterfeiting. Due to the COVID-19 pandemic, a total of 5 actions planned by the competent authorities of Croatia, Bulgaria, Portugal and Italy and funded as part of the 2019 Call for Proposals, which were due to take place in 2020, have been rescheduled to 2021 or later. A more detailed overview of these actions will be provided in a future edition of the Pericles annual report, subject to their implementation in light of the Covid-19 pandemic. 4.Conclusions and way forward The ''Pericles 2020'' programme continues to be an important and efficient tool in the fight against counterfeiting. The Programme forms the basis for the support of studies, maintaining and developing cooperation, and exchanging best practices among all actors involved in the fight against euro counterfeiting. This is also supported by the fact that in 2020 99.56% of the overall budget was committed, reflecting the interest of Member States in the programme and the continued participation of more competent national authorities as beneficiaries to the programme. As such, the commitments made under the Annual Work Programme of 2020 reflect the recommendation of the Mid-Term evaluation of the programme to encourage greater participation of Competent National Authorities to the programme. The Commission constantly disseminates the results of the actions supported under the Programme to the experts of the Euro Counterfeit Experts Group (ECEG). In 2020, 2 ECEG meetings took place. The Programme shows a high degree of consistency and complementarity with other relevant programmes and actions at Union level because it is dedicated exclusively to and focuses on preventing and fighting a specific form of organised crime, namely euro counterfeiting. This is true for DG NEAR’s Technical Assistance and Information Exchange (TAIEX) instrument, most often used in support of accession negotiations, and DG HOME's Internal Security Fund - Police, which covers the prevention and combating of crime in general. The Commission, the European Parliament and the Council have started the legislative procedure for continuing the programme beyond 2020 as the Pericles IV programme as part of the next Multi-Annual Financial Framework . Based on the results of the implementation of the Programme and the continuous analysis of emerging threats discussed in the ECEG, the priorities for 2021 are the following: ·Supporting activities aimed at improving cooperation among those Member States which are particularly affected by the production and distribution of counterfeits;