EUROPEAN COMMISSION Brussels,30.5.2018 SWD(2018) 290 final COMMISSION STAFF WORKING DOCUMENT



IMPACT ASSESSMENT

Accompanying the document Proposal for a Regulation establishing the Rights and Values programme

Proposal for a Regulation establishing the Justice programme

Proposal for a Regulation establishing the Creative Europe programme

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{SEC(2018) 274 final}



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Table of Contents 1. Introduction: Political and legal context 1.1. Scope and context 1.2. Lessons learned from previous programmes 1.2.1. Lessons learned on strategies and priorities 1.2.2. Lessons learned on possible synergies 1.2.3. Lessons learned on delivery mechanisms 1.2.4. Lessons learned on monitoring 2. The Objectives 2.1. Challenges for the programmes of the next MFF 2.1.1. Common policy challenges: the added value of EU-level action on values and the subsidiarity principle 2.1.2. Challenges in terms of flexibility and simplification: towards a new architecture, delivery mode and monitoring system of future programmes 2.2. Objectives of the programmes of the next MFF 2.2.1. The aim of the initiative 2.2.2. The specific objectives of the future funding programmes 3. Programme structure and priorities 3.1.1. Key features of the current funding programmes: the baseline scenario 3.1.2. Alternative to the baseline scenario: a EU values framework with two funding programmes 3.1.3. Discarded alternative: one programme

3.2. Priorities 3.3. Synergies with other funding programmes 3.3.1. Synergies with the other programmes under the future "Investing in people and EU values" framework 3.3.2. Synergies with the "External Action" cluster of the budget 34 3.3.3. Synergies with the Single Market Programmes 3.3.4. Synergies with budget cluster on Strategic Infrastructure 3.3.5. Synergies with Border management and security 4. Delivery mechanisms of the intended funding 4.1. Implementation mode 4.2. Type of expenditure 4.3. Alignment with recent changes in the Financial Regulation 39 5. How will performance be monitored and evaluated? 39 Glossary Term or acronym Meaning or definition AVMS Directive Audiovisual Media Services Directive CCS Cultural and Creative Sectors CSO Civil Society Organisation DSM Digital Single Market EACEA Education And Culture Executive Agency EEA European Economic Area EFTA European Free Trade Association FPI Foreign Policy Instrument MFF Multiannual Financial Framework MOOCs Massive Open On-line Courses NGO Non-Governmental Organisation REC Rights, Equality and Citizenship SDG Sustainable Development Goal VOD Video On Demand VR Virtual Reality



1.Introduction: Political and legal context This impact assessment was prepared to analyse a possible proposal for a European Culture, Rights and Values programme — merging the 2014-2020 Rights, Equality and Citizenship programme, the Europe for Citizens programme and the Creative Europe programme — and the Justice programme. On 2 May 2018, the European Commission adopted its proposals for a new Multiannual Financial Framework (MFF) for 2021-2027. The Commission decided to have a self-standing Creative Europe programme and to create a Justice, Rights and Values Fund with two underlying funding programmes: the Justice programme and the Rights and Values programme. The impact assessment remains valid in underpinning all these initiatives. Under these proposals , over this period, the Justice and the Rights and Values programmes will have a budget of EUR 947 million while the Creative Europe Programme will have a budget of EUR 1,850 million.

. "Our values are our compass. For me, Europe is more than just a single market. More than money, more than a currency, more than the euro. It has always been about values." - President Juncker, State of the Union speech, September 2017 "Values cannot be imposed, they must be passed on and embraced across generations and communities, and we need to find concrete ways to achieve this". - FVP F. Timmermans, June 2016 The European Union is a community of law and its values constitute the very basis of its existence I . EU values are enshrined in the EU Treaty of the EU which in art 2 states that "the Union is founded on the values of respect for human dignity, freedom democracy, equality, the rule of law and the respect for human rights, including the rights of the persons belonging to minorities. These values are common to the Member States in a society where pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail". Art 3 further specifies that the "Union's aim is to promote peace, its values and the well-being of its people" and, among others, "it shall respect its rich cultural and linguistic diversity, and shall ensure that Europe's cultural heritage is safeguarded and enhanced". Along these lines, the Commission's reflection paper on the future of EU finances states that "the EU budget supports this aim, working together with national budgets and complementing other efforts at European and national level". EU finances can provide value added in upholding common European values, such as democracy, freedom, the rule of law, fundamental rights, equality, solidarity, sustainability and peace. Learning and exchanging on cultures of different Member States is also highlighted as being a key factor to build bonds across Europe. European values such as peace, democracy, rule of law, are indicated as key criteria to identify the added value that justify EU level financing in the same way as of Treaty objectives and obligations or public goods with a European dimension. The importance of achieving a Union that caters for the cultural and social development of its citizens has been further underlined in spring 2017, on the occasion of the 50th anniversary of the signature of the Treaty of Rome by the leaders of 27 Member States and of the EU institutions. This objective was restated at the Gothenborg Summit in November 2017, which concluded that it is "in the shared interest of all Member States to harness the full potential of education and culture as drivers for jobs, social fairness, active citizenship as well as a means to experience European identity in all its diversity". In particular, the Commission announced that it would strengthen the Creative and Cultural Sectors Guarantee Facility and that it would also launch a #Digital4Culture strategy to help increase access of citizens to culture by exploiting digital technologies. The European Pillar of Social Rights, jointly proclaimed by the European Parliament, the Council and the Commission on 17 November 2017, reflects the unanimous support by all EU institutions and the Member States on the principles and rights of the Pillar, including gender equality, equal opportunities, support to children or inclusion of people with disabilities. In addition, the European institutions have stressed in a number of occasions the importance to develop and support the policies covered by the EU values framework as indicated in annex 6. In line with the reflection paper, this IA takes a fresh look at a number of funding programmes and budget lines which have in common the fact of providing an important contribution to upholding EU values through the support of rights, equality, citizenship, cultural diversity and the creativity sector. The aim is to simplify and streamline funding, to develop synergies among current programmes - including in the citizenship area which has been identified as clear case for merging - to ensure clear focus on European added value and to reach a critical mass of funding to promote and protect EU common values and to deliver tangible results to the EU citizens. In doing so, the funding dedicated to values will also reinforce the EU role as a champion in the promotion and protection of values and rights at global level. In this respect, it will contribute directly to the achievement of the global Sustainable Development Goals (SDGs), with direct linkages to SDG 4 on quality education, SDG 5 on gender equality, SDG 8 on decent work and economic growth, SDG 10 on reduced inequalities, SDG 16 on Peace, Justice and Strong Institutions. It will also contribute to enhance a rights based-approach to policies making which the EU is promoting across the globe. In the light of the above political reflections and guidance, this impact assessment analyses the feasibility of creating a EU Values framework putting together four current funding programmes - Rights, Equality and Citizenship; Europe for Citizens; Creative Europe and Justice – as well as two prerogative lines and actions in the media sector. It will accompany the legislative proposals in this area for the EU budget after 2020. This impact assessment satisfies the requirements of the Financial Regulation in respect of preparing an ex-ante evaluation, bearing in mind that the magnitude of the future funding to be devoted to the future Values framework was not known at the time of its submission to the Regulatory Scrutiny Board. 1.1.Scope and context The European Union is based on a community of values shared by all its citizens, and rooted in Europe's history, democratic principles and identity, enshrined in the EU Treaty, the EU Charter of Fundamental Rights and the UN Convention on the Rights of Persons with Disabilities and the UNESCO convention on the protection of the Diversity of cultural expressions, which is part of the acquis communautaire. Those values encompass non-discrimination and equality, anti-racism and tolerance, rule of law and independence of the judiciary. They also encompass cultural diversity, freedom of expression, including media freedom, pluralism, and citizens' participation as well as artistic freedom II . Our creations forming our common cultural heritage and cultural and linguistic diversity at all levels (national, regional, local) reflect and highlight the importance of artistic and creative freedom in Europe and make an important contribution to the fight against all forms of discrimination including racism and xenophobia and are at the heart of the EU project and of the EU identity There is now evidence that when people have wide access to culture (physically or through digital means) and are actively engaged in cultural activities, they are more likely to understand and adopt shared common values. In order to be able to play this inclusive role for Europe's society at large, the cultural and creative sectors need to be robust and competitive and artistic creations and cultural contents are to be circulated within Europe and beyond. Therefore, the preservation of cultural values and diversity requires strengthening the growth potential and competitiveness of Europe's cultural and creative sectors to ensure their capacity to reach citizens from across the EU, notably in the context of an increasingly integrated Digital Single Market. To promote common European values, rights, culture, creativity and identity, the EU has used several instruments combined in a policy mix: the funding programmes under examination in this Impact Assessment are one of those instruments, together with legislation and policy development and implementation. In the current financial perspective 2014-2020 EU-funding in this area is provided through the programmes and individual budget lines (hereafter the "existing programmes") summarised in the following table: Programme/prerogative line(*) Legal basis Content (a detailed description of these instruments can be found in annex 4) Rights, Equality and Citizenship Programme (REC) Art 19(2), 21(2), 114, 168, 169, 197 The REC promotes and protects rights, non-discrimination and equality and empowers people so that they can enjoy in the Union the rights conferred on them by the EU Treaty, the EU Charter of Fundamental Rights and the UN Convention on the Rights of Persons with Disabilities. Europe for Citizens Programme The Europe for Citizens Programme increases participation in the European process in a bottom-up participatory approach also including remembrance and historical awareness. Creative Europe Programme, (MEDIA Sub-programme, Culture Sub-programme and cross sectoral strand) Art 166(4), the first ident of art 167(5) and art 173(3) Creative Europe aims at fostering the access of EU citizens to cultural and creative (including audiovisual) content, thereby promoting European cultural diversity and Europe's cultural heritage while also strengthening the competitiveness of the European cultural and creative sectors. Justice Programme 81(1), 82(1) The Justice Programme endeavours to create an area of freedom, security and justice, supporting judicial cooperation, the rule of law and fundamental rights and a well-functioning independent judicial system. Prerogative line "Communication and evaluation activities that are contributing to an area of justice and fundamental rights" Prerogative line Information, communication and evaluation activities linked to the Charter of Fundamental Right, consular protection and the dialogue pursuant to Article 17TFEU are financed through a prerogative line. Prerogative line 090205: ''Measures concerning the digital content, and audiovisual and other media industries'' Prerogative line Prerogative line covers activities related to audiovisual policy and the implementation of the Audiovisual Media Services Directive (hereafter AVMSD), Support to media freedom and pluralism, quality journalism and media literacy is also provided through pilot schemes. (*) It should be noted that the multimedia actions line is not covered pending decision on its future by the political level. In an EU-institutional framework largely based on subsidiarity, existing funding programmes (2014-2020) have demonstrated their European added value. As evidenced by the recent mid-term evaluations, this European approach through financing co-operation projects and cross-border initiatives is hardly ever supported outside EU funding programmes. There is scope to further increase this added value by bringing several of those instruments under a single framework whose focus should be the promotion and protection of values. In addition to the political guidance described above, the creation of a EU values framework in the EU budget is justified also on the following grounds: ·All the programmes and actions that are candidates to be part of the EU values framework have a strong societal focus and are clearly related to European values. By supporting rights, values, justice, culture, artistic and creative freedom, the EU exchanges meaningful and relevant messages with European citizens, thus contributing to European social well-being. ·At the same time, the programmes have also a positive impact on the economy by supporting for instance gender equality and anti-discrimination policies and promoting equal access to the labour market for all, or by supporting creation, promotion and circulation of cultural goods and access to cultural services as well as the competitiveness of Europe's cultural and creative industries.

·They have helped shape a common European identity by supporting societal policies, which underpin and further strengthen economic and market values and policies of the EU. ·They lend themselves to the integration into a single framework as they all deal with values and citizenship issues leading to a more coordinated approach in this field. ·They have not yet achieved their current objectives, which are still relevant and closely interlinked to each other. ·They are small instruments, which have not yet reached critical mass and whose effectiveness is constrained by their relatively low budgets. Therefore, their joining under one framework would help increase their effectiveness through synergies and mutual reinforcement. Some examples of initiatives financed by the current programmes : A social media campaign "#SayNoStopVAW" has been funded by the REC programme to raise awareness and take a clear stand against violence against women. The campaign’s dedicated website includes testimonials from funded projects, information material and contacts to national support services. Through the campaign, the Commission reaches out to target groups and stakeholders both directly and through social media promotion. The European Disability Card helps people with disabilities to travel more easily between EU countries, by putting in place a system of mutual recognition of disability status. The Card ensures an equal access to certain specific benefits, mainly in the areas of culture, leisure, sport and transport. By piloting this Card since 2016, the REC programme concretely contributed to a more equal and inclusive European Union. The Crocus Project funded several times under the Europe for Citizens programme is an Irish initiative whereby the Holocaust Educational Trust Ireland provides yellow Crocus bulbs for school pupils aged 11 years and older to plant in memory of the 1.5 million Jewish children who perished in the Holocaust and thousands of other children who were victims of Nazi atrocities. The Crocus Project is a tangible way to introduce young people to the subject of the Holocaust and to raise awareness about the dangers of racism, discrimination, prejudice and hatred. The children’s involvement in learning about the Holocaust, in planting the bulbs and watching the flowers grow, encourages ongoing learning about the importance of tolerance and respect. The Crocus blooms around the end of January about the time of international Holocaust Memorial Day (27 January). When people admire the flowers, the pupils explain what they represent and recall the children who perished in the Holocaust. The project called "Networked Culture in the Post-Digital Age" was funded by creative Europe to investigate the relationships between digital culture, networked social and political organisation and new business models through a series of artistic and discursive activities. The project involved five European partner organisations in the delivery of festivals, exhibitions, commissions of new artworks as well as lectures, debates, workshops, conferences and the production of collateral assets including books, digital publications, videos, a website and social media platforms III . Website: http://mastersandservers.org . By co-funding Europa Cinemas, MEDIA helps increasing the audiences of films and empowers cinemas to innovate and attract younger audiences. QUAI10, a member of Europa Cinemas, is a unique place in Belgium, bringing together cinema and gaming. In 2016, QUAI10 reached 43,961 visitors across 1,829 screenings while the gaming area is welcoming around 300 people every week. 1.2.Lessons learned from previous programmes Thanks to the implementation of EU legislation, policy measures and funding, some progress is visible in the promotion and protection of rights and values. Examples are increased awareness among people about their rights, their common history, increased female employment rate, promotion and protection of the rights of the children, enhanced democratic and civic participation of citizens at Union level but also a deeper understanding of and respect for different cultures, traditions and artistic expressions. As a result of EU legislation people can rely on a set of rights all across the EU and can count on an independent and effective justice system and the respect of the rule of law. On numerous past occasions, the European Parliament showed its firm commitment to combat violence against women and children through a strong and well-funded DAPHNE programme/objective and to the other objectives covered by the REC Programme (such as gender equality, LGBTI and others) IV . By becoming a party to the United Nations Convention on the Rights of persons with Disabilities (UNCRPD) in 2011, the EU committed to promoting and protecting the rights of persons with disabilities V . Collaborative cultural projects have helped to reinforce mutual understanding and tolerance through their potential of reaching out European citizens across national borders. Support to the culture and creative sectors has helped them to become well established in the economic and policy contexts as important assets in strengthening Europe’s economic structure, maintaining its competitiveness in the global economy – in particular in the field of audiovisual – reinforcing the mutual understanding among people from different cultural backgrounds, preventing radicalization and safeguarding of EU values. In preparation of the proposals for the new generation of funding programmes the results of the current and predecessor programmes were evaluated. The mid-term evaluation of the Creative Europe and Europe for Citizens programmes are available in their final version while the mid-term evaluation of the REC and Justice programmes will be available by end of June 2018. Nevertheless, the external evaluation should be available by end of May 2018. The mid-term evaluation of creative Europe programme covers the implementation of the Creative Europe programme, its predecessor programmes and all their sub-programmes. Key stakeholders have also been consulted (details available in the annex 2). The following analysis is based on these evaluations and consultations unless differently indicated. All the evaluated programmes have shown clear EU added value and evaluations show that they are still relevant in the current and post-2020 scenarios. In particular, the REC programme has shown a high added value as in absence of EU funding the projects carried out would not have taken place, due to lack of resources at national level. Interventions funded are seen as generating better results and more benefits than those funded through national/local interventions, mainly because their transnational dimension, the higher flexibility, and their higher quality and innovation as compared to projects funded at the national level. The Europe for Citizens Programme has demonstrated its added value at EU level both in its impact on participants and its role as a complement to other EU funding programmes and policy initiatives in the field of education, culture and EU citizenship. Activities such as remembrance activities, town-twinning or pan-European networks are intended to broaden perspectives and to develop a sense of European belonging and European identity. The experience of the Creative Europe Programme and the findings of its mid-term evaluation confirm the necessity to continue providing European added value by supporting the cross-border collaboration and partnerships between European cultural and creative operators and the circulation of works. Support at the European level adds value through economies of scale, sustainability, and synergies that cannot be replicated through the national, regional or local levels. The evaluations also analysed factors that hindered the possibility for the programmes to be effective and efficient to their full extent and identified areas for improvement and simplification. While details on specific evaluations are available in annex 3, in the following sections, the lessons learned from previous programmes are grouped in four main categories according to their possible impacts on respectively: ·strategies and priorities ·possible synergies ·delivery mechanisms

·monitoring 1.2.1.Lessons learned on strategies and priorities The problems and drivers underlying their general and specific objectives are still relevant. The intervention strategies of the Programmes are still adequate to achieving the desired objectives and still relevant to the needs of the beneficiaries. However some new priorities emerged and improvement could be made in specific areas of the programmes. In particular: ·Within the Specific Objectives of the REC programme “Prevent and Combat all Forms of Violence”, there is room for enhancing the focus on emerging needs such as e-violence. Setting the specific objectives at the level of the policy field (i.e. promoting gender equality, anti-discrimination etc.) as well as the architecture of the programme has increased the flexibility of the programme to focus on specific priorities and re-adjust actions to adapt to emerging issues during the implementation. ·Creative Europe has contributed to delivering the EU policy agenda, stimulating investment and job creation (3000 jobs created over 2014-16) and deepening the internal market especially through greater circulation of creative content (400 films circulated per year) and most supported activities would have been significantly reduced without Creative Europe support VI . Yet the mid-term evaluation shows that these results could have been much larger with more funding. As an example, during the period 2014-2017 only 13, 96% of the projects submitted under the cooperative strand were funded. Indeed, success rates have dropped, meaning that many good projects cannot be funded VII . Furthermore, a more flexible definition of support actions would also enable the programme to support innovative, cross-cutting content not only in terms of technology (e.g. virtual reality, transmedia, web-series) but also in terms of social and artistic innovation (e.g. grass-root events, cooperation between organizations from various sectors) as well as new business models e.g. online first release strategies. Feedback from stakeholders calls more for an evolution than a revolution on the architecture of the future programme VIII . This finding was supported by the report on the Creative Europe issued by the European Parliament in 2016 IX ·The MEDIA sub-programme has grown in scope over the years without an equivalent increase in budget. Thus the funding is spread too thinly across many priorities, weakening its potential impact. In 2017, a budget of approx. €110 million was distributed to over 2000 projects. The sub-programme is also fragmented as it is structured around 14 schemes which target specific parts of the industry’s value chain. Collaboration across silos and across borders could be encouraged more, in particular to develop stronger pan-European distribution strategies X and visibility of European works in Europe and abroad. European VOD services need to scale up at European level, as they currently operate only at national or regional level XI . In its 2016 study on MEDIA XII , the European Parliament concluded that MEDIA was effective so far but was hampered by its limited budget. ·The Creative Europe's Culture sub-programme has also grown in scope over the years without an equivalent increase in budget whereas there is increased awareness and evidence of the contribution of the cultural and creative sectors to society and the economy (two thirds of the respondents to an open public consultation launched during the mid-term evaluation of Creative Europe Programme believed that the results of the Culture Sub-programme could not have been achieved using less funding ).. It also appears that with its strong focus on co-operation and partnership, the sub-programme does not cover the needs of some essential cultural and creative industries such as the music sector, the book sector or architecture which need intervention at specific points of the value chain. Despite its openness to participation of organizations from third countries, activities outside Europe or of non-EU nationals in Creative Europe are currently limited which hampers the presence and visibility of European cultural and creative contents beyond its own borders XIII . Overall, around 90% of the respondents to the above-mentioned public consultation believe that most priorities of the Culture Sub-programme are still relevant or extremely relevant . Political priorities such as the People-to-People Dialogue with China or deepening relations with Japan cannot be implemented lacking an earmarked budget. ·The guarantee facility in the cross-sectorial strand of Creative Europe responds directly to the needs of cultural and creative SMEs, which have difficulties accessing loans due to the intangible nature of their assets. The strong market response to its launch in 2016 shows the relevance of this instrument to the needs of the market: as of Q3 2017, 161 SMEs received loans for a total value of € 32 million, for over 200 projects employing more than 900 people. A top-up of € 60 million, equivalent to 50% of the total budget, was provided already in 2017 allowing a quicker deployment of guarantee support, reaching more countries and sectors and enhancing the geographic and sectoral balance. ·In some areas targeted by the Justice programme, the basin of potential recipients of the actions could be expanded such as in the field of Judicial Training, where stakeholders from national administrative bodies and regulatory agencies could be included in a more systematic way. ·Regarding the Europe for Citizens programme, the evaluations and studies of the past 10 years showed that the programme has played an important role as the only EU programme targeting citizens directly and involving them through a bottom-up approach. In its March 2017 report on the implementation of the Europe for Citizens programme (2014-2020) XIV , the European Parliament expressed its strong support for the programme, including a substantial budgetary increase. ·The audiovisual prerogative lines and actions related to audiovisual policy (e.g., on media freedom, quality journalism and media literacy) and the AVMSD implementation have been an invaluable tool in the creation of values, enhancing a more participatory citizenship and better democracies. However actions in this area have relied on EP support through pilot schemes. The lack of a structured access to funding is a clear barrier to deliver on emerging threats, such as the impact of disinformation and fake news. This is all the more serious considering that media initiatives could play a key role in supporting democracy across the EU. 1.2.2.Lessons learned on possible synergies As indicated in the Commission's reflection paper, the policy field of citizenship is a good candidate to develop synergies among current funding programmes. The Europe for Citizens Programme has demonstrated its added value at EU level both in its impact on participants and its role as a complement to other EU funding programmes and policy initiatives in the field of education, culture and EU citizenship. Activities such as remembrance activities, town-twinning or pan-European networks are intended to broaden perspectives and to develop a sense of European belonging and European identity. Synergies with other relevant EU funding programmes, in particular those analysed in this Impact Assessment, could be strengthened through reinforced thematic cooperation, for example in the area of anti-racism, equality, cultural heritage, historical memory and cultural diversity where it would be possible to develop common activities, like for example peer learning or common stakeholder conferences. The box hereafter provides some concrete example of possible synergies, also beyond the citizenship area. An analysis carried out internally by the Commission's services highlights that all concerned programmes deal with "citizenship issues': The REC addresses the issue of the "Union citizenship" in the sense of the EU treaty (e.g. free movement, participation in European and local elections in the Member State of residence, consular protection, etc.); Europe for Citizens addresses the participatory dimensions of citizenship, giving citizens the opportunity to participate in the building of the European Union in a bottom-up approach. The Culture sub programme of Creative Europe also aims at bringing EU citizens closer together and at encouraging their empowerment via participation and engagement in cultural and creative activities. In some occasions, organisations working on citizenship issues have the choice to apply for similar calls for proposals and do so depending for instance on the more advantageous co-financing rate. In some EU Member States, the Europe for Citizens Contact Points and the Creative Europe Desks are hosted by the same organisation and cooperate on a regular basis. In all these respects, bringing together the current programmes will allow for rationalisation of activities and development of synergies. Synergies should also stem from the broader scope of the new programme as compared to the current individual programmes. In that respect, the interplay between the promotion of values from one side and the promotion of active citizenship or cultural diversity and media contents from the other side, is expected to enlarge the possibilities of financing relevant activities and to reach a broader public. As regards town-twinning or civil society projects currently funded by Europe for Citizens, it would be possible to add new thematic dimensions linked for example to culture, children's rights or the equality between women and men. Synergies could be also reinforced in the area of valorization and dissemination of results. For example, websites of current programmes could be interlinked and the online database Valor so far used to showcase projects funded under Creative Europe, MEDIA and Europe for Citizens could cover all programmes participating in the framework. The respondents to the open public consultation, with experience in one or more of the four EU Programmes, agree that "better coordination between different programmes/funds" is one of the main steps to be taken to simplify and reduce the administrative burdens for beneficiaries.

1.2.3.Lessons learned on delivery mechanisms Delivery mechanisms have in general proved adequate to pursue the objectives of the programmes. In particular, the streamlined structure of the Europe for Citizens programme XV and the introduction of multi-annual thematic priorities have allowed for a more focused approach. The application and reporting process have considerably been simplified through the use of lump sums and the introduction of electronic application and reporting forms. However, comparing the different experiences of the current programmes evidences significant room for improvement in some areas. As regards the REC and the Justice programmes: ·The duration of Operating Grants could be extended to cover at least two years (instead of one), in order to reduce the administrative burden – in terms of both applying and reporting – on beneficiaries and Commission services alike. ·The introduction of standard unit costs, at least for some typologies of activities (e.g. training), could significantly reduce administrative and accounting duties on beneficiaries and on Commission services involved in management and control. As regards Creative Europe, the large volume of small grants has the advantage of supporting many small beneficiaries and activities. However, it also creates high administrative costs with time and effort focused on processing calls for proposals and transactions XVI . Less time is available for collecting data on the programme, monitoring project results and ensuring visibility of EU support. Therefore, delivery mechanisms need to be designed to streamline support and group beneficiaries while keeping an open door to the participation of all cultural and creative structures, whatever their size. Furthermore, incentives could be introduced through modalities which reward success in meeting performance criteria, in order to increase the focus on policy objectives XVII . Finally, the programme's visibility could be increased in particular as regards Europe for Citizens and the Justice programme. In this last one, there is a need to further improve communication activities, also with a view to foster participation from organisations in Member States with relatively low participation rates. Dissemination could equally be enhanced through mutual collaboration between funded projects. 1.2.4.Lessons learned on monitoring The revision of the monitoring indicators has been identified as an area for improvement in particular for Europe for citizens, the REC and the Justice programmes. It seems particularly important to develop workable indicators allowing for precise monitoring of the quality and the impact of projects. The system of indicators for the REC could be streamlined and strengthened so as to meaningfully capture the expected results of the Programme. Data quality should be better taken in consideration as regards the Justice indicators. Regarding Creative Europe, the absence of performance indicators sufficiently robust and linked to the activities of the Programme has not allowed a systematic analysis and reporting of the results and impacts XVIII . A proposal to be adopted by a Delegated Act to strengthen the monitoring framework systems, processes and indicators for the current Programme during the 2nd quarter of 2018 is being prepared. 2.The Objectives This chapter presents an analysis of the challenges currently faced by the EU in the Values area as well as the added value of acting at EU level. Taking into account the current funding programmes as baseline scenario, the drivers upon which the Commission can act to tackle those challenges are then identified and regrouped according to the impact they might have on a) the priorities and architecture of the future programmes, b) the delivery mechanisms and c) the monitoring system. On this basis, the objectives of the future funding will be defined as well as the architecture and priorities of the future programmes that will be further detailed in chapter 3. 2.1.Challenges for the programmes of the next MFF 2.1.1.Common policy challenges: the added value of EU-level action on values and the subsidiarity principle Despite the progress achieved by the current programmes, several gaps persist in the concerned policy areas, while at the same time there are also new challenges that need to be tackled. The common challenges faced by the EU in the area of values are twofold: ·Our vocation to build a strong internal market but at the same time also a community based on a common cultural bond, shared values, rights, historical and cultural heritage and people's involvement is hampered by the tendency to focus on our differences and not what unites us. Populist, extremist and nationalist movements challenging the idea of our open inclusive, cohesive and democratic society where cultural participation and capability based on education allow for the building of a more resilient way of living together. ·The fragmented nature and limited resources of EU current funding programmes dedicated to values, rights, citizenship, culture and media limits the capacity of the EU to respond to old and new challenges. This is particularly true in the context of the digital shift, which has had the effect of increasing even more the competition from US players in European audiovisual and cultural markets, with tangible negative effects on Europe's cultural diversity. Digitalisation of national justice systems, civic technology, robotics, registers and legal technology also imply increased needs to accompany the technological developments in national administrations. "Lack of budget of the programmes to satisfy demand" has been identified by the respondents to the public consultation as the main obstacles that could prevent the current programmes from achieving their objectives. The consequences of not addressing this double challenge could be very high if confidence in European institutions and values is eroded. The quality of our democracy would be weakened and there are already alarming signals, knowing for example that today only half of young Europeans regard democracy as the best form of government. Discrimination may be amplified by the misuse of online networks, whilst citizens are less confident in exercising their rights XIX . Public opinion could become increasingly inward looking and locked into national media and cultural "bubbles" under deteriorating indicators of media freedom and pluralism. This would also affect negatively the development of a sense of European cultural identity. Europe's image on the world stage would also be weakened, at a time when other global players are building up their soft power through culture.

Although most of the challenges and problems are common to all areas covered, hereafter they are grouped according to their predominant factors: European values are insufficiently shared and rights are still not fully enjoyed by people. In particular: ·The European values on which the EU political (collective) and citizens' identity is based are still not perceived by EU citizens as being the basis of EU project: as an example, for three out of four young Europeans, the reason behind the EU is not shared values, but rather economic cooperation. XX . According to the respondents of the open public consultation, "Promote European identity and common values" as well as "promote rights and equality" are important common policy challenges (being one of the four first challenges mentioned) to be addressed in each of the four programmes. ·The rights stemming from the EU citizenship - on free movement, consular protection and electoral rights XXI – are still not fully known XXII and implemented, thus hindering citizens' political and societal participation XXIII . ·The access and understanding by EU citizens of truly European cultural forms of expression, transmitting EU values, is being challenged by the overwhelming presence of non-European, in particular US, cultural goods and services in many EU countries. ·The opportunities provided by new forms of communication to receive, consume, share information and engage in social and civic life are not sufficiently exploited. In addition, these opportunities are also accompanied by threats such as digital exclusion, decreasing trust in media, the propagation of fake news, the misuse of personal data, hate speech, decreasing media literacy and the manipulation of information networks. ·As a result of economic crises, growing inequalities and perceived threats of migrations, nationalism, populism, Euro-scepticism and intolerance gained a ground to advocate exclusion and isolationism as the only way to overcome the current challenges. Fundamental rights and the values on which the European Union is founded are put to the test and in some cases the rule of law, access to justice, space for civil society and the independence of the judiciary and media freedom are challenged, putting into question the same concept of democracy. Citizens' sense of belonging to and engagement in the EU project are also undermined. ·Data show that discrimination against LGBTI people XXIV , Roma XXV ,, persons with disabilities XXVI , elderly people or, on the ground of religion, XXVII as well as violence against women XXVIII and children, in the society and in the labour market, still persist; racism, xenophobia and hate speech are often amplified by the use of social network and new technologies; sensitive social and societal issues related to religion and beliefs are rising up in parallel. Significant gender inequalities persist XXIX . A common judicial space still needs to be built. In particular: ·Judicial cooperation and law enforcement in civil and criminal matters is insufficient and access to justice across Member States is still difficult. Tools for collecting comparative information about the quality, independence and efficiency of Member States justice systems need to be improved. A main obstacle to mutual recognition and judicial cooperation is the lack of trust in the judicial systems of other Member States XXX . Europe's cultural diversity depends on resilient and robust cultural and creative sectors. However those sectors, notably the audiovisual XXXI or music sector, are facing a number of challenges, as a result of the increased competition from global players and the digital shift. In particular: ·European cultural diversity and richness and the sustainability of the Culture and Creative Sectors (CCS) are challenged by digitization and globalization and their powerful impact on the way artists produce and distribute their works and relate to their audiences. The collapse of DVD markets, new consumer expectations and the continued power of US studios XXXII together with the rise of global digital giants like Amazon, Itunes, Google and Netflix have impacted the traditional value chain. Producers, distributors, broadcasters, cinema theatres and all types of cultural organizations need to innovate in order to attract new generations of audiences XXXIII . ·The quality of Europe's audiovisual industry is internationally recognized but it is not competitive enough within the Digital Single Market. ·The EU produces over 1700 films per year against 800 for the US as well as over 900 TV fiction titles per year (over 400 for US). However, the EU does not make the most of this production volume, due to the lack of international distribution. In cinema and theatres EU films are released on average in 2.6 countries vs. 9.7 countries for US films. In TVOD, EU films are released on average in 2.8 countries vs. 6.8 countries for US films. In particular, VOD is growing fast. However, the share of EU films on TVOD (19%) is lower than in cinemas (31%) whilst only 47% of EU films released in cinemas make it to VOD. The average audience share of non-national European films in cinemas remains at 7% also due to a lack of resources to promote films. On average, marketing expenses represent 50% of the production costs of US films against, for example, 10% for French films. To bring the marketing of EU films at a par with US films, € 1.6 bn, based on a limited number of countries for which we have data (DE, DK, FI, FR, GB, IT, NL, SE, SI) would be needed. European films only benefit from 22% of promotion spots in VOD. Also, only 20% of European films are co-productions whereas they are more successful than national films, generating 50% of cinema attendance. Also, audiovisual professionals, in particular from lower capacity countries, need to strengthen their capacity to operate at the European level XXXIV . · In the audiovisual field, the AVMSD is being adapted to ensure a level playing field. The new AVMS Directive will set-up an objective of 30% of European works available on VOD. This will be an opportunity for European works, but accompanying measures are needed to help make European non-national works available, specifically in low producing countries. The policy challenges identified in the previous sections are common to all EU Member States and have cross-border dimensions. Indeed, while action at national level is important, the single Member States do not have enough leverage to tackle these challenges. In that respect action at EU level is needed following the subsidiarity principle, which is analysed in the next table. Subsidiarity and added value In a time of strain, we must return to the rational and realistic tenets on which Europe was first constructed, while providing people opportunities to participate directly in EU activities. Cultural participation is a vital element to contribute to understanding each other across borders. This leads to a solid common framework of justice and fundamental rights, where democratic standards are protected, cultural links are fostered and citizens' participation is enhanced. These values can provide a compelling basis for communal identity, even in a time of vulnerability and struggling economies. Indeed, the respect of rights and values, the shared cultural engagement, the common historical inheritance, and the fraternization of peoples have been steadfast qualities of the European ideal that have impacted positively on the everyday lives of the European man and woman. Focusing EU funds and policies and re-centering our actions on these values will allow strengthening a European identity and a concept of European belonging which can endure also among the young generation. This can only be achieved at EU level, overcoming individualistic and limited national approaches, building on our common history, on what unites us and on the rich diversity of the European society in order to reinforce our common values rather than departing from them. The creation of a European area of justice and rights, which is at the core of the promotion and protection of Values, requires transnational cooperation mechanisms and networking opportunities, which can typically not be achieved by Member States acting alone. In many areas, such as equality and non-discrimination or citizenship, individuals are protected by European legislation, but are not sufficiently aware about their rights. Only awareness-raising actions, share of best practices and training at EU level can ensure that persons in all Member States are reached, that administrative structures/authorities are informed and that a consistent message is passed on. Moreover, Member States are not in the best position to ensure consistent interpretation and coherent application of legislative instruments throughout the EU.

In the area of rights, equality and in particular in combatting violence against women, there is EU-added value to work with national authorities and all stakeholders to find adequate solutions to remaining challenges at European level. EU funding is crucial to support civil society directly. In addition, EU acquis recognizes the role of NGOs which provide much of the support for women victims of violence (shelters). The recognition of the pivotal role of NGOs is also part of the Istanbul Convention on combating and preventing violence against women and domestic violence which was recently signed by the EU XXXV . In the area of justice, the key principles of mutual trust and mutual recognition of judicial and extra-judicial decisions can be supported more efficiently by action at EU level. In the area of data protection, the lack of a consistent enforcement of EU rules and of cooperation mechanisms between Member States can only be addressed satisfactorily by EU level action. When it comes to the audiovisual sector, with a combined budget over € 2 billion per year, film support schemes at national level, focus primarily on the financing of the production of European works. EU support intervenes on actions upstream (training, development) and downstream (distribution, promotion, exhibition) with the exception of TV coproductions in order to ensure that European works circulate better across borders, are visible and thrive in all distribution channels including online. To that aim, EU support accompanies the free circulation of audiovisual media services enhanced by the AVMSD and in particular, the quota of European works in catalogues of VOD services. EU support becomes now even more critical in an increasingly digital, mobile, and social media environment with more intense competition from non EU players, which have a prevailing market position in the EU markets, to the detriment of traditional broadcasting services, which puts at risk the financing, access and visibility of European independent productions. Support to the cross-border mobility of artists and the circulation of works is usually limited to bilateral or less systematic intervention at other governance levels and direct or indirect benefit at the respective level (i.e. local, regional or national) dictates the existence of such funding. Safeguarding and promoting European cultural diversity is a task to be tackled at the European level. As, in certain cases, this depends on the resilience of a specific creative sector (heritage, music, books), structuring and systemic support cannot be delivered by other levels. Finally it is worth to highlight that around 80% of the respondents to the open public consultation agree that the current programmes add value to a large or fairly good extent to what Member States could achieve at national, regional and/or local levels 2.1.2.Challenges in terms of flexibility and simplification: towards a new architecture, delivery mode and monitoring system of future programmes The EU can tackle the common challenges described in the section above by acting on different drivers that can lead to the redefinition of the architecture of the EU values framework and its underlying programmes, their priorities, their delivery modes, and their monitoring systems. This is expected to improve synergies between current programmes, simplify them and increase their performance, coherence, efficiency and effectiveness. These elements are detailed hereafter. Drivers affecting the priorities and architecture of the future programmes ·Available mid-term evaluations confirmed that the contents of current funding programmes are still highly relevant to respond to the needs they were designed to address and confirming the importance of their impact for the target groups. They confirmed the need for funding in the respective areas and acknowledged that the funded activities contribute towards the achievement of the foreseen objectives. In terms of scope, some recommendations were made, but without putting in doubt the need for the continuation of funding XXXVI . ·A critical mass of funds needs to be dedicated to the promotion of Values to make a difference in peoples' lives and close the funding gaps we currently have in many of the policies covered. Mid-term evaluation showed in particular that there is a lack of adequate funding to scale-up efforts in the field of values which become important in some specific areas, such as audiovisual XXXVII , culture XXXVIII or citizenship. ·The full potential of culture needs to be exploited as drivers for jobs, social fairness, active citizenship as well as a means to experience European identity in all its diversity in a context of rapid and profound changes induced by the technological revolution and globalization. ·The existence of several small-scale funding programmes and prerogative lines and actions managed through EP preparatory actions in this area does not support flexibility but rather presents a fragmented approach. The MEDIA sub-programme is itself fragmented into 14 separate schemes which limits flexibility in the design of support actions. Each programme focuses only on a specific policy area, setting small-scale scope for its activities. Horizontal and cross-cutting issues cannot be addressed in a comprehensive way. As indicated in previous sections, part of the activities funded by the current programmes, prerogative actions and EP preparatory actions would benefit from being more coordinated under the same intervention logic. ·There is a lack of flexibility to respond to emerging opportunities and challenges, in particular those coming from the digital disruption of the audiovisual, music and information industries, which has challenged existing distribution channels and led to an explosion of user generated content and new audience patterns XXXIX . In the field of news media, guaranteeing an access to quality content, including by countering the global impact of fake news, remains important. ·The CCS, in particular the audio-visual XL and music sectors, need to scale up in order to be competitive at European level, where there is fierce competition from global players. Furthermore it is still a challenge for cultural and creative professionals to go beyond their national or linguistic borders, resulting in sub-optimal circulation of cultural works and limited choice for citizens. ·Access to finance remains a key constraint to the development of cultural and creative SMEs. Their value is based on intangible assets, making it harder for financial intermediaries to assess risk and ensure collateral. The financing gap is estimated at € 7 billion for 2014-2020 XLI . Drivers affecting delivery mechanisms ·Potential synergies between programmes dealing with values, rights, culture, creativity, and audiovisual have not been exploited also leading g to the risk of overlaps. We currently observe a loss of potentially innovative projects of a more cross-sectoral nature as they do not fit into the tight frame of one of the existing programme. This is the case for instance for projects which would promote new forms of culture at the crossroads between different creative sectors, through the use of digital means or project that support cross-over initiatives between culture and fundamental rights or audio-visual and non-discrimination policies (e.g. a slate of films promoting specifically European values), "Facilitating funding for actions cutting across the sectors of action" has been identified by the respondents to the open public consultation as one of the main steps to be taken to simplify and reduce the administrative burdens for beneficiaries. Also, where the programmes overlap, notably on citizenship issues, beneficiaries can submit similar funding applications under several programmes or choose the programme not based on thematic relevance, but on the average success-rate under a given programme. There is a certain degree of overlap of similar structures in different programmes (i.e. national contact points) ·Insufficient or limited scale dissemination and use of the results and outputs of the funded activities do not allow for broader public awareness and enhanced complementarity of funded actions XLII . ·Support activities for media freedom, quality journalism and media literacy which are increasingly relevant in the context of the growing phenomenon of misinformation (fake news) and its impact in political elections have been developed through isolated pilot schemes without a proper comprehensive strategy and are insufficient to close the gap between citizens and the institutions at large.

·Low success rate in projects applications in certain areas such as Daphné, Creative Europe XLIII or Europe for Citizens due to limited resource availability generates frustration and demotivation among applicants. ·Dilution of funds ('saupoudrage'): the funds, which are currently too modest, are often divided among many rather small-scale projects, making impossible to focus on (politically) interesting initiatives and missing steering potential. However, small-scale projects (for example town-twinning) allow to reach out citizens who otherwise would not participate in European projects. A right balance needs to be found in this respect. ·Complexity of funding rules represents an obstacle for applicants: each year prospective applicants for a grant must keep track of high number of different calls for proposals and have to work through different priorities, eligibility, selection and award criteria, different supporting documents and different deadlines for submission. In the same vein "the use of more simplified application forms", has been identified by the respondents to the open public consultation as the main step to be taken to simplify and reduce the administrative burdens for beneficiaries. Drivers affecting the monitoring system ·More efforts are needed to monitor closely the outputs, results and impacts of the programmes and to make the monitoring system a concrete instrument to improve the effectiveness of funded measures. The Commission services together with the Education and Culture Executive Agency where relevant, need to define a monitoring strategy to ensure the correct delivery of the outputs. Furthermore the results achieved need to be communicated more regularly and transparently to stakeholders and citizens alike. 2.2.Objectives of the programmes of the next MFF The above section shows that the objectives of the current funding programmes are still highly relevant to respond to the policy needs and that the objectives of current MFF programmes in this area are still not achieved although still valid. In that respect, the analysis done does not lead to a complete re-thinking of the objectives of the future funding programmes in this area, but rather to a re-focusing on areas of actions with a clear EU added value to respond to policy needs. 2.2.1.The aim of the initiative Promoting and defending EU values, rights and cultures has profound implications for the political, social, cultural, judicial and economic life of the Union and contributes to making the EU tangible in the people day-to-day lives. Therefore, sustained and reinforced action at EU level in this area is required to address the new challenges and persisting gaps and ensure the promotion, effective protection and respect of rights and values: this will also contribute to enhancing the internal market and build a more prosperous and more cohesive EU. Furthermore, it will allow the EU to fully play a key role in defending and promoting those values within the EU but also at global level, also contributing to the Sustainable development Goals. Therefore the overarching aim of the initiative is to create a EU values framework of the EU budget in order to sustain open, democratic, culturally capable, inclusive and creative societies and empower people through protecting and promoting rights, values, European cultural and linguistic diversity and heritage - as enshrined in the EU Treaty, in the EU Charter of Fundamental Rights and the UN Convention on the Rights of Persons with Disabilities - through further developing an EU area of justice, and through supporting the competitiveness and sustainability of the Cultural and Creative Sectors. 2.2.2.The specific objectives of the future funding programmes In light of the general objective described above and taking into account of the analysis done in the previous sections, future funding will focus on areas of action which have clear EU added value and are relevant to the policy needs. In particular, the proposed specific objectives of the future programmes are re-grouped under four main strands: empowering people, media, culture and Justice and are the following: EMPOWERING PEOPLE Empowering people through the promotion and protection of rights, values and equality, and through creating opportunities for citizens' engagement and participation, including by supporting civil society organisations. MEDIA Promoting the competitiveness and scalability of the European audiovisual industry and cultural diversity and artistic freedom as a EU value through support to the creation, promotion, access and dissemination of European works reaching large audiences within Europe and beyond thereby accompanying the AVMSD CULTURE Safeguarding, developing and promoting European cultural diversity and Europe's cultural heritage and strengthening the competitiveness of the European cultural and creative sectors (with the exception of the audiovisual industry) JUSTICE ·Facilitating and supporting judicial cooperation in civil and criminal matters, promoting the rule of law by supporting the efforts to improve the effectiveness of national justice systems;

·Supporting and promoting judicial training, with a view to fostering a common legal and judicial culture; ·Facilitating effective access to justice for all, including by electronic means, by promoting efficient civil procedures and by promoting and supporting the rights of victims of crime as well as the procedural rights of suspects and accused persons in criminal proceedings. The intervention logic and the link between the initiative and the future programmes are summarised and visualised in the following diagrams. 3.Programme structure and priorities 3.2.1.Key features of the current funding programmes: the baseline scenario The four funding programmes and the prerogative lines are implemented via centralised direct management. As regards the implementation of the annual work programmes of the REC and JUSTICE programmes, three types of actions are funded: action grants and operating grants mainly addressed to civil society organizations, legal practitioners, but also to Member States authorities through restricted calls for proposals; it also funds specific actions taken by the Commission, such as studies, surveys, conferences, specific IT projects, awards etc. (Commission initiatives through procurements), this latter weighting for around 20% of the total budget. The Europe for Citizens programme awards action grants and operating grants mainly addressed to civil society organisations. Approximately 20% of the budget has been devoted to "European remembrance", 60% to "Democratic engagement and civic participation", 10% to valorisation activities and around 10 % for administrative expenditure. The programme has also been used to support specific actions taken by the Commission in relation to the management and the promotion of the European Citizens' Initiative (IT support, communication, etc.). The financial envelope for the implementation of the Creative Europe Programme is allocated as follows: at least 56 % for the MEDIA Sub-programme; at least 31 % for the Culture Sub-programme; a maximum of 13 % for the Cross-sectoral Strand. The MEDIA sub-programme award action grants which support concrete audiovisual projects such as films that are then made available in the market. Support focuses on training, content creation, cross-border distribution of works, promotion and market access. The main beneficiaries are audiovisual professionals and SMEs, consisting of independent European producers and distributors; cinemas, online platforms and festivals focusing on European films; audiovisual markets and promotion networks. In the period 2014-2017 the programme has awarded 7960 action grants. Grants account for 100% of the MEDIA sub-programme. The Creative Europe's Culture sub-programme mostly consists in action grants to mainly public but also private cultural organizations and institutions such as theatres, museums, arts or music venues, heritage sites or professional networks., but also includes prizes (two Melina Mercouri prizes for the two European Capitals of Culture of any given year), Framework Partnership Agreements, one operating grant (for the European Union Youth Orchestra) and service contracts. Within the cross-sectoral strand, the Cultural and Creative Sectors Guarantee Facility, which is a financial instrument, has a budget of € 121 million in the 2016-2020 period. A top-up of €60 million from European Fund for Strategic Investment (EFSI) was agreed in 2017 and, given the strong market demand, the EFSI is preparing a second top up of at least the same amount. The original budget of the Guarantee Facility represents 8% of the Creative Europe financial envelope. REC* Europe for Citizens Creative Europe / MEDIA Creative Europe / CULTURE Justice* Number of calls launched each year 18 1 -2 13 Minimum 2, but up to 10 9-14 Number of awarded action grants in the period 2014 -2017 302 1371 7960 583 (including FPAs) 238 Number of awarded operating grants in the period 2014 -2017 64 145 0 2 34 Number of prizes in the period 2014 -2017 8

* the period reflected for the Justice and the REC programmes is 2014-2016 The assumption under the baseline scenario is that the above key features and budget related to the individual programmes will remain the same. In the following paragraphs, there is an estimation of the possible impact on the programmes of a possible reduction in the budget of approximatively 15%. In particular: A 15% reduction in funding for the REC and the JUSTICE programmes would be reflected in the number of annual calls for proposals and in the annual prioritisation, i.e. concentration of funding on fewer programme priorities in one year and promoting other priorities in the following years, in contradiction with the increasing needs in the field. This reduction would also mean the reduction of the Commission's activities financed through procurements such as studies, data collection, awareness-raising campaigns etc., as priority would need to be given to continuity in any financial support in particular to key partners through grants. This reduction would also have a negative impact on the possibility to fund all the needed trainings of the judiciary on EU legislation, an activity with a clear EU added value. For Europe for Citizens, a budgetary cut of 15%, would cut the baseline budget down to €157 million which is insufficient in the context of the Commission's commitment to put citizens in the centre of the European process. In case of a budgetary cut by 15%, it would have to be mirrored proportionally in all strands and measures of the programme. Under this scenario, the critical mass of participants and the geographical coverage of activities necessary to achieve the intended impact would no longer be reached. A stable budgetary envelope (based on the budget 2017) would allow continuity but still with a limited impact. A decrease of 15% in funding for the MEDIA sub-programme of Creative Europe will inevitably require streamlining and concentrating on a limited number of actions. As MEDIA includes several measures to positively discriminate in favour of lower production countries and/or countries with a restricted geographic/linguistic area, a reduction in funding would disproportionately impact those countries XLIV . A reduction in the number of training activities (1800 beneficiaries per year) would limit the possibilities of audio visual professionals to adapt to and benefit from the opportunities offered by the digital shift. Cuts on the development and TV production schemes would result in a reduced number of EU co-productions, which are the works that travel better across borders. The network of cinema operators represents a total number of 2806 cinema screens in 680 towns in 43 countries for 78.000.000 admissions per year: a reduction in the scope of the network would negatively impact the access of EU citizens, notably from Central and Eastern European countries, to non-national European content. Regarding Creative Europe (Culture sub-programme), a decrease of 15% would not allow reaching a critical mass in response to the needs of the cultural and creative sectors. This would imply the following: ·Reduced impact in European added value in terms of cultural diversity: less diverse and more homogenized cultural offer for EU citizens including from dominant non-European market players, fewer cross-border cooperation and new market opportunities or career possibilities for practitioners from the cultural and creative sectors; ·Societal impact would be reduced: e.g. the reach of the culture cooperation projects estimated at 7 million citizens in EU by end 2020 (including 4 million youngsters) would decrease; ·The international opening of the programme may be limited at its pre-2014 level: participation of key EU neighboring partner countries may be abandoned; ·Specific actions would be streamlined or abandoned thus limiting the programme's impact both in quantitative and qualitative terms; ·Proportionally higher administrative costs for running the programme. 3.2.2.Alternative to the baseline scenario: a EU values framework with two funding programmes The analysis done in terms of drivers that affect the architecture of the future programmes, shows that there is room for improvement from the current situation of four funding programmes and two prerogative lines. The new architecture of the future funding as an alternative to the baseline scenario aims at: ·Developing synergies among policies finding a common ground for action, while respecting their specificities; ·Reducing overlap and fragmentation; ·Ensuring flexibility in the allocation of funds, while ensuring a certain degree of predictability of funding dedicated to each policy; ·Fostering cross sectoral and innovative actions; ·Ensuring a critical mass of resources to promote values, taking also into account the needs of each policy. Therefore, as an alternative to the current situation and baseline scenario made of four funding programmes and two prerogative lines, it is proposed to develop synergies among the current programmes and prerogative lines and to combine them into a single political chapeau on EU Values with two underlying funding programmes: the European Culture, Rights and Values Programme and the Justice Programme, as visualized below:

This will allow a straightforward simplification, from four current funding programmes and two prerogative lines to only two funding programmes in the future. This new clustering will allow to further exploit the potential of current programmes to promote EU values and increase EU added value. The full exploitation of the interplay between cultural diversity, historical memory and the potential of the creative sector from one hand, and principles such as justice, rights, equality and anti-discrimination from the other hand, is fundamental in this model and will be possible through the common denominator of citizenship. For example, as shown by the mid-term evaluation of Creative Europe programme, the current architecture is too cumbersome, as it includes 2 general objectives, 4 specific objectives four dimensions of added value, common to all the strands of the Creative Europe programme and in addition, 7 priorities and 11 support measures for the MEDIA sub programme. The proposed architecture under the new programme provides a major simplification compared to the current structure, to make support more flexible and able to adapt to new emerging needs. While it is expected that the overall initiative will increase the potential of the EU to act to promote and protect Values by developing synergies between current funding Programmes, the proposed model acknowledges and maintains the specificities of the single policies, including through the design of policy strands. This will allow taking into due consideration the distinctive nature of the policies who will compose the new programme(s) as well as the inherent specificities of the current programmes, such as the different scope of the legal basis and the existence of already well-defined and different targeted stakeholders who expect to recognize their own respective policy in the initiative. All in all, maintaining well-established brands of EU programmes will help to ensure continued engagement as well as visibility of EU support. Therefore distinctive strands will be maintained. A new European Culture, Rights and Values Programme The proposed general objective of the European Culture, Rights and Values Programme is to empower people and sustain open, democratic, inclusive and creative societies through protecting and promoting rights, equality and values as well as cultural diversity and cultural heritage as enshrined in the EU Treaty, the EU Charter of Fundamental Rights and the UN Convention on the Rights of Persons with Disabilities. The Programme will have three strands which will deliver on the above objective and which will be further articulated on specific objectives specified in the previous section. It will also have a cross-strand support: A EMPOWERING PEOPLE. Empowering people through the promotion and protection of rights values and equality freedom of expression, including media freedom and pluralism and through creating opportunities for engagement and participation; B MEDIA. Promote the competitiveness and scalability of the European audiovisual industry and cultural diversity as an EU value through support to the creation, promotion, access and dissemination of European works by large audiences within Europe and beyond whereby accompanying the AVMSD; (thereafter referred to as MEDIA) C [CULTURE]. Safeguarding, developing and promoting European cultural diversity and Europe's cultural heritage and strengthening the competitiveness of the European cultural and creative sectors (with the exception of the audiovisual industry) (thereafter referred to as Culture) D CROSS-STRAND SUPPORT. The cross-strand support would provide for and accelerate the synergies between the different strands of the programme. As such it would be the 'glue' that creates bonds, thus strengthening the internal coherence of the programme. It will support joint actions having a stronger impact than actions delivered by each strand on its own, in particular: a)Funding should be devoted to promote the visibility of the programme and foster citizens' outreach. This may include dissemination tools and information campaigns, including through social media with a focus on the young, as well as ‘capacity building’. Funding will also be used to ensure the mainstreaming of Charter of Fundamental rights, equality and anti-discrimination in the post-2020 MFF. b)Funds should foster creativity and citizens' engagement through a Creative Lab, which will experiment new forms of culture creation and distribution at the crossroads between different cultural and creative sectors XLV or with the education sector, through the use of digital means as well as between culture and fundamental rights, or audio-visual and non-discrimination policies XLVI . c)Access to finance to all cultural and creative SMEs building on the successful deployment of the Cultural and Creative Sectors Guarantee Facility will be addressed under the SME window of the InvestEU programme which guarantees debt and equity support to enhance access and availability of finance for SMEs. While the access to debt finance remains the main challenge for the SMEs from cultural and creative sectors, the need for providing equity and quasi-equity to cash-intensive and fast growing creative SMEs and mid-caps will also be further explored. d)Funds should also be devoted to a network of desks that will promote the programme at national level, provide information, support cross border cooperation between potential beneficiaries and support the Commission in disseminating the results of the programme and reaching out the citizens. The new JUSTICE Programme The aim of the future JUSTICE funding Programme shall be the further development of a European area of justice based on mutual recognition and mutual trust and to contribute to upholding EU values such as the rule of law, the independence of the judiciary, the effectiveness of the justice system and its equal access to all. The Programme shall largely continue to follow the intervention logic of its predecessor programme supporting Member States to achieve more effective justice systems, where legal practitioners know how and when to apply EU acquis, where cross-border cooperation is thriving and the rights of victims and persons accused of crime are respected. Support to collect comparative information on the efficiency, quality and independence of national justice systems and national rule of law safeguards should continue, including in order to feed into the EU Justice Scoreboard and the European Semester. In relation to technological developments, the Programme shall have cross-cutting objectives of digitalisation, including of national justice systems, civic technology, robotics, registers and legal technology. The anti-drugs component of the current Justice Programme would fall under the successor of the Internal Security Fund – Police.

3.2.3.Discarded alternative: one programme For reasons connected to the legal basis the alternative proposing one sole instrument/programme has been discarded. Most of the activities and policies are based on articles that foresee an ordinary legislative procedure except for the current Europe for Citizens Programme. Currently the main focus of the Europe for Citizens Programme is on civic participation and hence it is based on art. 352 TFEU (unanimity). After analysis, the objectives of the corresponding activities could, subject to a certain reorientation of their focus, be adapted to fit within the new approach of a broader programme; hence they would fall within the scope of Art 167(1) and (2) TFEU, which foresee the ordinary legislative procedure. However, the Justice Programme legal basis, whilst also commanding the ordinary legislative procedure, is subject to the variable geometry organised in Protocols 21 and 22 to the Treaties. Thus it needs to remain in a separate instrument. Furthermore, after analysis, the activities currently funded under the prerogative line "communication and evaluation activities that are contributing to an area of justice and fundamental rights" cannot be included in the future programme as their legal basis would be art 352. A detailed enumeration of the legal basis of the framework is included in annex 5. 3.1.Priorities Setting priorities will be crucial to focus future interventions on policy priorities and emerging issues and achieve better results. The priorities are presented hereafter by policy area. In the area of rights and equality ·The mid-term evaluation confirms the relevance of the objectives and the need to continue to act on all covered areas but also provides indications that an increased attention should be given to emerging issues such as for instance as cyber-violence (see section 1.2.1.). ·Operating grants have proved to be effective and should be prioritised. This allows the functioning of NGO's and EU-wide networks, such as victim support organisations, equality bodies, representative organisations of persons with disabilities, etc. ·A critical mass of NGOs need to be reached in order to have a multiplier effect and ensure that the EU strengthens its role and image as champion in the promotion of rights and values. ·Work with national administrations, for instance through restricted calls for proposals remains key to ensure complementarities of actions between the EU and national levels. ·Funds need to be devoted to activities to support policy and legislative developments, monitoring and follow-up and to ensure an efficient implementation of the Commission's right initiative and efficient governance of the EU legislative process. This includes procurements for impact assessment, market studies, conformity checks, experts groups, etc. As indicated in section 1.2.1., the lessons learned with the REC programme show that setting the specific objectives at policy level allows enough flexibility in the phase of implementation to focus on specific priorities, to adapt to emerging issues, but also to face a scarcity of funding (i.e. by alternating calls for proposals of different policy areas every other year). Therefore, the above priorities will not have an impact on the architecture of the future programme and regulation. In the area of citizenship Funding activities should follow a bottom-up approach that has proved successful in the current programmes, namely the REC, Europe for Citizens and Creative Europe. In particular, the positive experience of Europe for Citizens should be further promoted to create opportunities for a debate on European history beyond national perspectives and to fund remembrance projects. As a follow up of the European Year of Cultural heritage, larger projects of preservation and conservation of major European memorial sites and archives will be also promoted. Funds should also seek to strengthen the role of media as a cornerstone for democracy with actions related to monitoring and supporting media freedom and pluralism, quality journalism and media literacy, thus helping building better informed and democratic European societies, contributing to enabling citizens to make full use of their right to be informed. This includes addressing the phenomenon of disinformation. The programme should also promote opportunities for societal and intercultural engagement and civic participation and by bringing together Europeans to discuss and work together on issues of common concern in town-twinning projects, networks of towns and civil society projects. This would help boosting citizens' awareness of fundamental values, their degree of engagement in society and with the EU project. Cultural activities such as the European Heritage Label and Days should also be used as an arena for citizens to gain awareness and raise their voice on political issues..

Support should also be given to the European Citizens’ Initiative, which is a unique instrument for participatory democracy enabling citizens to have a say in policies that affect their lives. In the area of culture Support shall be given to the reinforcement of the cross-border dimension of the cultural and creative sectors within Europe and beyond through a dedicated mobility scheme. Mobility in the culture and creative sectors pursues specific objectives, which take into account the specific nature of the artistic and creative production process, namely focusing on the potential of co-creation or audience development via residencies, or similar exchanges which are result-oriented. The mobility scheme will support the intrinsic dynamic of the artistic creation by bringing together artistic and creative professionals from diverse sectors and disciplines. The aim is to develop joint activities driven by their common cultural and artistic vision in order to produce joint outputs and results in the form of innovative creative and artistic works and productions. The scheme will create favourable conditions for artists and creative professionals in Europe to integrate cross-border mobility, which is essential to nurture their talent, and for their careers and for audience development. It will for instance increase the visibility of European artists and creative professionals, in particular emerging ones and those lacking international exposure. Individual mobility in this sense is a means to jointly develop artistic and creative talent and network building, which is particularly relevant for artists and creative professionals, especially those at the start of their career. Besides, this tailor-made type of individual mobility is essential to promote and safeguard cultural diversity and creative content, which is one of the main missions of the EU in the field of Culture. This particular nature and specific aims justifies the independent existence of such a mobility scheme outside the Erasmus+ Programme, which primarily focus on mobility actions with a strong learning component as a key element and which does not primarily aim at the production of joint outputs. The target groups for a mobility action under the culture sub-programme would be both individuals but also the mostly smaller public or private culture and creative institutions and organisations who could host these professionals. The programme will also provide support to the European Capitals of Culture, the European Heritage Label and EU cultural prizes. It also envisages granting operating support to pan-European organisations and allows for policy development actions. Support shall be given to the building of a cultural capacity leading to increase cultural participation for all Europeans, including via awareness activities in education and training or in areas with close links to culture such as public or urban spaces. Funding will be dedicated to foster favourable ecosystems for the Cultural and Creative Sectors’ capacity to innovate, embrace the digital shift and to incarnate and favour the development of European identity. Based on the experience of the audiovisual sector, a targeted support will aim at meeting the needs of certain creative sectors along their value chain such as the music sector XLVII and the cultural and heritage sectors XLVIII . Support to the literature/publishing sector, which is currently limited to the translation and promotion of European literature across borders in Europe and beyond, will be broadened while the challenges for other sectors such as architecture, design or fashion to contribute to cultural diversity and become resilient is targeted via limited concrete actions. Creating links with cultural tourism activities could be part of such targeted support in close linkages with the future Single Market programme. In line with the Communication on "Towards an EU strategy for international cultural relations", the programme will also strive to reinforce the promotion of cultural and creative works from participating countries in the rest of the world and develop more targeted activities with organisations in third countries. The programme will also provide support to the European Capitals of Culture, the European Heritage Label and EU cultural prizes. It also envisages granting operating support to pan-European organisations and allows for policy development actions. In the area of audiovisual The MEDIA programme will accompany the industrial and cultural objectives pursued by the provisions of the Audiovisual Media Services Directive. In a more open and competitive digital single market, it will be crucial that funds favour the scaling up and consolidation of the EU audiovisual industries. The new AVMS Directive will set-up an objective of 30% of European works available on VOD. This will be an opportunity for European works, but needs accompanying measures to help make European non-national works available across the Union. This means in practice, focusing on those projects and actions bearing a potential for cross-border success and stepping up investments in the promotion of EU works XLIX . Europe needs to invest more in its audiovisual talent. Priority will be given to help 5000 young or established professionals per annum, to understand the impact of new technologies on production processes, marketing and distribution, through physical and on-line training, (MOOCs) for wider reach and mentoring activities to ultimately make the EU audiovisual industry more competitive. Support will be clarified and cater on the one hand, for single development for projects from smaller markets to ensure diversity and on the other, support will be provided to slates of films and individual high profile European films and TV series able to compete with US productions L . Structured promotion support will enhance the commercial success of the European films which have a clear export potential in markets such as the US, Asia (China) and Latin America. New actions will be developed to support innovative story telling formats and in particular virtual reality, to help champion a leading European VR ecosystem. LI Distribution of works across borders will be reinforced and made more efficient LII by bringing together online and theatrical distribution and enhancing cross border collaboration. Support will be given to a selection of 25 European films per annum and to the distribution of slates of films. Support to VOD platforms will move from individual support LIII to a structured network of European VOD services, encouraging strategic collaboration among platforms regarding technology, data collection and promotional activities and possibly acquisitions of rights. The objective is to increase SVOD subscribers by 200% and TVOD transactions by 50%. Support will be provided to double the reach of the European network of cinemas in medium sized towns with fewer than 100.000 residents LIV (from 269 cities in 2016 to 400 in 2027) especially in Eastern countries; to promote EU films among young audiences LV and foster collaborations to innovate the cinematic experience. The current individual support to film festivals will be replaced by a structured pan European network of festivals to reach economies of scale and expand their audience. The objective is to support more than 100 festivals and reach audience of 10 million in 2027. LVI . In the area of Justice In order to achieve medium to long-term results in this policy area, priority should be given to action that:

·help Member States to achieve more effective justice systems, where legal practitioners know how and when to apply EU acquis, where cross-border cooperation is thriving and the rights of victims and persons accused of crime are respected. Support to EU-wide networks working in this area is crucial. ·Support to collect comparative information on the efficiency, quality and independence of national justice systems and national rule of law safeguards should continue, in particular to feed into the EU Justice Scoreboard and the European Semester. ·support the expected continued digitisation of the national justice systems and interoperability of IT systems to enhance judicial cooperation and access to justice and achieve full EU coverage concerning all voluntary e-justice projects; ·increase the capacity of national legal practitioners and public authorities in Union law, including training on the Charter of fundamental rights as well as the support and co-operation between these authorities and the European Public Prosecutor´s Office (EPPO) ·ensure procedural rights and rights of victims; External activities As a general rule, the future funding instruments should remain open to third EEA countries, acceding and candidate countries, also allowing for ad-hoc collaborations with the FPI on issues on common interest, following a flexible approach. At the same time, some sectorial specificities should be taken into account and continue in the future. Since its inception, the MEDIA programme has required alignment with the Audivisual Media Services Directive to accede the programme. In the future full alignment with the provisions of the revised AVMS Directive will be required to acceding countries, , potential candidate countries and EFTA countries covered by the EEA agreement and the Swiss confederation. Lighter requirements will be defined for countries covered by the European Neighbourhood policy to allow for partial participation in MEDIA. The current Culture Sub-programme already includes third countries and allows allocating a certain percentage of costs to partner organisations in third countries. Furthermore in line with the Communication on "Towards an EU strategy for international cultural relations", the Culture part should remain open to the participation of Neighbouring countries but also allow for targeted activities on the global market. In addition, synergies and greater alignment between DEVCO funds and culture and MEDIA funds to promote international collaboration should be put in place to avoid overlaps. This could be implemented by earmarked funding from the different external instruments to some well-established MEDIA actions such as training, international co-productions or access to market or in specific culture actions. Furthermore, MEDIA will be devoting efforts in structured promotion of EU films with an export potential, targeting primarily countries such as the US, China, Russia, India, and Latin America. 3.2.Synergies with other funding programmes The future EU values framework and its underlying funding programmes will inter-act with the other post-2020 funding programmes. The following synergies deserve to be highlighted: 3.2.1.Synergies with the other programmes under the future "Investing in people and EU values" framework The creation of a cluster of the EU budget specifically dedicated to "Investing in people and EU values" creates bonds between the programmes that will contribute to it. The future European Social Fund and EaSI programme will be a major building block of the "Investing in People and Values" framework. It will provide support to citizens by investing in human capital, supporting (youth) employment, social innovation, the acquisition of basic digital skills and the integration of migrants, and by supporting the most deprived (social inclusion). Potential synergies will need to be developed, or strengthened, as the funds will have a strong potential to directly impact people – including the most disadvantaged and discriminated - and promote gender equality and equal opportunities for under-represented groups such as the Roma as well as social justice, EU values and the respect of fundamental rights. The envisaged strengthened focus on a bottom-up approach will also create ownership for reforms with citizens and promote a better understanding and acceptance of a Social Europe. The future European Social Fund and EaSI programme will achieve their objectives by working on the employment and social inclusion of Europeans, a different – and complementary – angle than the angle of values, rights and culture. Synergies with Erasmus+ can be reinforced by exploiting practical experience from the National Agencies and by more systematically mainstreaming needs of culture education and training institutions into the existing and future actions. Erasmus + can also support discriminated groups – such as youngsters with disabilities - in their access to education and towards stronger social inclusion. 3.2.2.Synergies with the "External Action" cluster of the budget The promotion of values and rights within the EU is mirrored by their promotion at the global level, including through the linkages of the implementation of the Sustainable Development Goals. In this respect, synergies need to be developed in particular with the external action at multilateral level but also in the development cooperation aid, to ensure coherence in the promotion of for instance gender equality, anti-discrimination, tolerance, the rule of law. Notwithstanding the possibility of "windows" for certain (capacity building) activities within the international instrument, the culture strand intends to open the European Capital of Culture initiative through twinning and shadowing schemes, the Networks and Platforms schemes LVII to non-EU countries with (limited) opportunities for competing for the Prizes, to develop incentives to foster the inclusion of third country partners in projects where member states organisations are in the lead, to support individual artist mobility through exchanges, training and residencies and to support promotional efforts in strategically important markets and festivals outside the EU member states for which there is currently no specific budget. 3.2.3.Synergies with the Single Market Programmes The creation of a EU values framework in the EU budget represents the other side of the coin of a European project based on the single market but also able to go beyond. In particular, the future Single Market Programme will provide support to citizens and consumer in the internal market, thereby contributing to enhance their rights and empower them. In this respect, it will complement the actions that will be funded by the EU Culture, values and rights programme that has a strong component on empowering people. Synergies can also be found on tourism which has a cultural dimension and can be seen as a way of enhancing mutual understanding among people. Synergies will be strong with the future Justice programme as well. Indeed, by financing activities on company law, contract law and Anti-Money Laundering, the future Single market Programme will contribute directly to the implementation of the EU policy in the field of justice and the creation of an EU area of justice and will follow the policy lines developed in this respect. The same is valid for the consumer policy. The culture strand will focus its interventions, where adequate, on the creativity and cultural elements of certain industries (such as fashion) by concentrating on promotion, skills development or training.

3.2.4.Synergies with budget cluster on Strategic Infrastructure The EU values framework should be reflected in the future Digital Europe Programme (DEP) which will be the “successor” of the current Connecting Europe Facility program, incorporating building blocks and Digital Service Infrastructures. Indeed, while the EU values framework - and in particular the Justice programme enables to develop Commission lead central platforms- , the future