P8_TC1-COD(2018)0194

Position of the European Parliament adopted at first reading on 13 February 2019 with a view to the adoption of Regulation (EU) …/… of the European Parliament and of the Council establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting for the period 2021-2027 (the ‘Pericles IV programme’)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 133 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Central Bank (1),

Acting in accordance with the ordinary legislative procedure (2),

Whereas:

(1) The Union and the Member States have set themselves the objective of laying down the measures necessary for the use of the euro as a single currency. Those measures include protecting the euro against counterfeiting and related fraud, thus empowering to ensure the effectiveness of the Union’s economy and securing secure the sustainability of public finances. [Am. 1]

(2) Council Regulation (EC) No 1338/2001 (3) provides for exchanges of information, cooperation and mutual assistance, thereby establishing a harmonised framework for the protection of the euro. The effects of that Regulation were extended by Council Regulation (EC) No 1339/2001 (4) to those Member States which have not adopted the euro as their single currency, so as to provide an equivalent level of protection for the euro throughout the Union.

(3) Actions with the aim of promoting exchanges of information and staff, technical and scientific assistance and specialised training help significantly to protect the Union’s single currency against counterfeiting and related fraud and therefore to attain a high and equivalent level of protection across the Union, whilst demonstrating the Union’s ability to tackle serious organised crime. Such actions also help addressing the common challenges and links with money laundering and organised crime. [Am. 2]

(4) A programme for the protection of the euro against counterfeiting contributes to raising the awareness of Union citizens, increasing their confidence in that currency and improving the protection of the euro, especially through the constant dissemination of results of actions supported by that programme. [Am. 3]

(4a) Sound protection of the euro against counterfeiting is a key component of a secure and competitive EU economy, and directly linked to the EU objective of improving the efficient functioning of the Economic and Monetary Union. [Am. 4]

(5) Past support for such actions, through Council Decisions 2001/923/EC (5) and 2001/924/EC (6), which were subsequently amended and extended by Council Decisions 2006/75/EC (7), 2006/76/EC (8), 2006/849/EC (9), 2006/850/EC (10) and Regulation (EU) No 331/2014 of the European Parliament and of the Council (11), has made it possible to enhance the actions of the Union and the Member States in the field of the protection of the euro against counterfeiting. The objectives of the programme for the protection of the euro against counterfeiting (‘the Pericles programme’) for the periods 2002-2006, 2007-2013 and 2014 until 2017 (12) have been successfully achieved.

(6) Contrary to standard procedure, a separate impact assessment of the Programme was not carried out. This can be partly explained by the fact that in 2017 the Commission carried out a mid-term evaluation of the Programme, supported by an independent report (13) . Although the report is generally positive about the Programme, it expresses concerns about the limited number of competent authorities participating in the activities of the Programme and the quality of the key performance indicators used for measuring the results of the Programme. In the its Communication to the European Parliament and to the Council on the mid-term evaluation of the Pericles 2020 Programme and its ex ante evaluation in the form of a Staff Working Document accompanying its proposal (COM(2018)0369) , the Commission came to the conclusion that the continuation of the Pericles 2020 programme Programme beyond 2020 should be supported, given its EU Union added value, its long-term impact and the sustainability of its actions and contribution to combating organised crime . [Am. 5]

(7) The advice contained in the mid-term evaluation was that actions financed under the Pericles 2020 Programme should be continued, taking into account possibilities while addressing the need to simplify the submitting of applications, to encourage differentiation of beneficiaries and the participation of a maximum of competent authorities from various countries in the activities of the Programme , to continue focusing on emerging and recurrent counterfeiting threats and to streamline the key performance indicators. [Am. 6]

(7a) Counterfeiting hotspots have been detected in third countries and the counterfeiting of the euro is acquiring a growing international dimension; therefore, capacity building and training activities involving the competent authorities of third countries should be considered essential to achieve the effective protection of the Union's single currency and should be further encouraged in the context of the Programme. [Am. 7]

(8) Therefore a new Programme for the period 2021-2027 (the “Pericles IV programme”) should be adopted. It should be ensured that the Pericles IV programme is consistent with, and complementary to, other relevant programmes and actions. The Commission should therefore carry out all the necessary consultations with regard to evaluating needs for the protection of the euro with the principal parties involved, in particular the competent national authorities designated by the Member States, the European Central Bank and Europol, within the committee referred to in Regulation (EC) No 1338/2001, particularly as regards exchanges, assistance and training, for the purpose of the application of the Pericles IV programme. Moreover, the Commission should draw on the vast experience of the European Central Bank in relation to the conduct of training and the provision of information on counterfeit euro banknotes when implementing the programme. [Am. 8]

(9) Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union apply to this Regulation. These rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective EU funding.

(10) This Regulation complies with the principles of added value and proportionality. The Pericles IV programme should facilitate cooperation among the Member States and between the Commission and the Member States in order to protect the euro against counterfeiting, without impinging on Member States’ responsibilities, and using resources more efficiently than could be done at national level. Action at Union level is necessary and justified as it clearly assists Member States in collectively protecting the euro and encourages the use of common Union structures to increase cooperation and timely and comprehensive information exchange between competent authorities. [Am. 9]

(11) The Pericles IV programme should be implemented in accordance with the multiannual financial framework laid down in … [reference to the post 2020 MFF Regulation Council Regulation (EU, Euratom) …/2018].

(12) In order to ensure uniform conditions for the implementation of the Pericles IV programme, implementing powers supplement and amend non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be conferred on delegated to the Commission in respect of work programmes as provided for in Article 10 and indicators as provided for in Article 12 and the Annex . The Commission should adopt annual work programmes setting out the priorities, the budget breakdown and the evaluation criteria for the grants for actions. The exceptional and duly justified cases, in which an increase in co-financing is necessary in order to give the Member States greater economic flexibility, thus enabling them to carry out and complete projects to protect and safeguard the euro in a satisfactory manner, should be part of the annual work programmes . It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (14) . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. [Am. 10]

(13) This Regulation lays down a financial envelope for the Pericles IV programme which is to constitute the prime reference amount, within the meaning of … [reference to be updated as appropriate according to the new inter-institutional agreement: point 17 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management], for the European Parliament and the Council during the annual budgetary procedure.

(14) In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 (15) of the European Parliament and of the Council, Council Regulation (Euratom, EC) No 2185/96 (16) and Council Regulation (EU) 2017/1939 (17), the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96, the European Anti-Fraud Office (OLAF) may carry out investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office may investigate and prosecute fraud and other illegal activities affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council (18). In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests and grant the necessary rights and access to the Commission, OLAF, the EPPO, and the European Court of Auditors (ECA).

(15) The Commission should present to the European Parliament and to the Council a mid-term evaluation report on the implementation of the Pericles IV programme and a final evaluation report on the achievement of its objectives.

(16) Regulation (EU) No 331/2014 should therefore be repealed.

(17) It is appropriate to ensure a smooth transition without interruption between the Pericles 2020 programme and the Pericles IV programme and it is appropriate to align the duration of the Pericles IV programme with Council Regulation (EU, Euratom) …/… [laying down the multiannual financial framework for the years 2021-2027] .Therefore, the Pericles IV programme should apply from 1 January 2021,

HAVE ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1 Subject matter This Regulation establishes the Pericles IV Programme, an exchange, assistance and training programme for the protection of the euro against counterfeiting (‘the Programme’). It lays down the objectives of the Programme, the budget for the period from 1 January 2021 to 31 December 2027, the forms of Union funding and the rules for providing such funding.

Article 2 Programme objectives 1. The Programme has the following general objective: To prevent and combat counterfeiting and related fraud, thus enhancing the competitiveness of preserving the integrity of the euro banknotes and coins, which strengthens the trust of citizens and business in the genuineness of these banknotes and coins therefore enhances the trust in the Union’s economy and , while securing the sustainability of public finances. [Am. 11] 2. The Programme has the following specific objective: To protect euro banknotes and coins against counterfeiting and related fraud, by supporting and supplementing the measures undertaken by the Member States and assisting the competent national and Union authorities in their efforts to develop among themselves and with the Commission a close and regular cooperation and an exchange of best practice, where appropriate including third countries and international organisations.

Article 3 Budget 1. The financial envelope for the implementation of the Programme for the period from 1 January 2021 to 31 December 2027 shall be EUR 7 700 000 (19) (in current prices). [Am. 12] 2. The annual appropriations shall be authorised by the European Parliament and the Council within the limits of the multiannual financial framework. 3. The amount referred to in paragraph 1 may be used for technical and administrative assistance for the implementation of the Programme, such as preparatory, monitoring, control, audit and evaluation activities including corporate information technology systems.

Article 4 Implementation and forms of EU funding 1. The Programme shall be implemented in direct management in accordance with [latest version of the Financial Regulation, Regulation (EU, Euratom) No 966/2012 (20).] 2. The Programme shall be implemented by the Commission in cooperation with the Member States, through regular consultations at different stages of the implementation of the Programme, taking into account whilst ensuring consistency and avoiding unnecessary duplication with relevant measures undertaken by other competent entities, in particular the European Central Bank and Europol. To this effect, when preparing the work programmes pursuant to Article 10, the Commission shall take into account existing and planned ECB and Europol activities against euro counterfeiting and fraud . [Am. 13] 3. Financial support under the Programme for eligible actions listed in Article 6 shall take the form of either: grants; or public procurement.

Article 5 Joint actions 1. Actions under the Programme may be organised jointly by the Commission and other partners having relevant expertise, such as: (a) the national central banks and the European Central Bank (ECB); (b) the National Analysis Centres (NACs) and the Coin National Analysis Centres (CNACs); (c) the European Technical and Scientific Centre (ETSC) and the mints; (d) Europol, Eurojust and Interpol; (e) the national central anti-counterfeiting offices provided for in Article 12 of the International Convention for the Suppression of Counterfeiting Currency signed at Geneva on 20 April 1929 (21) and other agencies specialising in prevention, detection and law-enforcement in connection with counterfeiting; (f) specialist bodies concerned in the field of duplication and certification technologies, printers and engravers; (g) bodies other than those referred to in points (a) to (f) offering specific expertise, including, where appropriate, such bodies from third countries and in particular from acceding States and candidate countries; and (h) private entities that have developed and provided evidence of technical knowledge and teams specialising in detecting counterfeit banknotes and coins. 2. Where eligible actions are organised jointly by the Commission and the ECB, Eurojust, Europol or Interpol, the ensuing expenses shall be divided among them. In any event, each of them shall bear the travel and accommodation costs of its own guest speakers.

CHAPTER II

ELIGIBILITY

Article 6 Eligible actions 1. The Programme shall provide, under the conditions set out in the annual work programmes referred to in Article 10, financial support for the following actions: (a) exchange and dissemination of information, in particular through organising workshops, meetings and seminars, including training, targeted placements and exchanges of staff of competent national authorities and other similar actions. The exchange of information shall, among others, be targeted at: — best practices in preventing counterfeiting and fraud relating to the euro; [Am. 14] — methodologies for monitoring and analysing the economic and financial impact of counterfeiting; — operation of databases and early warning systems; — use of detection tools with computer back-up; [Am. 15] — enquiry and investigation methods; — scientific assistance, including monitoring of new developments; — protection of the euro outside the Union; — research actions; — provision of specific operational expertise; (b) technical, scientific and operational assistance, as appears necessary as part of the Programme including in particular: — any appropriate measure which establishes teaching resources at Union level, such as a handbook of Union legislation, information bulletins, practical manuals, glossaries and lexicons, databases, especially in the area of scientific assistance or technology watch or computer support applications, such as software; — relevant studies with a multidisciplinary and transnational dimension, including research on innovative security features; — development of technical support instruments and methods to facilitate detection actions at Union level; — support for cooperation in operations involving at least two States when such support is not cannot be made available from other programmes of European institutions and bodies; [Am. 16] (c) the purchase of equipment to be used by specialised anti-counterfeiting authorities of third countries for protecting the euro against counterfeiting, in compliance with Article 10(3). 2. The Programme shall take into account the transnational and multidisciplinary aspects of the fight against counterfeiting by targeting the participation of the following groups: (a) staff of agencies engaged in detecting and combating counterfeiting, in particular police forces, customs and financial administrations, depending on their specific functions at national level; (b) intelligence personnel; (c) representatives of the national central banks, the mints, commercial banks and other financial intermediaries, in particular as regards the obligations of financial institutions; (d) judicial officers, specialist lawyers and members of the judiciary in this field; (e) any other group of specialists concerned, such as chambers of commerce and industry or comparable structures capable of providing access to small and medium-sized enterprises, retailers and cash-in-transit companies. 3. The groups referred to in paragraph 2 of this Article may include participants from third countries if that is important for the fulfilment of the objectives provided for in Article 2. [Am. 17]

CHAPTER III

GRANTS

Article 7 Grants Grants under the Programme shall be awarded and managed in accordance with Title VIII of the Financial Regulation. For actions implemented through grants, the purchase of equipment shall not be the sole component of the grant agreement.

Article 8 Co-financing rates The co-financing rate for grants awarded under the Programme shall not exceed 75 % of the eligible costs. In exceptional and duly justified cases, defined in the annual work programmes referred to in Article 10, the co-financing rate shall not exceed 90 % of the eligible costs.

Article 9 Eligible entities Entities eligible for funding under the Programme shall be the competent national authorities as defined in point (b) of Article 2 of Regulation (EC) No 1338/2001.

CHAPTER IV

PROGRAMMING, MONITORING, EVALUATION AND CONTROL

Article 10 Work programmes 1. The Programme shall be implemented by Commission is empowered to adopt delegated acts in accordance with Article 11 to adopt work programmes as referred to in Article 110 of Financial Regulation. [Am. 18] 2. For grants, in addition to the requirements laid down in Article 108 of the Financial Regulation, the work programme shall specify the essential selection and award criteria and the maximum possible rate of co-financing.

Article 11 Exercise of delegation 1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article. 2. The delegation of power referred to in Article Articles 10(1) and 12(2) shall be conferred on the Commission from 1 January 2021 until 31 December 2027. [Am. 19] 3. The delegation of power referred to in Article Articles 10(1) and 12(2), may be revoked at any time by the European Parliament or the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force. [Am. 20] 4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016 , as well as representatives from the ECB and Europol . [Am. 21] 5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and the Council. 6. A delegated act adopted pursuant to Article 12(2) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of three months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by three months at the initiative of the European Parliament or the Council.

Article 12 Monitoring 1. Indicators to report on progress of the Programme towards the achievement of the specific objective set out in Article 2 are set out in the Annex to this proposal. 2. To ensure effective assessment of progress of the Programme towards the achievement of its objectives, the Commission is empowered to adopt delegated acts, in accordance with Article 11, to develop the provisions for a monitoring and evaluation framework, including through amendments to the Annex to review and complement the indicators where necessary for the purposes of evaluation. 3. The Commission shall provide annual information on the results of the Programme to the European Parliament and to, the Council , the European Central Bank, Europol, Eurojust, and the European Public Prosecutor’s Office (EPPO) , taking into account the quantitative and qualitative indicators set out in the Annex to this proposal. [Am. 22] 4. The participating countries and other beneficiaries shall provide the Commission with all the data and information necessary to permit the monitoring and evaluation of the Programme.

Article 13 Evaluation 1. The interim evaluation of the Programme shall be carried out once there is sufficient information available about the implementation of the Programme, but no later than four years after the start of the programme implementation. 2. At the end of the implementation of the Programme, but no later than two years after the end of the period specified in Article 1, a final evaluation of the Programme shall be carried out by the Commission. 3. The Commission shall communicate the conclusions of the evaluations accompanied by its observations, to the European Parliament, the Council and, the European Central Bank , Europol, Eurojust and the European Public Prosecutor’s Office . [Am. 23]

CHAPTER V

FINAL PROVISIONS

Article 14 Information, communication and publicity 1. The recipients of Union funding shall acknowledge the origin and ensure the transparency and visibility of the Union funding (in particular when promoting the actions and their results), by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public. [Am. 24] 2. The Commission shall implement information and communication actions relating to the Programme, and to its actions and results. Financial resources allocated to the Programme shall also contribute to the corporate communication of the political priorities of the Union, in so far as they are related to the objectives referred to in Article 2.

Article 15 Repeal Regulation (EU) No 331/2014 is repealed with effect from 1 January 2021.

Article 16 Transitional provisions This Regulation shall not affect the continuation or modification of the actions concerned, under Regulation (EU) No 331/2014, which shall continue to apply to the actions concerned until their closure.

Article 17 Entry into force This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union. It shall apply from 1 January 2021.

This Regulation shall be binding in its entirety and directly applicable in the Member States in accordance with the Treaties. Done at …, For the European Parliament The President For the Council The President

(1) OJ C 378, 19.10.2018, p. 2.

(2) Position of the European Parliament of 13 February 2019.

(3) Council Regulation (EC) No 1338/2001 of 28 June 2001 laying down measures necessary for the protection of the euro against counterfeiting (OJ L 181, 4.7.2001, p. 6).

(4) Council Regulation (EC) No 1339/2001 of 28 June 2001 extending the effects of Regulation (EC) No 1338/2001 laying down measures necessary for the protection of the euro against counterfeiting to those Member States which have not adopted the euro as their single currency (OJ L 181, 4.7.2001, p. 11).

(5) Council Decision 2001/923/EC of 17 December 2001 establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles’ programme) (OJ L 339, 21.12.2001, p. 50).

(6) Council Decision 2001/924/EC of 17 December 2001 extending the effects of the Decision establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (‘Pericles’ programme) to the Member States which have not adopted the euro as the single currency (OJ L 339, 21.12.2001, p. 55).

(7) Council Decision 2006/75/EC of 30 January 2006 amending and extending Decision 2001/923/EC establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the Pericles programme) (OJ L 36, 8.2.2006, p. 40).

(8) Council Decision 2006/76/EC of 30 January 2006 extending to the non-participating Member States the application of Decision 2006/75/EC amending and extending Decision 2001/923/EC establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the Pericles programme) (OJ L 36, 8.2.2006, p. 42).

(9) Council Decision 2006/849/EC of 20 November 2006 amending and extending Decision 2001/923/EC establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the Pericles programme) (OJ L 330, 28.11.2006, p. 28).

(10) Council Decision 2006/850/EC of 20 November 2006 extending to the non-participating Member States the application of Decision 2006/849/EC amending and extending Decision 2001/923/EC establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the Pericles programme) (OJ L 330, 28.11.2006, p. 30).

(11) Regulation (EU) No 331/2014 of the European Parliament and of the Council of 11 March 2014 establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles 2020’ programme) and repealing Council Decisions 2001/923/EC, 2001/924/EC, 2006/75/EC, 2006/76/EC, 2006/849/EC and 2006/850/EC (OJ L 103, 5.4.2014, p. 1).

(12) Communication from the Commission to the European Parliament and to the Council on the mid-term evaluation of the Pericles 2020 Programme of 6.12.2017 (COM(2017)0741).

(13) SWD(2017)0444 and Ares(2917)3289297 ‘30/06/2017.

(14) OJ L 123, 12.5.2016, p. 1.

(15) OJ L 248, 18.9.2013, p. 1.

(16) OJ L 292, 15.11.1996, p. 2.

(17) OJ L 283, 31.10.2017, p. 1.

(18) Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).

(19) Indicative amount only, depending on overall MFF.

(20) Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

(21) League of Nations Treaty Series No 2623 (1931), p. 372.