EXPLANATORY MEMORANDUM

1. CONTEXT OF THE PROPOSAL

In June 2010 the European Council endorsed Europe 2020, the reform agenda aiming to help Europe to recover from the crisis and come out stronger through a coordinated, comprehensive strategy for a smart, inclusive and sustainable growth.

Education and training are at the core of Europe 2020 Strategy for smart, sustainable and inclusive growth, and of the Integrated guidelines for the economic and employment policies of the Member States[1]. Arguably none of the Europe 2020 objectives and headline targets will be reached without a strong investment in human capital. Five of the Europe 2020 flagships depend on the modernization of education and training: Youth on the Move, Agenda for New Skills and Jobs, as well as the Digital Agenda, Innovation Union and the Platform Against Poverty.

In its Communication "A Budget for Europe"[2], the Commission points out that there is scope to increase Union support to education and training in order to raise citizens' skills and help tackle the high levels of youth unemployment in many Member States. The Commission also stresses that in its external actions, it will concentrate on promoting and defending Union values abroad, promote assistance to transitional and democratic processes and project the external dimension of internal policies.

2. RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

Consultations

Wide-scale public and stakeholder consultations took place from early 2010 to mid-2011 in education, training, youth and sport fields.

As regards education, training and youth, a strong convergence of viewpoints could be noticed among the different groups of stakeholders consulted and the common elements of the contributions can be summarised as follows:

· A very positive assessment of the results achieved by the Lifelong Learning, Youth in Action and Erasmus Mundus programmes;

· The need to develop a more integrated approach, being between education sectors, with other youth-related programmes and between the various existing Union higher education programmes, whether they are intra-European (Erasmus), worldwide (Erasmus Mundus), regional (Tempus, Alfa, Edulink) or bilateral (with the US and Canada for instance);

· The need to establish stronger links between policy developments and the programme's supported activities;

· The importance of continuing to focus on quality, especially in higher education in the Union and beyond;

· The importance of maintaining Union instruments to support both formal and non-formal learning for young people, and the need to improve the recognition of learning outcomes;

· A need for administrative simplification and for streamlining of actions and priorities;

· A need to improve the visibility of the Programme.

As regards sport, the main points stressed by the stakeholders can be summarised as follows:

· Insufficient availability of sport and physical activity at all levels of education;

· Insufficient recognition of voluntary activity in sport;

· Doping as a major threat to fairness in sporting competitions;

· Lack of attention for the societal value of sport as compared to its commercial aspects;

· Commercial pressure endangering the original spirit of sport based on fair play.

Impact assessments results

Four impact assessments examined the operation of three existing programmes in education, training and youth field (namely Lifelong Learning Programme, Youth in Action and Erasmus Mundus) and, in the case of sport, preparatory actions voted by the Budgetary Authority.

Given the similarity of objectives, legal base and Union competencies in these fields, each impact assessment considers similar options: discontinuing the existing actions or programmes; continuing them in their current form; substantially strengthening their policy focus; and bringing together the Lifelong Learning, Youth in Action and Erasmus Mundus programmes into a single, streamlined Programme.

The preferred option identified in each of the four Impact Assessments is the merger into a single programme, which is in line with the Communication of the Commission on the Multiannual Financial Framework adopted on 29 June 2011. This option would be the most coherent and cost-effective, for the main following reasons:

– It responds to the need for increased Union investment in Education and Training in these times of financial and economic crises, as a growing economy depends on the supply of highly skilled workers and on the mobilisation of the skills and competences of the unemployed;

– It focuses on and develops those actions identified in the current programmes as having the highest European added value and the strongest multiplier effects, leading to tangible impact on European education and training systems and thus considerably improved returns on investment;

– The concentration of efforts within the new streamlined programme architecture will allow for greater synergies among existing programmes and across different educational sectors, thus bolstering the lifelong learning approach to education, increasing coherence and improving access to potential beneficiaries through a streamlined set of key transversal actions;

– Beyond cooperation between education institutions themselves, it puts a stronger focus on the crucial role of education and human capital for innovation by promoting education-business partnerships, targeting excellence in teaching and learning, employability and entrepreneurship;

– Finally, it entails a rationalisation and simplification of delivery and management procedures, offering considerable potential for reducing implementation costs as compared to the sum of the implementation costs of the current programmes (i.e. Lifelong Learning, Youth in Action and the cooperation programmes in Higher Education with third countries).

Simplification

Within the context of the Multiannual Financial Framework (MFF), one of the priority of this Programme is to emphasise streamlining, simplification and a performance-based allocation of funds. This approach is applied in the Programme "Erasmus for All" by basing it on the rules of the Financial Regulation.

The Programme will reduce the number of activities supported. It will use more flat rate grants to increase efficiency; successful examples such as the lump sum grants for Erasmus student mobility will be widely used for mobility actions. National Agencies will no longer manage individual mobility and thereby reducing the administrative workload.

The National Agencies will become the main entry point for learning mobility activities, open to young people whether they participate as student, trainee or volunteer. The user-friendliness will also be enhanced for participating higher education institutions at international level, by the integration of disparate international cooperation programmes.

3. LEGAL ELEMENTS OF THE PROPOSAL

"Erasmus for All", the Single Programme in the field of Education, Training, Youth and Sport is justified on the grounds of the objectives laid down in Articles 165 and 166 of the Treaty on the Functioning of the European Union (TFEU) and on the subsidiarity principle.

Article 165 of TFEU calls for an action by the European Union in order to "contribute to the development of quality education by encouraging cooperation between Member States and, if necessary, by supporting and supplementing their action, while fully respecting the responsibility of the Member States for the content of teaching and the organisation of education systems and their cultural and linguistic diversity."

Article 166 states that the "Union shall implement a vocational training policy which shall support and supplement the action of the Member States, while fully respecting the responsibility of the Member States for the content and organisation of vocational training.

Both articles state that the Union and the Member States shall foster cooperation with third countries and the competent international organisations respectively in the sphere of education and sport (Article 165 (3)) and vocational training (Article 166 (3)).

As stressed in the interim evaluations of the Lifelong Learning, Youth in Action and Erasmus Mundus programmes, the European added value of the programme is derived from the innovative and transnational character of the activities undertaken and of the products and partnerships it helps to develop across Europe. Encouraging successful cooperation between Member States’ education and training systems as well as in the youth and sport fields would help to identify and implement policies and practices that work and encourage learning from each other.

While adopting implementing measures, in particular that referring to the allocation of funds, the Regulation foresees the application of the examination procedure according to provisions set out in Article 5 of Regulation (EU) No 182/2011. Selection decisions will still be sent to European Parliament and Committee for information.

The Regulation also introduces the delegating powers based on Article 290 of the TFEU. The use of this new legal instrument is limited to the amendment of the provisions relating to the performance criteria and on the actions managed by the National Agencies.

Experience of past programmes indicates that the provisions in Articles 13(7) and 22(2) relating respectively to the performance criteria and the provisions on the actions managed by the National Agencies might need to be revised during the duration of the programme. The lack of flexibility of the Lifelong Learning, Youth in Action and Erasmus Mundus programmes and the lack of tools to adapt the programme to the changing needs of our society have been criticised by the main stakeholders of the fields concerned.

The opinion of Member States is taken into due account through the systematic consultation of experts. The consultation will be extended to experts appointed by the European Parliament as to ensure a large level of representativeness. The Commission will also consult, whether appropriate, relevant stakeholders in the fields concerned.

4. BUDGETARY IMPLICATION

The Commission's proposal for a Multi-Annual Financial Framework for the period 2014-2020 foresees EUR 17 299 000 000 (current prices)for a Single programme on Education, Training, Youth and Sport and an additional amount coming from heading 4 instruments, corresponding to EUR 1 812 100 000 (current prices).

Minimum allocation of funds per sector

In order to ensure that the funding levels allocated to the main categories of stakeholders and beneficiaries will not be reduced below the levels guaranteed by the Lifelong Learning, Youth in Action and Erasmus Mundus programmes for the 2007-2013 period, the implementation of the Programme shall not result in an allocation to main education sectors less than:

– Higher education: 25%

– Vocational education and training and adult learning: 17%, of which adult learning: 2%

– School education: 7%

– Youth: 7%

5. SUMMARY OF THE REGULATION

The Regulation sets out the provisions for a new single programme covering Education, Training, Youth and Sport, called "Erasmus for all". Building on the broad recognition of the Erasmus sectoral programme, the programme aims at supporting all education sectors (namely Higher education, Vocational education and training and adult learning, schools education and Youth), in a lifelong learning perspective.

The "Erasmus for all" programme focuses on three types of key actions, namely the transnational and international learning mobility of students, young people, teachers and staff; the cooperation for innovation and good practices between education institutions, as well as through cooperation with bodies active in the youth field and the support to the policy agendas, as well as the support to capacity building in third countries, including enlargement countries, with a particular focus on neighbouring countries and the international policy dialogue.

In line with the Communication on a Budget for Europe 2020, Erasmus for all will integrate existing international programmes (Erasmus Mundus, Tempus, Edulink and Alfa) and cooperation programmes with industrialised countries. To this end, the budget of the Programme will be complemented by financial allocations coming from the different external cooperation instruments. Funds will be made available on the basis of two multi-annual allocations covering 4 and 3 years respectively to ensure stability and predictability. These allocations should reflect the EU external action priorities, including development objectives as appropriate. They can be adjusted in case of major unforeseen circumstances or important political changes to reflect major shifts in policy priorities.

Excellence in teaching and research in European studies is covered through a specific article on "Jean Monnet". A chapter is dedicated to sport focusing on the fight against doping, violence and racism and fostering transnational activities to promote good governance of sport organisations.

A new financial instrument – a loan guarantee facility - is introduced to enable students to take their Masters degree in another European country. Finance for such studies is currently difficult to obtain because national grants and loans are frequently not portable across national boundaries, or are not available for studies at Masters level, and loans from private banks are prohibitively expensive. To overcome these problems, the EU will provide a partial guarantee to financial institutions (banks or student loan agencies) which agree to offer loans for Masters' studies in other participating countries on favourable terms for the students.

In management terms, the programme will be managed in accordance with the principle of the indirect management. Responsibilities will be shared between Members States and the Commission. National Agencies will be in charge of the main part of the funds, most of those allocated to mobility actions and cooperation. The Commission will delegate to an Executive Agency the management of larger cooperation projects, policy support, the Eurydice network, as well as Jean Monnet activities and Sport. The Commission may therefore use, on the basis of a cost-benefit analysis, the existing executive agency for the implementation of "Erasmus for All" programme for the period 2014-2020, as provided for in Council Regulation (EC) No 58/2003 [3] of 19 December 2002 laying down the statute for the Executive Agencies to be entrusted with certain tasks in the management of Community programmes.

2011/0371 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing "ERASMUS FOR ALL" The Union Programme for Education, Training, Youth and Sport

(Text with EEA relevance)

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 Articles 165(4) and 166(4) 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 Economic and Social Committee[4],

Having regard to the opinion of the Committee of the Regions[5],

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1) The Communication from the Commission of 29 June 2011 "A Budget for Europe"[6] calls for a single programme in the field of Education, Training, Youth and Sport, including the international aspects of higher education, bringing together the Lifelong Learning action programme established by Decision No 1720/2006/EC of the European Parliament and of the Council of 15 November 2006[7], and Youth in Action programme established by Decision No 1719/2006/EC of the European parliament and of the Council of 15 November 2006[8], Erasmus Mundus action programme established by Decision No 1298/2008/EC of the European Parliament and of the Council of 16 December 2008[9], ALFA III programme established by Regulation No 1905/2006/EC of 18 December 2006[10], TEMPUS and EDULINK programmes in order to ensure greater efficiency, a stronger strategic focus and synergies to be exploited between the various aspects of the single programme. In addition Sport is proposed as part of this single Programme.

(2) The interim evaluation reports of the existing Lifelong Learning, Youth in Action and Erasmus Mundus Programmes and the public consultation on the future of Union action in education, training and youth as well as in higher education revealed a strong and in some respects growing need for continuing cooperation and mobility in these fields at European level. The evaluation reports emphasised the importance of creating closer links between Union Programmes and policy developments in education, training and youth, expressed the wish that Union action should be structured so as to respond better to the lifelong learning paradigm, and pressed for a simpler, more user‑friendly and more flexible approach to implementing such action and the end of the fragmentation of international higher education cooperation programmes.

(3) The widespread recognition among the general public in Member States and participating third countries of the "Erasmus" brand name as a synonym of Union learner mobility pleads for a more extensive use of this brand by the main education sectors covered by the Programme.

(4) The public consultation on the Union's strategic choices for the implementation of the new EU competence in the field of sport and the evaluation report of Preparatory Actions in the field of sport provided useful indications regarding priority areas for Union action and illustrated the added value that the Union can bring in supporting activities aimed at generating, sharing and spreading experiences and knowledge about different issues affecting sport at the European level.

(5) The European Strategy for smart, sustainable and inclusive growth (Europe 2020) is defining the Union's growth strategy for the coming decade to support smart, sustainable and inclusive growth setting five ambitious objectives to be reached by 2020, particularly in the field of education to reduce early school leaving rates below 10% and to enable at least 40% of 30-34 years old to have completed higher education[11]. This also includes its flagships initiatives, in particular "Youth on the Move"[12] and the Agenda for New Skills and Jobs[13].

(6) The Council of the European Union called on 12 May 2009 for a strategic framework for European cooperation in education and training (ET 2020) setting up four strategic objectives with a view to responding to the challenges that remain in creating a knowledge-based Europe and making lifelong learning a reality for all.

(7) Pursuant to Articles 8 and 10 of the Treaty on the Functioning of the European Union, as well as the articles 21 and 23 of the Charter of Fundamental Rights, the Programme shall promote equality between women and men and to combat discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation.

(8) The programme should include a strong international dimension particularly as regards higher education, not only to enhance the quality of European higher education in pursuit of the broader ET2020 objectives and the attractiveness of the Union as a study destination, but also to promote understanding between people and contribution to the sustainable development of higher education in the third countries.

(9) The renewed framework of cooperation in the youth field (2010-2018)[14] should consider all young people as a resource in society and upholds their right to participate in the development of policies affecting them by means of a continuous structured dialogue between decision-makers and young people and youth organisations at all levels.

(10) To support mobility, equity and study excellence, the Union should establish a European loan guarantee facility to enable students, regardless of their social background, to take their Masters degree in another participating country. This facility should be available to financial institutions which agree to offer loans for Masters' studies in other participating countries on favourable terms for the students.

(11) Member States should endeavour to adopt all appropriate measures to remove legal and administrative obstacles to the proper functioning of the Programme. This also implies that visas for participants should be handed out without delays, in order to ensure that no participant misses out on either a part of or the entire study, training programme or exchange, and to avoid cancellations of mobility actions and projects. In line with Article 19 of the Council Directive 2004/114/EC of 13 December 2004 on the conditions of admission of third country nationals for the purposes of studies, pupils exchange, unremunerated training or voluntary service[15], Member States are encouraged to establish fast-track admission procedures.

(12) The Communication 'Supporting growth and jobs – an agenda for the modernisation of Europe's higher education systems' sets out a framework within which the European Union, Member States and higher education institutions can cooperate to boost the number of graduates, improve the quality of education and maximise the contribution that higher education and research can make to helping our economies and societies emerge stronger from the crisis.

(13) The Bologna Declaration, signed by the Ministers for Education of 29 European countries on 19 June 1999, established an intergovernmental process aimed at creating a "European Area of Higher Education", which requires support at Union level.

(14) The renewed Copenhagen Process (2011-2020) defined an ambitious and global vision for Vocational Education and Training policy in Europe, and requested support from Union Educational Programmes to the agreed priorities, including international mobility and reforms implemented by the Member States.

(15) It is necessary to strengthen the intensity and volume of European cooperation between schools, and of the mobility of school staff and learners in order to address the priorities set out in the Agenda for European cooperation on schools for the 21st century[16], namely to improve the quality of school education in the Union in the fields of competence development and in order to improve equity and inclusion within school systems and institutions, as well as to reinforce the teaching profession and school leadership[17]. In this context, particular importance should be given to the strategic targets on reducing early school leaving, improving performance in basic skills, improving participation and quality in early childhood education and care[18], as well as to targets on reinforcing the professional competences of school teachers and school leaders[19], and improving the educational chances of children with a migrant background and those at socio economic disadvantage[20].

(16) The renewed European Agenda for Adult Learning included in Council Resolution of [….][21] aims at enabling all adults to develop and enhance their skills and competences throughout their lives, giving particular attention to improving provision for the high number of low-skilled Europeans targeted in Europe 2020.

(17) The action of the European Youth Forum, the National Academic Recognition Centres (NARIC), the Eurydice, Euroguidance and Eurodesk networks, as well as of the eTwinning National Support Services, the Europass National Centres, and the National Information Offices in the neighbourhood countries is essential in order to achieve the objectives of the programme, notably by providing the Commission with regular and updated information regarding the various fields of their activity and through the dissemination of the Programme results in the Union and in the third participating countries.

(18) Cooperation between the Programme and international organisations in the field of education, training, youth and sport, in particular with the Council of Europe, needs to be strengthened.

(19) The programme should contribute to develop excellence in European integration studies world-wide, it should in particular support institutions that have a European governance structure, cover the whole spectrum of policy fields that are of interest for the Union, are non profit organisations and provide recognised academic degrees.

(20) The Communication from the Commission on "Developing the European Dimension in Sport"[22] of 18 January 2011 sets out the Commission's ideas for Union-level action in the field of sport after the entry into force of the Lisbon Treaty and proposes a list of concrete actions for the Commission and Member States in three broad chapters: the societal role of sport, the economic dimension of sport and the organisation of sport.

(21) Improved transparency of qualifications and competences and extended acceptance of Union tools should facilitate mobility throughout Europe for lifelong learning purposes, therefore contributing to the development of quality education and training, and will facilitate mobility for occupational purposes, between countries as well as across sectors. Opening up access for young students (including vocational and education training students) to methods, practices and technologies used in other countries will help to improve their employability in a global economy; it can also help making jobs with an international profile more attractive.

(22) For this purpose, it is recommended to extend the use of the single framework for the transparency of qualifications and competences (Europass) under Decision No2241/2004/EC of the European Parliament and of the Council of 15 December 2004[23], the European Qualifications Framework (EQF) under Recommendation of the European Parliament and of the Council of 23 April 2008[24], the European Credit system for Vocational Education and Training (ECVET) under Recommendation of the European Parliament and of the Council of 18 June 2009[25] and the European Credit Transfer and Accumulation System (ECTS).

(23) In order to ensure greater efficiency in communication to the public at large and stronger synergies between the communication activities undertaken at the initiative of the Commission, the resources allocated to communication under this Regulation shall also contribute to covering the corporate communication of the political priorities of the European Union provided that these are related to the general objectives of this Regulation.

(24) It is necessary to ensure the European added value of all actions carried out within in the framework of the Programme, and complementarity to activities of Member States in compliance with Article 167(4) of the Treaty on the functioning of the European Union and other activities, in particular in the field of culture, research, industrial and cohesion policy, enlargement policy and external relations.

(25) Effective performance management, including evaluation and monitoring, requires development of specific performance indicators which can be measured over time, which are both realistic and reflect the logic of the intervention and are relevant to the appropriate hierarchy of objectives and activities.

(26) This Regulation lays down, for the entire duration of the Programme, a financial envelope representing the prime reference, within the meaning of point (17) of the Interinstitutional Agreement of XX/YY/201Z between the European Parliament, the Council and the Commission on cooperation in budgetary matters and on sound financial management, for the budgetary authority during the annual budgetary procedure.

(27) The need of establishing criteria of performance on which the allocation of budget between Member States for the actions managed by the National Agencies should be based. .

(28) The candidate countries for accession to the Union and the EFTA countries which are members of the EEA may participate in the Union Programmes on the basis of Framework Agreements, Association Council Decisions or similar agreements.

(29) The Swiss Confederation may participate in the Union Programmes in accordance with the agreement to be signed between the Union and that country.

(30) The European Commission and the High Representative of the European Union for Foreign Affairs and Security policy, in their joint Communication on a new response to a changing Neighbourhood[26] outlined, inter alia, the aim to further facilitate Neighbourhood countries’ participation in Union mobility and capacity building actions in higher education and the opening of the future education programme to Neighbouring countries.

(31) The financial interests of the European Union should be protected through proportionate measures throughout the expenditure cycle, including the prevention, detection and investigation of irregularities, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, penalties. While Union external assistance has increasing financing need, the economic and budgetary situation of the Union limits the resources available for such assistance. The Commission should therefore seek for the most efficient use of available resources in particular through the use of financial instruments with leverage effect.

(32) In its Communication "A Budget for Europe 2020" of 29 June 2011 the Commission has underlined its commitment to simplifying Union funding. The creation of a single programme on Education, Training, Youth and Sport should provide for significant simplification, rationalisation and synergies in the management of the programme. The implementation should be further simplified by the use of lump sum, unit cost or flat rate funding, as well as reducing formal requirements for beneficiaries and Member States.

(33) In order to ensure quick response to changed needs during the whole duration of the Programme, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of provisions relating to the performance criteria and on the actions managed by the National Agencies. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing-up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and Council.

(34) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission.

(35) The implementing powers relating to work programme should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powers[27].

(36) It is appropriate to ensure a correct closure of the Programme, in particular regarding the continuation of multi-annual arrangements for its management, such as the financing of technical and administrative assistance. As from 1 January 2014, the technical and administrative assistance should ensure, if necessary, the management of actions not yet finalised under the predecessor programmes by end of 2013.

HAVE ADOPTED THIS REGULATION:

CHAPTER I

General provisions

Article 1

Scope of the Programme

1. This Regulation establishes a Programme for Union action in the field of Education, Training, Youth and Sport called "Erasmus for All" (hereinafter referred to as "the Programme").

2. The Programme shall be implemented for the period from 1 January 2014 to 31 December 2020.

3. The Programme covers education at all levels, in a lifelong learning perspective, in particular Higher education, Vocational Education and Training and Adult learning, School Education and Youth.

4. It includes an international dimension in accordance with Article 21 of the Treaty of the European Union and will also support activities in the field of sport.

Article 2

Definitions

For the purpose of this Regulation, the following definitions shall apply:

1. "lifelong learning" means all general education, vocational education and training, non-formal education and informal learning undertaken throughout life, resulting in an improvement in knowledge, skills and competences within a personal, civic, social and/or employment-related perspective, including the provision of counselling and guidance services;

2. "non formal setting" means a learning context that is often planned and organised, but not part of the formal education and training system.

3. "learning mobility" means moving physically to a country other than the country of residence, in order to undertake study, training or other learning, including traineeships and non-formal learning, or teaching or participating in a transnational professional development activity. It may include preparatory training in the host language. Learning mobility also covers youth exchanges and transnational professional development activities involving youth workers;

4. "Cooperation for innovation and good practices" means transnational cooperation projects involving organisations active in the fields of education, training and/or youth and may include other organisations.

5. "Support for policy reform" means any type of activity aimed at supporting and facilitating the modernization of education and training systems through the process of policy cooperation between Member States, in particular the Open methods of Coordination;

6. "virtual mobility" stands for a set of information and communications technology supported activities, organized at institutional level, that realize or facilitate international, collaborative experiences in a context of teaching and/or learning;

7. "staff" means persons who, either on a professional or voluntary basis, are involved in education, training or youth non-formal learning. It may include teachers, trainers, school leaders, youth workers and non-educational staff;

8. "youth worker" means a professional or a volunteer involved in non-formal learning;

9. "young people" means individuals aged between thirteen and thirty;

10. "higher education institution" means:

(a) any type of higher education institution, in accordance with national legislation or practice, which offers recognised degrees or other recognised tertiary level qualifications, whatever such establishments may be called;

(b) any institution, in accordance with national legislation or practice, which offers vocational education or training at tertiary level;

11. "school" means all types of institutions providing general (pre-school, primary or secondary), vocational and technical education;

12. "academic institution" means any educational institution dedicated to education and research;

13. "vocational training" means any form of initial vocational education or training, including technical and vocational teaching and apprenticeships, which contributes to the achievement of a vocational qualification recognised by the competent authorities in the Member State in which it is obtained, as well as continuing vocational education or training undertaken by a person during his or her working life;

14. "adult learning" means all forms of non-vocational adult learning, whether of a formal, non-formal or informal nature;

15. "joint degrees" means an integrated study programme offered by at least two higher education institutions resulting in a single degree certificate issued and signed by all the participating institutions jointly and recognised officially in the countries where the participating institutions are located;

16. "double degree/multiple degree" means a study programme offered by at least two (double) or more (multiple) higher education institutions whereby the student receives upon completion a separate degree certificate from each of the participating institution;

17. "youth activity" means an out-of-school activity (such as youth exchange, volunteering) carried out by a young person, either individually or in group, characterized by a non-formal learning approach;

18. "partnership" means an agreement between a group of institutions or organisations in different Member States to carry out joint European activities in the field of education, training and youth or establishing a formal or informal network in a relevant field. As regards sport, it means an agreement with one or more third parties such as professional sport organisations or sponsors in different Member States in order to attract additional sources of support for achieving the desired outcomes of the Programme.

19. "enterprise" means all undertakings engaged in economic activity in the public or private sector whatever their size, legal status or the economic sector in which they operate, including the social economy;

20. "skills" means the ability to apply knowledge and use know-how to complete tasks and solve problems;

21. "competence" means the proven ability to use knowledge, skills and attitudes with responsibility and autonomy in learning, social and professional contexts.

22. "key competences" means the basic set of knowledge, skills and attitudes which all individuals need for personal fulfilment and development, active citizenship, social inclusion and employment;

23. "results" means any data, knowledge and information whatever their form or nature, whether or not they can be protected, which are generated in the action as well as any attached rights, including intellectual property rights;

24. "dissemination of results" means the public disclosure of the results of the Programme and its predecessors by any appropriate means designed to ensure that the results are appropriately recognised, demonstrated and implemented on a wide scale;

25. "Open Method of Coordination" means intergovernmental method providing a framework for cooperation between the Member States, whose national policies can thus be directed towards certain common objectives. Within the scope of this programme, the OMC applies to education, training and youth;

26. "EU transparency tools" means instruments that help stakeholders to understand, appreciate and as appropriate recognise learning outcomes and qualifications throughout the Union;

27. "neighbourhood countries" means the countries and territories listed in the Annex to the Regulation XX/2012 of the European Parliament and of the Council of X YY 2012[28] establishing a European Neighbourhood Instrument: Algeria, Armenia, Azerbaijan, Belarus, Egypt, Georgia, Israel, Jordan, Lebanon, Libya, Moldova, Morocco, Occupied Palestinian Territory, Syria, Tunisia and Ukraine. In addition, as for the activities supported in the youth field, Russia is also considered a neighbourhood country;

28. "dual career" means the combination of high-level sports training with general education or work.

Article 3

European added value

1. The Programme shall only support those actions and activities presenting a potential European added value and contributing to the achievement of the general objective as referred to in Article 4.

2. The European added value of the actions and activities of the Programme shall be ensured in particular through:

(a) Their transnational character, in particular transnational mobility and cooperation aiming at long-term systemic impact;

(b) Their complementarity and synergy with other national, international and other Union programmes and policies, allowing for economies of scale and critical mass;

(c) Their contribution to the effective use of Union tools for recognition of qualifications and transparency.

Article 4

General objective of the Programme

1. The Programme aims to contribute to the objectives of the Europe 2020 strategy and of the Education and Training strategic framework 2020 (ET2020), including the corresponding benchmarks established in those instruments, to renewed framework for European Cooperation in the Youth field (2010-2018), to the sustainable development of third countries in the field of higher education and to developing the European dimension in sport.

2. It particularly aims to contribute to reach the following Europe 2020 headline targets:

(a) Reduction of early school leaving rates;

(b) Increase of 30-34 years old students having completed third level of education.

CHAPTER II

Education, Training and Youth

Article 5

Specific objectives

The Programme shall pursue the following specific objectives in the areas of education, training and youth:

(a) To improve the level of key competences and skills regarding in particular their relevance for the labour market and society, as well as the participation of young people in democratic life in Europe, notably through increased learning mobility opportunities for young people, learners, staff and youth workers, and through strengthened cooperation between education youth and the world of labour market;

– Related indicators:

– % of participants who have increased their key competences and/or their skills relevant for their employability;

– % of young participants declaring being better prepared to participate in social and political life

(b) To foster quality improvements, innovation excellence and internationalisation at the level of educational institutions, as well as in youth work, notably through enhanced transnational cooperation between education and training providers/youth organisations and other stakeholders;

– Related indicator: % of organisations that have participated in the Programme and that have developed/adopted innovative methods

(c) To promote the emergence of a European lifelong learning area, trigger policy reforms at national level, support the modernisation of education and training systems, including non-formal learning, and support European cooperation in the youth field, notably through enhanced policy cooperation, better use of recognition and transparency tools and the dissemination of good practices;

– Related indicator: Number of Member States making use of the results of the Open Methods of Coordination in their national policy developments

(d) To enhance the international dimension of education, training and youth notably in higher education by increasing the attractiveness of the Union higher education institutions and supporting the Union external action, including its development objectives through the promotion of mobility and cooperation between EU and third country higher education institutions and targeted capacity building in third countries.

– Related indicator: Number of non EU higher education institutions involved in the mobility and cooperation actions

(e) To improve the teaching and learning of languages and promote linguistic diversity;

– Related indicator: % of participants who have increased their language skills

(f) To promote excellence in teaching and research activities in European integration through the Jean Monnet activities worldwide as referred to in Article 10.

– Related indicator: Number of students receiving training through Jean Monnet activities

Article 6

Actions of the Programme

1. In the field of education, training and youth, the Programme shall pursue its objectives through the three following types of actions:

(a) Learning mobility of individuals,

(b) Cooperation for innovation and good practices,

(c) Support for policy reform.

2. The specific Jean Monnet activities are described in Article 10.

Article 7

Learning mobility of individuals

1. Learning mobility of individuals action shall support:

(a) transnational mobility of higher education and vocational training students as well as of young people involved in non-formal activities between the participating countries as referred in Article 18. This mobility may take the form of studying at a partner institution, traineeships abroad or participating in youth activities, notably volunteering. Degree mobility at Masters level shall be supported through the student loan guarantee facility as referred to in Article 14 (3).

(b) Transnational mobility of staff, within the participating countries as referred in Article 18. This mobility may take the form of teaching or taking part in professional development activities abroad.

2. This action will also support the transnational mobility of students, young people and staff to and from third countries as regards higher education including mobility organized on the basis of joint, double or multiple degrees of high quality or joint calls, as well as non-formal learning.

Article 8

Cooperation for innovation and good practices

1. Cooperation for innovation and good practices action shall support:

(a) transnational strategic partnerships between organisations involved in education, training and/or youth activities or other relevant sectors developing and implementing joint initiatives and promoting exchanges of experience and know-how;

(b) transnational partnerships between enterprises and education institutions in the form of:

– Knowledge Alliances between higher education institutions and enterprises promoting creativity, innovation and entrepreneurship by offering relevant learning opportunities, including developing new curricula;

– Sector Skills Alliances between education and training providers and enterprises promoting employability, creating new sector-specific curricula, developing innovative ways of vocational teaching and training and putting the Union wide recognition tools in practice.

(c) IT support platforms, including e-Twinning, covering educational sectors and youth allowing peer learning, virtual mobility and exchanges of best practices and opening access for participants fromneighbourhood countries.

2. This action shall also support development, capacity building, regional integration, knowledge exchanges and modernisation processes through partnerships between Union and third countries' higher education institutions as well as in the youth sector, notably for peer learning and joint educational projects, promoting regional cooperation, in particular with neighbourhood countries.

Article 9

Support for policy reform

1. Support for policy reform action shall include the activities initiated at Union level related to:

(a) the activities related to the implementation of the Union policy agenda on education, training and youth (Open Methods of Coordination), as well as the Bologna and Copenhagen processes and the structured dialogue with young people;

(b) the implementation in participating countries of Union transparency tools, in particular Europass, the European Qualifications Framework (EQF), European Credit Transfer and Accumulation System (ECTS), European Credit system for Vocational Education and Training (ECVET) and the support to EU-wide networks;

(c) the policy dialogue with relevant European stakeholders in the area of education, training and youth;

(d) the European Youth Forum, the National Academic Recognition Centres (NARIC), the Eurydice, Euroguidance and Eurodesk networks, as well as the eTwinning National Support Centres, the Europass National Centres, and the National Information Offices in the neighbourhood countries and acceding countries, candidate countries and potential candidates not fully participating in the programme.

2. This action shall also support policy dialogue with third countries and international organizations.

Article 10

Jean Monnet activities

The Jean Monnet activities shall aim to:

(a) promote teaching and research on European integration world-wide among specialist academics, learners and citizens, notably through the creation of Jean Monnet Chairs and other academic activities, as well as by providing aid for other knowledge-building activities at higher education institutions;

(b) support the activities of academic institutions or associations active in the field of European integration studies and support a Jean Monnet label for excellence.

(c) support the following European academic institutions pursuing an aim of European interest;

(i) the European University Institute of Florence;

(ii) the College of Europe (Bruges and Natolin campuses);

(d) promote policy debate and exchanges between the academic world and policy-makers on Union policy priorities.

CHAPTER III

Sport

Article 11

Specific objectives

In line with the general objective, the Programme shall pursue the following specific objectives in the area of sport:

(a) to tackle transnational threats to sport such as doping, match fixing, violence, racism and intolerance;

– Related indicator: % of participants who use the results of cross-border projects to fight against threats to sport.

(b) to support good governance in sport and dual careers of athletes;

– Related indicator: % of participants who use the results of cross-border projects to improve good governance and dual careers.

(c) to promote social inclusion, equal opportunities and health-enhancing physical activity through increased participation in sport.

– Related indicator: % of participants who use the results of cross-border projects to enhance social inclusion, equal opportunities and participation rates.

Article 12

Activities

1. The objectives of cooperation in Sport shall be pursued through the following transnational activities:

(a) support to transnational collaborative projects;

(b) support to non-commercial European sport events involving several European countries;

(c) support the strengthening of the evidence base for policy making ;

(d) support to capacity building of sport organisations;

(e) dialogue with relevant European stakeholders.

2. The sport activities supported shall, where appropriate, leverage supplementary funding through partnership with third parties such as private undertakings.

CHAPTER IV

Financial Provisions

Article 13

Budget

1. The financial envelope for the implementation of this Programme as from 1 January 2014 is set at EUR 17 299 000 000.

The following amounts shall be allocated to the Actions of the Programme

a) EUR 16 741 738 000 for actions in the field of education, training and youth, as referred to under Article 6(1);

b) EUR 318 435 000 for the Jean Monnet activities, as referred to under Article 10;

c) EUR 238 827 000 for actions relating to Sport, as referred to in Chapter III.

2. In addition to the financial envelope as indicated in paragraph 1, and in order to promote the international dimension of higher education, an indicative amount of EUR 1 812 100 000[29] from the different external instruments (Development Cooperation Instrument, European Neighbourhood Instrument, Instrument for Pre-accession Assistance, Partnership Instrument and the European development Fund),, will be allocated to actions of learning mobility to or from countries other than those as referred to in Article 18(1) and to cooperation and policy dialogue with authorities/institutions/organisations from these countries. The provisions of this Regulation will apply to the use of those funds.

The funding will be made available through 2 multi annual allocations only covering the first 4 years and the remaining 3 years respectively. This funding will be reflected in the multiannual indicative programming of these instruments, in line with the identified needs and priorities of the countries concerned. The allocations can be revised in case of major unforeseen circumstances or important political changes in line with the EU external priorities. Cooperation with non participating countries may be based, where relevant, on additional appropriations from partner countries to be made available in accordance with procedures to be agreed with these countries.

3. In accordance with the expected value added of the three types of actions as referred to in Article 6(1), and with the principles of critical mass, concentration, efficiency and performance, the amount indicated in Article 13(1.a) will be indicatively allocated as follows:

– [65%] of this amount is allocated to learning mobility of individuals;

– [26%] of this amount is allocated to cooperation for innovation and good practices;

– [4%] of this amount is allocated to support for policy reform.

– [3%] of this amount will cover operating grants to National Agencies

– [2%] of this amount will cover administrative expenditures.

4. The financial allocation for the Programme may also cover expenses pertaining to preparatory, monitoring, control, audit and evaluation activities which are required for the management of the programme and the achievement of its objectives; in particular, studies, meetings of experts, information and communication actions, including corporate communication of the political priorities of the European Union as far as they are related to the general objectives of this Regulation, expenses linked to IT focusing on information processing and exchange, together with all other technical and administrative assistance expenses incurred by the Commission for the management of the Programme.

5. The financial allocation may also cover the technical and administrative assistance expenses necessary to ensure the transition between the Programme and the measures adopted under Decision No 1720/2006/EC establishing the Lifelong Learning Programme, Decision No 1719/2006/EC establishing the Youth in Action programme and Decision No 1298/2008/EC establishing the Erasmus Mundus Programme. If necessary, appropriations could be entered in the budget beyond 2020 to cover similar expenses, in order to enable the management of actions not yet completed by 31 December 2020.

6. The funds for the learning mobility of individuals referred to in Article 6(1.a) that are to be managed by a National Agency shall be allocated on the basis of population and cost of living in the Member State, distance between capitals of Member States and performance. The parameter of performance accounts for 25% of the total funds according to the criteria as referred to in paragraphs 7 and 8.

7. Allocation of funds based on performance applies in order to promote an efficient and effective use of resources. The criteria used to measure performance shall be based on the most recent data available. Those criteria are:

(a) the level of annual realised outputs that relate to the agreed outcomes and results;

(b) the level of annual payments realised.

These criteria may be subjected to revision during the duration of the Programme in accordance with the procedure as referred to in Article 28 relating to delegated acts.

8. The allocation of funds for the year 2014 shall be based on latest available data of outputs and budget take-up of the Lifelong Learning Programme, Youth in Action and Erasmus Mundus programmes implemented until 1 January 2014.

9. The Programme may provide support through specific innovative funding modalities, in particular those set out in Article 14(3).

Article 14

Specific funding modalities

1. The Commission shall implement the Union financial support in accordance with Regulation XX/2012 [the Financial Regulation].

2. The Commission may launch joint calls with third countries or their organisations and agencies to jointly fund projects. Projects may be evaluated and selected through joint evaluation and selection procedures to be agreed upon by the funding agencies involved, in compliance with the principles set out in Regulation XX/2012[30] [Financial Regulation].

3. The Commission shall provide the funding for guarantees for loans to students resident in a participating country as defined in Article 18(1) undertaking a full Masters degree in another participating country, to be delivered through a trustee with a mandate to implement it on the basis of fiduciary agreements setting out the detailed rules and requirements governing the implementation of the financial instrument as well as the respective obligations of the parties. The financial instrument shall comply with the provisions regarding financial instruments in the Financial Regulation and in the Delegated Act replacing the Implementing Rules. In accordance with Article 18(2) of the Regulation (EC, Euratom) No 1605/2002, revenues and repayments generated by the guarantees should be assigned to the financial instrument. This financial instrument, including market needs and take-up, will be subject to the monitoring and evaluation as referred to in Article 15(2).

4. Public bodies, as well as schools, higher education institutions and organisations in the fields of education, training, youth and sport that have received over 50% of their annual revenue from public sources over the last two years shall be considered as having the necessary financial, professional and administrative capacity to carry out activities under the Programme. They shall not be required to present further documentation to demonstrate this.

5. Grants for learning mobility awarded to individuals shall be exempted from any taxes and social levies. The same exemption shall apply to intermediary bodies awarding such financial support to the individuals concerned.

6. The amount referred to in Article [127(1)] of the Financial Regulation shall not apply to financial support for learning mobility awarded to individuals.

CHAPTER V

Performance results and dissemination

Article 15

Monitoring and evaluation of performance and results

1. The Commission, in cooperation with the Member States, shall regularly monitor the performance and results of the Programme against its objectives, particularly regarding:

(a) The European added value as referred to in Article 3;

(b) The distribution of funds associated with the main educational sectors, aiming to ensure, by the end of the Programme, an allocation of funding which guarantees significant systemic impact.

2. In addition to the continuing monitoring, the Commission shall establish an evaluation report no later than end 2017 in order to assess the effectiveness in achieving the objectives, the efficiency of the Programme and its European added value, in view of a decision on the renewal, modification or suspension of the Programme. The evaluation shall address the scope for simplification, its internal and external coherence, the continued relevance of all objectives, as well as the contribution of the measures to the Union priorities of smart, sustainable and inclusive growth. It shall also take into account evaluation results on the long-term impact of the predecessor programmes (Lifelong Learning, Youth in Action, Erasmus Mundus and other international higher education programmes).

3. Without prejudice to the requirements set out in Chapter VII and the obligations of National Agencies as referred to in Article 22, Member States shall submit to the Commission, by 31 March 2017 and 30 June 2019 respectively, reports on the implementation and the impact of the Programme.

Article 16

Communication and dissemination

1. The Commission in cooperation with Member States shall ensure the dissemination of information, publicity and follow-up with regard to actions supported under the Programme, as well as the dissemination of the results of the previous Lifelong Learning, Erasmus Mundus and Youth in Action Programmes.

2. Beneficiaries of the supported projects through actions and activities as referred to in Articles 6, 10 and 12 should ensure a proper communication and dissemination of the results and impacts obtained.

3. The National Agencies as referred to in Article 22 shall develop a consistent policy in view of an effective dissemination and exploitation of results of activities supported under the actions they manage within the programme and assist the Commission in the general task of disseminating information on the Programme and its results.

4. The public and private bodies within the main education sectors covered by the Programme shall use the brand name "Erasmus" for the purpose of communication and dissemination of information relating to the programme; the brand name shall be associated with the main education sectors as follows:

– "Erasmus Higher Education", associated with all types of higher education, in Europe and internationally

– "Erasmus Training", associated with vocational education and training and adult learning

– "Erasmus Schools", associated with school education

– "Erasmus Youth Participation", associated with youth non formal learning.

5. Communication activities shall also contribute to the corporate communication of the political priorities of the Union provided that they are related to the general objectives of this Regulation.

CHAPTER VI

Access to the Programme

Article 17

Access

1. Any public and private body active in the areas of education, training, youth and grassroots sport may apply within this Programme.

2. When implementing the Programme, the Commission and the Member States shall ensure particular efforts to facilitate the participation of people with difficulties for educational, social, gender, physical, psychological, geographical, economic and cultural reasons.

Article 18

Country participation

1. The Programme is open to the participation of the following countries (hereinafter referred to as the ‘participating countries’):

(a) the Member States;

(b) the acceding countries, candidate countries and potential candidates benefiting from a pre-accession strategy, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programmes established in the respective Framework Agreements, Association Council Decisions or similar agreements;

(c) the EFTA States that are party to the EEA Agreement, in accordance with the provisions of that Agreement;

(d) the Swiss Confederation, provided that a bilateral agreement foreseeing its participation is concluded with that country;

2. The participating countries listed in paragraph 1 shall be subject to all the obligations and shall fulfil all the tasks set out in this Regulation in relation to Member States.

3. The Programme shall support the cooperation with partners from third countries, notably partners from neighbourhood countries, in actions and activities as referred to in Articles 6 and 10.

CHAPTER VII

Management and audit system

Article 19

Complementarity

The Commission, in cooperation with Member States, shall ensure overall consistency and complementarity with:

(a) the relevant Union policies, in particular those in the fields of culture and the media, employment, health, research and innovation, enterprise, justice, consumer, development and cohesion policy;

(b) the other Union relevant funding sources in the field of education, training and youth policies, in particular the European Social Fund and the other financial instruments relating to employment and social inclusion, the European Regional Development Fund, the Research and Innovation Programmes, as well as the financial instruments relating to justice and citizenship, health, external cooperation Programmes and the pre-accession instruments.

Article 20

Implementing bodies

The Programme shall be implemented by the following bodies:

(a) The Commission at Union level;

(b) The National Agencies at national level to be implemented in the participating countries as referred to in Article 18(1).

Article 21

National Authority

1. Within one month of the entry into force of this Regulation, the Member States shall notify the Commission by way of a formal notification transmitted by their Permanent Representation of the person(s) legally authorized to act on their behalf as the “National Authority” for the purpose of this Regulation. In case of replacement of the National Authority in the course of the Programme lifetime, the Member State shall notify the Commission thereof immediately according to the same procedure.

2. The Member States shall take all appropriate measures to remove legal and administrative obstacles to the proper functioning of the Programme, including the administration of visas..

3. Within three months of the entry into force of this Regulation, the National Authority shall designate a single coordinating body called hereafter "National Agency". The National Authority shall provide the Commission with an appropriate ex ante Compliance Assessment that the National Agency complies with the provisions of Article 55(1)(b)(vi) and Article 57(1), (2) and (3) of the Regulation No XX/2012, , and Article X of its Delegated Regulation NoXX/2012, as well as with the Union requirements for internal control standards for National Agencies and rules for their management of Programme funds for grant support.

4. The National Authority shall designate an independent audit body as referred to in Article 24.

5. The National Authority shall monitor and supervise the management of the Programme at national level. It shall inform and consult the Commission in due time prior to taking any decision that may have an impact on the management of the Programme, in particular regarding its National Agency.

6. The National Authority shall base its ex-ante Compliance Assessment on its own controls and audits, and/or on controls and audits undertaken by the independent audit body referred to in Article 24.

7. In the case that the National Agency designated for the Programme is the same as the National Agency designated for the predecessor Lifelong Learning or Youth in Action Programme, the scope of the controls and audits for the ex-ante Compliance Assessment may be limited to the requirements that are new and specific for the Programme.

8. In case the Commission rejects the designation of the National Agency based on its evaluation of the ex-ante Compliance Assessment, the National Authority shall ensure that the necessary remedial actions are taken for the body designated as National Agency to comply with the minimum requirements set by the Commission or designate another body as National Agency.

9. The National Authority shall provide adequate co-financing for the operations of their National Agency to ensure that the Programme is managed in respect of the applicable Union rules.

10. Based on the yearly management declaration of assurance of the National Agency, the independent audit opinion thereon and the Commission's analysis of the National Agency's compliance and performance, the National Authority shall inform the Commission by 30 October of each year on its monitoring and supervision activities on the Programme.

11. The National authority shall take responsibility for the proper management of the Union funds transferred by the Commission to the National Agency for grant support to be awarded under the Programme.

12. In the event of any irregularity, negligence or fraud attributable to the National Agency, as well as in the case of serious shortcomings or underperformance of the National Agency, and where this gives rise to claims by the Commission on the National Agency, the National Authority shall be liable towards the Commission for the funds not recovered.

13. In the events and cases referred to paragraph 12, the National Authority may revoke the National Agency either on its own initiative or upon request from the Commission. In case the National authority wishes to revoke the National Agency for other justified reasons, it shall notify the Commission of the revocation at least six months before the envisaged date of termination of the mandate of the National Agency. In such case, the National Authority and the Commission shall formally agree on specific and timed transition measures.

14. In case of revocation, the National Authority shall implement the necessary controls regarding the Union funds entrusted to the revoked National Agency and ensure an uninhibited transfer of these funds as well as of all documents and management tools required for the Programme management to the new National Agency. The National Authority shall provide the revoked National Agency with the necessary financial support to continue implementing its contractual obligations vis-à-vis the Programme beneficiaries and the Commission until the transfer of these obligations to a new National Agency.

Article 22

National Agency

1. The National Agency shall:

(a) have legal personality or be part of an entity having legal personality, and be governed by the law of the Member State concerned. A ministry may not be designated as National Agency;

(b) have the adequate management capacity, staff and infrastructure to fulfil its tasks satisfactorily, ensuring an efficient and effective management of the Programme and sound financial management of Union funds;

(c) have the operational and legal means to apply the administrative, contractual and financial management rules laid down at Union level;

(d) offer adequate financial guarantees, issued preferably by a public authority, corresponding to the level of Union funds it will be called upon to manage;

(e) be designated for the duration of the Programme.

2. The National Agency shall be responsible of certain Programme actions managed at national level, in conformity with the Articles 55(1)(b)(vi) of Regulation N°XXX/2012 [future Financial Regulation] and of Article X of its Delegated Regulation N°XXX/2012 [future Implementing Rules]. Those actions are:

(a) all Programme actions within the key action "Learning Mobility of Individuals", with the exception of the mobility organized on the basis of joint or double/multiple degrees and the Union loan guarantee scheme;

(b) the Programme action "Strategic Partnerships" within the key action "Cooperation for innovation and good practice";

(c) the management of grassroots activities in the key action "Support to Policy Reform".

3. The National Agency shall be in charge of managing all stages of the project lifecycle of the Programme actions referred to in paragraph 2, with the possible exception of the selection and award decision for the Strategic Partnerships referred to in the same paragraph.

4. The National Agency shall issue grant support to beneficiaries either by way of a grant agreement or a grant decision, as specified by the Commission for the Programme action concerned.

5. The National Agency shall report to the Commission and to its National Authority on a yearly basis in accordance with the provisions set in Article 57(5) of the Financial Regulation N°XX/2012. The National Agency shall be in charge of implementing the observations issued by the Commission following its analysis of the National Agency's management declaration of assurance, as well as of the independent audit opinion thereon.

6. The National Agency may not delegate to a third party any task of Programme or budget implementation conferred on it without prior written authorization from the National Authority and the Commission. The National Agency shall retain sole responsibility for the tasks delegated to a third party.

7. In case of replacement of a National Agency, the revoked National Agency remains legally responsible for implementing its contractual obligations vis-à-vis the Programme beneficiaries and the Commission until the transfer of these obligations to a new National Agency.

8. The National Agency shall be in charge of managing and winding up the financial agreements relating to the predecessor Lifelong Learning and Youth in Action Programmes (2007-2013) that will be still open at the beginning of the Programme.

Article 23

European Commission

1. Within two months of receipt of the ex-ante Compliance Assessment as referred to in Article 21(3) from the National Authority, the Commission shall accept, conditionally accept or reject the designation of the National Agency. The Commission shall not enter into a contractual relationship with the National Agency until the acceptance of the ex-ante Compliance Assessment. In case of a conditional acceptance, the Commission may apply proportionate precautionary measures to its contractual relationship with the National Agency.

2. The Commission shall formalise the legal responsibilities with regard to financial agreements relating to the predecessor Lifelong Learning and Youth in Action Programmes (2007-2013) and still open at the start of the Programme upon its acceptance of the ex-ante Compliance Assessment on the National Agency designated for the Programme.

3. The document governing the contractual relationship between the Commission and the National Agency shall:

(a) stipulate the internal control standards for National Agencies and the rules for the management of the Union funds for grant support by the National Agencies;

(b) include the National Agency work programme comprising the management tasks of the National Agency to which EU support is provided;

(c) specify the reporting requirements for the National Agency.

4. The Commission shall make the following Programme funds available to the National Agency on a yearly basis:

(a) funds for grant support in the Member State to the actions of the Programme the management of which is entrusted to the National Agency;

(b) a financial contribution in support of the Programme management tasks of the National Agency. This will be provided in the form of a flat-rate contribution to the operational costs of the National Agency. It will be established on the basis of the amount of Union funds for grant support entrusted to the National Agency.

5. The Commission shall set the requirements for the National Agency work programme. The Commission shall not make Programme funds available to the National Agency until after formal approval of the relevant National Agency work programme by the Commission.

6. On the basis of the compliance requirements for National Agencies referred to in Article 21(3), the Commission shall review the national management and control system, in particular through the assessment of the ex-ante Compliance Assessment of the National Authority, of the yearly management declaration of assurance of the National Agency and of the opinion of the independent audit body thereon, taking due account of the yearly information from the National Authority on its monitoring and supervision activities on the Programme.

7. Upon its assessment of the yearly management declaration of assurance and of the opinion of the independent audit body thereon, the Commission shall address its opinion and observations thereon to the National Agency and the National Authority.

8. In the event that the Commission cannot accept the National Agency's management declaration of assurance or the independent audit opinion thereon, or in the case of an unsatisfactory implementation of the Commission's observations by the National Agency, the Commission may implement any precautionary and corrective measures necessary to safeguard the Union financial interests in accordance with Article 57 (4) of the Financial Regulation N°XX/2012

9. The Commission shall organize regular meetings with the network of National Agencies in order to ensure a coherent implementation of the Programme across all participating countries.

10. The Commission may request from the National Authorities to designate the institutions or organizations, or the types of such institutions and organizations, to be considered eligible to participate in specific Programme actions in their respective territories.

Article 24

Audit body

1. The independent audit shall issue an audit opinion on the yearly management declaration of assurance referred to in Article 57(5)(d) and (e) of the Financial Regulation N°XX/2012.

2. The independent audit body shall:

(a) Have the necessary professional competences for undertaking public sector audits;

(b) Ensure that audit activity takes account of internationally accepted audit standards;

(c) Not be in a position of conflict of interest with regard to the legal entity of which the National Agency is part. It shall notably be functionally independent with regard to the legal entity of which the National Agency is part and shall not execute any other controls or audits on or for the legal entity.

3. The independent audit body shall provide the Commission and its representatives as well as the Court of Auditors full access to all documents and reports in support of the audit opinion that it issues on the yearly management declaration of assurance of the National Agency.

CHAPTER VIII

Control system

Article 25

Principles of the control system

1. The Commission shall take appropriate measures ensuring that, when actions financed under this Regulation are implemented, the financial interests of the European Union are protected by the application of preventive measures against fraud, corruption and any other illegal activities, by effective controls and, if irregularities are detected, by the recovery of the amounts wrongly paid and, where appropriate, by effective, proportionate and deterrent penalties.

2. The Commission shall be responsible for the supervisory controls with regard to the Programme actions managed by the National Agencies. It shall set the minimum requirements for the controls by the National Agency and the independent audit body.

3. The National Agency shall be responsible for the primary controls of grant beneficiaries for the Programme actions as referred to in Article 22(2). These controls shall give reasonable assurance that the grants awarded are used as intended and in compliance with the applicable Union rules.

4. With regard to the Programme funds transferred to the National Agencies, the Commission will ensure proper coordination of its controls with the National Authorities and the National Agencies, on the basis of the single audit principle and following a risk-based analysis. This provision does not apply to OLAF investigations.

Article 26

Protection of the financial interests of the European Union

1. The Commission or its representatives and the Court of Auditors shall have the power of audit, on the basis of documents and on-the-spot, over all grant beneficiaries, contractors, subcontractors and other third parties who have received Union funds. They may also conduct audits and controls of the National Agencies.

2. The European Anti-fraud Office (OLAF) may carry out on-the-spot controls and inspections on economic operators concerned directly or indirectly by such funding in accordance with the procedure laid down in Regulation (Euratom, EC) No 2185/96 with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the European Union in connection with a grant agreement or grant decision or a contract concerning Union funding.

3. Without prejudice to the paragraphs 1 and 2, cooperation agreements with third countries and international organisations and grant agreements and grant decisions and contracts resulting from the implementation of this Regulation shall expressly empower the Commission, the Court of Auditors and OLAF to conduct such audits, on-the-spot controls and inspections.

CHAPTER IX

Delegations of power and implementing provisions

Article 27

Delegation of powers to the Commission

The Commission shall be empowered to adopt delegated acts in accordance with Article 28 concerning the amendment of Article 13(7) and Article 22(2) relating respectively to the performance criteria and the provisions on the actions managed by the National Agencies.

Article 28

Exercise of the 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 27 shall be conferred on the Commission for a period of 7 years from the date of entry into force of this Regulation and for the duration of the Programme.

3. The delegation of power referred to in Article 27 may be revoked at any time by the European Parliament or by the Council. A decision of revocation 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.

4. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

5. A delegated act adopted pursuant to Article 27 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of 2 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 2 months at the initiative of the European Parliament or the Council.

Article 29

Implementation of the Programme

In order to implement the programme, the Commission shall adopt annual work programmes by way of implementing acts in accordance with the examination procedure referred to in Article 30(2). They shall set out the objectives pursued, the expected results, the method of implementation and their total amount. They shall also contain a description of the actions to be financed, an indication of the amount allocated to each action, as well as the distribution of funds between the Member States for the actions managed through the National Agencies, and an indicative implementation timetable. They shall include for grants the priorities, the essential evaluation criteria and the maximum rate of co-financing.

Article 30

Committee procedure

1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

CHAPTER X

Final Provisions

Article 31

Repeal - Transitional provisions

1. Decision No 1720/2006/EC establishing the Lifelong Learning Programme, Decision No 1719/2006/EC establishing the Youth in Action Programme and Decision No 1298/2008/EC establishing the Erasmus Mundus Programme shall be repealed from 1 January 2014.

2. Actions which are initiated on or before 31 December 2013 on the basis of Decision No 1720/2006/EC, Decision No 1719/2006/EC and Decision No 1298/2008/EC shall be administered, whether relevant, in conformity with the provisions of this Regulation.

3. Member States shall ensure at national level the uninhibited transition between the actions carried out in the context of the previous Programmes in the fields of lifelong learning, youth and international cooperation in higher education and those to be implemented in the Programme.

Article 32

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

It shall apply from 1 January 2014.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament For the Council

The President The President

ANNEX LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS

[to be used for any proposal or initiative submitted to the legislative authority

(Articles 28 of the Financial Regulation and 22 of the implementing rules)]

1. FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1. Title of the proposal/initiative

1.2. Policy area(s) concerned in the ABM/ABB structure

1.3. Nature of the proposal/initiative

1.4. Objective(s)

1.5. Grounds for the proposal/initiative

1.6. Duration and financial impact

1.7. Management method(s) envisaged

2. MANAGEMENT MEASURES

2.1. Monitoring and reporting rules

2.2. Management and control system

2.3. Measures to prevent fraud and irregularities

3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1. Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

3.2. Estimated impact on expenditure

3.2.1. Summary of estimated impact on expenditure

3.2.2. Estimated impact on operational appropriations

3.2.3. Estimated impact on appropriations of an administrative nature

3.2.4. Compatibility with the current multiannual financial framework

3.2.5. Third-party participation in financing

3.3. Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS

1. FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1. Title of the proposal/initiative

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing Erasmus For All action, the Union Programme for Education, Training, Youth and Sport.

1.2. Policy area(s) concerned in the ABM/ABB structure[31]

Title 15 Education and Culture

1.3. Nature of the proposal/initiative

x The proposal/initiative relates to a new action

¨ The proposal/initiative relates to a new action following a pilot project/preparatory action[32]

¨ The proposal/initiative relates to the extension of an existing action

¨ The proposal/initiative relates to an action redirected towards a new action

1.4. Objectives

1.4.1. The Commission's multiannual strategic objective(s) targeted by the proposal/initiative

Europe 2020 strategy

Priority: Smart and inclusive growth, Single programme for education, Training, Youth and Sport

Targets: Education/Skills

Flagship initiatives: Agenda for new skills and jobs, Youth on the move

1.4.2. Specific objective(s) and ABM/ABB activity(ies) concerned

SPECIFIC OBJECTIVE No 1:

To improve the level of key competences and skills regarding in particular their relevance for the labour market and society, as well as the participation of young people in democratic life in Europe, notably through increased learning mobility opportunities for young people, learners, staff and youth workers, and through strengthened cooperation between education youth and the world of labour market.

SPECIFIC OBJECTIVE No 2:

To foster quality improvements, innovation excellence and internationalisation at the level of educational institutions, as well as in youth work, notably through enhanced transnational cooperation between education and training providers/youth organisations and other stakeholders.

SPECIFIC OBJECTIVE No 3:

To promote the emergence of a European lifelong learning area, trigger policy reforms at national level, support the modernisation of education and training systems, including non-formal learning, and support European cooperation in the youth field, notably through enhanced policy cooperation, better use of recognition and transparency tools and the dissemination of good practices

SPECIFIC OBJECTIVE No 4:

To enhance the international dimension of education, training and youth notably in higher education by increasing the attractiveness of the Union higher education institutions and supporting the Union development objectives through the promotion of mobility and cooperation between EU and third country higher education institutions and targeted capacity building in third countries

SPECIFIC OBJECTIVE No 5:

To improve the teaching and learning of languages and promote linguistic diversity

SPECIFIC OBJECTIVE No 6:

To promote excellence in teaching and research activities in European integration through the Jean Monnet activities worldwide.

SPECIFIC OBJECTIVE No 7:

To tackle transnational threats to sport such as doping, match fixing, violence, racism and intolerance.

SPECIFIC OBJECTIVE No 8:

To support good governance in sport and dual careers of athletes

SPECIFIC OBJECTIVE No 9:

To promote social inclusion, equal opportunities and health-enhancing physical activity through increased participation in sport.

ABM/ABB activity(ies) concerned

Proposed new ABM/ABB activity:

15.02 Education, Training, Youth and Sport

1.4.3. Expected result(s) and impact

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.

Through the promotion of transnational formal and non-formal learning mobility and cooperation, both within the Union and internationally, Erasmus for all will help member states achieving significant systemic impact on their education, training and youth systems. The expected benefits will go well beyond the individuals concerned; they will help young people acquire the new skills and increase their employability; they will make education institutions more efficient, open and international, and provide quality tools, analysis and research.

In the area of non-formal learning and youth work, strongest impacts are expected on individuals' educational and professional development, including the promotion of youth participation in society as well as sport. The programme will also shape policy initiatives such as the European Voluntary Service, enhancing cooperation in the area of voluntary activities for young people.

For candidate and third countries the proposal will increase their potential for partnerships aiming at closer cooperation notably in mobility activities. Reinforced cooperation will support the capacity building and modernisation of higher education in partner countries, and contribute to the attractiveness of Europe.

1.4.4. Indicators of results and impact

Specify the indicators for monitoring implementation of the proposal/initiative.

Indicators || Sources of data || Target

– Tertiary level attainment – Early school leavers || Europe 2020 ET2020 reports Eurostat || By 2020, at least 40% of 30-34 year olds should be higher education graduates. By 2020, not more than 10% of 18-24-year-olds have only lower-secondary education and are not enrolled in education or training.

% of participants who have increased their key competences and/or their skills relevant for their employability || Eurostat Final report of beneficiary Surveys/Eurobarometer || By 2020, 95% of people who state having gained or improved key-competences through their participation in a programme project

% of young participants declaring being better prepared to participate in social and political life || Final report of beneficiary Surveys/Eurobarometer || By 2020, 70% of young people who state being better prepared to participated in social and political life through their participation in a programme project

% of organisations that have participated in the Programme and that have developed/adopted innovative methods || Surveys/Eurobarometer Final report || Yearly increase

Number of member states making use of the results of the Open method of coordination in their national policy development || ET 2020 || All Member states take the relevant information/results available from the education and training OMC systematically into consideration by 2020

Number of non Union higher education institutions involved in the mobility and cooperation actions || Final report IT monitoring tool Surveys/Eurobarometer || Yearly increase

% of participants who have increased their language skills || || By 2020, at least 80% of lower secondary pupils are taught two foreign languages or more

% of the increase in the number of Jean Monnet project worldwide || Final report IT monitoring tool Surveys/Eurobarometer || Yearly increase

– % of participants who use the results of cross-border projects to fight against threats to sport. – % of participants who use the results of cross-border projects to improve good governance and dual careers – % of participants who use the results of cross-border projects to enhance social inclusion, equal opportunities and participation rates || Final report IT monitoring tool Surveys/Eurobarometer || Yearly increase

1.5. Grounds for the proposal/initiative

1.5.1. Requirement(s) to be met in the short or long term

- Offer increased number of learning mobility opportunities both for students, young people, teachers, trainers and youth workers.

- Boost transnational cooperation between education, training and youth organisations in order to promote innovative methods of teaching and exchange of good practices.

- Strengthen the international dimension of education through a reinforced cooperation with certain regions of the world, in particular the Union's neighbours.

- Support policy reform in Member States

- Support sport activities focusing on the fight against doping, violence and racism and fostering transnational activities.

1.5.2. Added value of Union involvement

As the Union Budget Review has highlighted, the "Union budget should be used to finance Union public goods, actions that Member States and regions cannot finance themselves, or where it can secure better results". Interim evaluations of current programmes dealing with education, training and youth (mainly Lifelong Learning programme and Youth in Action), have demonstrated that the main European added value of the programme is derived from the transnational as well as the innovative character of the activities undertaken and of the products and partnerships it helps to develop. Encouraging successful cooperation between Member States’ education, training and youth systems would help to identify and implement policies and practices that work and encourage learning from each other.

The legal proposal respects the principle of subsidiarity as the tasks for adopting incentive measure in the field concerned are set out in the Treaty (articles 165 and 166 of TUE). The policies are implemented by fully respecting the responsibility of the Member States in particular regarding the content of teaching and the organisation of national education systems as well as cultural and linguistic diversity, and in accordance with the principle of the indirect centralised management.

The Union instrument will be focused on the mobility of students and teachers, the development of exchanges of information and best practices, adaptation to the industrial changes through vocational training and retraining and facilitation of access to it.

1.5.3. Lessons learned from similar experiences in the past

In the field of education and culture, the existing Lifelong Learning programme has been the result of the integration of three previous programmes[33] into a single one. As stated in the LLP interim evaluation, this integration has been successful mainly in relation to the overall management thanks to considerable administrative simplification, as well as the dissemination of information to the target groups.

A further simplification is now expected from the integration of the LLP, with Youth in Action and various international cooperation programmes. Indeed, they already share similar management structures (national Agencies, Executive agency) and they cover very similar types of actions (mainly mobility and cooperation projects).

Regarding the policy content, the evaluations show that the current Community programmes to promote transnational formal and non-formal learning mobility and cooperation, both within the Union and internationally, have already achieved significant systemic impact, well beyond the benefits to the individuals concerned.

Evaluations consistently show that the inherent complexity of the remaining fragmentation of the current Lifelong Learning Programme (LLP) into 6 sub-programmes, more than 50 objectives and over 60 actions, is too complex; it entails the risk of overlaps, hampers the development of a coherent lifelong learning approach, and limits the scope for efficiency gains and cost-effectiveness. Some current actions lack the critical mass required for long-lasting impact. In addition, the similarities between the general objectives and delivery mechanisms of the Life Long Learning sub-programmes and of Youth in Action, both focused on mobility, cooperation and human capital, must be fully exploited particularly as concerns the management and implementation of the Programme.

The LLP mid-term evaluation suggests that a single Programme would have the potential to increase coherence between the various funding possibilities offered to the beneficiaries and strengthen the lifelong learning approach by linking up all Programmes dealing with formal and non-formal learning at all stages of the education and training spectrum. It will broaden the scope for structured partnerships, both between different sectors of education and with the world of work and other relevant actors. At management level, economies of scale can be significant if actions of a similar nature have similar implementing rules and procedures, simplifying both for beneficiaries and for management bodies at Union and national levels. The Programme will also provide flexibility and incentives, so that budget allocation between actions, beneficiaries and countries better reflects performance and potential impact.

The same applies to international cooperation in higher education, also marked by the fragmentation of Union instruments, making it difficult for students and institutions to access the different opportunities and for the Union to be visible internationally. Similar programmes have different objectives, scope, operational modalities, and calendar, and do not easily interact with each other; the lack of predictability and the stop-go annual funding cycle of certain actions makes it difficult for higher education institutions to engage in long-term cooperation.

1.5.4. Coherence and possible synergy with other relevant instruments

Erasmus for all is not the only Union programme involved in education and youth fields. Structural Funds and the future Horizon 2020 Research and Innovation Programme are also strongly committed to Union 2020 strategy and its related headlines targets on higher education and early school leaving in particular. The synergy between the instruments will be ensured through a clear distinction in the types of investments/ target groups supported: education infrastructure will be supported by ERDF, people on labour market training and adult learners' mobility by ESF, researchers' mobility by Horizon 2020. Furthermore, Erasmus for all supports only transnational projects, whereas focus of structural funds is within a national or regional dimension.

The ambition is to allow members States to test and experiment tools and methods resulting from transnational cooperation through Erasmus for all and then to implement them on their territory through structural funds.

Complementarity with Horizon 2020 will be of high relevance for Higher Education, including its international dimension where excellence and research in universities will be reinforced.

1.6. Duration and financial impact

x Proposal/initiative of limited duration

– x Proposal/initiative in effect from 01/01/2014 to 31/12/2020

– x Financial impact from 2014 to 2025

¨ Proposal/initiative of unlimited duration

– Implementation with a start-up period from YYYY to YYYY,

– followed by full-scale operation.

1.7. Management mode(s) envisaged[34]

x Centralised direct management by the Commission

x Centralised indirect management with the delegation of implementation tasks to:

– x executive agencies

– ¨ bodies set up by the Communities[35]

– x national public-sector bodies/bodies with public-service mission

– ¨ persons entrusted with the implementation of specific actions pursuant to Title V of the Treaty on European Union and identified in the relevant basic act within the meaning of Article 49 of the Financial Regulation

¨ Shared management