EUROPEAN COMMISSION Brussels, 29.6.2022 COM(2022) 325 final 2022/0208(COD) Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 1303/2013 and Regulation (EU) 2021/1060 as regards additional flexibility to address the consequences of the military aggression of the Russian Federation

FAST (Flexible Assistance for Territories) - CARE



EXPLANATORY MEMORANDUM 1.CONTEXT OF THE PROPOSAL •Reasons for and objectives of the proposal The Russian war of aggression against Ukraine has brought a series of unexpected challenges for the European Union just when the Union and its Member States have been engaged in the recovery of our economies and societies after the COVID-19 pandemic. Since Russia’s unprovoked invasion of Ukraine on 24 February, the Union has received over 6.2 million Ukrainian nationals fleeing Russian aggression. The EU has reacted rapidly, supporting Member States and regions in managing this arrival of people by mobilising all available funding. However, with the rising number of arrivals, it is clear that further action is required. The special meeting of the European Council in May 2022 invited the Commission to “present new initiatives … within the Multiannual Financial Framework” to support the effort of providing protection to millions of refugees fleeing the war in Ukraine. In addition to providing support to Member States in the context of the inflow of displaced persons, the Commission has also been monitoring closely the on-going impact of Russia’s unprovoked invasion of Ukraine on the implementation of cohesion policy in particular. The consequences on infrastructure projects have been especially noted, both in terms of the availability and costs of raw materials and the availability of labour force. The European Parliament, the Council and regions have all raised concerns about the effect these issues may have on finalising the implementation of the 2014-2020 programmes and ensuring the start up of the new 2021-2027 programmes. Since 24 February, the Commission has already tabled a number of proposals, under Cohesion’s Action for Refugees in Europe (CARE), to ensure that all the funding available under the 2014-2020 cohesion policy and European Fund for the Most Deprived programmes are speedily mobilised to address the immediate challenges faced by the Member States and several of their eastern regions in particular, notably as regards those fleeing Russian aggression. These amendments have secured the possibility to mobilise available funding to address the immediate consequences of the Russian war of aggression against Ukraine, while allowing Member States to continue their efforts to ensure a green, digital and resilient recovery of their economies from the crisis resulting from the COVID-19 pandemic. The possibility to use the European Regional Development Fund (ERDF) and the European Social Fund (ESF) for operations addressing the migratory challenges resulting from the military aggression by Russia under the rules of the other fund enables the use of available resources for existing needs, without the need for a transfer. Furthermore, these operations are made eligible as from the date of the invasion, to allow support for all related needs. Moreover, a new unit cost has been introduced and reporting arrangements on participants have been simplified to reduce the administrative burden for both beneficiaries and Member State administrations in the context of addressing migratory challenges. Finally, the possibility to make use of up to 100% co-financing was extended for these measures also to the accounting year ending on 30 June 2022 in order to contribute to alleviating the burden on Member States’ public finances, and the substantial increase of pre-financing from REACT-EU resources provided Member States with liquidity needed to cover the most pressing needs. The consequences of the Russian military aggression have grown in scope and its impact has expanded. As a result, Member States are facing continuous substantial inflows of persons fleeing the Russian aggression. At the same time, some Member States are facing labour shortages and a scarcity of input materials in certain sectors. This situation comes on top of the consequences of the COVID-19 pandemic, notably the disruption of value chains, which challenges public budgets that were focused on the recovery of the economy, but also risks delaying investments, especially in infrastructure. While the measures already adopted have played a major role in supporting Member States and regions addressing the immediate effects of the war, it is clear that the evolving situation calls for additional action. In particular, increased flexibility will help optimise the use of the remaining 2014-2020 resources and allow a smoother phasing of delayed projects between 2014-2020 and 2021-2027 programmes. Consequently, further flexibility to allow quicker and more complete support from the Funds should be introduced to alleviate the burden on national budgets and facilitate the implementation of operations addressing both migratory challenges, as well as market disruptions of key economic sectors. For operations addressing migratory challenges resulting from the military aggression by the Russian Federation, it is therefore appropriate, as part of that more complete support and as an exceptional measure, without prejudice to the rules that should apply under regular circumstances, to derogate from the requirements linked to the location of the operation within a given Member State, given that the persons fleeing the war may move location more than once. In addition, given the continuation of the Russian aggression, an extension in time and increase of the newly established unit cost allowed to cover the basic needs and support of persons granted temporary protection or other adequate protection under national law in accordance with Council Implementing Decision (EU) 2022/382 and Council Directive 2001/55/EC in all Member States is justified. Furthermore, it is also proposed to allow the remaining resources from the 2014-2020 Cohesion Fund to support operations falling within the scope of either the ERDF or the ESF, in accordance with the rules applicable to those Funds. This implies the extension to the Cohesion Fund of the flexibility for the use of ERDF and ESF resources introduced with Regulation (EU) 2022/562 of the European Parliament and of the Council. Similarly, given that the eligibility for operations addressing the migratory challenges as a result of the military aggression by Russia was set as of 24 February 2022, the possibility to declare expenditure for such operations also when they are already physically completed or fully implemented should be made possible. These possibilities should also be extended to the European Maritime and Fisheries Fund (EMFF) as a result of the consequences of the war on the fishery and aquaculture sector. In the same spirit and with the intention of alleviating the administrative burden on Member States that are constantly adjusting to the evolving needs, transfers between thematic objectives within a priority and within a Fund and category of region should be made possible without the need for a decision of the Commission amending the programme. In addition, it is proposed to increase the ceiling of the flexibility between priorities for calculating the final balance of the contribution from the Funds. Moreover, for priorities promoting the socio-economic integration of third country nationals, including those dedicated to operations addressing migratory challenges as a result of the military aggression by the Russian Federation, the possibility of a co-financing rate up to 100% should be established in both programming periods, in order to support Member States in addressing the needs of displaced people both now and in the future. To reflect the easier conditions for phasing of projects between programming periods, it is also necessary to introduce targeted flexibilities for the 2021-2027 programming period. In order to assist all Member States in addressing the impact of the war with their 2021-2027 programmes, support from the ERDF, ESF+ and Cohesion Fund under the Investment for jobs and growth goal should be mobilised quickly by increasing the rate of pre-financing. In addition, the co-financing rate of up to 100% should be introduced for priorities promoting the socio-economic integration of third country nationals from the 2021-2027 programmes until mid-2024 and should be reviewed on the basis of how it has been used. Finally, the ceiling for the possibility to phase operations from the 2014-2020 programmes to those of the 2021-2027 programming period should be lowered to enlarge this possibility to more operations facing delays. Moreover, the second phase of operations under 2021-2027 programmes should be made eligible in accordance with 2014-2020 rules and managing authorities should be given the possibility to grant support to such operations directly, provided that a limited number of key conditions are met. Such phasing flexibility will not affect Member States’ obligations to comply with thematic concentration requirements and climate contribution targets.

•Consistency with existing policy provisions in the policy area The proposal is consistent with the overall legal framework established for the European Structural and Investment (ESI) Funds and cohesion policy and is limited to targeted and exceptional amendments of Regulations (EU) No 1303/2013 and (EU) 2021/1060. The proposal also complements the preceding amendments to Regulation (EU) No 1303/2013 via the amending regulations of 6 April 2022 and of 12 April 2022 as well as all other measures aimed at addressing the current unprecedented situation. •Consistency with other Union policies The proposal is limited to targeted and exceptional amendments of Regulations (EU) No 1303/2013 and (EU) 2021/1060 and maintains consistency with other Union policies. 2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY •Legal basis The proposal is based on Article 177 of the Treaty on the Functioning of the European Union. •Subsidiarity (for non-exclusive competence) The proposal amends existing EU legislation and aims to facilitate the use and increase the flexibility in implementation of cohesion policy resources by Member States and regions to support measures addressing migratory challenges as a result of the military aggression by Russia both in the 2014-2020 and in the 2021-2027 programmes. Addressing such challenges cannot be sufficiently achieved by the Member States alone and can be better achieved at Union level. •Proportionality The proposal is limited to what is needed and targeted at ensuring that all available resources under cohesion policy can support measures to address migratory challenges as a result of the military aggression by Russia. The proposed flexibilities do not go beyond what is necessary to make full use of resources under the 2014-2020 ESI Fund programmes and to allow for smoother phasing of operations to the 2021-2027 programmes. •Choice of the instrument A Regulation amending existing Regulations is the appropriate instrument to facilitate the use of cohesion policy and resources to support measures to address migratory challenges as a result of the military aggression by Russia and to extend the possibility of phasing operations of a lower total cost, made necessary by these unprecedented circumstances. 3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS •Ex-post evaluations/fitness checks of existing legislation N/A •Stakeholder consultations The proposal follows high level exchanges with other institutions and Member States. A public consultation is not required given that there is no need for an impact assessment. •Collection and use of expertise N/A

•Impact assessment An impact assessment has been carried out to prepare the proposal for Regulations (EU) No 1303/2013 and (EU) 2021/1060. This current targeted change to respond to a critical situation does not require a separate impact assessment. •Regulatory fitness and simplification N/A •Fundamental rights N/A 4.BUDGETARY IMPLICATIONS The proposal concerns cohesion policy programmes from both the 2014-2020 period and the 2021-2027 period and does not modify existing budgetary commitments. For the 2021-2027 period, it increases the level of pre-financing for programmes receiving support from the ERDF, the ESF+ and the Cohesion Fund under the Investment for the growth and jobs goal in 2022 and 2023. This will result in a frontloading of payment appropriations to 2022 and 2023 and is budgetary neutral over the 2021-2027 period. The additional pre-financing of EUR 1.74 billion for 2023 was not envisaged in the draft budget. The Commission will therefore consider proposing to cover the additional payment needs through an amending letter to the 2023 draft budget taking into account the revised Member States forecasts. The proposed modification does not require changes in the Multiannual Financial Framework annual ceilings for commitments and payments as per Annex I to Council Regulation (EU, Euratom) 2020/2093, and does not imply changes to the overall payment needs over either programming period. The Commission will carefully monitor the impact of the proposed modification on payment appropriations in 2022 and 2023, taking into account the overall implementation of the budget, revised Member State forecasts, as well as any possible emerging needs or priorities. 5.OTHER ELEMENTS •Implementation plans and monitoring, evaluation and reporting arrangements The implementation of the measures will be monitored and reported upon in the framework of the general reporting mechanisms established in Regulations (EU) No 1303/2013 and (EU) 2021/1060. •Explanatory documents (for directives) N/A •Detailed explanation of the specific provisions of the proposal It is proposed to amend Regulations (EU) No 1303/2013 and (EU) 2021/1060 in order to: ·Derogate from the location requirements within a given Member State for operations addressing the migratory challenges as a result of the military aggression by Russia, as people fleeing the war may move location more than once (amendment of Article 70 of Regulation (EU) No 1303/2013);

·Introduce the possibility to declare expenditure for such operations that are already physically completed or fully implemented (amendment of Article 65 of Regulation (EU) No 1303/2013); ·With a notification to the Commission of the revised financial tables approved by the monitoring committee and without a decision of the Commission amending the programme, allow for the application of a co-financing rate of up to 100% for a separate priority axis that has been established for promoting the socio-economic integration of third country nationals, including those dedicated to operations addressing migratory challenges as a result of the military aggression by the Russian Federation (Article 120, new paragraph (9) of Regulation (EU) No 1303/2013); ·Introduce additional flexibility between the Funds, specifically allowing the use of 2014-2020 Cohesion Fund resources for operations addressing the migratory challenges as a result of the military aggression by Russia and under the scope and Fund-specific rules of the ERDF and the ESF, as long as a minimum financial allocation of 30% of the budget of the priority axis is granted to beneficiaries that are local authorities and civil society organisations operating in local communities in order to ensure that these types of beneficiaries receive an appropriate share of such resources given their active role in actions to welcome and integrate refugees (amendment of Article 98(4) of Regulation (EU) No 1303/2013); ·Allow for the use of informed estimates limited to the total number of supported persons and the number of children under 18 years of age when data on participants is required to be reported under the separate priority axis supporting operations addressing migratory challenges as a result of the military aggression by the Russian Federation (amendment of Article 98(4) of Regulation (EU) No 1303/2013); ·Extend the recently established unit cost to support measures to address migratory challenges as a result of the military aggression by the Russian Federation to EUR 100 per week for each full week or partial week that the person is in the Member State concerned, for a maximum of 26 weeks in total from the date of arrival of the person in the Union (amendment of Article 68c of Regulation (EU) No 1303/2013); ·Increase the flexibility for payments of the final balance for each priority per Fund and per category of regions in the final accounting year from 10% to 15% (amendment of Article 130(3) of Regulation (EU) No 1303/2013); ·Allow for transfers in programmes of allocation between thematic objectives within the same priority and the same Fund and category of region without a decision of the Commission amending the programme (amendment of Articles 30 and 96(10) of Regulation (EU) No 1303/2013); ·Increase the rate of pre-financing for progammes from the ERDF, ESF+ and Cohesion Fund under the Investment for the jobs and growth goal by 0.5% in 2022 and 0.5% in 2023 of the total support from the Funds set out in the decision approving the programme in all Member States (amendment of Article 90(2) of Regulation (EU) 2021/1060); ·Allow for the application of a co-financing rate of up to 100% until 30 June 2024 for a separate priority established within a programme to support operations promoting the socio-economic integration of third country nationals. At least 30% of the support within the priority should be granted to beneficiaries that are local authorities and civil society organisations operating in local communities in order to ensure that these types of beneficiaries receive an appropriate share of such resources given their active role in actions to welcome and integrate refugees. The total amount programmed under such priorities in a Member State cannot exceed 5% of the initial national allocation of that Member State from the ERDF and the ESF+ combined. The co-financing rate of up to 100% will be reviewed by 30 June 2024 (amendment of Article 112 of Regulation (EU) 2021/1060); ·Deem eligible for support also under the 2021-2027 programmes operations with a total cost exceeding EUR 1 000 000 that were selected for support from the 2014-2020 programmes and started before 29 June 2022, and allow for direct granting by the managing authority, provided that a limited number of key conditions are met (new Article 118a of Regulation (EU) 2021/1060); ·Add dedicated fields of intervention to cover phased operations that would otherwise not be eligible for support in 2021-2027 (amendment of Table 1 of Annex I to Regulation (EU) 2021/1060). 2022/0208 (COD) Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 1303/2013 and Regulation (EU) 2021/1060 as regards additional flexibility to address the consequences of the military aggression of the Russian Federation

FAST (Flexible Assistance for Territories) - CARE THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 177 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,

Having regard to the opinion of the Committee of the Regions, Acting in accordance with the ordinary legislative procedure, Whereas: (1)Member States, and the central and eastern regions of the European Union in particular, have been severely affected by the consequences of the military aggression of the Russian Federation against Ukraine, at a time when Member States’ economies are still recovering from the impact of the COVID-19 pandemic. At the same time as facing a continuous inflow of persons fleeing Russian aggression, many Member States are also affected by shortages of labour, supply chain difficulties and rising prices and energy costs. On the one hand, this creates challenges for public budgets and, on the other, delays the implementation of investments. This has created an exceptional situation which needs to be addressed with specific, well-targeted measures, in order not to require changes in the Multiannual Financial Framework annual ceilings for commitments and payments as per Annex I to Council Regulation (EU, Euratom) 2020/2093, and to avoid undermining the ongoing green, digital and resilient recovery of the economy. (2)In order to alleviate the increasing burden on national budgets, Regulation (EU) 2022/562 of the European Parliament and of the Council made a number of targeted amendments to Regulations (EU) No 1303/2013 and (EU) No 223/2014 of the European Parliament and of the Council in order to make it easier for Member States to use their remaining European Regional Development Fund (the ‘ERDF’), the European Social Fund (the ‘ESF’) and the Fund for European Aid to the Most Deprived (the ‘FEAD’) allocations under the 2014-2020 multiannual financial framework, as well as to use REACT-EU resources, to address the migratory challenges resulting from the military aggression by the Russian Federation as effectively and as rapidly as possible. (3)In addition, Regulation (EU) 2022/613 of the European Parliament and of the Council provided additional possibilities to mobilise resources quickly to offset the immediate budgetary costs borne by Member States and established a unit cost to facilitate the financing of basic needs and support of persons granted temporary protection. (4)Additional exceptional arrangements to enable Member States to concentrate on the necessary response to the unprecedented socio-economic situation should nevertheless be provided to Member States, given the extended nature of the Russian invasion, especially with regard to operations addressing the migratory challenges as a result of the military aggression by the Russian Federation. (5)Given the additional strain on public budgets caused by the military aggression by the Russian Federation, the flexibility regarding the use of the ERDF and the ESF provided in Article 98(4) of Regulation (EU) No 1303/2013 for such operations should be extended to also cover the Cohesion Fund so that its resources can also be used to support operations falling within the scope of the ERDF or the ESF in accordance with the rules applicable to those Funds. In addition, it is appropriate to extend the light monitoring requirements set out in Article 98(4) of Regulation (EU) No 1303/2013 to operations supported by the ESF addressing migratory challenges, where these operations are programmed in a priority axis only addressing this challenge. Furthermore, the possibility should be introduced that priorities promoting the socio-economic integration of third country nationals, including those dedicated to operations addressing migratory challenges resulting from the Russian aggression, benefit from a co-financing rate of up to 100% in both programming periods, in order to support Member States in addressing displaced peoples both now and in the future. In the same vein, the amount for the unit cost to facilitate the financing of basic needs and the support of refugees should be increased and its application in time extended. (6)In addition, the setting of the start of the eligibility date on 24 February 2022 for operations addressing migratory challenges as a result of the military aggression by the Russian Federation has not proved sufficient to ensure that all relevant operations addressing these challenges could be supported by the Funds. It is therefore appropriate to exceptionally allow for the selection of such operations prior to the approval of a related programme amendment and for the eligibility of expenditure for such operations which are physically completed or fully implemented, also extending these flexibilities to operations supported by the EMFF addressing the consequences on the fishery and aquaculture sector resulting from the Russian aggression. Furthermore, taking into account the limited funding available in the regions most affected, it should be possible to support such operations beyond the limits of the programme area within a given Member State, given that the situation with persons fleeing Russian aggression and moving within and across Member States poses a challenge to the economic, social and territorial cohesion of the Union as a whole. Such operations should therefore be eligible irrespective of where they are implemented within a given Member State as their location is ultimately not a decisive criterion when addressing the immediate needs. (7)Moreover, given the high level of burden for addressing migratory challenges as a result of the military aggression by the Russian Federation that has fallen on local authorities and civil society organisations operating in local communities, a minimum level of support of 30% should be set aside for such bodies in the context of the resources being used to support operations within the scope of the ERDF or the ESF in accordance with the first and second subparagraphs of Article 98(4) of Regulation (EU) No 1303/2013. (8)With a view to alleviating the administrative burden for Member States to take account of the evolving needs and compliance with the financial allocations in an operational programme, a general measure removing the need for a formal amendment of an operational programme under the 2014-2020 programming period should be provided to allow the transfers between thematic objectives within a priority of the same Fund and category of region. (9)Lastly, in order to optimise the use of the 2014-2020 allocations in the context of the closure of programmes under the 2014-2020 programming period, the ceiling of the flexibility between priorities for calculating the final balance of the contribution from the Funds should be raised. (10)Certain flexibilities to address the unprecedented situation should also be provided for in the legal framework governing programmes under the 2021-2027 programming period. Again with a view to alleviating the burden on national budgets, pre-financing payments for programmes under the Investment for jobs and growth goal should be increased. Furthermore, given the challenges posed by displacements of people and the integrated responses required by Member States, where a Member State dedicates a priority under one of its 2021-2027 cohesion programmes to supporting operations promoting the socio-economic integration of third country nationals, a co-financing rate of up to 100% for that priority should be possible until 30 June 2024, provided an appropriate level of support is directed to local authorities and civil society organisations operating in local communities and that the total amount programmed under such priorities in a Member State does not exceed 5% of the initial national allocation of that Member State from the ERDF and the ESF+ combined. This is without prejudice to the possibility for Member States to programme additional amounts for such priorities with regular co-financing rates. Also, taking into account disruptions to the end of the 2014-2020 programming period caused by Russia’s military aggression, on top of the long-lasting consequences of the pandemic on project implementation and continuing disruptions of value chains, additional flexibility should also be provided to enable the direct granting of support and completion of operations for which implementation had started in accordance with the 2014-2020 legislative framework before the date of this legislative proposal, even where such operations would not fall within the scope of the corresponding Fund concerned under the 2021-2027 programming period, with the exception of cases where the Funds were used under the first or second subparagraphs of Article 98(4) of Regulation (EU) No 1303/2013. To ensure that such operations can be attributed to types of interventions, Annex I to Regulation (EU) 2021/1060 of the European Parliament and of the Council should be adjusted accordingly. Support for such operations should not affect Member States’ obligations to comply with thematic concentration requirements and climate contribution targets. (11)Since the objective of this Regulation, namely to assist Member States in addressing the challenges created by the exceptionally high number of arrivals of people fleeing the military aggression of the Russian Federation against Ukraine and to support Member States’ continued efforts to move towards a resilient recovery of the economy from the COVID-19 pandemic,can, by reason of the scale and effects of the proposed action, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union (TEU). In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary to achieve those objectives. (12)Regulation (EU) No 1303/2013 and Regulation (EU) 2021/1060 should therefore be respectively amended accordingly. (13)In view of the urgency of providing rapid relief to public budgets with a view to preserving Member States’ capacity to support the recovery of economies, it is considered to be appropriate to invoke the exception to the 8-week period provided for in Article 4 of Protocol No 1 on the role of national Parliaments in the European Union, annexed to the TEU, to the Treaty on the Functioning of the European Union and to the Treaty establishing the European Atomic Energy Community. (14)In view of the need to provide rapid relief to public budgets with a view to preserving Member States’ capacity to sustain the economic recovery process as well as to enable the speedy programming of the phasing of operations to the 2021-2027 programming period, this Regulation should enter into force as a matter of urgency on the day following that of its publication in the Official Journal of the European Union, HAVE ADOPTED THIS REGULATION: Article 1 Amendments to Regulation (EU) No 1303/2013

Regulation (EU) No 1303/2013 is amended as follows: (1)in Article 30, the following paragraphs are added: “6. By way of derogation from paragraphs 1 and 2, for programmes supported by the ERDF, the ESF or the Cohesion Fund, the Member State may transfer financial allocations between different thematic objectives within the same priority of the same Fund and category of region of the same programme. Such transfers shall be considered to be not substantial and shall not require a decision of the Commission amending the programme. They shall however comply with all regulatory requirements and shall be approved by the monitoring committee in advance. The Member State shall notify the revised financial tables to the Commission. 7. By way of derogation from paragraphs 1 and 2, the application of a co-financing rate of up to 100% pursuant to Article 120(9) to a priority axis promoting the socio-economic integration of third country nationals that has been established within a programme, including those dedicated to operations addressing migratory challenges as a result of the military aggression by the Russian Federation shall not require a decision of the Commission amending the programme. The amendment shall be approved by the monitoring committee in advance. The Member State shall notify the revised financial tables to the Commission.”; (2)in Article 65, the following paragraph is inserted: “10a. Paragraph 6 shall not apply to operations addressing migratory challenges resulting from the military aggression by the Russian Federation. Paragraph 6 shall also not apply to operations supported by the EMFF addressing the consequences of that aggression on the fisheries and aquaculture sector. By way of derogation from Article 125(3), point (b), such operations may be selected for support by the ERDF, the ESF, the Cohesion Fund or the EMFF prior to the approval of the amended programme.”; (3)in Article 68c, the first subparagraph is replaced by the following: “For the implementation of operations addressing migratory challenges resulting from the military aggression by the Russian Federation, Member States may include in the expenditure declared in payment applications a unit cost linked to the basic needs and support of persons granted temporary protection or other adequate protection under national law in accordance with Council Implementing Decision (EU) 2022/382 and Council Directive 2001/55/EC. That unit cost shall be EUR 100 per week for each full week or partial week that the person is in the Member State concerned. The unit cost may be used for a maximum of 26 weeks in total, starting from the date of arrival of the person in the Union.”; (4)in Article 70(2), the following subparagraph is added: “Where operations, receiving support from the ERDF, the ESF or the Cohesion Fund addressing migratory challenges resulting from the military aggression by the Russian Federation are implemented outside the programme area but within the Member State, only point (d) of the first subparagraph shall apply.”; (5)Article 70(4) is replaced by the following: “4. Paragraphs 1, 2 and 3 shall not apply to programmes under the European territorial cooperation goal. Paragraphs 2 and 3 shall not apply to operations supported by the ESF, with the exception of the last subparagraph of paragraph 2.” (6)the first subparagraph of Article 96(10) is replaced by the following: “10. Without prejudice to Article 30(5), 30(6) and 30(7), the Commission shall adopt a decision, by means of an implementing act, approving all the elements, including any of its future amendments, of the operational programme falling under this Article, except those falling under points (b)(vi) and (c)(v) and (e) of the first subparagraph of paragraph 2, paragraphs 4 and 5, points (a) and (c) of paragraph 6 and paragraph 7, which remain under the responsibility of the Member States.”; (7)Article 98(4) is amended as follows: (a) the following subparagraph is inserted after the first subparagraph: “In addition, such operations may also be financed by the Cohesion Fund on the basis of rules applicable either to the ERDF or the ESF.”;

(b) the following subparagraph is inserted after the second subparagraph: “Where a dedicated priority axis makes use of the possibility set out in the first or second subparagraphs, at least 30% of the financial allocation of that priority axis shall be attributed to operations which have beneficiaries that are local authorities and civil society organisations operating in local communities. Member States shall report on the fulfilment of this condition in the final implementation report required under Article 50(1) and Article 111. Where this condition is not fulfilled, reimbursement by the Commission under the priority axis concerned shall be reduced proportionately to ensure that this condition is respected when calculating the final balance to be paid to the programme.”; (c) the third subparagraph is replaced by the following subparagraph: “Where data on participants is required to be reported for operations under the priority axis referred to in the third subparagraph, that data shall be based on informed estimates and shall be limited to the total number of supported persons and the number of children under 18 years of age. The same reporting requirements shall also apply to other priority axes supported by the ESF which are only supporting operations addressing migratory challenges as a result of the military aggression by the Russian Federation.”; (8)in Article 120, the following paragraph is added: “9. A separate priority axis promoting the socio-economic integration of third country nationals with a co-financing rate of up to 100% may be established within an operational programme. Such a priority axis may be entirely dedicated to operations addressing migratory challenges as a result of the military aggression by the Russian Federation, including the dedicated priority axis referred to in the third subparagraph of Article 98(4).”; (9)in Article 130(3), the first subparagraph is replaced by the following: “By way of derogation from paragraph 2, the contribution from the Funds or the EMFF through payments of the final balance for each priority per Fund and per category of regions in the final accounting year shall not exceed, by more than 15 %, the contribution from the Funds or the EMFF for each priority per Fund and per category of regions as laid down in the decision of the Commission approving the operational programme.”; Article 2 Amendments to Regulation (EU) 2021/1060 Regulation (EU) 2021/1060 is amended as follows: (1) In Article 90(2), the following subparagraph is added: “An additional 0,5 % pre-financing shall be paid in 2022 immediately following the entry into force of this Regulation and an additional 0,5 % pre-financing shall be paid in 2023 for programmes supported by the ERDF, ESF+ or the Cohesion Fund under the Investment for jobs and growth goal. Where a programme is adopted after 31 December 2022, the 2022 instalment shall be paid in the year of adoption.”; (2)In Article 90(5), the first subparagraph is replaced with the following: “5. The amount paid as pre-financing for the years 2021 and 2022, with the exception of the additional pre-financing referred to in the last subparagraph of paragraph 2, shall be cleared from the Commission accounts each year. All other amounts paid as pre-financing shall be cleared from the Commission accounts no later than with the final accounting year in accordance with Article 100.”; (3)in Article 112, the following paragraph is added: “7. Where a separate priority is established within a programme to support operations promoting the socio-economic integration of third country nationals, a co-financing rate of up to 100% shall be applied to expenditure declared in payment applications until the end of the accounting year ending on 30 June 2024. After that date, the co-financing rate set out in the programme in accordance with the maximum co-financing rates set out in paragraphs 3 and 4 shall apply. The total amount programmed under such priorities in a Member State shall not exceed 5% of the initial national allocation from the ERDF and the ESF+ combined. The Commission shall review the co-financing rate by 30 June 2024. At least 30% of the financial allocation of such a separate priority shall be attributed to operations which have beneficiaries that are local authorities and civil society organisations operating in local communities. Member States shall report on the fulfilment of this condition in the final performance report required under Article 43. Where this condition is not fulfilled, reimbursement by the Commission under the priority concerned shall be reduced proportionately to ensure that this condition is respected when calculating the final balance to be paid to the programme.”;

(4)the following Article 118a is inserted: “Article 118a Conditions for operations subject to phased implementation that were selected for support before 29 June 2022 under Regulation (EU) No 1303/2013 1. Notwithstanding Article 118, an operation with a total cost exceeding EUR 1 000 000 that was selected for support and started before 29 June 2022 under Regulation (EU) No 1303/2013 and Fund-specific Regulations (EU) No 1301/2013 of the European Parliament and of the Council, Regulation (EU) No 1304/2013 of the European Parliament and of the Council, Regulation (EU) No 1300/2013 of the European Parliament and of the Council, Regulation (EU) No 1299/2013 of the European Parliament and of the Council and Regulation (EU) No 2014/508 of the European Parliament and of the Council, shall be deemed eligible for support under this Regulation and the corresponding Fund-specific Regulations in the 2021-2027 programming period. By way of derogation from Article 73(1) and (2), the managing authority may decide to grant support to such an operation under this Regulation directly, provided the following conditions are met: a)the operation has two phases identifiable from a financial point of view with separate audit trails; b)the operation falls within actions programmed under a relevant specific objective and is attributed to a type of intervention in accordance with Annex I; c)expenditure included in a payment application in relation to the first phase is not included under any payment applications in relation to the second phase; d)the Member State commits to complete during the programming period and render operational the second and final phase in the final implementation report, or in the context of the European Maritime and Fisheries Fund in the last annual implementation report, submitted in accordance with Article 141 of Regulation (EU) No 1303/2013. 2. This Article shall not apply to operations addressing migratory challenges resulting from the military aggression by the Russian Federation that are supported by making use of the possibility provided under the first and second subparagraphs of Article 98(4) of Regulation (EU) No 1303/2013.” (5)in Annex I, the following lines are added at the end of Table 1: “ INTERVENTION FIELD Coefficient for the calculation of support to climate change objectives Coefficient for the calculation of support to environmental objectives Other codes related to operations subject to phased implementation pursuant to Article 118a 183 Household waste management: landfill 0% 100% 184 Electricity storage and transmission 100% 40% 185 Natural gas: storage, transmission and distribution 0% 0% 186 Airports 0% 0% 187 Productive investment in large enterprises linked to the low-carbon economy 40% 0% ” Article 3 This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union. 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

LEGISLATIVE FINANCIAL STATEMENT 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 amending Regulation (EU) No 1303/2013 and Regulation (EU) 2021/1060 as regards additional flexibility to address the consequences of the military aggression of the Russian Federation

FAST (Flexible Assistance for Territories) - CARE 1.2.Policy area(s) concerned 05 Regional Development and Cohesion 07 Investing in People, Social Cohesion and Values 1.3.The proposal/initiative relates to: ◻ a new action ◻ a new action following a pilot project/preparatory action X the extension of an existing action ◻ a merger or redirection of one or more actions towards another/a new action 1.4.Objective(s) 1.4.1.General objective(s) N/A 1.4.2.Specific objective(s) N/A

1.4.3.Expected result(s) and impact Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. N/A 1.4.4.Indicators of performance Specify the indicators for monitoring progress and achievements. N/A

1.5.Grounds for the proposal/initiative 1.5.1.Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative N/A 1.5.2.Added value of Union involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this point 'added value of Union involvement' is the value resulting from Union intervention which is additional to the value that would have been otherwise created by Member States alone. N/A 1.5.3.Lessons learned from similar experiences in the past N/A 1.5.4.Compatibility with the Multiannual Financial Framework and possible synergies with other appropriate instruments N/A 1.5.5.Assessment of the different available financing options, including scope for redeployment N/A

1.6.Duration and financial impact of the proposal/initiative

X limited duration –X Financial impact from 1 January 2022 to 31 December 2027 on payment appropriations ◻ unlimited duration –Implementation with a start-up period from YYYY to YYYY, –followed by full-scale operation. 1.7.Management mode(s) planned ◻ Direct management by the Commission –◻ by its departments, including by its staff in the Union delegations; –◻ by the executive agencies X Shared management with the Member States ◻ Indirect management by entrusting budget implementation tasks to: –◻ third countries or the bodies they have designated; –◻ international organisations and their agencies (to be specified); –◻ the EIB and the European Investment Fund; –◻ bodies referred to in Articles 70 and 71 of the Financial Regulation; –◻ public law bodies; –◻ bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees; –◻ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide adequate financial guarantees; –◻ persons entrusted with the implementation of specific actions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act. –If more than one management mode is indicated, please provide details in the ‘Comments’ section.

Comments N/A



2.MANAGEMENT MEASURES 2.1.Monitoring and reporting rules Specify frequency and conditions. N/A 2.2.Management and control system(s) 2.2.1.Justification of the management mode(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed N/A 2.2.2.Information concerning the risks identified and the internal control system(s) set up to mitigate them N/A 2.2.3.Estimation and justification of the cost-effectiveness of the controls (ratio of "control costs ÷ value of the related funds managed"), and assessment of the expected levels of risk of error (at payment & at closure) N/A 2.3.Measures to prevent fraud and irregularities Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy. N/A ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE Heading(s) of the multiannual financial framework and expenditure budget line(s) affected Existing budget lines

In order of multiannual financial framework headings and budget lines. Heading of multiannual financial framework Budget line Type of

expenditure Contribution Number

Diff./Non-diff. from EFTA countries from candidate countries from third countries within the meaning of Article 21(2)(b) of the Financial Regulation 2a Economic, social and territorial cohesion 05.02.01 European Regional Development Fund (ERDF) Operational Expenditure 05.03.01 Cohesion Fund (CF) Operational Expenditure 07.02.01 European Social Fund Plus (ESF+) shared management strand – Operational Expenditure Diff. NO NO NO NO Estimated financial impact of the proposal on appropriations Summary of estimated impact on operational appropriations The proposed modification does not imply any changes in the Multiannual Financial Framework annual ceilings for commitments and payments as per Annex I to Regulation (EU) No 1311/2013, nor to the overall payment needs over the 2021-2027 period. The total annual breakdown of commitment appropriations for the European Regional Development Fund, the European Social Fund Plus and the Cohesion Fund remains unchanged. The proposal is expected to result in a frontloading of payment appropriations for the calendar years 2022 and 2023, as estimated below. The proposal/initiative does not require the use of appropriations of an administrative nature.



EUR million (to three decimal places) Heading of multiannual financial

framework Number 2a DG Regional and Urban Policy and DG Employment, Social Affairs and Inclusion 2021 2022 2023 2024 2025 2026 2027 TOTAL • Operational appropriations 05.02.01 European Regional Development Fund (ERDF) Operational Expenditure 05.03.01 Cohesion Fund (CF) Operational Expenditure 07.02.01 European Social Fund Plus (ESF+) shared management strand – Operational Expenditure Commitments (1a) 0.000 Payments (2a) 1 743.000 1 743.000 - -3 486.000 0.000 Budget line Commitments (1b) Payments (2b) Appropriations of an administrative nature financed from the envelope of specific programmes Budget line (3) TOTAL appropriations

for DG Regional and Urban Policy and DG Employment, Social Affairs and Inclusion Commitments =1a+1b +3 0.000 Payments =2a+2b +3 1 743.000 1 743.000 - -3 486.000 0.000







• TOTAL operational appropriations Commitments (4) Payments (5) • TOTAL appropriations of an administrative nature financed from the envelope for specific programmes (6) TOTAL appropriations

under HEADING 2a

of the multiannual financial framework Commitments =4+ 6 0.000 Payments =5+ 6 1 743.000 1 743.000 -3 486.000 0.000







Heading of multiannual financial

framework 7 ‘Administrative expenditure’ This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative Financial Statement (Annex V to the internal rules), which is uploaded to DECIDE for interservice consultation purposes.

EUR million (to three decimal places) Year

N Year

N+1 Year

N+2 Year

N+3 Enter as many years as necessary to show the duration of the impact (see point 1.6) TOTAL DG: <…….> • Human resources • Other administrative expenditure TOTAL DG <…….> Appropriations TOTAL appropriations

under HEADING 7

of the multiannual financial framework (Total commitments = Total payments) EUR million (to three decimal places) 2021 2022 2023 2024 2025 2026 2027 TOTAL TOTAL appropriations

under HEADINGS 1 to 7

of the multiannual financial framework Commitments 0.000 Payments 1 743.000 1 743.000 -3 486.000 0.000 Estimated output funded with operational appropriations The proposal/initiative requires the use of existing operational appropriations (no changes): Commitment appropriations in EUR million (to three decimal places) Indicate objectives and outputs ⇩ Year

N Year

N+1 Year

N+2 Year

N+3 Enter as many years as necessary to show the duration of the impact (see point 1.6) TOTAL OUTPUTS Type Average cost No Cost No Cost No Cost No Cost No Cost No Cost No Cost Total No Total cost SPECIFIC OBJECTIVE No 1… - Output - Output - Output Subtotal for specific objective No 1 SPECIFIC OBJECTIVE No 2 ... - Output Subtotal for specific objective No 2 TOTALS Summary of estimated impact on administrative appropriations X The proposal/initiative does not require the use of appropriations of an administrative nature ◻ The proposal/initiative requires the use of appropriations of an administrative nature, as explained below: EUR million (to three decimal places) Year

N Year

N+1 Year

N+2 Year

N+3 Enter as many years as necessary to show the duration of the impact (see point 1.6) TOTAL HEADING 7

of the multiannual financial framework Human resources Other administrative expenditure Subtotal HEADING 7

of the multiannual financial framework

Outside HEADING 7

of the multiannual financial framework Human resources Other expenditure

of an administrative nature Subtotal

outside HEADING 7

of the multiannual financial framework TOTAL The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints. Estimated requirements of human resources X The proposal/initiative does not require the use of human resources. ◻ The proposal/initiative requires the use of human resources, as explained below: Estimate to be expressed in full time equivalent units – Year

N Year

N+1 Year N+2 Year N+3 Enter as many years as necessary to show the duration of the impact (see point 1.6) • Establishment plan posts (officials and temporary staff) –20 01 02 01 (Headquarters and Commission’s Representation Offices) –20 01 02 03 (Delegations) –01 01 01 01 (Indirect research) – 01 01 01 11 (Direct research) –Other budget lines (specify) –• External staff (in Full Time Equivalent unit: FTE) – –20 02 01 (AC, END, INT from the ‘global envelope’) –20 02 03 (AC, AL, END, INT and JPD in the delegations) –XX 01 xx yy zz – –- at Headquarters – – – –- in Delegations – –01 01 01 02 (AC, END, INT - Indirect research) – 01 01 01 12 (AC, END, INT - Direct research) –Other budget lines (specify) –TOTAL XX is the policy area or budget title concerned. The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints. Description of tasks to be carried out: Officials and temporary staff External staff Compatibility with the current multiannual financial framework The proposal/initiative is compatible the current multiannual financial framework. The proposal/initiative: ◻ can be fully financed through redeployment within the relevant heading of the Multiannual Financial Framework (MFF). Explain what reprogramming is required, specifying the budget lines concerned and the corresponding amounts. Please provide an excel table in the case of major reprogramming. ◻ requires use of the unallocated margin under the relevant heading of the MFF and/or use of the special instruments as defined in the MFF Regulation.

Explain what is required, specifying the headings and budget lines concerned, the corresponding amounts, and the instruments proposed to be used. ◻ requires a revision of the MFF. Explain what is required, specifying the headings and budget lines concerned and the corresponding amounts. Third-party contributions The proposal/initiative: X does not provide for co-financing by third parties ◻ provides for the co-financing by third parties estimated below: Appropriations in EUR million (to three decimal places) Year

N Year

N+1 Year

N+2 Year

N+3 Enter as many years as necessary to show the duration of the impact (see point 1.6) Total Specify the co-financing body TOTAL appropriations co-financed







Estimated impact on revenue –X The proposal/initiative has no financial impact on revenue. –◻ The proposal/initiative has the following financial impact: ◻ on own resources ◻ on other revenue please indicate, if the revenue is assigned to expenditure lines ◻ EUR million (to three decimal places) Budget revenue line: Appropriations available for the current financial year Impact of the proposal/initiative Year

N Year

N+1 Year

N+2 Year

N+3 Enter as many years as necessary to show the duration of the impact (see point 1.6) Article …………. For assigned revenue, specify the budget expenditure line(s) affected.