Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund covered by the Common Strategic Framework and laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1083/2006
Date: 2011-10-06
Institutions: European Commission
Subjects: Cohesion Fund, EU regional policy, European Regional Development Fund, European Social Fund, FIFG, administrative reform, distribution of EU funding, economic and social cohesion, rural development

EUROPEAN COMMISSION 

Brussels, 6.10.2011 
COM(2011) 615 final 

2011/0276 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

laying down common provisions on the European Regional Development Fund, the 
European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural 
Development and the European Maritime and Fisheries Fund covered by the Common 
Strategic Framework and laying down general provisions on the European Regional 
Development Fund, the European Social Fund and the Cohesion Fund and repealing 
Regulation (EC) No 1083/2006 

{SEC(2011) 1141 final} 
{SEC(2011) 1142 final} 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

On 29 June 2011, the Commission adopted a proposal for the next multi-annual financial 
framework  for  the  period  2014-2020:  A  Budget  for  Europe  20201.  Simplification  of 
policy delivery, focus on results and increased use of conditionality are among the major 
hallmarks of the next set of programmes.  

Simplification  has  been  defined  as  a  key  objective  in  the  EU  Budget  Review 
Communication2, the Smart Regulation agenda3 and the aforesaid communication on the 
next  multi-annual  financial  framework.  Experience  suggests  that  in  the  current 
programming  period,  the  diversity  and  fragmentation  of  rules  governing  spending 
programmes are often perceived as unnecessarily complicated and difficult to implement 
and control. This imposes a heavy administrative burden on beneficiaries as well as on 
the  Commission  and  Member  States,  which  can  have  the  unintended  effect  of 
discouraging  participation,  increasing  error  rates  and  delaying  implementation.  This 
means that the potential benefits of EU programmes are not fully realised.  

The  European  Regional  Development  Fund  (ERDF),  the  European  Social  Fund  (ESF), 
the  Cohesion  Fund  (CF),  the  European  Agricultural  Fund  for  Rural  Development 
(EAFRD)  and  the  future  European  Maritime  and  Fisheries  Fund  (EMFF)  (hereinafter 
referred  to  as  the  'CSF  Funds')  pursue  complementary  policy  objectives  and  their 
management  is  shared  between  the  Member  States  and  the  Commission.  It  is  therefore 
important  to  maximise  the  effectiveness  of  all  structural  instruments  in  terms  of 
delivering  objectives  and  targets  set  in  programmes  and  optimise  synergies  and 
efficiency  of  the  different  instruments.  This  will  be  achieved  through  sound  policy, 
regulatory  and  institutional  framework  conditions  for  the  funds,  an  increased  focus  on 
results and monitoring progress towards objectives and targets agreed in programmes as 
well  as  the  harmonisation,  to  the  extent  possible,  of  implementation  rules  and  control 
requirements. 

Against  this  background,  this  Regulation  delivers  a  common  set  of  basic  rules.  It  is 
divided into two parts.  

The first part sets out a series of common provisions governing all structural instruments 
covered  by  the  Common  Strategic  Framework.  These  provisions  concern  the  general 
principles of support such as partnership, multi-level governance, equality between men 
and  women,  sustainability  and  compliance  with  applicable  EU  and  national  law.  The 
proposal  also  contains  the  common  elements  of  strategic  planning  and  programming, 
including  a  list  of  joint  thematic  objectives  derived  from  the  Europe  2020  Strategy, 
provisions  on  the  Common  Strategic  Framework  at  Union  level  and  on  Partnership 
Contracts  to  be  concluded  with  each  Member  State.  It  sets  out  a  common  approach  to 
reinforce  the  performance  orientation  of  the  cohesion  policy,  the  rural  development 
policy and the maritime and fisheries policy and therefore includes provisions concerning 

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COM(2011)500 final. 
COM(2010)700 final. 
COM(2010)543 final. 

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conditionalities  and  performance  review,  but  also  the  arrangements  for  monitoring, 
reporting  and  evaluation.  Common  provisions  concerning  the  implementation  of  CSF 
Funds  are  also  set  out  with  regard  to  eligibility  rules,  and  special  arrangements  are 
defined  for  financial  instruments  and  community  led  local  development.  Some 
management and control arrangements are also common for all CSF Funds.  

The second part includes specific provisions set out for the ERDF, the ESF and the CF. 
These  include  provisions  related  to  the  mission  and  goals  of  cohesion  policy,  the 
financial  framework,  specific  programming  and  reporting  arrangements,  major  projects 
and  joint  action  plans.  The  second  part  sets  out  the  requirements  on  management  and 
control  systems  under  cohesion  policy  and  elaborates  the  specific  arrangements  for 
control and financial management. 

At  the  same  time,  the  Commission  will  ensure  that  synergies  already  obtained  through 
simplification  and  harmonisation  of  the  first  pillar  (EAGF  –  European  Agricultural 
Guarantee Fund) and the second pillar (EAFRD) of the Common Agriculture Policy are 
preserved.  The  strong  link  between  the  EAGF  and  the  EAFRD  will  therefore  be 
maintained and the structures already in place in the Member States will be sustained. 

2. 

RESULTS  OF  CONSULTATIONS  WITH  THE  INTERESTED  PARTIES 
AND IMPACT ASSESSMENTS 

2.1. 

Consultations and expert advice 

The  Regulation  draws  on  extensive  consultations  with  stakeholders,  including  Member 
States,  regions,  social  and  economic  partners,  academic  experts  and  international 
institutions in the context of the preparation of the proposal for each structural fund for 
the 2014-2020 financial framework. The results of the ex post evaluations carried out on 
the 2000-2006 programmes; and a broad range of studies and expert advice were used as 
input.  

For the next cohesion policy framework, expert advice was provided by the High Level 
Group  reflecting  on  future  Cohesion  Policy,  with  10  meetings  held  between  2009  and 
2011,  an  informal  platform  established  to  support  the  work  of  the  Commission  in 
developing  the  future  directions  of  cohesion  policy  as  well  as  a  Task  Force  on 
Conditionality,  which  met  three  times  in  early  2011.  A  public  consultation  on  the 
conclusions  of  the  Fifth  Cohesion  Report  was  held  between  12  November  2010  and 
31 January 2011. A total of 444 contributions were received. A summary of the results 
was published on 13 May 20114.  

On the future of rural development, a public consultation was held between 23 November 
2010 and 25 January 2011 and an advisory committee with stakeholders was organised 
on  12  January  2011.5  Altogether,  517  contributions  were  received  by  the  Commission. 
Of  the  contributions  from  organisations,  44%  came  from  the  farming  and  processing 
local  authorities,  environmental 
sector  and  40%  from  national,  regional  and 
organisations, think-tanks and research institutes as well as, development organisations, 

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"Results  of  the  public  consultation  on  the  conclusions  of  the  fifth  report  on  economic,  social  and  territorial  cohesion 
Brussels", Commission Staff Working Paper, SEC(2011) 590 final, 13.5.2011. 
http://ec.europa.eu/agriculture/events/cap-towards-2020_en.htm 

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the trade sector, and consumer organisations. Other organisations (12%) participating in 
the consultation included health protection organisations, water management bodies and 
civil society representations. 

On  reform  of  the  common  fisheries  policy, a Green Paper was adopted in April 20096, 
followed by a public consultation. In addition to the public consultation, approximately 
200  meetings  with  Member  States,  the  Advisory  Committee  on  Fisheries  and 
Aquaculture (ACFA) and the Regional Advisory Councils (RACs), the fishing industry, 
the  processing  and  marketing  sector,  trade  unions,  NGOs,  and  the  research  community 
were  organized.  In  particular:  (i)  two  meetings  with  the  Member  States,  during  which 
future funding was discussed, took place in Gent (12-14 September 2010) and Noordwijk 
(9-11 March 2011); (ii) a dedicated seminar on the future European Fisheries Fund with 
the  participation  of  stakeholders  from  industry,  trade  unions  and  Member  States  was 
organised  on  13  April  2010,  in  Brussels;  (iii)  a  conference  on  the  future  of  local 
development in fisheries areas took place in Brussels (12-13 April 2011).  

A number of common conclusions can be drawn from the results of the different public 
consultations which confirmed the following: 

–  A majority of stakeholders called for continued financial support of these policies; 

–  EU support should focus on a number of priorities and the different policies should be 

aligned with the Europe 2020 Strategy; 

–  For  cohesion  policy  in  particular,  stakeholders  called  for  a  more  results-oriented 
approach  and  there  was  strong  support  for  a  more  transparent  and  simplified  set  of 
financial management procedures; 

A majority of stakeholders called for a more integrated approach or joined-up strategies 
with other EU policies and financial instruments. 

2.2. 

Impact assessment  

This proposal draws on three Impact Assessments: one carried out for the ERDF, the CF 
and  the  ESF  together;  and  one  each  for  the  EAFRD  and  for  the  EMFF.  These  impact 
assessments analysed issues including EU added value, performance and delivery of the 
policies, as well as simplification and harmonisation of rules. The options assessed in the 
impact  assessments  related  to  (i)  improving  the  capacity  of  the  policies  to  deliver 
European  added  value,  (ii)  increasing  the  performance  of  the  policies  and  (iii) 
simplification – reducing administrative costs and minimising the risk error. 

2.2.1.  Delivering European added value 

To  be  able  to  deliver  greater  European  added value, the  structural programmes need to 
both:  a)  concentrate  their  support  on  EU  priorities  and  b)  coordinate  with  other  EU 
policies  and  financial  instruments.  The  Europe  2020  Strategy  provides  a  clear  set  of 
common  objectives,  including  headline  targets  and  flagship  initiatives,  as  a  clear 
framework  for  identification  of  funding  priorities.  There  is  broad  consensus  among 
stakeholders  on  the  role  of  the  different  policies  (cohesion  policy,  rural  development 

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COM(2009)163 final. 

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policy  and  maritime  and  fisheries  policy)  in  contributing  to  the  achievement  of  the 
Europe 2020 Strategy7.  

As for concentration on EU priorities, the options assessed included a flexible approach 
to concentration by earmarking provisions; a more visible and comprehensive link with 
the Europe 2020 headline targets and the Integrated Guidelines, ensuring a critical mass 
for the ESF and, thirdly, concentration on EU priorities in less developed Member States 
only.  The  preferred  option  is  to  establish  a  strong  link  to  Europe  2020  targets  which 
would contribute most to reaching the headline targets. 

As  for  coordination  with  other  EU  policies  and  financial  instruments,  the  options 
examined  included  a  loose  alignment  based  on  non-binding  Community  Strategic 
Guidelines,  a  more  comprehensive  alignment  with  the  Europe  2020  objectives  through 
the Common Strategic Framework and Partnership Contract, and no alignment with other 
EU  policies  and  financial  instruments  beyond  formal  compliance.  Strategic  planning 
arrangements  which  include  the  Common  Strategic  Framework  at  Union  level  and 
Partnership  Contracts  at  national  level  are  considered  to  ensure  effective  coordination 
between Union policies and instruments.  

2.2.2. 

Increasing the performance of the policy 

The  effectiveness  of  the  different  structural  instruments  depends  on  sound  policy, 
regulatory and institutional frameworks. In many sectors, a combination of strategic and 
regulatory conditions and public investment is needed to  address bottlenecks to growth 
effectively.  The  options  examined  in  this  context  related  to:  a)  the  status  quo  (macro-
fiscal  conditionality  under  the  CF,  compliance  with  procedures  and  with  EU  sectoral 
legislation  and  strategic  frameworks,  albeit  unsystematically  applied,  no  provisions 
related to performance; b) ex ante conditionalities to be fulfilled prior to the adoption of 
the  programmes;  c)  ex  post  conditionalities  including  the  performance  framework  and 
performance  reserve;  d)  strengthened  macro-fiscal  conditionality;  and  e)  combined 
option.  The  preferred  option  was  the  combined  option  since  this  option  would  allow 
addressing the preconditions necessary for the effective use of the CSF Funds and would 
provide 
the 
implementation of programmes with the Union's economic governance.  

to  attain  predefined  objectives  and 

targets  and  align 

incentives 

2.2.3. 

Simplification - reducing administrative costs and minimising the risk error 

Sound,  effective  and  efficient  management  of  the  structural  instruments  requires 
appropriate, effective and transparent systems involving all the different administrations 
concerned. These systems need to ensure the selection of high quality operations and the 
effective implementation of these operations to achieve the objectives of the policy. The 
management  and  control  systems  must  also  ensure  the  prevention  and  detection  of 
irregularities,  including  fraud,  and  thus  reasonable  assurance  on  the  regularity  of 
expenditure. At the same time the delivery system should be as simple and streamlined as 
possible  to  ensure  efficient  implementation  and  the  reduction  of  administrative  burden 
for beneficiaries 

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Council  conclusions  on  the  Fifth  Report  on  economic,  social  and  territorial  cohesion,  3068th  General  Affairs  Council 
meeting, Brussels, 21 February 2011.  

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The  options  examined  for  cohesion  policy  included  different  reimbursement  options 
(based on real costs and simplified cost options), eGovernance and assurance. The main 
differences  between  the  options  relate  to  the  level  of  Commission  involvement  in  the 
assessment  of  management  and  control  systems,  to  the  availability  of  reimbursement 
options linked to results, and to the mechanisms for promoting eGovernance in the day to 
day  management  of  EU  funds.  A  proportional  approach  entailing  risk  based  control 
arrangements, the availability of a wide range of reimbursement options, and advanced 
eGovernance  at  the  level  of  Member  States  and  regions  is  the  preferred  option  since  it 
could  lead  to  a  significant  potential  reduction  in  the  cost  of  controls  and  a  decline  in 
workload and would also comply better with the subsidiarity principle. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

EU action is justified both on the grounds of the objectives laid out in Article 174 of the 
Treaty on the Functioning of the European Union (TFEU) and the subsidiarity principle. 
The  right  to  act  is  enshrined  in  Article  175  of  the  TFEU  which  explicitly  calls  on  the 
Union to implement this policy by means of Structural Funds, in conjunction with Article 
177,  which  defines  the  role  of  the  CF.  The  aims  of  the  ESF,  ERDF  and  the  CF  are 
defined  in  Articles  162,  176  and  177  of  the  TFEU  respectively.  The  actions  related  to 
agriculture and fisheries are justified by Articles 38 and 39 of the TFEU. 

Article 174 of the TFEU states that particular attention shall be paid to rural areas, areas 
affected  by  industrial  transition,  and  regions  which  suffer  from  severe  and  permanent 
natural  or  demographic  handicaps  such  as  the  northernmost  regions  with  very  low 
population density and island, cross-border and mountain regions. 

Article 349 of the TFEU states that specific measures shall be adopted to take account of 
the  structural  social  and  economic  situation  of  the  outermost  regions,  which  is 
compounded by certain specific features which severely restrain their development.  

4. 

BUDGETARY IMPLICATIONS 

The Commission's proposal for a multi-annual financial framework foresees an amount 
of  EUR  376  billion  for  economic,  social  and  territorial  cohesion  for  the  period  2014-
2020.  

Proposed budget 2014-2020 

EUR billion  

Less developed regions  
Transition regions  
More developed regions  
Territorial cooperation  
Cohesion Fund  
Extra  allocation  for  outermost  and  sparsely  populated 
regions  
Connecting  Europe  Facility  for  transport,  energy  and 
ICT  

*All figures in constant 2011 prices 

162,6 
38,9 
53,1 
11,7 
68,7 
0,926 

40 (with an additional EUR 10 billion 
ring  fenced 
the  Cohesion 
inside 
Fund) 

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The  Commission's  proposal  has  also  established,  with  the  aim  of  enhancing  the 
contribution of the CSF Funds in delivering on the headline targets of the Europe 2020 
Strategy, minimum shares  for the ESF for each category of regions. The application of 
the shares result in a minimum overall share for the ESF of 25% of the budget allocated 
to cohesion policy, i.e. EUR 84 billion. It is however important to note that the indicated 
minimum  ESF  allocation  includes  the  budget  for  a  forthcoming  Commission  proposal 
regarding food support for the most deprived persons. 

The  Commission's  proposal  for  the  financing  of  the  EAFRD  and  the  EMFF  will  be 
included in the Fund-specific regulations for each Fund. 

5. 

SUMMARY OF THE CONTENT OF THE REGULATION 

5.1. 

Common provisions governing all CSF Funds  

5.1.1.  General principles 

The general principles governing the support of all CSF Funds will include partnership 
and multi-level governance, compliance with applicable EU and national law, promotion 
of equality between men and women and sustainable development.  

Within  this  context,  for  the  ESF,  the  Commission  will  continue  to  be  assisted  by  the 
Committee  foreseen  in  Article  163  of  the  Treaty  and  composed  of  one  government 
representative, one representative of the workers' organisations and one representative of 
the employers' organisations from each Member State.  

5.1.2. 

Strategic approach 

In  order  to  maximise  the  impact  of  the  policy  in  delivering  European  priorities,  the 
Commission  proposes  to  reinforce  the  strategic  programming  process.  This  involves 
defining  a  list  of  thematic  objectives  in  the  Regulation  in  line  with  the  Europe  2020 
Strategy:  

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

strengthening research, technological development and innovation; 

enhancing  access  to  and  use  and  quality  of  information  and  communication 
technologies; 

enhancing  the  competitiveness  of  small  and  medium-sized  enterprises,  the 
agricultural sector (for the EAFRD) and fisheries and aquaculture sector (for the 
EMFF); 

supporting the shift towards a low-carbon economy in all sectors; 

promoting climate change adaptation, risk prevention and management; 

protecting the environment and promoting resource efficiency; 

promoting  sustainable  transport  and  removing  bottlenecks  in  key  network 
infrastructures; 

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(8) 

(9) 

promoting employment and supporting labour mobility; 

promoting social inclusion and combating poverty; 

(10) 

investing in education, skills and lifelong learning; 

(11) 

enhancing institutional capacity and an efficient public administration. 

The Common Strategic Framework will translate the objectives and targets of the Union 
priorities of smart, sustainable and inclusive growth into key actions for the ERDF, the 
CF, the ESF, the EAFRD and the EMFF which will ensure an integrated use of the CSF 
Funds to deliver common objectives.  

Partnership Contracts between the Commission and each Member State will set out the 
commitments of partners at national and regional level and the Commission. They will be 
linked  to  the  objectives  of  the  Europe  2020  Strategy  and  the  National  Reform 
Programmes.  They  will  set  out  an  integrated  approach  for  territorial  development 
supported  by  all  the  CSF  Funds  and  include  objectives  based  on  agreed  indicators, 
strategic investments and a number of conditionalities. They will contain commitments to 
give  yearly  account  of  progress  in  the  annual  reports  on  cohesion  policy,  on  rural 
development policy and in other public reporting.  

5.1.3.  Conditionalities and performance  

To reinforce performance, new conditionality provisions will be introduced to ensure that 
EU  funding  creates  strong  incentives  for  Member  States  to  deliver  Europe  2020 
objectives and targets. Conditionality will take the form of both ‘ex ante’ conditions that 
must  be  in  place  before  funds  are  disbursed  and  'ex  post'  conditions  that  will  make  the 
release of additional funds contingent on performance.  

The  rationale  for  strengthening  'ex  ante'  conditionality  for  these  funds  is  to  ensure  that 
the conditions necessary for their effective support are in place. Past experience suggests 
that the effectiveness of investments financed by the funds have in some instances been 
undermined  by  bottlenecks  in  policy,  regulatory  and  institutional  frameworks.  The 
concept of conditionality is not a new concept within the framework of cohesion policy. 
Over successive programming periods, a number of mechanisms have been introduced to 
maximise  the  effectiveness  of  the  interventions.  Some  are  linked  to  management  and 
control  disciplines  while  others  to  strategic  and  regulatory  frameworks  as  well  as 
administrative capacity. The experiences with the application of conditionalities however 
indicate variations across programmes. A more transparent and systematic application is 
therefore justified. 

'Ex  post'  conditionality  will  strengthen  the  focus  on  performance  and  the  attainment  of 
the Europe 2020 objectives. It will be based on the achievement of milestones related to 
targets for outputs and results linked to Europe 2020 objectives set for programmes in the 
partnership  contract.  5%  of  the  budget  of  the  relevant  funds  will  be  set  aside  and 
allocated,  during  a  mid-term  performance  review,  to  the  Member  States  whose 
programmes have met their milestones. In addition to the performance reserve, failure to 
achieve milestones may lead to the suspension of funds, and a serious underachievement 
in meeting targets for a programme may give rise to a cancellation of funds. 

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To ensure that the effectiveness of the funds is not undermined by unsound macro-fiscal 
policies, the Commission proposes to reinforce the rules governing the Funds on macro-
fiscal conditionality and align them with the new Stability and Growth Pact enforcement 
measures to be adopted as part of the Sixth Economic Governance Package. 

At  the  same  time,  a  higher  co-financing  rate  (by  10  percentage  points)  can  be  applied 
when  a  Member  State  is  receiving  financial  assistance  in  accordance  with  Articles  136 
and 143 of the TFEU, thus reducing the effort required from national budgets at a time of 
fiscal consolidation, while keeping the same overall level of EU funding. 

5.1.4.  Common management arrangements 

The proposal envisages a management and control system which is similar across shared 
management  instruments  and  is  based  on  common  principles.  A  system  of  national 
accreditation  is  put  in  place  to  emphasize  the  commitment  of  Member  States  to  sound 
financial management. The arrangements underpinning the assurance of the Commission 
with  regard  to  the  regularity  of  expenditure  have  been  harmonised  and  new  common 
elements  such  as  a  management  declaration  of  assurance  and  annual  clearance  of 
accounts have been introduced to reinforce assurance.  

5.1.5.  Community-led local development  

Member  States  will  have  the  possibility  to  use  common  processes  for  preparation, 
negotiation,  management  and  implementation,  and  will  be  encouraged  to  do  so  in 
particular where the need for improved coordination of human capital and infrastructure 
investments is greatest. 

The  CSF  Funds  need  to  address  multiple  development  needs  at  sub-regional  and  local 
level.  To  facilitate 
implementation  of  multi-dimensional  and  cross-sectoral 
interventions,  the  Commission  proposes  to  strengthen  community-led  initiatives, 
facilitate the implementation of integrated local development strategies and formation of 
local action groups, based on the experience of the LEADER approach. 

the 

5.1.6.  Financial instruments 

In  addition  to  grant  funding,  it  is  proposed  that  support  for  enterprises  and  projects 
expected  to  generate  substantial  financial  returns  will  be  delivered  primarily  through 
innovative financial instruments. 

While financial instruments will remain similar to those employed in 2007-2013, several 
elements of simplification should be emphasized. First, the Commission will offer ready 
made solutions through access to financial instruments set up at EU level and models for 
national  and  regional  funds  based  on  standard  terms  and  conditions  laid  down  by  the 
Commission. Second, the proposal represents a clear framework for the implementation 
of these instruments, and addresses the ambiguities which arose in the context the 2007-
2013  legislative  framework,  increasing  legal  certainty  for  all  parties.  Third,  financial 
instruments  can  in  the  future  be  used  for  all  types  of  investment  and  beneficiary 
representing  a  significant  extension  of  the  possibilities  to  use  these  innovative 
instruments.  

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5.1.7.  Monitoring and evaluation 

Common provisions for all CSF funds in the area of monitoring and evaluation include 
the  role  and  composition  of  the  monitoring  committee,  annual  implementation  reports, 
annual  review  meetings,  progress  reports  on  the  implementation  of  the  Partnership 
Contract, ex ante and ex post evaluations.  

5.1.8. 

Simplified and streamlined eligibility rules  

In  the  current  period,  many  beneficiaries  using  funds  from  different  Union  funding 
instruments  are  faced  with  different  eligibility  rules  which  increases  the  complexity  of 
management  and  thus  also  the  risk  of  errors.  Emphasis  has  therefore  been  placed  on 
measures to ensure that administrative costs are proportionate and that the administrative 
burden associated with the management of EU funds by beneficiaries is reduced. The aim 
is  to  harmonise,  to  the  extent  possible,  these  basic  rules  for  instruments  implemented 
under  shared  management,  in  order  to  reduce  the  multiplicity  of  rules  applied  on  the 
ground. Simplified costs options such as flat rates and lump sums provide the means for 
Member States to introduce performance-oriented management at the level of individual 
operations. 

Common  provisions  on  the  delivery  include  common  rules  on  eligible  expenditure,  the 
different  forms  of  financial  support,  simplified  costs,  and  durability  of  operations.  The 
proposal also envisages common principles for the management and control systems 

In  the  context  of  the  CAP,  the  current  rules  on  administrative  costs  and  the  control 
systems will be maintained and sustained.  

5.2. 

General provisions applicable to the ERDF, the ESF and the CF 

Part  Three  of  the  Regulation  defines  the  mission  and  goals  of  cohesion  policy,  the 
geographical  coverage  of  support,  financial  resources  and  principles  of  assistance, 
programming, major projects, joint action plans, territorial development, monitoring and 
evaluation,  information  and  communication,  eligibility  of  expenditure  and  management 
and control systems. 

5.2.1.  Geographical coverage of support 

This  includes  a  distinction  in  relation  to  less  developed,  transition  and  more  developed 
regions.  

Less  developed  regions:  In  accordance  with  the  TFEU,  supporting  the  less  developed 
regions will remain an important priority for cohesion policy. The catching up process of 
economically  and  socially  lagging  regions  will  require  long-term  sustained  efforts  in  a 
world  of  increasing  uncertainty.  This  category  concerns  those  regions  whose  GDP  per 
capita is less than 75 % of the average GDP of the EU-27. 

Transition regions: A new category of region – 'transition regions' – will be introduced 
to replace the current phasing-out and phasing-in system. This category will include all 
regions with a GDP per capita between 75% and 90% of the EU-27 average. 

More developed regions: While interventions in the less developed regions will remain 
the priority for cohesion policy, there are important challenges that concern all Member 
States such as global competition in the knowledge-based economy, the shift towards the 

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low  carbon  economy  and  social  polarisation  exacerbated  by  the  current  economic 
climate. This category concerns those regions whose GDP per capita is above 90% of the 
average GDP of the EU-27. 

All  regions  whose  GDP  per  capita  for  the  2007-2013  period  was  less  than  75%  of  the 
average of the  EU-25 for  the reference period but whose GDP per capita has grown to 
more than 75% of the EU-27 average will receive two thirds of their 2007-13 allocation. 

Minimum shares for the ESF will be established for each category of regions (25% for 
convergence regions, 40% for transition, and 52% for competiveness regions). 

The  CF  will  support  Member  States  whose  GNI  per  inhabitant  is  less  than  90%  of  the 
EU-27  average  in  making  investments  in  TEN-T  transport  networks  and  the 
environment. Part of the Cohesion Fund allocation (EUR 10 billion) will be ring-fenced 
to finance core transport networks under the Connecting Europe Facility 

Experience with the current financial framework shows that many Member States have 
difficulties  in  absorbing  large  volumes  of  EU  funds  over  a  limited  period  of  time. 
Furthermore,  the  fiscal  situation  in  some  Member  States  has  made  it  more  difficult  to 
release funds to provide national co-financing. In order to address the issue of absorption 
of funding the Commission is proposing a number of steps: 

– 

– 

– 

to fix at 2,5% of GDP the capping rates for cohesion allocations; 

capping  co-financing  rates  at  the  level  of  each  priority  axis  within  the 
operational  programmes  at  85%  in  less  developed  regions  (or  in  certain  cases, 
80%  and  75%)  and  outermost  regions,  60%  in  transition  regions  and  50%  in 
more developed regions; 

to  include  certain  conditions  in  the  partnership  contracts  regarding  the 
improvement of administrative capacity. 

5.2.2.  Reinforced strategic programming geared towards results 

The  Commission  proposes  a  more  results-oriented  programming  process  to  ensure  that 
cohesion policy programmes have a clear intervention logic, are oriented towards results, 
and include the appropriate provisions for an integrated approach to development and the 
effective  implementation  of  the  Funds.  In  particular,  the  Commission  proposes  to 
introduce the Joint Action Plans, which are operations comprising a group of projects as 
part of an operational programme, with specific objectives, result indicators and outputs 
agreed  between  the  Member  State  and  the  Commission.  They  offer  a  simplified 
management and control system geared towards performance. 

5.2.3. 

Streamlining financial management and control 

Management and control system need to find a balance between the costs of management 
and control and the risks involved. 

The  Commission's  role  in  the  ex  ante  review  of  national  management  and  control 
systems will be proportionate, as an obligatory review by the Commission is replaced by 
a  risk  based  approach.  Small  programmes  will  be  exempt  from  a  Commission  review. 
The risk-based approach reduces administrative costs associated with small programmes 

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and solid administrations. It also reinforces assurance, as Commission resources can be 
used more efficiently and targeted to areas of higher risks.  

Electronic data management can be a major source of reductions in administrative burden 
and  at  the  same  time  increase  the  controllability  of  projects  and  expenditure.  It  is 
therefore proposed to require all Member States to set up systems by the end of 2014 to 
enable beneficiaries to submit all information by way of electronic data exchange.  

One  of  the  complexities  associated  with  the  financial  management  system  in  the  2007-
2013 programming period is the general rule that all supporting documents for individual 
operations have to be retained until three years after the programme has been closed. The 
proposal  therefore  foresees  a  mandatory  annual  closure  of  completed  operations  or 
expenditure  in  the  framework  of  the  annual clearance  of  accounts.  This  aims  to  reduce 
the  burden  associated  with  a  long  retention  period  of  documents  for  individual 
beneficiaries and the risks associated with the loss of the audit trail. 

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2011/0276 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

laying down common provisions on the European Regional Development Fund, the 
European Social Fund, the Cohesion Fund, the European Agricultural Fund for 
Rural Development and the European Maritime and Fisheries Fund covered by the 
Common Strategic Framework and laying down general provisions on the 
European Regional Development Fund, the European Social Fund and the 
Cohesion Fund and repealing Regulation (EC) No 1083/2006 

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 Committee8,  

Having regard to the opinion of the Committee of the Regions9, 

Having regard to the opinion of the Court of Auditors10, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

Article 174 of the Treaty provides that, in order to strengthen its economic, social 
and  territorial  cohesion,  the  Union  shall  aim  at  reducing  disparities  between  the 
levels  of  development  of  the  various  regions  and  the  backwardness  of  the  least 
favoured  regions  or  islands,  particular  rural  areas,  areas  affected  by  industrial 
transition,  and  regions  which  suffer  from  severe  and  permanent  natural  or 
demographic handicaps. Article 175 of the Treaty requires that the Union would 
support  the  achievement  of  these  objectives  by  action  it  takes  through  the 
European  Agricultural  Guidance  and  Guarantee  Fund,  Guidance  Section,  the 
European Social Fund, the European Regional Development Fund, the European 
Investment Bank and other instruments. 

8

9
10 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 

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(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

In line with the conclusions of the European Council of 17 June 2010, whereby 
the  Union  strategy  for  smart,  sustainable  and  inclusive  growth  was  adopted,  the 
Union  and  Member  States  should  implement  the  delivery  of  smart,  sustainable 
and inclusive growth, while promoting harmonious development of the Union and 
reducing regional disparities. 

In  order  to  improve  coordination  and  harmonise  implementation  of  the  Funds 
providing  support  under  the  cohesion  policy,  namely  the  European  Regional 
Development  Fund  (ERDF),  the  European  Social  Fund  (ESF)  and  the  Cohesion 
Fund  (CF),  with  the  Funds  for  rural  development,  namely  the  European 
Agricultural  Fund  for  Rural  Development  (EAFRD),  and  for  the  maritime  and 
fisheries  sector,  namely  the  European  Maritime  and  Fisheries  Fund  (EMFF), 
common provisions should be established for all these Funds (the 'CSF Funds'). In 
addition this Regulation contains provisions which are common for the ERDF, the 
ESF  and  the  CF,  but  do  not  apply  to  the  EAFRD  and  the  EMFF.  Due  to  the 
particularities that exist for each CSF Fund, specific rules applicable to each CSF 
Fund and to the European territorial cooperation goal under the ERDF should be 
specified in separate regulations. 

As  regards  the  Common  Agricultural  Policy  (CAP),  significant  synergies  have 
already been obtained by harmonising and aligning management and control rules 
for  the  first  pillar  (EAGF  -  European  Agricultural  Guarantee  Fund)  and  the 
second pillar (EAFRD) of the CAP. The strong link between the EAGF and the 
EAFRD should therefore be maintained and the structures already in place in the 
Member States be sustained. 

The  outermost  regions  should  benefit  from  specific  measures  and  additional 
funding  to  offset  the  handicaps  resulting  from  the  factors  referred  to  in  Article 
349 of the Treaty. 

To ensure correct and consistent interpretation of provisions and to contribute to 
the  legal  certainty  of  Member  States  and  beneficiaries,  it  is  necessary  to  define 
certain terms that are used in the Regulation.  

It is set out that this Regulation consists of three parts, of which the first contains 
recitals and definitions, the second contains rules applicable to all CSF funds and 
the  third  includes  provisions  applicable  only  to  the  ERDF,  the  ESF  and  the  CF 
(the 'Funds').  

to  exercise 

the  Commission 

Under  Article  317  of  the  Treaty,  and  in  the  context  of  shared  management,  the 
conditions  allowing 
its  responsibilities  for 
implementation of the general budget of the European Union should be specified 
and  the  responsibilities  of  cooperation  by  the  Member  States  clarified.  Those 
conditions should enable the Commission to obtain assurance that Member States 
are using the CSF Funds in a legal and regular manner and in accordance with the 
principle  of  sound  financial  management  within  the  meaning  of  Council 
Regulation  (EC,  Euratom)  No  1605/2002  of  25  June  2002  on  the  Financial 
Regulation  applicable  to  the  general  budget  of  the  European  Communities11. 

11

OJ L 248, 16.9.2002, p. 1. 

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(9) 

Member  States  and  the  bodies  designated  by  them  for  that  purpose  should  be 
responsible  for  implementing  programmes  at  the  appropriate  territorial  level,  in 
accordance  with  the  institutional,  legal  and  financial  framework  of  the  Member 
State. These provisions also ensure that attention is drawn to the need to ensure 
complementarity  and  consistency  of  Union  intervention,  the  proportionality  of 
administrative  arrangements  and  a  reduction  of  the  administrative  burden  of 
beneficiaries of the CSF Funds. 

For  the  Partnership  Contract  and  each programme  respectively,  a  Member  State 
should  organise  a  partnership  with  the  representatives  of  competent  regional, 
local, urban and other public authorities, economic and social partners, and bodies 
representing  civil  society,  including  environmental  partners,  non-governmental 
organisations,  and  bodies  responsible  for  promoting  equality  and  non-
discrimination.  The  purpose  of  such  a  partnership  is  to  respect  the  principle  of 
multi-level  governance,  ensure  the  ownership  of  planned  interventions  by 
stakeholders  and  build  on  the  experience  and  know-how  of  relevant  actors.  The 
Commission should be empowered to adopt delegated acts providing for a code of 
conduct  in  order  to  ensure  that  partners  are  involved  in  the  preparation, 
implementation,  monitoring  and  evaluation  of  Partnership  Contracts  and 
programmes in a consistent manner 

(10)  The  activities  of  the  CSF  Funds  and  the  operations  which  they  support  should 
comply  with  applicable  Union  and  national  law  which  is  directly  or  indirectly 
linked to the implementation of the operation. 

(11) 

In  the  context  of  its  effort  to  increase  economic,  territorial  and  social  cohesion, 
the  Union  should,  at  all  stages  of  implementation  of  the  CSF  Funds,  aim  at 
eliminating inequalities and promoting equality between men and women, as well 
as  combating  discrimination  based  on  sex,  racial  or  ethnic  origin,  religion  or 
belief, disability, age or sexual orientation. 

(12)  The  objectives  of  the  CSF  Funds  should  be  pursued  in  the  framework  of 
sustainable development and the Union's promotion of the aim of protecting and 
improving the environment as set out in Article  11 and 19 of the Treaty,  taking 
into  account  the  polluter  pays  principle.  The  Member  States  should  provide 
information on the support for climate change objectives in line with the ambition 
to  devote  at  least  20%  of  the  Union  budget  to  this  end,  using  a  methodology 
adopted by the Commission by implementing act.  

(13) 

In  order  to  achieve  the  targets  and  objectives  of  the  Union  strategy  for  smart, 
sustainable and inclusive growth, the CSF Funds should focus their support on a 
limited number of common thematic objectives. The precise scope of each of the 
CSF  Funds  shall  be  set  out  in  Funds-specific  rules  and  may  be  limited  to  only 
some of the thematic objectives defined in this Regulation.  

(14)  The Commission should adopt by delegated act a Common Strategic Framework 
which translates the objectives of the Union into key actions for the CSF Funds, 
in order to provide clearer  strategic direction  to the programming process at the 
level  of  Member  States  and  regions.  The  Common  Strategic  Framework  should 
facilitate sectoral and territorial coordination of Union intervention under the CSF 
Funds and with other relevant Union policies and instruments.  

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(15)  The  Common  Strategic  Framework  should  therefore  establish  the  key  areas  of 
support, territorial challenges to be addressed, policy objectives, priority areas for 
cooperation  activities,  coordination  mechanisms  and  mechanisms  for  coherence 
and consistency with the economic policies of Member States and the Union.  

(16)  On  the  basis  of  the  Common  Strategic Framework adopted by the Commission, 
each  Member  State  should  prepare,  in  cooperation  with  its  partners  and  in 
dialogue with the Commission, a Partnership Contract. The Partnership Contract 
should translate the elements set out in the Common Strategic Framework into the 
national  context  and  set  out  firm  commitments  to  the  achievement  of  Union 
objectives through the programming of the CSF Funds.  

(17)  Member States should concentrate support to ensure a significant contribution to 
the  achievement  of  Union  objectives  in  line  with  their  specific  national  and 
regional development needs. Ex ante conditionalities should be defined to ensure 
that the necessary framework conditions for the effective use of Union support are 
in place. The fulfilment of those ex ante conditionalities should be assessed by the 
Commission in the framework of its assessment of the Partnership Contract and 
programmes. In cases where there is a failure to fulfil an ex ante conditionality, 
the Commission should have the power to suspend payments to the programme. 

(18)  A performance framework should be defined for each programme with a view to 
monitoring  progress  towards  the  objectives  and  targets  set  for  each  programme 
over the course of the programming period. The Commission should undertake a 
performance review in cooperation with the Member States in 2017 and 2019. A 
performance reserve should be foreseen and allocated in 2019 where milestones 
set in the performance framework have been attained. Due to their diversity and 
multi-country  character,  there  should  be  no  performance  reserve  for  'European 
Territorial  Cooperation'  programmes.  In  cases  where  the  shortfall  in  the 
achievement  of  milestones  or  targets  is  significant,  the  Commission  should  be 
able  to  suspend  payments  to  the  programme  or,  at  the  end  of  the  programming 
period, apply financial corrections, in order to ensure that the Union budget is not 
used in a wasteful or inefficient way.  

(19)  Establishing a closer link between cohesion policy and the economic governance 
of  the  Union  will  ensure  that  the  effectiveness  of  expenditure  under  the  CSF 
Funds is underpinned by sound economic policies and that the CSF Funds can, if 
necessary, be redirected to addressing the economic problems a country is facing. 
This  process  has  to  be  gradual,  starting  with  amendments  to  the  Partnership 
Contract  and  to  the  programmes  in  support  of  Council  recommendations  to 
address macroeconomic imbalances and social and economic difficulties. Where, 
despite  the  enhanced  use  of  CSF  funds,  a  Member  State  fails  to  take  effective 
action in the context of the economic governance process, the Commission should 
have the right to suspend all or part of the payments and commitments. Decisions 
on  suspensions  should  be  proportionate  and  effective,  taking  into  account  the 
impact  of  the  individual  programmes  for  addressing  the  economic  and  social 
situation  in  the  relevant  Member  State  and  previous  amendments  to  the 
Partnership Contract. When deciding on suspensions, the Commission should also 
respect  equality  of  treatment  between  Member  States,  taking  into  account  in 
particular  the  impact  of  the  suspension  on  the  economy  of  the  Member  State 
concerned. The suspensions should be lifted and funds be made available again to 

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the  Member  State  concerned  as  soon  as  the  Member  State  takes  the  necessary 
action. 

(20) 

In  order  to  ensure  focus  on  the  achievement  of  the  Union  strategy  for  smart, 
sustainable  and  inclusive  growth,  common  elements  should  be  defined  for  all 
programmes. In order to ensure the consistency of programming arrangements for 
the  CSF  Funds,  the  procedures  for  adoption  and  amendment  of  programmes 
should  be  aligned.  Programming  should  ensure  consistency  with  the  Common 
Strategic  Framework  and  Partnership  Contract,  coordination  of  the  CSF  Funds 
between  themselves  and  with  the  other  existing  financial  instruments  and  the 
European Investment Bank. 

(21)  Territorial cohesion has been added to the goals of economic and social cohesion 
by  the  Treaty,  and  it  is  necessary  to  address  the  role  of  cities,  functional 
geographies  and  sub-regional areas facing specific geographical or  demographic 
problems. To this end, to better mobilise potential at a local level, it is necessary 
to  strengthen  and  facilitate  community-led  local  development  by  laying  down 
common  rules  and  close  coordination  for  all  CSF  Funds.  Responsibility  for  the 
implementation  of  local  development  strategies  should  be  given  to  local  action 
groups representing the interests of the community, as an essential principle. 

(22)  Financial  instruments  are  increasingly  important  due  to  their  leverage  effect  on 
CSF  Funds,  their  capacity  to  combine  different  forms  of  public  and  private 
resources  to  support  public  policy  objectives,  and  because  revolving  forms  of 
finance make such support more sustainable over the longer term. 

(23)  Financial  instruments  supported  by  the  CSF  Funds  should  be  used  to  address 
specific market needs in a cost effective way, in accordance with the objectives of 
the  programmes,  and  should  not  crowd  out  private  financing.  The  decision  to 
finance  support  measures  through  financial  instruments  should  be  determined 
therefore on the basis of an ex ante analysis.  

(24)  Financial  instruments  should  be  designed  and  implemented  so  as  to  promote 
substantial participation by private sector investors and financial institutions on an 
appropriate  risk-sharing  basis.  To  be  sufficiently  attractive  to  private  sector, 
financial instruments need to be designed and implemented in a flexible manner. 
Managing  authorities  should  therefore  decide  on  the  most  appropriate  forms  to 
implement  financial  instruments  to  address  the  specific  needs  of  the  target 
regions, in accordance with the objectives of the relevant programme. 

(25)  Managing  authorities  should  have  the  possibility  to  contribute  resources  from 
programmes to financial instruments set up at Union level, or to instruments set 
up  at  regional  level.  Managing  authorities  should  also  have  the  possibility  to 
implement financial instruments directly, through specific funds or through funds 
of funds. 

(26)  The  amount  of  the  resources  paid  at  any  time  from  the  CSF  Funds  to  financial 
instruments  should  correspond  to  the  amount  necessary  to  implement  planned 
investments  and  payments  to  final  recipients,  including  management  costs  and 
fees, determined on the basis of business plans and cash-flow forecasts for a pre-
defined period which should not exceed two years. 

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(27) 

It is necessary to lay down specific rules regarding the amounts to be accepted as 
eligible  expenditure  at  closure,  to  ensure  that  the  amounts,  including  the 
management costs and fees, paid from the CSF Funds to financial instruments are 
effectively  used  for  investments  and  payments  to  final  recipients.  It  is  also 
necessary to lay down specific rules regarding the reuse of resources attributable 
to the support from the CSF Funds, including the use of legacy resources after the 
closure of the programmes. 

(28)  Member  States  should  monitor  programmes  in  order  to  review  implementation 
and  progress  towards  achieving  the  programme's  objectives.  To  this  end, 
monitoring  committees  should  be  set  up  and  their  composition  and  functions 
defined for CSF Funds. Joint Monitoring Committees could be set up to facilitate 
coordination between the CSF Funds In order to ensure effectiveness, monitoring 
committees  should  be  able  to  issue  recommendations  to  managing  authorities 
regarding implementation of the programme and should monitor actions taken as 
a result of its recommendations. 

(29)  Alignment  of  the  monitoring  and  reporting  arrangements  of  the  CSF  Funds  is 
necessary  to  simplify  management  arrangements  at  all  levels.  It  is  important  to 
the  availability  of 
ensure  proportionate  reporting  requirements  but  also 
comprehensive information on progress made at key review points. Therefore it is 
necessary that reporting requirements reflect information needs in given years and 
are aligned with the timing of the performance reviews.  

(30)  With  a  view  to  monitoring  progress  of  programmes,  an  annual  review  meeting 
should take place between the Member State and the Commission. The Member 
State  and  the  Commission  should  however  be  able  to  agree  not  to  organize  the 
meeting in order to avoid unnecessary administrative burden. 

(31) 

(32) 

In  order  for  the  Commission  to  monitor  progress  towards  achieving  Union 
objectives, Member States should submit progress reports on the implementation 
of  their  Partnership  Contracts.  On  the  basis  of  such  reports,  the  Commission 
should prepare a strategy report on progress in 2017 and 2019. 

It  is  necessary  to  evaluate  the  effectiveness,  efficiency  and  impact  of  assistance 
from the CSF Funds in order to improve the quality of implementation and design 
of  programmes,  and  to  determine  the  impact  of  programmes  in  relation  to  the 
targets  for  the  Union  strategy  for  smart  sustainable  and  inclusive  growth  and  in 
relation  to  GDP  and  unemployment,  where  relevant.  The  responsibilities  of 
Member States and the Commission in this regard should be specified.  

(33) 

In  order  to  improve  the  quality  and  design  of  each  programme,  and  verify  that 
objectives and targets can be reached, an ex ante evaluation of each programme 
should be carried out. 

(34)  An  evaluation  plan  should  be  drawn  up  by  the  authority  responsible  for  the 
preparation  of  the  programme.  During  the  programming  period  managing 
authorities should carry out evaluations to assess the effectiveness and impact of a 
programme. The monitoring committee and the Commission should be informed 
about the results of evaluations to facilitate management decisions. 

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(35)  Ex post evaluations should be carried out in order to assess the effectiveness and 
efficiency  of  the  CSF  Funds  and  their  impact  on  the  overall  goals  of  the  CSF 
Funds and the Union strategy for smart, sustainable and inclusive growth. 

(36) 

(37) 

It is useful to specify the types of action that may be undertaken at the initiative of 
the  Commission  and  of  the  Member  States  as  technical  assistance  with  support 
from the CSF Funds.  

In  order  to  ensure  an  effective  use  of  Union  resources,  and  avoid  the  over- 
financing of revenue generating operations, it is necessary to set out the rules for 
calculating  the  contribution  from  the  CSF  Funds  to  a  revenue-generating 
operation.  

(38)  The starting and closing dates for the eligibility of expenditure should be defined 
so as to provide for a uniform and equitable rule applying to the implementation 
of  the  CSF  Funds  across  the  Union.  In  order  to  facilitate  the  execution  of 
programmes, it is appropriate to establish that the starting date for the eligibility 
of  expenditure  may  be  prior  to  1  January  2014  if  the  Member  State  concerned 
submits a programme before that date. With a view to ensuring an effective use of 
EU Funds and reducing the risk to the EU budget, it is necessary to put in place 
restrictions on support for completed operations-  

(39) 

In  accordance  with  the  principle  of  subsidiarity  and  subject  to  exceptions 
provided  for  in  Regulation(s)  (EU)  No  […]  [ERDF,  ESF,  CF,  ETC,  EAFRD, 
EMFF Regulations], Member States should adopt national rules on the eligibility 
of expenditure. 

(40)  With  a  view  to  simplifying  the  use  of  the  CSF  Funds  and  reducing  the  risk  of 
errors, while providing for differentiation where needed to reflect the specificities 
of policy, it is appropriate to define the forms of support, harmonized conditions 
of  reimbursement  of  grants  and  flat  rate  financing,  specific  eligibility  rules  for 
grants  and  specific  conditions  on  the  eligibility  of  operations  depending  on 
location.  

(41)  To ensure the effectiveness, fairness and sustainable impact of the intervention of 
the  CSF  Funds,  there  should  be  provisions  guaranteeing  that  investments  in 
businesses  and  infrastructures  are  long-lasting  and  prevent  the  CSF  Funds  from 
being used to undue advantage. Experience has shown that a period of five years 
is  an  appropriate  minimum  period  to  be  applied,  except  where  State  aid  rules 
foresee  a  different  period.  It  is  appropriate  to  exclude  actions  supported  by  the 
ESF and those not entailing productive investment or investment in infrastructure 
from the general requirement of durability, unless such requirements are derived 
from applicable State aid rules, and to exclude contributions to or from financial 
instruments. 

(42)  Member  States  should  adopt  adequate  measures  to  guarantee  the  proper  set  up 
and functioning of their management and control systems to give assurance on the 
legal  and  regular  use  of  the  CSF  Funds.  The  obligations  of  Member  States  as 
regards  the  management  and  control  systems  of  programmes,  and  in  relation  to 
the  prevention,  detection  and  correction  of  irregularities  and  infringements  of 
Union law should therefore be specified.  

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(43) 

In accordance with the principles of shared management, Member States should 
have  the  primary  responsibility,  through  their  management  and  control  systems, 
for the implementation and control of the operations in programmes. In order to 
strengthen the effectiveness of the control over the selection and implementation 
of  operations  and  the  functioning  of  the  management  and  control  system,  the 
functions of the managing authority should be specified. 

(44) 

In order to provide assurance ex ante on the set up and design of the main systems 
of management and control, Member States should designate an accrediting body 
that  is  responsible  for  the  accreditation  and  withdrawal  of  accreditation  of 
managing and control bodies. 

(45)  The  powers  and  responsibilities  of  the  Commission  to  verify  the  effective 
functioning of the management and control systems, and to require Member State 
action, should be laid down. The Commission should also have the power to carry 
out  audits  focused  on  issues  relating  to  sound  financial  management  in  order  to 
draw conclusions on the performance of Funds. 

(46)  Union  budget  commitments  should  be  effected  annually.  In  order  to  ensure 
effective programme management, it is necessary to lay down common rules for 
interim payment requests, the payment of the annual balance, where appropriate, 
and the final balance, without prejudice to specific rules that are required for each 
of the CSF Funds. 

(47)  The  pre-financing  payment  at  the  start  of  programmes  ensures  that  the  Member 
State has the means to provide support to beneficiaries in the implementation of 
the programme from programme adoption. Therefore, provisions should be made 
for initial pre-financing amounts from the CSF Funds. Initial pre-financing should 
be totally cleared at closure of the programme.  

(48) 

(49) 

(50) 

In  order  to  safeguard  the  Union's  financial  interests,  there  should  be  measures 
limited  in  time  that  allow  the  authorising  officer  by  delegation  to  interrupt 
payments  where  there  is  evidence  to  suggest  a  significant  deficiency  in  the 
functioning  of  the  management  and  control  system,  evidence  of  irregularities 
linked to a payment application, or a failure to submit documents for the purpose 
of clearance of accounts. 

In order to ensure that expenditure co-financed by the Union budget in any given 
financial  year  is  used  in  accordance  with  the  applicable  rules,  an  appropriate 
framework  should  be  created  for  the  annual  clearance  of  accounts.  Under  this 
framework, the accredited bodies should submit to the Commission, in respect of 
each  programme,  a  management  declaration  of  assurance  accompanied  by  the 
certified annual accounts, a summary report of controls and an independent audit 
opinion and control report.  

In order to safeguard the Union budget, it may be necessary for the Commission 
to make financial corrections. To ensure legal certainty for the Member States, it 
is  important  to  define  the  circumstances  under  which  breaches  of  applicable 
Union  or  national  law  can  lead  to  financial  corrections  by  the  Commission.  In 
order to ensure that financial corrections which the Commission may impose on 
Member  States  are  related  to  the  protection  of  the  EU's  financial  interests,  they 

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should be confined to cases where the breach of Union or national law concerns 
directly  or  indirectly  the  eligibility,  regularity,  management  or  control  of 
operations  and  the  corresponding  expenditure.  To  ensure  proportionality  it  is 
important that the Commission considers the nature and the gravity of the breach 
in deciding the amount of financial correction.  

(51) 

In  order  to  encourage  financial  discipline,  it  is  appropriate  to  define  the 
arrangements  for  decommitment  of  any  part  of  the  budget  commitment  in  a 
programme, in particular where an amount may be excluded from decommitment, 
notably  when  delays  in  implementation  result  from  circumstances  which  are 
independent  of  the  party  concerned,  abnormal  or  unforeseeable  and  whose 
consequences cannot be avoided despite the diligence shown.  

(52)  Additional general provisions are necessary in relation to the specific functioning 
of the Funds. In particular, in order to increase their added value, and to enhance 
their contribution to the priorities of the Union strategy for smart, sustainable and 
inclusive  growth,  the  functioning  of  these  Funds  should  be  simplified  and 
concentrated  on  the  goals  of  'Investment  for  growth  and  jobs'  and  'European 
territorial cooperation'.  

(53)  Additional provisions for the specific functioning of the EAFRD and the EMFF 

are set out in the relevant sector-specific legislation.  

(54) 

In  order  to  promote  the  Treaty  objectives  of  economic,  social  and  territorial 
cohesion, the 'Investment for growth and jobs' goal should support all regions. To 
provide balanced and gradual support and reflect the level of economic and social 
development,  resources  under  that  goal  should  be  allocated  from  the  ERDF  and 
the  ESF  among  the  less  developed  regions,  the  transition  regions  and  the  more 
developed regions according to their gross domestic product (GDP) per capita in 
relation  to  the  EU  average.  In  order  to  ensure  the  long-term  sustainability  of 
investment  from  the  Structural  Funds,  regions  whose  GDP  per  capita  for  the 
2007-2013  period  was  less  than  75%  of  the  average  of  the  EU-25  for  the 
reference period but whose GDP per capita has grown to more than 75% of the 
EU-27  average  should  receive  at  least  two  thirds  of  their  2007-2013  allocation. 
Member States whose per capita gross national income (GNI) is less than 90 % of 
that  of  the  Union  average  should  benefit  under  the  'Investment  for  growth  and 
jobs' goal from the CF.  

(55)  Objective  criteria  should  be  fixed  for  designating  eligible  regions  and  areas  for 
support from the Funds. To this end, the identification of the regions and areas at 
Union  level  should  be  based  on  the  common  system  of  classification  of  the 
regions established by Regulation (EC) No 1059/2003 of the European Parliament 
and the Council of 26 May 2003 on the establishment of a common classification 
of territorial units for statistics (NUTS)12. 

(56) 

In  order  to  set  out  an  appropriate  financial  framework,  the  Commission  should 
establish,  by  means  of  implementing  acts,  the  indicative  annual  breakdown  of 
available  commitment  appropriations  using  an  objective  and  transparent  method 

12

OJ L 154, 21.6.2003, p. 1. 

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(57) 

with  a  view  to  targeting  the  regions  whose  development  is  lagging  behind, 
including those receiving transitional support. 

It is necessary to fix the limits of those resources for investment for growth and 
jobs  and  to  adopt  objective  criteria  for  their  allocation  to  regions  and  Member 
States.  In  order  to  encourage  the  necessary  acceleration  of  development  of 
infrastructure in transport and energy as well as information and communication 
technologies  across  the  Union,  a  Connecting  Europe  Facility  should  be  created. 
The  allocation  of  the  annual  appropriations  from  the  Funds  and  the  amounts 
transferred  from  the  Cohesion  Fund  to  the  Connecting  Europe  Facility  to  a 
Member  State  should  be  limited  to  a  ceiling  that  would  be  fixed  taking  into 
account 
these 
appropriations. In addition, in line with the headline target on poverty reduction, 
it  is  necessary  to  reorient  the  scheme  for  food  support  for  the  most  deprived 
persons  to  promote  social  inclusion  and  the  harmonious  development  of  the 
Union.  A  mechanism  is  envisaged  which  transfers  resources  to  this  instrument 
and  ensures  that  these  will  be  constituted  from  ESF  allocations  through  an 
implicit  corresponding  decrease  of  the  minimum  percentage  of  the  Structural 
Funds to be allocated to the ESF in each country. 

that  particular  Member  State 

the  capacity  of 

to  absorb 

(58) 

In  order  to  strengthen  the  focus  on  results  and  achievement  of  the  Europe  2020 
objectives  and  targets,  five  per  cent  of  the  resources  for  the  'Investment  for 
growth and jobs' goal should be set aside as a performance reserve for each Fund, 
and category of region in each Member State.  

(59)  As  regards  the  Funds  and  with  a  view  to  ensuring  an  appropriate  allocation  to 
each  category  of  regions,  resources  should  not  be  transferred  between  less 
developed,  transition  and  more  developed  regions  except  in  duly  justified 
circumstances  linked  to  the  delivery  of  one  or  more  thematic  objectives  and  for 
no more than 2 % of the total appropriation for that category of region. 

(60) 

In order to ensure a genuine economic impact, support from the Funds should not 
replace public expenditure or equivalent structural expenditure by Member States 
under the terms of this Regulation. In addition, so that the support from the Funds 
takes  into  account  a  broader  economic  context,  the  level  of  public  expenditure 
should be determined with reference to the general macroeconomic conditions in 
which the financing takes place based on the indicators provided in the Stability 
and  Convergence  Programmes  submitted  annually  by  Member  States  in 
accordance  with  Regulation  (EC)  No.  1466/1997  of  7  July  1997  on  the 
strengthening of the surveillance of budgetary positions and the surveillance and 
coordination  of  economic  policies13.  Verification  by  the  Commission  of  the 
principle of additionality should concentrate on the Member States in which less 
developed and transition regions cover at least 15% of the population because of 
the scale of the financial resources allocated to them. 

(61) 

It  is  necessary  to  lay  down  additional  provisions  concerning  the  programming, 
management, monitoring and control of operational programmes supported by the 
Funds.  Operational  programmes  should  set  out  priority  axes  corresponding  to 

13

OJ L 209, 2.8.1997, p. 1. 

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thematic  objectives,  elaborate  a  consistent  intervention  logic  to  tackle  the 
development  needs  identified,  and  set  out  the  framework  for  performance 
assessment.  They  should  also  contain  other  elements  necessary  to  underpin  the 
effective and efficient implementation of these Funds.  

(62)  With a view to improving complementarities and simplifying implementation, it 
should be possible to combine support from the CF and the ERDF with support 
from the ESF in joint operational programmes under the growth and jobs goal. 

(63)  Major projects represent a substantial share of Union spending and are frequently 
of strategic importance with respect to the achievement of the Union strategy for 
smart, sustainable and inclusive growth. Therefore it is justified that operations of 
substantial size continue to be subject to approval by the Commission under this 
regulation.  To  ensure  clarity,  it  is  appropriate  to  define  the  content  of  a  major 
project  for  this  purpose.  The  Commission  should  also  have  the  possibility  to 
refuse  support  for  a  major  project  where  the  granting  of  such  support  is  not 
justified.  

(64) 

(65) 

(66) 

In order to give Member States the option of implementing part of an operational 
programme using a result-based approach, it is useful to provide for a joint action 
plan comprising a set of actions to be carried out by a beneficiary to contribute to 
the  objectives  of  the  operational  programme.  In  order  to  simplify  and  reinforce 
the result orientation of the Funds the management of the joint action plan should 
be exclusively based on jointly agreed milestones, outputs and results as defined 
in the Commission decision adopting the joint action plan. Control and audit of a 
joint  action  plan  should  also  be  limited  to  the  achievement  of  these  milestones, 
outputs  and  results.  Consequently,  it  is  necessary  to  lay  down  rules  on  its 
preparation,  content,  adoption,  financial  management  and  control  of  joint  action 
plans. 

 Where  an  urban  or  territorial  development  strategy  requires  an  integrated 
approach because it involves investments under more than one priority axis of one 
or  several  operational  programmes,  action  supported  by  the  Funds  should  be 
carried  out  as  an  integrated  territorial  investment  within  an  operational 
programme. 

It is necessary to adopt specific rules in relation to the functions of the monitoring 
committee and the annual reports on implementation of operational programmes 
supported by the Funds. Additional provisions for the specific functioning of the 
EAFRD are set out in the relevant sector specific legislation. 

(67)  To ensure the availability of essential and up to date information on programme 
implementation, it is necessary that Member States provide the Commission with 
the key data on a regular basis. In order to avoid an additional burden on Member 
States, this should be limited to data collected continuously, and the transmission 
should be performed by way of electronic data exchange. 

(68) 

In accordance with Article 175 of the Treaty, the Commission submits Cohesion 
Reports  to  the  European  Parliament,  the  Council,  the  Economic  and  Social 
Committee and the Committee of the Regions every three years on the progress 

EN 

23 

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(69) 

(70) 

made towards achieving the Union's economic, social and territorial cohesion. It 
is necessary to lay down the content of this report.  

It is considered appropriate that the Commission, in cooperation with the Member 
States, carries out the ex post evaluation for the Funds to obtain information at the 
appropriate  level  on  the  results  and  impact  of  interventions  financed.  Specific 
provisions  are  also  needed  to  establish  a  procedure  for  the  approval  of  the 
evaluation plans for the Funds.  

It is important to bring the achievements of the Union's Funds to the attention of 
the  general  public.  Citizens  have  the  right  to  know  how  the  Union's  financial 
resources  are  invested.  The  responsibility  to  ensure  that  the  appropriate 
information  is  communicated  to  the  public  should  lie  with  both  the  managing 
authorities and the beneficiaries. To ensure more efficiency in communication to 
the  public  at  large  and  stronger  synergies  between  the  communication  activities 
undertaken  at  the  initiative  of  the  Commission,  the  budget  allocated  to 
communication  actions  under  this  Regulation  shall  also  contribute  to  cover 
corporate  communication  of  the  political  priorities  of  the  European  Union 
provided that these are related to the general objectives of this Regulation. 

(71)  For  the  purpose  of  ensuring  a  wide  dissemination  of  information  about  the 
achievements  of  the  Funds  and  the  role  of  the  Union  therein  and  to  inform 
potential  beneficiaries  about  funding  opportunities,  detailed  rules  about 
technical 
information  and  communication  measures,  as  well  as  certain 
characteristics of such measures, should be defined in this Regulation. 

(72)  With a view to strengthening accessibility and transparency of information about 
funding  opportunities  and  project  beneficiaries,  in  each  Member  State  a  single 
website  or  website  portal  providing 
the  operational 
programmes,  including  the  lists  of  operations  supported  under  each  operational 
programme, should be made available.  

information  on  all 

(73) 

(74) 

It  is  necessary  to  determine  the  elements  for  modulating  the  co-financing  rate 
from  the  Funds  to  operational  programmes,  in  particular,  to  increase  the 
multiplier effect of Union resources. It is also necessary to establish the maximum 
rates  of  co-financing  by  category  of  region  in  order  to  ensure  respect  of  the 
principle of co-financing through an appropriate level of national support. 

It is necessary for Member States to designate a managing authority, a certifying 
authority  and  a  functionally  independent  auditing  authority  for  each  operational 
programme.  To  provide  flexibility  for  Member  States  in  the  set  up  of  control 
systems, it is appropriate to provide the option for the functions of the certifying 
authority to be carried out by the managing authority. The Member State should 
also be allowed to designate intermediate bodies to carry out certain tasks of the 
managing authority or the certifying authority. The Member State should in that 
case lay down clearly their respective responsibilities and functions. 

(75)  The  managing  authority  bears  the  main  responsibility  for  the  effective  and 
efficient  implementation  of  the  Funds  and  thus  fulfils  a  substantial  number  of 
to  programme  management  and  monitoring,  financial 
functions  related 

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24 

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management  and  controls  as  well  as  project  selection.  Its  responsibilities  and 
functions should be set out.  

(76)  The certifying authority should draw up and submit to the Commission payment 
applications. It should draw up the annual accounts, certifying the completeness, 
accuracy and veracity of the annual accounts and that the expenditure entered in 
the  accounts  complies  with  applicable  Union  and  national 
Its 
responsibilities and functions should be set out. 

rules. 

(77)  The audit authority should ensure that audits are carried out on the management 
and  control  systems,  on  an  appropriate  sample  of  operations  and  on  the  annual 
accounts. Its responsibilities and functions should be set out. 

(78) 

In  order  to  take  account  of  the  specific  organisation  of  the  management  and 
control systems for the ERDF, ESF and Cohesion Funds and the need to ensure a 
proportionate approach, specific provisions are required for the accreditation and 
withdrawal  of  accreditation  of  the  managing  authority  and  the  certifying 
authority.  

(79)  Without  prejudice  to  the  Commission's  powers  as  regards  financial  control, 
cooperation between the Member States and the Commission in this field should 
be  increased  and  criteria  should  be  established  which  allow  the  Commission  to 
determine, in the context of its strategy of control of national systems, the level of 
assurance it should obtain from national audit bodies. 

(80) 

In addition to common rules on financial management, additional provisions are 
necessary for the ERDF, ESF and the Cohesion Fund. In particular, with a view to 
ensuring  reasonable assurance for the  Commission prior to the annual clearance 
of accounts, applications for interim payments should be reimbursed at a rate of 
90 % of the amount resulting from applying the co-financing rate for each priority 
axis  as  laid  down  in  the  decision  adopting  the  operational  programme  to  the 
eligible expenditure for the priority axis. The outstanding amounts due should be 
paid  to  the  Member  States  upon  annual  clearance  of  accounts,  provided  that 
reasonable assurance has been attained in regard to the eligibility of expenditure 
for the year covered by the clearance procedure. 

(81)  To  ensure  that  beneficiaries  receive  the  support  as  soon  as  possible  and  to 
reinforce  the  assurance  for  the  Commission  it  is  appropriate  to  require  that 
payment  applications  include  only  expenditure  for  which  the  support  has  been 
paid  to  beneficiaries.  Pre-financing  each  year  should  be  foreseen  to  ensure  that 
Member  State  have  sufficient  means  to  operate  under  such  arrangements.  Such 
pre-financing should be cleared each year with the clearance of accounts. 

(82)  To ensure the appropriate application of the general rules on decommitment, the 
rules established for the Funds should detail how the deadlines for decommitment 
are established and how the respective amounts are calculated.  

(83) 

It  is  necessary  to  specify  the  detailed  procedure  for  the  annual  clearance  of 
accounts  applicable  to  the  Funds  to  ensure  a  clear  basis  and  legal  certainty  for 
these  arrangements.  It  is  important  to  envisage  a  limited  possibility  for  the 

EN 

25 

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Member State to define a provision in its annual accounts for an amount, which is 
subject to an ongoing procedure with the audit authority.  

(84)  The process of annual clearance of accounts should be accompanied by an annual 
closure  of  completed  operations  (for  the  ERDF  and  the  CF)  or  expenditure  (for 
the  ESF).  In  order  to  reduce  the  costs  associated  with  the  final  closure  of 
operational programmes, to reduce the administrative burden for beneficiaries and 
to provide legal certainty, annual closure should be obligatory thereby limiting the 
period during which the supporting documents need to be maintained and during 
which operations can be audited and financial corrections imposed.  

(85) 

In  order  to  safeguard  the  Union's  financial  interests  and  provide  the  means  to 
ensure  effective  programme  implementation,  there  should  be  measures  allowing 
for the suspension by the Commission of payments at the level of priority axis or 
operational programme. 

(86) 

It  is  appropriate  to  lay  down  the  specific  arrangements  and  procedures  for 
financial corrections by Member States and by the Commission in respect of the 
Funds to provide legal certainty for Member States.  

(87)  The frequency of audits on operations should be proportionate to the extent of the 
Union's support from the Funds. In particular, the number of audits s carried out 
should be reduced where the total eligible expenditure for an operation does not 
exceed  EUR  100  000.  Nevertheless,  it  should  be  possible  to  carry  out  audits  at 
any time where there is evidence of an irregularity or fraud, or, following closure 
of  a  completed  operation,  as  part  of  an  audit  sample.  In  order  that  the  level  of 
auditing by the Commission is proportionate to the risk, the Commission should 
be able to reduce its audit work in relation to operational programmes where there 
are no significant deficiencies or where the audit authority can be relied on. 

(88) 

In  order  to  supplement  and  amend  certain  non-essential  elements  of  this 
Regulation, the power to adopt acts in accordance with Article 290 of the Treaty 
should  be  delegated  to  the  Commission  in  respect  of  a  code  of  conduct  on  the 
objectives and criteria to support the implementation of partnership, the adoption 
of  a  Common  Strategic  Framework,  additional  rules  on  the  allocation  of  the 
growth  and  competitiveness  reserve,  the  definition  of  the  area  and  population 
covered  by  the  local  development  strategies,  detailed  rules  on  financial 
instruments  (ex  ante  assessment,  eligibility  of  expenses,  types  of  activities  not 
supported,  combination  of  support,  transfer  and  management  of  assets,  payment 
requests,  and  capitalisation  of  annual  instalments),  the  definition  of  the  flat  rate 
for  revenue  generating  operations,  the  responsibilities  of  Member  States 
concerning the procedure for reporting irregularities and recovery of sums unduly 
paid, the model of management declaration of assurance on the functioning of the 
management  and  control  system,  the  conditions  of  national  audits,  the 
accreditation  criteria  for  managing  authorities  and  certifying  authorities,  the 
identification of commonly accepted data carriers, the level of financial correction 
to be applied, the amendment of annexes and the specific measures necessary for 
the  facilitation  of  transition  from  Regulation  (EC)  No  1083/2006.  The 
Commission should also be  empowered to  amend  Annexes  I  and  IV  in  order  to 
address  future  adaptation  needs.  It  is  of  particular  importance  that  the 

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Commission  carry  out  appropriate  consultations  during  its  preparatory  work, 
including at expert level.  

(89)  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. 

(90)  The Commission should be empowered to adopt, by means of implementing acts, 
as  regards  all  CSF  Funds,  decisions  approving  the  Partnership  Contracts, 
decisions allocating the performance reserve and decisions suspending payments 
linked to Member States' economic policies; and as regards the Funds, decisions 
adopting  operational  programmes  decisions  approving  major  projects,  decisions 
suspending payments and decisions on financial corrections. 

(91) 

In order to ensure uniform conditions for the implementation of this Regulation, 
the implementing powers relating to the methodology concerning climate change 
objectives, standard terms and conditions for monitoring of financial instruments, 
methodology  for  the  calculation  of  net  revenue  for  revenue-generating  projects, 
identification  of  the  regions  and  Member  States  fulfilling  the  Investment  for 
growth and jobs criteria, model of operational programme for the Funds, format 
for information on major projects and methodology to be used in carrying out the 
cost-benefit analysis on major projects, standard format for the joint action plan, 
model of the annual and final implementation reports, technical characteristics of 
information  and  publicity  measures,  exchange of information by Member States 
and  on-the-spot  verifications,  model  of  the  management  declaration,  models  for 
the  audit  strategy,  opinion  and  annual  control  report,  the  use  of  data  collected 
during audits, model for payment applications 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 powers14.  

(92)  This Regulation replaces Council Regulation (EC) No 1083/2006 of 11 July 2006 
laying down general provisions on the European Regional Development Fund, the 
European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 
1260/199915. That Regulation should be therefore repealed. 

(93)  Since the objective of this Regulation, namely to reduce disparities between levels 
of development of the various regions and the backwardness of the least favoured 
regions  or  islands,  particular  rural  areas,  areas  affected  by  industrial  transition, 
and  regions  which  suffer  from  severe  and  permanent  natural  or  demographic 
handicaps,  cannot  be  sufficiently  achieved  by  Member  States  but  can  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. 
In accordance with the principle of proportionality, as set out in that Article, this 
Regulation  does  not  go  beyond  what  is  necessary  in  order  to  achieve  that 
objective, 

14

15

OJ L 55, 28.2.2011, p.13. 
OJ L 210, 31.7.2006, p. 25. 

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HAVE ADOPTED THIS REGULATION 

PART ONE 

SUBJECT-MATTER AND DEFINITIONS 

Article 1  

Subject-matter 

This  Regulation  lays  down  the  common  rules  applicable  to  the  European  Regional 
Development Fund (ERDF), the European Social Fund (ESF), the Cohesion Fund (CF), 
the  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and  the  European 
Maritime and Fisheries Fund (EMFF), which are operating under the Common Strategic 
Framework  (the  'CSF  Funds').  It  also  defines  the  provisions  necessary  to  ensure  the 
effectiveness  of  the  CSF  Funds  and  their  coordination  with  one  another and with  other 
Union instruments. 

This Regulation also lays down the general rules governing the ERDF, the ESF (together 
referred  to  as  the  'Structural  Funds')  and  the  CF.  The  Regulation  defines  the  tasks, 
priority objectives and organisation of the Structural Funds and the CF (the 'Funds'), the 
criteria for Member States and regions to be eligible for support from the CSF Funds, the 
financial resources available and the criteria for their allocation.  

The rules set out in this Regulation apply without prejudice to the provisions laid down 
in Regulation (EU) No […]/2012 of the European Parliament and of the Council on the 
financing,  management  and  monitoring of the common  agriculture policy16 (hereinafter 
referred  as  the  'CAP'  Regulation)  and  to  the  specific  provisions  laid  down  in  the 
following Regulations: 

(1) 

(2) 

(3) 

16 
17 
18 
19

Regulation (EU)  No […]/2012  of  the  European  Parliament  and  of  the  Council 
on the European Regional Development Fund and repealing Regulation (EC) No 
1080/200617 (the 'ERDF Regulation');  

Regulation (EU) No […]/2012 of the European Parliament and of the Council on 
the  European  Social  Fund  and  repealing  Regulation  (EC)  No  1081/200618  (the 
'ESF Regulation'); 

Regulation (EU)  No […]/2012  of  the  European  Parliament  and  of  the  Council 
establishing  a  Cohesion  Fund  and  repealing  Regulation  (EC)  No  1084/200619 
(the 'CF Regulation');  

OJ L , , p. . 

EN 

28 

   EN 

 
 
 
                                                 
 
 
 
 
(4) 

(5) 

(6) 

Regulation (EU) No […]/2012 of the European Parliament and of the Council on 
European territorial cooperation20 (the 'ETC Regulation'); 

Regulation (EU) No […]/2012 of the European Parliament and of the Council on 
the  European  Agricultural  Fund  for  Rural  Development  and  repealing 
Regulation (EC) No 11698/200521 (the 'EAFRD Regulation'); and 

Regulation (EU) No […]/2012 of the European Parliament and of the Council on 
the  European  Maritime  and  Fisheries  Fund  and  repealing  Regulation  (EC)  No 
1198/200622 (the 'EMFF Regulation'). 

Article 2  

Definitions 

For the purposes of this Regulation, the definitions on financial instruments as laid down 
in  the  Financial  Regulation  shall  apply  to  financial  instruments  supported  by  the  CSF 
Funds, except where otherwise provided in this Regulation. 

In addition, the following definitions shall apply: 

'Union  strategy  for  smart,  sustainable  and  inclusive  growth'  means  the  targets 
and shared objectives guiding the action of Member States and the Union set out 
in the  Communication  of  the  Commission:  Europe  2020: A  strategy  for  smart, 
sustainable and inclusive growth, and contained in the Conclusions adopted by 
the European Council of 17 June 2010 as Annex I (New European Strategy for 
Jobs  and  Growth,  EU  Headline  Targets)  and  Council  Decision  of  21 October 
2010 on guidelines for the employment policies of the Member States, and any 
revision of such targets and shared objectives. 

'Common  Strategic  Framework'  means  the  document  translating  the  objectives 
and targets of the Union strategy for smart, sustainable and inclusive growth into 
key actions for the CSF Funds, establishing for each thematic objective the key 
actions to be supported by each CSF Fund and the mechanisms for ensuring the 
coherence  and  consistency  of  the  programming  of  the  CSF  Funds  with  the 
economic and employment policies of the Member States and of the Union; 

'Fund-specific rules' means the provisions laid down in or established on the basis 
of  Part  Three  of  this  Regulation  or  a  specific  or  generic  regulation  governing 
one or more of the CSF Fund(s) referred to or listed in the third sub-paragraph 
of Article 1; 

‘programming’  means 

the  process  of  organisation,  decision-making  and 
allocation  of  financial  resources  in  several  stages  intended  to  implement,  on  a 
multi-annual  basis,  the  joint  action  by  the  Union  and  the  Member  States  to 
achieve Union strategy for smart, sustainable and inclusive growth; 

(1) 

(2) 

(3) 

(4) 

20 
21 
22 

EN 

29 

   EN 

 
 
                                                 
 
 
 
(5) 

(6) 

(7) 

(8) 

‘programme’  means  ‘operational  programme’  referred  to  in  Part  Three  of  this 
Regulation  and  in  the  EMFF  Regulation,  and  ‘rural  development  programme’ 
referred to in the EAFRD Regulation; 

‘priority’ means the ‘priority axis’ referred to in Part Three of this Regulation and 
the  ‘Union  priority’  referred  to  in  the  EMFF  Regulation  and  in  the  EAFRD 
Regulation;  

'operation'  means  a  project,  contract,  action or group of projects selected by the 
managing  authority  of  the  programme  concerned,  or  under  its  responsibility, 
contributing to the objectives of the priority or priorities to which it relates; in 
the context of financial instruments, the operation is constituted by the financial 
contributions  from  a  programme  to  financial  instruments  and  the  subsequent 
financial support provided by these financial instruments; 

'beneficiary' means a public or private body responsible for initiating or initiating 
and implementing operations; in the context of State aid, the term 'beneficiary' 
means the body which receives the aid; in the context of financial instruments, 
the term 'beneficiary' means the body that implements the financial instrument;  

(9) 

'final  recipient'  means  a  legal  or  natural  person  that  receives  financial  support 

from a financial instrument; 

(10) 

(11) 

(12) 

'State  aid'  means  aid  falling  under  Article 107(1)  of  the  Treaty  which  shall  be 
deemed for the purposes of this Regulation also to include de minimis aid within 
the  meaning  of  Commission  Regulation  (EC)  No  1998/2006  of  15  December 
2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid23, 
Commission  Regulation  (EC)  No 1535/2007  of  20  December  2007  on  the 
application of Articles 87 and 88 of the EC Treaty to de minimis aid in the sector 
of  agricultural  production24  and  Commission  Regulation  (EC)  No 875/2007  of 
24  July  2007  on  the  application  of  Articles  87  and  88  of  the  EC  Treaty  to  de 
minimis  aid 
(EC) 
in 
No 1860/200425;  

fisheries  sector  and  amending  Regulation 

the 

'completed  operation'  means  an  operation that has been physically completed or 
fully implemented and in respect of which all related payments have been made 
by beneficiaries and the corresponding public contribution has been paid to the 
beneficiaries;  

‘public support' means any financial support to the financing of an operation the 
origin of which is the budget of national, regional or local public authorities, the 
budget of the Union related to the CSF Funds, the budget of public law bodies 
or the budget of associations of public authorities or public law bodies;  

(13) 

'public  law  body'  means  any  body  governed  by  public  law  in  the  meaning  of 
Article  1(9)  of  Directive  2004/18/EC  of  the  European  Parliament  and  of  the 

23

24

25

OJ L 379, 28.12.2006, p. 5. 
OJ L 337, 21.12.2007, p. 35. 
OJ L 193, 25.7.2007, p. 6. 

EN 

30 

   EN 

 
                                                 
 
 
 
Council26  and  any  European  grouping  of  territorial  cooperation  (EGTC) 
established in accordance with Regulation (EC) No 1082/2006 of the European 
Parliament  and  of  the  Council27,  regardless  of  whether  the  relevant  national 
implementing provisions consider the EGTC a public law body or a private law 
body; 

(14) 

'document' means a paper or an electronic medium bearing information relevant 

in the framework of this Regulation; 

(15) 

(16) 

'intermediate  body'  means  any  public  or  private  body  which  acts  under  the 
responsibility of a managing or certifying authority, or which carries out duties 
on behalf of such an authority vis-à-vis beneficiaries' implementing operations; 

‘local  development  strategy’  means  a  coherent  set  of  operations  to  meet  local 
objectives and needs, which contributes to meeting the Union strategy for smart, 
sustainable and inclusive growth and which is implemented in partnership at the 
appropriate level; 

(17) 

‘rolling closure’ means closure of operations as a result of the annual clearance of 

account exercise and before the general closure of the programme; 

(18) 

'Partnership  Contract'  means  the  document  prepared  by  the  Member  State  with 
the  involvement  of  partners  in  line  with  the  multi-level  governance  approach, 
which sets out the Member State's strategy, priorities and arrangements for using 
the CSF Funds in an effective and efficient way to pursue the Union strategy for 
smart,  sustainable  and  inclusive  growth,  and  which  is  approved  by  the 
Commission following assessment and dialogue with the Member State;  

(19) 

'category  of  regions'  means  the  categorisation  of  regions  as  'less  developed 
regions',  'transition  regions'  or  'more  developed  regions'  according  to  Article 
82(2); 

(20) 

'request for payment' means a payment application or declaration of expenditure 

submitted by the Member State to the Commission; 

(21) 

'EIB'  means  the  European  Investment  Bank,  the  European  Investment  Fund  or 

any subsidiary of the European Investment Bank; 

(22) 

(23) 

'SME'  means  a  micro,  small  or  medium  sized  enterprise  in  the  meaning  of 
Commission  Recommendation  2003/361/EC,  or  subsequent  amendments 
thereof; 

'accounting year, means, for the purposes of Part Three, the period from 1 July to 
30  June,  except  for  the  first  accounting  year,  in  respect  of  which  it  means  the 
period from the start date for eligibility of expenditure until 30 June 2015. The 
final accounting year shall be from 1 July 2022 to l June 2023; 

26

27

OJ L 134, 30.4.2004, p. 114. 
OJ L 210, 31.7.2006, p. 19. 

EN 

31 

   EN 

 
                                                 
 
 
(24) 

'financial year, means, for the purposes of Part Three, the period from 1 January 

to 31 December. 

PART TWO 

COMMON PROVISIONS APPLICABLE TO CSF FUNDS 

TITLE I 

Principles of Union support for the CSF Funds 

Article 3 

Scope 

The rules set out in this Part shall apply without prejudice to the provisions laid down in 
Part Three. 

Article 4 

General principles 

1. 

2. 

3. 

4 

5. 

The CSF Funds shall provide support, through multi-annual programmes, which 
complements  national,  regional  and  local  intervention,  to  deliver  the  Union 
strategy  for  smart,  sustainable  and  inclusive  growth,  taking  account  of  the 
Integrated  Guidelines,  the  country-specific  recommendations  under  Article 
121(2) of the Treaty and the relevant Council recommendations adopted under 
148(4) of the Treaty. 

The Commission and the Member States shall ensure that support from the CSF 
Funds  is  consistent  with  the  policies  and  priorities  of  the  Union  and 
complementary to other instruments of the Union. 

Support from the CSF Funds shall be implemented in close cooperation between 
the Commission and the Member States.  

Member  States  and  the  bodies  designated  by  them  for  that  purpose  shall  be 
responsible  for  implementing  programmes  and  carrying  out  their  tasks  under 
this Regulation and the Fund-specific rules at the appropriate territorial level, in 
accordance with the institutional, legal and financial framework of the Member 
State  and  subject  to  compliance  with  this  Regulation  and  the  Fund-specific 
rules. 

Arrangements  for  the  implementation  and  use  of  the  CSF  Funds,  and  in 
the 
particular 
implementation  of  the  CSF  Funds,  in  relation  to  the  reporting,  evaluation, 

the  financial  and  administrative  resources  required  for 

EN 

32 

   EN 

 
 
 
 
 
6. 

7. 

8. 

9. 

10. 

management and control shall take into account the principle of proportionality 
having regard to the level of support allocated. 

In  accordance  with  their  respective  responsibilities,  the  Commission  and  the 
Member States shall ensure coordination among the CSF Funds, and with other 
Union policies and instruments, including those in the framework of the Union's 
external action.  

The part of the Union budget allocated to the CSF Funds shall be implemented 
within  the  framework  of  shared  management  between  the  Member  States  and 
the  Commission,  in  accordance  with  Article 53(b)  of  Council  Regulation  (EC, 
Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable 
to  the  general  budget  of  the  European  Communities  (hereinafter  referred  to  as 
the  'Financial  Regulation')28,  with  the  exception  of  the  amount  of  the  CF 
transferred  to  the  Connecting  Europe  Facility  referred  to  in  Article  84(4)  and 
innovative  actions  at  the  initiative  of  the  Commission  under  Article  9  of  the 
ERDF Regulation, and technical assistance at the initiative of the Commission.  

The  Commission  and  the  Member  States  shall  apply  the  principle  of  sound 
financial management in accordance with Article 73 of the Financial Regulation.  

The  Commission  and  the  Member  States  shall  ensure  the  effectiveness  of  the 
CSF Funds, in particular through monitoring, reporting and evaluation.  

The Commission and the Member States shall carry out their respective roles in 
relation to the CSF Funds with the aim of reducing the administrative burden for 
beneficiaries. 

Article 5  

Partnership and multi-level governance 

1. 

For the Partnership Contract and each programme respectively, a Member State 
shall organise a partnership with the following partners: 

(a) 

competent regional, local, urban and other public authorities; 

(b) 

economic and social partners; and 

(c)  bodies  representing  civil  society,  including  environmental  partners,  non-
governmental organisations, and bodies responsible for promoting equality 
and non-discrimination. 

2. 

In  accordance  with  the  multi-level  governance  approach,  the  partners  shall  be 
involved  by  Member  States  in  the  preparation  of  Partnership  Contracts  and 
progress  reports  and  in  the  preparation,  implementation,  monitoring  and 
evaluation  of  programmes.  The  partners  shall  participate  in  the  monitoring 
committees for programmes. 

28

OJ L 25, 30.1.2003, p. 43. 

EN 

33 

   EN 

 
 
                                                 
 
3. 

4. 

The Commission shall be empowered to adopt delegated acts in accordance with 
Article 140 to provide for a European code of conduct that lays down objectives 
and  criteria  to  support  the  implementation  of  partnership  and  to  facilitate  the 
sharing  of  information,  experience,  results  and  good  practices  among  Member 
States.  

At  least  once  a  year,  for  each  CSF  Fund,  the  Commission  shall  consult  the 
organisations which represent the partners at Union level on the implementation 
of support from the CSF Funds.  

Article 6  

Compliance with Union and national law 

Operations financed by the CSF Funds shall comply with applicable Union and national 
law.  

Article 7 

Promotion of equality between men and women and non-discrimination 

The  Member  States  and  the  Commission  shall  ensure  that  equality  between  men  and 
women  and  the  integration  of  gender  perspective  is  promoted  in  the  preparation  and 
implementation of programmes. 

The  Member  States  and  the  Commission  shall  take  appropriate  steps  to  prevent  any 
discrimination  based  on  sex,  racial  or  ethnic  origin,  religion  or  belief,  disability,  age  or 
sexual orientation during the preparation and implementation of programmes.  

Article 8  

Sustainable development 

The  objectives  of  the  CSF  Funds  shall  be  pursued  in  the  framework  of  sustainable 
development  and  the  Union's  promotion  of  the  aim  of  protecting  and  improving  the 
environment,  as  set  out  in  Articles  11  and  19  of  the  Treaty,  taking  into  account  the 
polluter pays principle.  

The  Member  States  and  the  Commission  shall  ensure  that  environmental  protection 
requirements,  resource  efficiency,  climate  change  mitigation  and  adaptation,  disaster 
resilience  and  risk  prevention  and  management  are  promoted  in  the  preparation  and 
implementation of Partnership Contracts and programmes. Member States shall provide 
information on the support for climate change objectives using the methodology adopted 
by  the  Commission.  The  Commission  shall  adopt  this  methodology  by  means  of  an 
implementing  act.  The  implementing  act  shall  be  adopted  in  accordance  with  the 
examination procedure referred to in Article 143(3). 

EN 

34 

   EN 

 
 
 
 
TITLE II  

STRATEGIC APPROACH 

CHAPTER I 

Thematic objectives for the CSF Funds and Common Strategic 
Framework  

Article 9 

Thematic objectives 

Each  CSF  Fund  shall  support  the  following  thematic  objectives  in  accordance  with  its 
mission in order to contribute to the Union strategy for smart, sustainable and inclusive 
growth:  

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

strengthening research, technological development and innovation; 

enhancing  access  to,  and  use  and  quality  of,  information  and  communication 

technologies; 

enhancing  the  competitiveness  of  small  and  medium-sized  enterprises,  the 
agricultural sector (for the EAFRD) and the fisheries and aquaculture sector (for 
the EMFF); 

supporting the shift towards a low-carbon economy in all sectors; 

promoting climate change adaptation, risk prevention and management; 

protecting the environment and promoting resource efficiency; 

promoting  sustainable  transport  and  removing  bottlenecks  in  key  network 

infrastructures; 

promoting employment and supporting labour mobility; 

promoting social inclusion and combating poverty; 

(10) 

investing in education, skills and lifelong learning; 

(11) 

enhancing institutional capacity and an efficient public administration. 

Thematic objectives shall be translated into priorities specific to each CSF Fund and set 
out in the Fund-specific rules.  

EN 

35 

   EN 

 
 
 
 
Article 10  

Common Strategic Framework 

In order to promote the harmonious, balanced and sustainable development of the Union, 
a  Common  Strategic  Framework  shall  translate  the  objectives  and  targets  of  the  Union 
strategy for smart, sustainable and inclusive growth into key actions for the CSF Funds.  

Article 11 

Content 

The Common Strategic Framework shall establish: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

for each thematic objective, the key actions to be supported by each CSF Fund;  

the key territorial challenges for urban, rural, coastal and fisheries areas, as well 
as for areas with particular territorial features referred to in Articles 174 and 349 
of the Treaty, to be addressed by the CSF Funds; 

horizontal  principles  and  policy  objectives  for  the  implementation  of  the  CSF 
Funds; 

priority  areas  for  cooperation  activities  for  each  of  the  CSF  Funds,  where 
appropriate, taking account of macro-regional and sea basin strategies; 

coordination mechanisms among the CSF Funds, and with other relevant Union 
policies and instruments, including external instruments for cooperation; 

mechanisms for ensuring the coherence and consistency of the programming of 
the CSF Funds with the country-specific recommendations under Article 121(2) 
of the Treaty and the relevant Council recommendations adopted under 148(4) 
of the Treaty. 

Article 12  

Adoption and review 

The Commission shall be empowered to adopt a delegated act in accordance with Article 
142  on  the  Common  Strategic  Framework  within  3  months  of  the  adoption  of  this 
Regulation.  

Where there are major changes in the Union strategy for smart, sustainable and inclusive 
growth, the Commission shall review and, where appropriate, adopt, by delegated act in 
accordance with Article 142, a revised Common Strategic Framework.  

Within 6 months of adoption of a revised Common Strategic Framework, Member States 
shall  propose  amendments,  where  necessary,  to  their  Partnership  Contract  and 
programmes to ensure their consistency with the revised Common Strategic Framework. 

EN 

36 

   EN 

 
 
 
 
CHAPTER II 

Partnership Contract 

Article 13  

Preparation of the Partnership Contract 

1. 

2. 

3. 

4. 

Each  Member  State  shall  prepare  a  Partnership  Contract  for  the  period  from 
1 January 2014 to 31 December 2020.  

The  Partnership  Contract  shall  be  drawn  up  by  Member  States  in  cooperation 
with  the  partners  referred  to  in  Article  5.  The  Partnership  Contract  shall  be 
prepared in dialogue with the Commission.  

The  Partnership  Contract  shall  cover  all  support  from  the  CSF  Funds  in  the 
Member State concerned. 

Each  Member  State  shall  transmit  its  Partnership  Contract  to  the  Commission 
within 3 months of the adoption of the Common Strategic Framework. 

Article 14 

Content of the Partnership Contract  

The Partnership Contract shall set out: 

(a) 

arrangements  to  ensure  alignment  with  the  Union  strategy  for  smart, 
sustainable and inclusive growth, including: 

(i) 

an  analysis  of  disparities  and  development  needs  with  reference  to 
the  thematic  objectives  and  key  actions  defined  in  the  Common 
Strategic  Framework  and  the  targets  set  in  the  country-specific 
recommendations under Article 121(2) of the Treaty and the relevant 
Council  recommendations  adopted  under  Article  148(4)  of  the 
Treaty; 

(ii) 

a  summary  analysis  of  the  ex  ante  evaluations  of  the  programmes 
justifying the selection of the thematic objectives and the indicative 
allocations of the CSF Funds; 

(iii)  for each thematic objective, a summary of the main results expected 

for each of the CSF Funds; 

(iv) 

the  indicative  allocation  of  support  by  the  Union  by  thematic 
objective at national level for each of the CSF Funds, as well as the 

EN 

37 

   EN 

 
 
 
 
 
 
total  indicative  amount  of  support  foreseen  for  climate  change 
objectives; 

(v) 

the  main  priority  areas  for  cooperation,  taking  account,  where 
appropriate, of macro-regional and sea basin strategies; 

(vi)  horizontal principles and policy objectives for the implementation of 

the CSF Funds; 

(vii)  the  list  of  the  programmes  under  the  ERDF,  the  ESF  and  the  CF, 
except those under the European territorial cooperation goal, and of 
the  programmes  of  the  EAFRD  and the EMFF, with the respective 
indicative allocations by CSF Fund and by year; 

(b) 

an  integrated  approach  to  territorial  development  supported  by  the  CSF 
Funds setting out: 

(i) 

(ii) 

the  mechanisms  at  national  and  regional 
that  ensure 
coordination between the CSF  Funds and other Union and national 
funding instruments and with the EIB; 

level 

the arrangements to ensure an integrated approach to the use of the 
CSF  Funds  for  the  territorial  development  of  urban,  rural,  coastal 
and  fisheries  areas  and  areas  with  particular  territorial  features,  in 
particular  the  implementation  arrangements  for  Articles  28,  29  and 
99  accompanied,  where  appropriate,  by  a  list  of  the  cities  to 
participate in the urban development platform referred to in Article 7 
of the ERDF Regulation; 

(c) 

an integrated approach to address the specific needs of geographical areas 
most  affected  by  poverty  or  of  target  groups  at  highest  risk  of 
to  marginalised 
discrimination  or  exclusion,  with  special  regard 
communities,  where  appropriate, 
indicative  financial 
allocation for the relevant CSF Funds; 

including 

the 

(d) 

arrangements to ensure effective implementation, including: 

(i) 

(ii) 

a  consolidated  table  of  milestones  and  targets  established  in 
programmes  for  the  performance  framework  referred  to  in  Article 
19(1),  together  with  the  methodology  and  mechanism  to  ensure 
consistency across programmes and CSF Funds;  

a  summary  of  the  assessment  of  the  fulfilment  of  ex  ante 
conditionalities  and  of  the  actions  to  be  taken  at  national  and 
regional  level,  and  the  timetable  for  their  implementation,  where 
ex ante conditionalities are not fulfilled; 

(iii) 

the information required for ex ante verification of compliance with 
the  rules  on  additionality  as  they  are  defined  in  Part  Three  of  this 
Regulation; 

EN 

38 

   EN 

 
(iv) 

the  actions  taken  to  involve  the  partners  and  their  role  in  the 
preparation  of  the  Partnership  Contract  and  the  progress  report  as 
defined in Article 46 of this Regulation; 

(e) 

arrangements  to  ensure  efficient  implementation  of  the  CSF  Funds, 
including: 

(i) 

(ii) 

an  assessment  of  whether  there  is  a  need  to  reinforce  the 
administrative  capacity  of  the  authorities  and,  where  appropriate, 
beneficiaries, and actions to be taken for this purpose; 

a  summary  of  the  actions  planned  and  corresponding  targets  in  the 
programmes to achieve a reduction in the administrative burden for 
beneficiaries; 

(iii)  an assessment of the existing systems for electronic data exchange, 
and  the  actions  planned  to  permit  all  exchanges  of  information 
between  beneficiaries  and  authorities  responsible  for  management 
and control of programmes to be carried out solely by electronic data 
exchange. 

Article 15  

1. 

2. 

3. 

Adoption and amendment of the Partnership Contract 

The  Commission  shall  assess  the  consistency  of  the  Partnership  Contract  with 
this  Regulation,  with  the  Common  Strategic  Framework,  and  the  country-
specific  recommendations  under  Article  121(2)  of  the  Treaty  and  the  Council 
recommendations  adopted  under  148(4)  of  the  Treaty,  taking  account  of  the 
ex ante evaluations of the programmes, and shall make observations within three 
months of the date of submission of the Partnership Contract. The Member State 
shall provide all necessary additional information and, where appropriate, shall 
revise the Partnership Contract.  

The  Commission  shall  adopt  a  decision,  by  means  of  implementing  acts, 
approving the Partnership Contract no later than six months after its submission 
by the Member State, provided that any observations made by the Commission 
have  been  satisfactorily  taken  into  account.  The  Partnership  Contract  shall  not 
enter into force before 1 January 2014. 

Where a Member State proposes an amendment to the Partnership Contract, the 
Commission shall carry out an assessment in accordance with paragraph 1 and, 
where  appropriate,  shall  adopt  a  decision,  by  means  of  implementing  acts, 
approving the amendment. 

EN 

39 

   EN 

 
 
CHAPTER III 

Thematic concentration, ex ante conditionalities and 
performance review 

Article 16 

Thematic concentration  

Member States shall concentrate support, in accordance with the Fund-specific rules, on 
actions  bringing  the  greatest  added  value  in  relation  to  the  Union  strategy  for  smart, 
sustainable  and  inclusive  growth,  addressing  the  challenges  identified  in  the  country-
specific  recommendations  under  Article  121(2)  of  the  Treaty  and  the  relevant  Council 
recommendations  adopted  under  148(4)  of  the  Treaty,  and  taking  into  account  national 
and regional needs.  

Article 17 

Ex ante conditionalities 

1. 

2. 

3. 

4. 

5. 

Ex ante conditionalities shall be defined for each CSF Fund in the Fund-specific 
rules.  

Member  States  shall  assess  whether  the  applicable  ex  ante  conditionalities  are 
fulfilled. 

Where ex ante conditionalities are not fulfilled at the date of transmission of the 
Partnership Contract, Member States shall set out in the Partnership Contract a 
summary  of  the  actions  to  be  taken  at  national  or  regional  level  and  the 
timetable for their implementation, to ensure their fulfilment not later than two 
years  after  the  adoption  of  the  Partnership  Contract  or  by  31  December  2016, 
whichever is earlier . 

Member  States  shall  set  out  the  detailed  actions  relating  to  the  fulfilment  of 
ex ante conditionalities, including the timetable for their implementation, in the 
relevant programmes. 

The  Commission  shall  assess  the  information  provided  on  the  fulfilment  of 
ex ante  conditionalities  in  the  framework  of  its  assessment  of  the  Partnership 
Contract  and  programmes.  It  may  decide,  when  adopting  a  programme,  to 
suspend  all  or  part  of  interim  payments  to  the  programme  pending  the 
satisfactory completion of actions to fulfil an ex ante conditionality. The failure 
to complete actions to fulfil an ex ante conditionality by the deadline set out in 
the  programme  shall  constitute  a  basis  for  suspending  payments  by  the 
Commission.  

EN 

40 

   EN 

 
 
 
 
6. 

Paragraphs 1 to 5 shall not apply to programmes under the European territorial 
cooperation goal. 

Article 18  

Performance reserve 

5% of the resources allocated to each CSF Fund and Member State, with the exception of 
resources  allocated  to  the  European  territorial  cooperation  goal  and  to  Title  V  of  the 
EMFF  Regulation,  shall  constitute  a  performance  reserve  to  be  allocated  in  accordance 
with Article 20.  

Article 19 

Performance review 

1. 

2. 

1. 

2. 

3. 

The  Commission,  in  cooperation  with  the  Member  States,  shall  undertake  a 
review of the performance of the programmes in each Member State in 2017 and 
2019,  with  reference  to  the  performance  framework  set  out  in  the  respective 
Partnership  Contract  and  programmes.  The  method  for  establishing  the 
performance framework is set out in Annex I. 

The review shall examine the achievement of the milestones of the programmes 
at  the  level  of  priorities,  on  the  basis  of  the  information  and  the  assessments 
presented  in  the  progress  reports  submitted  by  the  Member  States  in  the  years 
2017 and 2019. 

Article 20 

Allocation of performance reserve 

Where  the  review  of  performance  undertaken  in  2017  reveals  that  a  priority 
within  a  programme  has  not  attained  its  milestones  set  for  the  year  2016,  the 
Commission shall make recommendations to the Member State concerned. 

On  the  basis  of  the  review  undertaken  in  2019,  the  Commission  shall  adopt  a 
decision, by means of implementing acts, to determine for each CSF Fund and 
Member  State  the  programmes  and  priorities  which  have  attained  their 
milestones. The Member State shall propose the attribution of the performance 
reserve for the programmes and priorities set out in that Commission decision. 
The Commission shall approve the amendment of the programmes concerned in 
accordance  with  Article  26.  Where  a  Member  State  fails  to  submit  the 
information  in  accordance  with  Article  46(2)  and  (3),  the  performance  reserve 
for the programmes or the priorities concerned shall not be allocated.  

Where there is evidence resulting from a performance review that a priority has 
failed  to  achieve  the  milestones  set  out  in  the  performance  framework,  the 
Commission  may  suspend  all  or  part  of  an  interim  payment  of  a  priority  of  a 
programme in accordance with the procedure laid down in Fund-specific rules. 

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4. 

Where  the  Commission,  based  on  the  examination  of  the  final  implementation 
report of the programme, establishes a serious failure to achieve the targets set 
out in the performance framework, it may apply financial corrections in respect 
of  the  priorities  concerned  in  accordance  with  Fund-specific  rules.  The 
Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 142 to establish criteria and the methodology for determining the level of 
financial correction to be applied. .  

5. 

Paragraph  2  shall  not  apply  to  programmes  under  the  European  territorial 
cooperation goal and to Title V of the EMFF Regulation. 

CHAPTER IV 

Macroeconomic conditionalities 

Article 21 

Conditionality linked to the coordination of Member States' economic policies 

1. 

The  Commission  may  request  a  Member  State  to  review  and  propose 
amendments to its Partnership Contract and the relevant programmes, where this 
is necessary: 

(a) 

(b) 

(c) 

to support the implementation of a Council recommendation, addressed to 
the  Member  State  concerned  and  adopted  in  accordance  with  Articles 
121(2)  and/or  148(4)  of  the  Treaty,  or  to  support  the  implementation  of 
measures  addressed  to  the  Member  State  concerned  and  adopted  in 
accordance with Article 136(1) of the Treaty;  

to support the implementation of a Council recommendation addressed to 
the  Member  State  concerned  and  adopted  in  accordance  with  Article 
126(7) of the Treaty;  

to support the implementation of a Council recommendation addressed to 
the Member State concerned and adopted in accordance with Article 7(2) 
of  Regulation  (EU)  No  …/2011  [on  the  prevention  and  correction  of 
macroeconomic imbalances], provided that these amendments are deemed 
necessary to help correct the macroeconomic imbalances; or 

(d) 

to maximise the growth and competitiveness impact of the available CSF 
Funds  pursuant  to  paragraph  4,  if  a  Member  State  meets  one  of  the 
following conditions: 

(i)  Union  financial  assistance  is  made  available  to  it  under  Council 

Regulation (EU) No 407/2010; 

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(ii)  medium-term  financial  assistance  is  made  available  to  it  in 

accordance with Council Regulation (EC) No 332/200229; 

(iii)  financial assistance in the form of an ESM loan is made available to 
it in accordance with the Treaty establishing the European Stability 
Mechanism. 

The  Member  State  shall  submit  a  proposal  for  amending  the  Partnership 
Contract  and  the  relevant  programmes  within  one  month.  If  necessary,  the 
Commission shall make observations within one month from the submission of 
the  amendments,  in  which  case  the  Member  State  shall  re-submit  its  proposal 
within one month. 

Where  the  Commission  has  not  made  observations  or  where  its  observations 
have  been  satisfactorily  taken  into  account,  the  Commission  shall  adopt  a 
decision approving the amendments to the Partnership Contract and the relevant 
programmes without undue delay. 

By derogation to paragraph 1, where financial assistance is made available to a 
Member State in accordance with paragraph 1(d) and is linked to an adjustment 
programme, the Commission may without any proposal from the Member State 
amend the Partnership Contract and the programmes with a view to maximising 
the growth and competitiveness impact of the available CSF Funds. To ensure 
the  relevant 
effective 
programmes,  the  Commission  shall  become  involved  in  their  management  as 
detailed  in  the  adjustment  programme  or  the  Memorandum  of  Understanding 
signed with the Member State concerned. 

the  Partnership  Contract  and 

implementation  of 

Where the Member State fails to respond to the Commission's request referred 
to  in  paragraph  1  or  does  not  reply  satisfactorily  within  one  month  to  the 
observations  of  the  Commission  referred  to  in  paragraph  2,  the  Commission 
may, within three months following its observations, adopt a decision, by means 
of implementing acts, suspending part or all of the payments for the programmes 
concerned. 

2. 

3. 

4. 

5. 

6. 

The  Commission  shall  suspend,  by  means  of  implementing  acts,  part  or  all  of 
the payments and commitments for the programmes concerned where:  

(a) 

(b) 

(c) 

the  Council  decides  that  the  Member  State  does  not  comply  with  the 
specific measures set out by the Council in accordance with Article 136(1) 
of the Treaty;  

the Council decides in accordance with Article 126(8) or Article 126(11) 
of  the  Treaty  that  the  Member  State  concerned  has  not  taken  effective 
action to correct its excessive deficit;  

the Council concludes in accordance with Article 8(3) of Regulation (EU) 
No  […]/2011  [on  the  prevention  and  correction  of  macroeconomic 
imbalances]  that,  on  two  successive  instances,  the  Member  State  has  not 

29 

OJ L 53, 23.2.2002, p. 1. 

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7. 

8. 

submitted  a  sufficient  corrective  action  plan  or  the  Council  adopts  a 
decision  declaring  non-compliance  in  accordance  with  Article  10(4)  of 
that Regulation;  

(d) 

(e) 

the Commission concludes that the Member State has not taken measures 
to implement the adjustment programme referred to in Council Regulation 
(EU)  No  407/2010  or  Council  Regulation  (EC)  No  332/2002  and  as  a 
consequence  decides  not  to  authorise  the  disbursement  of  the  financial 
assistance granted to this Member State; or 

the Board of Directors of the European stability mechanism concludes that 
the conditionality attached to an ESM financial assistance in the form of 
an  ESM  loan  to  the  concerned  Member  State  was  not  met  and  as  a 
consequence decides not to disburse the stability support granted to it. 

When  deciding  to  suspend  part  or  all  of  the  payments  or  commitments  in 
accordance with paragraphs 5 and 6 respectively, the Commission shall ensure 
that  the  suspension  is  proportionate  and  effective,  taking  into  account  the 
economic and social circumstances of the Member State concerned, and respects 
equality  of  treatment  between  Member  States,  in  particular  with  regard  to  the 
impact of the suspension on the economy of the Member State concerned. 

The  Commission  shall  without  delay  lift  the  suspension  of  payments  and 
commitments  where  the  Member  State  has  proposed  amendments  to  the 
Partnership  Contract  and  the  relevant  programmes  as  requested  by  the 
Commission, which the Commission has approved and, where applicable: 

(a) 

(b) 

(c) 

(d) 

the Council has decided that the Member State complies with the specific 
measures set out by the Council in accordance with Article 136(1) of the 
Treaty; 

the  excessive  deficit  procedure  is  held  in  abeyance  in  accordance  with 
Article  9  of  Regulation  (EC)  No  1467/97  or  the  Council  has  decided  in 
accordance with Article 126(12) of the Treaty to abrogate the decision on 
the existence of an excessive deficit;  

the  Council  has  endorsed  the  corrective  action  plan  submitted  by  the 
concerned  Member  State  in  accordance  with  Article  8(2)  of  Regulation 
(EU)  No  […]  [EIP  Regulation]  or  the  excessive  imbalance  procedure  is 
placed in a position of abeyance in accordance with Article 10(5) of that 
Regulation or the Council has closed the excessive imbalance procedure in 
accordance with Article 11 of that Regulation;  

the Commission has concluded that the Member State has taken measures 
to implement the adjustment programme referred to in Council Regulation 
(EU)  No  407/2010  or  Council  Regulation  (EC)  No  332/2002  and  as  a 
consequence  has  authorised  the  disbursement  of  the  financial  assistance 
granted to this Member State; or 

(e) 

the Board of Directors of the European stability mechanism has concluded 
that the conditionality attached to a financial assistance in the form of an 

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44 

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ESM loan to the concerned Member State is met and as a consequence has 
decided to disburse the stability support granted to it. 

At the same time, the Council shall decide, on a proposal from the Commission, 
to  re-budget  the  suspended  commitments  in  accordance  with  Article  8  of 
Council  Regulation  (EU)  No  […]  laying  down  the  multiannual  financial 
framework for the years 2014 to 2020. 

Article 22 

Increase in payments for Member State with temporary budgetary difficulties  

1. 

On the request of a Member State, interim payments and payments of the final 
balance  may  be  increased  by  10  percentage  points  above  the  co-financing  rate 
applicable to each priority for the ERDF, ESF and CF or to each measure for the 
EAFRD and the EMFF. The increased rate, which may not exceed 100%, shall 
apply  to  requests  for  payment  relating  to  the  accounting  period  in  which  the 
Member  State  has  submitted  its  request  and  in  subsequent  accounting  periods 
during which the Member State meets one of the following conditions: 

(a)  where  the  Member  State  concerned  has  adopted  the  euro,  it  receives 
macro-financial assistance from the Union under Council Regulation (EU) 
No 407/201030; 

(b)  where  the  Member  State  concerned  has  not  adopted  the  euro,  it  receives 
medium-term financial assistance in accordance with  Council Regulation 
(EC) No 332/200231; 

(c) 

financial assistance is made available to  it in accordance  with  the Treaty 
establishing the European Stability Mechanism signed on 11 July 2011. 

The  first  sub-paragraph  shall  not  apply  to  programmes  under  the  ETC 
Regulation. 

2. 

Notwithstanding  paragraph  1,  Union  support  through  interim  payments  and 
payments of the final balance shall not be higher than the public support and the 
maximum  amount  of  support  from  the  CSF  Funds  for  each  priority  for  the 
ERDF, ESF and CF, or for each measure for the EAFRD and the EMFF, as laid 
down in the decision of the Commission approving the programme. 

30

31

OJ L 118, 12.5.2010, p.1. 
OJ L 53, 23.2.2002, p. 1. 

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TITLE III  

PROGRAMMING 

CHAPTER I 

General provisions on the CSF Funds 

Article 23 

Preparation of programmes 

1. 

2. 

3. 

1. 

2. 

3. 

The CSF Funds shall be implemented through programmes in accordance with 
the Partnership Contract. Each programme shall cover the period from 1 January 
2014 to 31 December 2020. 

Programmes shall be drawn up by Member States or any authority designated by 
them, in cooperation with the partners.  

Programmes  shall  be  submitted  by  the  Member  States  at  the  same  time  as  the 
Partnership  Contract,  with  the  exception  of  European  territorial  cooperation 
programmes, which shall be submitted within six months of the approval of the 
Common Strategic Framework. All programmes shall be accompanied by the ex 
ante evaluation as set out in Article 48. 

Article 24 

Content of programmes  

Each programme shall set out a strategy for the programme's contribution to the 
Union  strategy  for  smart,  sustainable  and  inclusive  growth  consistent  with  the 
Common Strategic Framework and Partnership Contract. Each programme shall 
include  the  arrangements  to  ensure  effective,  efficient  and  coordinated 
implementation  of  the  CSF  Funds  and  actions  to  achieve  a  reduction  of 
administrative burden for beneficiaries. 

Each programme shall define priorities setting out specific objectives, financial 
appropriations  of  support  from  the  CSF  Funds  and  corresponding  national  co-
financing.  

Each  priority  shall  set  out  indicators  to  assess  progress  of  programme 
implementation towards achievement of objectives as the basis for monitoring, 
evaluation and review of performance. These shall include: 

(a) 

financial indicators relating to expenditure allocated; 

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46 

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(b)  output indicators relating to the operations supported; 

(c) 

result indicators relating to the priority. 

For each CSF Fund, the Fund-specific rules shall set out common indicators and 
may provide for programme-specific indicators. 

Each  programme,  except  those  which  cover  exclusively  technical  assistance, 
shall include a description of the actions to take into account the principles set 
out in Articles 7 and 8. 

Each programme, except those where technical assistance is undertaken under a 
specific programme, shall set out the indicative amount of support to be used for 
climate change objectives. 

Member States shall draft the programme in accordance with the Fund-specific 
rules.  

Article 25 

The procedure for adoption of programmes 

The  Commission  shall  assess  the  consistency  of  programmes  with  this 
Regulation, the Fund-specific rules, their effective contribution to the thematic 
objectives  and  the  Union  priorities  specific  to  each  CSF  Fund,  the  Common 
the  country-specific 
the  Partnership  Contract, 
Strategic  Framework, 
recommendations  under  Article  121(2)  of  the  Treaty  and  the  Council 
recommendations adopted under 148(4) of the Treaty, taking account of the ex 
ante evaluation. The assessment shall address, in particular, the adequacy of the 
programme  strategy,  the  corresponding  objectives,  indicators,  targets  and  the 
allocation of budgetary resources.  

The  Commission  shall  make  observations  within  three  months  of  the  date  of 
submission  of  the  programme.  The  Member  State  shall  provide  to  the 
Commission all necessary additional information and, where appropriate, revise 
the proposed programme. 

In accordance with the Fund-specific rules, the Commission shall approve each 
programme  no  later  than  six  months  following  its  formal  submission  by  the 
Member State(s), provided that any observations made by the Commission have 
been satisfactorily taken into account, but not before 1 January 2014 or before 
adoption by the Commission of a decision approving the Partnership Contract. 

4. 

5. 

6. 

1. 

2. 

3. 

Article 26 

Amendment of programmes 

1. 

Requests for amendment of programmes submitted by a Member State shall be 
duly  substantiated  and  shall  in  particular  set  out  the  expected  impact  of  the 

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47 

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changes  to  the  programme  on  achieving  the  Union  strategy  for  smart, 
sustainable  and  inclusive  growth  and  the  specific  objectives  defined  in  the 
programme,  taking  account  of  the  Common  Strategic  Framework  and  the 
Partnership Contract. They shall be accompanied by the revised programme and, 
where appropriate, a revised Partnership Contract. 

In  the  case  of  amendment  of  programmes  under  the  European  territorial 
cooperation goal, the relevant Partnership Contract shall not be amended. 

The  Commission  shall  assess  the  information  provided  in  accordance  with 
paragraph 1, taking account of the justification provided by the Member State. 
The Commission may make observations and the Member State shall provide to 
the Commission all necessary additional information. In accordance with Fund-
specific  rules,  the  Commission  shall  approve  requests  for  amendment  of  a 
programme  no  later  than  five  months  after  their  formal  submission  by  the 
Member  State  provided  that  any  observations  made  by  the  Commission  have 
been satisfactorily taken into account. The Commission shall, where necessary, 
amend  at  the  same  time  the  decision  approving  the  Partnership  Contract  in 
accordance with Article 15(3). 

Article 27 

Participation of the European Investment Bank 

The EIB may, at the request of Member States, participate in the preparation of 
the  Partnership  Contract,  as  well  as  in  activities  relating  to  the  preparation  of 
operations, in particular major projects, financial instruments and public-private 
partnerships. 

The  Commission  may  consult  the  EIB  before  the  adoption  of  the  Partnership 
Contract or the programmes. 

The  Commission  may  request  the  EIB  to  examine  the  technical  quality  and 
economic and financial viability of major projects and to assist it as regards the 
financial instruments to be implemented or developed. 

The Commission, in implementing the provisions of this Regulation, may award 
grants  or  service  contracts  to  the  EIB  covering  initiatives  implemented  on  a 
multi-annual  basis.  The  commitment  of  the  Union  budget  contributions  in 
respect of these grants or service contracts shall be effected annually. 

2. 

1. 

2. 

3. 

4. 

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48 

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CHAPTER II 
Community-led local development  

Article 28 

Community-led local development  

1. 

Community-led  local  development,  which  is  designated  as  LEADER  local 
development in relation to the EAFRD, shall be: 

(a) 

focused on specific sub-regional territories;  

(b) 

community-led,  by  local  action  groups  composed  of  representatives  of 
public  and  private  local  socio-economic  interests,  where  at  the  decision-
making level neither the public sector nor any single interest group shall 
represent more than 49 % of the voting rights; 

(c) 

carried  out  through  integrated  and  multi-sectoral  area-based  local 
development strategies;  

(d)  designed  taking  into  consideration  local  needs  and  potential,  and  include 
local  context,  networking  and,  where 

the 

innovative  features 
in 
appropriate, cooperation. 

2. 

3. 

4. 

5. 

Support  from  the  CSF  Funds  to  local  development  shall  be  consistent  and 
coordinated  between  the  CSF  Funds.  This  shall  be  ensured  inter  alia  through 
local 
coordinated  capacity-building,  selection,  approval  and  funding  of 
development strategies and local development groups. 

Where the selection committee for the local development strategies set up under 
Article  29(3)  determines  that  the  implementation  of  the  local  development 
strategy selected requires support from more than one Fund, a lead Fund may be 
designated. 

Where a lead Fund is designated, the running costs, animation and networking 
activities  for  the  local  development  strategy  shall  be  financed  from  the  lead 
Fund only.  

Local development supported by the CSF Funds shall be carried out under one 
or more priority of the programme. 

Article 29 

Local development strategies 

1. 

A local development strategy shall contain at least the following elements: 

(a) 

the definition of the area and population covered by the strategy;  

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49 

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(b) 

(c) 

an analysis of the development needs and potential of the area, including 
an analysis of strengths, weaknesses, opportunities and threats; 

a  description  of  the  strategy  and  its  objectives,  a  description  of  the 
integrated  and  innovative  character  of  the  strategy  and  a  hierarchy  of 
objectives,  including  clear  and  measurable  targets  for  outputs  or  results. 
The  strategy  shall  be  coherent  with  the  relevant  programmes  of  all  the 
CSF Funds involved; 

(d) 

a description of the process of community involvement in the development 
of the strategy; 

(e) 

an action plan demonstrating how objectives are translated into actions; 

(f) 

a  description  of  the  management  and  monitoring  arrangements  of  the 
strategy,  demonstrating  the  capacity  of  the  local  action  group  to 
implement  the  strategy  and  a  description  of  specific  arrangements  for 
evaluation; 

(g) 

the financial plan of the strategy, including the planned allocation of each 
of the CSF Funds. 

Member  States  shall  define  criteria  for  the  selection  of  local  development 
strategies. The Fund-specific rules may set out selection criteria. 

Local  development  strategies  shall  be  selected  by  a  committee  set  up  for  this 
purpose by the relevant managing authorities of the programmes. 

The  selection  and  approval  of  all  local  development  strategies  shall  be 
completed by 31 December 2015 at the latest. 

The decision to approve a local development strategy by the managing authority 
shall set out the allocations of each CSF Fund. It shall also set out the roles of 
the  authorities  responsible  for  the  implementation  of  the  relevant  programmes 
for all implementation tasks relating to the strategy.  

The Commission shall be empowered to adopt delegated acts in accordance with 
Article 142 concerning the definition of the area and population covered by the 
strategy referred in paragraph 1(a). 

2. 

3. 

4. 

5. 

6. 

Article 30 

Local action groups 

1. 

Local  action  groups  shall  design  and  implement  the  local  development 
strategies.  

Member States shall define the respective roles of the local action group and the 
authorities  responsible  for  the  implementation  of  the  relevant  programmes,  for 
all implementation tasks relating to the strategy. 

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2. 

The  managing  authority  shall  ensure  that  the  local  action  groups  either  select 
one  partner  within  the  group  as  a  lead  partner  in  administrative  and  financial 
matters, or come together in a legally constituted common structure. 

3. 

The tasks of local action groups shall include the following: 

(a)  building the capacity of local actors to develop and implement operations; 

(b)  drawing up a non-discriminatory and transparent selection procedure and 
criteria  for  the  selection  of  operations,  which  avoid  conflicts  of  interest, 
that  shall  ensure  that  at  least  50%  of  the  votes  in  selection  decisions  are 
from the non public sector partners, providing for the possibility of appeal 
against selection decisions and allowing selection by written procedure; 

(c) 

ensuring  coherence  with  the  local  development  strategy  when  selecting 
operations, by prioritising them according to their contribution to meeting 
the strategies' objectives and targets; 

(d)  preparing  and  publishing  calls  for  proposals  or  an  ongoing  project 

submission procedure, including definition of selection criteria;  

(e) 

receiving applications for support and assessing them; 

(f) 

selecting operations and fixing the amount of support and, where relevant, 
presenting  the  proposals  to  the  responsible  body  for  final  verification  of 
eligibility before approval; 

(g)  monitoring the implementation of the local development strategy and the 
operations supported and carrying out specific evaluation activities linked 
to the local development strategy. 

Article 31 

Support from the CSF Funds for local development 

Support for local development shall include: 

(a) 

(b) 

(c) 

(d) 

the costs of preparatory support;  

implementation of operations under the local development strategy; 

preparation  and  implementation  of  cooperation  activities  of  the  local  action 

group; 

running costs and animation of the local development strategy up to the limit of 
25  %  of  the  total  public  expenditure  incurred  within  the  local  development 
strategy. 

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TITLE IV 

FINANCIAL INSTRUMENTS 

Article 32 

Financial instruments 

1. 

The  CSF  Funds  may  be  used  to  support  financial  instruments  under  a 
programme,  including  when  organised  through  funds  of  funds,  in  order  to 
contribute  to  the  achievement  of  specific  objectives  set  out  under  a  priority, 
based  on  an  ex  ante  assessment  which  has  identified  market  failures  or  sub-
optimal investment situations, and investment needs. 

Financial instruments may be combined with grants, interest rate subsidies and 
guarantee  fee  subsidies.  In  this  case,  separate  records  must  be  maintained  for 
each form of financing. 

The Commission shall be empowered to adopt delegated acts in accordance with 
Article  142  laying  down  detailed  rules  concerning  the  ex  ante  assessment  of 
financial  instruments,  the  combination  of  support  provided  to  final  recipients 
through  grants,  interest  rate  subsidies,  guarantee  fee  subsidies  and  financial 
instruments,  additional  specific  rules  on  eligibility  of  expenditure  and  rules 
specifying the types of activities which shall not be supported through financial 
instruments. 

2. 

3. 

Final  recipients  supported  by  financial  instruments  may  also  receive  grants  or 
other assistance from a programme or from another instrument supported by the 
budget of the Union. In this case, separate records must be maintained for each 
source of financing. 

Contributions  in  kind  are  not  eligible  expenditure  in  respect  of  financial 
instruments,  except  for  contributions  of  land  or  real  estate  in  respect  of 
investments  with  the  objective  of  supporting  urban  development  or  urban 
regeneration,  where  the  land  or  real  estate  forms  part  of  the  investment.  Such 
contributions of land or real estate shall be eligible provided that the conditions 
in Article 59 are met. 

Article 33 

Implementation of financial instruments 

1. 

In  implementing  Article  32,  managing  authorities  may  provide  a  financial 
contribution to the following financial instruments: 

(a) 

financial instruments set up at Union level, managed directly or indirectly 
by the Commission; 

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(b) 

financial  instruments  set  up  at  national,  regional,  transnational  or  cross-
border  level,  managed  by  or  under  the  responsibility  of  the  managing 
authority. 

2. 

Title  VIII  of  the  Financial  Regulation  shall  apply  to  financial  instruments 
referred  to  in  paragraph  1(a).  Contributions  from  the  CSF  Funds  to  financial 
instruments under paragraph 1(a) shall be placed in separate accounts and used, 
in  accordance  with  the  objectives  of  the  respective  CSF  Funds,  to  support 
actions and final recipients consistent with the programme or programmes from 
which such contributions are made.  

3. 

For  financial  instruments  under  paragraph  1(b),  the  managing  authority  may 
provide a financial contribution to the following financial instruments: 

(a) 

(b) 

financial  instruments  complying  with  the  standard  terms  and  conditions 
laid  down  by  the  Commission,  by  means  of  implementing  acts  in 
accordance with the examination procedure referred to in Article 143(3); 

already  existing  or  newly  created  financial  instruments  which  are 
specifically  designed  to  achieve  the  intended  purpose  and  which  respect 
the applicable Union and national rules. 

The  Commission  shall  adopt  delegated  acts  in  accordance  with  Article  142 
laying  down  the  specific  rules  regarding  certain  types  of  financial  instruments 
referred  to  in  point  (b),  as  well  as  the  products  that  may  be  delivered  through 
such instruments. 

4. 

When  supporting  financial  instruments  referred  to  in  paragraph  1(b)  the 
managing authority may: 

(a) 

invest  in  the  capital  of  existing  or  newly  created  legal  entities,  including 
those financed from other CSF Funds, dedicated to implementing financial 
instruments  consistent  with  the  objectives  of  the  respective  CSF  Funds, 
which  will  undertake  implementations  tasks;  the  support  to  such 
investments  shall  be  limited  to  the  amounts  necessary  to  implement  new 
financial instruments consistent with the objectives of this Regulation; or  

(b) 

entrust implementation tasks to:  

(i) 

the European Investment Bank;  

(ii) 

international  financial  institutions  in  which  a  Member  State  is  a 
shareholder,  or  financial  institutions  established  in  a  Member  State 
aiming  at  the  achievement  of  public  interest  under  the  control  of  a 
public  authority,  selected  in  accordance  with  applicable  Union  and 
national rules;  

(iii)  a  body  governed  by  public  or  private  law  selected  in  accordance 

with applicable Union and national rules.  

(c)  undertake  implementation  tasks  directly,  in  the  case  of  financial 

instruments consisting solely of loans or guarantees. 

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The Commission shall be empowered to adopt delegated acts in accordance with 
Article  142  laying  down  rules  concerning  funding  agreements,  the  role  and 
responsibility of the entities to which the implementation tasks are entrusted, as 
well as management costs and fees. 

The  entities  referred  to  in  paragraph  4(b)(i)  and  (ii),  when  implementing 
financial  instruments  through  funds  of  funds,  may  further  entrust  part  of  the 
implementation  to  financial  intermediaries  provided  that  these  entities  ensure 
under their responsibility that the financial intermediaries satisfy the criteria laid 
down  in  Articles  57  and  131  (1),  (1a)  and  (3)  of  the  Financial  Regulation. 
Financial  intermediaries  shall  be  selected  on  the  basis  of  open,  transparent, 
proportionate and non-discriminatory procedures, avoiding conflicts of interests. 

The  entities  referred  to  in  paragraph  4(b)  to  which  implementation  tasks  have 
been entrusted shall open fiduciary accounts in their name and on behalf of the 
managing  authority.  The  assets  held  on  such  fiduciary  accounts  shall  be 
managed  in  accordance  with  the  principle  of  sound  financial  management 
following appropriate prudential rules and shall have appropriate liquidity. 

The Commission shall be empowered to adopt delegated acts in accordance with 
Article  142  laying  down  detailed  rules  concerning  specific  requirements 
regarding  the  transfer  and  management  of  assets  managed  by  the  entities  to 
which  implementation  tasks  are  entrusted,  as  well  as  conversion  of  assets 
between euro and national currencies. 

Article 34 

Implementation of certain financial instruments 

The bodies accredited in accordance with Article 64 shall not carry out on-the-
spot  verifications  of  operations  comprising  financial  instruments  implemented 
under  Article  33(1)(a).  They  shall  receive  regular  control  reports  from  the 
bodies entrusted with the implementation of these financial instruments. 

The bodies responsible for the audit of programmes shall not carry out audits of 
operations comprising financial instruments implemented under Article 33(1)(a) 
and of management and control systems relating to these instruments. They shall 
receive  regular  control  reports  from  the  auditors  designated  in  the  agreements 
setting up of these financial instruments. 

The Commission shall be empowered to adopt delegated acts in accordance with 
Article  142  concerning  the  arrangements  for  management  and  control  of 
financial  instruments  implemented  under  Articles  33(1)(a)  and  33(4)(b)(i),  (ii) 
and (iii). 

5. 

6. 

7. 

1. 

2. 

3. 

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1. 

2. 

3. 

4. 

5. 

1. 

Article 35 

Requests for payment including expenditure for financial instruments 

As regards  financial  instruments referred to in Article 33(1)(a), the request for 
payment shall include and separately disclose the total amount of support paid to 
the financial instrument. 

As regards financial instruments referred to in Article 33(1)(b) implemented in 
accordance with Article 33(4)(a) and (b), the total eligible expenditure presented 
in the request for payment shall include and separately disclose the total amount 
of support paid or expected to be paid to the financial instrument for investments 
in final recipients to be made over a pre-defined period of maximum two years, 
including management costs or fees.  

The  amount  determined  in  accordance  with  paragraph  2  shall  be  adjusted  in 
subsequent requests for payment, to take account of the difference between the 
amount of support previously paid to the financial instrument concerned, and the 
amounts effectively invested in final recipients, plus management costs and fees 
paid. These amounts shall be separately disclosed in the payment request.  

As regards financial instruments referred to in Article 33(1)(b) implemented in 
accordance with Article 33(4)(c), the request for payment shall include the total 
amount of the payments effected by the managing authority for investments in 
final  recipients.  These  amounts  shall  be  separately  disclosed  in  the  payment 
request.  

The  Commission  shall  be  empowered  to  adopt,  by  means  of  delegated  acts  in 
accordance  with  Article  142,  the  specific  rules  concerning  payments  and 
withdrawal  of  payments  to  financial  instruments  and  possible  consequences  in 
respect of requests of payments.  

Article 36 

Eligible expenditure at closure 

At closure of a programme, the eligible expenditure of the financial instrument 
shall  be  the  total  amount  effectively  paid  or,  in  the  case  of  guarantee  funds 
committed, by the financial instrument within the eligibility period indicated in 
Article 55(2), corresponding to: 

(a)  payments to final recipients; 

(b) 

resources  committed  for  guarantee  contracts,  whether  outstanding  or 
already come to maturity, in order to honour possible guarantee calls for 
losses, calculated according to a prudent ex ante risk assessment, covering 
a  multiple  amount  of  underlying  new  loans  or  other  risk-bearing 
instruments for new investments in final recipients;  

(c) 

capitalised interest rate subsidies or guarantee fee subsidies, due to be paid 
for a period not exceeding 10 years after the eligibility period laid down in 

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Article 55(2), used in combination with financial instruments, paid into an 
escrow  account  specifically  set  up  for  that  purpose,  for  effective 
disbursement after the eligibility period laid down in Article 55(2), but in 
respect  of 
instruments  disbursed  for 
investments  in  final  recipients  within  the  eligibility  period  laid  down  in 
Article 55(2);  

loans  or  other  risk-bearing 

(d) 

reimbursement of management costs incurred or payment of management 
fees of the financial instrument. 

2. 

the  case  of  equity-based 

In 
instruments  and  micro-credit,  capitalised 
management costs or fees due to be paid for a period not exceeding 5 years after 
the  eligibility  period  laid  down  in  Article  55(2),  in  respect  of  investments  in 
final  recipients  which  occurred  within  that  eligibility  period  and  which  cannot 
be  covered  by  Articles  37  and  38,  may  be  considered  as  eligible  expenditure 
when paid into an escrow account specifically set up for that purpose.  

3. 

The eligible expenditure determined in accordance with paragraphs 1 and 2 shall 
not exceed the sum of the: 

(i) 

total  amount  of  the  support  from  the  CSF  Funds  paid  to  the  financial 
instrument; and  

(ii) 

corresponding national co-financing.  

The Commission shall be empowered to adopt delegated acts in accordance with 
Article 142 concerning the establishment of a system of capitalisation of annual 
instalments for interest rate subsidies and guarantee fee subsidies.  

Article 37 

Interest and other gains generated by support from the CSF Funds to financial 
instruments 

Support  from  the  CSF  Funds  paid  to  financial  instruments  shall  be  placed  in 
interest-bearing  accounts  domiciled  within  financial  institutions  in  Member 
States  or  invested  on  a  temporary  basis  according  to  the  principle  of  sound 
financial management.  

Interest  and  other  gains  attributable  to  support  from  the  CSF  Funds  paid  to 
financial instruments shall be used for the same purposes as the initial support 
from the CSF Funds within the same financial instrument. 

The managing authority shall ensure that adequate records of the use of interest 
and other gains are maintained.  

4. 

1. 

2. 

3. 

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Article 38 

Re-use of resources attributable to the support from the CSF Funds until closure of 
the programme  

1. 

2. 

Capital  resources  paid  back  to  financial  instruments  from  investments  or  from 
the  release  of  resources  committed  for  guarantee  contracts,  which  are 
attributable  to  the  support  from  the  CSF  Funds,  shall  be  re-used  for  further 
investments through the same or other financial instruments, in accordance with 
the aims of the programme or programmes.  

Gains and other earnings or yields, including interest, guarantee fees, dividends, 
capital gains or any other income receipts generated by investments, attributable 
to the support from the CSF Funds to the financial instrument, shall be used for 
the following purposes, where applicable, up to the amounts necessary: 

(a) 

reimbursement  of  management  costs 
management fees of the financial instrument; 

incurred  and  payment  of 

(b)  preferential  remuneration  of  investors  operating  under  the  market 
economy  investor  principle,  who  provide  counterpart  resources  to  the 
support from the CSF Funds to the financial instrument or who co-invest 
at the level of final recipients; 

(c) 

further  investments  through  the  same  or  other  financial  instruments,  in 
accordance with the aims of the programme or programmes.  

3. 

The  managing  authority  shall  ensure  that  adequate  records  of  the  use  of  the 
resources and gains referred to in paragraphs 1 and 2 are maintained. 

Article 39 

Use of legacy resources after closure of the programme 

Member  States  shall  adopt  the  necessary  measures  to  ensure  that  the  capital  resources 
and gains and other earnings or yields attributable to the support from the CSF Funds to 
financial instruments are used in accordance with the aims of the programme for a period 
of at least 10 years after the closure of the programme. 

Article 40 

Report on Implementation of Financial Instruments 

1. 

2. 

The managing authority shall send to the Commission a specific report covering 
the  operations  comprising  financial  instruments  as  an  annex  to  the  annual 
implementation report.  

The report referred to in paragraph 1 shall include, for each financial instrument, 
the following information: 

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57 

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(a) 

identification  of  the  programme  and  of  the  priority  from  which  support 
from the CSF Funds is provided; 

(b)  description of the financial instrument and implementation arrangements; 

(c) 

(d) 

(e) 

identification  of  the  bodies  to  whom  implementation  tasks  have  been 
entrusted; 

total  amount  of  support  by  programme  and  priority  or  measure  to  the 
financial  instrument  included  in  requests  for  payment  submitted  to  the 
Commission; 

total  amount  of  support  paid  or  committed  in  guarantee  contracts  by  the 
financial  instrument  to  the  final  recipients  by  programme  and  priority  or 
measure included in requests for payment submitted to the Commission;  

(f) 

revenues of, and repayments to, the financial instrument; 

(g)  multiplier  effect  of  investments  made  by  the  financial  instrument  and 

value of investments and participations; 

(h) 

contribution  of  the  financial  instrument  to  the  achievement  of  the 
indicators of the programme and of the priority concerned. 

3. 

The Commission shall adopt, by means of implementing act, in accordance with 
the examination procedure referred to in Article 143(3), the uniform conditions 
concerning  the  monitoring  and  provision  of  monitoring  information  to  the 
Commission, including in respect of financial instruments referred to in Article 
33(1)(a). 

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TITLE V 

MONITORING AND EVALUATION 

CHAPTER I 

Monitoring 

SECTION I 

MONITORING OF PROGRAMMES 

Article 41 

Monitoring committee 

1. 

Within  three  months  of  the  date  of  notification  to  the  Member  State  of  the 
decision adopting a programme, the Member State shall set up a committee to 
monitor  implementation  of  the  programme,  in  agreement  with  the  managing 
authority.  

A Member State may set up a single monitoring committee for programmes co-
financed by the CSF Funds.  

2. 

Each monitoring committee shall draw up and adopt its rules of procedure. 

Article 42 

Composition of the monitoring committee 

1. 

2. 

3. 

The  monitoring  committee  shall  be  composed  of  representatives  of  the 
managing  authority  and  intermediate  bodies  and  of  representatives  of  the 
partners. Each member of the monitoring committee shall have a voting right. 

The  monitoring  committee  of  a  programme  under  the  European  territorial 
cooperation  goal  shall  also  include  representatives  of  any  third  country 
participating in that programme. 

The Commission shall participate in the work of the monitoring committee in an 
advisory capacity.  

If  the  EIB  contributes  to  a  programme,  it  may  participate  in  the  work  of  the 
monitoring committee in an advisory capacity. 

EN 

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4. 

The  monitoring  committee  shall  be  chaired  by  a  representative  of  the  Member 
State or of the managing authority. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

Article 43 

Functions of the monitoring committee 

The  monitoring  committee  shall  meet  at  least  once  a  year  and  shall  review 
implementation of the programme and progress towards achieving its objectives. 
In doing so, it shall have regard to the financial data, common and programme-
specific indicators, including changes in result indicators and progress towards 
quantified  target  values,  and  the  milestones  defined  in  the  performance 
framework.  

The  monitoring  committee  shall  examine  in  detail  all  issues  that  affect  the 
performance of the programme. 

The  monitoring  committee  shall  be  consulted  and  issue  an  opinion  on  any 
amendment of the programme proposed by the managing authority.  

The  monitoring  committee  may  issue  recommendations  to  the  managing 
authority regarding implementation of the programme and its evaluation. It shall 
monitor actions taken as a result of its recommendations.  

Article 44 

Implementation reports  

From  2016  until  and  including  2022,  the  Member  State  shall  submit  to  the 
Commission  an  annual  report  on  implementation  of  the  programme  in  the 
previous financial year.  

The  Member  State  shall  submit  a  final  report  on  implementation  of  the 
programme by 30 September 2023 for the ERDF, ESF and Cohesion Fund and 
an annual implementation report for the EAFRD and EMFF. 

Annual  implementation  reports  shall  set  out  information  on  implementation  of 
the programme and its priorities by reference to the financial data, common and 
programme-specific indicators and quantified target values, including changes in 
result indicators, and the milestones defined in the performance framework. The 
data  transmitted  shall  relate  to  values  for  indicators  for  fully  implemented 
operations and also for selected operations. They shall also set out actions taken 
to fulfil the ex ante conditionalities and any issues which affect the performance 
of the programme, and the corrective measures taken. 

The annual implementation report submitted in 2017 shall set out and assess the 
information set out in paragraph 2 and progress towards achieving the objectives 
of  the  programme,  including  the  contribution  of  the  CSF  Funds  to  changes  in 
result  indicators,  when  evidence  is  available  from  evaluations.  It  shall  also 

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assess the implementation of actions to take into account the principles set out in 
Articles 6, 7 and 8 and report on support used for climate change targets. 

implementation 

report  submitted 

The  annual 
final 
implementation  report  for  the  CSF  Funds  shall,  in  addition  to  the  information 
and assessment set out in paragraphs 2 and 3, include information on and assess 
progress towards achieving the objectives of the programme and its contribution 
to achieving the Union strategy for smart, sustainable and inclusive growth.  

in  2019  and 

the 

The  annual  implementation  reports  referred  to  in  paragraphs  1  to  4  shall  be 
admissible where they contain all the information required in those paragraphs. 
The  Commission  shall  inform  the  Member State within  15 working days  from 
the  date  of  receipt  of  the  annual  implementation  report  if  it  is  not  admissible, 
failing which it shall be deemed admissible. 

The Commission shall examine the annual implementation report and inform the 
Member State of its observations within two months of the receipt of the annual 
implementation report and within 5 months of receipt of the final report. Where 
the  Commission  does  not  provide  observations  within  these  deadlines,  the 
reports shall be deemed to be accepted. 

The Commission may issue recommendations to address any issues which affect 
the implementation of the programme. Where such recommendations are made, 
the managing authority shall inform the Commission within three months of the 
corrective measures taken. 

A citizen's summary of the contents of the annual and the final implementation 
reports shall be made public. 

Article 45 

Annual review meeting 

An  annual  review  meeting  shall  be  organised  every  year  from  2016  until  and 
including 2022 between the Commission and each Member State to examine the 
performance  of  each  programme,  taking  account  of  the  annual  implementation 
report  and  the  Commission's  observations  and  recommendations,  where 
applicable.  

The annual review meeting may cover more than one programme. In 2017 and 
2019,  the  annual  review  meeting  shall  cover  all  programmes  in  the  Member 
State  and  shall  also  take  account  of  the  progress  reports  submitted  by  the 
Member State in accordance with Article 46 in those years. 

The  Member  State  and  the  Commission  may  agree  not  to  organise  an  annual 
review meeting for a programme in years other than 2017 and 2019.  

The annual review meeting shall be chaired by the Commission.  

The  Member  State  shall  ensure  that  appropriate  follow-up  is  given  to  any 
comments of the Commission following the meeting. 

4. 

5. 

6. 

7. 

8. 

1. 

2. 

3. 

4. 

5. 

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SECTION II 

STRATEGIC PROGRESS 

Article 46 

Progress report 

1. 

By  30  June  2017  and  by  30  June  2019,  the  Member  State  shall  submit  to  the 
Commission a progress report on implementation of the Partnership Contract as 
at 31 December 2016 and 31 December 2018 respectively.  

2. 

The progress report shall set out information on and assess: 

(a) 

changes in the development needs in the Member State since the adoption 
of the Partnership Contract; 

(b)  progress towards achievement of the Union strategy for smart, sustainable 
and inclusive growth, in particular in respect of the milestones set out for 
each programme in the performance framework and the support used for 
climate change objectives; 

(c)  whether the actions taken to fulfil ex ante conditionalities not fulfilled at 
the date of adoption of the Partnership Contract have been implemented in 
accordance with the timetable established; 

(d) 

implementation  of  mechanisms  to  ensure  coordination  between  the  CSF 
Funds and other Union and national funding instruments and with the EIB; 

(e)  progress 

towards  achievement  of  priority  areas  established 

for 

cooperation; 

(f) 

(g) 

(h) 

actions  taken  to  reinforce  the  capacity  of  the  Member  State  authorities 
and,  where  appropriate,  beneficiaries  to  administer  and  use  the  CSF 
Funds; 

actions planned and corresponding targets in the programmes to achieve a 
reduction in the administrative burden for beneficiaries; 

the role of the partners referred in Article 5 in the implementation of the 
Partnership Contract. 

3. 

Where  the  Commission  determines,  within  three  months  of  the  date  of 
submission  of  the  progress  report  that  the  information  submitted  is  incomplete 
or  unclear,  it  may  request  additional  information  from  the  Member  State.  The 
Member State shall provide to the Commission the information requested within 
three  months  and,  where  appropriate,  shall  revise  the  progress  report 
accordingly.  

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4. 

5. 

1. 

2. 

3. 

In 2017 and 2019, the Commission shall prepare a strategic report summarising 
the progress reports of the Member States, which it shall submit to the European 
Parliament, the Council, the European Economic and Social Committee and the 
Committee of the Regions. 

In 2018 and 2020, the Commission shall include in its Annual Progress Report 
to  the  spring  meeting  of  the  European  Council  a  section  summarising  the 
strategic  report,  in  particular  with  regard  to  progress  made  towards  Union 
strategy for smart, sustainable and inclusive growth.  

CHAPTER II 

Evaluation 

Article 47 

 General Provisions 

Evaluations  shall  be  carried  out  to  improve  the  quality  of  the  design  and 
implementation  of  programmes,  as  well  as  to  assess  their  effectiveness, 
efficiency and impact. Impact of programmes shall be evaluated in accordance 
with  the  mission  of  the  respective  CSF  Funds  in  relation  to  the  targets  for  the 
Union  strategy  for  smart,  sustainable  and  inclusive  growth32  as  well  as  in 
relation  to  Gross  Domestic  Product  (GDP)  and  unemployment,  where 
appropriate.  

Member  States  shall  provide  the  resources  necessary  for  carrying  out 
evaluations, and shall ensure that procedures are in place to produce and collect 
the data necessary for evaluations, including data related to common and where 
appropriate programme-specific indicators. 

Evaluations shall be carried out by experts that are functionally independent of 
the  authorities  responsible  for  programme  implementation.  The  Commission 
shall provide guidance on how to carry out evaluations.  

4. 

All evaluations shall be made public in their entirety.  

Article 48  

Ex ante evaluation 

1. 

Member States shall carry out ex ante evaluations to improve the quality of the 
design of each programme. 

32

Ref. EU2020 headline targets.  

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2. 

Ex ante evaluations shall be carried out under the responsibility of the authority 
responsible  for  the  preparation  of  the  programmes.  They  shall  be  submitted  to 
the Commission at the same time as the programme, together with an executive 
summary. The Fund-specific rules may establish thresholds under which the ex 
ante evaluation may be combined with the evaluation for another programme. 

3. 

Ex ante evaluations shall appraise: 

(a) 

(b) 

(c) 

(d) 

the contribution to the Union strategy for smart, sustainable and inclusive 
growth,  having  regard  to  the  selected  thematic  objectives  and  priorities, 
taking into account national and regional needs; 

the  internal  coherence  of  the  proposed  programme  or  activity  and  its 
relation with other relevant instruments; 

the  consistency  of  the  allocation  of  budgetary  resources  with  the 
objectives of the programme; 

the  consistency  of  the  selected  thematic  objectives,  the  priorities  and 
corresponding  objectives  of  the  programmes  with  the  Common  Strategic 
Framework, 
the  country-specific 
recommendations  under  Article  121(2)  of  the  Treaty  and  the  Council 
recommendations adopted under Article 148(4) of the Treaty; 

the  Partnership  Contract  and 

(e) 

the relevance and clarity of the proposed programme indicators; 

(f) 

how the expected outputs will contribute to results; 

(g)  whether  the  quantified  target  values  for  indicators  are  realistic,  having 

regard to the support from the CSF Funds envisaged; 

(h) 

the rationale for the form of support proposed; 

(i) 

(j) 

the  adequacy  of  human  resources  and  administrative  capacity  for 
management of the programme; 

the  suitability  of  the  procedures  for  monitoring  the  programme  and  for 
collecting the data necessary to carry out evaluations; 

(k) 

the suitability of the milestones selected for the performance framework; 

(l) 

the adequacy of planned measures to promote equal opportunities between 
men and women and to prevent discrimination; 

(m) 

the adequacy of planned measures to promote sustainable development. 

4. 

The  ex  ante  evaluation  shall  incorporate,  where  appropriate,  the  requirements 
for Strategic Environmental Assessment set out in implementation of Directive 
2001/42/EC of the European Parliament and of the Council of 27 June 2001 on 

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the  assessment  of  the  effects  of  certain  plans  and  programmes  on  the 
environment33. 

Article 49 

Evaluation during the programming period 

1. 

2. 

3. 

An  evaluation  plan  shall  be  drawn  up  by  the  managing  authority  for  each 
programme and submitted in accordance with the Fund-specific rules. 

Member States shall ensure that appropriate evaluation capacity is available.  

During 
the  programming  period,  managing  authorities  shall  carry  out 
evaluations including evaluations to assess effectiveness, efficiency and impact, 
for each programme on the basis of the evaluation plan. At least once during the 
programming  period,  an  evaluation  shall  assess  how  support  from  the  CSF 
Funds has contributed to the objectives for each priority. All evaluations shall be 
examined by the monitoring committee and sent to the Commission.  

4. 

The  Commission  may  carry  out,  at  its  own  initiative,  evaluations  of 
programmes.  

Article 50 

Ex post evaluation  

The ex post evaluations shall be carried out by the Commission or by the Member States, 
in close cooperation. Ex post evaluations shall examine the effectiveness and efficiency 
of the CSF Funds and their contribution to the Union strategy for smart, sustainable and 
inclusive  growth  in  accordance  with  specific  requirements  established  in  the  Fund-
specific rules. Ex post evaluations shall be completed by 31 December 2023. 

TITLE VI  

TECHNICAL ASSISTANCE 

Article 51 

Technical assistance at the initiative of the Commission 

1. 

At the initiative of, or on behalf of the Commission, the CSF Funds may support 
the preparatory, monitoring, administrative and technical assistance, evaluation, 
audit and control measures necessary for implementing this Regulation. 

33

OJ L 197, 21.7.2001, p. 30 

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Those measures may include but not limited to: 

(a) 

assistance for project preparation and appraisal, including with the EIB;  

(b) 

(c) 

support  for  institutional  strengthening  and  administrative  capacity-
building for the effective management of the CSF Funds; 

studies  linked  to  the  Commission's  reporting  on  the  CSF  Funds  and  the 
cohesion report; 

(d)  measures  related  to  the  analysis,  management,  monitoring,  information 
exchange  and  implementation  of  the  CSF  Funds,  as  well  as  measures 
relating  to  the  implementation  of  control  systems  and  technical  and 
administrative assistance; 

(e) 

(f) 

(g) 

(h) 

evaluations,  expert  reports,  statistics  and  studies,  including  those  of  a 
general  nature,  concerning  the  current  and  future  operation  of  the  CSF 
Funds, which may be carried out where appropriate by the EIB; 

actions  to  disseminate  information,  support  networking,  carry  out 
communication  activities,  raise  awareness  and  promote  cooperation  and 
exchange  of  experience,  including  with  third  countries.  To  bring  about 
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 
actions  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; 

the installation, operation and interconnection of computerised systems for 
management, monitoring, audit, control and evaluation; 

actions to improve evaluation methods and the exchange of information on 
evaluation practices; 

(i) 

actions related to audit; 

(j) 

the  strengthening  of  national  and  regional  capacity  regarding  investment 
planning,  needs  assessment,  preparation,  design  and  implementation  of 
financial instruments, joint action plans and major projects, including joint 
initiatives with the EIB. 

Article 52 

Technical assistance of the Member States 

At  the  initiative  of  a  Member  State,  the  CSF  Funds  may  support  actions  for 
preparation,  management,  monitoring, 
and 
communication,  networking,  complaint  resolution,  and  control  and  audit.  The 
CSF  Funds  may  be  used  by  the  Member  State  to  support  actions  for  the 
reduction  of  administrative  burden  for  beneficiaries,  including  electronic  data 

information 

evaluation, 

66 

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1. 

EN 

 
 
exchange  systems,  and  actions  to  reinforce  the  capacity  of  Member  State 
authorities and beneficiaries to administer and use the CSF Funds. These actions 
may concern preceding and subsequent programming periods.  

2. 

The Fund-specific rules may add or exclude actions which may be financed by 
the technical assistance of each CSF Fund.  

TITLE VII 

FINANCIAL SUPPORT FROM THE CSF FUNDS 

CHAPTER I 

Support from the CSF Funds 

Article 53 

Determination of co-financing rates 

1. 

2 

The Commission decision adopting a programme shall fix the co-financing rate 
or rates and the maximum amount of support from the CSF Funds according to 
the Fund-specific rules. 

Technical assistance measures implemented at the initiative of, or on behalf of, 
the Commission may be financed at the rate of 100%.  

Article 54 

Revenue-generating operations  

1. 

Net revenue generated after completion of an operation over a specific reference 
period shall be determined in advance by one of the following methods: 

(a) 

(b) 

application  of  a  flat  rate  revenue  percentage  for  the  type  of  operation 
concerned; 

calculation of the current value of the net revenue of the operation, taking 
into  account  the  application  of  the  polluter-pays  principle  and,  if 
appropriate,  considerations  of  equity  linked  to  the  relative  prosperity  of 
the Member State concerned. 

EN 

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The eligible expenditure of the operation to be co-financed shall not exceed the 
current value of the investment cost of the operation less the current value of the 
net revenue, determined according to one of these methods. 

The Commission shall be empowered to adopt delegated acts in accordance with 
Article  142  concerning  the  definition  of  the  flat  rate  referred  to  in  point  (a) 
above.  

The  Commission  shall  adopt  the  methodology  under  point  (b)  by  means  of 
implementing acts in accordance with the examination procedure referred to in 
Article 143(3) 

Where  it  is  objectively  not  possible  to  determine  the  revenue  in  advance 
according  to  the  methods  set  out  in  paragraph  1,  the  net  revenue  generated 
within three years of the completion of an operation or by 30 September 2023, 
whichever  is  earlier,  shall  be  deducted  from  the  expenditure  declared  to  the 
Commission. 

Paragraphs  1  and  2  shall  apply  only  to  operations  whose  total  cost  exceeds 
EUR 1 000 000. 

This Article shall not apply to the ESF 

Paragraphs 1 and 2 shall not apply to operations subject to the rules on State aid 
or to support to or from financial instruments. 

CHAPTER II 

Eligibility of expenditure and durability  

Article 55  

Eligibility 

The eligibility of expenditure shall be determined on the basis of national rules, 
except where specific rules are laid down in or on the basis of this Regulation or 
the Fund-specific rules.  

Expenditure  shall  be  eligible  for  a  contribution  from  the  CSF  Funds  if  it  has 
been incurred and paid by a beneficiary between the date of submission of the 
programme  to  the  Commission  or  from  1 January  2014,  whichever  is  earlier, 
and  31 December  2022.  In  addition,  expenditure  shall  only  be  eligible  for  a 
contribution from the EAFRD and the EMFF if the relevant aid is actually paid 
by the paying agency between 1 January 2014 and 31 December 2022. 

In  the  case  of  costs  reimbursed  on  the  basis  of  Article  57(1)(b)  and  (c),  the 
actions constituting the basis for reimbursement shall be carried out between 1 
January 2014 and 31 December 2022.  

2. 

3. 

4. 

5. 

1. 

2. 

3. 

EN 

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4. 

5. 

6. 

7. 

8. 

Operations shall not be selected for support by the CSF Funds where they have 
been  physically  completed  or  fully  implemented  before  the  application  for 
funding under  the  programme is  submitted by the beneficiary to the managing 
authority,  irrespective  of  whether  all  related  payments  have  been  made  by  the 
beneficiary.  

This  Article  shall  be  without  prejudice  to  the  rules  on  eligibility  of  technical 
assistance at the initiative of the Commission set out in Article 51. 

Net revenue directly generated by an operation during its implementation which 
has not been taken into account at the time of approval of the operation, shall be 
deducted  from  the  eligible  expenditure  of  the  operation  in  the  final  payment 
claim  submitted  by  the  beneficiary.  This  rule  shall  not  apply  to  financial 
instruments and prizes.  

In  the  case  of  amendment  of  a  programme,  expenditure  becoming  eligible 
because of the amendment to the programme shall only be eligible from the date 
of submission to the Commission of the request for amendment.  

An operation may receive support from one or more CSF Funds and from other 
Union instruments, provided that the expenditure item included in a request for 
payment for reimbursement by one of the CSF Funds does not receive support 
from another Fund or Union instrument, or support from the same Fund under 
another programme. 

Article 56  

Forms of support  

The CSF Funds shall be used to provide support in the form of grants, prizes, repayable 
assistance and financial instruments, or a combination thereof.  

In the case of repayable assistance, the support repaid to the body that provided it, or to 
another competent authority of the Member State, shall be kept in a separate account and 
reused for the same purpose or in accordance with the objectives of the programme. 

Article 57  

Forms of grants 

1. 

Grants may take any of the following forms: 

(a) 

reimbursement of eligible costs actually incurred and paid, together with, 
where applicable, in-kind contributions and depreciation; 

(b) 

standard scales of unit costs; 

(c) 

lump sums not exceeding EUR 100 000 of public contribution; 

(d) 

flat-rate financing, determined by the application of a percentage to one or 
several defined categories of costs. 

EN 

69 

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2. 

3. 

4. 

The options referred to in paragraph 1 may be combined only where each covers 
different  categories  of  costs  or  where  they  are  used  for  different  projects 
forming a part of an operation or for successive phases of an operation. 

Where an operation or a project forming a part of an operation is implemented 
exclusively  through  the  procurement  of  works,  goods  or  services,  only 
paragraph  1(a)  shall  apply.  Where  the  procurement  within  an  operation  or 
project forming part of an operation is limited to certain categories of costs, all 
the options referred to in paragraph 1 may be applied. 

The amounts referred to in paragraph 1(b), (c) and (d) shall be established on the 
basis of: 

(a) 

a fair, equitable and verifiable calculation method based on: 

(i) 

statistical data or other objective information; or 

(ii) 

the  verified  historical  data  of  individual  beneficiaries  or  the 
application of their usual cost accounting practices; 

(b)  methods and corresponding scales of unit costs, lump sums and flat rates 
applicable  in  Union  policies  for  a  similar  type  of  operation  and 
beneficiary; 

(c)  methods and corresponding scales of unit costs, lump sums and flat rates 
applied under schemes for grants funded entirely by the Member State for 
a similar type of operation and beneficiary;  

(d) 

rates established by this Regulation or the Fund-specific rules. 

5. 

The document setting out the conditions for support for each operation shall set 
out the method to be applied for determining the costs of the operation and the 
conditions for payment of the grant.  

Article 58  

Flat rate financing for indirect costs for grants 

Where  the  implementation  of  an  operation  gives  rise  to  indirect  costs,  they  may  be 
calculated as a flat rate in one of the following ways:  

(a) 

(b) 

(c) 

a flat rate of up to 20 % of eligible direct costs, where the rate is calculated on 
the  basis  of  a  fair,  equitable  and  verifiable  calculation  method  or  a  method 
applied  under  schemes  for  grants  funded  entirely  by  the  Member  State  for  a 
similar type of operation and beneficiary; 

a flat rate of up to 15 % of eligible direct staff costs; 

a  flat  rate  applied  to  eligible  direct  costs  based  on  existing  methods  and 
corresponding rates, applicable in Union policies for a similar type of operation 
and beneficiary. 

EN 

70 

   EN 

 
The Commission shall be empowered to adopt delegated acts in accordance with 
Article  142  concerning  the  definition  of  the  flat  rate  and  the  related  methods 
referred to in point (c) above.  

Article 59 

Specific eligibility rules for grants 

1. 

Contributions  in  kind  in  the  form  of  provision  of  works,  goods,  services,  land 
and real estate for which no cash payment supported by invoices or documents 
of equivalent probative value has been made, may be eligible provided that the 
eligibility rules of the CSF Funds and the programme allow for it and that all the 
following conditions are fulfilled: 

(a) 

(b) 

(c) 

(d) 

(e) 

the  public  support  paid  to  the  operation  which  includes  contributions  in 
total  eligible  expenditure,  excluding 
kind  shall  not  exceed 
contributions in kind, at the end of the operation; 

the 

the  value  attributed  to  contributions  in  kind  does  not  exceed  the  costs 
generally accepted on the market in question; 

the  value  and  the  delivery  of  the  contribution  can  be  independently 
assessed and verified; 

 in the case of provision of land or real estate, the value is certified by an 
independent qualified expert or duly authorised official body and does not 
exceed the limit laid down in paragraph 3(b); 

in the case of contributions in kind in the form of unpaid work, the value 
of that work is determined taking into account the verified time spent and 
the rate of remuneration for equivalent work. 

2. 

Depreciation costs may be considered as eligible under the following conditions:  

(a) 

the eligibility rules of the programme allow for it; 

(b) 

the  amount  of  the  expenditure  is  duly  justified  by  supporting  documents 
having  equivalent  probative  value  to  invoices  where  reimbursed  in  the 
form referred to in Article 57(1)(a); 

(c) 

the costs relate exclusively to the period of support for the operation;  

(d)  public  grants  have  not  contributed  towards  the  acquisition  of  the 

depreciated assets. 

3. 

The following costs shall not be eligible for a contribution from the CSF Funds: 

(a) 

interest on debt; 

(b) 

the purchase of land not built on and land built on in the amount exceeding 
10%  of  the  total  eligible  expenditure  for  the  operation  concerned.  In 

EN 

71 

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exceptional and duly justified cases, a higher percentage may be permitted 
for operations concerning environmental conservation; 

(c)  value added tax. However, VAT amounts shall be eligible where they are 
not  recoverable  under  national  VAT  legislation  and  are  paid  by  a 
beneficiary  other  than  non-taxable  person  as  defined  in  the  first 
subparagraph  of  Article  13(1)  of  Directive  2006/112/EC,  provided  that 
such  VAT  amounts  are  not  incurred  in  relation  to  the  provision  of 
infrastructure. 

Article 60  

Eligibility of operations depending on location  

Operations supported by the CSF Funds, subject to the derogations referred to in 
paragraphs  2  and  3,  and  the  Fund-specific  rules,  shall  be  located  in  the  area 
covered  by  the  programme  under  which  they  are  supported  (the  'programme 
area'). 

The managing authority may accept that an operation is implemented outside the 
programme area but within the Union, provided that all the following conditions 
are satisfied: 

(a) 

the operation is for the benefit of the programme area; 

(b) 

(c) 

(d) 

the  total  amount  allocated  under  the  programme  to  operations  located 
outside the programme area does not exceed 10 % of the support from the 
ERDF, Cohesion Fund and EMFF at the level of the priority, or 3% of the 
support from the EAFRD at the level of the programme; 

the  monitoring  committee  has  given  its  agreement  to  the  operation  or 
types of operations concerned; 

the  obligations  of  the  authorities  for  the  programme  in  relation  to 
management,  control  and  audit  concerning  the  operation  are  fulfilled  by 
the authorities responsible for the programme under which that operation 
is  supported  or  they  enter  into  agreements  with  authorities  in  the  area  in 
which the operation is implemented provided that the conditions set out in 
paragraph 2 (a) and the obligations in relation to management, control and 
audit concerning the operation are fulfilled. 

For  operations  concerning  promotional  activities,  expenditure  may  be  incurred 
outside the Union provided that the conditions set out in paragraph 2 (a) and the 
obligations  in  relation  to  management,  control  and  audit  concerning  the 
operation are fulfilled. 

Paragraphs 1 to 3 shall not apply to programmes under the European territorial 
cooperation goal or to the ESF. 

1. 

2. 

3. 

4. 

EN 

72 

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Article 61 

Durability of operations 

1. 

An operation comprising  investment in infrastructure or productive investment 
shall  repay  the  contribution  from  the  CSF  Funds  if  within  five  years  from  the 
final payment to the beneficiary or within the period of time set out in the State 
aid rules, where applicable, it is subject to: 

(a) 

a cessation or relocation of a productive activity; 

(b) 

(c) 

a change in ownership of an item of infrastructure which gives to a firm or 
a public body an undue advantage; or 

a  substantial  change  affecting  its  nature,  objectives  or  implementation 
conditions which would result in undermining its original objectives. 

Sums unduly paid in respect of the operation shall be recovered by the Member 
State. 

Operations  supported  by  the  ESF  and  operations  supported  by  the  other  CSF 
Funds  that  are  not  investment  in  infrastructure  or  productive  investments  shall 
repay  the  contribution  from  the  Fund  only  where  they  are  subject  to  an 
obligation  for  maintenance  of  investment  under  the  applicable  State  aid  rules 
and where they undergo a cessation or relocation of a productive activity within 
the period laid down in those rules. 

Paragraphs 1 and 2 shall not apply to contributions to or by financial instruments 
or to any operation which undergoes cessation of a productive activity due to a 
non-fraudulent bankruptcy.  

Paragraphs  1  and  2  shall  not  apply  to  natural  persons  who  are  beneficiary  of 
investment  support  and,  after  the  completion  of  the  investment  operation, 
become  eligible  for  and  receive  support  under  the  EGF  (Regulation  [/2012] 
setting  a  European  Globalisation  Fund)  where  the  investment  concerned  is 
directly linked to the type of activity identified as eligible for EGF support. 

2. 

3. 

4. 

EN 

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TITLE VIII 

MANAGEMENT AND CONTROL 

CHAPTER I 

Management and control systems 

Article 62 

General principles of management and control systems 

Management and control systems shall provide for: 

(a) 

a  description  of  the  functions  of  each  body  concerned  in  management  and 
control, and the allocation of functions within each body; 

(b) 

compliance with the principle of separation of functions between and within such 

bodies; 

(c) 

(d) 

procedures for ensuring the correctness and regularity of expenditure declared; 

computerised  systems  for  accounting,  for  the  storage  and  transmission  of 

financial data and data on indicators, for monitoring and for reporting; 

(e) 

systems  for  reporting  and  monitoring  where  the  responsible  body  entrusts 

execution of tasks to another body; 

(f) 

arrangements  for  auditing  the  functioning  of  the  management  and  control 

systems; 

(g) 

(h) 

1. 

systems and procedures to ensure an adequate audit trail; 

the prevention, detection and correction of irregularities, including fraud, and the 

recovery of amounts unduly paid, together with any interest; 

Article 63 

Responsibilities of Member States 

Member  States  shall  fulfil  the  management,  control  and  audit  obligations  and 
assume  the  resulting  responsibilities  laid  down  in  the  rules  on  shared 
management set out in the Financial Regulation and the Fund-specific rules. In 
accordance  with  the  principle  of  shared  management,  Member  States  shall  be 
responsible for the management and control of programmes.  

EN 

74 

   EN 

 
 
 
 
 
 
2. 

3. 

4. 

1. 

2. 

3. 

4. 

5. 

Member  States  shall  ensure  that  their  management  and  control  systems  for 
programmes  are  set  up  in  accordance  with  the  provisions  of  the  Fund-specific 
rules and that the systems function effectively.  

Member  States  shall  establish  and  implement  a  procedure  for  the  independent 
examination  and  resolution  of  complaints  concerning 
the  selection  or 
implementation  of  operations  co-financed  by  the  CSF  Funds.  Member  States 
shall report the results of such examinations to the Commission upon request. 

All  official  exchanges  of  information  between  the  Member  State  and  the 
Commission  shall  be  carried  out  using  an  electronic  data  exchange  system 
established by the Commission. 

CHAPTER II 

Accreditation of management and control bodies 

Article 64 

Accreditation and coordination 

In  accordance  with  Article  56(3)  of  the  Financial  Regulation,  each  body 
responsible for the management and control of expenditure under the CSF Funds 
shall be accredited by formal decision of an accrediting authority at ministerial 
level. 

The  accreditation  shall  be  granted  subject  to  the  body  complying  with  the 
accreditation criteria on internal environment, control activities, information and 
communication, and monitoring laid down in the Fund-specific rules.. 

The accreditation shall be based on an opinion of an independent audit body that 
assesses the body’s compliance with the accreditation criteria. The independent 
audit body shall carry out its work in accordance with internationally accepted 
audit standards.  

The  accrediting  authority  shall  supervise  the  accredited  body  and  withdraw  its 
accreditation by formal decision if one or more of the accreditation criteria are 
no  longer  met,  unless  the  body  takes  the  necessary  remedial  actions  within  a 
period  of  probation  to  be  determined  by  the  accrediting  authority  according  to 
the  severity  of  the  problem.  The  accrediting  authority  shall  notify  the 
Commission  immediately  of  the  setting  of  any  probation  period  for  an 
accredited body and of any withdrawal decision.  

The Member State may designate a coordinating body whose responsibility is to 
liaise with and provide information to the Commission, promote the harmonised 
application of Union rules, establish a synthesis report providing an overview at 
national  level  of  all  management  declarations  and  the  audit  opinions  and 

EN 

75 

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coordinate the implementation of remedial actions as regards any deficiencies of 
a common nature.. . 

6. 

Without prejudice to the rules laid down in the Fund-specific rules, the bodies to 
be accredited under paragraph 1 shall be: 

(a) 

for the ERDF, ESF and the Cohesion Fund, the managing authorities and, 
where appropriate, the certifying authorities; 

(b) 

for the EAFRD and the EMFF, the paying agencies. 

CHAPTER III 

Commission powers and responsibilities 

Article 65 

Commission powers and responsibilities 

1. 

2. 

The  Commission  shall  satisfy  itself  on  the  basis  of  available  information, 
including  the  accreditation  procedure,  annual  management  declaration,  annual 
control  reports,  annual  audit  opinion,  annual  implementation  report  and  audits 
carried  out  by  national  and  Union  bodies,  that  the  Member  States  have  set  up 
management  and  control  systems  that  comply  with  this  Regulation  and  the 
Fund-specific  rules  and  that  these  systems  function  effectively  during  the 
implementation of programmes. 

Without prejudice to audits carried out by Member States, Commission officials 
or  authorised  Commission  representatives  may  carry  out  on-the-spot  audits  or 
checks  upon  giving  adequate  prior  notice.  The  scope  of  such  audits  or  checks 
may  include,  in  particular,  verification  of  the  effective  functioning  of 
management  and  control  systems  in  a  programme  or  a  part  thereof,  operations 
and  assessment  of 
the  sound  financial  management  of  operations  or 
programmes.  Officials  or  authorised  representatives  of  the  Member  State  may 
take part in such audits.  

Commission  officials  or  authorised  Commission 
representatives,  duly 
empowered  to  carry  out  on-the-spot  audits,  shall  have  access  to  all  records, 
documents  and  metadata,  irrespective  of the  medium  in  which  they  are  stored, 
relating  to  operations  supported  by  the  CSF  Funds  or  to  management  and 
control systems. Member States shall provide copies of such records, documents 
and metadata to the Commission upon request. 

The powers set out in this paragraph shall not affect the application of national 
provisions  which  reserve  certain  acts  for  agents  specifically  designated  by 
national  legislation.  Commission  officials  and  authorised  representatives  shall 
not  take  part,  inter  alia,  in  home  visits  or  the  formal  questioning  of  persons 

EN 

76 

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3. 

4. 

within the framework of national legislation. However, they shall have access to 
the information thus obtained. 

The Commission may require  a  Member State to take the actions necessary to 
ensure the effective functioning of their management and control systems or the 
correctness of expenditure in accordance with the Fund-specific rules. 

The Commission may require a Member State to examine a complaint submitted 
to the Commission concerning the selection or implementation of operations co-
financed  by  the  CSF  Funds  or  the  functioning  of  the  management  and  control 
system.  

TITLE IX 

FINANCIAL MANAGEMENT, CLEARANCE OF 
ACCOUNTS AND FINANCIAL CORRECTIONS, 
DECOMMITMENT 

CHAPTER I 

Financial management 
Article 66 

Budget commitments 

The  budget  commitments  of  the  Union  in  respect  of  each  programme  shall  be  made  in 
annual  instalments  for  each  Fund  during  the  period  between  1  January  2014  and  31 
December 2020. The decision of the Commission adopting a programme shall constitute 
the  financing  decision  within  the  meaning  of  Article  75(2)  of  the  Financial  Regulation 
and  once  notified  to  the  Member  State  concerned,  a  legal  commitment  within  the 
meaning of that Regulation.  

For  each  programme,  the  budget  commitment  for  the  first  instalment  shall  follow  the 
adoption of the programme by the Commission.  

The budget commitments for subsequent instalments shall be made by the Commission 
before  1  May  of  each  year,  on  the  basis  of  the  decision  referred  to  in  the  second 
subparagraph, except where Article 13 of the Financial Regulation applies.  

As  regards  the  performance  and  the  growth  and  competitiveness  reserves,  budget 
commitments  shall  follow  the  Commission  decision  approving  the  amendment  of  the 
programme.  

EN 

77 

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Article 67  

 Common rules for payments 

1. 

2. 

3. 

Payments  by  the  Commission  of  the  contribution  from  the  CSF  Funds  to  each 
programme shall be made in accordance with budget appropriations and subject 
to available funding. Each payment shall be posted to the earliest open budget 
commitment of the Fund concerned.  

Payments shall take the form of pre-financing, interim payments and payment of 
the annual balance, where applicable, and of the final balance.  

For forms of support under Article 57(1)(b), (c) and (d), the amounts paid to the 
beneficiary shall be regarded as eligible expenditure.  

Article 68 

Common rules for calculating interim payments, payment of the annual balance, 
where applicable, and payment of final balance 

The Fund-specific rules shall lay down rules for the calculation of the amount reimbursed 
as interim payments, payment of the annual balance, where applicable, and of the final 
balance.  This  amount  shall  be  a  function  of  the  specific  co-financing  rate  applicable  to 
the eligible expenditure.  

Article 69 

Requests for payment  

1. 

2. 

1. 

2. 

The specific procedure and information to be submitted for requests for payment 
shall be laid down in the Fund-specific rules. 

The request for payment to be submitted to the Commission shall provide all the 
information  necessary  for  the  Commission  to  produce  accounts  in  accordance 
with Article […] of the Financial Regulation. 

Article 70 

Accumulation of pre-financing and interim payments 

The  cumulative  total  of  pre-financing  and  interim  payments  and,  where 
applicable, the annual balance by the Commission shall not exceed 95 % of the 
contribution from the CSF Funds to the programme. 

When  the  ceiling  of  95 %  is  reached,  the  Member  States  shall  continue 
transmitting requests for payment to the Commission. 

EN 

78 

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Article 71 

Use of the euro 

Amounts set out in programmes submitted by Member States, forecasts of expenditure, 
statements  of  expenditure,  requests  for  payment,  annual  accounts  and  expenditure 
mentioned in the annual and final implementation reports shall be denominated in euro.  

Article 72 

Payment of initial pre-financing 

1. 

2. 

Following  the  Commission  decision  adopting  the  programme,  an  initial  pre-
financing  amount  for  the  whole  programming  period  shall  be  paid  by  the 
Commission.  The  initial  pre-financing  amount  shall  be  paid  in  instalments 
according  to  budgetary  needs.  The  instalments  shall  be  defined  in  the  Fund-
specific rules. 

Pre-financing  shall  be  used  only  for  making  payments  to  beneficiaries  in  the 
implementation  of  the  programme.  It  shall  be  made  available  without  delay  to 
the responsible body for this purpose. 

Article 73 

Clearance of initial pre-financing 

The  amount  paid  as  initial  pre-financing  shall  be  totally  cleared  from  the  Commission 
accounts at the latest when the programme is closed. 

Article 74  

Interruption of the payment deadline 

1. 

The payment deadline for an interim payment claim may be interrupted by the 
authorising officer by delegation within the meaning of the Financial Regulation 
for a maximum period of nine months if: 

(a) 

(b) 

following information provided by a national or Union audit body, there is 
evidence  to  suggest  a  significant  deficiency  in  the  functioning  of  the 
management and control system; 

the  authorising  officer  by  delegation  has  to  carry  out  additional 
verifications  following  information  coming  to  his  attention  alerting  him 
that  expenditure  in  a  request  for  payment  is  linked  to  an  irregularity 
having serious financial consequences; 

(c) 

there  is  a  failure  to  submit  one  of  the  documents  required  under  Article 
75(1). 

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2. 

The authorising officer by delegation may limit the interruption to the part of the 
expenditure covered by the payment claim affected by the elements referred to 
in paragraph 1. The authorising officer by delegation shall inform the Member 
State and the managing authority immediately of the reason for interruption and 
shall  ask  them  to  remedy  the  situation.  The  interruption  shall  be  ended  by  the 
authorising  officer  by  delegation  as  soon  as  the  necessary  measures  have  been 
taken. 

CHAPTER II 

Clearance of accounts and financial corrections  

Article 75 

Submission of information 

1. 

By  1  February  of  the  year  following  the  end  of  the  accounting  period,  the 
Member  State  shall  submit  to  the  Commission  the  following  documents  and 
information in accordance with Article 56 of the Financial Regulation: 

(a) 

(b) 

(c) 

(d) 

the certified annual accounts of the relevant bodies accredited pursuant to 
Article 64; 

the management declaration of assurance as to the completeness, accuracy 
and veracity of the annual accounts, the proper functioning of the internal 
control systems, as well as to the legality and regularity of the underlying 
transactions  and 
the  principle  of  sound  financial 
management; 

the  respect  of 

a summary report of all available audits and controls carried out, including 
an  analysis  of  systemic  or  recurrent  weaknesses,  as  well  as  corrective 
actions taken or planned; 

an  audit  opinion  by  the  designated  independent  audit  body  on  the 
management declaration of assurance covering the completeness, accuracy 
and veracity of the annual accounts, the proper functioning of the internal 
control systems, as well as on the legality and regularity of the underlying 
transactions  and 
the  principle  of  sound  financial 
management, accompanied by a control report setting out the findings of 
the  audits  carried  out  relating  to  the  accounting  year  covered  by  the 
opinion. 

the  respect  of 

2. 

Upon  request  by  the  Commission,  the  Member  State  shall  provide  further 
information  to  the  Commission.  If  a  Member  State  does  not  provide  the 
requested information by the deadline for its submission set by the Commission, 
the  Commission  may  take  its  decision  on  the  clearance  of  the  accounts  on  the 
basis of the information in its possession. 

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3. 

1. 

By  [15  February]  of  the  year  following  the  end  of  the  accounting  period,  the 
Member State shall submit to the Commission a synthesis report in accordance 
with the last subparagraph of Article 56(5) of the Financial Regulation. 

Article 76 

Clearance of accounts 

By  30  April  of  the  year  following  the  end  of  the  accounting  period,  the 
Commission  shall  decide,  in  accordance  with  the  Fund-specific  rules,  on  the 
clearance of the accounts of the relevant bodies accredited pursuant to Article 64 
for  each  programme.  The  clearance  decision  shall  cover  the  completeness, 
accuracy  and  veracity  of  the  annual  accounts  submitted  and  shall  be  without 
prejudice to any subsequent financial corrections. 

2. 

The  procedures  for  annual  clearance  shall  be  laid  down  in  the  Fund-specific 
rules. 

Article 77 

Financial corrections by the Commission  

1. 

The Commission shall make financial corrections by cancelling all or part of the 
Union  contribution  to  a  programme  and  effecting  recovery  from  the  Member 
State in order to exclude from Union financing expenditure which is in breach of 
applicable  Union  and  national  law,  including  in  relation  to  deficiencies  in  the 
management  and  control  systems  of  Member  States  which  have  been  detected 
by the Commission or the European Court of Auditors. 

2. 

A breach of applicable Union or national law shall lead to a financial correction 
only where one of the following conditions is met: 

(a) 

(b) 

the breach has or could have affected the selection of an operation by the 
responsible body for support by the CSF Funds; 

there  is  a  risk  that  the  breach  has  or  could  have  affected  the  amount  of 
expenditure declared for reimbursement by the Union budget. 

3. 

4. 

When  deciding  on  the  amount  of  a  financial  correction  under  paragraph  1,  the 
Commission  shall  take  account  of  the  nature  and  gravity  of  the  breach  of 
applicable  Union  or  national  law  and  its  financial  implications  for  the  Union 
budget.  

The  criteria  and  the  procedures  for  applying  financial  corrections  shall  be  laid 
down in the Fund-specific rules.  

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DECOMMITMENT 

Article 78 

Principles  

1. 

2. 

3. 

4. 

All programmes shall be submitted to a decommitment procedure established on 
the  basis  that  amounts  linked  to  a  commitment  which  are  not  covered  by  pre-
financing  or  a  request  for  payment  within  a  defined  period  shall  be 
decommitted.  

The  commitment  related  to  the  last  year  of  the  period  will  be  decommitted 
according to the rules to be followed for the closure of the programmes. 

The  Fund-specific  rules  shall  specify 
decommitment rule for each CSF Fund. 

the  precise  application  of 

the 

That  part  of  commitments  still  open  shall  be  decommitted  if  any  of  the 
documents  required  for  the  closure  has  not  been  submitted  to  the  Commission 
by the deadlines established in the Fund-specific rules. 

Article 79 

Exception to the decommitment  

1. 

The amount concerned by decommitment shall be reduced by the amounts that 
the responsible body has not been able to declare to the Commission because of: 

(a) 

(b) 

operations suspended by a legal proceeding or by an administrative appeal 
having suspensory effect; or 

reasons of force majeure seriously affecting implementation of all or part 
of  the  programme.  The  national  authorities  claiming  force  majeure  shall 
demonstrate  the  direct  consequences  of  the  force  majeure  on  the 
implementation of all or part of the programme 

The reduction may be requested once if the suspension or force majeure lasted 
up  to  one  year,  or  several  times  corresponding  to  the  duration  of  the  force 
majeure or the number of years between the date of the legal or administrative 
decision  suspending  the  implementation  of  the  operation  and  the  date  of  the 
final legal or administrative decision.  

2. 

By 31 January, the Member State shall send to the Commission information on 
the  exceptions  referred  to  in  paragraph 1  for  the  amount  to  be  declared  by  the 
end of preceding year.  

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Article 80 

Procedure  

1. 

2. 

3. 

4. 

The Commission shall inform the Member State and the managing authority in 
good  time  whenever  there  is  a  risk  of  application  of  decommitment  under 
Article 78. 

On  the  basis  of  the  information  it  has  on  31  January,  the  Commission  shall 
inform  the  Member  State  and  the  managing  authority  of  the  amount  of  the 
decommitment resulting from the information in its possession. 

The  Member  State  shall  have  two  months  to  agree  to  the  amount  to  be 
decommitted or to submit its observations. 

By  30  June,  the  Member  State  shall  submit  to  the  Commission  a  revised 
financing plan reflecting for the financial year concerned the reduced amount of 
support  over  one  or  several  priorities  of  the  programme.  Failing  such 
submission,  the  Commission  shall  revise  the  financing  plan  by  reducing  the 
contribution  from  the  CSF  Funds  for  the  financial  year  concerned.  This 
reduction shall be allocated to each priority proportionately. 

5. 

The Commission  shall  amend the decision  adopting  the  programme,  by  means 
of implementing acts, not later than 30 September. 

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PART THREE 

GENERAL PROVISIONS APPLICABLE TO THE ERDF, 
THE ESF AND THE CF 

TITLE I 

OBJECTIVES AND THE FINANCIAL FRAMEWORK 

CHAPTER I 

Mission, goals and geographical coverage of support 

Article 81  

Mission and goals 

1. 

The Funds shall contribute to developing and pursuing the actions of the Union 
leading  to  strengthening  of  its  economic,  social  and  territorial  cohesion  in 
accordance with Article 174 of the Treaty.  

The  actions  supported  by  the  Funds  shall  contribute  to  the  Union  strategy  for 
smart, sustainable and inclusive growth. 

2. 

To this end, the following goals shall be pursued: 

(a) 

'Investment  for  growth  and  jobs'  in  Member  States  and  regions,  to  be 
supported by all the Funds; and 

(b) 

'European territorial cooperation', to be supported by the ERDF. 

Article 82  

Investment for growth and jobs  

1. 

2. 

The Structural Funds shall support the Investment for growth and jobs goal in all 
regions corresponding to level 2 of the common classification of territorial units 
for statistics (hereinafter referred to as 'NUTS level 2') established by Regulation 
(EC) No 1059/2003.  

Resources for the Investment for growth and jobs goal shall be allocated among 
the following three categories of NUTS level 2 regions:  

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(a) 

(b) 

less  developed  regions,  whose  GDP  per  capita  is  less  than  75  %  of  the 
average GDP of the EU-27;  

transition regions, whose GDP per  capita is between 75% and 90% of the 
average GDP of the EU-27;  

(c)  more  developed  regions,  whose  GDP  per  capita  is  above  90 %  of  the 

average GDP of the EU-27. 

The  three  categories  of  regions  are  determined  on  the  basis  of  how  their  GDP 
per capita, measured in purchasing power parities and calculated on the basis of 
Union  figures  for  the  period  2006  to  2008,  relates  to  the  average  GDP  of  the 
EU-27 for the same reference period. 

The  Cohesion  Fund  shall  support  those  Member  States  whose  gross  national 
income (GNI) per capita, measured in purchasing power parities and calculated 
on the basis of Union figures for the period 2007 to 2009, is less than 90 % of 
the average GNI per capita of the EU-27 for the same reference period.  

The  Member  States  eligible  for  funding  from  the  Cohesion  Fund  in  2013,  but 
whose  nominal  GNI  per  capita  exceeds  90%  of  the  average  GNI  per  capita  of 
the EU-27 as calculated under the first sub-paragraph shall receive support from 
the Cohesion Fund on a transitional and specific basis.  

Immediately following the entry into force of this Regulation, the Commission 
shall  adopt  a  decision  by  implementing  act  setting  out  the  list  of  regions 
fulfilling the criteria of the three categories of regions referred to in paragraph 2 
and of Member States fulfilling the criteria of paragraph 3. Those implementing 
acts shall be adopted in accordance with the examination procedure referred to 
in Article 143(3). This list shall be valid from 1 January 2014 to 31 December 
2020. 

In  2017,  the  Commission  shall  review  the  eligibility  of  Member  States  for  the 
Cohesion Fund on the basis of Union GNI figures for the period 2013 to 2015 
for  the  EU-27.  Those  Member  States  whose  nominal  GNI  per  capita  exceeds 
90% of the average GNI per capita of the EU-27, shall receive support from the 
Cohesion Fund on a transitional and specific basis. 

3. 

4. 

5. 

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CHAPTER II  

Financial framework  

Article 83  

Global resources  

1. 

2. 

3. 

1. 

The  global  resources  available  for  budgetary  commitment  from  the  Funds  for 
the  period  2014  to  2020  shall  be  EUR  336  020  492  848  at  2011  prices,  in 
accordance with the annual breakdown shown in Annex II. For the purposes of 
programming and subsequent inclusion in the general budget of the Union, the 
amount of global resources shall be indexed at 2 % per year. 

The Commission shall adopt a decision, by means of implementing acts, setting 
out  the  annual  breakdown  of  the  global  resources  by  Member  State,  without 
prejudice to paragraph 3 of this Article and Article 84(7).  

0,35  %  of  the  global  resources  shall  be  allocated  to  technical  assistance  at  the 
initiative of the Commission. 

Article 84 

Resources for Investment for growth and jobs and for European territorial 
cooperation 

Resources for the Investment for growth and jobs goal shall amount to 96,52 % 
of  the  global  resources  (i.e.,  a  total  of  EUR 324 320 492 844)  and  shall  be 
allocated as follows: 

(a)  50,13 % (i.e., a total of EUR 162 589 839 384) for less developed regions;  

(b)  12,01 % (i.e., a total of EUR 38 951 564 661) for transition regions; 

(c)  16,39 % (i.e., a total of EUR 53 142 922 017) for more developed regions;  

(d)  21,19  %  (i.e.,  a  total  of  EUR  68  710  486  782)  for  Member  States 

supported by the Cohesion Fund; 

(e)  0,29  %  (i.e.,  a  total  of  EUR  925  680  000)  as  additional  funding  for  the 
outermost  regions  identified  in  Article  349  of  the  Treaty  and  the  NUTS 
level 2 regions fulfilling the criteria laid down in Article 2 of Protocol No 
6 to the Treaty of Accession of Austria, Finland and Sweden.  

All regions whose GDP per capita for the 2007-2013 period was less than 75% 
of the average of the EU-25 for the reference period but whose GDP per capita 

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is above 75% of the GDP average of the EU-27 shall receive an allocation under 
the Structural Funds equal to at least two thirds of their 2007-2013 allocation. 

2. 

The following criteria shall be used for the breakdown by Member State: 

(a) 

(b) 

eligible  population, 
unemployment rate for less developed regions and transition regions; 

regional  prosperity,  national  prosperity  and 

eligible  population,  regional  prosperity,  unemployment  rate,  employment 
rate, educational level and population density for more developed regions;  

(c)  population, national prosperity and surface area for the Cohesion Fund. 

3. 

4. 

At least 25 % of the Structural Funds resources for less developed regions, 40% 
for  transition  regions  and  52%  for  more  developed  regions  in  each  Member 
State  shall  be  allocated  to  the  ESF.  For  the  purposes  of  this  provision,  the 
support  to  a  Member  State  through  the  [Food  for  deprived  people  instrument] 
shall be considered as part of the share of Structural Funds allocated to the ESF. 

The  support  from  the  Cohesion  Fund  for  transport  infrastructure  under  the 
Connecting Europe Facility shall be EUR 10 000 000 000. 

The  Commission  shall  adopt  a  decision  by  implementing  act  setting  out  the 
amount  to  be  transferred  from  each  Member  State's  Cohesion  Fund  allocation 
for the whole period. The Cohesion Fund allocation of each Member State shall 
be reduced accordingly. 

The annual appropriations corresponding to the support from the Cohesion Fund 
mentioned in the first subparagraph shall be entered in the relevant budget lines 
of the Connecting Europe Facility as from the 2014 budgetary exercise. 

Support from the Cohesion Fund under the Connecting Europe Facility shall be 
implemented in accordance with Article [13] of Regulation (EU) […]/2012 on 
establishing  the  Connecting  Europe  Facility34  in  respect  of  projects  listed  in 
Annex  1  to  that  Regulation,  giving  greatest  possible  priority  to  projects 
respecting the national allocations under the Cohesion Fund. 

5. 

The support from the Structural Funds for [food for deprived people] under the 
Investment for Growth and Jobs shall be EUR 2 500 000 000. 

The  Commission  shall  adopt  a  decision  by  implementing  act  setting  out  the 
amount to be transferred from each Member State's Structural Funds allocation 
for the whole period in each Member State. The Structural Funds allocation of 
each Member State shall be reduced accordingly. 

The  annual  appropriations  corresponding  to  the  support  from  the  Structural 
Funds  mentioned  in  the  first  subparagraph  shall  be  entered  in  the  relevant 
budget  lines  of  the  [food  for  deprived  people  instrument]  with  the  2014 
budgetary exercise. 

34 

OJ… 

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6. 

7. 

8. 

1. 

2. 

5% of the resources for the Investment for growth and jobs goal shall constitute 
the performance reserve to be allocated in accordance with Article 19. 

0,2% of the ERDF resources for the Investment for growth and jobs goal shall 
be allocated to innovative actions at the initiative of the Commission in the area 
of sustainable urban development. 

Resources for the European territorial cooperation goal shall amount to 3,48 % 
of the global resources available for budgetary commitment from the Funds for 
the period 2014 to 2020 (i.e., a total of EUR 11 700 000 004). 

Article 85 

Non-transferability of resources  

The  total  appropriations  allocated  to  each  Member  State  in  respect  of  less 
developed  regions,  transition  regions  and  more  developed  regions  shall  not  be 
transferable between each of those categories of regions.  

By  way  of  derogation  from  paragraph  1,  the  Commission  may  accept,  in  duly 
justified circumstances which are linked to the implementation of one or more 
thematic objectives, a proposal by a Member State in its first submission of the 
Partnership  Contract  to  transfer  up  to  2%  of  the  total  appropriation  for  a 
category of regions to other categories of regions. 

Article 86 

Additionality  

1. 

For the purposes of this Article the following definitions apply: 

(1) 

(2) 

(3) 

'public or equivalent structural expenditure' means the Gross Fixed Capital 
Formation  of  the  General  Government  reported  in  the  Stability  and 
Convergence  Programmes  prepared  by  Member  States  according  to 
Council  Regulation  (EC)  No  1466/9735  to  present  their  medium  term 
budgetary strategy;  

'fixed  assets'  means  all  tangible  or  intangible  assets  produced  as  outputs 
from  processes  of  production  that  are  themselves  used  repeatedly,  or 
continuously, in processes of production for more than one year; 

 gross  fixed  capital  formation'36  means  all  the  resident  producers' 
acquisitions,  less  disposals,  of  fixed  assets  during  a  given  period  and 
certain  additions  to  the  value  of  non-produced  assets  realised  by  the 
productive activity of producer or institutional units; 

35

36

OJ L 209, 2.8.1997, p.1. 
As  defined  by  the  European  System  of  Accounts  (ESA) and  transmitted  by  all  27  Member  States  in  their  Stability  and 
Convergence Programmes. 

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(4) 

 'general  government'  means  the  totality  of  institutional  units  which,  in 
addition  to  fulfilling  their  political  responsibilities  and  their  role  of 
economic  regulation,  produce  principally  non-market  services  (possibly 
goods)  for  individual  or  collective  consumption  and  redistribute  income 
and wealth37. 

Support  from  the  Funds  for  the  Investment  for  growth  and  jobs  goal  shall  not 
replace public or equivalent structural expenditure by a Member State. 

Member  States  shall  maintain  for  the  period  2014-2020  a  level  of  public  or 
equivalent structural expenditure at least equal to the reference level set in the 
Partnership Contract. 

The  reference  level  on  average  per  year  of  public  or  equivalent  structural 
expenditure for the years 2014-2020 shall be set in the Partnership Contract, on 
the  basis  of  an  ex  ante  verification  by  the  Commission  of  the  information 
submitted  in  the  Partnership  Contract,  having  regard  to  the  average  level  of 
public or equivalent structural expenditure per year in the period 2007-2013. 

The  Commission  and  the  Member  States  shall  take  into  account  the  general 
macroeconomic  conditions  and  specific  or  exceptional  circumstances,  such  as 
privatisations  or  an  exceptional  level  of  public  or  equivalent  structural 
expenditure  by  a  Member  State  in  the  period  2007-2013.  They  shall  also  take 
into  account  changes  in  the  national  allocations  from  the  Structural  Funds  as 
compared to the years 2007-2013. 

Verification of whether the level of public or equivalent structural expenditure 
under the Investment for growth and jobs goal has been maintained for the period 
shall  only  take  place  in  those  Member  States  in  which  less  developed  and 
transition regions cover at least 15 % of the total population. 

In those Member States in which less developed and transition regions cover at 
least 70 % of the population, the verification shall take place at national level. 

In  those  Member  States  in  which  less  developed  and  transition  regions  cover 
more than 15 % and less than 70 % of the population, the verification shall take 
place at national and regional level. For that purpose, those Member States shall 
provide  to  the  Commission  information  about  the  expenditure  in  the  less 
developed and transition regions at each stage of the verification process.  

The  verification  of  whether  the  level  of  public  or  equivalent  structural 
expenditure under the Investment for growth and jobs goal has been  maintained 
shall  take  place  at  the  time  of  submission  of  the  Partnership  Contract  (ex  ante 
verification), in 2018 (mid-term verification), and in 2022 (ex post verification). 

The detailed rules relating to the verification of additionality are set out in point 
2 of Annex III. 

Explanation:  The  general  government  sector  consists  mainly  of  central,  state  and  local  government  units  together  with 
social security funds imposed and controlled by those units. In addition, it includes non-profit institutions engaged in non-
market production that are controlled and mainly financed by government units or social security funds. 

2. 

3. 

4. 

5. 

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6. 

If it is established by the Commission in the ex post verification that a Member 
State  has  not  maintained  the  reference  level  of  public  or  equivalent  structural 
expenditure  under  the  Investment  for  growth  and  jobs  goal  set  out  in  the 
Partnership  Contract  as  set  out  in  Annex  III,  the  Commission  may  carry  out  a 
financial  correction.  In  deciding  whether  or  not  to  carry  out  a  financial 
correction,  the  Commission  will  take  into  account  whether  the  economic 
situation  of  the  Member  State  has  significantly  changed  since  the  mid-term 
verification  and  whether  the  change  was  taken  into  account  at  that  time.  The 
detailed rules relating to financial correction rates are set out in point 3 of Annex 
III. 

7. 

Paragraphs 1 to 6 shall not apply to operational programmes under the European 
territorial cooperation goal. 

TITLE II  

PROGRAMMING 

CHAPTER I 

General provisions on the Funds 

Article 87 

Content and adoption of operational programmes under the Investment for growth 
and jobs goal 

1. 

An  operational  programme  shall  consist  of  priority  axes.  A  priority  axis  shall 
concern  one  Fund  for  a  category  of  region  and  shall  correspond,  without 
prejudice  to  Article  52,  to  a  thematic  objective  and  comprise  one  or  more 
investment  priorities  of  that  thematic  objective,  in  accordance  with  the  Fund-
specific  rules.  For  the  ESF,  a  priority  axis  may  combine  investment  priorities 
from  different  thematic  objectives  set  out  in  Article  9(8),  (9),  (10)  and  (11)  in 
order  to  facilitate  their  contribution  to  other  priority  axes,  in  duly  justified 
circumstances. 

2. 

An operational programme shall set out: 

(a) 

a  strategy  for  the  operational  programme's  contribution  to  the  Union 
strategy for smart, sustainable and inclusive growth, including:  

(i) 

an identification of needs addressing the challenges identified in the 
country-specific  recommendations  and  the  broad  guidelines  of  the 
economic  policies  of  the  Member  States  and  of  the  Union  under 
Article 121(2) and the Council recommendations which the Member 
States shall take into account in their employment policies adopted 

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under Article 148(4) of the Treaty, and taking into account national 
and regional needs; 

(ii) 

a justification of the choice of thematic objectives and corresponding 
investment priorities, having regard to the Partnership Contract and 
the results of the ex ante evaluation; 

(b) 

for each priority axis:  

(i) 

the investment priorities and corresponding specific objectives; 

(ii) 

the  common  and  specific  output  and  result  indicators,  with  where 
appropriate  a  baseline  value  and  a  quantified  target  value,  in 
accordance with the Fund-specific rules; 

(iii)  a description of actions to be supported including the identification 
of  the  main  target  groups,  specific  territories  targeted  and  types  of 
beneficiaries  where  appropriate  and  the  planned  use  of  financial 
instruments; 

(iv) 

intervention  based  on  a 
the  corresponding  categories  of 
nomenclature  adopted  by 
the  Commission  by  means  of 
implementing  acts  in  accordance  with  the  examination  procedure 
referred  to  Article  143(3),and  an  indicative  breakdown  of  the 
programmed resources; 

(c) 

the contribution to the integrated approach for territorial development set 
out in the Partnership Contract, including: 

(i) 

the  mechanisms  that  ensure  coordination  between  the  Funds,  the 
EAFRD, 
the  EMFF  and  other  Union  and  national  funding 
instruments, and with the EIB; 

(ii)  where  appropriate,  a  planned  integrated  approach  to  the  territorial 
development  of  urban,  rural,  coastal  and  fisheries  areas  and  areas 
with  particular  territorial  features,  in  particular  the  implementation 
arrangements for Articles 28 and 29; 

(iii) 

the  list  of  cities  where  integrated  actions  for  sustainable  urban 
development  will  be  implemented,  the  indicative  annual  allocation 
of  the  ERDF  support  for  these  actions,  including  the  resources 
delegated to cities for management under Article 7(2) of Regulation 
(EU)  No  [ERDF]  and  the  indicative  annual  allocation  of  ESF 
support for integrated actions; 

(iv) 

the  identification  of  the  areas  in  which  community-led  local 
development will be implemented; 

(v) 

the  arrangements  for  interregional  and  transnational  actions  with 
beneficiaries located in at least one other Member State; 

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(vi)  where  appropriate,  the  contribution  of  the  planned  interventions 

towards macro regional strategies and sea basin strategies; 

(d) 

the  contribution  to  the  integrated  approach  set  out  in  the  Partnership 
Contract to address the specific needs of geographical areas most affected 
by poverty or target groups at highest risk of discrimination or exclusion, 
with  special  regard  to  marginalised  communities,  and  the  indicative 
financial allocation; 

(e) 

arrangements  to  ensure  the  effective  implementation  of  the  Funds, 
including: 

(i) 

a performance framework in accordance with Article 19(1); 

(ii) 

for  each  ex  ante  conditionality,  established  in  accordance  with 
Annex  IV,  that  is  not  fulfilled  at  the  date  of  submission  of  the 
Partnership  Contract  and  operational  programme,  a  description  of 
the  actions  to  fulfil  the  ex  ante  conditionality  and  a  timetable  for 
such actions; 

(iii) 

the  actions  taken  to  involve  the  partners  in  the  preparation  of  the 
operational  programme,  and  the  role  of  the  partners  in  the 
implementation,  monitoring  and  evaluation  of  the  operational 
programme; 

(f) 

arrangements  to  ensure  the  efficient  implementation  of  the  Funds, 
including: 

(i) 

the planned use of technical assistance including actions to reinforce 
the administrative capacity of authorities and beneficiaries with the 
relevant  information  referred  to  in  paragraph  2  (b)  for  the  priority 
axis concerned; 

(ii) 

an assessment of the administrative burden for beneficiaries and the 
actions planned to achieve a reduction accompanied by targets; 

(iii)  a  list  of  major  projects  for  which  the  estimated  start  date  for  the 

execution of the main works is before 1 January 2018;  

(g) 

a financing plan containing two tables: 

(i) 

(ii) 

a table specifying for each year, in accordance with Articles 53, 110 
and 111, the amount of the total financial appropriation envisaged for 
the support from each of the Funds; 

a  table  specifying,  for  the  whole  programming  period,  for  the 
operational programme and for each priority axis, the amount of the 
total  financial  appropriation  of  the  support  from  the  Funds  and  the 
national co-financing. Where the national co-financing is made up of 
public  and  private  co-financing,  the  table  shall  give  the  indicative 
breakdown  between  the  public  and  the  private  components.  It  shall 

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show, for information purposes, the envisaged participation from the 
EIB; 

(h) 

the implementing provisions for the operational programme containing: 

(i) 

identification  of  the  accrediting  body,  the  managing  authority,  the 
certifying authority, where applicable, and the audit authority; 

(ii) 

identification  of  the  body  to  which  payments  will  be  made  by  the 
Commission. 

3. 

Each  operational  programme,  except  those  where  technical  assistance  is 
undertaken under a specific operational programme, shall include: 

(i) 

(ii) 

a  description  of  specific  actions  to  take  into  account  environmental 
protection  requirements,  resource  efficiency,  climate  change  mitigation 
and adaptation, disaster resilience and risk prevention and management, in 
the selection of operations; 

a  description  of  the  specific  actions  to  promote  equal  opportunities  and 
prevent any discrimination based on sex, racial or ethnic origin, religion or 
belief, disability,  age  or sexual orientation during the preparation,  design 
and  implementation  of  the  operational  programme  and  in  particular  in 
relation  to  access  to  funding,  taking  account  of  the  needs  of  the  various 
target  groups  at  risk  of  such  discrimination  and  in  particular  the 
requirements of ensuring accessibility for disabled persons;  

(iii)  a description of its contribution to the promotion of equality between men 
and  women  and,  where  appropriate,  the  arrangements  to  ensure  the 
integration of gender perspective at operational programme and operation 
level. 

Member  States  shall  submit  an  opinion  of  the  national  equality  bodies  on  the 
measures  set  out  in  points  (ii)  and  (iii)  with  the  proposal  for  an  operational 
programme under the Investment for growth and jobs goal.  

4. 

Member  States  shall  draft  the  operational  programme  according  to  the  model 
adopted by the Commission. 

The Commission shall adopt that model by means of implementing acts. Those 
implementing  acts  shall  be  adopted  in  accordance  with  the  advisory  procedure 
referred to in Article 143(2). 

5. 

The  Commission  shall  adopt  a  decision  approving  the  operational  programme 
by means of implementing acts. 

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Article 88 

Joint support from the Funds 

1. 

2. 

The  Funds  may  jointly  provide  support  for  operational  programmes  under  the 
Investment for growth and jobs goal.  

The ERDF and the ESF may finance, in a complementary manner and subject to 
a limit of 5 % of Union funding for each priority axis of an operational programme, 
a  part  of  an  operation  for  which  the  costs are  eligible  for  support  from  the  other 
Fund on the basis of eligibility rules applied to that Fund, provided that they are 
necessary  for  the  satisfactory  implementation  of  the  operation  and  are  directly 
linked to it.  

3. 

Paragraphs 1 and 2 shall not apply to programmes under the European territorial 
cooperation goal. 

Article 89 

Geographical scope of operational programmes under the 
Investment for growth and jobs goal 

Unless  otherwise  agreed  between  the  Commission  and  the  Member  State,  operational 
programmes for the ERDF and the ESF shall be drawn up at the appropriate geographical 
level and at least at NUTS level 2, in accordance with the institutional system specific to 
the Member State.  

Operational  programmes  with  support  from  the  Cohesion  Fund  shall  be  drawn  up  at 
national level. 

CHAPTER II 

MAJOR PROJECTS 

Article 90 

Content 

As  part  of  an  operational  programme  or  operational  programmes,  the  ERDF  and  the 
Cohesion  Fund  may  support  an  operation  comprising  a  series  of  works,  activities  or 
services  intended  in  itself  to  accomplish  an  indivisible  task  of  a  precise  economic  or 
technical  nature  which  has  clearly  identified  goals  and  whose  total  cost  exceeds 

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EUR 50 000 000 (a 'major project'). Financial instruments shall not be considered major 
projects.  

Article 91 

Information to be submitted to the Commission 

1. 

The  Member  State  or  the  managing  authority  shall  submit  the  following 
information  on  major  projects  to  the  Commission as soon as preparatory work 
has been completed: 

(a) 

information on the body to be responsible for implementation of the major 
project, and its capacity 

(b) 

a description of and information on the investment and its location; 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

total cost and total eligible cost, taking account of the requirements set out 
in Article 54;  

information  on  the  feasibility  studies  carried  out,  including  the  options 
analysis, the results, and independent quality review; 

a  cost-benefit  analysis,  including  an  economic  and  a  financial  analysis, 
and a risk assessment;  

an  analysis  of  the  environmental  impact,  taking  into  account  climate 
change adaptation and mitigation needs, and disaster resilience; 

the  consistency  with  the  relevant  priority  axes  of  the  operational 
programme  or  programmes  concerned,  and  its  expected  contribution  to 
achieving the specific objectives of those priority axes; 

the  financing  plan  showing  the  total  planned  financial  resources  and  the 
planned  support  from  the  Funds,  the  EIB,  and  all  other  sources  of 
financing,  together  with  physical  and  financial  indicators  for  monitoring 
progress, taking account of the identified risks; 

the  timetable  for  implementing  the  major  project  and,  where  the 
implementation  period  is  expected  to  be  longer  than  the  programming 
period,  the  phases  for  which  support  from  the  Funds  is  requested  during 
the 2014 to 2020 programming period. 

The  Commission  shall  provide  indicative  guidance  on  the  methodology  to  be 
used  in  carrying  out  the  cost-benefit  analysis  referred  to  in  point  (e)  above  in 
accordance with the advisory procedure referred to in Article 143(2). 

The format for the information on major projects to be submitted shall be set up 
in  accordance  with  the  model  adopted  by  the  Commission,  by  means  of 
implementing  acts.  Those  implementing  acts  shall  be  adopted  in  accordance 
with the advisory procedure referred to in Article 143(2). 

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2. 

1. 

2. 

3. 

4. 

1. 

Major projects submitted to the Commission for approval shall be contained in 
the  list  of  major  projects  in  an  operational  programme.  The  list  shall  be 
reviewed  by  the  Member  State  or  the  managing  authority  two  years  following 
the adoption of an operational programme and may at the request of the Member 
State  be  adjusted  in  accordance  with  the  procedure  set  out  in  Article  26(2),  in 
particular to include major projects with an expected completion date by the end 
of 2022. 

Article 92 

Decision on a major project 

The Commission shall appraise the major project on the basis of the information 
referred  to  in  Article  91  in  order  to  determine  whether  the  proposed  support 
from the Funds is justified. 

The Commission shall adopt a decision, by means of implementing act, no later 
than  three  months  after  the  date  of  submission  of  the  information  approving  a 
major  project  in  accordance  with  Article  91.  That  decision  shall  define  the 
physical object, the amount to which the co-financing rate for the priority axis 
applies,  physical  and  financial  indicators  for  monitoring  progress,  and  the 
expected  contribution  of  the  major  project  to  the  objectives  of  the  relevant 
priority  axis  or  axes.  An  approval  decision  shall  be  conditional  on  the  first 
works contract being concluded within two years of the date of the decision. 

Where the Commission refuses to allow support from the Funds to be given to a 
major project, it shall notify the Member State of its reasons within the period 
laid down in paragraph 2. 

Expenditure  relating  to  major  projects  shall  not  be  included  in  payment 
applications before adoption of an approval decision by the Commission. 

CHAPTER III 

Joint action plan 

Article 93 

Scope 

A  joint  action  plan  is  an  operation  defined  and  managed  in  relation  to  the 
outputs and results which it will achieve. It comprises a group of projects, not 
consisting in the provision of infrastructure, carried out under the responsibility 
of  the  beneficiary,  as  part  of  an  operational  programme  or  programmes.  The 
outputs  and  results  of  a  joint  action  plan  shall  be  agreed  between  the  Member 
State  and  the  Commission  and  shall  contribute  to  specific  objectives  of  the 

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2. 

1. 

2. 

operational programmes and form the basis of support from the Funds. Results 
shall  refer  to  direct  effects  of  the  joint  action  plan.  The  beneficiary  shall  be  a 
public law body. Joint action plans shall not be considered as major projects.  

The  public  support  allocated  to  a  joint  action  plan  shall  be  a  minimum  of 
EUR 10 000 000 or 20 % of the public support of the operational programme or 
programmes, whichever is lower. 

Article 94 

Preparation of joint action plans  

The  Member  State,  the  managing  authority  or  any  designated  public  law  body 
may submit a proposal for a joint action plan at the same time as or subsequent 
to the submission of the operational programmes concerned. It shall contain all 
the elements referred to in Article 95. 

A joint action plan shall cover part of the period between 1 January 2014 and 31 
December 2022. The outputs and results of a joint action plan shall give rise to 
reimbursement only if attained after the date of the decision of approval of the 
joint action plan and before the end of the implementation period defined.  

Article 95 

Content of joint action plans  

The joint action plan shall contain: 

(1) 

an analysis of the development needs and objectives justifying  the joint action 
plan,  taking  into  account  the  objectives  of  the  operational  programmes  and, 
where  applicable, 
the  broad 
guidelines  of  the  economic  policies  of  the  Member  States  and  of  the  Union 
under  Article  121(2)  and  the  Council  recommendations  which  the  Member 
States shall take into account in their employment policies under Article 148(4) 
of the Treaty; 

the  country-specific  recommendations  and 

(2) 

the  framework  describing  the  relationship  between  the  general  and  specific 
objectives of the joint action plan, the milestones and the targets for outputs and 
results, and the projects or types of projects envisaged; 

(3) 

the  common  and  specific  indicators  used  to  monitor  outputs  and  results,  where 

relevant, by priority axis;  

(4) 

(5) 

(6) 

information on the geographic coverage and target groups of the joint action plan; 

the expected implementation period of the joint action plan; 

an  analysis  of  the  effects  of  the  joint  action  plan  on  the  promotion  of  equality 

between men and women and the prevention of discrimination; 

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(7) 

an analysis of the effects of the joint action plan on the promotion of sustainable 

development, where appropriate; 

(8) 

the implementing provisions for the joint action plan, including the following: 

(a) 

(b) 

(c) 

(d) 

the  designation  of  the  beneficiary  responsible  for  the  implementation  of 
the joint action plan, providing guarantees of its competence in the domain 
concerned  as  well  as  its  administrative  and  financial  management 
capacity; 

the  arrangements  for  steering  the  joint  action  plan,  in  accordance  with 
Article 97; 

the  arrangements  for  monitoring  and  evaluating  the  joint  action  plan 
including arrangements ensuring the quality, collection and storage of data 
on the achievement of milestones, outputs and results; 

the  arrangements  ensuring 
communication on the joint action plan and on the Funds; 

the  dissemination  of 

information  and 

(9) 

the financial arrangements of the joint action plan, including the following: 

(a) 

(b) 

(c) 

the costs of achieving milestones, outputs and result targets with reference 
to point (2), based on the methods set out in Article 57(4) and in Article 14 
of the ESF Regulation;  

an  indicative  schedule  of  payments  to  the  beneficiary  linked  to  the 
milestones and targets; 

the financing plan by operational programme and priority axis, including 
the total eligible amount and the public support.  

The format for the joint action plan shall be set up in accordance with the model adopted 
by  the  Commission,  by  means  of  implementing  acts.  Those  implementing  acts  shall  be 
adopted in accordance with the advisory procedure referred to in Article 143(2). 

Article 96 

Decision on the joint action plan  

1. 

The  Commission  shall  appraise  the  joint  action  plan  on  the  basis  of  the 
information referred to in Article 95 in order to determine whether support from 
the Funds is justified. 

Where the Commission, within three months following the submission of a joint 
action plan proposal, considers that it does not meet the appraisal requirements, 
it shall make observations to the Member State. The Member State shall provide 
to  the  Commission  all  necessary  additional  information  requested  and,  where 
appropriate, revise the joint action plan accordingly. 

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2. 

3. 

4. 

1. 

Provided  that  any  observations  have  been satisfactorily taken into account, the 
Commission shall adopt a decision approving the joint action plan no later than 
6 months after its submission by the Member State but not before the adoption 
of the operational programmes concerned.  

The  decision  referred  to  in  paragraph  2  shall  indicate  the  beneficiary  and  the 
objectives  of  the  joint  action  plan,  the  milestones  and  targets  for  outputs  and 
results,  the  costs  of  achieving  these  milestones,  outputs  and  result  targets,  and 
the  financing  plan  by  operational  programme  and  priority  axis,  including  the 
total eligible amount and the public contribution, the implementation period of 
the joint action plan and, where relevant, the geographical coverage and target 
groups of the joint action plan.  

Where the Commission refuses to allow support from the Funds to be given to a 
joint action plan, it shall notify the Member State of its reasons within the period 
laid down in paragraph 2. 

Article 97 

Steering Committee and amendment of the joint action plan 

The Member State or the managing authority shall set up a steering committee 
for  the  joint  action  plan,  distinct  from  the  monitoring  committee  of  the 
operational  programmes.  The  steering  committee  shall  meet  at  least  twice  a 
year. 

Its  composition  shall  be  decided  by  the  Member  State  in  agreement  with  the 
managing authority, respecting the principle of partnership. 

The  Commission  may  participate  in  the  work  of  the  steering  committee  in  an 
advisory capacity.  

2. 

The steering committee shall carry out the following activities: 

3. 

(a) 

(b) 

review  progress  towards  achieving  the  milestones,  outputs  and  results  of 
the joint action plan; 

consider and approve any proposal to amend the joint action plan in order 
to take account of any issues affecting its performance. 

Requests for amendment of joint action plans submitted by a Member State shall 
be  duly  substantiated.  The  Commission  shall  assess  whether  the  request  for 
amendment  is  justified,  taking  account  of  the  information  provided  by  the 
Member State. The Commission may make observations and the Member State 
shall  provide  to  the  Commission  all  necessary  additional  information.  The 
Commission  shall  adopt  a  decision  on  a  request  for  amendment  no  later  than 
three months after its formal submission by the Member State, provided that any 
observations  made  by  the  Commission  have  been  satisfactorily  taken  into 
account.  The  amendment  shall  enter  into  force  from  the  date  of  the  decision, 
unless otherwise set out in the decision. 

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Article 98  

Financial management and control of the joint action plan 

Payments to the beneficiary of a joint action plan shall be treated as lump sums 
or  standard  scales  of  unit  costs.  The  ceiling  for  lump  sums  set  out  in  Article 
57(1)(c) shall not apply.  

The  financial  management,  control  and  audit  of  the  joint  action  plan  shall  aim 
exclusively at verifying that the conditions for payments defined in the decision 
approving the joint action plan have been fulfilled.  

The  beneficiary  and  bodies  acting  under  its  responsibility  may  apply  their 
accounting practices for the costs of implementing operations. These accounting 
practices and the costs actually incurred by the beneficiary shall not be subject 
to audit by the audit authority or the Commission.  

CHAPTER IV 

Territorial development  

Article 99 

Integrated territorial investment  

Where  an  urban  development  strategy  or  other  territorial  strategy  or  pact  as 
defined  in  Article  12(1)  of  Regulation…[ESF]  requires  an  integrated  approach 
involving  investments  under  more  than  one  priority  axis  of  one  or  more 
operational  programmes,  the  action  shall  be  carried  out  as  an  integrated 
territorial investment (an 'ITI').  

The  relevant  operational  programmes  shall  identify  the  ITIs  planned  and  shall 
set out the indicative financial allocation from each priority axis to each ITI. 

The  Member  State  or  the  managing  authority  may  designate  one  or  more 
intermediate bodies, including local authorities, regional development bodies or 
the  management  and 
non-governmental  organisations, 
implementation of an ITI. 

to  carry  out 

The  Member  State  or  the  relevant  managing  authorities  shall  ensure  that  the 
monitoring system for the operational programme provides for the identification 
of operations and outputs of a priority axis contributing to an ITI. 

1. 

2. 

3. 

1. 

2. 

3. 

4. 

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MONITORING,EVALUATION, INFORMATION AND 
COMMUNICATION 

CHAPTER I 

Monitoring and evaluation 

Article 100 

Functions of the monitoring committee 

1. 

The monitoring committee shall examine in particular: 

(a) 

any issues that affect the performance of the operational programme; 

(b)  progress in implementation of the evaluation plan and the follow-up given 

to findings of evaluations; 

(c) 

implementation of the communication strategy; 

(d) 

implementation of major projects; 

(e) 

implementation of joint action plans; 

(f) 

actions to promote equality between men and women, equal opportunities, 
and non-discrimination, including accessibility for disabled persons; 

(g) 

actions to promote sustainable development; 

(h) 

actions in the operational programme relating to the fulfilment of ex ante 
conditionalities; 

(i) 

financial instruments. 

2. 

The monitoring committee shall examine and approve: 

(a) 

the methodology and criteria for selection of operations; 

(b) 

the annual and final implementation reports; 

(c) 

(d) 

the evaluation plan for the operational programme and any amendment of 
the plan; 

the  communication  strategy  for  the  operational  programme  and  any 
amendment of the strategy; 

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(e) 

any  proposal  by  the  managing  authority  for  any  amendment  to  the 
operational programme. 

Article 101 

Implementation reports for the Investment for growth and jobs goal 

1. 

By 30 April 2016 and by 30 April of each subsequent year until and including 
2022  the  Member  State  shall  submit  to  the  Commission  an  annual  report  in 
accordance  with  Article  44(1).  The  report  submitted  in  2016  shall  cover  the 
financial years 2014 and 2015, as well as the period between the starting date for 
eligibility of expenditure and 31 December 2013. 

2. 

Annual implementation reports shall set out information on: 

(a) 

implementation of the operational programme in accordance with Article 
44(2); 

(b)  progress  in  preparation  and  implementation  of  major  projects  and  joint 

action plans. 

3. 

The annual implementation reports submitted in 2017 and 2019 shall set out and 
assess  the  information  required  under  Articles  44(3)  and  (4)  respectively,  the 
information set out in paragraph 2, together with: 

(a)  progress  in  implementation  of  the  integrated  approach  to  territorial 
development,  including  sustainable  urban  development,  and  community-
led local development under the operational programme; 

(b)  progress in implementation of actions to reinforce the capacity of Member 
State authorities and beneficiaries to administer and use the Funds;  

(c)  progress in implementation of any interregional and transnational actions; 

(d)  progress in implementation of the evaluation plan and the follow-up given 

to the findings of evaluations; 

(e) 

(f) 

(g) 

the  specific  actions  taken  to  promote  equality  between  men  and  women 
and to prevent discrimination, including accessibility for disabled persons, 
and the arrangements implemented to ensure the integration of the gender 
perspective in the operational programme and operations;  

actions  taken  to  promote  sustainable  development  in  accordance  with 
Article 8; 

the results of the information and publicity measures of the Funds carried 
out under the communication strategy;  

(h)  progress in the implementation of actions in the field of social innovation, 

where appropriate;  

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(i) 

progress in the implementation of measures to address the specific needs 
of  geographical  areas  most  affected  by  poverty  or  of  target  groups  at 
highest  risk  of  discrimination  or  exclusion,  with  special  regard  to 
marginalised  communities  including,  where  appropriate,  the  financial 
resources used; 

(j) 

the  involvement  of  the  partners  in  the  implementation,  monitoring  and 
evaluation of the operational programme. 

The  annual  and  final  implementation  reports  shall  be  drawn  up  following 
models  adopted  by  the  Commission  by  means  of  implementing  acts.  These 
implementing  acts  shall  be  adopted  in  accordance  with  the  advisory  procedure 
referred to in Article 143(2). 

Article 102 

Transmission of financial data 

By 31 January, 30 April, 31 July and 31 October, the managing authority shall 
transmit  electronically  to  the  Commission  for  monitoring  purposes,  for  each 
operational programme and by priority axis: 

(a) 

(b) 

the  total  and  public  eligible  cost  of  the  operations  and  the  number  of 
operations selected for support; 

the total and public eligible cost of contracts or other legal commitments 
entered into by beneficiaries in implementation of operations selected for 
support; 

(c) 

the  total  eligible  expenditure  declared  by  beneficiaries  to  the  managing 
authority. 

In addition, the transmission on 31 January shall contain the above data broken 
down by category of intervention. This transmission shall be considered to fulfil 
the requirement for the submission of financial data referred to in Article 44(2).  

A  forecast  of  the  amount  for  which  Member  States  expect  to  submit  payment 
applications for the current financial year and the subsequent financial year shall 
accompany the transmissions to be made by 31 January and 31 July. 

The cut-off date for the data submitted under this Article shall be the end of the 
month preceding the month of submission.  

4. 

1. 

2. 

3. 

4. 

Article103  

Cohesion Report  

The report of the Commission referred to in Article 175 of the Treaty shall include: 

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(a) 

a  record  of  progress  made  on  economic,  social  and  territorial  cohesion, 
including the socio-economic situation and development of the regions, as well 
as the integration of the Union's priorities; 

(b) 

a record of the role of the Funds, the EIB and the other instruments, as well as the 

effect of other Union and national policies, in the progress made. 

Article 104 

Evaluation  

1. 

2. 

3. 

An  evaluation  plan  shall  be  drawn  up  by  the  managing  authority  for  each 
operational  programme.  The  evaluation  plan  shall  be  submitted  to  the  first 
meeting  of  the  monitoring  committee.  Where  a  single  monitoring  committee 
covers more than one operational programme, an evaluation plan may cover all 
the operational programmes concerned. 

By  31  December  2020,  managing  authorities  shall  submit  to  the  Commission, 
for  each  programme,  a  report  summarising  the  findings  of  evaluations  carried 
out during the programming period, including an assessment of the main outputs 
and results of the programme. 

The  Commission  shall  carry  out  ex  post  evaluations  in  close  cooperation  with 
the Member States and managing authorities.  

CHAPTER II 

Information and Communication 

Article 105 

Information and publicity  

1. 

Member States and managing authorities shall be responsible for: 

(a) 

ensuring  the  establishment  of  a  single  website  or  a  single  website  portal 
providing  information  on,  and  access  to,  all  operational  programmes  in 
that Member State; 

(b) 

informing  potential  beneficiaries  about  funding  opportunities  under 
operational programmes; 

(c)  publicising to Union citizens the role and achievements of cohesion policy 
and of  the Funds  through  information and communication actions on the 
results  and impact of Partnership Contracts, operational  programmes  and 
operations. 

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2. 

3. 

4. 

1. 

2. 

3. 

1. 

Member States shall in order to ensure transparency in the support of the Funds 
maintain a list of operations by operational programme and by Fund in CSV or 
XML format which shall be accessible through the single website or the single 
website  portal  providing  a  list  and  summary  of  all  operational  programmes  in 
that Member State. 

The list of operations shall be updated at least every three months.  

The minimum information to be set out in the list of operations is laid down in 
Annex V.  

Detailed rules concerning the information and publicity measures for the public 
and information measures  for applicants and for beneficiaries are laid down in 
Annex V. 

Technical characteristics of information and publicity measures for the operation 
and instructions for creating the emblem and a definition of the standard colours 
shall  be  adopted  by  the  Commission  by  means  of  implementing  acts  in 
accordance with the examination procedure referred to Article 143(3). 

Article 106 

Communication strategy 

The  managing  authority  shall  draw  up  a  communication  strategy  for  each 
operational  programme.  A  common  communication  strategy  may  be  drawn  up 
for several operational programmes.  

The communication strategy shall include the elements set out in Annex V and 
annual updates with details of the planned information and publicity activities to 
be carried out.  

The  communication  strategy  shall  be  discussed  and  approved  by  the  first 
monitoring committee following the adoption of the operational programme.  

Any revision of the communication strategy shall be discussed in, and approved 
by, the monitoring committee. 

The  managing  authority  shall  inform  the  monitoring  committee  for  each 
operational programme at least once a year of progress in the implementation of 
the communication strategy and its assessment of the results. 

Article 107 

Information and communication officers and their networks 

Each Member State shall designate an information and communication officer to 
coordinate information and communication actions in relation to one or several 
Funds and shall inform the Commission accordingly. 

EN 

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2. 

3. 

4. 

The information and communication officer shall coordinate and chair meetings 
of  a  national  network  of  Funds'  communicators,  including  relevant  European 
territorial cooperation programmes, the creation and maintenance of the website 
or  website  portal  referred  to  in  Annex  V  and  the  obligation  to  provide  an 
overview about communication measures undertaken at national level. 

Each  managing  authority  shall  designate  one  person  to  be  responsible  for 
information  and  communication  at  operational  programme  level  and  shall 
inform the Commission of those designated. 

Union networks comprising the members designated by the Member States and 
the managing authorities shall be set up by the Commission to ensure exchange 
on  the  results  of  the  implementation  of  the  communication  strategies,  the 
exchange  of  experience  in  implementing  the  information  and  communication 
measures, and the exchange of good practices. 

TITLE IV  

TECHNICAL ASSISTANCE 

Article 108 

Technical assistance at the initiative of the Commission 

The Funds may support technical assistance up to a ceiling of 0,35 % of their respective 
annual allocation. 

Article 109 

Technical assistance of the Member States 

1. 

2. 

3. 

Each  of  the  Funds  may  finance  technical  assistance  operations  eligible  under 
any  of  the  other  Funds.  The  amount  of  the  Funds  allocated  to  technical 
assistance shall be limited to 4% of the total amount of the Funds allocated  to 
operational  programmes  under  each  category  of  region  of  the  Investment  for 
growth and jobs goal. 

Technical assistance shall take the form of a mono-fund priority axis within an 
operational programme or of a specific operational programme.  

The allocation for technical assistance from a Fund shall not exceed 10% of the 
total allocation of that Fund to operational programmes in a Member State under 
each category of region of the Investment for growth and jobs goal.  

EN 

TITLE V 

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1. 

2 

3. 

FINANCIAL SUPPORT FROM THE FUNDS 

Article 110 

Determination of co-financing rates 

The Commission decision adopting an operational programme shall fix the co-
financing rate and the maximum amount of support from Funds for each priority 
axis. 

For  each  priority  axis,  the  Commission  decision  shall  set  out  whether  the  co-
financing rate for the priority axis will be applied to: 

(a) 

total eligible expenditure, including public and private expenditure; or 

(b)  public eligible expenditure. 

The  co-financing  rate  at  the  level  of  each  priority  axis  of  operational 
programmes  under the Investment for growth and jobs goal shall be no higher 
than: 

(a)  85 % for the Cohesion Fund; 

(b)  85  %  for  the  less  developed  regions  of  Member  States  whose  average 
GDP per capita for the period 2007 to 2009 was below 85 % of the EU-27 
average during the same period and for the outermost regions; 

(c)  80%  for  the  less  developed  regions  of  Member  States  other  than  those 
referred to in point (b) eligible for the transitional regime of the Cohesion 
Fund on 1 January 2014; 

(d)  75%  for  the  less  developed  regions  of  Member  States  other  than  those 
referred to in points (b) and (c), and for all regions whose GDP per capita 
for the 2007-2013 period was less than 75% of the average of the EU-25 
for  the  reference  period  but  whose  GDP  per  capita  is  above  75%  of  the 
GDP average of the EU-27; 

(e)  60 % for the transition regions other than those referred to in point (d); 

(f) 

50 % for the more developed regions other than those referred to in point 
(d). 

The  co-financing  rate  at  the  level  of  each  priority  axis  of  operational 
programmes under the European territorial cooperation goal shall be no higher 
than 75%. 

4. 

The  co-financing  rate  of  the  additional  allocation  in  accordance  with  Article 
84(1)(e) shall be no higher than 50%.  

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5. 

6. 

7. 

The  same  co-financing  rate  shall  apply  to  the  additional  allocation  under 
Article 4(2) of Regulation (EU) No […]/2012 [ETC Regulation]. 

The maximum co-financing rate under paragraph 3 at the level of a priority axis 
shall be increased by ten percentage points, where the whole of a priority axis is 
delivered  through  financial  instruments,  or  through  community-led  local 
development. 

The contribution from the Funds for each priority axis shall not be less than 20 
% of the eligible public expenditure. 

A  separate  priority  axis  with  a  co-financing  rate  of  up  to  100%  may  be 
established within an operational programme to support operations implemented 
through  financial  instruments  set  up  at  Union  level  and  managed  directly  or 
indirectly  by  the  Commission.  Where  a  separate  priority  is  established  for  this 
purpose,  the  support  under  this  axis  may  not  be  implemented  by  any  other 
means. 

Article 111  

Modulation of the co-financing rates  

The co-financing rate from the Funds to a priority axis may be modulated to take account 
of: 

(1) 

(2) 

(3) 

(4) 

the  importance  of  the  priority  axis  for  the  delivery  of  the  Union  strategy  for 
smart, sustainable and inclusive growth, having regard to the specific gaps to be 
addressed; 

protection  and  improvement  of  the  environment,  principally  through  the 
application of the precautionary principle, the principle of preventive action and 
the polluter pays principle; 

the rate of mobilisation of private financing; 

the  coverage  of  areas  with  severe  and  permanent  natural  or  demographic 

handicaps defined as follows: 

(a) 

island Member States eligible under the Cohesion Fund, and other islands 
except those on which the capital of a Member State is situated or which 
have a fixed link to the mainland; 

(b)  mountainous  areas  as  defined  by  the  national  legislation  of  the  Member 

State; 

(c) 

sparsely (less than 50 inhabitants per square kilometre) and very sparsely 
(less than 8 inhabitants per square kilometre) populated areas. 

EN 

TITLE VI 

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MANAGEMENT AND CONTROL 

CHAPTER I 

Management and control systems 

Article 112 

Responsibilities of Member States 

1. 

2. 

3. 

Member  States  shall  ensure  that  management  and  control  systems  for 
operational programmes are set up in accordance with Articles 62 and 63.  

Member States shall prevent, detect and correct irregularities and shall recover 
amounts  unduly  paid,  together  with  any  interest  on  late  payments.  They  shall 
notify  these  irregularities  to  the  Commission  and  shall  keep  the  Commission 
informed of the progress of related administrative and legal proceedings. 

When amounts unduly paid to a beneficiary cannot be recovered and this is as a 
result  of  fault  or  negligence  on  the  part  of  a  Member  State,  the  Member  State 
shall  be  responsible  for  reimbursing  the  amounts  concerned  to  the  general 
budget of the Union. 

The Commission shall be empowered to adopt delegated acts in accordance with 
Article  142  laying  down  detailed  rules  concerning  the  obligations  of  the 
Member States specified in this paragraph.  

Member States shall ensure that no later than 31 December 2014, all exchanges 
of  information  between  beneficiaries  and  managing  authorities,  certifying 
authorities, audit authorities and intermediate bodies can be carried out solely by 
means of electronic data exchange systems. 

The systems shall facilitate interoperability with national and Union frameworks 
and allow for the beneficiaries to submit all information referred to in the first 
sub-paragraph only once. 

The  Commission  shall  adopt,  by  means  of  implementing  acts,  detailed  rules 
concerning 
this  paragraph.  Those 
implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 143(3). 

the  exchanges  of 

information  under 

EN 

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CHAPTER II 

Management and control authorities 

Article 113 

Designation of authorities 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

The  Member  State  shall  designate,  for  each  operational  programme,  a  national, 
regional or local public authority or body as managing authority. The same public 
authority or body may be designated as a managing authority for more than one 
operational programme. 

The Member State shall designate, for each operational programme, a national, 
regional  or  local  public  authority  or  body  as  a  certifying  authority,  without 
prejudice  to  paragraph  3.  The  same  certifying  authority  may  be  designated  for 
more than one operational programme. 

The  Member  State  may  designate  for  an  operational  programme  a  managing 
authority which carries out in addition the functions of the certifying authority. 

The Member State shall designate, for each operational programme, a national, 
regional  or  local  public  authority  or  body,  functionally  independent  from  the 
managing  authority  and  the  certifying  authority,  as  audit  authority.  The  same 
audit authority may be designated for more than one operational programme. 

For  the  Investment  for  growth  and  jobs  goal,  provided  that  the  principle  of 
separation  of  functions  is  respected,  the  managing  authority,  the  certifying 
authority, where applicable, and the audit authority may be part of the same public 
authority or body. However, for those operational programmes for which the total 
amount  of  support  from  the  Funds  exceeds  EUR 250 000 000,  the  audit authority 
may not be part of the same public authority or body as the managing authority. 

The Member State may designate one or more intermediate bodies to carry out 
certain tasks of the managing or the certifying authority under the responsibility 
of that authority. The relevant arrangements between the managing authority or 
certifying  authority  and  the  intermediate  bodies  shall  be  formally  recorded  in 
writing. 

The  Member  State  or  the  managing  authority  may  entrust  the  management  of 
part  of  an  operational  programme  to  an  intermediate  body  by  way  of  an 
agreement  in  writing  between  the  intermediate  body  and  the  Member  State  or 
managing  authority  (a  'global  grant').  The  intermediate  body  shall  provide 
guarantees of its solvency and competence in the domain concerned, as well as 
its administrative and financial management.  

EN 

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8. 

1. 

2. 

The Member State shall lay down in writing rules governing its relations with the 
managing  authorities,  certifying  authorities  and  audit  authorities,  the  relations 
between such authorities, and the relations of such authorities with the Commission. 

Article 114  

Functions of the managing authority  

The  managing  authority  shall  be  responsible  for  managing  the  operational 
programme in accordance with the principle of sound financial management.  

As  regards  the  programme  management  of  the  operational  programme,  the 
managing authority shall: 

(a) 

support  the  work  of  the  monitoring  committee  and  provide  it  with  the 
information it requires to carry out its tasks, in particular data relating to 
the  progress  of  the  operational  programme  in  achieving  its  objectives, 
financial data and data relating to indicators and milestones; 

(b) 

draw  up  and,  after  approval  by  the  monitoring  committee,  submit  to  the 
Commission annual and final implementation reports; 

(c)  make available to intermediate bodies and beneficiaries information that is 
relevant  to  the  execution  of  their  tasks  and  the  implementation  of 
operations respectively; 

(d) 

(e) 

establish a system to record and store in computerised form data on each 
operation  necessary  for  monitoring,  evaluation,  financial  management, 
verification  and  audit,  including  data  on  individual  participants  in 
operations, where applicable; 

ensure that the data referred to in point (d) is collected, entered and stored 
in the system, and that data on indicators is broken down by gender where 
required by Annex I of the ESF Regulation. 

3. 

As regards the selection of operations, the managing authority shall: 

(a)  draw  up  and,  once  approved,  apply  appropriate  selection  procedures  and 

criteria that: 

(i) 

are non-discriminatory and transparent; 

(ii) 

take into account the general principles set out in Articles 7 and 8;  

(b) 

ensure that a selected operation falls within the scope of the Fund or Funds 
concerned and  within  a category  of  intervention identified in  the priority 
axis or axes of the operational programme; 

(c)  provide to the beneficiary a document setting out the conditions for support 
for  each  operation  including  the  specific  requirements  concerning  the 

EN 

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(d) 

(e) 

(f) 

products  or  services  to  be  delivered  under  the  operation,  the  financing 
plan, and the time-limit for execution; 

satisfy  itself  that  the  beneficiary  has  the  administrative,  financial  and 
operational  capacity  to  fulfil  the  conditions  defined  in  point  (c)  before 
approval of the operation; 

satisfy itself that, where the operation has started before the submission of 
an application for funding to the managing authority, Union and national 
rules relevant for the operation have been complied with; 

ensure that an applicant does not receive support from the Funds where it 
has  been,  or  should  have  been,  subject  to  a  procedure  of  recovery  in 
accordance  with  Article  61  following  the  relocation  of  a  productive 
activity within the Union; 

(g)  determine  the  categories  of  intervention  to  which  the  expenditure  of  an 

operation shall be attributed. 

4. 

As regards the financial management and control of the operational programme, 
the managing authority shall: 

(a)  verify that the co-financed products and services have been delivered and 
that expenditure declared by the beneficiaries has been paid by them and 
that  it  complies  with  applicable  Union  and  national  law,  the  operational 
programme and the conditions for support of the operation; 

(b) 

ensure  that  beneficiaries  involved  in  the  implementation  of  operations 
reimbursed on the basis of eligible costs actually incurred maintain either 
a  separate  accounting  system  or  an  adequate  accounting  code  for  all 
transactions relating to an operation; 

(c)  put  in  place  effective  and  proportionate  anti-fraud  measures  taking  into 

account the risks identified; 

(d) 

set up procedures to ensure that all documents regarding expenditure and 
audits required to ensure an adequate audit trail are held in accordance with 
the requirements of Article 62(g); 

(e)  draw  up  the  management  declaration  of  assurance  on  the  functioning  of 
the  management  and  control  system,  the  legality  and  regularity  of 
underlying transactions and the respect of the principle of sound financial 
management, together with a report setting out the results of management 
controls  carried  out,  any  weaknesses  identified  in  the  management  and 
control system and any corrective action taken. 

5. 

Verifications pursuant to paragraph 4(a) shall include the following procedures: 

(a) 

administrative  verifications 
reimbursement by beneficiaries; 

in 

respect  of  each  application 

for 

(b)  on-the-spot verifications of operations. 

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The  frequency  and  coverage  of 
the  on-the-spot  verifications  shall  be 
proportionate  to  the  amount  of  public  support  to  an  operation  and  the  level  of 
risk  identified  by  these  verifications  and  audits  by  the  audit  authority  for  the 
management and control system as a whole. 

On-the-spot  verifications  of  individual  operations  pursuant  to  paragraph  (5)(b) 
may be carried out on a sample basis. 

Where  the  managing  authority  is  also  a  beneficiary  under  the  operational 
programme, arrangements for the verifications referred to in paragraph 4(a) shall 
ensure adequate separation of functions. 

The  Commission  shall  adopt  delegated  acts,  in  accordance  with  Article  142, 
laying down the modalities of the exchange of information in paragraph 2(d). 

The  Commission  shall  adopt  delegated  acts,  in  accordance  with  Article  142, 
laying  down  rules  concerning  arrangements  for  the  audit  trail  referred  to  in 
paragraph 4(d).  

The Commission shall adopt, by means of implementing acts, the model for the 
management declaration referred to in paragraph 4(e). Those implementing acts 
shall be adopted in accordance with the advisory procedure referred to in Article 
143(2). 

6. 

7. 

8. 

9. 

10. 

Article 115 

Functions of the certifying authority 

The  certifying  authority  of  an  operational  programme  shall  be  responsible  in  particular 
for: 

(a) 

(b) 

(c) 

(d) 

drawing  up  and  submitting  to  the  Commission  payment  applications  and 
certifying  that  these  result  from  reliable  accounting  systems,  are  based  on 
verifiable  supporting  documents  and  have  been  subject  to  verifications  by  the 
managing authority; 

drawing up the annual accounts; 

certifying  the  completeness,  accuracy  and  veracity  of  the  annual  accounts  and 
that the expenditure entered in the accounts complies with applicable Union and 
national rules and has been incurred in respect of operations selected for funding 
in  accordance  with  the  criteria  applicable  to  the  operational  programme  and 
complying with Union and national rules; 

ensuring that there is a system which records and stores, in computerised form, 
accounting records for each operation, and which supports all the data required 
for  drawing  up  payment  applications  and  annual  accounts,  including  records  of 
amounts  recoverable,  amounts  recovered  and  amounts  withdrawn  following 
cancellation  of  all  or  part  of  the  contribution  for  an  operation  or  operational 
programme; 

EN 

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(e) 

(f) 

(g) 

(h) 

1. 

2. 

3. 

4. 

ensuring for the purposes of drawing up and submission of payment applications 
that  it  has  received  adequate  information  from  the  managing  authority  on  the 
procedures and verifications carried out in relation to expenditure;  

taking  account  when  drawing  up  and  submitting  payment  applications  the 
results  of  all  audits  carried  out  by  or  under  the  responsibility  of  the  audit 
authority;  

maintaining accounting records in a computerised form of expenditure declared 
to  the  Commission  and  the  corresponding  public  contribution  paid  to 
beneficiaries; 

keeping  an  account  of  amounts  recoverable  and  of  amounts  withdrawn 
following  cancellation  of  all  or  part  of  the  contribution  for  an  operation. 
Amounts recovered shall be repaid to the general budget of the Union prior to 
the  closure  of  the  operational  programme  by  deducting  them  from  the  next 
statement of expenditure. 

Article 116 

Functions of the audit authority 

The audit authority  shall  ensure that audits are carried out on the management 
and control systems, on an appropriate sample of operations and on the annual 
accounts. 

The Commission shall be empowered to adopt delegated acts in accordance with 
Article 142 to set out the conditions which those audits shall fulfil. 

Where  audits  are  carried  out  by  a  body  other  than  the  audit  authority,  the  audit 
authority  shall  ensure  that  any  such  body  has  the  necessary  functional 
independence. 

The  audit  authority  shall  ensure  that  audit  work  takes  account  of  internationally 
accepted audit standards. 

The  audit  authority  shall,  within  six  months  of  adoption  of  an  operational 
programme,  prepare  an  audit  strategy  for  performance  of  audits.  The  audit 
strategy shall set out the audit methodology, the sampling method for audits on 
operations and the planning of audits in relation to the current accounting year 
and  the  two  subsequent  accounting  years.  The  audit  strategy  shall  be  updated 
annually  from  2016  until  and  including  2022.  Where  a  common  management 
and  control  system  applies  to  more  than  one  operational  programme,  a  single 
audit strategy may be prepared for the operational programmes concerned. The 
audit authority shall submit the audit strategy to the Commission upon request. 

5. 

The audit authority shall draw up: 

(i) 

an audit opinion on the annual accounts for the preceding accounting year, 
whose  scope  shall  cover  the  completeness,  accuracy  and  veracity  of  the 

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annual  accounts,  the  functioning  of  the  management  and  control  system 
and the legality and regularity of the underlying transactions; 

(ii) 

an  annual  control  report  setting  out  the  findings  of  the  audits  carried  out 
during the preceding accounting year. 

The  report  under  point  (ii)  shall  set  out  any  deficiencies  found  in  the 
management and control system and any corrective measures taken or proposed 
to be taken. 

Where  a  common  management  and  control  system  applies  to  more  than  one 
operational  programme,  the  information  required  under  point  (ii)  may  be 
grouped in a single report. 

The  Commission  shall  adopt,  by  means  of  implementing  acts,  models  for  the 
audit  strategy,  the  audit  opinion  and  the  annual  control  report,  as  well  as  the 
methodology  for  the  sampling  method  referred  to  in  paragraph  4.  These 
implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 143(3). 

Implementing rules concerning the use of data collected during audits carried out 
by Commission officials or authorised Commission representatives shall be adopted 
by the Commission in accordance with the examination procedure referred to in 
Article 143(3). 

CHAPTER III 

Accreditation 

Article 117 

Accreditation and withdrawal of accreditation of the managing authority and the 
certifying authority 

The accrediting body shall adopt a formal decision to accredit those managing 
authorities and certifying authorities that comply with the accreditation criteria 
that  have  been  established  by  the  Commission  by  means  of  delegated  acts  in 
accordance with Article 142. 

The formal decision referred to in paragraph 1 shall be based on a report and an 
opinion of an independent audit body that assesses the management and control 
system,  including  the  role  of  intermediate  bodies  therein,  and  its  compliance 
with Articles 62, 63, 114 and 115. The accrediting body shall take into account 
whether the management and control systems for the operational programme are 
similar  to  those  in  place  for  the  previous  programming  period,  as  well  as  any 
evidence of their effective functioning.  

6. 

7. 

1. 

2. 

EN 

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3. 

4. 

1. 

2. 

3. 

The Member State shall submit the formal decision referred to in paragraph 1 to 
the Commission within six months of the adoption of the decision adopting the 
operational programme. 

Where the total amount of support from the Funds to an operational programme 
exceeds EUR 250 000 000 the Commission may request, within two months of 
receipt  of  the  formal  decision  referred  to  in  paragraph  1,  the  report  and  the 
opinion  of  the  independent  audit  body  and  the  description  of  the  management 
and control system.  

The Commission may make observations within two months of receipt of these 
documents.  

In deciding whether to request those documents, the Commission shall take into 
account  whether  the  management  and  control  systems  for  the  operational 
programme  are  similar  to  those  in  place  for  the  previous  programming  period, 
whether  the  managing  authority  also  carries  out  the  functions  of  the  certifying 
authority, and any evidence of their effective functioning.  

Article 118 

Cooperation with audit authorities 

The Commission shall cooperate with audit authorities to coordinate their audit 
plans  and  methods  and  shall immediately exchange the  results  of  audits  carried 
out on management and control systems.  

To facilitate this cooperation in cases where a Member State designates more than 
one audit authority, the Member State may designate a coordination body. 

The Commission, the audit authorities and any coordination body shall meet on 
a regular basis and at least once a year, unless otherwise agreed, to examine the 
annual control report, the opinion and the audit strategy, and to exchange views 
on issues relating to improvement of the management and control systems. 

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TITLE VII 
FINANCIAL MANAGEMENT, CLEARANCE OF 
ACCOUNTS AND FINANCIAL CORRECTIONS 

CHAPTER I 

Financial management 

Article 119  

 Common rules for payments 

The  Member  State  shall  ensure  that  at  the  latest  by  the  closure  of  the  operational 
programme,  the  amount  of  public  support  paid  to  beneficiaries  is  at  least  equal  to  the 
contribution from the Funds paid by the Commission to the Member State. 

Article 120 

Common rules for calculating interim payments and payment of the annual and 
final balance 

1. 

2. 

3. 

The  Commission  shall  reimburse  as  interim  payments  90%  of  the  amount 
resulting from applying the co-financing rate for each priority axis laid down in 
the decision adopting the operational programme to the eligible expenditure for 
the  priority  axis  included  in  the  payment  application.  It  shall  determine  the 
annual balance in accordance with Article 130(1). 

The contribution from the Funds to a priority axis through the interim payments 
and payment of the annual and the final balance shall not be higher than: 

(a) 

(b) 

the  public  support  indicated  in  the  payment  application  for  the  priority 
axis; and 

the  contribution  from  the  Funds  for  the  priority  axis  laid  down  in  the 
decision of the Commission approving the operational programme. 

Notwithstanding  Article  22,  the  Union  support  through  the  interim  payments 
and payments of the final balance shall not be higher than the public support and 
the  maximum  amount  of  support  from  the  Funds  for  each  priority  axis  as  laid 
down in the decision of the Commission approving the operational programme. 

Article 121 

Payment applications  

1. 

Payment applications shall include, for each priority axis: 

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(a) 

(b) 

(c) 

the  total  amount  of  eligible  expenditure  paid  by  beneficiaries  in 
implementing  operations,  as  entered  into  the  accounts  of  the  certifying 
authority;  

the total amount of public support incurred in implementing operations, as 
entered into the accounts of the certifying authority; 

the  corresponding  eligible  public  support  which  has  been  paid  to  the 
beneficiary, as entered into the accounts of the certifying authority.  

2. 

3. 

Expenditure included  in  a payment application shall be supported by receipted 
invoices  or  accounting  documents  of  equivalent  probative  value,  except  for 
forms  of  support  under  Articles  57  (1)  (b)  (c)  and  (d),  58,  59  (1)  and  93  and 
under  Article  14  of  the  Regulation  (EU)  No  […]/2012  of  the  European 
Parliament  and  of  the  Council  of  the  European  Social  Funds  and  repealing 
Regulation (EC) No 1081/2006 [ESF]. For such forms of support, the amounts 
included  in  a  payment  application  shall  be  the  costs  reimbursed  to  the 
beneficiary by the managing authority.  

The  Commission  shall  adopt,  by  means  of  implementing  acts,  the  model  for 
payment applications. These implementing acts shall be adopted in accordance 
with the advisory procedure referred to in Article 143(2). 

Article 122 

Payment to beneficiaries 

Managing  authorities  shall  ensure  that  the  beneficiaries  receive  the  total  amount  of  the 
public support as quickly as possible and in full and in any event before the inclusion of 
the corresponding expenditure in the payment application. No amount shall be deducted 
or withheld and no specific charge or other charge with equivalent effect shall be levied 
that would reduce these amounts for the beneficiaries. 

Article 123 

Use of the euro 

1. 

2. 

Member States which have not adopted the euro as their currency on the date of 
an application for payment shall convert the amounts of expenditure incurred in 
national currency into euro. This amount shall be converted into euro using the 
monthly  accounting  exchange  rate  of  the  Commission  in  the  month  during 
which the expenditure was registered in the accounts of the managing authority 
of  the  operational  programme  concerned.  This  rate  shall  be  published 
electronically by the Commission each month.  

When  the  euro  becomes  the  currency  of  a  Member  State,  the  conversion 
procedure  set  out  in  paragraph  1  shall  continue  to  apply  to  all  expenditure 
recorded in the accounts by the managing authority before the date of entry into 
force of the fixed conversion rate between the national currency and the euro.  

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Article 124 

Payment of pre-financing 

1. 

The initial pre-financing amount shall be paid in instalments as follows: 

(a) 

(b) 

(c) 

in  2014:  2 %  of  the  amount  of  support  from  the  Funds  for  the  entire 
programming period to the operational programme; 

in  2015:  1 %  of  the  amount  of  support  from  the  Funds  for  the  entire 
programming period to the operational programme; 

in  2016:  1 %  of  the  amount  of  support  from  the  Funds  for  the  entire 
programming period to the operational programme. 

If an operational programme is adopted in 2015 or later, the earlier instalments 
shall be paid in the year of adoption. 

2. 

An annual pre-financing amount shall be paid before 1 July in the years 2016 to 
2022. In 2016, it shall be 2 % of the amount of the support from the Funds for 
the whole programming period to the operational programme. In the years 2017 
to  2022,  it  shall  be  2,5%  of  the  amount  of  the  support  from  the  Funds  for  the 
whole programming period to the operational programme. 

Article 125 

Clearance of pre-financing 

The amount paid as annual pre-financing shall be cleared from the Commission accounts 
in accordance with Article 130. 

Article 126 

Deadlines for presentation of interim payment applications and for their payment 

1. 

2. 

3. 

4. 

The  certifying  authority  shall  submit  on  a  regular  basis  an  application  for 
interim payment covering amounts entered in its accounts as public support paid 
to beneficiaries in the accounting year ending 30 June. 

The  certifying  authority  shall  submit  the  final  application  for  interim  payment 
by 31 July following the end of the previous accounting year and, in any event, 
before the first application for interim payment for the next accounting year. 

The first application for interim payment shall not be made before the formal act 
accrediting the managing authority has been received by the Commission. 

Interim  payments  shall  not  be  made  for  an  operational  programme  where  the 
annual  implementation  report  has  not  been  sent  to  the  Commission  in 
accordance with Article 101.  

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5. 

1. 

2. 

3. 

4. 

Subject  to  available  funding,  the  Commission  shall  make  the  interim  payment 
no later than 60 days after the date on which a payment application is registered 
with the Commission.  

Article 127 

Decommitment 

The  Commission  shall  decommit  any  part  of  the  amount  calculated  in 
accordance with the second subparagraph in an operational programme that has 
not  been  used  for  payment  of  the  initial  and  annual  pre-financing,  interim 
payments  and  annual  balance  by  31  December  of  the  second  financial  year 
following the year  of budget  commitment under the operational programme or 
for  which  a  payment  application  has  not  been  sent  in  accordance  with  Article 
126(1). 

For  the  purposes  of  the  decommitment,  the  Commission  shall  calculate  the 
amount  by  adding  one  sixth  of  the  annual  budget  commitment  related  to  the 
2014 total annual contribution to each of the 2015 to 2020 budget commitments. 

By way of derogation from the first subparagraph of paragraph 1, the deadlines 
for decommitment shall not apply to the annual budget commitment related to 
the 2014 total annual contribution. 

If  the  first  annual  budget  commitment  is  related  to  the  2015  total  annual 
contribution, by  way  of  derogation  from paragraph  1,  the  deadlines  for 
decommitment shall not apply to the annual budget commitment related to the 
total annual contribution of 2015. In such cases, the Commission shall calculate 
the amount under the first sub-paragraph of paragraph 1 by adding one fifth of 
the annual budget commitment related to the 2015 total amount contribution to 
each of the 2016 to 2020 budget commitments. 

That part of commitments still open on 31 December 2022 shall be decommitted 
if any of the documents required under Article 107(1) has not been submitted to 
the Commission by 30 September 2023. 

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CHAPTER II 

Clearance of accounts and closure  

SECTION I  

CLEARANCE OF ACCOUNTS  

Article 128 

Content of the annual accounts 

1. 

The  certified  annual  accounts  for  each  operational  programme  shall  cover  the 
accounting year and shall include at the level of each priority axis: 

(a) 

(b) 

(c) 

(d) 

the  total  amount  of  eligible  expenditure  entered  into  the  accounts  of  the 
certifying authority as having been paid by beneficiaries in implementing 
operations  and  the  corresponding  eligible  public  support  which  has  been 
paid  and  the  total  amount  of  public  support  incurred  in  implementing 
operations; 

the  amounts  withdrawn  and  recovered  during  the  accounting  year,  the 
amounts  to  be  recovered  as  at  the  end  of  the  accounting  year,  the 
recoveries effected pursuant to Article 61, and the irrecoverable amounts; 

for  each  priority  axis,  the  list  of  operations  completed  during  the 
accounting year that were supported by ERDF and Cohesion Fund; 

for  each  priority  axis,  a  reconciliation  between  the  expenditure  stated 
pursuant to point (a) and the expenditure declared in respect of the same 
accounting year in payment applications, accompanied by an explanation 
of any differences. 

2. 

The certifying authority may specify by priority axis in the accounts a provision, 
which  shall  not  exceed  5 %  of  the  total  expenditure  in  payment  applications 
presented for a given accounting year, where the assessment of the legality and 
regularity  of the expenditure  is  subject to an  ongoing  procedure with the  audit 
authority.  The  amount  covered  shall  be  excluded  from  the  total  amount  of 
eligible  expenditure  referred  to  in  paragraph  1(a).  These  amounts  shall  be 
definitively included in, or excluded from, the annual accounts of the following 
year.  

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Article 129 

Submission of information 

For  each  year  from  2016  until  and  including  2022,  the  Member  State  shall  submit  the 
documents referred to in Article 75(1).  

Article 130 

Annual clearance of accounts 

1. 

For  the  purposes  of  calculating  the  amount  chargeable  to  the  Funds  for  an 
accounting year, the Commission shall take into account: 

(a) 

the  total  amount  of  expenditure  entered  into  the  accounts  referred  to  in 
Article 128(1)(a), to which shall be applied the co-financing rate for each 
priority axis; 

(b) 

the  total  amount  of  payments  made  by  the  Commission  during  that 
accounting year, consisting of: 

(i) 

the  amount  of  interim  payments  paid  by  the  Commission  in 
accordance with Article 120(1) and Article 22; and  

(ii) 

the amount of the annual pre-financing paid under Article 124(2). 

The  annual  balance  which,  as  a  result  of  the  clearance  of  accounts,  is 
recoverable  from  the  Member  State  shall  be  subject  to  a  recovery  order  of  the 
Commission. The annual balance payable to the Member State shall be added to 
the  next  interim  payment  made  by  the Commission  following  the  clearance  of 
accounts. 

If,  for  reasons  attributable  to  a  Member  State,  the  Commission  is  not  in  a 
position  to  clear  the  accounts  by  30  April  of  the  year  following  the  end  of  an 
accounting  year,  the  Commission  shall  notify  the  Member  State  of  the  actions 
that must be undertaken by the managing authority or audit authority, or of the 
additional enquiries the Commission proposes to undertake pursuant to Article 
65(2) and (3). 

Payment  of  the  annual  balance  by  the  Commission  shall  be  based  on  the 
expenditure  declared  in  the  accounts,  net  of  any  provision  made  in  respect  of 
expenditure  declared  to  the  Commission  which  is  subject  to  a  contradictory 
procedure with the audit authority. 

2. 

3. 

4. 

Article 131 

Rolling Closure 

1. 

For the ERDF and the Cohesion Fund, the annual accounts for each operational 
programme shall include at the level of each priority axis the list of operations 

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completed  during  the  accounting  year.  The  expenditure  relating  to  these 
operations  included  in  the  accounts  subject  to  the  clearance  decision  shall  be 
considered as closed. 

2. 

For  the  ESF,  the  expenditure  included  in  the  accounts  that  are  subject  to  a 
clearance decision shall be considered as closed. 

Article 132 

Availability of documents 

1. 

2. 

3. 

4. 

5. 

6. 

Without prejudice to the rules governing State aid, the managing authority shall 
ensure  that  all  supporting  documents  on  operations  are  made  available  to  the 
Commission  and  the  European  Court  of  Auditors  upon  request  for  a  period  of 
three years. This three year period shall run from 31 December of the year of the 
clearance of accounts decision pursuant to Article 130 or, at the latest, from the 
date of payment of the final balance. 

This  three  year  period  shall  be  interrupted  either  in  the  case  of  legal  or 
administrative proceedings or by a duly justified request of the Commission. 

The documents shall be kept either in the form of the originals, or certified true 
copies  of  the  originals,  or  on  commonly  accepted  data  carriers  including 
electronic  versions  of  original  documents  or  documents  existing  in  electronic 
version only. 

The  documents  shall  be  kept  in  a  form  which  permits  identification  of  data 
subjects for no longer than is necessary for the purposes for which the data were 
collected or for which they are further processed. 

The Commission shall be empowered to adopt delegated acts in accordance with 
Article  142  to  set  out  which  data  carriers  can  be  considered  as  commonly 
accepted. 

The procedure for certification of conformity of documents held on commonly 
accepted  data  carriers  with  the  original  document  shall  be  laid  down  by  the 
national authorities and shall ensure that the versions held comply with national 
legal requirements and can be relied on for audit purposes. 

Where  documents  exist  in  electronic  version  only,  the  computer  systems  used 
must  meet  accepted  security  standards  that  ensure  that  the  documents  held 
comply with national legal requirements and can be relied on for audit purposes. 

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SECTION II  

CLOSURE OF OPERATIONAL PROGRAMMES  

Article 133 

 Submission of closure documents and payment of the final balance 

1. 

Member States shall submit the following documents by 30 September 2023: 

(a) 

an application for payment of the final balance; 

(b) 

a final implementation report for the operational programme; and 

(c) 

the  documents  referred  to  in  Article  75(1)  for  the  final  accounting  year, 
from 1 July 2022 to 30 June 2023.  

2. 

The  final  balance  shall  be  paid  no  later  than  three  months  after  the  date  of 
clearance of accounts of the final accounting year or one month after the date of 
acceptance of the final implementation report, whichever date is later. 

SECTION III 

SUSPENSION OF PAYMENTS 

Article 134 

 Suspension of payments 

1. 

All  or  part  of  the  interim  payments  at  the  level  of  priority  axes  or  operational 
programmes may be suspended by the Commission where:  

(a) 

(b) 

(c) 

(d) 

there is a serious deficiency in the management and control system of the 
operational  programme  for  which  corrective  measures  have  not  been 
taken;  

expenditure  in  a  statement  of  expenditure  is  linked  to  an  irregularity 
having serious financial consequences which has not been corrected;  

the  Member  State  has  failed  to  take  the  necessary  action  to  remedy  the 
situation giving rise to an interruption under Article 74; 

there is a serious deficiency in the quality and reliability of the monitoring 
system or of the data on common and specific indicators; 

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(e) 

(f) 

(g) 

 the Member State has failed to undertake actions set out in the operational 
programme relating to fulfilment of an ex ante conditionalities; 

there is evidence resulting from a performance review that a priority axis 
has failed to achieve the milestones set out in the performance framework; 

the  Member  State  fails  to  respond  or  does  not  reply  satisfactorily  under 
Article 20(5); 

(h)  one of the cases set out in Article 21(6)(a) to (e) applies. 

The Commission may decide, by means of implementing acts, to suspend all or 
part of interim payments, after having given the Member State the opportunity 
to present its observations. 

The Commission shall end suspension of all or part of interim payments where 
the Member State has taken the necessary measures to enable the suspension to 
be lifted.  

CHAPTER III 

Financial corrections 

SECTION I 

FINANCIAL CORRECTIONS BY MEMBER STATES 

Article 135 

 Financial corrections by Member States 

The  Member  States  shall  in  the  first  instance  be  responsible  for  investigating 
irregularities  and  for  making  the  financial  corrections  required  and  pursuing 
recoveries. In the case of a systemic irregularity, the Member State shall extend its 
investigation to cover all operations potentially affected. 

The Member State shall make the financial corrections required in connection with 
individual  or  systemic  irregularities  detected  in  operations  or  operational 
programmes.  Financial  corrections  shall  consist  of  cancelling  all  or  part  of  the 
public  contribution  to  an  operation  or  operational  programme.  The  Member 
State  shall  take  into  account  the  nature  and  gravity  of  the  irregularities  and  the 
financial loss to the Funds and shall apply a proportionate correction. Financial 
corrections shall be recorded in the annual accounts by the managing authority 
for the accounting year in which the cancellation is decided. 

2. 

3. 

1. 

2. 

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3. 

4. 

The contribution from the Funds cancelled in accordance with paragraph 2 may 
be  reused  by  the  Member  State  within  the  operational  programme  concerned, 
subject to paragraph 4. 

The  contribution  cancelled  in  accordance  with  paragraph  2  may  not  be  reused 
for  any  operation  that  was  the  subject  of  the  correction  or,  where  a  financial 
correction is made for a systemic irregularity, for any operation affected by the 
systemic irregularity. 

SECTION II 

FINANCIAL CORRECTIONS BY THE COMMISSION 

Article 136 

 Criteria for financial corrections 

1. 

The  Commission  shall  make  financial  corrections  by  means  of  implementing 
acts  by  cancelling  all  or  part  of  the  Union  contribution  to  an  operational 
programme  in  accordance  with  Article  77  where,  after  carrying  out  the 
necessary examination, it concludes that: 

(a) 

(b) 

(c) 

there is a serious deficiency in the management and control system of the 
operational  programme  which  has  put  at  risk  the  Union  contribution 
already paid to the operational programme; 

the Member State has not complied with its obligations under Article 135 
prior to the opening of the correction procedure under this paragraph; 

expenditure  contained  in  a  payment  application  is  irregular  and  has  not 
been corrected by the Member State prior to the opening of the correction 
procedure under this paragraph. 

The  Commission  shall  base  its  financial  corrections  on  individual  cases  of 
irregularity  identified  and  shall  take  account  of  whether  an  irregularity  is 
systemic.  When  it  is  not  possible  to  quantify  precisely  the  amount  of  irregular 
expenditure  charged  to  the  Funds,  the  Commission  shall  apply  a  flat  rate  or 
extrapolated financial correction. 

2. 

3. 

The  Commission  shall,  when  deciding  the  amount  of  a  correction  under 
paragraph  1,  take  account  of  the  nature  and  gravity  of  the  irregularity  and  the 
extent and financial implications of the deficiencies in management and control 
systems found in the operational programme. 

Where the Commission bases its position on reports of auditors other than those 
of  its  own  services,  it  shall  draw  its  own  conclusions  regarding  the  financial 
consequences  after  examining  the  measures  taken  by  the  Member  State 
concerned under Article 135(2), the notifications sent under Article 112(3), and 
any replies from the Member State. 

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4. 

5. 

6. 

1. 

2. 

3. 

4. 

5. 

Where  the  Commission,  based  on  the  examination  of  the  final  implementation 
report of the operational programme, establishes a serious failure to achieve the 
targets set out in the performance framework, it may apply financial corrections 
in respect of the priority axes concerned by means of implementing acts. 

When  a  Member  State  does  not  comply  with  its  obligations  as  referred  to  in 
Article 86,  the  Commission  may,  in  relation  to  the  degree  of  non-compliance 
with  these  obligations,  make  a  financial  correction  by  cancelling  all  or  part  of 
the Structural Funds contribution to the Member State concerned. 

The Commission shall be empowered to adopt delegated acts in accordance with 
Article  142  establishing  the  criteria  for  establishing  the  level  of  financial 
correction to be applied. 

Article 137 

Procedure 

Before taking a decision on a financial correction, the Commission shall launch 
the procedure by informing the Member State of the provisional conclusions of its 
examination and requesting the Member State to submit its comments within two 
months. 

Where  the  Commission  proposes  a  financial  correction  on  the  basis  of 
extrapolation  or  a  flat  rate,  the  Member  State  shall  be  given  the  opportunity  to 
demonstrate,  through  an  examination  of  the  documentation  concerned,  that  the 
actual extent of irregularity is less than the Commission's assessment. In agreement 
with the Commission, the Member State may limit the scope of this examination 
to an appropriate proportion or sample of the documentation concerned. Except in 
duly  justified  cases,  the  time  allowed  for  this  examination  shall  not  exceed  a 
further period of two months after the two-month period referred to in paragraph 
1. 

The  Commission  shall  take  account  of  any  evidence  supplied  by  the  Member 
State within the time limits set out in paragraphs 1 and 2. 

Where  the  Member  State  does  not  accept  the  provisional  conclusions  of  the 
Commission, the Member State shall be invited to a hearing by the Commission, 
in order to ensure that all relevant information and observations are available as a 
basis  for  conclusions  by  the  Commission  on  the  application  of  the  financial 
correction. 

In  order  to  apply  financial  corrections  the  Commission  shall  take  a  decision,  by 
means of implementing acts, within six months of the date of the hearing, or of 
the  date  of  receipt  of  additional  information  where  the  Member  State  agrees  to 
submit  such  additional  information  following  the  hearing.  The  Commission  shall 
take  account  of  all  information  and  observations  submitted  during  the  course  of 
the procedure. If no hearing takes place, the six month period shall begin to run 
two  months  after  the  date  of  the  letter  of  invitation  to  the  hearing  sent  by  the 
Commission. 

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6. 

Where  irregularities  affecting  annual  accounts  sent  to  the  Commission  are 
detected by the Commission or by the European Court of Auditors, the resulting 
financial  correction  shall  reduce  support  from  the  Funds  to  the  operational 
programme.  

Article 138 

Obligations of Member States 

A  financial  correction  by  the  Commission  shall  not  prejudice  the  Member  State's 
obligation  to  pursue  recoveries  under  Article 135(2)  of  this  Regulation  and  to  recover 
State aid in the meaning of Article 107(1) of the Treaty and under Article 14 of Council 
Regulation (EC) No 659/199938. 

Article 139 

Repayment 

1. 

2. 

Any  repayment  due  to  be  made  to  the  general  budget  of  the  Union  shall  be 
effected  before  the  due  date  indicated  in  the  order  for  recovery  drawn  up  in 
accordance  with  Article 73  of  the  Financial  Regulation.  The  due  date  shall  be 
the last day of the second month following the issuing of the order. 

Any  delay  in  effecting  repayment  shall  give  rise  to  interest  on  account  of  late 
payment, starting on the due date and ending on the date of actual payment. The 
rate  of  such  interest  shall  be  one-and-a-half  percentage  points  above  the  rate 
applied by the European Central Bank in its main refinancing operations on the 
first working day of the month in which the due date falls. 

TITLE VIII 

Proportional control of operational programmes  

Article 140 

Proportional control of operational programmes 

1. 

the 

Operations  for  which 
total  eligible  expenditure  does  not  exceed 
EUR 100 000  shall  not  be  subject  to  more  than  one  audit  by  either  the  audit 
authority  or  the  Commission  prior  to  the  closure  of  all  the  expenditure 
concerned under Article 131. Other operations shall not be subject to more than 
one audit per accounting year by the audit authority and the Commission prior to 

38

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2. 

3. 

4. 

the closure of all the expenditure concerned under Article 131. These provisions 
are without prejudice to paragraph 4.  

For  operational  programmes  for  which  the  most  recent  audit  opinion  indicates 
that  there  are  no  significant  deficiencies,  the  Commission  may  agree  with  the 
audit  authority  in  the  subsequent  meeting  referred  to  in  Article  118(3)  that  the 
level of audit work required may be reduced so that it is proportionate to the risk 
established. In such cases, the Commission will not carry out its own on-the-spot 
audits  unless  there  is  evidence  suggesting  deficiencies  in  the  management  and 
control  system  affecting  expenditure  declared  to  the  Commission  in  an 
accounting  year  for  which  the  accounts  have  been  the  subject  of  a  clearance 
decision. 

For  operational  programmes  for  which  the  Commission  concludes  that  it  can 
rely on the opinion of the audit authority, it may agree with the audit authority to 
limit  its  own  on  the  spot  audits  to  audit the  work  of  the  audit  authority  unless 
there is evidence of deficiencies in the work of the audit authority work for an 
accounting  year  for  which  the  accounts  have  been  subject  to  a  clearance 
decision.  

Without prejudice to paragraph 1, the audit authority and the Commission may 
carry out audits of operations in case a risk assessment establishes a specific risk 
of  irregularity  or  fraud,  in  case  of  evidence  of  serious  deficiencies  in  the 
management and control system of the operational programme concerned, and, 
during the 3 years following closure of all the expenditure of an operation under 
Article 131, as part of an audit sample. The Commission may at any time carry 
out  audits  of  operations  for  the  purpose  of  assessing  the  work  of  an  audit 
authority by re-performance of its audit activity. 

PART FOUR 

DELEGATIONS OF POWER, IMPLEMENTING, 
TRANSITIONAL AND FINAL PROVISIONS 

CHAPTER I 

Delegations of power and implementing provisions 

Article 141 

Amendment of the Annexes 

The Commission may adopt, by means of delegated acts in accordance with Article 142, 
amendments to the Annexes I and V to this Regulation within the scope of the relevant 
provisions of this Regulation. 

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1. 

2. 

3. 

4. 

5. 

Article 142 

Exercise of the delegation 

The powers to adopt delegated acts are conferred on the Commission subject to 
the conditions laid down in this Article.  

The delegations of power referred to in this Regulation shall be conferred for an 
indeterminate period of time from the date of entry into force of this Regulation. 

The delegations of power referred to in Article 141 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. 

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

The delegated acts 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.  

If, on expiry of that period, neither the European Parliament nor the Council has 
objected to the delegated act, it shall be published in the Official Journal of the 
European Union and shall enter into force at the date stated therein. 

The  delegated  act  may  be  published  in  the  Official  Journal  of  the  European 
Union  and  enter  into  force  before  the  expiry  of  that  period  if  the  European 
Parliament  and  the  Council  have  both  informed  the  Commission  of  their 
intention not to raise objections. 

If the European Parliament or the Council objects to a delegated act, the act shall 
not enter into force. The institution that objects  to the delegated  act shall state 
the reasons for its objections. 

Article 143  

Committee Procedure 

1. 

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

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2. 

3. 

Where  reference  is  made  to  this  paragraph,  Article  4  of  Regulation  (EU)  No 
182/2011 shall apply. 

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

Where the opinion of the committee under paragraphs 2 and 3 is to be obtained 
by  written  procedure,  that  procedure  shall  be  terminated  without  result  when, 
within the time-limit for delivery of the opinion, the chair of the committee so 
decides committee members so request. 

Where  the  committee  delivers  no  opinion,  the  Commission  shall  not  adopt  the 
draft implementing act and the third subparagraph of Article 5(4) of Regulation 
(EU) No 182/2011 shall apply. 

CHAPTER II 
Transitional and final provisions 

Article 144 

Review 

The European Parliament and the Council shall review this Regulation by 31 December 
20XX in accordance with Article 177 of the Treaty.  

Article 145 

Transitional provisions 

This Regulation shall not affect the continuation or modification, including the 
total or partial cancellation, of the projects concerned, until their closure, or of 
assistance approved by the Commission on the basis of that Regulation or any 
other legislation applying to that assistance on 31 December 2013. 

Applications  made  under  Council  Regulation (EC) No 1083/2006 shall remain 
valid. 

Article 146 

Repeal 

Council  Regulation  (EC)  No 1083/2006  is  hereby  repealed  with  effect  from  1 
January 2014. 

References  to  the  repealed  Regulation  shall  be  construed  as  references  to  this 
Regulation. 

1. 

2. 

1. 

2. 

EN 

131 

   EN 

 
 
 
 
 
 
Article 147 

Entry into force 

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

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

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

132 

   EN 

 
 
ANNEX I 

Method for establishing the performance framework 

1. 

The  performance  framework  shall  consist  of  milestones  established  for  each  priority, 
where  appropriate,  for  the  years  2016  and  2018  and  targets  established  for  2022.  The 
milestones and targets shall be presented in accordance with the format set out in table 1.  

Table 1: Standard format for the performance framework 

Priority  

Indicator 
and 
measurement  unit, 
where appropriate 

Milestone 
2016 

for 

Milestone 
2018 

for 

Target for 2022 

2. 

Milestones  are  intermediate  targets  for  the  achievement  of  the  specific  objective  of  a 
priority,  where  appropriate,  expressing  the  intended  progress  towards  the  targets  set  for 
the  end  of  the  period.  Milestones  established  for  2016  shall  include  financial  indicators 
and  output  indicators.  Milestones  established  for  2018  shall  include  financial  indicators, 
output  indicators  and  where  appropriate,  result  indicators.  Milestones  may  also  be 
established for key implementation steps.  

3. 

Milestones shall be:  

– 

– 

– 

– 

relevant, capturing essential information on the progress of a priority; 

transparent,  with  objectively  verifiable  targets  and  the  source  data  identified  and 
publicly available; 

verifiable, without imposing a disproportionate administrative burden;  

consistent across operational programmes, where appropriate. 

EN 

133 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNEX II 

Annual breakdown of commitment appropriations for 2014 to 2020 

[…] 

EN 

134 

   EN 

 
 
ANNEX III 

Additionality 

1. 

PUBLIC OR EQUIVALENT STRUCTURAL EXPENDITURE 

The  figure  on  Gross  Fixed  Capital  Formation  in  column  X-1,  expressed  as  a  share  of  GDP, 
according  to  Table  2  of  Annex  2  of  the  "Guidelines  on  the  format  and  content  of  Stability  and 
Convergence Programmes"39, will be used to determine public or equivalent structural expenditure. 

2. 

VERIFICATION 

Verifications of additionality in accordance with Article 86(3) are subject to the following rules: 

2.1 

Ex-ante verification 

(a) 

When a Member State submits a Partnership Contract, it shall provide information on the 
planned profile of expenditure in the format of Table 1 below. In those Member States in 
which less developed and intermediate regions cover more than 15% and less than 70% of 
the  population,  information  about  the  expenditure  in  [less  developed  and  intermediate 
regions] shall be provided in the same format.  

Table 1 

2014  2015  2016  2017  2018 2019 2020

Expenditure 
of the 
General 
Government 
as a share of 
GDP 

P51 

X 

X 

X 

X 

X 

X 

X 

(b)  Member  State  shall  provide  to  the  Commission  information  on  the  main  macroeconomic 
indicators and forecasts underlying the level of public or equivalent structural expenditure. 

(c) 

Once there is agreement by the Commission and the Member State, Table 1 above will be 
included in the Partnership Contract of the Member State concerned as the reference level 
of the public or equivalent structural expenditure to be maintained in the years 2014-2020. 

2.2  Mid-term verification 

(a) 

At  the  time  of  the  mid-term  verification,  a  Member  State  shall  be  deemed  to  have 
maintained the level of public or equivalent structural expenditure if the annual average of 
expenditure  in  the  years  2014-2017  is  equal  to  or  higher  than  the  reference  level  of 
expenditure set in the Partnership Contract.  

39

As endorsed by the ECOFIN Council on 7 September 2010. 

EN 

135 

   EN 

 
 
 
                                                 
 
(b) 

Following  the  mid-term  verification,  the  Commission  may  revise,  in  consultation  with  a 
Member  State,  the  reference  level  of  public  or  equivalent  structural  expenditure  in  the 
Partnership  Contract  if  the  economic  situation  of  the  Member  State  has  significantly 
changed  since  adoption  of  the  Partnership  Contract  and  the  change  was  not  taken  into 
account when setting the reference level in the Partnership Contract.  

2.3 

Ex post verification 

At  the  time  of  the  ex  post  verification,  a  Member  State  shall  be  deemed  to  have  maintained  the 
level of public or equivalent structural expenditure if the annual average of expenditure in the years 
2014-2020  is  equal  to  or  higher  than  the  reference  level  of  expenditure  set  in  the  Partnership 
Contract.  

3. 

FINANCIAL CORRECTION RATES FOLLOWING EX POST VERIFICATION 

Where the Commission decides to carry out a financial correction in accordance with Article 86(4), 
the rate of financial correction shall be obtained by subtracting 3% from the difference between the 
reference level in the Partnership Contract and the level achieved, expressed as a percentage of the 
reference level, and then dividing the result by 10. The financial correction shall be determined by 
applying that rate of financial correction to the Funds' contribution to the Member State concerned 
for the less developed and transition regions for the full programming period. 

If  the  difference  between  the  reference  level  in  the  Partnership  Contract  and  the  level  achieved, 
expressed  as  a  percentage  of  the  reference  level  in  the  Partnership  Contract,  is  3  %  or  less,  no 
financial correction shall be made. 

The  financial  correction  shall  not  exceed  5  %  of  the  Funds'  allocation  to  the  Member  State 
concerned  for  the  less  developed  and  transition  regions  for  the  full  programming  period.

EN 

136 

   EN 

 
ANNEX IV 

Ex ante conditionalities 

Thematic ex ante conditionalities 

Thematic 
objectives 

Ex ante conditionality 

Criteria for fulfilment 

Strengthening 

1. 
research, 
technological 
development 
innovation 
target) 

and 
(R&D 

(referred 
to 
Article 9(1) ) 

in 

1.1.  Research  and 
innovation:  The 
existence  of  a  national  or  regional 
research  and  innovation  strategy  for 
smart  specialisation  in  line  with  the 
National  Reform  Program,  to  leverage 
private 
innovation 
expenditure,  which  complies  with  the 
features  of  well-performing  national  or 
innovation 
regional 
systems40. 

research 

research 

and 

and 

2. 
Enhancing 
access  to  and  use 
of 
quality 
and 

2.1. Digital growth: The existence within 
the  national  or 
innovation 
strategy  for  smart  specialisation  of  an 

regional 

– 

A  national  or  regional  research  and  innovation  strategy  for  smart  specialisation  is  in 
place that: 

– 

– 

– 

is based on a SWOT analysis to concentrate resources on a limited set of research 
and innovation priorities; 

outlines measures to stimulate private RTD investment; 

contains a monitoring and review system. 

– 

– 

– 

A Member State has adopted a framework outlining available budgetary resources for 
research and innovation; 

A  Member  State  has  adopted  a  multi-annual  plan  for  budgeting  and  prioritization  of 
investments  linked  to  EU  priorities  (European  Strategy  Forum  on  Research 
Infrastructures -ESFRI). 

A  chapter  for  digital  growth  within  the  national  or  regional  innovation  strategy  for 

40

EN 

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Europe 2020 Flagship Initiative Innovation Union 
(COM(2010)  546  final  of  6.10.2010).  Commitments  24/25  and  Annex  I  "Self  assessment  tool:  Features  of  well  performing  national  and  regional  research  and  innovations  systems".  Conclusions  of  the 
Competitiveness Council: Conclusions on Innovation Union for Europe (doc. 17165/10 of 26.11.2010). 

137 

EN 

 
  
 
                                                 
 
and 

information 
communication 
technologies 
(Broadband 
target) 

to 
(referred 
Article 9(2) ) 

in 

explicit  chapter  for  digital  growth  to 
stimulate  demand  for  affordable,  good 
quality  and  interoperable  ICT-enabled 
private  and  public  services  and  increase 
uptake  by  citizens,  including  vulnerable 
groups, 
public 
administrations  including  cross  border 
initiatives. 

businesses 

and 

smart specialisation is in place that contains: 

– 

– 

– 

budgeting  and  prioritisation  of  actions  through  a  SWOT  analysis  carried  out  in 
alignment with the Scoreboard of the Digital Agenda for Europe41; 

an  analyses  of  balancing  support  for  demand  and  supply  of  information  and 
communication technologies (ICT) should have been conducted; 

measurable  targets  for  outcomes  of  interventions  in  the  field  of  digital  literacy, 
skills,  e-inclusion,  e-accessibility,  and  e-health  which  are  aligned  with  existing 
relevant sectoral national or regional strategies. 

2.2.  Next  Generation  Access  (NGA) 
Infrastructure: The existence of national 
NGA  Plans  which 
take  account  of 
regional actions in order to reach the EU 
targets42, 
high-speed 
Internet  access 
focusing on areas where the market fails 
to  provide  an  open  infrastructure  at  an 
to  an  adequate 
affordable  cost  and 
quality  in  line  with  the  EU  competition 
and 
rules,  and  provide 
accessible services to vulnerable groups. 

state  aid 

– 

assessment of needs to reinforce ICT capacity-building. 

– 

A national NGA Plan is in place that contains: 

– 

– 

a plan of infrastructure investments through demand aggregation and a mapping 
of infrastructure and services, regularly updated; 

sustainable  investment  models  that  enhance  competition  and  provide  access  to 
open, affordable, quality and future proof infrastructure and services;  

– 

measures to stimulate private investment. 

3.  Enhancing  the 
competitiveness  of 

3.1.  Specific  actions  have  been  carried 
out  for  the  effective  implementation  of 

– 

The specific actions include: 

41

42

EN 

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: A Digital Agenda for Europe (COM(2010) 245 
final/2 of 26.8.2010); Commission Staff Working Paper: Digital Agenda Scoreboard (SEC(2011) 708 of 31.5.2011). Conclusions of the Transport, Telecommunications and Energy Council on the Digital Agenda for 
Europe (doc. 10130/10 of 26 May 2010) 
Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: A Digital Agenda for Europe (COM(2010) 245 
final/2 of 26.8.2010); Commission Staff Working Paper: Digital Agenda Scoreboard (SEC(2011) 708 of 31.5.2011).  

138 

EN 

 
  
 
                                                                                                                                                                                                                                                     
 
 
small and medium-
enterprises 
sized 
(SMEs) 

the  Small  Business  Act  (SBA)  and  its 
Review of 23 February 201143 including 
the "Think Small First" principle. 

(referred 
Article 9(3)) 

to 

in 

3.2.  Transposition  into  national  law  of 
Directive  (2011/7/EU)  of  the  European 
the  Council  of 
Parliament  and  of 
16 February  2011  on  combating  late 
payment in commercial transactions44. 

4.1. Energy efficiency: Transposition into 
national  law  of  Directive  (2010/31/EU) 
of  the  European  Parliament  and  of  the 
Council  of  19  May  2010  on  the  energy 
performance  of  buildings  in  accordance 
with Article 28 of the Directive 45. 

Compliance  with  Article  6(1)  of 

– 

– 

– 

towards 

4.  Supporting  the 
a 
shift 
low-carbon 
economy 
sectors  

all 

in 

(referred 

to 

in 

– 

– 

– 

– 

a  monitoring  mechanism  to  ensure  the  implementation  of  the  SBA  including  a 
body in charge of coordinating SME issues across different administrative levels 
(“SME Envoy”); 

measures to reduce the time to set-up business to 3 working days and the cost to 
€100;  

measures  to  reduce  the  time  needed  to  get  licenses  and  permits  to  take  up  and 
perform the specific activity of an enterprise to 3 months; 

a  mechanism  for  systematic  assessment  of  the  impact  of  legislation  on  SMEs 
using  an  "SME  test"  while  taking  into  account  differences  in  the  size  of 
enterprises, where relevant. 

Transposition  of that  Directive in accordance with Article 12 of the Directive (by 16 
March 2013). 

Implementation  of  minimum  requirements  related  to  the  energy  performance  of 
buildings  required  in  line  with  Article  3,  Article  4  and  Article  5  of  Directive 
2010/31/EU  

Adoption  of  measures  necessary  to  establish  a  system  of  certification  of  the  energy 
performance of buildings in accordance with Article 11 of Directive 2010/31/EU; 

43

44

45

46

EN 

Communication  from  the  Commission  to  the  European  Parliament, the  Council,  the  European  Economic  and  Social  Committee  and  the  Committee  of  the  Regions:  Think  Small  First  -  A  Small  Business  Act  for 
Europe (COM(2008) 394 of 23.6.2008); Conclusions of the Competitiveness Council: Think Small First – A Small Business Act for Europe (doc. 16788/08, 1.12.2008); Communication from the Commission to the 
European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions: Review of the "Small Business Act" for Europe (COM(2008) 78 final, 23.2.2011); Conclusions of the 
Competitiveness Council: Conclusions on the Review of the "Small Business Act" for Europe (doc. 10975/11 of 30.5.2011). 
OJ L 48, 23.2.2011, p. 1. 
OJ L 153, 18.6.2010, p. 13 
OJ L 140, 5.6.2009, p. 136. 

139 

EN 

 
  
 
 
 
 
                                                                                                                                                                                                                                                     
 
 
 
 
Article 9(4)) 

of 

Decision  No 406/2009/EC 
the 
European Parliament  and  of  the  Council 
the  effort  of 
of  23 April  2009  on 
Member 
their 
reduce 
to 
greenhouse  gas  emissions  to  meet  the 
Community’s  greenhouse  gas  emission 
reduction commitments up to 202046.  

States 

into  national 

Transposition 
law  of 
Directive  2006/32/EC  of  the  European 
Parliament and of the Council of 5 April 
2006  on  energy  end-use  efficiency  and 
energy services47. 

into  national 

Transposition 
law  of 
Directive  2004/8/EC  of  the  European 
Parliament  and  of  the  Council  of  11 
February  2004  on  the  promotion  of 
cogeneration  based  on  a  useful  demand 
in 
internal  energy  market  and 
amending Directive 92/42/EEC48. 

the 

national 

4.2.  Renewable  energy:  Transposition 
into 
of  Directive 
law 
2009/28/EC  of  the  European  Parliament 
and  of  the  Council  of  23  April  2009  on 
the promotion of the use of energy from 
renewable  sources  and  amending  and 
subsequently 
Directives 
(2001/77/EC) and (2003/30/EC)49. 

repealing 

– 

– 

– 

– 

– 

Realisation of the required rate of renovation of public buildings; 

Final customers are provided with individual meters; 

Efficiency in heating and cooling is promoted according to Directive 2004/8/EC. 

A Member State has put in place transparent support schemes, priority in grid access 
and  in  dispatching,  standard  rules  relating  to  the  bearing  and  sharing  of  costs  of 
technical adaptations which have been made public; 

A  Member  State  has  adopted  a  national  renewable  energy  action  plan  in  accordance 
with Article 4 of Directive 2009/28/EC. 

47
48 
49

OJ L 114, 27.4.2006, p. 64. 
OJ L 52, 21.2.2004, p.50. 
OJ L 140, 5.6.2009, p. 16. 

EN 

140 

EN 

 
  
 
 
 
                                                                                                                                                                                                                                                     
 
 
Promoting 
5. 
change 
climate 
adaptation  and  risk 
prevention 

(Climate 
target) 

change 

(referred 
Article 9(5) 

to 

in 

the 
6.  Protecting 
and 
environment 
promoting 
the 
sustainable  use  of 
resources 

(referred 
to 
Article 9(6) ) 

in 

and 

Risk 

5.1. 
risk 
prevention 
management:  The  existence  of  national 
or  regional  risk  assessments  for  disaster 
management. taking into account climate 
change adaptation50 

6.1.  Water  sector:  The  existence  of  a  a) 
water  pricing  policy  which  ensures 
provides adequate incentives for users to 
use water resources efficiently and b) an 
adequate  contribution  of  the  different 
water uses to the recovery of the costs of 
water  services, 
in  accordance  with 
Article 9 of Directive 2000/60/EC of the 
European Parliament  and  of  the  Council 
of  23  October  2000  establishing  a 
framework  for  Community  action  in  the 
field of water policy51. 

6.2.  Waste  sector:  Implementation  of 
Directive  2008/98/EC  of  the  European 
Parliament  and  of  the  Council  of  19 
November  2008  on  waste  and  repealing 
certain  Directives53,  in  particular  the 
development of waste management plans 
in  accordance  with  the  Directive  and 
with the waste hierarchy.. 

– 

– 

. 

– 

– 

– 

A national or regional risk assessment shall be in place that includes: 

– 

– 

– 

A description of the process, methodology, methods and non-sensitive data used 
for national risk assessment; 

A description of single-risk and multi-risk scenarios; 

Taking  into  account,  where  appropriate,  national  climate  change  adaptation 
strategies. 

A Member State has ensured contribution of the different water uses to the recovery of 
the  costs  of  water  services  by  sector  in  accordance  with  Article  9  of  Directive 
2000/60/EC. 

The  adoption  of  a  river  basin  management  plan  for  the  river  basin  district  where 
investments will take place in accordance with Article 13 of Directive 2000/60/EC of 
the  European  Parliament  and  of  the  Council  of  23  October  2000  establishing  a 
framework for Community action in the field of water policy52. 

A Member State has reported to the Commission on progress towards targets of Article 
11  of  Directive  2008/98/EC,  reasons  for  failure,  and  intended  actions  to  meet  the 
targets; 

A  Member  State  has  ensured  that  its  competent  authorities  establish,  in  accordance 
with Articles 1, 4, 13 and 16 of Directive 2008/98/EC, one or more waste management 

50

51

52

53

Conclusions of the Justice and Home Affairs Council; 11-12 April 2011, Conclusion on further developing risk assessments for disaster management in the European Union. 
OJ L 327, 22.12.2000, p. 1. 
OJ L 327, 22.12.2000, p. 1. 
OJ L 312, 22.11.2008, p. 3. 

EN 

141 

EN 

 
  
 
 
 
                                                 
 
 
 
 
– 

– 

– 

plans as required by Article 28 of the Directive; 

No  later  by  12  December  2013,  a  Member  State  has  established,  in  accordance  with 
Articles 1 and 4 of Directive 2008/98/EC, waste prevention programmes, as required 
by Article 29 of the Directive; 

A  Member  State  has  taken  necessary  measures  to  achieve  2020  target  on  re-use  and 
recycling in accordance with Article 11 of Directive 2008/98/EC. 

A comprehensive transport plan is in place that contains: 

– 

– 

– 

– 

prioritisation  of  investments  in  the  core  TEN-T  network,  the  comprehensive 
network and secondary connectivity. The prioritisation should take into account 
the  contribution  of  investments  to  mobility,  sustainability,  the  reduction  of 
greenhouse gas emissions and contribution to the Single European transport area; 

a  realistic  and  mature  project  pipeline  (including 
framework); 

timetable,  budgetary 

a  strategic  environmental  assessment  fulfilling  the  legal  requirements  for  the 
transport plan;  

measures  to  strengthen  capacity  of  intermediary  bodies  and  beneficiaries  to 
deliver the project pipeline. 

– 

A chapter on railway development within the comprehensive transport plan is in place 
that contains: 

2.  a realistic and mature project pipeline (including a timetable, budgetary framework); 

3.  a  strategic  environmental  assessment  fulfilling  the  legal  requirements  for  the  transport 

plan;  

4.  measures to strengthen capacity of intermediary bodies and beneficiaries to deliver the 

and 

Promoting 

7. 
sustainable 
transport 
removing 
bottlenecks  in  key 
network 
infrastructures 

(referred 
to 
Article 9(7) ) 

in 

an 

contains 

existence  of 

a 
7.1.  Road:  The 
comprehensive  national  transport  plan 
which 
appropriate 
prioritisation  of  investments  in  the  core 
Trans  European  Network  of  Transport 
Infrastructure  (TEN-T)  network,  in  the 
comprehensive  network 
(investments 
other  than  the  core  TEN-T)  and  in 
secondary connectivity (including public 
transport at regional and local level). 

explicit 

on 
contains 

7.2.  Railway:  The  existence  within  the 
comprehensive national transport plan of 
railway 
an 
chapter 
an 
development  which 
appropriate  prioritisation  of  investments 
in  the  core  Trans  European  Network  of 
Transport 
(TEN-T) 
Infrastructure 
network,  in  the  comprehensive  network 
(investments other than the core TEN-T) 
and  in  secondary  connectivity  of  the 

EN 

142 

EN 

 
  
 
 
to 

railway 
their 
system  according 
contributions  to  mobility,  sustainability, 
national  and  European  wide  network 
effects.  The  investments  cover  mobile 
assets  and  interoperability  and  capacity 
building.  

project pipeline. 

8. 
employment 
supporting 
mobility 

Promoting 
and 
labour 

(Employment 
target) 

(referred 
to 
Article 9(8) ) 

in 

8.1.  Access  to  employment  for  job-
seekers  and  inactive  people,  including 
local employment initiatives and support 
for  g  labour  mobility  Active  labour 
market  policies  are  designed  and 
delivered 
the 
Employment  guidelines  and  the  Broad 
Guidelines  for  the  economic  policies  of 
the  Member  States  and  of  the  Union54 
regarding the enabling conditions for job 
creation.; 

coherence  with 

in 

– 

– 

8.2. 
Self-employment, 
entrepreneurship  and  business 
the  existence  of  a 
creation: 
for 
comprehensive 
strategy 
support 
inclusive 
in 
start-up 
accordance  with 
the  Small 
Business Act55 and in coherence with 
the  Employment  guidelines  and 
the 
the  economic 
Broad  Guidelines  for 

– 

Employment services have the capacity to and do deliver:  

– 

– 

– 

personalised  services  and  active  and  preventive  labour  market  measures  at  an 
early stage, which are open for all jobseekers; 

anticipating and counselling on long-term employment opportunities created by 
structural shifts in the labour market such as the shift to a low carbon economy; 

transparent and systematic information on new job vacancies. 

Employment services have set up networks with employers and education institutes. 

A comprehensive strategy in place which will includes: 

– 

– 

measures to reduce the time to set up businesses to three working days and the 
cost to EUR 100; 

measures  to  reduce  the  time  needed  to  get  licenses  and  permits  to  take  up  and 
perform the specific activity of an enterprise business to three months; 

– 

actions  linking  suitable  business  development  services  and  financial  services 

54 
55

EN 

Council Recommendation (2010/410/EU) of 13 July 2010, OJ L 191, 23.07.2010, p. 28. 
Communication  from  the  Commission  to  the  European  Parliament, the  Council,  the  European  Economic  and  Social  Committee  and  the  Committee  of  the  Regions:  Think  Small  First  -  A  Small  Business  Act  for 
Europe (COM(2008) 394 of 23.6.2008); Conclusions of the Competitiveness Council: Think Small First – A Small Business Act for Europe (doc. 16788/08, 1.12.2008); Communication from the Commission to the 
European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions: Review of the "Small Business Act" for Europe (COM(2008) 78 final, 23.2.2011); Conclusions of the 
Competitiveness Council: Conclusions on the Review of the "Small Business Act" for Europe (doc. 10975/11 of 30.5.2011). 

143 

EN 

 
  
 
 
                                                 
 
policies of the Member States and of the 
Union56, 
enabling 
conditions for job creation. 

regarding 

the 

(access to capital), including the outreach to disadvantaged groups and areas. 

8.3.  Modernisation  and  strengthening  of 
labour  market  institutions  ,  including 
actions  to  enhance  transnational  labour 
mobility57:  
-  Labour  market 
modernised 
and 
accordance  with 
Guidelines; 

are 
institutions 
strengthened 
in 
the  Employment 

-  Reforms  of  labour  market  institutions 
will  be  preceded  by  a  clear  strategy  and 
ex  ante  assessment  including  the  gender 
dimension 

8.4.  Active  and  healthy  ageing:  Active 
and 
ageing  policies 
the 
in 
delivered 
Employment Guidelines59  

are  designed 
accordance  with 

– 

Actions  to  reform  employment  services,  aiming  at  providing  them  the  capacity  to 
deliver58: 

– 

– 

– 

personalised  services  and  active  and  preventive  labour  market  measures  at  an 
early stage, which are open for all jobseekers;  

counselling on long-term employment opportunities created by structural shifts in 
the labour market such as shift the low carbon economy; 

transparent and systematic information on new job opening accessible at Union 
level. 

Reform of employment services will include the creation of networks with employers 
and education institutes. 

Actions to deliver on active and healthy ageing challenges60: 

Relevant stakeholders are involved in the design and implementation of active ageing 
policies;  

A  Member  State  has  measures  in  place  to  promote  active  ageing  to  reduce  early 
retirement. 

– 

– 

– 

– 

56 
57

58

59

60

EN 

Council Recommendation (2010/410/EU) of 13 July 2010, OJ L 191, 23.07.2010, p. 28. 
If a country specific Council Recommendation is in place, directly linked to this conditionality provision, then the assessment of its fulfilment will take account of the assessment of progress made on the fulfilment of 
the country specific Council Recommendation.  
Deadlines for delivery on all elements here contained may be during the programme implementation period. 
If a Country Specific Council Recommendation is in place, directly linked to this conditionality provision, then the assessment of its fulfilment will take account of the assessment of progress made on the fulfilment 
of the country specific Council Recommendation.  
Deadlines for the achievement of delivery on all the elements contained in that section may be set during the programme implementation period. 

144 

EN 

 
  
                                                                                                                                                                                                                                                     
 
 
 
 
Investing 

in 
education 
lifelong 

9. 
skills, 
and 
learning 
(Education target) 

(referred 
to 
Article 9(10) 

in 

8.5.  Adaptation  of  workers,  enterprises 
to  change:  The 
and  entrepreneurs 
existence  of  policies  aimed  at  favouring 
anticipation  and  good  management  of 
change  and  restructuring  at  all  relevant 
local  and 
levels  (national,  regional, 
sectoral) 61. 

9.1. Early school leaving: The existence 
of  a  comprehensive  strategy  to  reduce 
early school leaving (ESL) in accordance 
with  Council  Recommendation  of  28 
June  2011  on  policies  to  reduce  early 
school leaving62.  

– 

– 

Effective  instruments  are  in  place  to  support  social  partners  and  public  authorities  to 
develop proactive approaches towards change and restructuring. 

A  system  for  collecting  and  analysing  data  and  information  on  ESL  at  national, 
regional and local level is in place that: 

– 

– 

provides a sufficient evidence-base to develop targeted policies; 

is used systematically to monitor developments at the respective level. 

– 

A strategy on ESL is in place that: 

– 

– 

– 

– 

is based on evidence; 

is comprehensive (e.g. covering all educational sectors including early childhood 
development)  and  adequately  addresses  prevention, 
intervention  and 
compensation measures; 

sets  out  objectives  that  are  consistent  with  the  Council  Recommendation  on 
policies to reduce early school leaving; 

cuts  across-sectors,  and  involves  and  coordinates  all  policy  sectors  and 
stakeholders that are relevant to address ESL. 

61

62

EN 

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  Economic  and  Social  Committee  and  the  Committtee  of  the  Regions  –  A  shared  commitment  for  employment  – 
COM(2009)257 Final. 
OJ C 191, 1.7.2011, p. 1.  

145 

EN 

 
  
 
                                                 
 
 
strategies 

9.2.  Higher  education:  The  existence  of 
for 
regional 
national  or 
increasing  tertiary  education  attainment, 
quality and efficiency in accordance with 
the  Communication  of  the  Commission 
of  10  May  2006  on  delivering  on  the 
modernisation  agenda  for  universities: 
education, research and innovation63. 

– 

A national or regional strategy for tertiary education is in place that includes: 

– 

measures to increase participation and attainment that: 

– 

– 

– 

– 

improve guidance provided to prospective students; 

increase  higher  education  participation  among  low  income  groups  and 
other under-represented groups. 

increase participation by adult learners; 

(where necessary) reduce drop-out rates/improve completion rates; 

– 

measures to increase quality that: 

– 

– 

encourage innovative content and programme design; 

promotes high standards of quality in teaching; 

– 

measures to increase employability and entrepreneurship that: 

– 

– 

– 

encourage 
"transversal 
development 
entrepreneurship in all higher education programmes;  

the 

of 

skills", 

including 

reduce gender differences in terms of academic and vocational choices and 
encouraging  students  to  choose  careers  in  sectors  were  they  are  under 
represented in order to reduce the gender segregation of the labour market. 

ensure 
developments in business practices. 

informed 

teaching  using  knowledge 

from 

research  and 

63

COM (2006) 208 final [(To be replaced by the forthcoming Communication by the end of September 2011)] 

EN 

146 

EN 

 
  
                                                 
 
9.3.  Lifelong  learning:  The  existence  of 
regional  policy 
a  national 
framework  for  lifelong  learning  in  line 
with Union level policy guidance64. 

and/or 

– 

A national or regional policy framework for lifelong learning is in place that contains: 

– 

– 

– 

measures to support lifelong learning (LLL) implementation and skills upgrading 
and  providing  for  the  involvement  of,  and  partnership  with  stakeholders, 
including social partners and civil society associations;  

measures  for  the  effective  provision  of  skills  development  for  young  people  in 
vocational  training,  adults,  women  returning  in  the  labour  market,  low  skilled 
and older workers, and other disadvantaged groups;  

tools 

transparency 

measures to widen access to LLL including through the effective implementation 
of 
(European  Qualifications  Framework,  National 
Qualifications Framework, European Credit system for Vocational Education and 
Training,  European  Quality  Assurance  in  Vocational  Education  and  Training) 
and the development and integration of lifelong learning services (education and 
training, guidance, validation); 

– 

measures to improve the relevance of education and training and to adapt it to the 
needs of identified target groups.  

64

Council conclusions of 12 May 2009 on a strategic framework for European cooperation in education and training ("ET 2020") (2009/C 119/02) 

EN 

147 

EN 

 
  
                                                 
 
10. 
social 
and 
poverty 
target) 

Promoting 
inclusion 
combating 
(poverty 

to 
(referred 
Article 9(9) ) 

in 

10.1. Active inclusion  
Integration of marginalised communities 
such as the Roma : 
-  The  existence  and  the  implementation 
for  poverty 
of  a  national  strategy 
reduction 
with 
Commission  Recommendation  of  3 
October  2008  on  the  active  inclusion  of 
the  people  excluded  from  the  labour 
market65 
Employment 
guidelines.  

accordance 

and 

the 

in 

-  A  national  Roma  inclusion  strategy  is 
in  place  in  accordance  with  the  EU 
Framework 
Roma 
integration strategies66 

national 

for 

– 

A national strategy for poverty reduction is in place that: 

– 

– 

– 

– 

– 

– 

is  based  on  evidence.  This  requires  a  system  for  collecting  and  analysing  data 
and  information  which  provides  sufficient  evidence  to  develop  policies  for 
poverty reduction. This system is used to monitor developments; 

is in accordance with the national poverty and social exclusion target (as defined 
in 
the  extension  of 
the  National  Reform  Programme),  which 
employment opportunities for disadvantaged groups; 

includes 

contains a mapping of the territorial concentration beyond the regional/on NUTS 
3 level of marginalised and disadvantaged groups including the Roma; 

demonstrates  that  social  partners  and  relevant  stakeholders  are  involved  in  the 
design of active inclusion; 

includes measures for the shift from residential to community based care; 

indicates clearly measures to prevent and combat segregation in all fields. 

– 

A national Roma inclusion strategy is in place that: 

– 

sets  achievable  national  goals  for  Roma  integration  to  bridge  the  gap  with  the 
general  population.  These  targets  should  address,  as  a  minimum,  the  four  EU 
Roma  integration  goals  relating  to  access  to  education,  employment,  healthcare 
and housing; 

65

66

EN 

Commission Recommendation of 3 October 2008 on the active inclusion of the people excluded from the labour market (OJ L 307, 18.11.2008, p. 11). 
Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: An EU framework for National Roma Integration 
Strategies up to 2020. COM(2011) 173. 

148 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
 
– 

– 

– 

– 

– 

– 

is coherent with the National Reform Programme; 

identifies  where  relevant  those  disadvantaged  micro-regions  or  segregated 
neighbourhoods, where communities are most deprived, using already available 
socio-economic  and  territorial  indicators  (i.e.  very  low  educational  level,  long-
term unemployment, etc). 

allocates  a  sufficient 
complemented, where appropriate, by international and EU funding. 

from  national  budgets,  which  will  be 

funding 

includes strong monitoring methods to evaluate the impact of Roma integration 
actions and a review mechanism for the adaptation of the strategy. 

is  designed,  implemented  and  monitored  in  close  cooperation  and  continuous 
dialogue with Roma civil society, regional and local authorities. 

contains a national contact point for the national Roma integration strategy with 
the authority to coordinate the development and implementation of the strategy. 

Relevant stakeholders are provided support for submitting project applications and for 
implementing and managing the selected projects 

A national or regional strategy for health is in place that: 

– 

– 

Contains coordinated measures to improve access to quality health services; 

contains measures to stimulate efficiency in the health sector, including through 
deployment  of  effective  innovative:  technologies,  service  delivery  models  and 
infrastructure; 

– 

contains a monitoring and review system. 

-  The  provision  of  support  for  relevant 
stakeholders in accessing the Funds. 

– 

– 

10.2. Health: The existence of a national 
or  regional  strategy  for  health  ensuring 
access  to  quality  health  services  and 
economic sustainability. 

EN 

149 

EN 

– 

A  Member  State  or  region  has  adopted  a  framework  outlining  available  budgetary 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enhancing 

11. 
institutional 
capacity 
efficient 
administration 

and 
public 

(referred 
to 
Article 9(11) ) 

in 

Member States administrative efficiency: 

-  The  existence  of  a  strategy  for 
Status's 
reinforcing 
including 
administrative 
public administration reform67  

the  Member 
efficiency 

resources for health care. 

– 

A strategy for reinforcing a Member States' administrative efficiency is in place and in 
the process of being implemented68 the strategy includes: 

– 

– 

– 

– 

– 

– 

an  analysis  and  strategic  planning  of  legal,  organisational  and/or  procedural 
reform actions; 

the development of quality management systems;  

integrated  actions  for  simplification  and  rationalisation  of  administrative 
procedures; 

the development and implementation of human resources strategies and policies 
covering the recruitment plans and career paths of staff, competence building and 
resourcing; 

the development of skills at all levels; 

the development of procedures and tools for monitoring and evaluation. 

67

68

EN 

If a Country Specific Council Recommendation is in place, directly linked to this conditionality provision, then the assessment of its fulfilment will take account of the assessment of progress made on the fulfilment 
of the Country Specific Council Recommendation. 
Deadlines for the achievement of all the elements contained in this section may expire during the programme implementation period. 

150 

EN 

 
  
 
 
                                                 
 
 
Area 

Ex-ante conditionality 

Criteria for fulfilment 

General ex-ante conditionalities 

1. 
discrimination 

Anti-

The  existence  of  a  mechanism  which  ensures 
effective  implementation  and  application  of 
Directive  2000/78/EC  of  27  November  2000 
establishing  a  general  framework  for  equal 
treatment  in  employment  and  occupation69  and 
Directive  2000/43/EC  of  29  June  2000 
implementing  the  principle  of  equal  treatment 
between persons irrespective of racial or ethnic 
origin70 

– 

Effective  implementation  and  application  of  the  EU  Directive  2000/78/EC 
and Directive 2000/43/EC on non-discrimination is ensured through: 

– 

– 

institutional  arrangements  for  the  implementation,  application  and 
supervision of the EU directives on non-discrimination; 

a  strategy  for  training  and  dissemination  of  information  for  staff 
involved in the implementation of the funds; 

–  Measures to strengthen administrative capacity for implementation and 

application of the EU directives on non-discrimination.  

2. Gender equality  

The existence of a strategy for the promotion of 
gender  equality  and  a  mechanism  which 
ensures its effective implementation. 

– 

Effective  implementation  and  application  of  an  explicit  strategy  for  the 
promotion of gender equality is ensured through: 

– 

– 

– 

a system for collecting and analyzing data and indicators broken down 
by sex and to develop evidences-based gender policies; 

a  plan  and  ex-ante  criteria  for  the  integration  of  gender  equality 
objectives through gender standards and guidelines; 

Implementation  mechanisms  including  involvement  of  a  gender  body 
and 
the 
interventions. 

to  draft  monitor  and  evaluate 

the  relevant  expertise 

69

70

OJ L 303, 2.12.2000, p.16 
OJ L 180, 19.07.2000, p. 22 

EN 

151 

EN 

 
  
 
 
 
                                                 
 
 
3. Disability 

The  existence  of  a  mechanism  which  ensures 
effective implementation and application of the 
UN  Convention  on  the  rights  of  persons  with 
disabilities. 71 

– 

4.. 
procurement 

Public 

The  existence  of  a  mechanism  which  ensures 
effective  implementation  and  application  of 
Directives  2004/18/EC  and  2004/17/EC  and 
their adequate supervision and surveillance. 

– 

Effective implementation and application of the UN Convention on the rights 
of persons with disabilities is ensured through: 

– 

– 

– 

– 

Implementation  of  measures  in  line  with  Article  9  of  the  UN 
Convention to prevent, identify and eliminate obstacles and barriers to 
accessibility of persons with disabilities;  

institutional  arrangements  for  the  implementation  and  supervision  of 
the UN Convention in line with Article 33 of the Convention; 

a plan for training and dissemination of information for staff involved 
in the implementation of the funds; 

measures to strengthen administrative capacity for implementation and 
application of the UN Convention including appropriate arrangements 
for monitoring compliance with accessibility requirements. 

Effective  implementation  and  application  of  Directives  2004/18/EC  and 
2004/17/EC is ensured through: 

– 

– 

– 

complete transposition of Directives 2004/18/EC and 2004/17/EC; 

institutional  arrangements  for  the  implementation,  application  and 
supervision of EU public procurement law; 

measures  which  ensure  adequate  supervision  and  surveillance  of 
transparent  contract  award  procedures  and  adequate  information 
thereon; 

71

EN 

OJ,  L  23,  27.01.2010,  p. 35 publication  of  the  Council  Decision  of  26 November  2009  concerning  the  conclusion,  by  the  European  Community,  of  the  United  Nations  Convention  on  the  Rights  of Persons  with 
Disabilities. 

152 

EN 

 
  
 
 
                                                 
 
– 

a  strategy  for  training  and  dissemination  of  information  for  staff 
involved in the implementation of the funds; 

–  Measures to strengthen administrative capacity for implementation and 

application of EU public procurement law. 

5. State aid 

The  existence  of  a  mechanism  which  ensures 
effective implementation and application of EU 
State aid law  

– 

Effective  implementation  and  application  of  EU  State  aid  law  is  ensured 
through: 

– 

– 

– 

institutional  arrangements  for  the  implementation,  application  and 
supervision of EU State aid law; 

a  strategy  for  training  and  dissemination  of  information  for  staff 
involved in the implementation of the funds; 

measures to strengthen administrative capacity for implementation and 
application of EU State aid rules.  

6.  Environmental 
legislation  relating 
to  Environmental 
Impact  Assessment 
(EIA)and, Strategic 
Environmental 
Assessment (SEA) 

The  existence  of  a  mechanism  which  ensures 
the effective implementation and application of 
Union environmental legislation related to EIA 
in  accordance  with  Directive 
and  SEA 
(85/337/EEC)  of  27  June  1985  on 
the 
assessment  of  the  effects  of  certain  public  and 
private  projects  on  the  environment72  and  with 
Directive (2001/42/EC) of 27 June 2001 on the 
assessment  of  the  effects  of  certain  plans  and 
programmes on the environment73. 

– 

Effective implementation and application of Union environmental legislation 
is ensured through: 

– 

– 

– 

complete and correct transposition of EIA and SEA directives; 

institutional  arrangements  for  the  implementation,  application  and 
supervision of EIA and SEA Directives; 

a  strategy  for  training  and  dissemination  of  information  for  staff 
involved in the implementation of EIA and SEA Directives; 

72

73

OJ L 175, 5.7.1985, p. 40. 
OJ L 197, 21.7.2001, p. 30. 

EN 

153 

EN 

 
  
 
 
                                                 
 
 
7. 
Statistical 
systems  and  result 
indicators 

The  existence  of  a  statistical  system  necessary 
to  undertake  evaluations 
the 
effectiveness and impact of the programmes. 

to  assess 

– 

A multi-annual plan for timely collection and aggregation of data is in place 
that includes: 

– 

measures to ensure sufficient administrative capacity. 

The  existence  of  an  effective  system  of  result 
to  monitor  progress 
indicators  necessary 
towards 
impact 
to  undertake 
results  and 
evaluation. 

– 

– 

– 

– 

– 

– 

– 

the  identification  of  sources  and  mechanisms  to  ensure  statistical 
validation;  

arrangements for publication and public availability. 

an effective system of results indicators including: 

the  selection  of  result  indicators  for  each  programme  providing 
information on those aspects of the well-being and progress of people 
that motivate policy actions financed by the programme; 

the establishment of targets for these indicators; 

the  respect  for  each  indicator  of  the  following  requisites:  robustness 
interpretation, 
and  statistical  validation,  clarity  of  normative 
responsiveness  to  policy,  timely  collection  and  public  availability  of 
data; 

adequate procedures in place to ensure that all operations financed by 
the programme adopt an effective system of indicators. 

EN 

154 

EN 

 
  
 
 
 
 
 
 
ANNEX V 

Information and communication on support from the Funds 

1. 

LIST OF OPERATIONS  

The list of operations referred to Article 105(2) shall contain, in at least one of the official languages 
of the Member State, the following data fields:  

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Beneficiary name (only legal entities; no natural persons shall be named); 

Operation name;  

Operation summary;  

Operation start date; 

Operation  end  date  (expected  date  for  physical  completion  or  full  implementation  of  the 
operation); 

Total eligible expenditure allocated to the operation; 

EU co-financing rate (as per priority axis); 

Operation postcode; 

Country; 

Name of category of intervention for the operation;  

Date of last update of the list of operations. 

The headings of the data fields and the names of the operations shall be also provided in at least one 
other official language of the European Union. 

2. 

INFORMATION AND PUBLICITY MEASURES FOR THE PUBLIC 

The  Member  State,  the  managing  authority  and  the  beneficiaries  shall  take  the  steps  necessary  to 
provide  information  and  publicity  to  the  public  on  operations  supported  by  an  operational 
programme in accordance with this Regulation. 

2.1. 

Responsibilities of the Member State and the managing authority 

1. 

2. 

The  Member  State  and  the  managing  authority  shall  ensure  that  the  information  and 
publicity  measures  are  implemented  in  accordance  with  the  communication  strategy  and 
that  these  measures  aim  at  the  widest  possible  media  coverage  using  various  forms  and 
methods of communication at the appropriate level.  

The Member State or the managing authority shall be responsible for organising at least the 
following information and publicity measures: 

EN 

155 

   EN 

 
(a) 

a major information activity publicising the launch of the operational programme; 

(b) 

at  least  one  major  information  activity  a  year  which  promotes  the  funding 
opportunities  and  the  strategies  pursued  and  presents  the  achievements  of  the 
operational  programme,  including,  where  relevant,  major  projects,  joint  action  plans 
and other project examples;  

(c)  displaying  the  flag  of  the  European  Union  in  front  of,  or  at  a  place  visible  to  the 

public, at the premises of each managing authority; 

(d)  publishing electronically the list of operations in accordance with section 1; 

(e)  giving examples of operations, by operational programme, on the single website or on 
the  operational  programme's  website  that  is  accessible  through  the  single  website 
portal; the examples should be in a widely spoken official language of the European 
Union other than the official language or languages of the Member State concerned; 

(f) 

updating information about the operational programme's implementation, including its 
main achievements, on the single website or on the operational programme's website 
that is accessible through the single website portal.  

3. 

The managing authority shall involve in information and publicity measures, in accordance 
with national laws and practices, the following bodies: 

(a) 

the partners referred to in Article 5; 

(b) 

information  centres  on  Europe,  as  well  as  Commission  representation  offices  in  the 
Member States; 

(c) 

educational and research institutions. 

These  bodies  shall  widely  disseminate  the  information  described  in  Article  105(1)(a)  and 
(b). 

2.2. 

Responsibilities of the beneficiaries 

1. 

All 
information  and  communication  measures  provided  by 
acknowledge support from the Funds to the operation by displaying: 

the  beneficiary  shall 

(a) 

the  EU  emblem  in  accordance  with  the  technical  characteristics  laid  down  in  the 
implementing  act  adopted  by  the  Commission  under  Article  105(4),  together  with  a 
reference to the European Union; 

(b) 

a reference to the Fund or Funds supporting the operation.  

2. 

During  implementation  of  an  operation,  the  beneficiary  shall  inform  the  public  about  the 
support obtained from the Funds by: 

(a)  providing  on  the  beneficiary's  website,  where  such  a  website  exists,  a  short 
description  of  the  operation,  including  its  aims  and  results,  and  highlighting  the 
financial support from the European Union;  

EN 

156 

   EN 

 
3. 

4. 

5. 

(b)  placing  at  least  one  poster  with  information  about  the  project  (minimum  size  A3), 
including the financial support from the European Union, at a location readily visible 
to the public, such as the entrance area of a building. 

For operations supported by the ESF, and in appropriate cases for operations supported by 
the  ERDF  or  Cohesion  Fund,  the  beneficiary  shall  ensure  that  those  taking  part  in  an 
operation have been informed of this funding.  

Any document, including any attendance or other certificate, concerning such an operation 
shall include a statement to the effect that the operational programme was supported by the 
Fund or Funds. 

During implementation of an ERDF or Cohesion Fund operation, the beneficiary shall put 
up, at a location readily visible to the public, a temporary billboard of a significant size for 
each  operation  consisting  in  the  financing  of  infrastructure  or  construction  operations  for 
which the total public support to the operation exceeds EUR 500 000. 

No later than three months after completion of an operation, the beneficiary shall put up a 
permanent plaque or billboard of significant size at a location readily visible to the public 
for each operation that fulfils the following criteria: 

(a) 

the total public support to the operation exceeds EUR 500 000; 

(b) 

the  operation  consists  in  the  purchase  of  a  physical  object  or  in  the  financing  of 
infrastructure or of construction operations. 

The plaque or billboard shall state the type, name and purpose of the operation and shall be 
prepared  in  accordance  with  the  technical  characteristics  adopted  by  the  Commission  in 
accordance with Article 105(4). 

3. 

INFORMATION MEASURES FOR POTENTIAL BENEFICIARIES AND BENEFICIARIES  

3.1. 

Information measures for potential beneficiaries  

1. 

2. 

The managing authority shall ensure, in accordance with the communication strategy, that 
the operational programme's strategy, objectives and funding opportunities offered by joint 
support  from  the  European  Union  and  the  Member  State,  are  disseminated  widely  to 
potential  beneficiaries  and  all  interested  parties,  with  details  of  the  financial  support  from 
the Funds concerned. 

The managing authority shall ensure that potential beneficiaries are informed on at least the 
following: 

(a) 

(b) 

the  conditions  of  eligibility  of  expenditure  to  be  met  in  order  to  qualify  for  support 
under an operational programme;  

a description of the procedures for examining applications for funding and of the time 
periods involved; 

(c) 

the criteria for selecting the operations to be supported; 

EN 

157 

   EN 

 
(d) 

(e) 

the contacts at national, regional or local level that are able to provide information on 
the operational programmes; 

that applications should propose communication activities, proportional to the size of 
the  operation,  in  order  to  inform  the  public  about  the  operation's  aims  and  the  EU 
support to the operation. 

3.2. 

Information measures for beneficiaries  

1. 

2. 

The managing authority shall inform beneficiaries that acceptance of funding constitutes an 
acceptance of their inclusion in the list of operations published in accordance with Article 
105(2). 

The managing authority shall provide information and publicity kits, including templates in 
electronic format, to help beneficiaries to meet their obligations set out in section 2.2. 

4. 

ELEMENTS OF THE COMMUNICATION STRATEGY 

The communication strategy drawn up by the managing authority shall include at least the following 
elements: 

(a) 

a description of the approach taken, including the main information and publicity measures 
to be taken by the Member State or the managing authority aimed at potential beneficiaries, 
beneficiaries,  multipliers  and  the  wider  public,  having  regard  to  the  aims  described  in 
Article 105; 

(b) 

a description  of materials  that will  be  made available in formats accessible for people with 

disabilities; 

(c) 

(d) 

(e) 

a description of how beneficiaries will be supported in their communication activities; 

the indicative budget for implementation of the strategy; 

a  description  of  the  administrative  bodies,  including  the  staff  resources,  responsible  for 

implementing the information and publicity measures; 

(f) 

the  arrangements  for  the  information  and  publicity  measures  referred  to  in  section  2, 

including the website or website portal at which such data may be found; 

(g) 

an indication of how the information and publicity measures shall be assessed in terms of 
visibility and awareness of policy, operational programmes and operations, and of the role 
played by the Funds and the European Union; 

(h) 

where  appropriate,  a  description  of  the  use  of  the  main  results  of  the  previous  operational 

programme; 

(i) 

an annual update setting out the information and communication activities to be carried out.

EN 

158 

   EN 

 
LEGISLATIVE FINANCIAL STATEMENT 

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 

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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  laying  down 
certain  common  provisions  on  the  European  Regional  Development  Fund,  the  European 
Social Fund, the Cohesion Fund, the European Agricultural and Rural Development Fund 
and  the  European  Maritime  and  Fisheries  Fund  covered  by  the  Common  Strategic 
Framework  and  laying  down  general  provisions  on  the  European  Regional  Development 
Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 
1083/2006 

1.2. 

Policy area(s) concerned in the ABM/ABB structure74  

13.Regional  policy,  ABB  activities  13  03  (European  Regional  Development  Fund  and 
other regional operations); 13 04 Cohesion Fund 

4. Employment and social affairs, ABB activity 04 02 (European Social Fund) 

1.3. 

Nature of the proposal/initiative  

■ The proposal/initiative relates to a new action  

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action75  

(cid:133) The proposal/initiative relates to the extension of an existing action  

(cid:133) 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  

The  objective  of  Cohesion  Policy  is  to  reduce  disparities  between  the  levels  of 
development  of  the  various  regions,  in  particular  for  rural  areas,  areas  affected  by 
industrial  transition,  and  regions  which  suffer  from  severe  and  permanent  natural  or 
demographic  handicaps  and  to  contribute  to  achieving  the  targets  set  out  in  the  Europe 
2020  strategy  of  smart,  sustainable  and  inclusive  growth,  and  in  particular  towards  the 
achievement of quantitative headline targets identified in that strategy. 

1.4.2. 

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

The  ERDF  aims  to  strengthen  economic,  social  and  territorial  cohesion  in  the  European 
Union  by  co-financing  investments  in  Member  States,  while  the  ESF  promotes 
employment, education and social inclusion.  

74

75

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

EN 

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The  Cohesion Fund  helps Member States to make  investments in transport networks and 
the environment.  

The specific objectives of intervention by the Funds are as follows: 

- 

strengthening research, technological development and innovation 

enhancing  accessibility  to  and  use  and  quality  of  information  and  communication 

- 
technologies 

enhancing  the  competitiveness  of  small  and  medium-sized  enterprises  and  the 

- 
agricultural sector (for EAFRD) and fisheries and aquaculture sector (for the EMFF)  

- 

- 

- 

supporting the shift towards a low-carbon economy in all sectors; 

promoting climate change adaptation and risk prevention and management; 

protecting the environment and promoting resource efficiency; 

promoting  sustainable 

- 
infrastructures  

transport  and  removing  bottlenecks 

in  key  network 

- 

- 

- 

- 

promoting employment and supporting labour mobility  

promoting social inclusion and combating poverty  

investing in education, skills and lifelong learning  

enhancing institutional capacity and an efficient public administration 

ABM/ABB activities concerned: 

13 03: European Regional Development Fund and other regional interventions 

13 04: Cohesion Fund 

04 02: European Social Fund 

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1.4.3.  Expected result(s) and impact 

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

Cohesion  Policy  makes  a  significant  contribution  to  spreading  growth  and  prosperity 
across the Union delivering European policy objectives, while  reducing economic, social 
and territorial disparities. 

1.4.4. 

Indicators of results and impact  

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

The Commission proposes a common set of output indicators which can be aggregated at 
the EU level. The common output indicators are contained in Annexes to the Fund-specific 
regulations. Result indicators will be compulsory for all programmes and all priorities. The 
impacts  of  the  programmes  will  be  evaluated  against  the  objectives  and  targets  of  the 
Europe 2020 strategy, and GDP and unemployment indicators where appropriate. 

1.5. 

Grounds for the proposal/initiative  

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

The  Union  shall  promote  economic,  social  and  territorial  cohesion  and  solidarity  among 
Member States. The proposal sets the frame for cohesion policy in the next funding period 
2014-2020.  

1.5.2.  Added value of EU involvement 

EU action is justified both on the grounds of the objectives laid out in Article 174 of the 
Treaty and on the subsidiarity principle. The right to act is constituted by Article 3 of the 
Treaty on European Union, which states that "[the Union] shall promote economic, social 
and territorial cohesion and solidarity among Member States", as well as by Article 175 of 
the  TFEU  which  explicitly  requests  the  Union  to  implement  this  policy  by  means  of 
Structural Funds, and Article 177 which defines the role of the Cohesion Fund. The aims 
of  European  Social  Fund  (ESF),  European  Regional  Development  Fund  (ERDF)  and 
Cohesion Fund (CF) are defined in Articles 162, 176 and 177. More details on the added 
value of EU involvement can be found in the related Impact Assessment. 

As the EU Budget Review has highlighted, the "EU budget should be used to finance EU 
public goods, actions that Member States and regions cannot finance themselves, or where 
it can secure better results".76 The legal proposal will respect the principle of subsidiarity 
as  the  tasks  of  the  Funds  are  set  out  in  the  Treaty  and  the  policy  is  implemented  in 
accordance  with  the  principle  of  shared  management  and  respecting  the  institutional 
competencies of Member States and regions.  

1.5.3.  Lessons learned from similar experiences in the past 

A summary can be found in the Impact Assessment accompanying the proposal.  

76

COM(2010) 700, 19.10.2010. 

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1.5.4.  Coherence and possible synergy with other relevant instruments 

A Common Strategic Framework will be established. This will translate the objectives and 
priorities of Europe 2020 into investment priorities for the ERDF, CF, ESF, EAFRD and 
the EMFF which will ensure an integrated use of the funds to deliver common objectives. 
The  common  strategic  framework  will  also  set  out  coordination  mechanisms  with  other 
relevant Union policies and instruments.  

1.6. 

Duration and financial impact  

(cid:133) Proposal/initiative of limited duration  

–  (cid:133)  Proposal/initiative in effect from 01/01/2014 to 31/12/2020  

–  (cid:133)  Financial impact from 2014 to 2023  

(cid:133) 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) envisaged77 

(cid:133) Centralised direct management by the Commission  

(cid:133) Centralised indirect management with the delegation of implementation tasks to: 

•  (cid:133)  executive agencies 

•  (cid:133)  bodies set up by the Communities78 

•  (cid:133)  national public-sector bodies/bodies with public-service mission 

–  (cid:133)  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 with the Member States  

(cid:133) Decentralised management with third countries  

(cid:133) Joint management with international organisations (to be specified) 

If more than one management mode is indicated, please provide details in the "Comments" section. 

Comments  

. 

77

78

EN 

Details  of  management  modes  and 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 
As referred to in Article 185 of the Financial Regulation. 

references 

to 

the  Financial  Regulation  may  be 

found  on 

the  BudgWeb  site: 

163 

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.

EN 

164 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

The  monitoring  system  will  be  based  on  a  system  of  shared  management.  Monitoring 
Committees set up for each operational programme and annual implementation reports for 
each operational programme will be at the heart of the approach. Monitoring Committees 
will  meet  at  least  once  per  year.  Annual  review  meetings  between  the  Commission  and 
Member States complement the system.  

In addition to the implementation reports for each operational programme progress reports 
in 2017 and 2019 will focus on strategic issues at Member State level. Based on this, the 
Commission will prepare strategic reports in 2017 and 2019. 

The  monitoring  and  reporting  system  will  be  based  on  output  and  result  indicators.  The 
proposals  set  out  a  set  of  common  indicators  that  will  be  used  for  the  aggregation  of 
information at an EU level. At key points of the implementation period (2017 and 2019), 
additional  analytical  requirements  on  the  progress  of  programmes  are  part  of  the  annual 
implementation  reports.  The  monitoring  and  reporting  system  fully  uses  the  potential  of 
electronic data transfers. 

Evaluation arrangements shall be put in place to evaluate the effectiveness, efficiency and 
the impact of the policy, especially with regard to the EU2020 headline targets and other 
relevant impact indicators.  

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

Since 2007 the European Court of Auditors ('the Court') has reported in its annual report an 
estimated  error  rate  for  Cohesion  Policy  as  a  whole  for  each  budget  year  (2006-2009) 
based on an independent, annual, random sample of transactions.  

The Court's estimated level of error for Cohesion Policy has been high compared to other 
policy  groups  of  the  EU  budget  in  these  years,  and  has  varied  around  5%-10%  of 
expenditure  for  the  current  programming  period.  However  the  error  rate  provided  by  the 
Court applies to interim payments submitted by Member States which are reimbursed by 
the Commission before all controls foreseen for 2007-2013 programmes have been carried 
out at national and Community level.  

Under  current  rules,  interim  payments  are  certified  by  the  Certifying  Authority  to  the 
Commission  after  management  desk  checks  on  all  expenditure  claimed  by  beneficiaries 
have  been  carried  out,  but  frequently  before  on  the  spot  in-depth  management  checks  or 
subsequent  audit  activities.  Therefore  the  multiannual  financing  arrangements  mean  that 
controls are carried out before but also after the audit work is done by the European Court 
of  Auditors,  and  the  residual  error  after  all  controls  have  been  completed  can  be 
significantly  lower  that  the  error  rate  detected  by  the  Court.  On  the  basis  of  past 
experience,  the  residual  error  at  the  end  of  the  programming  once  all  controls  have  been 
completed is estimated to be in the range of 2-5%. 

EN 

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A number of measures have been foreseen in the proposals to reduce the error rate linked 
to  the  interim  payments  made  by  Commission  (the  error  rate  reported  by  the  European 
Court of Auditors): 

1) Interim payments by the Commission will be capped at 90% of the amount due to 
Member States, as at this point only part of the national controls have been carried 
out. The remaining balance will be paid following the annual clearance of accounts once 
audit evidence and reasonable assurance has been provided by the managing authority and 
the audit authority. Any irregularities detected by the Commission or the European Court 
of Auditors after the transmission of annual certified accounts by the managing/certifying 
authority  will  lead  to  a  net  correction.  This  will  provide  greater  incentives  to  Member 
States to ensure the regularity of expenditure certified to the Commission compared to the 
present approach which allows for more extensive recycling of recovered funds throughout 
the lifetime of programmes. 

2)  Introduction  of  an  annual  clearance  of  accounts  and  of  an  annual  closure  of 
completed operations or expenditure, which will create additional incentives for national 
and  regional  authorities  to  undertake  quality  controls  in  a  timely  manner  in  view  of  the 
annual  certification  of  accounts  to  the  Commission.  This  constitutes  a  reinforcement  of 
present  financial  management  arrangements  and  offers  better  assurance  that  irregular 
expenditure  is  excluded  from  the  accounts  on  annual  basis  rather  than  at  the  end  of  the 
programming period.  

It  is  expected  that  the  measures  outlined  above  (the  new  reimbursement  system,  annual 
clearance  and  closure  and  definitive  net  corrections  by  the  Commission)  will  reduce  the 
error rate below 5%, and that the final residual error rate at closure of programmes will be 
closer to the 2% materiality threshold applied by the European Court of Auditors.  

This  estimation  is  nevertheless  subject  to  the  capacity  of  the  Commission  and  Member 
States to address the principal risks outlined below. 

An  analysis  of  errors  reported  by  the  Court  and  the  Commission  in  the  last  five  years 
shows  that  the  principal  errors  found  are  concentrated  in  a  limited  number  of 
programmes  in  some  Member  States.  The  error  rates  based  on  statistical  samples 
reported  by  audit  authorities  also  demonstrate  substantial  variation  between  different 
programmes  and  thus  support  this  analysis.  The  proposal  to  focus  audit  activities  and 
resources  to  high  risk  programmes,  and  to  allow  proportionate  control  measures  for 
programmes  with  effective  control  systems,  would  address  the  principal  risks  in  a  more 
effective  manner  and  lead  to  a  more  efficient  use  of  existing  audit  resources  both  at 
national and Commission level. The possibility to benefit from proportionate arrangements 
in relation to the situation of each programme can in itself introduce incentives for more 
effective control measures.  

The  analysis  of  errors  that  have  remained  undetected  by  the  national  management  and 
control  systems  and  thus  have  been  identified  by  the  Court  in  its  2006-2009  audits  also 
shows a concentration of risks in the following categories: 

For  ERDF  and  the  Cohesion  Fund,  public  procurement  errors  have  contributed 
approximately  to  41%  of  the  cumulative  quantifiable  errors  found.  Errors  related  to 
eligibility accounted for 39% and included various types of errors such as errors in project 
selection,  funding  of  ineligible  categories  of  costs,  costs  falling  outside  the  eligibility 
period  or  eligible  area,  miscalculation  of  co-financing  rates,  financing  of  ineligible  VAT 
etc.  Weaknesses  in  the  audit  trail  accounted  for  11%  of  quantifiable  errors  (with  the 

EN 

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proportion decreasing over time due to reinforced management controls), and errors linked 
to the complex issue of revenue generating projects (revenues not deducted or calculated 
incorrectly and thus the co-financing rate was too high) accounted for 6% of quantifiable 
errors reported over the period.  

For the ESF, eligibility issues have contributed approximately to 58% of the cumulative 
quantifiable  errors  found  and  encompassed  in  particular  non-eligible  participants,  non-
eligible direct and indirect costs, payments after or before the eligibility period, ineligible 
expenditure  declared  on  a  flat-rate  basis,  ineligible  costs  of  scholarship  and  public 
allowances,  revenues  not  deducted  when  calculating  eligible  expenditure  or  calculated 
incorrectly,  services  paid  but  not  delivered  and  ineligible  VAT.  Accuracy  issues,  that 
represented 7% of quantifiable errors reported, concerned incorrect allocation of direct and 
indirect  costs,  unduly  justified  overhead  allocation  method,  mistakes  in  calculation  of 
expenses,  non-respect  of  the  real  cost  principle,  over-declaration  of  costs,  incorrect 
calculation of co-financing rates and finally multiple declaration of staff costs. Audit trail 
issues  contributed  to  35%  of  errors  and  referred  to  the  absence  of  essential  supporting 
documents, in particular at the level of beneficiaries. 

Although the Commission is undertaking a number of actions with the Member States to 
reduce these errors, it is anticipated that, pending adoption of the current proposal and their 
proper implementation in the Member States, these errors could remain potential risk areas 
in the next programming period 2014-2020. 

Errors related to public procurement in particular are a major source of errors that may be 
estimated  to  an  error  rate  of  approximately  2%-4%  each  year  on  average  for  the  current 
programming  period.  Proposals  put  forward  under  Cohesion  Policy  will  ensure  more 
effective  controls,  however  to  achieve  a  substantial  reduction  in  the  error  rate  under 
Cohesion Policy, it is important that these actions are complemented by a clarification and 
simplification  of  public  procurement  rules.  In  the  absence  of  streamlined  public 
procurement  procedures,  and  if  public  administrations  and  beneficiaries  in  the  Member 
States  are  unable  to  improve  the  implementation  of  these  rules,  Cohesion  Policy  would 
continue  to  be  systematically  affected  by  this  part  of  the  current  error  rate.  The  current 
revision of the Directive on public procurement should therefore provide an opportunity to 
contribute to a reduction of errors in Cohesion Policy along the lines indicated above. 

2.2.2.  Control method(s) envisaged  

The proposed architecture of the management and control systems represents an evolution 
of the set-up in place in 2007-2013 and preserves most of the functions carried out in the 
current  period 
including  administrative  and  on-the  spot  verifications,  audits  of 
management and control systems and audits of operations. It also maintains the role of the 
Commission,  along  with  the  possibility  for  interruptions,  suspensions  and  financial 
corrections by the Commission. 

In  order  to  reinforce  accountability,  programme  authorities  would  be  accredited  by  a 
national accrediting body in charge of their ongoing supervision. The proposal offers the 
flexibility to keep the current architecture of three key authorities by programme in cases 
where  the  current  system  has  been  proven  to  be  effective.  However  it  also  offers  the 
possibility to merge the managing and certifying authority and thus decrease the number of 
involved  authorities  in  the  Member  States.  A  smaller  number  of  bodies  in  place  would 
reduce  the  administrative  burden  and  enhance  the  possibility  for  building  stronger 
administrative capacity, but also permit a clearer distribution of responsibilities. 

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The costs of tasks related to control (at national and regional level, excluding the costs of 
the Commission) are estimated around 2% of the total funding administered in the period 
2007-201379. These costs are related to the following areas of control: 1% is derived from 
national coordination and programme preparation, 82% relate to programme management, 
4% to certification and 13% to audit.  

The following proposals will increase the costs of control: 

-the creation and functioning of an accrediting body (the costs of which may be offset by 
the  merger  of  the  managing  and  certifying  authorities,  if  this  option  is  selected  by  the 
Member State); 

-  the  submission  of  certified  annual  accounts  and  an  annual  management  declaration, 
which implies having carried out all necessary controls within the accounting year (which 
may require additional administrative effort); 

-  the  need  for  additional  audit  activity  by  the  audit  authorities  to  audit  the  management 
declaration or the need to finish its audits and express an audit opinion in a shorter period 
of time compared to the current obligations.  

There are however also proposals which will reduce the costs of control:  

-  the  option  to  merge  the  managing  and  certifying  authorities,  which  could  allow  the 
Member  State  to  save  a  substantial  part  of  the  4%  of  the  current  costs  relating  to 
certification  due  to  better  administrative  efficiency,  reduced  need  for  coordination  and 
reduction of the scope of audits; 

-the use of simplified costs and Joint Action Plans, which reduces administrative costs and 
burdens at all levels, for both administrations and beneficiaries; 

-proportionate control arrangements for management verifications and for audits; 

-annual closure, which will reduce the cost of retention of documents for control purposes 
for public administrations and beneficiaries. 

Therefore overall it is expected that proposals will lead to a redistribution of control 
costs (remaining around 2% of the total funding managed), rather than an increase 
or a reduction. It is however anticipated that this redistribution of costs (across functions 
and  due  to  the  proportionate  control  arrangements,  also  across  Member  States  and 
programmes) will enable more effective mitigation of risks and thus will lead to an error 
rate below 5%.  

In addition to changes in the financial management and control arrangement which 
contribute to the effective detection and early exclusion of errors from the accounts, 
the proposal foresees simplification in several areas that contributes to the prevention 
of errors. As indicated above, measures proposed in these areas would address 55% of the 
error rates reported for the current period.  

These measures include:  

79

Study "Regional governance in the context of globalisation: reviewing governance mechanisms & administrative costs. Administrative 
workload and costs for Member State public authorities of the implementation of ERDF and Cohesion Fund", 2010 

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-  A  more  extensive  use  of  simplified  costs  which  reduces  errors  related  to  financial 
management, eligibility rules and audit trail, and reorients both implementation and control 
towards the performance of operations. 

-  A  greater  thematic  concentration  of  funding,  which  can  entail  a  reduction  of  errors 
stemming  from  the  wide  variety  of  interventions  and  thus  a  variety  of  eligibility  rules 
applied. 

- Clarified rules for the selection of projects. 

- A simpler, flat rate based, approach to revenue-generating operations which will reduce 
the risk of errors in determining and deducting the revenue generated by operations. 

- Harmonisation, clarification and simplification of eligibility rules with other EU financial 
support instruments which will reduce mistakes made by beneficiaries who use assistance 
from different sources. 

- A mandatory setup of electronic data management and electronic data exchange between 
the administration and beneficiaries which has the potential to curtail the error rate arising 
from  inadequate  document  retention  and  simplifying  the  administrative  burden  on 
beneficiaries. 

-  Annual  closure  of  operations  or  expenditure,  which  decreases  audit  trail  errors  by 
shortening  the  time  period  for  document  retention  and  avoids  the  substantial  build-up  of 
administrative  workload  linked  to  the  one-off  closure  at  the  end  of  the  programming 
period. 

Most of the simplifications listed above also contribute to the reduction of administrative 
burden  for  beneficiaries  and  thus  represent  a  simultaneous  reduction  of  risks  of  error 
and of administrative burden.  

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

The  Structural  Funds  services  together  with  OLAF  have  put  in  place  a  Joint  Fraud 
Prevention Strategy which foresees a series of actions to be carried out by the Commission 
and the Member States to prevent fraud in structural actions under shared management. 

Both DGs are currently developing a fraud risk scoring model which will be used by the 
concerned managing authorities on 116 ESF and 60 ERDF programmes. 

The recent Commission Communication on an anti-fraud strategy (COM(2011)376 final of 
24.6.2011)  welcomes  the  existing  strategy  as  a  best  practice  initiative  and  envisages 
complementary  actions  to  it,  the  most  important  being  that  the  Commission  proposal  for 
2014-2020  regulations  request  Member  States  to  put  in  place  fraud  prevention  measures 
which are effective and proportionate to the identified fraud risks. 

The  current  Commission  proposal  includes  an  explicit  requirement  to  put  in  place  such 
measures under Article 86(4)(c). This should reinforce fraud awareness in Member States 
among all bodies involved in the management and control of funds and thus reduce the risk 
of fraud. 

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

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

•  Existing expenditure budget lines  

In order of multiannual financial framework headings and budget lines. 

Heading of 
multiannual 
financial 
framework 

Number  

Budget line 

Type of  
expenditure 

Contribution  

Diff. (80) 

from 
EFTA81 
countries 

from 
candidate 
countries82 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

1 Smart 
and 
Inclusive 
Growth 
New 
Headings 
for 2014-
2020 

04021700 ESF Convergence 

04021900 ESF Compétitivité Régionale 

13031600 FEDER Convergence 

13031800 FEDER Compétitivité Régionale 

13031900  FEDER  Coopération  territoriale 
européenne 

13040200 Fonds de cohésion 

•  New budget lines requested : No 

Diff 

NO 

NO 

NO 

NO 

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Number  
[Heading……………………………………..] 

Diff./non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

Heading of 
multiannual 
financial 
framework 

[XX.YY.YY.YY] 

[…] 

[…] 

[…] 

YES/NO  YES/NO  YES/NO 

YES/NO 

80

81

82

Diff. = Differentiated appropriations / Non-Diff. = Non-differentiated appropriations 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

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3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial 
framework:  

Number 
1  

Smart and Inclusive growth 

EUR million (to 3 decimal places) 

DG: REGIO and EMPL 

Year 
N83 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Year 
N+4 

Year 
N+5 

Year 
N+6 

TOTAL 

(cid:121) Operational appropriations (2011 prices)  

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Number  of  budget  line  new  ERDF  and  ESF 
Budget Lines 

Number of budget line new CF Budget Line 

Commitments 

(1) 

Payments 

(2) 

Commitments 

(1a) 

Payments 

(2a) 

36.94
2,785 
To be 
calcula
ted by 
DG 
BUDG
84 

9.572,
122 
To be 
calcula
ted by 
DG 
BUDG 

37.375
,939 

37.758
,354 

To be 
calculat
ed by 
DG 
BUDG 

To be 
calculat
ed by 
DG 
BUDG 

38.153
,836 
To be 
calculat
ed by 
DG 
BUDG 

38.562
,407 
To be 
calculat
ed by 
DG 
BUDG 

38.948
,791 
To be 
calculat
ed by 
DG 
BUDG 

39.333
,716 
To be 
calculat
ed by 
DG 
BUDG 

9.614,
264 
To be 
calculat
ed by 
DG 
BUDG 

9.631,
037 
To be 
calculat
ed by 
DG 
BUDG 

9.702,
463 
To be 
calculat
ed by 
DG 
BUDG 

9.883,
112 
To be 
calculat
ed by 
DG 
BUDG 

10.053
,301 
To be 
calculat
ed by 
DG 
BUDG 

10.217
,011 
To be 
calculat
ed by 
DG 
BUDG 

267.075,828 

68.673,310 

83

84

Year N is the year in which implementation of the proposal/initiative starts. 
This will depend on the percentage of the prefinancing, on the speed of implementation of regional policy in MS and on the available payment appropriations 

EN 

171 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
 
of 

Appropriations 
from the envelope for specific programmes85  
13.01.04.01 – External Staff ERDF 

administrative 

an 

13.01.04.03 – External Staff CF 

04.01.04.01 - External Staff ESF 

nature 

financed 

0 

0 

0 

0 

0 

0 

0 

0 

(3) 

3,060  

3,060  

3,060  

3,060  

3,060 

3,060  

3060 

21,420 

1,340  

1,340  

1,340  

1,340  

1,340 

1,340 

1,340 

9,380 

5,000  5,000 

5,000 

5,000 

5,000 

5,000 

5,000 

35,000 

Total external staff on former BA lines 

9,400  9,400 

9,400 

9,400 

9,400 

9,400 

9,400 

OTHER 
FROM REGIO 

ADMIN 

OTHER 
FROM EMPL 

ADMIN 

APPROPRIATIONS 

APPROPRIATIONS 

TOTAL appropriations 
for DG REGIO and EMPL 

Commitments 

Payments 

=1+1a 
+3 

=2+2a 

+3 

13,365  13,365 

13,365 

13,365 

13,365 

13,365 

13,365 

16,000  16,000 

16,000 

16,000 

16,000 

16,000 

16,000 

112,000 

46.55
3,672 

47.028
,968 

47.428

,155  

47.895
,064 

48.484
,284 

49.040
,857 

49.589
,492 

336.020,493 

65,800 

93,555

(cid:121) TOTAL operational appropriations  

Commitments 

Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

46.514,
907 

46,990,
203 

47.389,
390 

47.856,
299 

48.445,
519 

49.002,
092 

49.550,
727 

335.749,138 

38,765 

38,765 

38,765 

38,765 

38,765 

38,765 

38,765 

271,355 

TOTAL appropriations  
under HEADING 1 

Commitments 

=4+ 6 

46.553,
672 

47.028,
968 

47.428,
155 

47.895,
064 

48.484,
284 

49.040,
857 

49.589,
492 

336.020,493

85

EN 

Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect research, direct research. 

172 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
of the multiannual financial framework 

Payments 

=5+ 6 

If more than one heading is affected by the proposal / initiative: N/A 

(cid:121) TOTAL operational appropriations  

Commitments 

Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

TOTAL appropriations  
under HEADINGS 1 to 4 
of the multiannual financial framework 
(Reference amount) 

Commitments 

=4+ 6 

Payments 

=5+ 6 

EN 

173 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading of multiannual financial 
framework:  

5 

" Administrative expenditure " 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Year 
N+4 

Year 
N+5 

Year 
N+6 

TOTAL 

EUR million (to 3 decimal places) 

DG: REGIO 

(cid:121) Human resources  

80,187  80,187 

80,187 

80,187 

80,187 

80,187 

80,187 

(cid:121) Other administrative expenditure  

3,800  3,800 

3,800 

3,800 

3,800 

3,800 

3,800 

TOTAL DG REGIO  

Appropriations  

83,987  83,987 

83,987 

83,987 

83,987 

83,987 

83,987 

561,309 

26,600 

587,909 

739109 

DG: EMPL 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Year 
N+4 

Year 
N+5 

Year 
N+6 

TOTAL 

(cid:121) Human resources  

25,400  25,400 

25,400 

25,400 

25,400 

25,400 

25,400 

177,800 

(cid:121) Other administrative expenditure  

TOTAL DG EMPL 

Appropriations  

25,400  25,400 

25,400 

25,400 

25,400 

25,400 

25,400 

177,800 

EN 

174 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total 
= Total payments) 

commitments 

109,387  109,387  109,387  109,387

109,387

109,387

109,387

765,709 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

Payments 

EUR million (to 3 decimal places) 

Year 
N86 

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 

46.663
,059 

47.138
,355 

47.537

,542  

48.004
,451 

48.593
,671 

49.150
,244 

49.698
,879 

336.786,202 

86

Year N is the year in which implementation of the proposal/initiative starts. 

EN 

175 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
3.2.2.  Estimated impact on operational appropriations  

•  (cid:133)  The proposal/initiative does not require the use of operational appropriations 

•  (cid:133)  The proposal requires the use of operational appropriations, as explained below. Cohesion policy is run by shared management. While 
strategic priorities are set at the EU level, actual day-to-day management is vested in managing authorities at national, regional and local 
level.  While  common  output  indicators  are  proposed  by  the  Commission,  the  actual  output  targets  are  proposed  by  these  managing 
authorities as part of their operational programmes, and agreed by the Commission. It is therefore difficult to indicate targets for outputs 
until the programmes are drafted, negotiated and agreed in 2013/14. 

Commitment appropriations in EUR million (to 3 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 

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

Total 
number 
of 
outputs 

Total  
cost 

(cid:216) 

Type 
of 
output
87 

Avera
ge 
cost  
of the 
output 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

SPECIFIC OBJECTIVE No 188… 

- Output 

- Output 

- Output 

Sub-total for specific objective N°1 

SPECIFIC OBJECTIVE No 2… 

- Output 

87 
88 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in Section 1.4.2. "Specific objective(s)…". 

EN 

176 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Sub-total for specific objective N°2 

TOTAL COST 

.

EN 

177 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

•  (cid:133)  The  proposal/initiative  does  not 

require 

the  use  of  administrative 

appropriations  

•  (cid:133)  The  proposal  requires  the  use  of  administrative  appropriations,  as  explained 

below: 

DG REGIO 

EUR million (to 3 decimal places)  

Year 
N 89 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Year 
N+4 

Year 
N+5 

Year 
N+6 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human 
REGIO  

resources 

Other  administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 590 
of the multiannual 
financial framework 91 

Human 
REGIO  

resources 

Other 
expenditure  
of  an  administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

80,187  80,187 

80,187 

80,187 

80,187 

80,187 

80,187 

561.309

3,800 

3,800 

3,800 

3,800 

3,800 

3,800 

3,800 

26,600 

83,741  83,741 

83,741 

83,741 

83,741 

83,741 

83,741 

586,187 

4,4 

4,4 

4,4 

4,4 

4,4 

4,4 

4,4 

30,8 

13,365 

13,365 

13,365 

13,365 

13,365 

13,365 

13,365 

93,555 

17,765

17,765 

17,765

17,765

17,765

17,765 

17,765

124,355

TOTAL 

101,506

101,506 

101,506

101,506

101,506

101,506 

101,506

710,542

89

90

91

Year N is the year in which implementation of the proposal/initiative starts. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions 
(former "BA" lines), indirect research, direct research. 
External staff financed from former BA lines, based on the 2011 Final Allocation for Human Resources, including external staff 
at Headquarters and in Delegations 

EN 

178 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
 
 
EN 

179 

   EN 

 
 
 
 
 
 
 
 
 
DG EMPL  

EUR million (to 3 decimal places) 

Year 
N 92 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Year 
N+4 

Year 
N+5 

Year 
N+6 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

25,400 

25,400 

25,400 

25,400 

25,400 

25,400 

25,400 

177,800 

Other  administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 593 
of the multiannual 
financial framework  

25,400 

25,400 

25,400 

25,400 

25,400 

25,400 

25,400 

177,800 

Human resources  

5,000 

5,000 

5,000 

5,000 

5,000 

5,000 

5,000 

35,000 

Other 
expenditure  
of  an  administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

16,000 

16,000 

16,000 

16,000 

16,000 

16,000 

16,000 

112,000 

21,000 

21,000 

21,000 

21,000 

21,000 

21,000 

21,000 

147,000 

TOTAL 

46,400 

46,400 

46,400 

46,400 

46,400 

46,400 

46,400 

324,800

TOTAL 

148,933 

148,933 

148,933 

148,933 

148,933 

148,933 

148,933 

1.042,531

92

93

Year N is the year in which implementation of the proposal/initiative starts. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions 
(former "BA" lines), indirect research, direct research. 

EN 

180 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
 
3.2.3.2.   Estimated requirements of human resources  

•  (cid:133)  The proposal/initiative does not require the use of human resources 

•  (cid:133)  The proposal/initiative requires the use of human resources, as explained below: Figures used for the year n are the ones for 2011. 

DG REGIO:  

Year 
N 

Year 
N+1 

Year N+2 

Year 
N+3 

Year 
N+4 

Year 
N+5 

Year 
N+6 

Estimate to be expressed in full amounts (or at most to one decimal place) 

(cid:121) Establishment plan posts (officials and temporary agents) REGIO 

13 01 01 01 (Headquarters and 
Commission’s Representation Offices) 

13 01 01 02 (Delegations) 

13 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

606 

606 

606 

606 

606 

606 

606 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)94 REGIO 

13 01 02 01 (CA, INT, SNE from the 
"global envelope") 

13 02 02 (CA, INT, JED, LA and SNE in 
the delegations) 

48 

48 

48 

48 

48 

48 

48 

13 01 04 01 
95 

- at Headquarters96 

56 

56 

56 

- in delegations  

56 

56 

56 

56 

94

95

96

CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young Experts in Delegations); LA= Local Agent; SNE= Seconded National Expert;  
Under the ceiling for external personnel from operational appropriations (former "BA" lines). 
Essentially for Structural Funds, European Agricultural Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF). 

EN 

181 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
 
 
13 01 04 03 
97 

- at Headquarters98 

25 

25 

25 

25 

25 

25 

25 

- in delegations  

XX 01 05 02 (CA, INT, SNE - Indirect 
research) 

10 01 05 02 (CA, INT, SNE - Direct 
research) 

Other  

TOTAL 

735 

735 

735 

735 

735 

735 

735 

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 agents 

To contribute to the analysis, negotiation, modification and/or preparation for approval 
proposals  for  programmes  and/or  projects  in  Member  State  XXX.  To  contribute  to 
manage,  monitor  and  evaluate  the  implementation  of  programmes/projects  approved. 
To ensure compliance with the rules governing programme XXX. 

External personnel 

Idem and /or administrative support 

97

98

Under the ceiling for external personnel from operational appropriations (former "BA" lines). 
Essentially for Structural Funds, European Agricultural Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF). 

EN 

182 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
 
DG EMPL  

Estimate to be expressed in full time equivalent units without decimals 

Year 
N+1 

200 

Year N+2 

Year N+3 

Year 
N+4 

Year 
N+5 

Year 
N+6 

200 

200 

200 

200 

200 

(cid:121) Establishment plan posts (officials and temporary agents) 

Year 
N 

200 

04 01 01 (Headquarters 
and Commission’s 
Representation Offices) 
(200 posts, unit cost 
127.000 €)  

 (Delegations) 

(Indirect research) 

 (Direct research) 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)99 

 (CA, INT, SNE from 
the "global envelope") 

 (CA, INT, JED, LA and 
SNE in the delegations) 

04 
01 
04 
01 
100 

-  at 
Hea
dqu
arter
s101 

- in 
dele

93 

93 

93 

93 

93 

93 

93 

99

100

101

CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young Experts in Delegations); LA= Local Agent; SNE= Seconded National Expert;  
Under the ceiling for external personnel from operational appropriations (former "BA" lines). 
Essentially for Structural Funds, European Agricultural Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF). 

EN 

183 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
 
 
gati
ons  

XX 01 05 02 (CA, INT, 
SNE - Indirect research) 

xx 01 05 02 (CA, INT, 
SNE - Direct research) 

Other xx 01 04 02) 

TOTAL 

293 

293 

293 

293 

293 

293 

293 

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. 

EN 

184 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.4.  Compatibility with the current multiannual financial framework  

•  (cid:133)  Proposal/initiative is compatible the next multiannual financial framework. 

•  (cid:133)  Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

multiannual financial framework. 

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding 
amounts. 

[…] 

•  (cid:133)  Proposal/initiative requires application of the flexibility instrument or revision 

of the multiannual financial framework102. 

Explain what is required, specifying the headings and budget lines concerned and the corresponding 
amounts. 

[…] 

3.2.5.  Third-party contributions  

•  The proposal/initiative does not provide for co-financing by third parties  

•  (cid:133)  The  proposal  provides  that  European  funding  needs  to  be  co-financed.  The 
exact  amount  cannot  be  quantified.  The  regulation  establishes  maximum  co-
financing  rates  differentiated  in  line  with  the  level  of  regional  development  (cf. 
Art. 73 of proposed regulation): 

Appropriations in EUR million (to 3 decimal places) 

Year 
N 

MS  

Year 
N+1 

MS  

Year 
N+2 

MS  

Year 
N+3 

MS  

Year 
N+4 

MS  

Year 
N+5 

MS  

Year 
N+6 

MS  

Total 

tbd 

tbd 

tbd 

tbd 

tbd 

tbd 

Tbc 

Specify  the  co-financing 
body  

TOTAL 
cofinanced  

appropriations 

102

See points 19 and 24 of the Interinstitutional Agreement. 

EN 

185 

   EN 

 
 
 
 
 
 
                                                 
 
3.3. 

Estimated impact on revenue  

•  (cid:133)  Proposal/initiative has no financial impact on revenue. 

•  (cid:133)  Proposal/initiative has the following financial impact: 

– 

– 

(cid:133) 

(cid:133) 

on own resources  

on miscellaneous revenue  

Appropriations 
available for the 
ongoing budget 
year 

Budget revenue line: 

Article …………. 

EUR million (to 3 decimal places) 

Impact of the proposal/initiative103 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

… insert as many columns as necessary 
in order to reflect the duration of the 
impact (see point 1.6) 

For miscellaneous assigned revenue, specify the budget expenditure line(s) affected. 

[…] 

Specify the method for calculating the impact on revenue. 

[…] 

103

As  regards  traditional  own  resources  (customs  duties,  sugar  levies),  the  amounts  indicated  must  be  net  amounts,  i.e.  gross 
amounts after deduction of 25% for collection costs. 

EN 

186 

   EN