Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2017/825 to increase the financial envelope of the Structural Reform Support Programme and adapt its general objective
Date: 2017-12-06
Institutions: European Commission, Secretariat-General
Subjects: EU Member State, EU aid, EU financing, EU programme, administrative reform, economic convergence, economic reform, institutional reform, structural adjustment

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   EUROPEAN COMMISSION  Brussels, 6.12.2017 COM(2017) 825 final 2017/0334 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2017/825 to increase the financial envelope of the Structural Reform Support Programme and adapt its general objective   
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The  Structural  Reform  Support  Programme  for  the  period  2017  to  2020  has  been  running 
since  20  May  2017  with  a  budget  of  EUR  142.8  million.1  It  was  established  with  
the  objective  of  strengthening  the  capacity  of  Member  States  to  prepare  and  implement 
growth-sustaining  administrative  and  structural  reforms,  including  through  the  use  of 
assistance  for  the  efficient  and  effective  use  of  the  Union  funds.  Support  under  the 
Programme is provided by the Commission, upon request by a Member State, and can cover 
a wide range of policy areas. 

Since  the  Structural  Reform  Support  Programme  Regulation  entered  into  force,  there  has 
been  a  very  high  take-up  of  the  programme  by  Member  States,  with  requests  for  support 
significantly exceeding the amount of funding available for its annual cycles. This is borne 
out  by  data  for  the  2017  cycle  where,  despite  the  late  adoption  of  the  Structural  Reform 
Support  Programme  Regulation,  271  requests  for  support  were  submitted  by  16  Member 
States for an estimated amount of over EUR 80 million in total, compared with an allocation 
of EUR 22.5 million for 2017. This led to a strong prioritisation effort by the Commission, 
resulting in several requests not being selected for funding. The situation is even more acute 
for the 2018 cycle, which has just been launched (the deadline for submitting requests was  
31  October  2017).  444  requests  for  support  were  submittted  by  24  Member  States  and  the 
total  estimated  cost  of  such  requests  is  approximatly  EUR  152  million,  compared  with  
the allocation for 2018 of EUR 30.5 million. This demonstrates clearly that the support needs 
on  the  ground  and  the  interest  for  support  from  Member  States  goes  well  beyond  the 
currently available financial resources of the Programme. 

The  experience  to  date  has  shown  that  many  Member  States  have  requested  support  under 
the Programme, and that requests for support are distributed across all support policy areas 
covered  by  the  Programme,  such  as  governance  and  public  administration,  revenue 
administration  and  public  financial  management,  growth  and  business  environment,  labour 
market, education, health and social services, the financial sector and access to finance.  

As  indicated  by  President  Juncker  in  his  Address  (and  annexed  Letter  of  Intent)  to  
the European Parliament on 13 September 2017 on the State of the Union,2 the euro is meant  
to  be  the  single  currency  of  the  Union  as  a  whole  and,  therefore,  ultimately  all  but  two 
Member  States  are  required  and  entitled  to  join  the  euro  area.  There  is  thus  a  clear  need  
to think ahead and support non-euro area Member States in preparing for their euro accession 
when they so desire. In order to be able to join the euro area, Member States must meet the 
“Maastricht” or “convergence criteria”, which indicate that they have achieved a high degree 
of sustainable convergence.   

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2 

Regulation (EU) No 2017/825 of the European Parliament and of the Council of 17 May 2017 on the 
establishment of the Structural Reform Support Programme for the period 2017 to 2020 and amending 
Regulations (EU) No 1303/2013 and (EU) No 1305/2013 (OJ L129 19.05.2017, p. 1). 
President Jean-Claude Juncker’s State of the Union Address 2017, 13 September 2017. 

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The  economic  and  financial  crisis  has  demonstrated  that,  beyond  nominal  convergence, 
achieving  real  convergence  and  having  resilient  economies  built  on  robust  economic 
structures, which allow Member States to efficiently absorb shocks and swiftly recover from 
them,  are  crucial  for  ensuring  successful  participation  in  the  euro  area.  This  requires,  
in  particular,  that  Member  States  have  the  capacity  to  manage  their  budgets  in  accordance 
with  the  principles  of  sound  public  financial  management  and  are  institutionally  ready  to 
participate  in  the  Banking  Union.  Beyond  this,  properly  functioning  labour  and  product 
markets, which are able to absorb external shocks, a high degree of integration in terms of 
trade  in  goods  and  services,  and  a  well-functioning  public  administration  are  of  prime 
importance for successful integration into the euro area.  

Against the background of (i) the higher financing needs for the provision of support for the 
implementation of structural reforms, and (ii) the need to support Member States that intend 
to  adopt  the  euro  in  accelerating  the  process  of  real  convergence  and  developing  more 
resilient economic and social structures to ensure their smooth participation in the Economic 
and Monetary Union, the Commission is committed, as a first step, to reinforcing the budget 
of the Structural Reform Support Programme by EUR 80 million for the period 2019-2020. 
This should be achieved by using the Flexibility Instrument under Article 11 of the current 
Multiannual  Financial  Framework.3  This  would  bring  the  overall  financial  envelope  of  the 
Structural Reform Support Programme to EUR 222.8 million. The increase would not only 
allow the demand for support stemming from the non-euro area Member States, which want 
to  adopt  the  euro  and  need  to  implement  reforms  in  their  economies,  to  be  satisfied,  
but  would  also  allow  for  the  increased  number  and  cost  of  requests  for  support  for  
the implementation of administrative and structural reforms to be catered for.  

This additional budget would be supplemented by inviting Member States to make use of the 
possibility,  under  Article  11  of  the  Structural  Reform  Support  Programme  Regulation,  
of  transferring  part  of  their  resources  from  the  technical  assistance  component  of  the 
European  Structural  and  Investment  Funds  to  the  Structural  Reform  Support  Programme,  
for the purpose of provision of support for the implementation of reforms, including reforms 
linked  to  euro  adoption.  Based  on  current  estimates  of  possible  needs  for  support,  
this  supplement  would  increase  the  total  amount  of  the  budget  available  for  support  to  
EUR 300 million, thus doubling the support capacity by 2020.  

The  support  would  offer  tailor-made  assistance  for  the  implementation  of  all  policies  that 
help the Member States achieve a high degree of sustainable convergence. The support will 
be offered notably in the areas of the business environment, the financial sector, labour and 
product  markets,  the  public  administration  and  public  financial  management.  The  most 
important  reforms  needed  to  foster  sustainable  real  convergence  will  be  highlighted  in  the 
context of the European Semester.  

In a dedicated work stream, those Member States wishing to make progress towards joining 
the  euro  area  would  agree,  in  dialogue  with  the  Commission,  on  a  limited  set  of  reform 
commitments  that  are  of  particular  importance  for  successful  euro  area  membership.  
These reform commitments would also be reflected in the National Reform Programmes of 
the  Member  States  concerned.  The  Commission  through  the  Structural  Reform  Support 
Service  would  conclude  a  new  Cooperation  and  Support  Plan  with  the  Member  States 
concerned,  focussing  on  providing  technical  support  for  the  implementation  of  reform 

3 

Cf. Article 11 of Council Regulation (EU, EURATOM) No 1311/2013.  

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commitments linked to euro adoption. This arrangement would be fully voluntary and would 
be offered without any co-financing from the beneficiary Member States.  

• 

Consistency with existing policy provisions in the policy area 

The  Structural  Reform  Support  Programme  is  an  innovative  Union  programme,  whereby  
the  Commission  provides  support  to  Member  States,  upon  their  request,  for  the  design  and 
implementation  of  administrative  and  structural  reforms.  The  Structural  Reform  Support 
Programme focuses on the provision of tailor-made assistance and expertise on the ground to 
accompany  the  national  authorities  of  the  requesting  Member  States  throughout  the  reform 
process  or  in  defined  stages  or  different  phases  of  this  process.  This  is  based  on  the  most 
pressing country needs, as  mutually agreed between  the Commission and the Member State 
concerned in a Cooperation and Support Plan.  

The  Structural  Reform  Support  Programme  is  complementary  to  existing  resources  for 
capacity building and technical assistance, which are available within other Union financing 
programmes  under  the  Multiannual  Financial  Framework,  and  with  technical  assistance  and 
other  actions  financed  by  Union  funds.  This  is  ensured  at  both  the  programming  and 
implementation  stages.  To  this  effect,  the  Commission  has  set  up  a  technical  support 
coordination  mechanism  involving  the  services  concerned,  so  as  to  ensure  that  the  support 
provided under the various Union programmes and funds is consistent and avoids duplication 
with the measures under the Structural Reform Support Programme.  

This  proposal  aims  to  increase  the  financial  allocation  of  the  Structural  Reform  Support 
Programme in order to allow the Commission to cater for the needs, in particular, of non-euro 
area  Member  States,  which  embark  on  structural  reforms  aimed  at  making  their  economies 
more resilient to shocks and better preparing them for euro area membership, as well as for 
the  needs  stemming  from  the  increased  number  and  cost  of  requests  for  support  from  all 
Member States in relation to the implementation of structural reforms.  

• 

Consistency with other Union policies 

The proposal is consistent with and contributes to major Union policy initiatives such as the 
European Semester and the proposals made in the Reflection Paper on the Deepening of the 
Economic and Monetary Union,4 and is in line with the 2017 State of the Union address (and 
annexed  Letter  of  Intent)  made  by  President  Juncker  to  the  European  Parliament  on  
13  September  2017,  in  which  an  outline  of  the  strengthening  of  the  future  Economic  and 
Monetary Union was presented.  

The proposal allows for more financial resources to be available for the provision of support 
for much needed reforms, which would make the economies of non-euro area Member States 
more resilient to shocks and would help these Member States to thrive once they join the euro 
area.  In  addition,  the  proposal  allows  for  more  resources  to  be  available  for  supporting  the 
implementation of structural reforms throughout the Union.  

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COM(2017) 291, 31 May 2017. 

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2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  Structural  Reform  Support  Programme  is  based  on  Articles  175(third  paragraph)  and 
197(2) of the Treaty on the Functioning of the European Union.  

This proposal sets out a legislative amendment in order to (i) indicate the contribution of the 
Programme to facilitating the participation in the euro area of Member States whose currency 
is  not  the  euro,  (ii)  increase  the  dedicated  financial  envelope  of  the  Programme  (using  the 
Flexibility  Instrument  of  the  current  Multiannual  Financial  Framework),  and  (iii)  adapt  the 
general objective of the Structural Reform Support Programme in order to stress the link with 
the preparation for membership of the euro area. It also caters for some technical changes as 
regards  the  use  of  the  support  expenditure  of  the  Programme.  By  virtue  of  its  increased 
financial  resources,  the  Structural  Reform  Support  Programme  can  decisively  contribute  to 
building more resilient economic structures in the Member States and to achieving sustainable 
convergence in the non-euro area Member States preparing to join the euro area. 

• 

Subsidiarity (for non-exclusive competence)  

The  funding  of  the  Programme's  activities  through  the  proposed  amendment  respects  the 
principles  of  European  added  value  and  of  subsidiarity.  Increased  funding  from  the  Union 
budget is needed as regards the overall support for the implementation of structural reforms, 
in view of the unexpectedly high take-up of the Programme by the Member States. It is also 
needed  in  view  of  the  objective  of  supporting  sustainable  convergence  in  the  non-euro  area 
Member  States,  which  is  crucial  for  the  prosperity  of  the  Union  and,  in  particular,  for  the 
smooth functioning of the single currency. Neither of these objectives (support for structural 
reforms  in  general  and  support  for  euro  area  membership)  can  be  achieved  to  a  sufficient 
degree  by  the  Member  States  acting  alone  (‘necessity  test’),  while  the  Union's  intervention 
can bring additional value compared to actions of Member States on their own (‘effectiveness 
test’).   

Indeed,  the  Union  is  in  a  better  position  than  Member  States  to  identify,  mobilise  and 
coordinate the  best available expertise  (be it from inside the European institutions' services, 
from  other  countries  or  from  international  organisations),  and  foster  the  exchange  of  good 
practices (as well as ensure their consistent dissemination across the Union) to assist non-euro 
area  Member  States  along  their  path  to  join  the  single  currency  and  to  support  the 
implementation of targeted growth-enhancing reforms in all the Member States.  

• 

Proportionality 

The  proposal  complies  with  the  proportionality  principle  in  that  it  does  not  go  beyond  the 
minimum required in order to achieve the stated objective at European level and that which is 
necessary for that purpose.  

• 

Choice of the instrument 

The proposal is an amendment to the Structural Reform Support Programme Regulation. 

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3. 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

The current amendment aims to respond to an urgent need to cater for the support to non-euro 
area Member States that embark on structural reforms aimed at making their economies more 
resilient to shocks, accelerating the process of real convergence and better preparing them for 
euro area membership. The amendment also aims to increase the overall financial envelope in 
order  to  satisfy  the  much  higher  than  expected  demand  for  support  from  Member  States  in 
relation to the implementation of structural reforms. 

• 

Regulatory fitness and simplification 

The proposal is not linked to the regulatory fitness and simplification exercise and does not 
have  any  costs  of  compliance  for  small  and  medium-sized  enterprises  or  any  other 
stakeholders.  The  Structural  Reform  Support  Programme  will  soon  be  implemented  via  an 
electronic  platform  (JIRA),  which  will  be  available  for  the  Commission  services  and  the 
Member States.   

• 

Fundamental rights 

The proposal has a positive effect on the preservation and development of Union fundamental 
rights, assuming that the Member States request and receive technical support in related areas. 
For  example,  support  in  areas  such  as  migration,  labour  markets  and  social  insurance, 
healthcare,  education,  the  environment,  property,  public  administration  and  the  judicial 
system  can  support  Union  fundamental  rights  such  as  dignity,  freedom,  equality,  solidarity, 
citizens' rights and justice.  

4. 

BUDGETARY IMPLICATIONS 

It is proposed to increase the dedicated financial envelope for the Structural Reform Support 
Programme  from  EUR  142  800  000  (current  prices)  to  EUR  222  800  000  (current  prices). 
This  increase  would  be  in  place  for  2019  and  2020.  The  legislative  financial  statement 
provides the appropriate explanations. 

This  increase  should  be  made  possible  by  using  EUR  80  000  000  from  the  Flexibility 
Instrument  under  the  current  Multiannual  Financial  Framework  (Article  11  of  Council 
Regulation 1311/2013), which allows for supplementing the financing available in the general 
budget of the Union for the financial years 2018 and 2019 beyond the ceiling of heading 1b 
(cohesion).  

This  increased  budget  will  be  supplemented  by  inviting  Member  States  to  make  use  of  the 
possibility,  under  Article  11  of  the  Structural  Reform  Support  Programme  Regulation,  
of  transferring  part  of  their  resources  from  the  technical  assistance  component  of  the 
European Structural and Investment Funds to the Structural Reform Support Programme, for 
the purpose of the provision of support for the implementation of reforms, including reforms 
linked  to  euro  adoption.  Based  on  current  estimates  of  possible  needs  for  support,  this 
supplement would increase the total amount of the budget available for support  to EUR 300 
million.  

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5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The  monitoring,  evaluation  and  reporting  requirements  are  adequately  foreseen  in  the 
Structural Reform Support Programme Regulation. No change to this effect is foreseen.  

Explanatory documents (for directives) 

• 

N/A 

• 

Detailed explanation of the specific provisions of the proposal 

The  proposal  amends  Article  4  of  the  Structural  Reform  Support  Programme  Regulation 
(general objective) in order to add support for euro area membership to the goals for which 
the  Programe  provides  contributions.  Notably,  the  Programme  provides  support  to  national 
authorities  for  reforming  institutions,  governance,  administration,  economic  and  societal 
sectors in response to economic and social challenges. With the proposed amendement, it is 
emphasised  that  enhancing  cohesion,  competitiveness,  productivity,  sustainable  growth  and 
job creation should also contribute to preparations for participation in the euro area by those 
Member States whose currency is not the euro and that want to join the single currency. 

The proposed Article 5a emphasises the contribution of the Programme in a dedicated work 
stream towards supporting reforms that may help Member States in their preparation to join 
the euro area.  

The proposal amends paragraph 1 of Article 10 of the Structural Reform Support Programme 
Regulation,  as  regards  the  dedicated  financial  envelope  of  the  Structural  Reform  Support 
Programme, in order to bring it to EUR 222.8 million in current prices.   

The proposal amends paragraph 2 of Article 10 of the Structural Reform Support Programme 
Regulation,  i.e.  the  provision  on  support  expenditure  of  the  Programme,  by  adding  the 
possibility  of  financing  supporting  activities,  such  as  quality  control  and  monitoring  of 
ground.
concrete 

projects 

support 

the 

on 

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2017/0334 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) 2017/825 to increase the financial envelope of the Structural 
Reform Support Programme and adapt its general objective  

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 the 
third paragraph of Article 175 and Article 197(2) 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 Committee5,  
Having regard to the opinion of the Committee of the Regions6,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

The  Structural  Reform  Support  Programme  (‘the  Programme’)  was  established  with 
the objective of strengthening the capacity of Member States to prepare and implement 
growth-sustaining administrative and structural reforms, including through assistance 
for the efficient and effective use of the Union funds. Support under the Programme is 
provided by the Commission, upon request by a Member State, and can cover a wide 
range  of  policy  areas.  Developing  resilient  economies  built  on  strong  economic  and 
social structures, which allow Member States to efficiently absorb shocks and swiftly 
recover from them, contributes to economic and social cohesion. The implementation 
of  institutional,  administrative  and  growth-sustaining  structural  reforms  is  an 
appropriate tool for achieving such a development.  

(2)  Member States have increasingly taken up support under the Programme, beyond the 
initial expectations. The requests for support received by the Commission during the 
2017 cycle have, based on their estimated value, significantly exceeded the available 
annual allocation. During the 2018 cycle, the estimated value of requests received was 
five  times  the  financial  resources  available  for  that  year.  Almost  all  Member  States 
have  requested  support  under  the  Programme  and  requests  are  distributed  across  all 
policy areas covered by the Programme. 

(3) 

Strengthening  economic  and  social  cohesion  by  reinforcing  structural  reforms  is 
crucial  for  successful  participation  in  the  Economic  and  Monetary  Union.  That  is 

5 
6 

OJ C […], […], p. […]. 
OJ C […], […], p. […]. 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

particularly  important  for  Member  States  whose  currency  is  not  the  euro,  in  their 
preparation to join the euro area. 

It is thus appropriate to stress in the general objective of the Programme – within its 
contribution  towards  responding  to  economic  and  social  challenges  –  that  enhancing 
cohesion,  competitiveness,  productivity,  sustainable  growth,  and  job  creation  should 
also  contribute  to  the  preparations  for  future  participation  in  the  euro  area  by  those 
Member States whose currency is not the euro. 

It  is  also  necessary  to  indicate  that  actions  and  activities  of  the  Programme  may 
support reforms that  may help Member States that wish to adopt the euro to prepare 
for participation in the euro area. 

In order to meet the growing demand for support from Member States, and in view of 
the need to support the implementation of structural reforms in Member States whose 
currency  is  not  the  euro,  the  financial  allocation  for  the  Programme  should  be 
increased to a sufficient level that allows the Union to provide support that meets the 
needs of the requesting Member States. 

In  order  to  provide  support  with  the  least  possible  delay,  the  Commission  should  be 
able to use part of the financial envelope also to cover the cost of activities supporting 
the Programme, such as expenses related to quality control and monitoring of projects 
on the ground.  

Regulation (EU) 2017/825 should therefore be amended accordingly. 

In  order  to  allow  for  the  prompt  application  of  the  measures  provided  for  in  this 
Regulation, this Regulation should enter into force on the day following its publication 
in the Official Journal of the European Union, 

HAVE ADOPTED THIS REGULATION: 

Regulation (EU) 2017/825 is amended as follows:  

Article 1 

(1) 

Article 4 is replaced by the following: 

“Article 4 

General objective 

The  general  objective  of  the  Programme  shall  be  to  contribute  to  institutional, 
administrative  and  growth-sustaining  structural  reforms  in  the  Member  States  by 
providing  support  to  national  authorities  for  measures  aimed  at  reforming  and 
strengthening institutions, governance, public administration, and economic and social 
sectors  in  response  to  economic  and  social  challenges,  with  a  view  to  enhancing 
cohesion,  competitiveness,  productivity,  sustainable  growth,  job  creation,  and 
investment, which will also prepare for participation in the euro area, in particular in 
the  context  of  economic  governance  processes,  including  through  assistance  for  the 
efficient, effective and transparent use of the Union funds.”; 

(2) 

Article 5a is added 

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“Article 5a 

Support for preparation for euro area membership 

The Programme may finance actions and activities in support of reforms that may help 
Members States in their preparation to join the euro area.”. 

(3) 

Article 10 is amended as follows: 

(a) paragraph 1 is replaced by the following: 

“1.   The  financial  envelope  for  the  implementation  of  the  Programme  is  set  at  EUR 
222 800 000 in current prices.”; 

(b) in paragraph 2, the following sentence is added: 

“Expenses  may  also  cover  the  costs  of  other  supporting  activities  such  as  quality 
control and monitoring of support projects on the ground.”. 

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

Article 2 

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 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposl/initiative  

1.2.  Policy area(s) concerned 

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 mode(s) planned  

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 contributions  

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  the  Council  amending 
Regulation  (EU)  2017/825  to  increase  the  financial  envelope  of  the  Structural 
Reform Support Programme and adapt its general objective  

1.2. 

Policy area(s) concerned  

Policy area: COMMISSION’S POLICY COORDINATION AND LEGAL ADVICE 

ABB activity: Structural Reform Support Programme 

For a detail account of the ABB activity refer to section 3.2 

Policy Area: Employment, Social Affaires and Inclusion 

Policy Area: Regional and Urban Policy 

Policy Area: Agriculture and Rural Development 

Policy Area: Migration and Asylum 

Policy Area: Economic and Financial Affairs 

1.3. 

Nature of the proposal/initiative  

 The proposal/initiative relates to a new action  

  The  proposal/initiative 
project/preparatory action7  

relates 

to  a  new  action 

following  a  pilot 

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

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

1.4. 

Objective(s) 

1.4.1.  The  Commission's  multiannual 

strategic  objective(s) 

targeted  by 

the 

proposal/initiative  

The  programme  contributes  to  the  priority:  a  new  boost  for  jobs,  growth  and 
investment.  

The  Programme  general  objective,  as  amended  by  this  proposal,  is  to  contribute  to 
institutional, administrative and growth-sustaining structural reforms in the Member 
States by providing support to national authorities for measures aimed at reforming 
and strengthening institutions, governance, public administration, and economic and 
social  sectors  in  response  to  economic  and  social  challenges,  with  a  view  to 
enhancing cohesion, competitiveness, productivity, sustainable growth, job creation, 
and  investment,  which  will  also  prepare  for  participation  in  the  euro  area,  in 
particular  in  the  context  of  economic  governance  processes,  including  through 
assistance for the efficient, effective and transparent use of the Union funds.. 

7 

As referred to in Article 54(2)(a) or (b) of the Financial Regulation. 

EN 

11 

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In  particular, with  the proposed amendment the, Programme  will also  contribute to 
supporting reforms that may help Members States in their preparation to join the euro 
area. 

1.4.2. 

Specific objective(s) and Specific objective No [ ]  

As  this  proposal  is  an  amendment  to  Regulation  (EU)  2017/825,  the  specific 
objectives of the proposal are the same of Article 5 of the Regulation. 

1.4.3.  Expected result(s) and impact 

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

The  expected  results  are  those  of  Regulation  (EU)  2017/825,  as  reflected  on  the 
proposal COM(2015)701final. 

The amendment proposed is also expected to reinforce the administrative capacity in 
the  Member  States  to  reform  institutions,  the  administration,  economic  and  social 
sectors,  to  foster  sustainable  convergence  with  a  view  to  help  Members  States  in 
their preparation to join the euro area. 

1.4.4. 

Indicators of results and impact  

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

As  this  proposal  is  an  amendment  to  Regulation  (EU)  2017/825,  the  indicators  for 
monitoring results and impacts will be those of the annex to that Regulation. 

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

The requirement are those of Regulation (EU) 2017/825, as reflected on the proposal 
COM(2015)701final.  

The amendment proposed is also expected to foster sustainable convergence with a 
view to help Members States in their preparation to join the euro area. 

1.4.6.  Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this point 'added value of Union involvement' is the value resulting 
from  Union  intervention  which  is  additional  to  the  value  that  would  have  been 
otherwise created by Member States alone. 

As this proposal is an amendment to Regulation (EU) No 2017/825, the added value 
of the programme is that reflected in its Article 3.  

In addition, the Union is in a better position than Member States to identify, mobilise 
and  coordinate  the  best  available  expertise  (be  it  from  inside  the  European 
institutions services and from other  countries,  or international organisations), foster 
the exchange of best practices (as well as ensure its consistent dissemination across 
the Union) in support of the implementation of targeted growth-sustaining reforms in 
the Member States and for helping non-euro area Member States in their preparation 
to join the euro area. 

EN 

12 

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1.4.7.  Lessons learned from similar experiences in the past 

The  experience  gained  through  the  implementation  of  the  Preparatory  Action 
"Capacity  development  and  institution  building  to  support  the  implementation  of 
economic reforms" and in particular the first year of implementation of the Structural 
Reform  Support  Programme  confirm  the  usefulness  of  a  technical  support 
programme open to all Member States and to a wide number of areas: Member States 
have  confirmed their interest in  benefiting from Commission  expertise provision in 
support  of  their  own  reforms  or  those  carried  out  in  line  with  recommendations 
issued in the framework of the European Semester.  

In year 2018 almost all Member States (24) have submitted request for support, and 
in  both  2017  and  2018  the  support  requested  exceeded  considerably  the  budget 
allocation for the programme. This demonstrates clearly that the support needs on the 
ground  and  the  interest  for  support  from  Member  States  goes  well  beyond  the 
currently available financial resources of the Programme. 

1.4.8.  Compatibility and possible synergy with other appropriate instruments 

The  Programme  is  complementary  to  existing  resources  for  capacity  building  and 
technical  assistance  available  within  other  Union  financing  programmes  under  the 
Multi-annual  Financial  Framework  and  with  technical  assistance  and  other  actions 
financed by Union funds.  

1.5. 

1.6. 

Duration and financial impact  

 Proposal/initiative of limited duration  

–    Proposal/initiative in effect from 2019 to 2020 

–    Financial impact from 2019 to 2020  

 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) planned8  

 Direct management by the Commission 

–   by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated; 

–   international organisations and their agencies (to be specified); 

8 

Details of management modes and references to the Financial Regulation may be found on the 
BudgWeb site: 
https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx  

EN 

13 

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–  the EIB and the European Investment Fund; 

–   bodies referred to in Articles 208 and 209 of the Financial Regulation; 

–   public law bodies; 

–  bodies governed by private law with a public service mission to the extent that 

they provide adequate financial guarantees; 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  provide  adequate 
financial guarantees; 

–    persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act. 

– 

If more than one management mode is indicated, please provide details in the ‘Comments’ section. 

Comments  

This is in line with the current provisions of the Regulation to be amended.  

EN 

14 

  EN 

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

The  monitoring  and  reporting  rules  will  be  those  of  the  amended  Regulation  (EU) 
2017/825. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

The  risks  identified  are  those  reflected  in  the  proposal  for  adoption  of  Regulation 
(EU) 2017/825, i.e. COM(2015) 701 final. 

2.2.2. 

Information concerning the internal control system set up 

As above, see the financial statement accompanying COM(2015)701 final. 

2.2.3.  Estimate of the costs and benefits of the controls and assessment of the expected level 

of risk of error  

As above, see the financial statement accompanying COM(2015)701 final. 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

As above, see the financial statement accompanying COM(2015)701 final. 

EN 

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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 budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

1.b 

Heading of 
multiannual 
financial 
framework 

1b  Economic, 
cohesion 

social  and 

territorial 

Diff./Non-
diff.9 

from 
EFTA 
countries
10 

from 
candidate 
countries11 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
the Financial 
Regulation  

13.08.01 

Diff 

YES 

NO 

NO  

NO 

  New budget lines requested  

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 21(2)(b) of 
the Financial 
Regulation  

[XX.YY.YY.YY] 

YES/N
O 

YES/NO 

YES/N
O 

YES/NO 

9 
10 
11 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

EN 

16 

  EN 

 
 
 
 
 
 
                                                 
 
3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial  
framework  

DG:SG / SRSS 

Operational appropriations 

13.08.01 

TOTAL appropriations 
for 13 

Commitments 

Payments 

Commitments 

Payments 

  TOTAL operational appropriations 

Commitments 

Payments 

  TOTAL operational appropriations of an administrative nature 

financed from the envelope for specific programmes 

EUR million (to three decimal places) 

1b 

Economic, social and territorial cohesion/ Sustainable 
Growth: Natural Resources 

Year 

Year 

Years 

2019 

2020 

2021 & 
2022 

TOTAL 

40,000 

40,000 

80,000 

17,200 

28,600 

34,200 

80,000 

40,000 

40,000 

80,000 

17,200 

28,600 

34,200 

80,000 

40,000 

40,000 

80,000 

17,200 

28,600 

34,200 

80,000 

(1) 

(2) 

=1+1a +3 

=2+2a 

3 

(4) 

(5) 

(6) 

EN 

17 

EN 

 
 
  
  
  
  
  
  
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
TOTAL appropriations  
under HEADING 1b 

Commitments 

(4+6) 

40,000 

40,000 

80,000 

Payments 

(5+6) 

17,200 

28,600 

34,200 

80,000 

TOTAL appropriations  
under HEADINGS 1 to 4 
of the multiannual financial framework 
(Reference amount) 

Commitments 

Payments 

=4+ 6 

=5+ 6 

40,000 

40,000 

80,000 

17,200 

28,600 

34,200 

80,000 

EN 

18 

EN 

 
 
 
 
  
 
 
 
 
 
 
Heading of multiannual financial  
framework  

5 

‘Administrative expenditure’ 

DG: SG/SRSS 

 Human resources  
 Other administrative expenditure  

Year 
2019 

Year 
2020 

3,594 

3,594 

0,300 

0,300 

TOTAL DG SG/SRSS 

Appropriations  

3,894 

3,894 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

3,894 

3,894 

EUR million (to three decimal places) 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6)  

TOTAL 

7,188 

0,600 

7,788 

7,788 

Year 
2019 

Year 
2020 

Years2
021 & 
2022 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

EUR million (to three decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

43,894 

43,894 

Payments 

21,094 

32,494 

34,200 

87,788 

87,788 

EN 

19 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.2.  Estimated impact on operational appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

–    The proposal/initiative requires the use of operational appropriations, as explained below: 

Commitment appropriations in EUR million (to three decimal places) 

Indicate 
objectives 
and 
outputs  



Year 

2019 

OUTPUTS 

Year 

TOTAL 

2020 

Type[1] 

Average cost 

o
N

Cost 

o
N

Cost 

Total cost 

SPECIFIC OBJECTIVE No 1 

To assist the initiatives of national authorities to design their reforms 
according to priorities, taking into account initial conditions and expected 
socio-economic impacts 

- Output 
A 

- Output 
B 

Number 
analyses 
of 
supporting  national  reform 
sector 

0,06 

50-60 

3,360 

50-60 

3,360 

6,720 

Number of experts 

0,00115 

80 

Subtotal for specific objective No 1 

0,092 

3,452 

80 

0,092 

0,184 

3,452 

6,904 

EN 

20 

EN 

 
 
  
  
  
  
 
 
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SPECIFIC OBJECTIVE No 2 

To sustain the endeavours of national authorities to enhance their capacity 
to formulate, develop and implement reform policies and strategies and 
pursue an integrated approach ensuring consistency between goals and 
means across sectors 
- Output 
C 

Number of experts 

100-150 

0,00115 

0,141 

100-150 

0,141 

0,282 

- Output 
D 

Number of Roadmaps, 
Action plan, prepared and 
implemented by sector and 
country 

- Output E 

Number of specific service 
expertise 

- Output F 

Number of projects 
supported 

0,125 

25-30 

3,125 

25-30 

3,125 

6,250 

0,015 

25-30 

0,390 

25-30 

0,390 

0,780 

Subtotal for specific objective No 2 

0,900 

6 

5,400 

9,056 

6 

5,400 

10,800 

9,056 

18,112 

To support the efforts of national authorities to define and implement appropriate 
processes and methodologies by taking into account good practices and lessons 
learned by other countries in addressing similar situations 
- Output 
G 
- Output 
H 

Number of projects 
supported 

Number of experts 

220-240 

0,00115 

0,900 

8 

0,251 

7,200 

0,150 

18 

2,700 

- Output I 

Number of projects 
supported 

- Output J 

Number of specific service 
expertise 

220-240 

0,251 

0,502 

8 

18 

7,200 

14,400 

2,700 

5,400 

0,015 

90-95 

1,380 

90-95 

1,380 

2,760 

Subtotal for specific objective No 3 

11,531 

11,531 

23,062 

SPECIFIC OBJECTIVE No 4 

To assist the national authorities to enhance the efficiency and effectiveness 
of human resources management, where appropriate, through definition of 
clear responsibilities and increase of professional knowledge and skills 
- Output 
K 

Number of training 
events/seminars 

40-50 

3,200 

0,08 

EN 

40-50 

3,200 

6,400 

21 

EN 

 
 
  
 
  
  
 
  
  
  
  
  
  
 
- Output L 

Number of experts 

0,00115 

100-150 

0,161 

100-150 

0,161 

0,322 

- Output 
M 

- Output 
N 

Number of projects 
supported 

Number of projects 
supported 

0,900 

10-12 

9,900 

10-12 

9,900 

19,800 

0,150 

18 

2,700 

18 

2,700 

5,400 

Subtotal for specific objective No 4 

15,961 

15,961 

31,922 

EN 

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3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–    The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

Year 
201912 

Year 
2020 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show the 
duration of the impact (see point 1.6) 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

3,594 

3,594 

0,300 

0,300 

3,894 

3,894 

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 513 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

7,188 

0,600 

7,788 

TOTAL 

3,894 

3,894 

7,788 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by 
appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the 
DG,  together  if  necessary  with  any  additional  allocation  which  may  be  granted  to  the  managing  DG  under  the  annual 
constraints.
allocation 

procedure 

budgetary 

light 

and 

the 

of 

in 

12 
13 

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 

23 

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3.2.3.2.  Estimated requirements of human resources 

–    The proposal/initiative does not require the use of human resources.  

–    The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Estimate to be expressed in full time equivalent units 

Year 
2019 

Year 
2020 

Year N+2 

Ye
ar 
N+
3 

Enter 
as 
many 
years 
as 
necessa
ry to 
show 
the 
duratio
n of the 
impact 
(see 
point 
1.6) 

 Establishment plan posts (officials and temporary staff) 

XX 01 01 01 (Headquarters and Commission’s 
Representation Offices) 

23 

23 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

 External staff (in Full Time Equivalent unit: FTE)14 

XX 01 02 01 (AC, END, INT from the ‘global 
envelope’) 

6 

6 

XX 01 02 02 (AC, AL, END, INT and JED in the 
delegations) 

XX 01 04 yy 15 

- at Headquarters 

- in Delegations  

XX 01 05 02 (AC, END, INT - Indirect research) 

10 01 05 02 (AC, END, INT - Direct research) 

Other budget lines (specify) 

TOTAL 

29 

29 

XX is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to management of the 
action  and/or  have  been  redeployed  within  the  DG,  together  if  necessary  with  any  additional  allocation  which 
may  be  granted  to  the  managing  DG  under  the  annual  allocation  procedure  and  in  the  light  of  budgetary 
constraints. 

Description of tasks to be carried out: 

Officials and temporary staff 

The  task  to  be  carried  out  comprise  all  tasks  necessary  to  a)  the  processing  of  MS 

14 

15 

AC=  Contract  Staff;  AL  =  Local  Staff;  END=  Seconded  National  Expert;  INT  =  agency  staff; 
JED= Junior Experts in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

EN 

24 

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request  and  subsequent  management  of  projects  and  b)  the  financial  and  contractual 
management of the programme, namely: 

  Providing input to the budgetary procedure and management plan 

  Preparing  annual  work  programmes/financing  decisions,  establishing  annual 

priorities  

  Managing call for tenders and call for proposals and the subsequent selection 

procedures in coordination with the operational services. 

  Communicating with stakeholders on contractual and financial matters. 

  Preparation  and  organisation  of  the  High  Level  Group  meetings  with  DG 

concerned, Member States and other stakeholders. 

  Managing  projects:  design,  implementation  and  follow  up  of  projects  and 
management  of  the  contractual  and  financial  side:  commitment,  payment, 
recovery order, etc. 

  Performing  controls,  as  described  above  (ex  ante  verification,  procurement 

service, ex post/internal control) 

 

 Managing IT tools 

  Contributions and follow up of the annual DAS procedure. 

Monitoring  and  reporting  on  achievement  of  objectives,  including  in  the  budgetary 
procedure, management plan, mid-term review, AAR and AOS reports 

External staff 

Support to the financial and administrative tasks. 

3.2.4.  Compatibility with the current multiannual financial framework  

–    The  proposal/initiative  is  compatible  the  current  multiannual  financial 

framework. 

–    The 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. 

–    The  proposal/initiative  requires  application  of  the  flexibility  instrument  or 

revision of the multiannual financial framework. 

Explain what is required, specifying the headings and budget lines concerned and the corresponding 
amounts. 

The  proposal  requires  the  use  of  the  Flexibility  instrument  under  the  current  MFF 
(Article 11 of Council Regulation 1311/2013),  which allows for supplementing the 
financing  available  in  the  general  budget  of  the  Union  by  EUR  40  million  in  2019 
and EUR 40 million in 2020 beyond the ceiling of sub-heading 1b. 

3.2.5.  Third-party contributions  

–   The proposal/initiative does not provide for co-financing by third parties.  

–  The proposal/initiative provides for the co-financing estimated below: 

Appropriations in EUR million (to three decimal places) 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary 
to show the duration of the 
impact (see point 1.6) 

Total 

EN 

25 

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Specify  the  co-financing 
body  

TOTAL appropriations 
co-financed  

3.3. 

Estimated impact on revenue  

–    The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

 

 

on own resources  

on miscellaneous revenue  

Appropriation
s available for 
the current 
financial year 

Budget revenue line: 

Article …………. 

EUR million (to three decimal places) 

Impact of the proposal/initiative16 

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) 

For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected. 

Specify the method for calculating the impact on revenue. 

16 

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 

26 

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