Proposal for a COUNCIL REGULATION on measures concerning the implementation and financing of the general budget of the Union in 2019 in relation to the withdrawal of the United Kingdom from the Union
Date: 2019-01-30
Institutions: Directorate-General for Budget, European Commission
Subjects: United Kingdom, financing of the EU budget, general budget (EU), implementation of the budget, withdrawal from the EU

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   EUROPEAN COMMISSION  Brussels, 30.1.2019  COM(2019) 64 final 2019/0031 (APP)  Proposal for a COUNCIL REGULATION on measures concerning the implementation and financing of the general budget of the Union in 2019 in relation to the withdrawal of the United Kingdom from the Union  
 
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Since the notification by the United Kingdom of its withdrawal intention, the European Union 
has consistently stated that the Union and the United Kingdom should honour their respective 
obligations resulting from the whole period of the United Kingdom membership in the Union. 
This  principle  was  recalled  in  the  European  Council's  conclusions  of  29  April  2017,  and 
reflected  in  the  introduction  to  the  draft  withdrawal  agreement  agreed  by  the  27  Member 
States  and  the  United  Kingdom  government  on  14  November  2018.  The  absence  of  a 
withdrawal agreement at the withdrawal date would not affect that guiding principle. 

The Commission Communication ‘Preparing for the withdrawal of the United Kingdom from 
the European Union on 30 March 2019: a Contingency Action Plan’ of 13 November 20181 
set out the contingency measures it plans to take if no withdrawal agreement enters into force 
on  the  withdrawal  date.  In  that  Communication,  the  Commission  listed  the  actions  it 
considered necessary while recalling that additional actions may be necessary at a later stage. 
The Communication also presented the six general principles which contingency measures at 
all levels should comply with. These include the principles that measures should not replicate 
the benefits of membership of the Union, nor the terms of any transition period, as provided 
for in the Withdrawal Agreement; they must be temporary in nature and should in principle 
not go beyond the end of 2019; and they must be unilateral actions of the European Union in 
pursuit of its interests, and therefore in principle the Union can revoke them at any time.  

A no-deal scenario will leave the budgetary relations between the Union and the UK without 
agreed  legal  arrangements,  until  an  agreement  is  eventually  reached.  Such  a  legal  vacuum 
would create considerable uncertainty and difficulties for the implementation of the Union’s 
budget, for all UK beneficiaries and in some cases also for beneficiaries of the other Member 
States.  In  line  with  the  Commission’s  overall  approach,  this  proposal  is  a  contingency 
measure in response to this situation. 

After withdrawal, the UK will no longer be member of the European Union; the Treaties and 
the secondary legislation will not be applicable to the United Kingdom. The United Kingdom 
or  entities  established  in  the  United  Kingdom  will  cease  to  be  eligible  to  receive  funding 
under those Union programmes, unless relevant provisions for participation of third countries 
are included in the legal acts of EU spending programmes.  

The purpose of this proposal is to avoid, or at least minimise, any unnecessary disruption for 
beneficiaries  of  EU  spending  programmes  and  other  actions  at  the  time  of  withdrawal,  also 
with the expectation that this will facilitate a financial settlement between the Union and the 
United Kingdom. 

The proposed contingency framework provides for the possibility to maintain the eligibility to 
benefit  from Union financing  for the UK and  UK entities under legal  commitments entered 
into  before  the  withdrawal  date  beyond  that  date  and  for  a  limited  time  period  (until  31 
December  2019).  This  is  subject  to  the  condition  that  the  UK  makes  a  written  commitment 
and continues to contribute to the financing of the budget for 2019 under the terms set in this 
proposal.  In  addition,  the  UK  should  commit  in  writing  to  accept  the  controls  and  audits 

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which cover the entire implementation period of the programmes or the actions. Under these 
conditions, the financial interests of the Union will be protected. 

The UK and UK entities, as well as entities from the other Member States whose eligibility is 
affected  by  the  UK  withdrawal,  would  continue  benefiting  from  the  Union  financing  under 
the conditions of this proposal. This would mitigate the disruptive effect of the withdrawal on 
existing agreements and decisions.   It  would allow for an orderly budget  implementation  of 
legal  commitments  with  the  UK  and  UK  entities  signed  or  adopted  before  the  date  of 
withdrawal.  

Furthermore, as the UK would finance the whole budget 2019, and in line with the objective 
of implementing fully the multiannual financial framework 2014-2020 decided while the UK 
was  a  member  of  the  Union,  the  UK  and  UK  entities  would  be  eligible  in  2019  for  the 
purposes  of  conditions  set  in  any  calls,  tenders,  contests  or  any  other  procedure  which  may 
lead to financing from the Union's budget. This would not apply in case there are restrictions 
in relation to security and to actions involving the European Investment Bank or the European 
Investment Fund. 

The  proposed  contingency  framework  would  also  allow  financing  of  actions  in  which 
Member States and Member States' entities are beneficiaries where the eligibility depends on 
the  United  Kingdom  being  a  Member  State,  provided  that  these  specific  actions  are 
implemented under legal commitments signed or adopted before the date of withdrawal. 

This eligibility of the UK and UK entities would only start applying after the conditions laid 
down in this proposal have been fulfilled, including that the UK has made its first payment to 
the EU budget for the period after its withdrawal.  The contingency framework providing for 
the  eligibility  of  UK  and  UK  entities  would  cease  to  apply  if  the  UK  discontinues  the 
payments  or  where  significant  deficiencies  have  been  observed  in  the  execution  of  the 
controls and audits. 

The  proposal  is  without  prejudice  to  negotiating  an  agreement  with  the  UK  on  a  financial 
settlement covering the entirety of mutual obligations. If no agreement is reached in 2019, the 
situation at the beginning of 2020 will be equivalent to the one at the withdrawal date for the 
mutual  commitments  undertaken  by  the  Union  and  the  United  Kingdom.  In  any  event  the 
Union  and  the  United  Kingdom  would  need  to  honour  their  respective  obligations  resulting 
from the whole period of the United Kingdom membership in the Union. 

• 

Consistency with existing policy provisions in the policy area 

This  proposal  aims  at  minimising  the  negative  impact  of  the  withdrawal  of  the  United 
Kingdom for the Union budget and for the implementation of the policies of the Union.  

• 

Consistency with other Union policies 

This  proposal  is  fully  consistent  with  the  Council  mandate  for  the  negotiations  with  the 
United Kingdom on its withdrawal from the Union. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

Article  352  TFEU  and  Article  203  of  the  Euratom  Treaty  allow  the  Union  to  adopt 
appropriate measures if actions by the Union should prove necessary, within the framework of 

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the policies, to attain one of the objectives set out in the Treaties, and the Treaties have not 
provided  the  necessary  powers.  The  proposed  Regulation  constitutes  a  measure  allowing 
transition  following  the  withdrawal  of  a  Member  State  with  regard  to  financing  and 
implementation  of  actions  from  the  Union  budget  in  a  situation  in  which  no  agreement  has 
been concluded with that State. Such measure is necessary in order to implement the Union’s 
budget  of  the  current  financial  year  (2019),  allow  to  receive  the  payments  from  the 
withdrawing  Member  State,  as  well  as  provide  a  solution  for  the  ongoing  actions  financed 
from the Union’s budget for the United Kingdom and United Kingdom’s beneficiaries and for 
new  actions  justified  by  the  contribution  of  the  United  Kingdom  to  the  budget  2019.  The 
Treaties  do  not  provide  for  the  necessary  powers  for  the  Union  to  adopt  such  transitory 
measures  and  therefore  Article  352  TFEU  and  Article  203  of  the  Euratom  Treaty  are  the 
appropriate legal basis.  

• 

Subsidiarity (for non-exclusive competence)  

The  Union  budgetary  authority  has  adopted  the  Union’s  budget  2019  to  finance  the  actions 
and  spending  programmes  under  the  MFF  2014-2020  as  they  were  adopted  by  the  Union 
legislator. The objectives of the proposed action can thus  only be  achieved by  a measure at 
Union level. 

• 

Proportionality 

The proposal does not exceed what is necessary to achieve the objectives of the measure, as it 
is  limited  to  determining  the  conditions  required  for  the  establishment  of  eligibility  of  the 
United Kingdom and United Kingdom's entities, and is limited in time. 

• 

Choice of the instrument 

Given the need for a binding act which would be directly applicable proposing a regulation is 
the only adequate form. 

3. 

• 

N/A 

• 

RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER 
CONSULTATIONS AND IMPACT ASSESSMENTS 

Ex-post evaluations/fitness checks of existing legislation 

Stakeholder consultations 

It was not to possible to carry out a stakeholder consultation due to the urgency for preparing 
the proposal so that it can be adopted on time by the Council after obtaining the consent of the 
European Parliament before the European elections.  

• 

Impact assessment 

Due to the nature of the proposed measure, no impact assessment was carried out, in line with 
the  Better  Regulation  Guidelines.  There  are  no  other  materially  different  policy  options 
available. The envisaged contingency framework would facilitate the smooth implementation 
of  the  budget  2019  and  a  possible  future  agreement  with  the  United  Kingdom  on  the 
respective obligations resulting from the whole period of the UK membership in the Union. 

4. 

BUDGETARY IMPLICATIONS 

In  a  no-deal  scenario  this  proposal  would  restore  the  eligibility  of  the  United  Kingdom  and 
United  Kingdom  beneficiaries  as  long  as  the  United  Kingdom  continues  paying  its 

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contribution  set  in  the  budget  for  2019.  Therefore  there  are  no  budgetary  implications  in 
comparison with the 2019 budget  as adopted by the European Parlement in December 2018. 

The UK written commitment to accept the necessary controls and audits would be a condition 
for the application of the contingency framework. 

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2019/0031 (APP) 

Proposal for a 

COUNCIL REGULATION 

on measures concerning the implementation and financing of the general budget of the 
Union in 2019 in relation to the withdrawal of the United Kingdom from the Union 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 352 thereof, 

Having  regard  to  the  Treaty  establishing  the  European  Atomic  Energy  Community,  and  in 
particular Article 203 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 consent of the European Parliament2, 

Acting in accordance with a special legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

On 29 March 2017, the United Kingdom submitted the notification of its intention to 
withdraw from the Union pursuant to Article 50 of the Treaty on European Union. In 
the absence of a withdrawal agreement with the United Kingdom and of the extension 
of the two-year period referred to in Article 50(3) of the Treaty on European Union, 
the Treaties have ceased to apply to and in the United Kingdom on 30 March 2019. A 
financial settlement with regard to the financial obligations following from the United 
Kingdom’s  membership  in  the  Union  therefore  needs  to  be  agreed  in  a  future 
international agreement between the United Kingdom and the Union. 

It is therefore necessary to lay down rules on the relations between the Union on the 
one  hand,  and  the  United  Kingdom  and  its  beneficiaries  on  the  other  as  regards  the 
financing  and  implementation  of  the  general  budget  of  the  Union  (‘the  budget’)  in 
2019.   

The Treaties do not provide powers other than those under Article 352 of the Treaty 
on the Functioning of the European Union and Article 203 of the Treaty establishing 
the European Atomic Energy Community for the adoption of the measures concerning 
the implementation and financing of the budget in 2019 in relation to the withdrawal 
of the United Kingdom from the Union. 

The  United  Kingdom  and  persons  and  entities  established  in  United  Kingdom  are 
participating in a number of Union programmes or actions on the basis of the United 
Kingdom’s  membership  in  the  Union.  The  participation  takes  place  on  the  basis  of 
agreements with the United Kingdom or persons or entities established in the United 
Kingdom or decisions in favour of United Kingdom or persons or entities established 
in the United Kingdom which constitute legal commitments.   

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(5) 

(6) 

(7) 

(8) 

(9) 

For many of those agreements and decisions, the rules governing the eligibility require 
the  beneficiary  to  be  a  Member  State  or  a  person  or  entity  established  in  a  Member 
State. The eligibility of the United Kingdom  or persons or entities  established in  the 
United Kingdom is in such cases linked to the United Kingdom being a Member State. 
The  withdrawal  of  the  United  Kingdom  from  the  Union  therefore  entails  the  loss  of 
eligibility of such recipients  of Union financing  under the agreements and decisions. 
However,  this  does  not  concern  cases  where  persons  or  entities  established  in  the 
United Kingdom would participate in an action as and under the conditions applicable 
under the respective Union rules for persons and entities established in a third country.  

It  would  be  beneficial  both  for  the  Union  and  its  Member  States  and  for  the  United 
Kingdom and persons and entities established in the United Kingdom to implement the 
budget for 2019 as it has been adopted for that year. It would also be beneficial if the 
legal commitments signed and adopted before the date of withdrawal could continue to 
be executed.  

It  is  therefore  appropriate  to  lay  down  conditions  under  which  the  United  Kingdom 
and  persons  and  entities  established  in  the  United  Kingdom  could  continue  to  be 
eligible  in  2019  with  regard  to  the  agreements  signed  with  them  and  the  decisions 
adopted with regard to them until the date on which the Treaties cease to apply to and 
in  the  United  Kingdom  ("date  of  withdrawal").  The  conditions  would  be  that  the 
United  Kingdom  has  confirmed  the  commitment  in  writing  to  the  Commission  to 
continue  to  pay  a  contribution  to  the  budget  in  2019  calculated  on  the  basis  of  the 
estimated own resources from the United Kingdom in the approved budget for 2019, 
that  a  first  instalment  has  been  paid  by  the  United  Kingdom  and  that  the  United 
Kingdom has confirmed the commitment in writing to the Commission to allow audits 
and controls in full by the Union in compliance with the applicable rules. In view of 
the  need  for  certainty  it  is  appropriate  to  limit  the  time  for  the  fulfilment  of  the 
conditions.  The  Commission  should  adopt  a  decision  on  the  fulfilment  of  the 
conditions. 

As  long  as  the  conditions  for  eligibility  of  the  United  Kingdom  and  persons  and 
entities  established  in  the  United  Kingdom  under  this  Regulation  continue  to  be 
fulfilled,  it  is  also  appropriate  to  provide  for  their  eligibility  for  the  purposes  of 
conditions  set  in  calls,  tenders,  contests  or  any  other  procedure  which  may  lead  to 
financing  from  the  Union's  budget,  with  the  exception  of  specific  cases  related  to 
security  and  to  the  loss  of  membership  of  the  United  Kingdom  in  the  European 
Investment Bank, and to provide Union funding to them.  

It is also appropriate to provide that the eligibility of the United Kingdom and persons 
and  entities  established  in  the  United  Kingdom  would  continue  under  the  condition 
that  United  Kingdom  continues  the  payments  to  the  Union  budget  2019  and  that 
controls  and  audits  can  be  carried  out  effectively.  Where  these  conditions  are  no 
longer  fulfilled,  the  Commission  should  take  a  decision  establishing  such  failure.  In 
such  a  case,  the  United  Kingdom  and  persons  and  entities  established  in  the  United 
Kingdom should cease to be eligible for Union financing. 

(10) 

It is also appropriate to provide for the continuation of eligibility of actions in which 
Member States or persons or entities established in the Member States receive Union 
funds  and  which  are  related  to  the  United  Kingdom  in  2019.  However,  the  potential 
non-acceptance  by  the  United  Kingdom  of  controls  and  audits  should  constitute  an 
element  to  be  taken  into  account  for  the  purposes  of  sound  financial  management 
when assessing the implementation of such actions. 

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(11)  Since the objectives of this Regulation cannot be sufficiently achieved by the Member 
States  but  can  rather  be  better  achieved  at  Union  level  as  they  concern  the  Union 
budget and programmes and actions implemented by the Union, 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 those objectives. 

(12) 

In order to allow for a limited flexibility, the power to adopt  acts in accordance with 
Article  290  TFEU  should  be  delegated  to  the  Commission  in  respect  of  a  possible 
extension of the deadlines set in Article 2(1) (a), (b) and (c), and amendments to the 
payment schedule for the months after August 2019. It is of particular importance that 
the  Commission  carry  out  appropriate  consultations  during  its  preparatory  work, 
including at expert level, and that those consultations be conducted in accordance with 
the principles laid down in the Interinstitutional Agreement on Better Law-Making of 
13  April  2016.  In  particular,  to  ensure  equal  participation  in  the  preparation  of 
delegated acts, the European Parliament and the Council receive all documents at the 
same time as Member States' experts, and their experts systematically  have access to 
meetings of Commission expert groups dealing with the preparation of delegated acts. 
Where,  in  the  case  of  a  risk  of  a  serious  disruption  of  the  implementation  and 
financing of the Union budget in 2019, imperative grounds of urgency so require, the 
delegated  act  should  enter  into  force  without  delay  and  should  apply  as  long  as  no 
objection is expressed by the European Parliament or the Council.  

(13)  This Regulation should enter into force as a matter of urgency and should apply from 
the  day  following  that  on  which  the  Treaties  ceased  to  apply  to  and  in  the  United 
Kingdom. Given that at the date of withdrawal an adopted budget of the Union, which 
provides  for  the  participation  of  the  United  Kingdom  in  its  financing,  covers  only 
2019, it should only apply to the eligibility for the year 2019.  

HAS ADOPTED THIS REGULATION: 

Article 1 
Subject matter and scope 

This  Regulation  lays  down  rules  on  the  implementation  and  the  financing  of  the 
general budget of the Union (‘the budget’) in 2019 in relation to the withdrawal of 
the United Kingdom from the Union and on actions under direct, indirect and shared 
management  for  which  the  eligibility  is  fulfilled  through  the  membership  of  the 
United Kingdom in the Union at the date on which the Treaties cease to apply to and 
in the United Kingdom ("date of withdrawal").  

This Regulation applies without prejudice to the territorial cooperation programmes 
covered by Regulation (EU) 2019/… of the European Parliament and of the Council3  
and  to  the  learning  mobility  activities  under  the  Erasmus+  programme  covered  by 
Regulation 2019/… of the European Parliament and of the Council4. 

Regulation (EU) 2019/… of the European Parliament and of the Council of … in order to allow for the 
continuation  of  the  territorial  cooperation  programmes  PEACE  IV  (Ireland-United  Kingdom)  and 
United  Kingdom-Ireland  (Ireland-Northern  Ireland-Scotland)in  the  context  of  the  withdrawal  of  the 
United Kingdom from the European Union. 
Regulation (EU) 2019/… of the European Parliament and of the Council of … laying down provisions 
for  the  continuation  of  ongoing  learning  mobility  activities  under  the  Erasmus+  programme  in  the 

1. 

2. 

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Article 2  
Conditions for eligibility  

1. 

Where the United Kingdom or a person or entity established in the United Kingdom 
receive  Union  funds  under  an  action  carried  out  in  direct,  indirect  or  shared 
management  pursuant  to  legal  commitments  signed  or  adopted  before  the  date  of 
withdrawal  and  eligibility  under  that  action  depends  on  the  membership  of  the 
United Kingdom  in  the  Union, they shall continue to  be eligible in  2019 following 
the date of withdrawal if the following conditions are met:  

(a) 

(b) 

the United Kingdom has confirmed at the latest on 18 April 2019 in writing to 
the  Commission  that  it  will  continue  to  contribute  to  the  budget  in  2019  the 
amount  displayed  in  the  line  "United  Kingdom"  and  column  “Total  Own 
Resource”  of  table  7  of  part  “A.  Introduction  and  financing  of  the  general 
budget  of  the  Union”  of  the  revenue  part  of  the  budget  for  2019  set  out  in 
Definitive  adoption  (EU,  Euratom)  2019/…  of  the  European  Union’s  general 
budget  for  the  financial  year  20195,  reduced  by  the  amount  of  own  resources 
made  available  by  the  United  Kingdom  in  respect  of  the  financial  year  2019 
before  the  date  of  withdrawal,  in  accordance  with  the  payment  schedule  laid 
down in this Regulation; 

the  United  Kingdom  has  paid  at  the  latest  on  30  April  2019  on  the  account 
determined  by  the  Commission  the  first  payment  which  corresponds  to  the 
instalment referred to in the second subparagraph of this paragraph multiplied 
by the result of the following: the number of full months between the date of 
withdrawal  and  the  end  of  the  year  2019  reduced  by  the  number  of  months 
between the month of the first payment, exclusive that month, and the end of 
the year 2019; 

(c) 

the  United  Kingdom  has  confirmed  at  the  latest  on  18  April  2019  the 
commitment  in  writing  to  the  Commission  that  it  will  continue  to  accept  the 
controls  and  audits  which  cover  the  entire  period  of  the  programmes  and 
actions in accordance with the applicable rules; 

(d) 

the  Commission  has  adopted  the  decision  referred  to  in  paragraph  2  that  the 
conditions referred to in point (a), (b) and (c) have been fulfilled.  

The amount referred to in point (a) of the first subparagraph shall be broken down 
into equal instalments. The number of instalments shall correspond to the number 
of full months between the date of withdrawal and the end of the year 2019. The 
payments  of the amount referred to  in  point (a)  of the first  subparagraph amount 
shall constitute other revenue of the Union's budget.  

The commitment referred to in point (c) of the first subparagraph shall include in 
particular the cooperation in the protection of the financial interests of the Union 
and the acceptance of the rights of the Commission, the Court of Auditors and the 
European  Anti-Fraud  Office  to  access  data  and  documents  relating  to  Union 
contributions, and perform controls and audits.  

The  Commission  shall  adopt  a  decision  on  whether  the  conditions  laid  down  in 
points (a), (b) and (c) of paragraph 1 have been fulfilled.  

context  of  the  withdrawal  of  the  United  Kingdom  of  Great  Britain  and  Northern  Ireland  ("United 
Kingdom") from the European Union. 
OJ … 

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3. 

The Commission is empowered to adopt delegated acts in accordance with Article 7 
concerning the extension of the deadlines set in points (a), (b) and (c) of paragraph 1.  

Where, in the case of a risk of serious disruption of the implementation and financing 
of  the  Union  budget  in  2019,  imperative  grounds  of  urgency  so  require,  the 
procedure provided for in Article 8 shall apply to delegated acts adopted pursuant to 
this paragraph. 

Article 3 
Continuation of eligibility of United Kingdom and of persons and entities established in the 
United Kingdom 

1. 

The eligibility of United Kingdom and persons and entities established in the United 
Kingdom established in accordance with Article 2 shall continue in the year 2019 as 
long as the following conditions are fulfilled:  

(a) 

(b) 

the United Kingdom has, following the first payment made in accordance with 
Article  2(1)(b),  paid  on  the  account  determined  by  the  Commission  the 
monthly  instalment  referred  to  in  the  second  subparagraph  of  paragraph  1  of 
Article 2 on the first working day of each month until August 2019; 

the United Kingdom has paid on the account determined by the Commission on 
the  first  working  day  of  September  2019  the  remaining  monthly  instalments 
referred to in the second subparagraph of paragraph 1 of Article 2, unless the 
Commission  communicates  to  the  United  Kingdom  a  different  payment 
schedule for this payment by 31 August 2019; 

(c)  no significant deficiencies have been observed in the execution of the controls 

and audits referred to in Article 2(1)(c). 

Where one or more of the conditions referred to in paragraph 1 are not fulfilled the 
Commission shall adopt a decision to that effect. That decision shall be published in 
the Official Journal of the European Union. 

As of the date of entry into force of the decision referred to in the first subparagraph 
of this paragraph, paragraph 1 of this Article, Article 2, Article 4 and Article 5 shall 
cease to apply.  

The Commission is empowered to adopt delegated acts in accordance with Article 7 
concerning a different payment schedule for the payment referred to in point (b) of 
paragraph 1.  

Where,  in  the  case  of  a  risk  of  a  serious  disruption  of  the  implementation  and 
financing of the Union budget in 2019, imperative grounds of urgency so require, the 
procedure provided for in Article 8 shall apply to delegated acts adopted pursuant to 
this paragraph. 

2. 

3. 

Article 4 
Participation in calls 

As of the date of the entry into force of the decision referred to in Article 2(1)(d), and unless a 
decision as referred to in Article 3(2) has entered into force, the United Kingdom or persons 
and entities established in the United Kingdom shall be eligible in 2019 for the purposes of 
conditions  set  in  any  calls,  tenders,  contests  or  any  other  procedure  which  may  lead  to 
financing  from  the  Union's  budget  to  the  same  extent  as  Member  States  and  persons  or 
entities established in the Member States, and be eligible for Union funding.  

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The first paragraph shall not apply where the participation is limited to the Member States and 
persons or entities established in the Member States for security reasons, and to any actions 
that involve the participation of the European  Investment  Bank  or the European  Investment 
Fund. 

Article 5 
Other necessary adaptations  

If the conditions laid down in Article 2(1) are fulfilled, and unless a decision as referred to in 
Article 3(2) has entered into force, for the purpose of application of any rules governing the 
actions carried out under the legal commitments referred to in Article 2(1), the calls referred 
to  in  Article  4  and  the  actions  carried  out  under  the  legal  commitments  signed  or  adopted 
following the calls referred to in Article 4, which are necessary to give effect to Articles 2(1) 
and 4(1), the United Kingdom shall be treated as a Member State, subject to the provisions of 
this Regulation.  

However,  the  United  Kingdom  or  United  Kingdom  representatives  shall  not  be  allowed  to 
participate in any committee assisting in the management under the rules of the basic act, or 
expert  groups  or  other  bodies  advising  on  the  programmes  or  on  the  actions,  with  the 
exception of monitoring or similar committees specific for the particular operational, national 
or similar programmes in shared management.  

Article 6 
Eligibility of actions that relate to the United Kingdom, where the Member States or 
persons or entities established in the Member States receive the Union funds 

Actions under direct, indirect and shared management for which the Member States 
or  persons  or  entities  established  in  the  Member  States  receive  Union  funds  under 
legal  commitments  signed  or  adopted  before  the  date  of  withdrawal  and  for  which 
the  eligibility  is  fulfilled  through  the  membership  of  the  United  Kingdom  in  the 
Union at the date of withdrawal shall be eligible in 2019 as of the date of withdrawal.  

Actions  for  which  the  eligibility  condition  of  a  minimum  number  of  participants 
from  different  Member  States in  a consortium is  fulfilled at  the date of  withdrawal 
through  a  member  of  the  consortium  which  is  a  person  or  entity  established  in  the 
United Kingdom,  shall be eligible in  2019 where the conditions  of Article 2(1)  are 
fulfilled. 

The  non-fulfilment  of  the  condition  referred  to  in  Article  2(1)(c)  or  a  Commission 
decision  as  referred  to  in  Article  3(2)  concerning  the  non-fulfilment  of  conditions 
referred  to  in  Article  3(1)(c),  shall  be  taken  into  account  by  the  responsible 
authorising officer for the purposes of assessment of a possible serious deficiency in 
complying with the main obligations in the implementation of the legal commitment 
referred to in paragraph 1.  

Article 7 
Exercise of the delegation  

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  subject  to  the 
conditions laid down in this Article. 

The power to adopt delegated acts referred to in Articles 2 and 3 shall be conferred 
on the Commission for an indeterminate period of time from date of entry into force 
of this Regulation. 

1. 

2. 

1. 

2. 

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3. 

4. 

5. 

6. 

1. 

2. 

The delegation of power referred to in Articles 2 and 3 may be revoked at any time 
by the European Parliament or by the Council. A decision to revoke shall put an end 
to the delegation of the power specified in that decision. It shall take effect the day 
following  the  publication  of  the  decision  in  the  Official  Journal  of  the  European 
Union  or  at  a  later  date  specified  therein.  It  shall  not  affect  the  validity  of  any 
delegated acts already in force. 

Before adopting a delegated act, the Commission shall consult experts designated by 
each  Member  State 
the 
in  accordance  with 
Interinstitutional Agreement on Better Law-Making of 13 April 2016. 

the  principles 

laid  down 

in 

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

A delegated act adopted pursuant to Articles 2 and 3 shall enter into force only if no 
objection  has  been  expressed  either  by  the  European  Parliament  or  by  the  Council 
within a period of one month 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 one month at the initiative of the European Parliament or 
of the Council. 

Article 8  
Urgency procedure   

Delegated  acts  adopted  under  this  Article  shall  enter  into  force  without  delay  and 
shall apply as long as no objection is expressed in accordance with paragraph 2. The 
notification  of  a  delegated  act  to  the  European  Parliament  and  to  the  Council  shall 
state the reasons for the use of the urgency procedure. 

Either  the  European  Parliament  or  the  Council  may  object  to  a  delegated  act  in 
accordance  with  the  procedure  referred  to  in  Article  7(6).  In  such  a  case,  the 
Commission  shall  repeal  the  act  immediately  following  the  notification  of  the 
decision to object by the European Parliament or by the Council. 

Article 9 
Entry into force and application 

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

It shall apply from the date following that on which the Treaties cease to apply to and in the 
United Kingdom pursuant to Article 50(3) of the Treaty on European Union.  

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

Done at Brussels, 

For the Council 

The President 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

1.1. 

1.2. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

Title of the proposal/initiative 

Policy area(s) concerned  

Proposal  for a Council Regulation  on measures  concerning the implementation  and 
financing from the Union budget in 2019 in relation to the withdrawal of the United 
Kingdom from the European Union. 

1.3. 

Grounds for the proposal/initiative  

1.3.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

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

It shall apply from the date following that on which the Treaties cease to apply to and 
in the United Kingdom pursuant to Article 50(3) of the Treaty on European Union. 

This Regulation shall not apply if a withdrawal agreement concluded with the United 
Kingdom  in  accordance  with  Article  50(2)  of  the  Treaty  on  European  Union  has 
entered into force by that date. 

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

N/A 

1.3.3.  Lessons learned from similar experiences in the past 

N/A 

1.3.4.  Compatibility  with  the  Multiannual  Financial  Framework  and  possible  synergies 

with other appropriate instruments 

This Regulation is compatible with the MFF. It has no financial impact. 

1.3.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 

This Regulation has no financial impact. The Union contribution to the programmes 
will  be  financed  via  the  general  budget  of  the  Union  provided  that  the  United 
Kingdom  provides  the  resources  foreseen  in  the  budget  2019  as  adopted  by  the 
European Parliament in December 2018. 

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1.4. 

Duration and financial impact of the proposal/initiative 

–  X no financial impact 
1.5.  Management mode(s) planned6  

X Direct management by the Commission 

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

–  X  by the executive agencies  

X Shared management with the Member States  

X Indirect management by entrusting budget implementation tasks to: 

–  X third countries or the bodies they have designated; 

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

–  X the EIB and the European Investment Fund; 

–  X bodies referred to in Articles 70 and 71 of the Financial Regulation; 

–  X public law bodies; 

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

they provide adequate financial guarantees; 

–  X 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; 

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

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

– 

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

Comments  

N/A

6 

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 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

N/A 

2.2.  Management and control system(s)  

2.2.1. 

Justification of the management mode(s), the funding implementation mechanism(s), 
the payment modalities and the control strategy proposed 

N/A 

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

N/A 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio of "control 
costs ÷ value of the related funds managed"), and assessment of the expected levels 
of risk of error (at payment & at closure)  

N/A 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy. 

N/A

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3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

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

  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Heading of 
multiannual 
financial 
framework 

Number  

Budget line 

Type of  
expenditure 

Contribution  

Diff./Non-
diff.7 

from 
EFTA 
countries8 

from 
candidate 
countries9 

from third 
countries 

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

All 

All  programmes  of 
financial framework 

the  Multi-annual 

Diff/Non 
diff 

3.2. 

Estimated financial impact of the proposal on appropriations  

3.2.1. 

Summary of estimated impact on operational appropriations  

–  X  This Regulation has no financial impact.   

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

7 
8 
9 

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 

15 

EN 

 
 
 
 
 
 
 
 
 
 
       
 
 
 
 
                                                 
Heading of multiannual financial  
framework  

13 

EUR  

2019 

2020 

2021 

2022 

      2023 

Subsequent 
years 

TOTAL 

 Cancellation of operational appropriations 

TOTAL appropriations 

Commitments 

Payments 

Commitments 

Payments 

(1a) 

(2a) 

=1a+1b 
+3 

=2a+2b 

+3 

 TOTAL operational appropriations  

Commitments 

Payments 

  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

TOTAL appropriations  

Commitments 

=4+ 6 

Payments 

=5+ 6 

If more than one operational heading is affected by the proposal / initiative, repeat the section above: 

  TOTAL  operational  appropriations  (all  Commitments 

(4) 

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operational headings) 

Payments 

 TOTAL appropriations of an administrative nature financed 
from  the  envelope  for  specific  programmes  (all  operational 
headings) 

(5) 

(6) 

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

Commitments 

=4+ 6 

Payments 

=5+ 6 

EN 

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Heading of multiannual financial  
framework  

5 

‘Administrative expenditure’ 

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

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 

EUR million (to three decimal places) 

DG: <…….> 

 Human resources  
 Other administrative expenditure  

TOTAL DG <…….> 

Appropriations  

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

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

Commitments 

Payments 

Year 
N10 

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 

EUR million (to three decimal places) 

10 

EN 

Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first year of implementation (for instance: 2021). The same for the 
following years. 

18 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.2.  Estimated output funded with operational appropriations  

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

OUTPUTS 

Commitment appropriations in EUR million (to three decimal places) 

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

TOTAL 

o
N

Cost  N

o

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost  N

o

Cost  N

o

Cost 

Total 
No 

Total 
cost 

Indicate 
objectives and 
outputs  

 

Type11 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 112… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTALS 

11 
12 

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 point 1.4.2. ‘Specific objective(s)…’  

EN 

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3.2.3. 

Summary of estimated impact on administrative appropriations  

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

administrative nature  

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

nature, as explained below: 

EUR million (to three decimal places) 

Year 
N 13 

Year 
N+1 

Year 
N+2 

Year 
N+3 

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

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 514 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

TOTAL 

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

13 

14 

Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first 
year of implementation (for instance: 2021). The same for the following years. 
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 

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3.2.3.1.  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 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

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

 Establishment plan posts (officials and temporary staff) 

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

XX 01 01 02 (Delegations) 

XX 01 05 01/11/21 (Indirect research) 

10 01 05 01/11 (Direct research) 

 External staff (in Full Time Equivalent unit: FTE)15 

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

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

XX 01 04 yy 16 

- at Headquarters 

- in Delegations  

XX 01 05 02/12/22 (AC, END, INT - Indirect research) 

10 01 05 02/12 (AC, END, INT - Direct research) 

Other budget lines (specify) 

TOTAL 

XX is the policy area or budget title concerned. 

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

Description of tasks to be carried out: 

Officials and temporary staff 

External staff 

15 

16 

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

EN 

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3.2.4.  Compatibility with the current multiannual financial framework  

The proposal/initiative: 

–  X  can be fully financed twithin the relevant heading of the Multiannual Financial 

Framework (MFF). 

–    requires use of the unallocated margin under the relevant heading of the MFF 

and/or use of the special instruments as defined in the MFF Regulation. 

Explain  what  is  required,  specifying  the  headings  and  budget  lines  concerned,  the  corresponding 
amounts, and the instruments proposed to be used. 

–    requires a revision of the MFF. 

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

3.2.5.  Third-party contributions  

The proposal/initiative: 

–  X does not provide for co-financing by third parties 

–   

provides for the co-financing by third parties estimated below: 

Appropriations in EUR  

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3.3. 

Estimated impact on revenue  

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

–    The proposal/initiative has the following financial impact: 

 

X 

on own resources  

on other revenue 

please indicate, if the revenue is assigned to expenditure lines X 

     EUR  

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

N/A 

Other  remarks  (e.g.  method/formula  used  for  calculating  the  impact  on  revenue  or  any  other 
information). 

The increase of the other revenue  will correspond to  the  exact  same amount  as the 
own resources to be made available by the United Kingdom for the period after the 
withdrawal  date  in  line  with  the  budget  for  2019  as  adopted  by  the  European 
Parliament in December 2018. 

EN 

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