Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 223/2014 as regards the introduction of specific measures for addressing the COVID-19 crisis
Date: 2020-04-02
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: aid to disadvantaged groups, epidemic, fund (EU), homelessness, infectious disease, marginalisation, operational programme, poverty, social integration, socially disadvantaged class

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 2.4.2020  COM(2020) 141 final 2020/0058 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 223/2014 as regards the introduction of specific measures for addressing the COVID-19 crisis    
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The direct and indirect effects of the COVID-19 outbreak continue to increase in all Member 
States.  The  current  situation  is  unprecedented  and  requires  exceptional  measures  adapted  to 
the situation to be applied in these circumstances. 

The  first  “Coronavirus  Response  Investment  Initiative”  (CRII),  a  package  of  measures 
proposed by the Commission on 13 March 2020, introduced a number of important changes 
that allow for a more effective response in the current situation. 

This initiative was directed at promoting investments by mobilising available cash reserves in 
the  European  Structural  and  Investment  Funds  (ESI  Funds),  to  fight  the  crisis  immediately, 
followed  by  complementary  measures  as  proposed  under  the  Coronavirus  Response 
Investment Initiative Plus. Nevertheless, additional measures are necessary, including in other 
policy areas, in particular in order to protect the most vulnerable.  

The  coronavirus  crisis  also  presents  an  unprecedented  challenge  for  the  operations  and 
delivery to the most deprived supported by the Fund for European Aid to the Most Deprived 
(FEAD).  

Most  importantly,  the  crisis  presents  specific  risks  to  the  most  deprived,  among  the  most 
vulnerable in our societies. Therefore, specific measures, need to be taken urgently in order to 
protect them from falling victim to this disease and to ensure that the FEAD assistance still 
reaches  them,  such  as  by  providing  the  necessary  protective  equipment  against  the  disease. 
The distribution of food and basic material assistance, as well as social inclusion support, is 
facing increasingly logistical and human resource constraints, notably due to the confinement 
and urgent need to instate social distancing measures to contain the spread of the virus. Many 
of the volunteers, who are the backbone of the Fund, can no longer be mobilised, as they often 
belong to groups at a higher risk of severe illness caused by COVID-19. There is, nonetheless, 
the  need  to  ensure  that  the  support  is  still  reaching  the  most  deprived,  e.g.  through  new 
methods  of  delivery  which  ensure  the  safety  of  all  those  people  involved  in  the 
implementation of the FEAD and of the most deprived.  

The FEAD Regulation needs therefore to enable Managing Authorities, partner organisations 
and other actors involved in the implementation of the Fund to react quickly to the emerging 
additional needs of the target groups who are exposed to further hardship stemming from this 
crisis.  

Accordingly, the Commission proposes to amend the FEAD Regulation in order to respond to 
the challenges faced by public authorities and partner organisations in the implementation of 
the FEAD during the COVID-19 outbreak. 

In line with the amendments proposed for the ESI Funds, it is proposed to introduce specific 
provisions  which  allow  Member  States  to  quickly  put  in  place  the  necessary  measures  for 
addressing  this  emergency  situation.  Similar  to  what  was  proposed  for  the  ESI  Funds,  it  is 
proposed  that  the  expenditure  for  those  FEAD  operations  that  are  fostering  crisis  response 
capacities to the COVID-19 outbreak should be eligible as of 1 February 2020. Likewise, it is 
proposed  that  the  amendment  of  certain  elements  of  the  operational  programme  aimed  at 
addressing  the  COVID-19  outbreak,  does  not  require  approval  by  Commission  decision. 
Furthermore,  the  proposal  introduces  the  possibility  for  authorities  to  deliver  food  aid/basic 

EN 

1 

  EN 

material assistance through electronic vouchers as it reduces the risk of contamination during 
the delivery of food/basic material assistance. 

In addition to these changes, it is also proposed to introduce flexibility regarding the respect 
of certain legal requirements during this unprecedented period. Exceptionally for this year, it 
is  proposed  that  the  deadline  for  submitting  the  Annual  Implementation  Report  is  extended 
and  it  is  clarified  that  Member  States  may  adjust  control  and  audit  procedures  during  the 
outbreak. It is also proposed to introduce specific provisions regarding the eligibility of costs 
incurred  by  beneficiaries  in  case  the  delivery  of  food/basic  material  assistance  or  social 
assistance is delayed as well as for suspended and not fully implemented operations.  

Finally,  in  order  to  ensure  that  all  support  from  the  Fund  can  be  mobilised  to  minimise  the 
effects  of  the  public  health  crisis  on  the  most  deprived,  as  a  temporary  and  exceptional 
measure,  without  prejudice  to  the  rules  that  should  apply  under  regular  circumstances,  it  is 
necessary to allow for the temporary possibility of 100% co-financing from the EU budget. 

• 

Consistency with existing policy provisions in the policy area 

This proposal is consistent with existing policy provisions in the policy area, in particular with 
provisions  proposed  by  the  Commission  for  the  ESI  Funds  in  response  to  the  COVID-19 
outbreak, as part of the CRII and CRII plus. 

• 

Consistency with other Union policies 

The  proposal  is  consistent  with  other  proposals  and  initiatives  adopted  by  the  European 
Commission, in particular with the proposals adopted by the Commission for the ESI Funds in 
response to the COVID-19 outbreak. It is also part of a second legislative package adopted by 
the Commission, which includes proposals to amend the Common Provisions Regulation.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  proposal  is  based  on  Article  175(3)  of  the  Treaty  on  the  Functioning  of  the  European 
Union.  It  provides  for  a  temporary  possibility  for  a  co-financing  rate  of  100%,  as  well  as 
clarity on the eligibility of expenditure affected by the measures put in place as a response to 
the health crisis. It finally alleviates some requirements for Member States where these create 
administrative burdens that could delay implementation of measures to respond to the crisis. 
These  exceptional  changes  are  without  prejudice  to  the  rules  that  apply  under  regular 
circumstances.  

• 

Subsidiarity (for non-exclusive competence)  

The proposal complies with the subsidiarity principle.  

• 

Proportionality 

The  proposal  is  proportionate  and  does  not  include  provisions  which  are  not  necessary  to 
achieve the objectives of the Treaty. It is limited to the amendments considered necessary for 
addressing the problems faced by Member States during the COVID-19 crisis in the context 
of the implementation of the FEAD. 

• 

Choice of the instrument 

Proposed instrument: amendment of the current regulation. 

EN 

2 

  EN 

The Commission has explored the scope for manoeuvre provided by the legal framework and 
considers it necessary to propose amendments to Regulation (EU) No 223/2014. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

Given the specific circumstances of this proposal, there was no ex-post evaluation/or fitness 
checks of the existing legislation. 

• 

Stakeholder consultations 

Given  the  specific  circumstances  of  this  proposal,  there  was  no  consultation  of  external 
stakeholders. 

• 

Collection and use of expertise 

Use of external expertise has not been necessary. 

• 

Impact assessment 

Not applicable. 

• 

Regulatory fitness and simplification 

There is not an initiative within the Regulatory Fitness Programme (REFIT) 

• 

Fundamental rights 

The proposal has no consequences for the protection of fundamental rights. 

4. 

BUDGETARY IMPLICATIONS 

The  proposed  modification  does  not  imply  any  changes  in  the  Multiannual  Financial 
Framework  annual  ceilings  for  commitments  and  payments  as  per  Regulation  (EU)  No 
223/2014.  The  total  annual  breakdown  of  commitment  appropriations  for  the  Fund  for 
European Aid to the Most Deprived remains unchanged.  

The  proposal  will  facilitate  an  acceleration  of  programme  implementation  and  result  in  a 
frontloading of payment appropriations. 

The Commission will carefully monitor the impact of the proposed modification on payment 
appropriations in 2020 taking into account both the implementation of the budget and revised 
Member States forecasts. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The implementation of the measures will be monitored and reported upon in the framework of 
the general reporting mechanisms established in Regulation (EU) No 223/2014. 

Explanatory documents (for directives) 

• 

N/A 

EN 

3 

  EN 

 
2020/0058 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) No 223/2014 as regards the introduction of specific measures 
for addressing the COVID-19 crisis  

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 175(3) 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 Committee1,  
Having regard to the opinion of the Committee of the Regions2,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

Regulation  (EU)  No  223/2014  of  the  European  Parliament  and  of  the  Council3  lays 
down rules applicable to the Fund for European Aid to the Most Deprived.  

(2)  Member  States  have  been  affected  by  the  COVID-19  outbreak  in  an  unprecedented 
manner.  The  crisis  entails  higher  risks  for  the  most  vulnerable,  such  as  the  most 
deprived, notably it risks disrupting the support provided by the FEAD.  

(3) 

In order to provide for an immediate response to the impact of the crisis on the most 
deprived,  expenditure  for  operations  for  fostering  crisis  response  capacities  to  the 
COVID-19 outbreak should be eligible as of 1 February 2020. 

(4)  With  a  view  to  alleviating  the  burden  on  public  budgets  responding  to  the  crisis 
situation,  Member  States  should  be  given  the  exceptional  possibility  to  request  for  a 
co-financing  rate  of  100%  to  be  applied  for  the  accounting  year  2020-2021,  in 
accordance with budget appropriations and subject to available funding. Based on an 
assessment  of  the  application  of  this  exceptional  co-financing  rate,  the  Commission 
may propose an extension of this measure.  

(5) 

1 
2 
3 

In  order  to  ensure  that  the  most  deprived  can  continue  to  receive  assistance  by  the 
Fund  in  a  safe  environment,  it  is  necessary  to  provide  for  sufficient  flexibility  for 
Member  States  to  adjust  the  schemes  of  support  to  the  current  context,  including  by 
allowing alternative schemes of delivery through electronic vouchers and by allowing 
Member  States  to  amend  certain  elements  of  the  operational  programme  without 
requiring an adoption by Commission decision. In order not to disrupt the traditional 

OJ C , , p. . 
OJ C , , p. . 
Regulation (EU) No 223/2014 of the European Parliament and of the Council of 11 March 2014 on the 
Fund for European Aid to the Most Deprived (OJ L 72, 12.03.2014, p. 1). 

EN 

4 

  EN 

 
                                                 
(6) 

(7) 

(8) 

(9) 

delivery  schemes,  it  should  also  be  possible  to  provide  the  necessary  protective 
materials  and  equipment  to  partner  organisations  outside  the  technical  assistance 
budget. 

It is appropriate to establish specific rules for determining the eligible costs borne by 
beneficiaries in the case where certain operations are delayed, suspended or not fully 
implemented due to the COVID-19 outbreak. 

In order to enable Member States to concentrate on introducing measures to respond to 
the crisis and avoid the disruption of the delivery of support to the most deprived due 
to risks of contamination, it is appropriate to provide for specific measures that reduce 
administrative  burden  for  authorities  and  provide  flexibility  for  compliance  with 
certain legislative requirements, in particular on monitoring and on control and audit.  

As it is urgent to introduce these measures for ensuring the effective implementation 
of the FEAD during the COVID-19 crisis, this Regulation should enter into force on 
the day following that of its publication in the Official Journal of the European Union.  

In view of the COVID-19 outbreak and the urgency to  address  the associated public 
health  crisis,  it  was  considered  appropriate  to  provide  for  an  exception  to  the  eight-
week  period  referred  to  in  Article  4  of  Protocol  No  1  on  the  role  of  national 
Parliaments in the European Union, annexed to the Treaty on European Union, to the 
Treaty  on  the  Functioning  of  the  European  Union  and  to  the  Treaty  establishing  the 
European Atomic Energy Community. 

(10)  Regulation (EU) No 223/2014 should therefore be amended accordingly, 

HAVE ADOPTED THIS REGULATION: 

Regulation (EU) No 223/2014 is amended as follows: 

(1) 

In Article 9 paragraph 4 is replaced by the following: 

Article 1 

4.  Paragraphs  1,  2  and  3  do  not  apply  for  the  purposes  of  modifying  elements  of  an 
operational  programme  falling  under  sub-sections  3.5  and  3.6  and  section  4, 
respectively,  of  the  operational  programme  templates  set  out  in  Annex  I  or  the 
elements set out in point (a), (b), (c), (d), (e) and (g) of Article 7(2) in case they are 
modified due to the crisis response to the COVID-19 outbreak.  

A Member State shall notify the Commission of any decision to modify the elements 
referred to in the first subparagraph within one month of the date of that decision. The 
decision shall specify the date of its entry into force, which shall not be earlier than the 
date of its adoption.” 

(2) 

In Article 13(1) the following subparagraph is added: 

“By way of derogation from the first subparagraph, the deadline for the submission of 
the annual implementation report for the year 2019 shall be 30 September 2020.” 

(3) 

In Article 20 the following paragraph is inserted: 

“1a   By way of derogation from paragraph 1, at the request of the Member State, a 
co-financing  rate  of  100%  may  be  applied  to  the  public  expenditure  declared  in 
payment applications during the accounting year starting on 1 July 2020 and ending on 
30 June 2021.  

EN 

5 

  EN 

Requests for modification of the co-financing rate shall be made through the procedure 
for  amendment  of  operational  programmes  set  out  in  Article  9  and  shall  be 
accompanied by the revised programme. The 100% co-financing rate shall only apply 
if  the  corresponding  programme  amendment  is  approved  by  the  Commission  at  the 
latest  before  the  submission  of  the  final  application  for  an  interim  payment  in 
accordance with Article 45(2). 

Before submitting the first payment application for the accounting  year  starting on 1 
July  2021,  Member  States  shall  notify  the  table  referred  to  in  section  5.1  of  the 
operational programme templates set out in Annex I, confirming the co-financing rate 
which was applicable during the accounting year ending on 30 June 2020.” 

(4) 

In Article 22(4) the following subparagraph is inserted: 

“By  way  of  derogation  from  the  first  subparagraph,  expenditure  for  operations  for 
fostering crisis response capacity to the COVID-19 outbreak shall be eligible from 1 
February 2020.” 

(5) 

In Article 23 the following paragraph is inserted: 

“4a.   The food and/or basic material assistance may be provided directly to the most 
deprived persons or indirectly through  electronic vouchers or  cards, provided 
that they can only be redeemed against food and/or basic material assistance as 
set out in Article 2(1).” 

(6) 

In Article 26 paragraph 2 is amended as follows: 

(1)  Point (a) is replaced by the following: 

“(a)  the  cost  of  purchasing  food  and/or  basic  material  assistance  and  the  cost  of 
purchasing personal protective materials and equipment for partner organisations,” 

(2)  Point (c) is replaced by the following: 

“(c)  the  administrative,  preparation,  transport  and  storage  costs  borne  by  the  partner 
organisations at a flat-rate of 5 % of  the costs referred to in point (a); or 5 % of the 
value  of  the  food  products  disposed  of  in  accordance  with  Article  16  of  Regulation 
(EU) No 1308/2013;”  

(7) 

The following Articles 26a, 26b and 26c are inserted: 

“Article 26a  

Eligibility of expenditure for operations supported under OP I during their suspension 

due to the COVID-19 outbreak 

Delays  in  the  delivery  of  food/basic  material  assistance  due  to  the  COVID-19 
outbreak do not lead to a reduction of the eligible costs borne by the purchasing body 
or  partner  organisations  in  accordance  with  Article  26(2).  These  costs  may  be 
declared to  the Commission  in  accordance with  Article 26(2) before the  food/basic 
material  assistance  is  delivered  to  the  most  deprived  provided  that  the  delivery  is 
resumed after the COVID-19 crisis is over. 

Where  food  is  spoiled  due  to  suspension  of  delivery  as  a  result  of  the  COVID-19 
outbreak, the costs set out in point (a) of paragraph 2 of Article 26 are not reduced. 

Eligibility of expenditure for operations supported under OP II or technical assistance 

during their suspension due to the COVID-19 outbreak 

Article 26b 

EN 

6 

  EN 

 
1. 
For  operations  whose  implementation  is  suspended  due  to  the  COVID-19 
outbreak,  a  Member  State  may  consider  the  expenditure  during  the  suspension  as 
eligible  expenditure  even  if  no  services  are  delivered,  provided  the  following 
cumulative conditions are met: 

(a) 

(b) 

(c) 

the implementation of the operation is suspended after 31 January 2020; 

the suspension of the operation is due to the COVID-19 outbreak; 

the expenditure has been incurred and paid;  

the  expenditure  constitutes  a  genuine  cost  for  the  beneficiary  and  cannot  be 
(d) 
recovered or compensated; for recoveries and compensations which are not provided 
by  the  Member  State,  the  Member  State  may  accept  that  the  fulfilment  of  this 
condition  is  demonstrated  by  a  declaration  from  the  beneficiary;  recoveries  and 
compensations shall be deducted from the expenditure;  

(e) 

the expenditure is limited to the period of the suspension. 

For operations where the  beneficiary is  reimbursed on the basis of simplified 
2. 
cost  options  and  the  implementation  of  the  actions  constituting  the  basis  for 
reimbursement  is  suspended  due  to  the  COVID-19  outbreak,  the  Member  State 
concerned may reimburse the beneficiary on the basis of the outputs planned for the 
period  of  the  suspension,  even  if  no  actions  are  delivered,  provided  the  following 
cumulative conditions are met: 

(a) 

(b) 

the implementation of the actions is suspended after 31 January 2020; 

the suspension of the actions is due to the COVID-19 outbreak; 

(c) 
the  simplified  cost  options  correspond  to  a  genuine  cost  borne  by  the 
beneficiary, which shall be demonstrated by the beneficiary, and cannot be recovered 
or  compensated;  for  recoveries  and  compensations  which  are  not  provided  by  the 
Member  State,  the  Member  State  may  accept  that  there  are  no  recoveries  and 
compensations  on  the  basis  of  a  declaration  by  the  beneficiary;    recoveries  and 
compensations  shall  be  deducted  from  the  amount  corresponding  to  the  simplified 
cost option; 

(d) 

the reimbursement to the beneficiary  is limited to the period of the suspension. 

For the operations referred to in the first subparagraph, the Member State may also 
reimburse  the  beneficiary  on  the  basis  of  costs  referred  to  in  Article  25(1)(a) 
provided the conditions set out in paragraph 1 of this Article  are met. 

If  a Member State reimburses the beneficiary on  the basis of  both options, it shall 
ensure that the same expenditure is only reimbursed once. 

Article 26c 

Eligibility of expenditure for operations supported under OP II or technical assistance 
that are not fully implemented due to the COVID-19 outbreak   

1.  A  Member  State  may  consider  the  expenditure  for  operations  that  are  not  fully 
implemented due to the COVID-19 outbreak as eligible expenditure, if the following 
cumulative conditions are met: 

(a) the implementation of the operation is cancelled after 31 January 2020; 

(b) the cancellation of the operation is due to the COVID-19 outbreak; 

EN 

7 

  EN 

(c)  the  expenditure  incurred  prior  to  the  cancellation  of  the  operation  has  been 
incurred by the beneficiary and paid. 

2. For operations for which  the beneficiary is reimbursed on the basis of simplified 
cost  options,  a  Member  State  may  consider  the  expenditure  for  operations  that  are 
not fully implemented due to the COVID-19 outbreak, as eligible expenditure if the 
following cumulative conditions are met: 

(a) 

(b) 

the implementation of the operation is cancelled after 31 January 2020; 

the cancellation of the operation is due to the COVID-19 outbreak; 

the  actions  covered  by  the  simplified  cost  options  have  been  at  least  partly 

(c) 
delivered prior to the cancellation of the operation. 

For the operations referred to in the first subparagraph, the Member State may also 
reimburse  the  beneficiary  on  the  basis  of  costs  referred  to  in  Article  25(1)(a) 
provided the conditions set out in paragraph 1 of this Article are met. 

If  a  Member  State  reimburses  the  beneficiary  on  the  basis  of  both  options,  it  shall 
ensure that the same expenditure is only reimbursed once.” 

(8) 

In Article 30 the following paragraph is inserted: 

“1a.  Based  on  an  analysis  of  potential  risks,  Member  States  may  establish  lighter 
control  and  audit  trail  requirements  regarding  the  distribution  of  food/material 
assistance to the most deprived during the period of COVID-19 outbreak.” 

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 

EN 

8 

  EN 

LEGISLATIVE FINANCIAL STATEMENT 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

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

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management 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

EN 

9 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending  Regulation  (EU)  N°  223/2014  as  regards  the  introduction  of  specific 
measures for addressing the COVID-19 crisis 
Policy area(s) concerned in the ABM/ABB structure4  

1.2. 

4 Employment, social affairs and inclusion 

04 06 - Fund for European aid to the most deprived 

04 06 01 – Promoting social cohesion and alleviating the worst forms of poverty in 
the Union  

1.3. 

Nature of the proposal/initiative  

 The proposal/initiative relates to a new action  

  The  proposal/initiative 
project/preparatory action5  

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  

N/A 

1.4.2. 

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

Specific objective No 

N/A 

ABM/ABB activity(ies) concerned 

N/A 

1.4.3.  Expected result(s) and impact 

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

N/A 

1.4.4. 

Indicators of results and impact  

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

4 
5 

ABM: activity-based management; ABB: activity-based budgeting. 
As referred to in Article 54(2)(a) or (b) of the Financial Regulation. 

EN 

10 

  EN 

 
                                                 
N/A 

1.5. 

Grounds for the proposal/initiative  

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

N/A 

1.5.2.  Added value of EU involvement 

N/A 

1.5.3.  Lessons learned from similar experiences in the past 

N/A 

1.5.4.  Compatibility and possible synergy with other appropriate instruments 

N/A 

1.6. 

Duration and financial impact  

 Proposal/initiative of limited duration  

–   Proposal/initiative in effect from 01/07/2020 to 30/06/2021 

–   Financial impact in 2020 - 2024 

 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) planned6  

 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); 

–  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; 

6 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the 
BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 

EN 

11 

  EN 

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

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

– 

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

Comments  

N/A 

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

N/A 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

N/A 

2.2.2. 

Information concerning the internal control system set up 

N/A 

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

of risk of error  

N/A 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

N/A 

EN 

12 

  EN 

3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

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

Heading of 
multiannual 
financial 
framework 

1 Smart 
and 
Inclusiv
e 
Growth 

Heading of 
multiannual 
financial 
framework 

  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure 

Contribution  

Number  
[Heading………………………...……………
] 

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  

04  06  01  -  Promoting  social  cohesion 
and  alleviating  the  worst  forms  of 
poverty in the Union 

Diff. 

NO 

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/N
O 

YES/N
O 

YES/NO 

7 
8 
9 

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

EN 

13 

  EN 

 
 
 
 
 
 
 
                                                 
3.2. 

Estimated impact on expenditure  

The proposed modification does not imply any changes in the Multiannual Financial Framework annual ceilings for commitments and payments 
as per Regulation (EU) No 223/2014. The total annual breakdown of commitment appropriations for the FEAD remains unchanged 

The proposal will result in a frontloading of payment appropriations for the accounting year starting on 1 July 2020 and ending on 30 June 2021, 
as estimated below.  

3.2.1. 

Summary of estimated impact on expenditure  

EUR million in current prices (to three decimal places) 

Heading of multiannual financial  
framework  

Number 
1b 

Smart and Inclusive Growth 

DG: EMPL 

 Operational appropriations  

1b:  Economic,  social  and 
territorial cohesion 

Fund  for  European  aid  to 
the most deprived  

Commitments  

04  06  01  -  Promoting  social  cohesion 
and  alleviating  the  worst  forms  of 
poverty in the Union 

Payments  

04  06  01  -  Promoting  social  cohesion 
and  alleviating  the  worst  forms  of 
poverty in the Union 

(1) 

(2) 

Appropriations  of  an  administrative  nature  financed  from  the 
envelope of specific programmes10  

2020 

2021 

2022 

2023 

2024 

TOTAL 

41,920 

25,200 

0,000 

-33,560 

-33,560 

0,00 

N/A 

10 

EN 

(3) 

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. 

14 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
TOTAL 
appropriations 
for DG EMPL 

Commitments 

Payments 

 TOTAL operational appropriations  

Commitments 

Payments 

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

=1+1a 
+3 

=2+2a 

+3 

(4) 

(5) 

(6) 

41,920 

25,200 

0,000 

-33,560 

-33,560 

0,00 

41,920 

25,200 

0,000 

-33,560 

-33,560 

0,00 

TOTAL appropriations  
under HEADING 1b 
of the multiannual financial framework 

Commitments 

=4+ 6 

Payments 

=5+ 6 

41,920 

25,200 

0,000 

-33,560 

-33,560 

0,00 

If more than one heading is affected by the proposal / initiative: 

 TOTAL operational appropriations  

Commitments 

Payments 

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

(4) 

(5) 

(6) 

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

Commitments 

=4+ 6 

Payments 

=5+ 6 

0 

0 

EN 

15 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading of multiannual financial  
framework  

5 

‘Administrative expenditure’ 

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 

2020 

2021 

2022 

2023 

2024 

TOTAL 

EUR million (to three decimal places) 

41,920 

25,200 

0,000 

-33,560 

-33,560 

0,00 

EN 

16 

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: 

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 

TOTAL COST 

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 

17 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
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 
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. 
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 

18 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
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 
N 

Year 
N+1 

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) 

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)15 

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

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

XX 01 04 yy 16 

- 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 

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; 
JED= Junior Experts in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

EN 

19 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
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. 

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 

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/initiative17 

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. 

17 

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 

20 

  EN