Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 1303/2013 and Regulation (EU) No 223/2014 as regards Cohesion’s Action for Refugees in Europe (CARE)
Date: 2022-03-08
Institutions: Directorate-General for Regional and Urban Policy, European Commission
Subjects: Ukraine, additional resources, allocation of resources, coronavirus disease, distribution of EU funding, economic and social cohesion, economic recovery, epidemic, humanitarian aid, war

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   EUROPEAN COMMISSION  Brussels, 8.3.2022  COM(2022) 109 final 2022/0075 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 1303/2013 and Regulation (EU) No 223/2014 as regards  Cohesion’s Action for Refugees in Europe (CARE)  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

This  proposal  provides  for  exceptional  and  targeted  changes  to  the  overall  2014-2020  legal 
framework established for the European Structural and Investment Funds and for the Fund for 
the  European  Aid  to  the  Most  Deprived  (FEAD)  in  response  to,  firstly,  the  invasion  of 
Ukraine  by  the  Russian  Federation  and  the  resultant  impact  on  the  European  Union  and 
several of its eastern regions in particular; and secondly, the extended impact of the COVID-
19 pandemic on the EU as a whole. 

Firstly, as a result of the unprovoked and unjustified military aggression by Russia, the EU, 
and  several  of  its  eastern  regions  in  particular,  are  faced  with  some  immediate  migratory 
challenges,  notably  as  regards  flows  of  third  country  nationals.  It  is  therefore  important  to 
clarify the range of support that can be provided to Member States and regions to enable them 
to address this extraordinary situation and to prevent their on-going work to build a resilient 
recovery from the COVID-19 pandemic being put at risk. 

In  this  context,  it  is  important  to  recall  that  Member  States  and  regions  are  already  able  to 
support measures to address migration challenges under the European Regional Development 
Fund  (‘ERDF’)  and  the  European  Social  Fund  (‘ESF’)  including  under  the  additional 
resources made available as Recovery Assistance for Cohesion and the Territories of Europe 
(‘REACT-EU’). Such support can include investments in infrastructure, equipment, products, 
access  to  services  and  operations  in  the  areas  of  education,  employment,  social  inclusion, 
health,  administrative  capacity,  community-based  and  home-care  services  and  anti-
discrimination as well as support for reception systems complementing the support from the 
AMIF and other funding sources. It is also important to recall that the FEAD may be used to 
provide food and basic material assistance also to those affected by the military aggression by 
Russia including third country nationals. 

While the additional REACT-EU resources already benefit from a number of implementation 
flexibilities, some of those flexibilities do not apply to the ERDF and ESF resources from the 
2014-2020  multiannual  financial  framework.  In  addition,  it  is  also  appropriate  to  set  out 
specific measures for the FEAD, in particular taking into account the urgent need to provide 
basic  material  assistance  to  those  persons  affected  by  the  military  aggression  by  Russia. 
Taking into account the urgency to address the migratory challenges as a result of the military 
aggression  of  Russia,  it  is  therefore  necessary  to  allow  for  retroactive  eligibility  to  the  start 
date  of  that  aggression  for  concerned  operations.  Furthermore,  flexibility  in  the  support 
between ERDF and ESF should be increased for such operations so that available funding in 
programmes may be used quickly. Moreover, in order to ensure that the FEAD can be swiftly 
used  to  provide  basic  material  assistance  to  affected  persons,  including  third  country 
nationals, it is appropriate to allow Member States to amend certain elements of programmes 
supported by the FEAD without requiring approval by the Commission. 

Secondly,  the  duration  of  the  COVID-19  pandemic  has  been  longer  than  could  have  been 
expected  in  2020.  The  direct  and  indirect  impacts  of  the  pandemic  persist  in  all  Member 
States,  requiring  prolonged  public  support  for  the  recovery  of  the  most  impacted  territorial 
areas  and  economic  sectors.  This  has  led  to  very  high  pressure  on  the  budgets  of  Member 
States, thus requiring further exceptional measures to be applied in these circumstances. 

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The two packages of measures under the Coronavirus Response Investment  Initiative (CRII) 
and CRII+ approved by Regulations (EU) 2020/460 and (EU) 2020/558 respectively in spring 
2020 introduced a number of significant changes that enabled a more effective response and 
provided exceptional additional flexibility to respond to the unprecedented situation. Taking 
into  account  the  specific  risks  faced  by  the  most  deprived  due  to  the  pandemic,  the  second 
package  also  included  amendments  to  Regulation  (EU)  No  223/2014  (FEAD  Regulation), 
through Regulation (EU) 2020/559, introducing specific measures of additional flexibility and 
liquidity for Member States to address the COVID-19 pandemic under the Fund for European 
Aid to the Most Deprived (FEAD). 

Furthermore, substantial  additional resources  were made available  from NextGeneration EU 
for  cohesion  policy,  as  REACT-EU,  to  provide  assistance  for  fostering  crisis  repair  in  the 
context  of  the  COVID-19  pandemic  and  its  social  consequences  and  for  preparing  a  green, 
digital and resilient recovery of the economy. These additional resources can also be used by 
Member States to increase the allocation for programmes supported by the FEAD. 

The introduced flexibilities and additional resources, including EUR 50 billion of fresh money 
under  REACT-EU,  and  EUR  23 billion  of  retargeted  funding  under  CRII  and  CRII+,  have 
had a major positive impact. In particular, some EUR 8 billion has been re-allocated towards 
urgent  investment  in  personal  protective  equipment,  ventilators  and  ambulances.  More  than 
EUR 12 billion has been targeted at providing emergency grants and low-interest rate loans to 
small businesses, enabling them to stay afloat. Nevertheless, the duration of the pandemic and 
its effects on the EU economy, people, notably the most deprived, and society at large have 
exceeded initial expectations. In particular, the high pressure on the budgets of Member States 
has  reduced  the  resources  available  to  ensure  the  necessary  national  co-financing  for  the 
programmes concerned. 

The  emergence  of  new  variants  of  the  virus  in  the  course  of  2021,  notably  the  Omicron 
variant  in  the  later  part  of  the  year,  and  the  accompanying  widespread  tightening  of 
restrictions  in  the  last  quarter  of  2021  further  exacerbated  the  negative  effects  on  Member 
States’ economies. 

Moreover, Member States are facing additional pressure on their budgets as they take sizeable 
fiscal  measures  to  address  the recent  spike in  energy prices  by mitigating the impact  on the 
most  vulnerable,  on  smaller  businesses  and  on  energy  intensive  industries.  The  economic 
impact of the invasion of Ukraine is also not yet clear and could have significant  downside 
effects on the post-COVID-19 recovery of the economies of Member States.   

Consequently, support from the Funds should be mobilised speedily to alleviate the burden on 
national  budgets.  It  is  therefore  necessary,  as  a  temporary  and  exceptional  measure  and 
without prejudice to the rules that should apply under regular circumstances, to extend to the 
ongoing accounting year 2021-2022 the temporary possibility of 100% co-financing from the 
EU budget for the implementation of cohesion policy programmes and programmes supported 
by the FEAD.  

• 

Consistency with existing policy provisions in the policy area 

The  proposal  is  consistent  with  the  overall  legal  framework  established  for  the  European 
Structural and Investment Funds and for the Fund for the European Aid to the Most Deprived 
and is limited to targeted and exceptional amendments of Regulation (EU) No 1303/2013 and 
Regulation (EU) No 223/2014. The proposal also complements the preceding amendments to 
these  regulations  under  Regulations  (EU)  2020/460,  (EU)  2020/558,  (EU)  2020/559,  (EU) 

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2021/177 and (EU) 2020/2221 as well as all other measures aimed at addressing the current 
unprecedented situation. 

• 

Consistency with other Union policies 

The  proposal  is  limited  to  targeted  and  exceptional  amendments  of  Regulations  (EU)  No 
1303/2013 and (EU) No 223/2014 and maintains consistency with other Union policies. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  proposal  is  based  on  Articles  175(3)  and  177  of  the  Treaty  on  the  Functioning  of  the 
European Union.  

It facilitates the use of cohesion policy and FEAD resources to support measures to address 
migratory  challenges  as  a  result  of  the  military  aggression  by  Russia  and  provides  for  the 
possibility of a co-financing rate of 100% for the ERDF, the ESF, the Cohesion Fund and the 
FEAD for the accounting year 2021-2022.  

• 

Subsidiarity (for non-exclusive competence)  

The  proposal  aims  to  facilitate  the  use  of  cohesion  policy  and  FEAD  resources  by  Member 
States  and  regions  to  support  measures  to  address  migratory  challenges  as  a  result  of  the 
military aggression by Russia and allow for a derogation from the normal co-financing rules 
currently  applicable  in  order  to  allow  for  the  necessary  flexibility  to  mobilise  existing 
investment  resources  to  address  the  direct  and  indirect  effects  stemming  from  the 
unprecedented public health crisis in the context of the COVID-19 pandemic.  

• 

Proportionality 

The  proposal  is  an  exceptional  and  targeted  change  not  going  beyond  what  is  necessary  to 
achieve the objective of facilitating the use of cohesion policy and FEAD resources to support 
measures to address migratory challenges as a result of the military aggression by Russia and 
providing  the  possibility  of  100%  co-financing  to  mobilise  investments  in  response  to  the 
widespread public health crises affecting the growth of regions and enterprises and the well-
being of the general public and to avoid that the support to the most deprived is disrupted. 

• 

Choice of the instrument 

A Regulation is the appropriate instrument to facilitate the use of cohesion policy and FEAD 
resources  to  support  measures  to  address  migratory  challenges  as  a  result  of  the  military 
aggression  by  Russia  and  to  extend  the  possibility  of  100%  co-financing  needed  to  address 
these unprecedented circumstances. 

RESULTS OF EX-POST EVALU ATIONS, 
CONSULTATIONS AND IMPACT ASSESSMENTS 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

3. 

• 

N/A 

• 

Stakeholder consultations 

The  proposal  follows  high  level  exchanges  with  other  institutions  and  Member  States.  A 
public consultation is not required given that there is no need for an impact assessment. 

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• 

N/A 

• 

Collection and use of expertise 

Impact assessment 

An impact assessment has been carried out to prepare the proposals for Regulations (EU) No 
1303/2013  and  (EU)  No  223/2014.  These  current  targeted  changes  to  respond  to  critical 
situations do not require a separate impact assessment. 

Regulatory fitness and simplification 

Fundamental rights 

• 

N/A 

• 

N/A 

4. 

BUDGETARY IMPLICATIONS 

The  proposal  only  concerns  cohesion  policy  and  FEAD  programmes  from  the  2014-2020 
period and does not modify existing budgetary commitments. It will facilitate an acceleration 
of  programme  implementation  and  is  expected  to  result  in  a  frontloading  of  payment 
appropriations to 2022 and 2023, balanced by a reduced payment need for later years. 

The proposed modification does not require changes in the Multiannual Financial Framework 
annual  ceilings  for  commitments  and  payments  as  per  Annex  I  to  Council  Regulation  (EU, 
Euratom) 2020/2093, and does not imply changes to the overall payment needs over the 2021-
2027 period.  

Based  on  the  previous  uptake  of  the  100%  co-financing  rate  in  the  2020-2021  accounting 
year,  the  level  of  payment  applications  submitted  in  the  second  half  of  2021,  and  the  latest 
Member  State  payment  forecasts  for  2022,  the  budgetary  impact  of  the  application  of  the 
100%  co-financing  rate  for  the  2021-2022  accounting  year  is  estimated  to  represent  a 
frontloading  of  payment  needs  of  EUR  9 billion  to  2022  and  EUR  1 billion  to  2023, 
compensated by a corrresponding reduction of EUR 10 billion in 2024. 

However, in order to be able to comply with the payment ceilings in years 2022 and 2023, it 
is  proposed  to  cap  the  total  additional  payments  resulting  from  the  application  of  the  100% 
co-financing rate at EUR 5 billion in 2022 and EUR 1 billion in 2023. The additional amounts 
will only be paid  after all the the payment applications are received for the accounting  year 
2021-2022.  Where  necessary,  the  additional  payments  resulting  from  the  application  of  the 
100%  co-financing  rate  will  be  made  on  a  pro  rata  basis  to  ensure  equal  treatment  of  all 
concerned programmes. Payments that cannot be made as a result of the application of these 
ceilings  should  be  paid  by  the  Commission  at  the  earliest  opportunity  subject  to  the 
availability  of  funding,  either  with  the  acceptance  of  the  accounts  or  through  subsequent 
payments. 

The Commission will carefully monitor the impact of the proposed modification on payment 
appropriations  in  2022  and  2023,  taking  into  account  the  overall  implementation  of  the 
budget, revised Member State forecasts, as well as any possible emerging needs or priorities. 
Any  possible  impact  from  increased  uncertainty  linked  to  the  security  outlook  will  also  be 
taken into account. 

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5. 

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OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The implementation of the measures will be monitored and reported upon in the framework of 
the  general  reporting  mechanisms  established  in  Regulations  (EU)  No  1303/2013  and  (EU) 
No 223/2014. 

Explanatory documents (for directives) 

• 

N/A 

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Detailed explanation of the specific provisions of the proposal 

It is proposed to amend Regulation (EU) No 1303/2013 and Regulation (EU) No 223/2014 in 
order to:  

 

 

 

 

ensure that Member States  and regions  may continue to  benefit from  a 100% 
EU  co-financing  rate  for  the  accounting  year  2021-2022  and  this  by  way  of 
notification to the Commission (amendment of Article 25a of Regulation (EU) 
No 1303/2013 and Article 20 of Regulation (EU) No 223/2014); 

introduce  arrangements  for  the  budgetary  execution  of  additional  payments 
resulting from the application of the 100% co-financing rate to take account of 
annual  ceilings  for  payments  (amendment  of  Article  25a  of  Regulation  (EU) 
No 1303/2013);  

introduce  additional  flexibility  between  ERDF  and  ESF  specifically  for 
operations  addressing  the  migratory  challenges  as  a  result  of  the  military 
aggression  by  Russia  and  introduce  simplified  reporting  arrangements  on 
participants (amendment of Article 98 of Regulation (EU) No 1303/2013), with 
a  retroactive  start  date  of  eligibility  of  support  set  at  24  February  2022 
(amendment of Article 65(10) of Regulation (EU) No 1303/2013); 

introduce flexibility for Member States to amend programmes supported by the 
FEAD  and  this  by  way  of  notification  to  the  Commission  (amendment  of 
Article  9  of  Regulation  (EU)  No  223/2014)  and  also  with  a  retroactive  start 
date of eligibility of support set at 24 February 2022 (amendment to Article 22 
of Regulation (EU) No 223/2014). 

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2022/0075 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) No 1303/2013 and Regulation (EU) No 223/2014 as regards  
Cohesion’s Action for Refugees in Europe (CARE) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 175(3) and 177 thereof,  

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee1,  
Having regard to the opinion of the Committee of the Regions2, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

The  recent  military  aggression  of  Russia  against  Ukraine  and  the  ongoing  armed 
conflict has fundamentally changed the security situation in Europe. As a result of the 
aggression,  the  European  Union,  and  its  eastern  regions  in  particular,  is  facing  a 
substantial  inflow  of  persons.  This  poses  an  additional  challenge  at  a  time  when 
Member  States’  economies  are  still  recovering  from  the  impact  of  the  COVID-19 
pandemic.  

(2)  Member States can already finance a broad range of investments under their cohesion 
policy  programmes  to  address  migration  challenges  under  the  European  Regional 
Development Fund (‘ERDF’) and the European Social Fund (‘ESF’) including under 
the additional resources made available as Recovery Assistance for Cohesion and the 
Territories of Europe (‘REACT-EU’) to provide assistance for fostering crisis repair in 
the context of the COVID-19 pandemic and its social consequences and for preparing 
a green, digital and resilient recovery of the economy. Actions may cover investments 
in the areas of social inclusion, health, education, employment, housing and childcare, 
including through investments in infrastructure, regeneration of deprived urban areas, 
actions to reduce spatial and educational isolation of migrants, business start-ups and 
others.  Member  States  may  redirect  remaining  resources  within  their  programmes  to 
address such challenges. In addition, the Fund for European Aid to the Most Deprived 
(‘FEAD’)  may  also  be  used  to  provide  food  and  basic  material  assistance  also  to 
persons  affected  by  the  military  aggression  by  Russia  including  third  country 
nationals. 

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

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(3)  While the additional resources made available under REACT-EU already benefit from 
a  number  of  implementation  flexibilities,  it  is  necessary  to  make  the  use  of  ERDF, 
ESF and FEAD resources from the 2014-2020 multiannual financial framework more 
flexible.  Taking  into  account  the  urgency  to  address  the  migratory  challenges  as  a 
result of the military aggression against Ukraine by Russia, expenditure for operations 
addressing those  challenges should be eligible from  the start  date of that aggression. 
Furthermore,  flexibility  in  how  the  ERDF  and  the  ESF  can  be  used  should  be 
increased  for  such  operations  so  that  available  funding  in  programmes  may  be  used 
quickly, provided the operation is in line with the operational programme as amended 
where  necessary.  This  flexibility  should  be  additional  to  the  possibilities  for  the 
complementary  financing  of  operations  already  provided  for.  Simplified  reporting 
arrangements on participants in those operations should also be introduced.  

(4) 

(5) 

(6) 

(7) 

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In order to ensure that affected persons may benefit from assistance under the FEAD 
without delay, it is also appropriate to allow Member States to amend certain elements 
of operational programmes supported by this Fund without requiring the adoption of a 
Commission decision. 

The  support  provided  under  cohesion  policy  should  be  complementary  notably  to 
actions  financed  under  the  Asylum,  Migration  and  Integration  Fund  (‘AMIF’)  to 
maximise the impact of available funding.  

It  should  be  recalled  that  Member  States  have  been  affected  by  the  consequences  of 
the  COVID-19  pandemic  in  an  unprecedented  manner.  The  overall  impact  of  the 
pandemic put very high pressure on the budgets of Member States  due to the sudden 
and significant increase in public investments needed in their health care systems and 
other sectors of their economies.  It also risked disrupting the support provided to the 
most deprived. This has created an exceptional situation which needed to be addressed 
with specific measures.  
In order to respond to the impact of the crisis, Regulations (EU) No 1301/20133 and 
(EU) No 1303/20134 of the European Parliament and of the Council were amended by 
Regulation  (EU)  2020/460  of  the  European  Parliament  and  of  the  Council5  to  allow 
more  flexibility  in  the  implementation  of  programmes  supported  by  the  ERDF,  the 
ESF and the Cohesion Fund (the 'Funds') and by the European Maritime and Fisheries 
Fund.  However,  as  the  serious  negative  effects  on  Union  economies  and  societies 
worsened, both Regulations were amended again by Regulation (EU) 2020/558 of the 

Regulation (EU) No 1301/2013 of the European Parliament and of the Council of 17 December 2013 on 
the  European  Regional  Development  Fund  and  on  specific  provisions  concerning  the  Investment  for 
growth and jobs goal and repealing Regulation (EC) No 1080/2006 (OJ L 347, 20.12.2013, p. 289). 
Regulation (EU) No 1303/2013 of the European Parliament and of the  Council of 17 December 2013 
laying  down  common  provisions  on  the  European  Regional  Development  Fund,  the  European  Social 
Fund,  the  Cohesion  Fund,  the  European  Agricultural  Fund  for  Rural  Development  and  the  European 
Maritime  and  Fisheries  Fund  and  laying  down  general  provisions  on  the  European  Regional 
Development  Fund,  the  European  Social  Fund,  the  Cohesion  Fund  and  the  European  Maritime  and 
Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (OJ L 347, 20.12.2013, p. 320). 
Regulation (EU) 2020/460 of the European Parliament and of the Council of 30 March 2020  amending 
Regulations  (EU)  No  1301/2013,  (EU)  No  1303/2013  and  (EU)  No  508/2014  as  regards  specific 
measures  to  mobilise investments in the healthcare  systems of  Member States and in other sectors of 
their  economies  in  response  to  the  COVID-19  outbreak  (Coronavirus  Response  Investment  Initiative) 
(OJ L 99, 31.3.2020, p. 5).  

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European Parliament and of the Council6. In addition, in order to respond to the impact 
of  the  crisis  on  the  most  deprived,  Regulation  (EU)  No  223/2014  of  the  European 
Parliament and of the Council7 was also amended by Regulation (EU) 2020/559 of the 
European Parliament and of the Council8 to introduce specific measures for the FEAD 
for  addressing  the  outbreak  of  COVID-19.  Those  amendments  have  provided 
exceptional  additional  flexibility  to  enable  the  Member  States  to  concentrate  on  the 
necessary response to the unprecedented crisis by enhancing the possibility to mobilise 
non-utilised  support  from  the  Funds  and  by  simplifying  procedural  requirements 
linked  to  programme  implementation  to  address  the  need  for  a  rapid  response  to  the 
public  health  crisis.  A  subsequent  amendment  of  Regulation  (EU)  No  1303/2013, 
introduced  by  Regulation  (EU)  2020/2221  of  the  European  Parliament  and  the 
Council9, made available substantial  additional  resources as Recovery Assistance for 
Cohesion  and  the  Territories  of  Europe  (‘REACT-EU’)  to  provide  assistance  for 
fostering  crisis  repair  in  the  context  of  the  COVID-19  pandemic  and  its  social 
consequences and for preparing a green, digital and resilient recovery of the economy. 
As  part  of  the  same  package,  Regulation  (EU)  No  223/2014  was  also  amended  by 
Regulation (EU) 2021/177 of the European Parliament and the Council10, in order to 
allow  the  mobilisation  of  these  additional  resources  by  Member  States  to  the  most 
deprived in the context of the implementation of the FEAD. 

(8)  While  the  flexibilities  and  additional  resources  provided  for  in  respect  of  the  2014-
2020 period have helped Member States in their crisis response and recovery efforts, 
the emergence of new coronavirus variants, notably the Omicron variant, as well as the 
widespread  tightening  of  restrictions  in  the  last  quarter  of  2021  continued  to  have 
serious negative  effects  on Member States’  economies  and societies and  hampered  a 
normal implementation of cohesion policy programmes and of programmes supported 
by  the  FEAD.  The  recent  military  aggression  by  Russia  and  the  resulting  migratory 
flows have exacerbated these effects and risk further undermining the recovery of the 
economy.  In  line  with  the  possibility  referred  to  in  Regulation  (EU)  2020/558,  it  is 
necessary  therefore  to  provide  for  an  exceptional  extension  of  one  of  the  measures 
introduced earlier, namely the option of the application of a co-financing rate of 100% 
for the accounting year 2020-2021 to the following accounting year.  

(9)  With  a  view  to  alleviating  the  burden  on  public  budgets  responding  to  the  crisis 
situation,  accelerating  programme  implementation  and  enabling  needed  investments 

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Regulation (EU) 2020/558 of the European Parliament and of the Council of 23 April 2020 amending 
Regulations  (EU)  No  1301/2013  and  (EU)  No  1303/2013  as  regards  specific  measures  to  provide 
exceptional flexibility for the use of the European Structural and Investments Funds in response to the 
COVID-19 outbreak (OJ L 130, 24.4.2020, p. 1). 
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, 12.3.2014, p. 1).  
Regulation  (EU)  No  2020/559  of  the  European  Parliament  and  of  the  Council  of  23  April  2021 
amending Regulation (EU) No 223/2014 as regards the introduction of specific measures for addressing 
the outbreak of COVID-19 (OJ L 130, 24.4.2020, p. 7).  
Regulation (EU) No 2020/2221 of the European Parliament and of the  Council of 23 December 2020 
amending  Regulation  (EU)  No  1303/2013  as  regards  additional  resources  and  implementing 
arrangements to provide assistance for fostering crisis repair in the context of the COVID-19 pandemic 
and  its  social  consequences  and  for  preparing  a  green,  digital  and  resilient  recovery  of  the  economy 
(REACT-EU) (OJ L 437, 28.12.2020, p. 30). 
Regulation  (EU)  2021/177  of  the  European  Parliament  and  of  the  Council  of  10  February  2021 
amending Regulation (EU) No 223/2014 as regards the introduction of specific measures for addressing 
the crisis associated with the outbreak of COVID-19 (OJ L 53, 16.2.2021, p. 1). 

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(10) 

for the recovery of regions, Member States should therefore be given the exceptional 
possibility  to  apply  a  co-financing  rate  of  100%  in  a  programme  supported  by  the 
ERDF, the ESF, the Cohesion Fund or FEAD also for the accounting year 2021-2022. 

 In  order  to  comply  with  the  multiannual  financial  framework  payment  ceilings  for 
2022 and 2023, a ceiling should be established for those years for payments resulting 
from  the  application  of  the  100%  co-financing  rate  under  the  ERDF,  the  Cohesion 
Fund or the ESF. Payments that cannot be made as a result of the application of these 
ceilings  should  be  paid  by  the  Commission  at  the  earliest  opportunity  subject  to  the 
availability  of  funding,  either  with  the  acceptance  of  the  accounts  or  through 
subsequent  payments.  Such  deferred  payments  should  not  affect  the  acceptance  of 
accounts or bear any other effect. 

(11)  Taking  into  account  that  the  application  of  the  100%  co-financing  will  not 
substantially  affect  the  content  of  the  operational  programmes  themselves,  it  is 
appropriate  to  allow  its  rapid  implementation  without  the  need  for  a  Commission 
decision  approving  the  Member  States’  amendment  to  the  financial  tables  of  the 
operational  programme.  The  Member  State  should  nevertheless  notify  the  revised 
financial  tables  prior  to  the  submission  of  the  final  payment  application  for  the 
accounting  year.  Potential  consequential  amendments,  including  to  the  values  of 
indicators, may be made as part of a subsequent programme amendment after the end 
of the accounting year.  

(12)  Since the objectives of this Regulation, namely to introduce flexibility measures in the 
field  of  providing  support  from  the  Funds,  cannot  be  sufficiently  achieved  by  the 
Member  States  alone  and  can  therefore,  by  reason  of  the  scale  and  effects  of  the 
proposed action, be better achieved at Union level, the Union may adopt measures, in 
accordance  with  the  principle  of  subsidiarity  as  set  out  in  Article  5  of  the  Treaty  on 
European Union. In accordance with the principle of proportionality, as set out in that 
Article,  this  Regulation  does  not  go  beyond  what  is  necessary  to  achieve  those 
objectives. 

(13)  Regulation (EU) No 1303/2013 and Regulation (EU) No 223/2014 should therefore be 

amended accordingly. 

(14)  Given the need to allow Member States to amend their programmes in time to benefit 
from the application of the 100% co-financing rate for the accounting year 2021-2022, 
it is appropriate that this Regulation enters into force on the day following that of its 
publication in the Official Journal of the European Union. 

(15) 

In  view  of  the  urgency  to  address  the  migratory  challenges  as  a  result  of  the  recent 
military  aggression  by  Russia  and  the  continued  public  health  crisis  stemming  from 
the COVID-19 pandemic, it is considered necessary to use the 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, 

HAVE ADOPTED THIS REGULATION: 

Article 1 

Amendment to Regulation (EU) No 1303/2013 

Regulation (EU) No 1303/2013 is amended as follows: 

EN 

9 

  EN 

(1) 

In Article 25a, the following paragraph 1a is inserted: 

“1a.  By way of derogation from Article 60(1) and the first and fourth subparagraphs 
of  Article  120(3),  a  co-financing  rate  of  100%  may  be  applied  to  expenditure 
declared  in  payment  applications  for  the  accounting  year  starting  1  July  2021  and 
ending 30 June 2022 for one or more priority axes in a programme supported by the 
ERDF, the ESF or the Cohesion Fund. 

By way of derogation from Article 30(1) and (2) and Article 96(10), the application 
of the co-financing rate of 100% shall not require a Commission decision approving 
a programme amendment. The Member State shall notify the revised financial tables 
to  the  Commission  following  approval  by  the  monitoring  committee.  The  co-
financing  rate  of  100%  shall  apply  only  if  the  financial  tables  are  notified  to  the 
Commission  before  the  submission  of  the  final  application  for  an  interim  payment 
for the accounting year starting 1 July 2021 and ending 30 June 2022 in accordance 
with Article 135(2). 

The  total  additional  payments  resulting  from  the  application  of  the  100%  co-
financing rate shall not exceed EUR 5 billion in 2022 and EUR 1 billion in 2023. 

The  Commission  shall  make  interim  payments  by  applying  the  co-financing  rate 
applicable  to  the  priority  axes  concerned  before  the  notification  referred  to  in  the 
second  subparagraph.  By  way  of  derogation  from  Article  135(5),  the  Commission 
shall  pay  the  additional  amounts  resulting  from  the  application  of  the  100%  co-
financing rate following receipt of all final applications for interim payment for the 
accounting  year  2021-2022,  where  necessary  on  a  pro-rata  basis  to  respect  the 
ceilings set out in the third subparagraph.   

By  way  of  derogation  from  Article  139(7),  remaining  amounts  resulting  from  the 
application  of  the  100%  co-financing  rate,  which  cannot  be  paid  following  the 
acceptance of the accounts to respect the ceilings set out in the third subparagraph, 
shall be paid in 2024 or later.”. 

(2) 

In paragraph 10 of Article 65, the following subparagraph is added:  

“By way of derogation from paragraph 9, expenditure for operations  addressing the 
migratory challenges as a result of the military aggression by Russia shall be eligible 
as of 24 February 2022.”. 

(3) 

In Article 98, the following paragraph 4 is added: 

“4.  Operations  addressing  the  migratory  challenges  as  a  result  of  the  military 
aggression by Russia may be financed either by the ERDF or the ESF on the basis of 
the rules applicable to the other Fund.  

In such cases, these operations shall be programmed under a dedicated priority axis 
of that other Fund contributing to its corresponding investment priorities. 

Where  data  on  participants  is  required  to  be  reported  for  operations  under  the 
dedicated  priority  axis  referred  to  in  the  second  subparagraph,  that  data  shall  be 
based  on  informed  estimates  and  shall  be  limited  to  the  total  number  of  supported 
persons and the number of children under 18 years old. 

This  paragraph  shall  not  apply  to  programmes  under  the  European  territorial 
cooperation goal.”.  

EN 

10 

  EN 

Article 2 

Amendment to Regulation (EU) No 223/2014 

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

(1) 

In Article 9(4), the following subparagraph is added: 

“The first and second subparagraphs shall also apply for the purposes of modifying 
elements of an operational programme addressing migratory challenges as a result of 
the military aggression by Russia.”. 

(2) 

In Article 20, the following paragraph 1b is inserted: 

“1b.  By way of derogation from paragraph 1, a co-financing rate of 100% may be 
applied  to  expenditure  declared  in  payment  applications  for  the  accounting  year 
starting 1 July 2021 and ending 30 June 2022. 

By  way  of  derogation  from  Article  9(1),  (2)  and  (3),  the  application  of  the  co-
financing  rate  of  100%  shall  not  require  a  Commission  decision  approving  a 
programme amendment. The Member State shall notify the revised financial tables, 
referred to in Section 5.1 of the operational programme templates set out in Annex I, 
to the Commission. The co-financing rate of 100% shall apply only if the financial 
tables are notified to the Commission before the submission of the final application 
for  an  interim  payment  for  the  accounting  year  starting  1  July  2021  and  ending 
30 June 2022 in accordance with Article 45(2).” 

(3) 

In Article 22(4), the following subparagraph is added: 

“By  way  of  derogation  from  the  first  subparagraph,  expenditure  for  operations 
addressing migratory challenges as a result of the military aggression by Russia shall 
be eligible from 24 February 2022.”. 

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

Article 3 

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 

11 

  EN 

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 

Heading of 
multiannual 
financial 
framework 

Number  

Type of  
expenditure 

Diff./Non-
diff.11 

Contribution  

from 
EFTA 
countries
12 

from 
candidate 
countries13 

from third 
countries 

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

05.02.99.01  Completion  of  the  European 
Regional Development Fund (ERDF) 

05.03.99.01  Completion  of  the  Cohesion 
Fund (CF) 

07.02.99.01  Completion  of  the  European 
Social Fund (ESF)  

07.02.99.04  Completion  of  the  Fund  for 
European  Aid  to  the  Most  Deprived 
(FEAD) 

2a 
Economic, 
social and 
territorial 
cohesion 

Diff. 

NO 

NO 

NO 

NO 

11 
12 
13 

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 

12 

  EN 

 
 
 
 
                                                 
Estimated financial impact of the proposal on appropriations  

Summary of estimated impact on operational appropriations  

The proposed modification does not imply any changes in the Multiannual Financial Framework annual ceilings for commitments as per Annex I 
to Regulation (EU) No 1311/2013, nor to the overall payment needs over the 2021-2027 period. 

The  total  annual  breakdown  of  commitment  appropriations  for  the  European  Regional  Development  Fund,  the  European  Social  Fund  and  the 
Cohesion Fund remains unchanged.  

The proposal is expected to result in a frontloading of payment appropriations for the accounting year starting on 1 July 2021 and ending on 30 
June 2022, as estimated below. 

The proposal/initiative does not require the use of appropriations of an administrative nature. 

EUR million (to three decimal places) 

Heading of multiannual financial  
framework  

Number  2a 

DG: Regional and Urban Policy and DG 
Employment, Social Affairs and Inclusion 

 Operational appropriations  

05.02.99.01 Completion of the European 
Regional Development Fund (ERDF) 

05.03.99.01 Completion of the Cohesion Fund 
(CF) 

07.02.99.01  Completion  of 
Social Fund (ESF)  

the  European 

07.02.99.04  Completion  of  the  Fund  for 
European Aid to the Most Deprived (FEAD) 

2021 

2022 

2023 

2024 

2025 

TOTAL 

Commitments 

(1a) 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Payments 

(2a) 

0.000 

5.000 

1.000 

-6.000 

0.000 

0.000 

EN 

13 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
Budget line 

Commitments 

Payments 

(1b) 

(2b) 

Appropriations  of  an  administrative  nature  financed  from  the 
envelope of specific programmes14  

Budget line 

TOTAL appropriations 
for DG Regional and Urban Policy and 
DG Employment, Social Affairs and 
Inclusion 

Commitments 

Payments 

 TOTAL operational appropriations  

Commitments 

Payments 

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

(3) 

=1a+1b 
+3 

=2a+2b 

+3 

(4) 

(5) 

(6) 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

5.000 

1.000 

-6.000 

0.000 

0.000 

TOTAL appropriations  
under HEADING 2a 
of the multiannual financial framework 

Commitments 

=4+ 6 

0.000 

0.000 

0.000 

0.000 

0.000 

Payments 

=5+ 6 

0.000 

5.000 

1.000 

-6.000 

0.000 

0.000 

0.000 

14 

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 

14 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Heading of multiannual financial  
framework  

7 

‘Administrative expenditure’ 

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

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 7 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

TOTAL appropriations  
under HEADINGS 1 to 7 
of the multiannual financial framework  

Commitments 

0.000 

0.000 

0.000 

0.000 

0.000 

Payments 

0.000 

5.000 

1.000 

-6.000 

0.000 

2021 

2022 

2023 

2024 

2025 

EUR million (to three decimal places) 

TOTAL 

0.000 

0.000 

Estimated output funded with operational appropriations  

The proposal/initiative requires the use of existing operational appropriations (no changes): 

EN 

15 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost 

o
N

Cost 

Total 
No 

Total 
cost 

Indicate 
objectives and 
outputs  

 

Type
15 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 116… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTALS 

15 
16 

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 

16 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Summary of estimated impact on administrative appropriations  

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

administrative nature  

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

nature, as explained below: 

EUR million (to three decimal places) 

Year 
17
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

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

TOTAL 

HEADING 7 
of the multiannual 
financial framework 

Human resources  

Other administrative 
expenditure  

Subtotal HEADING 7 
of the multiannual 
financial framework  

Outside HEADING 7
of the multiannual 
financial framework  

18 

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 7 
of the multiannual 
financial framework  

TOTAL 

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

17 

18 

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 

17 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Estimated requirements of human resources  

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

 The proposal/initiative requires the use of human resources, as explained below: 

– 

Estimate to be expressed in full time equivalent units 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

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

 Establishment plan posts (officials and temporary staff) 

–  20 01 02 01 (Headquarters and Commission’s Representation 
Offices) 

–  20 01 02 03 (Delegations) 

–  01 01 01 01  (Indirect research) 

– 

 01 01 01 11 (Direct research) 

–  Other budget lines (specify) 

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

19

– 

– 

–  20 02 01 (AC, END, INT from the ‘global envelope’) 

–  20 02 03 (AC, AL, END, INT and JPD in the delegations) 

–  XX 01  xx yy zz  

20

– 

–  - at Headquarters 
– 

–  - in Delegations  

– 

– 

–  01 01 01 02 (AC, END, INT - Indirect research) 

– 

 01 01 01 12 (AC, END, INT - Direct research) 

–  Other budget lines (specify) 

–  TOTAL 

XX is the policy area or budget title concerned. 

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

Description of tasks to be carried out: 

Officials and temporary staff 

External staff 

19 

20 

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 

18 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Compatibility with the current multiannual financial framework  

The proposal/initiative is compatible the current multiannual financial framework. 

The proposal/initiative: 

 can  be  fully  financed  through  redeployment  within  the  relevant  heading  of  the 

Multiannual Financial Framework (MFF). 

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding amounts. 
Please provide an excel table in the case of major reprogramming. 

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

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

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

 requires a revision of the MFF. 

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

Third-party contributions  

The proposal/initiative: 

X  does not provide for co-financing by third parties 

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

Appropriations in EUR million (to three decimal places) 

Year 
N21 

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  

21 

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. 

EN 

19 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Estimated impact on revenue  

X  The proposal/initiative has no financial impact on revenue. 

 The proposal/initiative has the following financial impact: 

  on own resources  

  on other revenue 

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

Appropriations 
available for 
the current 
financial year 

Budget revenue line: 

Article …………. 

     EUR million (to three decimal places) 

Impact of the proposal/initiative22 

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

[…] 

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

[…] 

22 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 20 % for collection costs. 

EN 

20 

  EN