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 increased pre-financing from REACT-EU resources
Date: 2022-03-23
Institutions: Directorate-General for Regional and Urban Policy, European Commission
Subjects: Ukraine, additional resources, aid to refugees, coronavirus disease, distribution of EU funding, economic and social cohesion, economic recovery, epidemic, fund (EU), operational programme, war

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   EUROPEAN COMMISSION  Brussels, 23.3.2022  COM(2022) 145 final 2022/0096 (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 increased pre-financing from REACT-EU resources   
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

This  proposal  provides  for  exceptional  and  targeted  changes  to  the  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 the invasion of Ukraine by the 
Russian  Federation  and  the  subsequent  impact  on  the  European  Union  and  several  of  its 
eastern regions in particular. 

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  immediate  challenges,  notably  as 
regards  third  country  nationals  fleeing  Ukraine  following  the  invasion  of  the  country  by 
Russia.  

The  Commission  has  already  taken  action  to  assist  Member  States  in  this  regard,  via  its 
Cohesion’s Action for Refugees in Europe (CARE) initiative of 8 March 2022. This proposed 
a number of surgical amendments to Regulations (EU) No 1303/2013 and (EU) No 223/2014 
in  order  to  make  it  easier  for  Member  States  to  use  their  remaining  European  Regional 
Development Fund (‘ERDF’), European Social Fund (‘ESF’) and FEAD allocations under the 
2014-2020  multiannual  financial  framework,  as  well  as  resources  stemming  from  the 
Recovery  Assistance  for  Cohesion  and  the  Territories  of  Europe  (‘REACT-EU’),  in  a  more 
flexible  manner,  in  particular  by  enabling  the  ERDF  and  the  ESF  to  fund  actions  eligible 
under  the  other  Fund,  to  address  the  migratory  challenges  as  effectively  and  as  rapidly  as 
possible,  and  by  introducing  the  possibility  of  100%  EU  co-financing  for  an  additional 
accounting year in order to alleviate the burden on national budgets.  

Notwithstanding  the  flexibilities  offered  by  the  CARE  package  of  measures,  it  is  clear  that 
Member  States  are  facing  immediate  additional  budgetary  pressures  stemming  from  the 
management  of  massive  arrivals  of  persons  fleeing  Ukraine.  Member  States  sharing  a  land 
border  with  Ukraine  are  particularly  impacted,  having  to  provide  support  such  as  housing, 
social  and  transport  services,  while  several  other  Member  States  are  also  coping  with 
significantly  high  numbers  of  arrivals  compared  to  the  size  of  their  own  population,  as 
countries  of  final  destination.  This  additional  shock  further  undermines  the  capacity  of 
Member States to build a resilient recovery from the COVID-19 pandemic.   

Consequently, support from the Funds should be mobilised quickly 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 increase the 
amount of pre-financing that is paid out under REACT-EU, for all Member States. A higher 
share of these increased pre-financing resources should be allocated to those Member States 
which  are  confronted  with  the  largest  arrivals  of  persons  fleeing  Ukraine,  either  as  transit 
countries  or  as  countries  of  final  destination.  As  the  number  of  people  fleeing  the  war  is 
increasing by the hour and Member States are currently in the process of registering people, 
the situation is very dynamic. To create a situational picture approximating the pressure with 
which Member States are being confronted due to the large scale of arrivals, the Commission 
calculated the share of arrivals relative to the population based on information from Member 
States obtained through the Blueprint Network, international organisations, and other reliable 
open sources. 

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In order to have a light level of reporting from Member States with regard to this additional 
pre-financing, reporting on how it has been used to alleviate the situation of persons fleeing 
Ukraine and its contribution to the recovery of the economy should only be made in the final 
implementation reports of the operational programmes concerned.   

• 

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  FEAD  and  is  limited  to  targeted  and  exceptional 
amendments  of  Regulations  (EU)  No  1303/2013  and  (EU)  No  223/2014.  The  proposal  also 
complements the preceding amendment proposal to these regulations under the Commission’s 
CARE proposal of 8 March 2022 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.  

• 

Subsidiarity (for non-exclusive competence)  

Since addressing the challenges created by very high arivals of those fleeing Ukraine cannot 
be sufficiently achieved by the Member States alone and can therefore be better achieved at 
Union level, the Union may provide for an increased amount of pre-financing to be paid out 
under REACT-EU, in accordance with the principle of subsidiarity as set out in Article 5 of 
the Treaty on European Union. 

• 

Proportionality 

The  proposal  is  an  exceptional  and  targeted  change  not  going  beyond  what  is  necessary  to 
achieve  the  objective  of  providing  for  an  increased  amount  of  pre-financing  to  be  paid  out 
under  REACT-EU  to  support  measures  to  address  migratory  challenges  as  a  result  of  the 
military  aggression  by  the  Russian  Federation  and  to  alleviate  the  corresponding  burden  on 
public budgets to enable in turn mobilising  investment in response to the widespread public 
health crisis affecting the growth of regions. 

• 

Choice of the instrument 

A  Regulation  is  the  appropriate  instrument  to  provide  for  an  increased  amount  of  pre-
financing  to  be  paid  out  under  REACT-EU  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 

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• 

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. 

• 

N/A 

• 

Collection and use of expertise 

Impact assessment 

An impact assessment has been carried out to prepare the proposal for Regulations (EU) No 
1303/2013  and  (EU)  No  223/2014.  This  current  targeted  change  to  respond  to  a  critical 
situation does not require a separate impact assessment. 

Regulatory fitness and simplification 

Fundamental rights 

• 

N/A 

• 

N/A 

4. 

BUDGETARY IMPLICATIONS 

This  proposal  only  concerns  REACT-EU,  which  is  financed  by  the  European  Recovery 
Instrument NextGenerationEU (as set out in Council Regulation (EU) 2020/2094). 

The  total  annual  breakdown  of  commitment  and  payment  appropriations  for  the  European 
Regional Development Fund, the European Social Fund and the Fund for European Aid to the 
Most Deprived remains unchanged.  

The  proposal  will  result  in  additional  initial  pre-financing  to  be  paid  under  REACT-EU, 
financed by the European Recovery Instrument NextGenerationEU.  

The additional initial pre-financing payments in 2022 will be financed from external assigned 
revenues. All amounts will be available as external assigned revenues, within the meaning of 
Article 21(5) of the Financial Regulation stemming from the  Next GenerationEU borrowing 
operations. 

The  amount  paid  as  additional  initial  pre-financing  shall  be  totally  cleared  from  the 
Commission accounts not later than when the operational programme is closed, such that the 
total amount of payments made under REACT-EU will remain unchanged with this proposal. 
Similarly, the total commitment appropriations under REACT-EU will not be modified.  

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The implementation of the measure 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 Regulations (EU) No 1303/2013 and (EU) No 223/2014 in order to 
provide for an increased percentage of pre-financing to be paid out under REACT-EU and for 
related reporting (amendment of Article 92b of Regulation (EU) No 1303/2013 and Article 6a 
of Regulation (EU) No 223/2014). 

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2022/0096 (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 
increased pre-financing from REACT-EU resources 

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 for public budgets at 
a  time  when  Member  States’  economies  are  still  recovering  from  the  impact  of  the 
COVID-19  pandemic  and  risks  undermining  the  preparation  of  a  green,  digital  and 
resilient recovery of the economy. 

(2)  Member  States  are  already  able  to  finance  a  broad  range  of  investments  to  address 
migratory  challenges  under  their  operational  programmes  with  support  from  the 
European Regional Development Fund (ERDF), the European Social Fund (ESF) and 
the  Fund  for  European  Aid  to  the  Most  Deprived  (FEAD),  including  from  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. 

(3) 

Furthermore,  the  Commission  proposed  in  its  Cohesion’s  Action  for  Refugees  in 
Europe  (CARE)  initiative  of  8  March  2022  a  number  of  targeted  amendments  to 
Regulation (EU) No 1303/2013 of the European Parliament and of the Council3, and 

1 
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OJ C , , p. . 
OJ C , , p. . 
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 

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Regulation (EU) No 223/2014 of the European Parliament and of the Council4 in order 
to  make  it  easier  for  Member  States  to  use  their  remaining  ERDF,  ESF  and  FEAD 
allocations under the 2014-2020 multiannual financial framework, as well as REACT-
EU  resources,  to  address  the  migratory  challenges  as  effectively  and  as  rapidly  as 
possible. 

Notwithstanding  the  flexibilities  offered  by  the  CARE  proposal,  Member  States 
continue to face substantial pressures on public budgets from challenges deriving from 
the  very  high  numbers  of  arrivals  of  those  fleeing  Ukraine.  These  pressures  risk 
undermining their capacity to move towards a resilient recovery of the economy from 
the  COVID-19  pandemic.  In  order  to  assist  Member  States  in  addressing  the 
challenges  created,  support  from  the  ERDF,  ESF  and  FEAD  should  therefore  be 
mobilised quickly by increasing the rate of initial pre-financing paid from REACT-EU 
resources  for  all  Member  States.  At  the  same  time,  some  Member  States  have  been 
confronted  with  significant  arrivals  of  persons  from  Ukraine,  requiring  the  provision 
of  immediate  support.  These  Member  States  should  accordingly  benefit  from  a 
significantly higher increase of the rate of initial pre-financing to offset the immediate 
budgetary costs and support their efforts in preparing the recovery of their economies. 

In order to monitor the use made of this additional pre-financing, the final reports on 
the implementation of ERDF and ESF programmes receiving additional pre-financing 
should  report  on  the  use  made  of  the  additional  amounts  received  to  address  the 
migratory  challenges  faced  as  a  result  of  the  military  aggression  by  the  Russian 
Federation and how it contributed to the recovery of the economy.  

Since the objective of this Regulation, namely to  assist Member States in addressing 
the  challenges  created  by  the  exceptionally  high  arrivals  of  people  fleeing  the  war 
against Ukraine  and support their  move  towards a  resilient recovery of the economy 
from the COVID-19 pandemic, 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. 

Regulation (EU) No 1303/2013 and Regulation (EU) No 223/2014 should therefore be 
amended accordingly. 

Given  the  need  to  provide  rapid  relief  to  public  budgets  with  a  view  to  preserving 
Member  States’  capacity  to  sustain  the  economic  recovery  process  and  enable 
additional payments to operational programmes without delay, it is necessary that this 
Regulation enters into force on the day following that of its publication in the Official 
Journal of the European Union. 

In  view  of  the  urgency  to  provide  rapid  relief  to  public  budgets  with  a  view  to 
preserving  their  capacity  to  support  the  recovery  of  economies  from  the  COVID-19 
pandemic and to enable additional payments to operational programmes without delay, 
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, 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

4 

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) 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). 

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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: 

(1) 

In Article 92b(7), the following second and third subparagraphs are inserted: 

“In  addition  to  the  initial  pre-financing  set  out  in  the  first  subparagraph,  the 
Commission shall pay 4% of the REACT-EU resources allocated to programmes for 
the year 2021 as additional initial pre-financing in 2022. For programmes in Member 
States which have had a level of arrivals of persons from Ukraine greater than 1% of 
their  national  population  between  24  February  2022  and  23  March  2022,  that 
percentage shall be increased to 34%.  

When submitting the final  implementation  report required under Articles  50(1)  and 
111,  Member  States  shall  report  on  the  use  made  of  this  additional  initial  pre-
financing  to  address  the  migratory  challenges  faced  as  a  result  of  the  military 
aggression  by  the  Russian  Federation  and  its  contribution  to  the  recovery  of  the 
economy.” 

(2) 

In Article 92b(7), the last subparagraph is replaced by the following:  

“Where  the  Commission  decision  approving  the  operational  programme  or  the 
amendment  to  the  operational  programme  allocating  the  REACT-EU  resources  for 
2021 was adopted after 31 December 2021 and the related pre-financing not paid, the 
amount of initial pre-financing referred to in the first and second subparagraphs shall 
be paid in 2022. 

The  amount  paid  as  initial  pre-financing  referred  to  in  the  first  and  second 
subparagraphs shall be totally cleared from the Commission accounts not later than 
when the operational programme is closed.” 

Article 2 

Amendment to Regulation (EU) No 223/2014 

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

(1) 

In Article 6a(4), the following second subparagraph is inserted: 

“In  addition  to  the  initial  pre-financing  set  out  in  the  first  subparagraph,  the 
Commission shall pay 4% of the REACT-EU resources allocated to programmes for 
the year 2021 as additional initial pre-financing in 2022. For programmes in Member 
States which have had a level of arrivals of persons from Ukraine greater than 1% of 
their  national  population  between  24  February  2022  and  23  March  2022,  that 
percentage shall be increased to 34%.” 

(2) 

In Article 6a(4), the last subparagraph is replaced by the following:  

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“The  amount  paid  as  initial  pre-financing  referred  to  in  the  first  and  second 
subparagraphs shall be totally cleared from the Commission accounts not later than 
when the operational programme is closed.” 

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 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending  Regulation  (EU)  No  1303/2013  and  Regulation  (EU)  No  223/2014  as 
regards increased pre-financing from REACT-EU resources 

1.2. 

Policy area(s) concerned  

05 Regional Development and Cohesion 

07 Investing in People, Social Cohesion and Values  

1.3. 

The proposal/initiative relates to:  

 a new action  
 a new action following a pilot project/preparatory action5  

X the extension of an existing action  

 a merger or redirection of one or more actions towards another/a new action  

1.4. 

Objective(s) 

1.4.1.  General objective(s) 

N/A 

1.4.2. 

Specific objective(s) 

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 performance 

Specify the indicators for monitoring progress and achievements. 

N/A 

5 

As referred to in Article 58(2)(a) or (b) of the Financial Regulation. 

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1.5. 

Grounds for the proposal/initiative  

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

roll-out of the implementation of the initiative 

N/A 

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

N/A 

1.5.3.  Lessons learned from similar experiences in the past 

N/A 

1.5.4.  Compatibility  with  the  Multiannual  Financial  Framework  and  possible  synergies 

with other appropriate instruments 

N/A 

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

redeployment 

N/A 

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1.6. 

Duration and financial impact of the proposal/initiative 

X limited duration  

–  X  in effect from  1 January 2022 to 31 December 2022 

–  X  Financial impact  from  1 January  2022 to  31 December  2024 on commitment 

and payment appropriations 

 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  

X 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 70 and 71 of the Financial Regulation; 

–   public law bodies; 

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

they provide adequate financial guarantees; 

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

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

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

– 

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

Comments  

N/A 

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

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

N/A 

2.2.  Management and control system(s)  

2.2.1. 

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

N/A 

2.2.2. 

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

N/A 

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

N/A 

2.3.  Measures to prevent fraud and irregularities  

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

N/A

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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. 

Heading of 
multiannual 
financial 
framework 

Number  

Budget line 

Type of  
expenditure 

Contribution  

Diff./Non-
diff.7 

from 
EFTA 
countries8 

from 
candidate 
countries9 

from third 
countries 

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

05.02.05.01  European  Regional  Development 
Fund  (ERDF)  –  Operational  Expenditure  – 
Financing under REACT-EU 

07.02.05.01  European  Social  Fund  (ESF)  – 
Operational  Expenditure  –  Financing  under 
REACT-EU  

07.02.06.01  Completion  of  the  Fund  for 
European Aid to the Most Deprived (FEAD) – 
Operational  Expenditure  –  Financing  under 
REACT-EU 

2a 
Economic, 
social and 
territorial 
cohesion 

Diff. 

NO 

NO 

NO 

NO 

7 
8 
9 

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

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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 and payments 
as per Annex I to Regulation (EU) No 1311/2013.  

The  total  annual  breakdown  of  commitment  appropriations  for  the  European  Regional  Development  Fund,  the  European  Social  Fund  and  the 
Fund for European Aid to the Most Deprived remains unchanged.  

The proposal will result in additional initial pre-financing to be paid.  

The additional initial pre-financing payments in 2022 will be financed from external assigned revenues. All amounts will be available as 
external  assigned  revenues,  within  the  meaning  of  Article  21(5)  of  the  Financial  Regulation  stemming  from  the  borrowing  operations  of  the 
Union as set out in Council Regulation (EU) 2020/2094. 

The amount paid as additional initial pre-financing shall be totally cleared from the Commission accounts not later than when the operational 
programme is closed.  

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Heading of multiannual financial  
framework  

Number  2a 

EUR million (to three decimal places) 

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

 Operational appropriations  

05.02.05.01 European Regional Development 
Fund (ERDF) – Operational Expenditure – 
Financing under REACT-EU 

07.02.05.01  European  Social  Fund  (ESF)  – 
Operational  Expenditure  –  Financing  under 
REACT-EU  

07.02.06.01  Completion  of  the  Fund  for 
European Aid to the Most Deprived (FEAD) 
– Operational Expenditure – Financing under 
REACT-EU 

2021 

2022 

2023 

2024 

2025 

TOTAL 

Commitments 

(1a) 

0.000 

Payments 

(2a) 

  3 426.000 

-3 426.000 

0.000 

Budget line 

Commitments 

Payments 

(1b) 

(2b) 

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

Budget line 

TOTAL appropriations 

Commitments 

(3) 

=1a+

0.000 

10 

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 

16 

EN 

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

Payments 

 TOTAL operational appropriations  

Commitment
s 

Payments 

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

1b +3 

=2a+
2b 

+3 

(4) 

(5) 

(6) 

  3 426.000 

-3 426.000 

0.000 

TOTAL appropriations  
under HEADING 2a 
of the multiannual financial framework 

Commitment
s 

=4+ 6 

Payments 

=5+ 6 

3 426.000 

-3 426.000 

0.000 

0.000 

EN 

17 

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 

Payments 

  3 426.000 

-3.426.000 

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 

18 

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
11 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 112… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTALS 

11 
12 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in point 1.4.2. ‘Specific objective(s)…’  

EN 

19 

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 
13
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  

14 

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. 

13 

14 

Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first 
year of implementation (for instance: 2021). The same for the following years. 
Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU programmes 
and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

20 

  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)

15

– 

– 

–  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  

16

– 

–  - 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 

15 

16 

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

EN 

21 

  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 
N17 

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  

17 

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 

22 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Estimated impact on revenue  

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

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

 

X 

on own resources  

on other revenue 

The additional pre-financing payments in 2022 will be financed from external 
assigned  revenues.  All  amounts  will  be  available  as  external  assigned 
revenues,  within  the  meaning  of  Article  21(5)  of  the  Financial  Regulation 
stemming  from  the  borrowing  operations  of  the  Union  as  set  out  in  Council 
Regulation (EU) 2020/2094. 

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/initiative18 

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). 

[…] 

18 

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 

23 

  EN