Amended 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: 2022-03-31
Institutions: Directorate-General for Regional and Urban Policy, European Commission
Subjects: Ukraine, additional resources, aid to refugees, distribution of EU funding, economic and social cohesion, foreign national, fund (EU), internally displaced person, operational programme, war

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 31.3.2022  COM(2022) 162 final 2022/0096 (COD)  Amended 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 

On  23  March  2022,  the  European  Commission  adopted  a  legislative  proposal  to  amend 
Regulations  (EU)  No  1303/2013  and  (EU)  No  223/2014  to  provide  for  exceptional  and 
targeted  changes  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.  

This  proposal  was  to  provide  additional  initial  pre-financing  for  2014-2020  programmes 
supported  by  cohesion  policy  funds  and  the  Fund  for  European  Aid  to  the  Most  Deprived 
(FEAD),  to  be  paid  under  REACT-EU,  financed  by  the  European  Recovery  Instrument 
“NextGenerationEU”. 

The  Commission  had  already  taken  action  to  assist  Member  States  in  this  regard,  via  its 
Cohesion’s Action for Refugees in Europe (CARE) proposal of 8 March 2022.  

At  its  meeting  on  24-25  March  2022,  the  European  Council  discussed  the  Russian  military 
aggression against Ukraine and, in its conclusions of the meeting, invited the Commission “to 
work on additional proposals to reinforce EU support” so as “to ensure that EU funding for 
refugees and their hosts can be mobilised rapidly”. 

To  address  this  invitation,  the  Commission  is  bringing  forward  this  proposal,  amending  its 
legislative proposal of 23 March 2022. Since one of the most effective methods of mobilising 
funding rapidly is to make use of “simplified costs options”, which enable easier and quicker 
implementation of cohesion policy funds while also reducing the administrative burden, this 
proposal  therefore  creates  a  new  unit  cost.  Member  States  can  use  this  new  unit  cost  to 
facilitate the financing of basic needs and support of persons granted temporary protection in 
accordance with Council Implementing Decision (EU) 2022/382 in all Member States where 
such  a  person  is  present.  The  unit  cost  may  be  used  for  a  maximum  of  13  weeks  in  total, 
starting from the date of arrival of the person in the European Union. 

• 

Consistency with existing policy provisions in the policy area 

The  amended  proposal  is  consistent  with  the  overall  legal  framework  established  for  the 
European  Structural  and  Investment  Funds  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  this  regulation  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. 

EN 

1 

  EN 

• 

Subsidiarity (for non-exclusive competence)  

Since addressing the challenges created by very high arrivals 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 and provide for a new unit cost simplified cost option, 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 and providing for a new unit cost 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 and for the creation of a new unit cost needed to 
address these unprecedented circumstances. 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

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. 

Collection and use of expertise 

• 

N/A 

• 

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 

The proposed modification to the Commission’s proposal of 23 March 2022 does not involve 
any change to commitment appropriations under the 2021-2027 MFF. 

EN 

2 

  EN 

The use of the new unit cost would facilitate an acceleration of the disbursement of funds. 

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  Regulations  (EU)  No  1303/2013  and  (EU) 
No 223/2014. 

Explanatory documents (for directives) 

• 

N/A 

• 

Detailed explanation of the specific provisions of the proposal 

The proposed modification to the Commission’s proposal of 23 March 2022 provides for the 
creation of a new unit cost to support measures to address migratory challenges as a result of 
the military aggression by the Russian Federation. 

EN 

3 

  EN 

2022/0096 (COD) 

Amended 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 

Commission proposal COM(2022) 145 is amended as follows: 

(1) 

the title is replaced by the following:  

“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  and  establishment  of  a 
unit cost” 

(2) 

the following recital (5a) is inserted: 

“Furthermore,  with  a  view  to  simplifying  the  use  of  the  European  Structural  and 
Investment  Funds  and  reducing  the  administrative  burden  for  Member  State 
administrations  and  beneficiaries  in  the  context  of  addressing  migratory  challenges 
resulting from the military aggression by the Russian Federation, a unit cost should 
be  established.  This  unit  cost  should  facilitate  the  financing  of  basic  needs  and 
support of persons granted temporary protection  or other adequate protection under 
national law in accordance with Council Implementing Decision (EU) 2022/3821 and 
Council Directive 2001/55/EC2 in all Member States, where such a person is present 
during the 13 weeks since their arrival in the European Union. In accordance with the 
Commission’s  “Cohesion’s  Action  for  Refugees  in  Europe”  (CARE)  proposal  of 
8 March 2022, Member States may also apply this unit cost when making use of the 
possibility provided in [Article 98(4) of Regulation (EU) No 1303/2013] to finance 
such  operations  by  the  ERDF  on  the  basis  of  the  rules  applicable  to  the  ESF, 
including when this involves REACT-EU resources. In making use of the unit cost, 
Member States should ensure that they have the necessary arrangements in place to 
avoid double financing of the same costs.” 

(3) 

in Article 1, the following point is inserted before point (1):  

“(1) 

the following Article 68c is inserted:  

Article 68c  

Unit  cost  for  operations  addressing  migratory  challenges  resulting  from  the 
military aggression by the Russian Federation 

1 

2 

Council Implementing Decision (EU) 2022/382 of 4 March 2022 establishing the existence of a  mass 
influx of displaced persons from Ukraine within the meaning of Article 5 of Directive 2001/55/EC, and 
having the effect of introducing temporary protection, OJ L 71, 4.3.2022, p. 1–6 
Council Directive 2001/55/EC of 20 July 2001 on minimum standards for giving temporary protection 
in  the  event  of  a  mass  influx  of  displaced  persons  and  on  measures  promoting  a  balance  of  efforts 
between  Member  States  in  receiving  such  persons  and  bearing  the  consequences  thereof  (OJ  L  212, 
7.8.2001, p. 12). 

EN 

4 

  EN 

                                                 
For the implementation of operations addressing migratory challenges resulting from 
the military aggression by the Russian Federation, Member States may include in the 
expenditure  declared  in  payment  applications  a  unit  cost  linked  to  the  basic  needs 
and  support  of  persons  granted  temporary  protection  or  other  adequate  protection 
under  national  law  in  accordance  with  Council  Implementing  Decision  (EU) 
2022/382  and  Council  Directive  2001/55/EC.  That  unit  cost  shall  be  EUR  40  per 
week  for  each  full  week  or  partial  week  that  the  person  is  in  the  Member  State 
concerned. The unit cost may be used for a maximum of 13 weeks in total, starting 
from the date of arrival of the person in the Union.  

The  amounts  calculated  on  this  basis  shall  be  regarded  as  public  support  paid  to 
beneficiaries  and  as  eligible  expenditure  for  the  purpose  of  applying 
this 
Regulation.” 

in Article 1, point (1) becomes point (2) and point (2) becomes point (3); 

in Article 1, the following point is added:  

“(4) 

in Article 131, paragraph 2 is replaced by the following: 

2.  Eligible  expenditure  included  in  a  payment  application  shall  be  supported  by 
receipted invoices or accounting documents of equivalent probative value, except for 
the  forms  of  support  referred  to  in  points  (b)  to  (e)  of  the  first  subparagraph  of 
Article  67(1),  Articles  68,  68a,  68b  and  68c,  Article  69(1)  and  Article  109  of  this 
Regulation and in Article 14 of the ESF Regulation. For those forms of support, the 
amounts  included  in  a  payment  application  shall  be  the  costs  calculated  on  the 
applicable basis.” 

(4) 

(5) 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

5 

  EN