Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2021/1057 establishing the European Social Fund + (ESF+) as regards specific measures to address strategic challenges
Date: 2025-04-01
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: European Social Fund, European arms policy, European defence policy, European social policy, arms industry, education policy, eligibility criteria, investment, skilled worker, updating of skills

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   EUROPEAN COMMISSION  Strasbourg, 1.4.2025  COM(2025) 164 final 2025/0085 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2021/1057 establishing the European Social Fund + (ESF+) as regards specific measures to address strategic challenges  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The mid-term review of cohesion policy presents an opportunity for Member States to redirect 
2021-2027  resources  towards  investment  in  defence  capabilities,  for  the  competitiveness, 
preparedness  and  strategic  autonomy  of  the  EU  and  in  other  emerging  priorities,  including 
clean industrial  deal  objectives by submitting corresponding programme  amendments  to  the 
Commission. Strengthening these dimensions requires having people with the right skills. In 
the  current  demographic  context,  increasing  skills  and  labour  shortages  are  a  main 
impediment for growth and economic adjustment. Investing in skills development and labour 
mobility is top priority. 

The framework for cohesion policy investments in people set out in the European Social Fund 
Plus (ESF+) regulation is not sufficiently aligned with these new priorities. The exceptional 
challenges  the  Union  is  confronted  with  requires  additional  focus,  flexibility  and  a 
reinforcement of incentives. The proposed adjustments will help steer reprogramming towards 
emerging  priorities  and  will  support  speeding  up  implementation.  This  proposal  sets  out 
adjustments to the ESF+ regulation to achieve these objectives. 

Aligning cohesion policy investments to new priorities 

In  recent  years,  geopolitical  dynamics  have  been  marked  by  profound  uncertainty, 
necessitating  a  fundamental  re-evaluation  of  the  EU’s  strategic  autonomy.  These  shifts  are 
unfolding  alongside  the  green,  social,  and  technological  transitions,  which  are  rapidly 
reshaping the world around us. The challenges  posed by these simultaneous transformations 
were  comprehensively  analysed in  the report on  the “Future of European Competitiveness”, 
published in September 2024. The report underscores the urgent need to close the innovation 
gap,  align  decarbonisation  efforts  with  economic  competitiveness,  and  reduce  external 
dependencies by diversifying supply chains and investing in critical sectors. 

In  response,  several  major  initiatives  have  already  been  launched  to  enhance  the  EU’s 
economic  resilience  and  strategic  autonomy.  These  include  the  “Strategic  Technologies  for 
Europe  Platform”  (STEP),  which  aims  to  strengthen  Europe’s  technological  leadership; 
“REPowerEU",  designed  to  reduce  reliance  on  external  energy  sources  and  accelerate  the 
green transition; to complete interventions already underway via cohesion policy programmes 
and the “Recovery and Resilience Facility” (RRF), to support structural changes in Member 
States and regions as well as to enhance their resilience. 

As the EU’s main investment instrument within the Multiannual Financial Framework (MFF), 
cohesion  policy  plays  a  crucial  role  in  supporting  these  priorities.  It  drives  targeted 
investments that contribute to economic, social and territorial cohesion while at the same time 
addressing  emerging  challenges.  It  contributes  to  Europe’s  economic  transformation, 
including  through  innovation,  strengthening  competitiveness.  However,  the  regulatory 
framework  governing  the  2021-2027  cohesion  policy  funds  was  drafted,  negotiated  and 
adopted before the series of major geopolitical and economic events that have since reshaped 
some of the EU’s strategic political priorities. 

Similarly,  the  Partnership  Agreements  and  the  national  and  regional  cohesion  policy 
programmes were developed and approved  within this same timeframe, hence reflecting the 
priorities set at the time. Given the evolving global and regional context, the 2025 mid-term 
review presents a critical opportunity to assess their implementation and the effectiveness of 

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their  contribution  to  the  evolving  priorities.  This  review  will  help  determine  the  extent  to 
which  cohesion  policy  programmes  can  directly  and  swiftly  respond  to  rapidly  changing 
political, economic and social realities. 

At  the  same  time,  it  has  become  evident  that  the  early  implementation  of  the  2021-2027 
cohesion policy programmes has faced challenges which have not been conducive to a swift 
uptake  and  rapid  disbursement  of  the  funds,  leading  to  delays  in  their  implementation 
compared  to  previous  programming  periods.  These  delays  come  at  a  time  when  strong  and 
accelerated investment is essential to support economic resilience and competitiveness. 

Against this backdrop, the Commission is proposing targeted amendments to Regulation (EU) 
2021/1057.  These  changes  aim  to  adjust  investment  priorities  with  the  evolving  economic, 
societal,  environmental  and  geopolitical  context  while  at  the  same  time  introducing  greater 
flexibility  and  incentives  to  facilitate  and  encourage  the  rapid  deployment  of  much-needed 
resources. By refining the 2021-2027 cohesion policy framework, the EU can ensure that its 
investment  mechanisms  remain  agile  and  responsive,  enabling  a  more  effective  response  to 
current and future challenges.  

In  order  for  Member  States  to  make  effectively  use  of  the  possibilities  provided  in  this 
proposal, they are proposed to be allowed to re-submit their mid-term review proposal by 2 
months after the entry into force of the present proposal for amendment to Regulation (EU) 
2021/1057.  Any  programme  amendment  that  would  be  carried  out  pursuant  to  the  new 
priorities  and  flexibilities,  shall  be  without  prejudice  to  the  application  of  any  measures 
adopted under Regulation 2020/2092 and to the compliance by relevant programmes with the 
priorities  under  Article  15  of  Regulation  2021/1060.  In  this  context  the  Commission  will 
closely monitor the conformity of the programmes with the requirements of relevant EU law. 

Adaptation  of  workers,  enterprises  and  entrepeneurs 
decarbonisation and resilience of production capacities  

to  change  contributing 

to 

Faced  with  high  energy  costs,  fierce  global  competition  and  significant  threats  to  the  rules-
based international  order governing international  trade, European industries need  the  adjust. 
They  need  workers  with  the  right  skills  set,  the  definition  of  which  is  rapidly  evolving. 
Ensuring  that  workers  have  access  to  obtaining  the  right  skills  through  re-  and  upskilling 
measures and supporting mobility of (high skilled) workers between industries, as structural 
change is taking place at an unprecedented pace, requires immediate action.  

Europe’s  competitive  strength  lies  in  its  people.  Our  human  capital  is  key  to  the  EU’s 
prosperity,  its  economic  resilience  to  increasing  our  productivity  growth,  and  to  fostering 
cohesion. The EU's workforce must have the necessary skills to support the growing defence 
industry, strengthening Europe’s preparedness and security, as well as the transition to a low-
carbon 
and 
entrepreneurship. The Clean Industrial Deal1 outlines concrete actions to turn decarbonisation 
into a driver of growth for European industries. 

digitalisation, 

technologies, 

economy, 

including 

skills 

clean 

in 

Defence and security 

In  the  face  of  unprecedented  geopolitical  instability,  the  European  Union  must  now  make 
crucial decisions to ensure its security. To guarantee its own defence deterrence, and security, 
Europe  must  be  prepared  to  enter  a  new  era  by  significantly  increasing  its  support  for  the 

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development of the defence capabilities and the competitiveness of the EU defence industry. 
This  effort  will  enable  the  Union  to  address  the  short-term  urgency  of  supporting  Ukraine 
while ensuring the continent’s long-term stability. 

The  Commission  has  proposed  to  the  European  Council  an  immediate  response  plan  — 
REARM Europe — amounting to EUR 800 billion, by activating all available financial levers 
to swiftly and significantly support investment in European defence capacities. Among these 
levers,  the  Union  budget  can  further  contribute  to  this  collective  effort  through  a  new 
dedicated  defence  instrument  and  the  strengthening  of  the  European  Defence  Industry 
Programme (EDIP). 

To complement these tools and further incentivise Member States to directly support defence 
investments,  it  is  essential  that  cohesion  policy  funding  can  be  swiftly  mobilised.  These 
investments  will  reinforce  the  resilience  and  EU  competitiveness  while  promoting  regional 
development  and  growth.  They  will  also  tackle  the  dual  challenge  faced  by  the  Union’s 
regions bordering Russia, Belarus and Ukraine: strengthening security while revitalising their 
economies. 

The  right  skills  are  crucial  to  an  effective  defence  capacity.  The  capacity  of  the  defence 
industry  to  recruit  skilled  workers,  and  re-  and  upskill  workers,  is  a  sine  qua  non  for  the 
ability to ramp up production in a very short timeframe. The Union of Skills sets out actions 
to  address  skills  gaps  and  shortages  in  Europe.  The  Commission  will  also  develop  a Skills 
Guarantee pilot. This scheme will offer workers involved in restructuring processes, or at risk 
of  unemployment,  the  opportunity  to  develop  further  their  careers  in  another  company  or 
another  sector.  This  is  particularly  important  in  the  present  circumstances.  Furthermore,  the 
Pact for Skills, has established a large-scale partnership on the defence ecosystem2. Through 
skills forecasting, it supports collective anticipation of the skills gaps Europe will face, taking 
into  account  industry  skills  needs  and  demographic  skills  forecasts  for  the  next  five  to  ten 
years. It aims to upgrade upskilling and reskilling programmes to make them more attractive 
by better engaging and developing talent and improving its retention.  

In  this  context,  the  ESF+  will  actively  facilitate  the  development  of  skills  in  the  defence 
industry  by  providing  additional  flexibilities  to  implementation,  including  increased  pre-
financing, exemption from the calculation of thematic concentration as well as increased level 
of co-financing. 

Eastern border regions 

Given  the  challenges  of  the  Eastern  border  regions  since  the  Russian  aggression  against 
Ukraine,  programmes  under  the  Investment  for  jobs  and  growth  goal  with  NUTS  2  regions 
that  have  borders  with  Russia,  Belarus  or  Ukraine,  should  benefit  from  the  possibility  of  a 
one-off 9.5% pre-financing of the programme allocation in 2026 and a 100% Union financing. 

Greater flexibility and simplification for accelerating investments 

Halfway  in  the  2021-2027  programming  period,  the  level  of  payments  claimed  by  the 
Member States to the Commission is low, owing to a combination of factors: the late adoption 
of the regulations governing the policy; the need to face successive crises from the COVID-19 
pandemic  to  the  war  against  Ukraine,  and  to  the  energy  crisis;  the  pressure  to  close  the 
previous programming period; and the priority given to implement the instruments of NGEU, 

2 

https://pact-for-skills.ec.europa.eu/about/industrial-ecosystems-and-partnerships/aerospace-and-
defence_en 

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given  their  shorter  implementation  timeframe.  All  this  has  in  turn  put  a  strain  on  the 
administrative  capacities  of  Member  States’  authorities  to  design  and  quickly  deliver 
investments.  Notwithstanding  a  rapid  acceleration  experienced  over  last  year  with  project 
selection  just  above  40%  of  the  allocations,  cohesion  policy  implementation  should  rapidly 
pick up pace in a context where the Union is facing a range of new challenges requiring rapid 
responses. The Commission therefore proposes a set of measures aiming at further enhancing 
the  flexibility  and  simplification  of  the  use  of  cohesion  policy  support  for  accelerating 
investments: 

– 

– 

– 

To  avoid  that  programme  implementation  is  delayed  because  of  national  budgetary 
constraints, and to expand the financial capacity Member States to address the newly 
emerging  challenges,  the  Commission  proposes  to  provide  a  one-off  4.5%  pre-
financing provided from the ESF+ in 2026 to all programmes that reallocate at least 
15% of their resources for the new priorities and STEP in the context of the mid-term 
review process.  

The  pre-financing  percentage  is  proposed  to  be  increased  to  9.5%  in  2026  for 
programmes  covering  one  or  more  NUTS2  regions  bordering  Russia,  Belarus  or 
Ukraine  acknowledging  the  specific  challenges  these  regions  have  face  since  the 
Russian aggression in Ukraine.  

To avoid that the risk of delays and corresponding loss of funds reduces willingness 
to undertake programme amendments and to ensure the proper implementation of the 
operations concerned, the Commission proposes to extend the time limit for using the 
ESF+  resources  and  extend  the  end  date  for  eligibility  by  an  additional  year.  This 
flexibility  is  proposed  to  be  made  available  only  for  programmes  that  proposed 
amendments  resulting  in  reallocation  of  at  least  15%  of  the  resources  for  the  new 
priorities and STEP in the context of the mid-term review exercise, once approved. 

• 

Consistency with existing policy provisions in the policy area 

The proposal is consistent with the objectives followed by the cohesion policy funds as well 
as with the latest Commission communication on a reform agenda for Cohesion policy and is 
limited  to  a  targeted  amendment  of  Regulation  (EU)  2021/1057.  Consistency  with  other 
Union policies 

The proposal is limited to a targeted amendment of Regulation (EU) 2021/1057 and maintains 
consistency with other Union policies. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The proposal is based on Articles 164, 175, 177 and 322 of the Treaty on the Functioning of 
the European Union. 

• 

Subsidiarity (for non-exclusive competence)  

The proposal to encourage Member States to further align their cohesion policy programmes 
to  addressing  strategic  challenges  and  to  refocus  resources  to  new  priorities  while  ensuring 
greater  flexibility  to  accelerate  implementation,  requires  amendments  to  Regulation  (EU) 
2021/1057. The same result cannot be achieved through actions at national level. 

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• 

Proportionality 

The  proposal  aims  at  incentivising  Member  States  to  further  align  their  cohesion  policy 
programmes to addressing strategic challenges and refocus resources to new priorities as well 
as providing greater flexibility for accelerating investments. The measures do not go beyond 
what is necessary to achieve these goals. 

• 

Choice of the instrument 

A  Regulation  is  the  appropriate  instrument  as  it  provides  directly  applicable  rules  for  the 
support. 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

Stakeholder consultations 

Collection and use of expertise 

3. 

• 

N/A 

• 

N/A 

• 

N/A 

• 

Impact assessment 

An  impact  assessment  has  been  carried  out  to  prepare  the  proposal  for  Regulation  (EU) 
2021/1057. The limited and targeted changes do not require a separate impact assessment. 

Regulatory fitness and simplification 

Fundamental rights 

• 

N/A 

• 

N/A 

4. 

BUDGETARY IMPLICATIONS 

The  proposal  concerns  cohesion  policy  programmes  from  the  2021-2027  period  and  will 
result  in  additional  pre-financing  to  be  paid  under  the  ESF+  in  2026.  This  additional  pre-
financing  will  lead  to  frontloading  of  payment  appropriations  to  2026  compared  to  a  no 
policy-change  scenario  and  is  budgetary  neutral  over  the  2021-2027  period.  Based  on  the 
estimated  uptake  of  the  proposal  as  well  as  taking  into  account  payment  forecasts  and 
implementation shifts , the net budgetary impact is estimated to EUR 500 million that will be 
included in the draft budget 2026. 

The  possibility  to  apply  for  an  increased  Union  financing  rate  for  investments  under  the 
dedicated  priorities  and  for  programmes  covering  Eastern  border  regions  will  also  lead  to  a 
partial front-loading of payments, followed by lower payments at a later stage as the overall 
envelope is unchanged. The actual impact will highly depend on the Member States’ uptake.  

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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. 

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 Regulation (EU) 2021/1060.  

Explanatory documents (for directives) 

• 

N/A 

• 

Detailed explanation of the specific provisions of the proposal 

The proposal involves the amendment of Regulation (EU) 2021/1057 as regards the ESF+ in 
order to address strategic challenges and allow for Member States to refocus their resources to 
new priorities. 

Defence 

It  allows  for  a  focused  support  to  development  of  skills  in  the  defence  industry  under  a 
dedicated  priority  that  benefits  from  further  flexibilities  that  include  an  increased  pre-
financing on the allocation of the priority, exemption from the calculation of amounts towards 
thematic concentration and an increased level of co-financing. Nevertheless, such flexibilities 
are  conditioned  to  reallocating  a  minimum  amount  of  the  programme  resources  to  new 
priorities.  

Adaptation  of  workers,  enterprises  and  entrepeneurs 
decarbonisation of production capacities  

to  change  contributing 

to 

It allows for a focused support to skilling, up-skilling and re-skilling with a view to adaptation 
of  workers,  enterprises  and  entrepeneurs  to  change  contributing  to  decarbonisation  of 
production  capacities.under  a  dedicated  priority  that  benefits  from  further  flexibilities  that 
include an increased pre-financing on the allocation of the priority and increased level of co-
financing. Nevertheless, such flexibilities are conditioned to reallocating a minimum amount 
of the programme resources to new priorities. 

Facilitating the refocusing of resources by Member States 

In  order  that  the  Member  State  could  effectively  make  use  of  the  new  priorities  and 
flexibilities,  Member  States  will  be  allowed  to  re-submit  their  assessment  to  the  mid-term 
review  accompanied  by  a  request  for  programme  amendment  to  establish  any  of  the  newly 
introduced dedicated priorities. 

To help accelerate the implementation of the ESF+, all programmes that establish any of the 
newly introduced dedicated priorities and STEP and reallocate at least 15% of their resources, 
would  receive  an  additional  one-off  pre-financing  of  4.5%  on  the  basis  of  their  amended 
programme budget.  

Given  the  challenges  of  the  Eastern  border  regions  since  the  Russian  aggression  against 
Ukraine,  programmes  financed  by  the  ESF+  with  NUTS  2  regions  that  have  borders  with 
Russia,  Belarus  or  Ukraine,  should  benefit  from  the  possibility  of  a  one-off  9.5%  pre-
financing  and  a  100%  Union  financing.  Where  the  corresponding  programme  covers  the 
entire  territory  of  the  Member  State,  these  financial  flexibilities  should  only  apply  if  the 

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programme  covering  the  entire  territory  of  the  Member  State  is  the  only  programme  in  the 
Member State that includes the concerned NUTS 2 regions. 

In addition, the end-date for eligibility of expenditure is extended by one additional year for 
all cohesion policy programmes where programme amendments establishing any of the newly 
introduced dedicated priorities and reallocating at least 15% of the financial resources of the 
approved.
priorities 
programme 

those 

have 

been 

to 

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2025/0085 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) 2021/1057 establishing the European Social Fund + (ESF+) 
as regards specific measures to address strategic challenges 

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 164, 175, 177  and Article 322thereof, 

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 Committee3,  
Having regard to the opinion of the Committee of the Regions4,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

Given  the  major  geopolitical  and  economic  events  that  have  reshaped  some  of  the 
Union’s  strategic  political  priorities,  it  is  necessary  to  provide  for  possibilities  for 
Member States to address those strategic challenges and to refocus their resources to 
newly emerging priorities. 
The  White  paper  for  European  Defence  –  Readiness  20305  paves  the  way  for  a  true 
European defence union, including by suggesting to Member States to heavily invest 
into  defence  and  the  defence  industry.  In  that  regard,  the  Communication  from    the 
Commission  -  the  Union  of  Skills  of  5  March  20256  (‘the  Union  of  Skills 
Communication’)  sets  out  actions  to  address  skills  gaps  and  shortages  in  the  Union, 
also  through  the  Pact  for  Skills  Initiative  referred  to  in  that  Communication,  and  its 
large-scale  partnerships,  including  one  on  the  defence  ecosystem.  Therefore,  it  is 
appropriate  to  include  incentives  for  the  ESF+  established  by  Regulation  (EU) 
2021/1057  of  the  European  Parliament  and  of  the  Council7  to  facilitate  the 
development of skills in the defence industry. 

(3) 

It  is  already  possible  to  support  the  adaptation  of  workers,  entrepreneurs  and 
enterprises  to  change  under  the  ESF+.  In  line  with  the  decarbonisation  measures 
proposed by the Communication from the Commission – the Clean Industrial Deal: A 

3 
4 
5 
6 
7 

OJ C , , p. . 
OJ C , , p. . 
Joint White Paper for European Defence Readiness 2030, JOIN(2025) 120 final, 19.3.2025. 
COM (2025) 90 final  
Regulation (EU) 2021/1057 of the European Parliament and of the Council of 24 June 2021 establishing 
the  European  Social  Fund  Plus  (ESF+)  and  repealing  Regulation  (EU)  No 1296/2013  (OJ  L  231, 
30.6.2021, p. 21, ELI: http://data.europa.eu/eli/reg/2021/1057/oj). 

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joint  roadmap  for  competitiveness  and  decarbonisation  of  26  February  20258  and  to 
further  facilitate  industrial  adjustment  linked  to  the  decarbonisation  of  production 
processes  and  products,  in  the  context  of  the  objective  of  providing  lifelong 
opportunities to regularly upskill and reskill people,  as set out in the Union of Skills 
Communication,  including  through  a  newly  proposed  Skills  Guarantee,  the  ESF+ 
should  facilitate  the  skilling,  job  maintenance  and  job  creation  throughout  the 
decarbonisation process by providing flexibilities to implementation. 

It  is  already  possible,  under  ESF+,  to  support  investments  contributing  to  the 
objectives of the ‘Strategic Technologies for Europe Platform’ (STEP) established by 
Regulation (EU) 2024/795 of the European Parliament and of the Council9 which aims 
to  strengthen  the  Union’s  technological  leadership.  In  order  to  further  incentivise 
investments from the ESF+ in those critical fields, the possibility for Member States to 
receive a higher pre-financing for related programme amendments should be extended.  

In order to enable Member States to carry out a meaningful reprogramming and focus 
resources  on  strategic  Union  priorities  set  out  in  recitals  2,  3  and  4  without  causing 
further  delays  in  implementation,  it  is  appropriate  to  provide  for  further  flexibilities. 
The  mid-term  review  should  serve  as  an  opportunity  to  address  emerging  strategic 
challenges and new priorities therefore, Member States should benefit from additional 
time  to  complete  the  assessment  of  the  outcome  of  the  mid-term  review  and  the 
submission of related programme amendments  

In order to accelerate the implementation of cohesion policy programmes and alleviate 
the  pressure  on  national  budgets  and  to  inject  the  necessary  liquidity  for  the 
implementation of key investments, an additional one-off pre-financing from the ESF+ 
should  be  paid  for  programmes.  Because  of  the  adverse  impact  of  the  Russian 
aggression  in  Ukraine,  the  pre-financing  percentage  should  be  further  increased  for 
certain programmes covering one or more NUTS2 regions bordering Russia, Belarus 
or  Ukraine.  In  order  to  incentivise  the  re-programming  towards  key  priorities  in  the 
context of the mid-term review, the additional pre-financing should only be available 
where a certain threshold for the reallocation of financial resources to specific crucial 
priorities is reached. 

Furthermore, to take account of the time needed to refocus investments and to allow 
best use of available resources, the deadlines for the eligibility of expenditure and the 
decommitment rules should be adjusted for programmes carrying out a reallocation of 
resources to strategic priorities.  

It  should  also  be  possible  to  apply  a  maximum  co-financing  rate  of  up  to  100%  to 
priorities  in  programmes  covering  one  or  more  NUTS2  regions  bordering  Russia, 
Belarus  or  Ukraine,  given  the  adverse  impact  of  the  Russian  aggression  on  those 
regions. 

Since the objectives of this Regulation, namely to address strategic challenges, refocus 
investments  on  critical  new  priorities  and  simplify  and  accelerate  policy  delivery, 
cannot be sufficiently achieved by the Member States but can rather be better achieved 

COM (2025) 85 final 
Regulation  (EU)  2024/795  of  the  European  Parliament  and  of  the  Council  of  29 February  2024 
establishing 
amending 
Directive 2003/87/EC  and  Regulations  (EU) 2021/1058,  (EU) 2021/1056,  (EU) 2021/1057,  (EU) 
No 1303/2013,  (EU)  No 223/2014,  (EU) 2021/1060,  (EU) 2021/523,  (EU) 2021/695,  (EU) 2021/697 
and (EU) 2021/241 (OJ L, 2024/795, 29.2.2024, ELI: http://data.europa.eu/eli/reg/2024/795/oj) 

the  Strategic  Technologies 

for  Europe  Platform 

(STEP), 

and 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

8 
9 

EN 

9 

  EN 

 
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 in order to achieve that objective. 

(10)  Regulation (EU) 2021/1057 should therefore be amended accordingly. 

(11) 

[Given the urgent need to enable crucial investments in skills in the defence industry 
as well as in adaptation to change linked to decarbonisation in the context of pressing 
strategic  geopolitical  challenges,  this  Regulation  should  enter  into  force  on  the  day 
following that of its publication in the Official Journal of the European Union,] 

HAVE ADOPTED THIS REGULATION: 

Regulation (EU) 2021/1057 is amended as follows: 

(1) 

the following Article 5a is inserted: 

Article 1 

‘Article 5a 

Specific provisions linked to the implementation of ESF+ strand under shared 
management 

(1) 

In 2026, the Commission shall pay 4,5 % of the total support from the ESF+ as 
set out in the decision approving the programme amendment as additional one-
off  pre-financing.  The  one-off  pre-financing  percentage  in  2026  shall  be 
increased  to  9,5%  for  programmes  covering  one  or  more  NUTS2  regions 
bordering Russia, Belarus or Ukraine, provided the programme does not cover 
the entire territory of the Member State. Where, in a Member State, NUTS 2 
regions  bordering  Russia,  Belarus  or  Ukraine  are  included  exclusively  in 
programmes  covering  the  entire  territory  of  that  Member  State,  the  increased 
pre-financing set out in this paragraph shall apply to those programmes. 

The  additional  pre-financing  referred  to  in  the  first  subparagraph  of  this 
paragraph  shall  only  apply  where  reallocations  of  at  least  15%  of  the  financial 
resources  of  the  programme  to  one  or  more  dedicated  priorities  established  in 
accordance with   Articles 12a, 12c and 12d have been approved; provided that 
the request for a programme amendment is submitted by 31 December 2025. 

The  pre-financing  due  to  the  Member  State  which  results  from  programme 
amendments  pursuant  to  reallocation  to  the  priorities  referred  to  in  the  second 
subparagraph of this paragraph shall be counted  as payments made in 2025 for 
the purposes of calculating the amounts to be de-committed in accordance with 
Article 105 of Regulation (EU) 2021/1060, provided the request for programme 
amendment was submitted in 2025. 

the  deadline  for 

(2)  By  way  of  derogation  from  Article  63(2)  and  Article  105(2)  of  Regulation 
(EU)  2021/1060, 
the 
reimbursement  of  costs  as  well  as  for  decommitment  shall  be  31  December 
2030.  That  derogation  shall  only  apply  where  programme  amendments 
reallocating at least 15% of the financial resources of the programme to one or 
more dedicated priorities established in accordance with Articles 12a, 12c and 
12d  of  this  Regulation  in  the  context  of  the  mid-term  review  have  been 
approved. 

the  eligibility  of  expenditure, 

EN 

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(3)  By  way  of  derogation  from  Article  112  of  Regulation  (EU)  2021/1060,  the 
maximum co-financing rate for priorities in programmes covering one or more 
NUTS2  regions  bordering  Russia,  Belarus  or  Ukraine  shall  be  100  %.  The 
higher  co-financing  rate  shall  not  apply  to  programmes  covering  the  entire 
territory of the Member State concerned, unless those regions are included only 
in  programmes  covering  the  entire  territory  of  that  Member  State.  The 
derogation shall only apply where reallocations of at least 15% of the financial 
resources of the programme to one or more dedicated priorities established in 
accordance with Articles 12a, 12c and 12d of this Regulation in the context of 
the  mid-term  review  have  been  approved,  provided  that  the  programme 
amendment is submitted by 31 December 2025. 

(4) 

In addition to the assessment for each programme on the outcome of the mid-
term  review  to  be  submitted  in  accordance  with  Article  18(2)  of  Regulation 
(EU)  2021/1060,  Member  States  may  resubmit  a  complementary    assessment 
as well as related requests for programme amendments, taking into account the  
possibility for dedicated priorities in accordance with Articles 12a, 12c and 12d  
within  2  months  of  the  entry  into  force  of    Regulation  (EU)  XXXX/XXXX 
[this  Regulation].  The  deadlines  set  out  in  Article  18  (3)  of  Regulation  (EU) 
2021/1060 shall apply. 

(2) 

in Article 12a(2), the first subparagraph is replaced by the following: 

‘ In addition to the pre-financing for the programme provided for in Article 90(1) and 
(2) of Regulation (EU) 2021/1060, where the Commission approves an amendment 
of  a  programme  including  one  or  more  priorities  dedicated  to  operations  supported 
by  the  ESF+  contributing  to  the  STEP  objectives  referred  to  in  Article  2  of 
Regulation (EU) 2024/795, it shall make an exceptional pre-financing of 30 % on the 
basis of the allocation to those priorities, provided that the programme amendment is 
submitted to the Commission by 31 December 2025. That exceptional pre-financing 
shall be paid within 60 days of the adoption of the Commission decision approving 
the programme amendment.’; 

(3) 

the following Articles 12c and 12d are inserted: 

‘Article 12c 

Support to the defence industry 

(1)  Member States may decide to programme support to development of skills in 
the defence industry under  dedicated priorities. Such dedicated priorities  may 
support any of the specific objectives  set out in Article 4(1), points (a) to (l).  

(2)  Resources allocated to the dedicated priority as referred to in paragraph 1 shall 
not  be  taken  into  account  when  ensuring  compliance  with  the  thematic 
concentration requirements as set out in Article 7 of this Regulation. 

(3) 

In  addition  to  the  yearly  pre-financing  for  the  programme  provided  for  in 
Article 90(1) and (2) of Regulation (EU) 2021/1060, the Commission shall pay 
30% of the  allocation to the dedicated priorities  referred to  in  paragraph  1  of 
this Article as set out in the decision approving the programme amendment as 
exceptional one-off pre-financing.  

That  exceptional  pre-financing  shall  be  paid  within  60  days  of  the  adoption  of  the 
Commission  decision  approving  the  programme  amendment  in  accordance 
with Article 24 of Regulation (EU) 2021/1060. 

EN 

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(4) 

In  accordance  with  Article  90(5)  of  Regulation  (EU)  2021/1060,  the  amount 
paid  as  exceptional  pre-financing  shall  be  cleared  from  the  Commission 
accounts no later than with the final accounting year. 

In  accordance  with  Article  90(6)  of  Regulation  (EU)  2021/1060,  any  interest 
generated  by  the  exceptional  pre-financing  shall  be  used  for  the  programme 
concerned in the same way as the ESF+ and shall be included in the accounts 
for the final accounting year. 

In accordance with Article 97(1) of Regulation (EU) 2021/1060, the exceptional pre-

financing shall not be suspended. 

In accordance with Article 105(1) of Regulation (EU) 2021/1060, the pre-financing 
to  be  taken  into  account  for  the  purposes  of  calculating  amounts  to  be 
decommitted shall include the exceptional pre-financing paid. 

(5)  By  way  of  derogation  from  Article  112  of  Regulation  (EU)  2021/1060,  the 
maximum co-financing  rate for dedicated priorities  referred to  in  paragraph 1 
of this Article shall be 100%. 

Article 12d 

Support to adaptation linked to decarbonisation  

(1)  Member States may decide to programme support aiming at skilling, up-
skilling and re-skilling with a view to adaptation of workers, enterprises 
and entrepeneurs to change contributing to decarbonisation of production 
capacities  under  dedicated  priorities.  Such  dedicated  priorities  may 
support any of the specific objectives  set out in Article 4(1), points (a) to 
(l). 

(2)  For the purposes  of paragraph 1 of this Article, the Member State shall 
submit  a  request  for  an  amendment  in  accordance  with  Article  24  of 
Regulation  (EU)  2021/1060.  Where  a  Member  State  already  has 
programmes which include one or more priorities fulfilling the conditions 
set  out  in  paragraph  1  of  this  Article,  the  Member  State  shall  submit  a 
request  to  the  Commission  to  consider  the  concerned  priorities  as 
dedicated priorities for the purposes of paragraph 1 of this Article. 

(3) 

In addition to the yearly pre-financing for the programme provided for in 
Article  90(1)  and  (2)  of  Regulation  (EU)  2021/1060,  the  Commission 
shall pay  30% of the allocation to  the dedicated  priorities referred to  in 
paragraph  1  of  this  Article  as  set  out  in  the  decision  approving  the 
programme amendment as exceptional one-off pre-financing.  

That exceptional pre-financing shall be paid within 60 days of the adoption of 
the Commission decision approving the programme amendment in accordance 
with paragraph 2 of this Article. 

(4) 

In  accordance  with  Article  90(5)  of  Regulation  (EU)  2021/1060,  the 
amount  paid  as  exceptional  pre-financing  shall  be  cleared  from  the 
Commission accounts no later than with the final accounting year. 

In  accordance  with  Article  90(6)  of  Regulation  (EU)  2021/1060,  any  interest 
generated  by  the  exceptional  pre-financing  shall  be  used  for  the  programme 
concerned in the same way as the ESF+ and shall be included in the accounts 
for the final accounting year. 

EN 

12 

  EN 

 
 
In  accordance  with  Article  97(1)  of  Regulation  (EU)  2021/1060,  the 
exceptional pre-financing shall not be suspended. 

In  accordance  with  Article  105(1)  of  Regulation  (EU)  2021/1060,  the  pre-
financing to be taken into account for the purposes of calculating amounts to be 
decommitted shall include the exceptional pre-financing paid. 

(5)  By  way  of  derogation  from  Article  112  of  Regulation  (EU)  2021/1060, 
the  maximum  co-financing  rate  for  dedicated  priorities  referred  to  in 
paragraph 1 of this Article shall be 100%.’. 

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

Article 2 

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

Done at Strasbourg, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

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LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT 

1. 

1.1. 

1.2. 

1.3. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE ................................................. 3 

Title of the proposal/initiative ...................................................................................... 3 

Policy area(s) concerned .............................................................................................. 3 

Objective(s) .................................................................................................................. 3 

1.3.1.  General objective(s) ..................................................................................................... 3 

1.3.2.  Specific objective(s) ..................................................................................................... 3 

1.3.3.  Expected result(s) and impact ...................................................................................... 3 

1.3.4. 

Indicators of performance ............................................................................................ 3 

1.4. 

1.5. 

The proposal/initiative relates to: ................................................................................. 4 

Grounds for the proposal/initiative .............................................................................. 4 

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 ............................................................ 4 

1.5.2.  Added value of EU involvement (it may result from different factors, e.g. 

coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this section 'added value of EU involvement' is the value resulting 
from EU action, that is additional to the value that would have been otherwise 
created by Member States alone. ................................................................................. 4 

1.5.3.  Lessons learned from similar experiences in the past .................................................. 4 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 
other appropriate instruments ....................................................................................... 5 

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

redeployment ................................................................................................................ 5 

1.6. 

1.7. 

2. 

2.1. 

2.2. 

2.2.1. 

2.2.2. 

Duration of the proposal/initiative and of its financial impact .................................... 6 

Method(s) of budget implementation planned ............................................................. 6 

MANAGEMENT MEASURES................................................................................... 8 

Monitoring and reporting rules .................................................................................... 8 

Management and control system(s) ............................................................................. 8 

Justification of the budget implementation method(s), the funding implementation 
mechanism(s), the payment modalities and the control strategy proposed .................. 8 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them............................................................................................................ 8 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio between 

the control costs  and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure) ........................................... 8 

2.3. 

3. 

3.1. 

Measures to prevent fraud and irregularities ................................................................ 9 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE ............ 10 

Heading(s) of the multiannual financial framework and expenditure budget line(s) 
affected ....................................................................................................................... 10 

EN 

1 

  EN 

3.2. 

Estimated financial impact of the proposal on appropriations ................................... 12 

3.2.1.  Summary of estimated impact on operational appropriations.................................... 12 

3.2.1.1.  Appropriations from voted budget ............................................................................. 12 

3.2.1.2.  Appropriations from external assigned revenues ....................................................... 17 

3.2.2.  Estimated output funded from operational appropriations......................................... 22 

3.2.3.  Summary of estimated impact on administrative appropriations ............................... 24 

3.2.3.1. Appropriations from voted budget .............................................................................. 24 

3.2.3.2.  Appropriations from external assigned revenues ....................................................... 24 

3.2.3.3.  Total appropriations ................................................................................................... 24 

3.2.4.  Estimated requirements of human resources.............................................................. 25 

3.2.4.1.  Financed from voted budget....................................................................................... 25 

3.2.4.2.  Financed from external assigned revenues ................................................................ 26 

3.2.4.3.  Total requirements of human resources ..................................................................... 26 

3.2.5.  Overview of estimated impact on digital technology-related investments ................ 28 

3.2.6.  Compatibility with the current multiannual financial framework.............................. 28 

3.2.7.  Third-party contributions ........................................................................................... 28 

3.3. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

4.5. 

Estimated impact on revenue ..................................................................................... 29 

DIGITAL DIMENSIONS .......................................................................................... 29 

Requirements of digital relevance .............................................................................. 30 

Data ............................................................................................................................ 30 

Digital solutions ......................................................................................................... 31 

Interoperability assessment ........................................................................................ 31 

Measures to support digital implementation .............................................................. 32 

EN 

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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)  2021/1057  as  regards  specific  measures  to 
address strategic challenges 

1.2. 

Policy area(s) concerned  

Cohesion policy: European Social Fund Plus (ESF+) 

1.3. 

Objective(s) 

1.3.1.  General objective(s) 

The cohesion policy funds, including the ESF+, provide financing in support of the 
harmonious development of the EU, through actions that lead to the strengthening of 
its economic, social and territorial cohesion. In support of this overarching objective, 
the Funds also contribute to advancing key policy objectives, including strengthening 
the  overall  competitiveness  and  the  strategic  autonomy  of  the  EU,  and  addressing 
challenges  and  opportunities  that  are  associated  with  the  green,  digital  and  social 
transitions. 

1.3.2. 

Specific objective(s) 

Specific objective No 1 

Accelerate the implementation  of 2021-2027  cohesion  policy programmes financed 
by the ESF+ by enhancing the flexibility and provide areas of simplification for the 
use of cohesion policy funds.  

Specific objective No 2  

Provide support from the ESF+ under the 2021-2027 programmes to development of 
skills in the defence industry as a short-term reaction to recent geopolitical events by 
providing  additional  possibilities  for  Member  States  to  refocus  resources  to  the 
defence sector.  

Further  facilitate  industrial  adjustment  linked  to  the  decarbonisation  of  production 
processes  and  products  by  providing  additional  possibilities  for  Member  States  to 
refocus resources to skilling, up-skilling and re-skilling with a view to adaptation of 
workers,  enterprises  and  entrepreneurs  to  change  throughout  the  decarbonisation 
process. 

Address specific territorial challenges of the Regions bordering Ukraine, Russia and 
Belarus. 

1.3.3.  Expected result(s) and impact 

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

Specific objective No 1  

Maximising  the  use  of  the  resources  allocated  to  the  ESF+  under  the  2021-2027 
MFF.  

EN 

3 

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Specific objective No 2  

Increased level of skills  matching the demand of the defence industry as well as in 
sectors affected by the decarbonisation process.  

Increased  support  to  address  the  specific  challenges  of  regions  bordering  Russia, 
Belarus and Ukraine. 

1.3.4. 

Indicators of performance 

Specify the indicators for monitoring progress and achievements. 

Specific objective No 1  

Financial  data  on  the  amounts  related  to  operations  selected  and  implemented  by 
Member States and on disbursements made from the EU budget to Member States.  

Specific objective No 2  

Common Output Indicator – Total number of participants  

1.4. 

The proposal/initiative relates to:  

 a new action  
X  a new action following a pilot project / preparatory action10  

 the extension of an existing action  

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

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 

Recent  economic  and  geopolitical  events  have  brought  to  the  front  important 
priorities that require refocusing of resources within cohesion policy, notably in the 
ESF+. The specific actions within the scope of this amendment are already possible 
to  be  financed  under  the  current  legal  framework  governing  the  ESF+.  Therefore, 
they are already in line with the overall objective of strengthening economic, social 
and  territorial  cohesion.  However,  the  pace  and  volume  of  investments  need  to  be 
increased.  The  ongoing  mid-term  review  of  the  2021-2027  cohesion  policy 
programmes provides a crucial opportunity to assess how these programmes can help 
deliver on the  newly emerging  priorities. Therefore, the current  amendment  creates 
incentives  and  flexibilities  to  allow  Member  States  to  put  a  greater  focus  with 
resources from the MFF on these priorities within a relatively short time frame. 

10 

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

EN 

4 

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

The  amendment  is  designed  to  allow  Member  States  to  direct  necessary  cohesion 
policy funding to investments in policy areas that have been identified as priorities, 
and  to  maintain  and  strengthen  the  economic,  social  and  territorial  cohesion  of  the 
EU. 

Specific objective 1:  

Cohesion  policy  funding  is  vital  for  economic  stability,  fairness,  and  integration  in 
the EU. It plays a primary role in reducing regional disparities and ensuring balanced 
development across all Member States. It ensures that all regions have the resources 
to  grow,  innovate,  and  adapt  to  future  challenges  while  promoting  EU-wide 
solidarity. Maintaining and accelerating the flow of funds to the Member States from 
the  EU  budget  is  essential  for  ensuring  the  necessary  level  of  public  funding  in 
Member States and to achieve the cohesion objectives enshrined in the Treaty. 

Specific objective 2: 

Development  of  skills  in  the defence industry: The Versailles Declaration of March 
2022,  as  well  as  communications  JOIN(2022)  24  and  COM(2022)  60  already 
outlined  the  need  for  the  EU  to  step  up  its  own  preparedness,  capability  and 
resilience  to  better  protect  its  citizens.  The  rapidly  evolving  geopolitical  context  of 
the  past  months  has  emphasised  the  need  to  step  up  the  efforts.  The  European 
Council  conclusions  of  6  March  2025  stress  “that  Europe  must  become  more 
sovereign, more responsible for its own defence and better equipped to act and deal 
autonomously  with  immediate  and  future  challenges  and  threats  with  a  360° 
approach”.  To  that  end,  the  EU  will  accelerate  the  mobilisation  of  the  necessary 
instruments  and  financing.  The  European  Council  “calls  on  the  Commission  to 
propose  additional  funding  sources  for  defence  at  EU  level,  including  by  means  of 
additional possibilities and incentives offered to  all Member States, on the basis of 
the  principles  of  objectivity,  non-discrimination  and  equal  treatment  of  Member 
States,  in  the  use  of  their  current  allocations  under  the  relevant  EU  funding 
programmes, and to swiftly present relevant proposals”. 

Adaptation  of  workers,  entrepreneurs  and  enterprises  to  change  throughout  the 
decarbonisation  process:  Strengthening  the  competitiveness  and  resilience  in 
strategic  sectors  and  reducing  the  dependencies  of  the  European  economy  through 
the green and digital transformations  has been the EU compass  over the last years. 
The  proposal  gives  further  impetus  to  use  the  scale  of  the  EU  to  invest  in  areas 
important for the EU’s future competitiveness. 

1.5.3.  Lessons learned from similar experiences in the past 

Recent amendments to the 2014-2020 and 2021-2027 Regulations in the context of 
the COVID-19 crisis, the military aggression of Russia in Ukraine, the energy crisis, 
and competitiveness (STEP) have resulted in an important uptake of funds to support 
relevant investments. 

EN 

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1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 

other appropriate instruments 

The  amendment  does  not  alter  the  existing  cohesion  policy  allocations  and  is 
intended  to  help  accelerate  investments  of  the  Funds  in  an  efficient  and  effective 
manner. 

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

redeployment 

The  amendment  does  not  alter  the  core  structure  of  the  existing  cohesion  policy 
regulatory  framework,  including  for  the  ESF+,  nor  does  it  alter  the  fixed  Member 
State allocations. It is intended to emphasise and incentivise support to measures that 
are  already  possible  within  the  scope  of  the  ESF+  and  that  are  complementary  to 
investments  through  other  financing  options  either  at  EU  level  or  at  Member  State 
level. 

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1.6. 

Duration of the proposal/initiative and of its financial impact 

X limited duration  

–    financial impact from 2026 to 2029 for payment appropriations. No impact on  

commitment appropriations.  

1.7.  Method(s) of budget implementation planned11  

–    

Shared management with the Member States  

Comments  

11 

Details of budget implementation methods and references to the Financial Regulation may be found on 
the BUDGpedia site: https://myintracomm.ec.europa.eu/corp/budget/financial-rules/budget-
implementation/Pages/implementation-methods.aspx. 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

The monitoring and reporting rules laid down in Regulation (EU) 2021/1060 remain 
fully applicable:  

Programme monitoring committee: minimum once a year  

Annual performance review between the Member State and the Commission  

Data transmission per programme: five times per year  

Annual control (audit) report. 

A  final  performance  report  for  each  programme  needs  to  be  submitted  by  15 
February 2031 

2.2.  Management and control system(s)  

2.2.1. 

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

The proposal for amendment does not alter the existing shared management budget 
implementation  method,  nor  does  it  change  the  implementation  mechanisms,  the 
payment modalities or the control strategies defined in Regulation (EU) 2021/1060. 

2.2.2. 

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

No  specific  risks  have  been  identified.  The  proposal  for  amendment  does  not 
structurally  alter  the  risk-management  and  control  setup  of  the  cohesion  policy 
programmes, which is considered appropriate for the envisaged investments. 

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

The control framework of cohesion policy remains unchanged and fully  applicable. 
This has been designed to protect the financial interests of the EU and adjusted over 
multiple programming periods to take into account the recommendations of ECA and 
OLAF. 

2.3.  Measures to prevent fraud and irregularities  

Member States need to comply with the existing cohesion policy control framework, 
and  need  to  have  in  place  a  management  and  control  system  that  allows  for  the 
prevention, detection and correction and reporting on irregularities, including fraud. 

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3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

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

•  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

Number  

Diff./Non-
diff.12 

from 
EFTA 
countries
13 

from 
candidate 
countries 
and 
potential 
candidates
14 

From 
other 
third 
countries 

other assigned 
revenue 

 2a 

07.02.01  European  Social  Fund  Plus  (ESF+) 
Operational Expenditure 

Diff. 

NO 

NO 

NO 

NO 

3.2. 

Estimated financial impact of the proposal on appropriations  

3.2.1. 

Summary of estimated impact on operational appropriations  

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

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

3.2.1.1.  Appropriations from voted budget 

12 
13 
14 

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

EUR million (to three decimal places) 

EN 

9 

EN 

 
 
 
  
  
 
Heading of multiannual financial framework  

Number 

2a 

DG: EMPL 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

Operational appropriations  

Budget line 07 02 01 

Commitments 

Payments 

(1a) 

(2a) 

Appropriations of an administrative nature financed from the envelope of specific programmes15 
Budget line 

(3) 

500,000  

-500,000  

TOTAL appropriations 
for DG EMPL 

Commitments 

Payments 

=1a+1b+3 

=2a+2b+3 

0.000 

0.000 

0.000 

0.000 

0.000 

500.000 

0.000 

-500.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

operational 

appropriations  

Commitments 

Payments 

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

TOTAL appropriations under 
HEADING 2a 

Commitments 

of the multiannual financial framework 

Payments 

(4) 

(5) 

(6) 

=4+6 

=5+6 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

500.000 

-500.000 

0.000 

0.000 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

15 

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 

10 

EN 

 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
 
 
  
 
 
 
 
 
 
 
 
•  TOTAL  operational  appropriations 
operational headings) 

(all 

Commitments 

Payments 

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

TOTAL appropriations Under          

Heading 1 to 6 

Commitments 

of the multiannual financial framework 
(Reference amount) 

Payments 

(4) 

(5) 

(6) 

=4+6 

=5+6 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

500.000 

-500.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

500.000 

-500.000 

0.000 

0.000 

Heading of multiannual financial  framework  

7 

‘Administrative expenditure’16 

DG: EMPL 

 Human resources  
 Other administrative expenditure  

TOTAL DG EMPL 

Appropriations  

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

0.000 

0.000 

0.000 

0.376 

0.000 

0.376 

0.376 

0.000 

0.376 

0.376 

0.000 

0.376 

TOTAL 
MFF 2021-
2027 

1.128 

0.000 

1.128 

TOTAL appropriations under HEADING 7 of the multiannual financial 
framework  

(Total 
commitments 
= Total 
payments) 

0.000 

0.376 

0.376 

0.376 

1.128 

EUR million (to three decimal places) 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

16 

The necessary appropriations should be determined using the annual average cost figures available on the appropriate BUDGpedia webpage. 

EN 

11 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
TOTAL appropriations under HEADINGS 1 to 7 

Commitments 

0.000 

0.376 

0.376 

0.376 

of the multiannual financial framework  

Payments 

0.000 

0.376 

500.376 

-499.624 

1.128 

0.000 

3.2.2.  Estimated output funded from operational appropriations (not to be completed for decentralised agencies) 

Year  
2024 

Year  
2025 

Year  
2026 

Year  
2027 

OUTPUTS 

Commitment appropriations in EUR million (to three decimal places) 

Enter as many years as necessary to show the 
duration of the impact (see Section1.6) 

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  

 

Type17 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 118… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTALS 

17 
18 

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 Section 1.3.2. ‘Specific objective(s)’  

EN 

12 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3. 

Summary of estimated impact on administrative appropriations  

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

administrative nature  

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

nature, as explained below 

3.2.3.1. Appropriations from voted budget 

VOTED APPROPRIATIONS 

HEADING 7 

Human resources  

Other administrative expenditure  

Subtotal HEADING 7 

Outside HEADING 7 

Human resources  

Other expenditure of an administrative nature 

Subtotal outside HEADING 7 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL 
2021 - 
2027 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.376 

0.000 

0.376 

0.000 

0.000 

0.000 

0.376 

0.000 

0.376 

0.000 

0.000 

0.000 

0.376 

0.000 

0.376 

0.000 

0.000 

0.000 

1.128 

0.000 

1.128 

0.000 

0.000 

0.000 

TOTAL 

0.000 

0.376 

0.376 

0.376 

1.128 

Considering the overall strained situation in Heading 7, in terms of both staffing and the level 
of  appropriations,  the  human  resources  required  will  be  met  by  staff  from  the  DG  who  are 
already assigned to the management of the action and/or have been redeployed within the DG 
or other Commission services. 

3.2.4.  Estimated requirements of human resources  

–    The proposal/initiative does not require the use of human resources  

–   The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below 

3.2.4.1.  Financed from voted budget 

Estimate to be expressed in full-time equivalent units (FTEs)19 

VOTED APPROPRIATIONS 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

 Establishment plan posts (officials and temporary staff) 

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

20 01 02 03 (EU Delegations) 

01 01 01 01 (Indirect research) 

01 01 01 11 (Direct research) 

Other budget lines (specify) 

• External staff (inFTEs) 

0 

0 

0 

0 

0 

2 

0 

0 

0 

0 

2 

0 

0 

0 

0 

2 

0 

0 

0 

0 

19 

Please specify below the table how many FTEs within the number indicated are already assigned to the 
management of the action and/or can be redeployed within your DG and what are your net needs. 

EN 

13 

  EN 

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

20 02 03 (AC, AL, END and JPD in the EU Delegations) 

Admin. Support 
line 
[XX.01.YY.YY] 

- at Headquarters 

- in EU Delegations  

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

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

Other budget lines (specify) - Heading 7 

Other budget lines (specify) - Outside Heading 7 

TOTAL 

3.2.4.3.  Total requirements of human resources 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2 

0 

0 

0 

0 

0 

0 

0 

0 

2 

0 

0 

0 

0 

0 

0 

0 

0 

2 

TOTAL VOTED APPROPRIATIONS                                                   

Year 
+                                                                                               
2025 

2024 

Year 

EXTERNAL ASSIGNED REVENUES 

Year 

Year 

2026 

2027 

 Establishment plan posts (officials and temporary staff) 

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

20 01 02 03 (EU Delegations) 

01 01 01 01 (Indirect research) 

01 01 01 11 (Direct research) 

Other budget lines (specify) 

• External staff (in full time equivalent units) 

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

20 02 03 (AC, AL, END and JPD in the EU Delegations) 

Admin. Support 
line  
[XX.01.YY.YY] 

- at Headquarters 

- in EU Delegations  

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

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

Other budget lines (specify) - Heading 7 

Other budget lines (specify) - Outside Heading 7 

TOTAL 

The staff required to implement the proposal (in FTEs):  

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2 

2 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2 

2 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2 

To be covered by 
current staff 
available in the 
Commission 
services  

Exceptional additional staff* 

To be financed 
under Heading 7 
or Research 

To be financed 
from BA line 

To be financed 
from fees 

2 

N/A 

N/A 

N/A 

Establishment 
plan posts 

External 

staff 

EN 

14 

  EN 

 
 
 
 
 
 
 
 
(CA, SNEs, INT) 

Description of tasks to be carried out by: 

Officials and temporary staff 

Contacts  with  the  Member  States,  guidance  to  submit  their  potential  amendments, 
follow-up  of  the  amendments  and  of  the  related  decisional  procedure,  monitoring  of 
the implementation of these amendments.  

External staff 

3.2.5.  Overview of estimated impact on digital technology-related investments 

 Adaptation  of  SFC2021  Front-office  could  be  required  in  order  to  handle  the 
addition  of  the  sectoral  field  information  .  The  effort  estimates  to  adapt  the  digital 
solution  is  in  the  range  of  20m.d.  to  40m.d.  However,  no  budget  is  requested  to 
implement  the  change:  it  will  be  covered  under  the  SFC2021  Front-Office  budget 
2025 that covers the evolutive maintenance costs. 

TOTAL Digital and IT appropriations 

Year 

Year 

Year 

Year 

2024 

2025 

2026 

2027 

TOTAL 
MFF 
2021 - 
2027 

HEADING 7 

IT expenditure (corporate)  

Subtotal HEADING 7 

Outside HEADING 7 

Policy IT expenditure on operational 
programmes 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Subtotal outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

0.000 

0.000 

0.000 

0.000 

0.000 

3.2.6.  Compatibility with the current multiannual financial framework  

The proposal/initiative: 

–  can be fully financed through redeployment within the relevant heading of the 

multiannual financial framework (MFF) 

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

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

–    requires a revision of the MFF 

3.2.7.  Third-party contributions  

The proposal/initiative: 

–  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) 

EN 

15 

  EN 

 
 
 
 
  
Specify the co-financing body  

TOTAL appropriations co-
financed  

Year  
2024 

n.a. 

n.a. 

Year  
2025 

n.a. 

Year  
2026 

n.a. 

Year  
2027 

n.a. 

n.a. 

n.a. 

n.a. 

Total 

n.a. 

n.a. 

3.3. 

Estimated impact on revenue  

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

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

– 

– 

– 

 

 

on own resources  

on other revenue 

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

Budget revenue line: 

Appropriations 
available for the 
current financial 
year 

     EUR million (to three decimal places) 

Impact of the proposal/initiative20 

Year 2024 

Year 2025  Year 2026 

Year 2027 

Article …………. 

n.a. 

n.a. 

n.a. 

n.a. 

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). 

4. 

DIGITAL DIMENSIONS 

4.1. 

Requirements of digital relevance 

The  digital  requirements  are  limited  to  adaptation  and  extension  of  already  implemented 
solutions  or  shared  management  programmes,  namely  SFC2021.  The  adaptations  will 
correspond to the definition and inclusion of specific priorities in amended programmes. 

4.2. 

Data 

The data required is an extension and adaptation of the data model already implemented for 
the shared management programmes. The once-only principle is followed and this being an 
extension of an existing solution ensures full reuse of existing data. 

20 

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 

16 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.3. 

Digital solutions 

The digital solution is a minor adaptation of the SFC2021 platform, which is the tool used 
for all shared management programmes. 

4.4. 

Interoperability assessment 

SFC2021 is already in place and is used by all parties. The tool is interoperable with other 
systems and uses standard techniques for information exchange. 

4.5.  Measures to support digital implementation 

The changes required in SFC2021 will be planned and implemented in such a way that the 
new  requirements  are  ready  at  the  time  of  the  adoption  and  entry  into  force  of  the  final 
regulation. 

EN 

17 

  EN