Proposal for a COUNCIL REGULATION amending Council Regulation (EC) No 332/2002 as regards funding arrangements and the use of a diversified funding strategy
Date: 2025-10-02
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: EU borrowing, EU loan, balance of payments assistance, balance-of-payments deficit, capital movement, euro area, financial stability

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   EUROPEAN COMMISSION  Brussels, 2.10.2025  COM(2025) 595 final 2025/0313 (APP)  Proposal for a COUNCIL REGULATION amending Council Regulation (EC) No 332/2002 as regards funding arrangements and the use of a diversified funding strategy  {SWD(2025) 286 final}  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

• 
Council Regulation (EC) No 332/20021, adopted on 18 February 2002, establishes a medium-
term financial assistance facility enabling loans to be granted to one or more Member States 
that  have  not  adopted  the  euro  and  are  experiencing,  or  are  seriously  threatened  with, 
difficulties in their balance of current payments or capital movements. The facility’s funding 
method set out in Regulation (EC) No 332/2002 is currently based on back-to-back financing. 
Under  this  funding  method,  the  Commission  conducts  market  operations  based  on  the 
requirements  of  each  specific  lending  situation,  meaning  each  borrowing  transaction  by  the 
Commission is directly linked to a disbursement need. 

After the adoption of Regulation (EC) No 332/2002, the Commission has been authorised to 
implement  a  different  funding  method  to  fund  programmes  of  financial  assistance. 
Specifically,  Article  224  of  Regulation  (EU,  Euratom)  2024/25092  provides  for  the 
implementation  of  a  diversified  funding  strategy.  This  method  of  funding  allows  the 
Commission to decouple the timing and the maturity of single funding transactions from the 
disbursements  to  beneficiaries.  A  common  liquidity  pool  financed  by  the  issuance  of  short-
term funding enables the Commission to organise payments independently of the exact timing 
of the long-term bond issuance.  

The  diversified  funding  strategy  offers  several  advantages  over  the  back-to-back  approach. 
First,  it avoids the need to  contract  a fixed amount  of EU borrowings on capital  markets  or 
from  financial institutions  in  volatile or adverse conditions to fund programmes of financial 
assistance,  allowing  for  payments 
to  be  made 
independently of the market conditions prevailing at the time of the disbursement. Second, it 
enables the Commission to consolidate the financial needs of multiple assistance programmes, 
preventing 
limited  pool  of  funding 
opportunities. This consolidation simplifies management of funding operations, reduces costs, 
and  avoids  the  fragmentation  of  Union  debt  securities,  thereby  enhancing  their  liquidity. 
Consequently,  the  cost-effectiveness  of  financing  for  financial  assistance  programmes  is 
enhanced, benefiting both the Union and the beneficiaries. 

individual  programmes  from  competing  for  a 

to  Union  programme  beneficiaries 

As  the  financial  assistance  available  to  Member  States  threatened  with  difficulties  in  their 
balance of current payments or capital movement under the facility is meant to be disbursed 
rapidly  in  order  to  restore  financial  stability,  and  as  such  assistance  is  often  disbursed  in 
volatile and adverse market conditions, funding arrangements for using the facility should be 
amended  in  light  of  the  experience  gained  and  the  significant  advantages  of  the  diversified 
funding strategy compared to the back-to-back funding method. This amendment would also 
enable the Commission  to  further  consolidate the financing  of EU  financial  programmes by 
incorporating the facility's funding requirements into its general funding strategy. 

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Council Regulation (EC) No 332/2002 of 18 February 2002 establishing a facility providing medium-
term  financial  assistance  for  Member  States'  balances  of  payments  (OJ  L  53,  23.2.2002,  p.  1, 
ELI: http://data.europa.eu/eli/reg/2002/332/oj). 

Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 
2024  on  the  financial  rules  applicable  to  the  general  budget  of  the  Union  (recast)  (OJ  L,  2024/2509, 
26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj).  

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Against  this  background,  this  proposal  aims  at  introducing  technical  amendments  to 
Regulation  (EC)  No  332/2002  in  order  to  modify  the  funding  arrangements  for  using  the 
facility and specifically to provide for a diversified funding strategy. 

• 

Consistency with existing policy provisions in the policy area 

The proposed amendments to Regulation (EC) No 332/2002 are consistent with the existing 
policy provisions in the policy area, considering the significant changes that have occurred in 
the  regulatory  landscape  since  its  adoption  in  2002.  In  particular,  the  European  Financial 
Stabilisation Mechanism3, established in 2010 as an EU-wide instrument and broadly similar 
in  its  workings  to  the  facility  under  Regulation  (EC)  No  332/2002,  allowed  borrowing 
operations  in  anticipation  of  later  loan  disbursements,  departing  from  the  Commission’s 
traditional  back-to  back  financing.  In  addition,  since  2022,  the  Commission  has  been 
authorised  to  implement  a  diversified  funding  method  to  fund  programmes  of  financial 
assistance4. Specifically, Article 224 of Regulation (EU, Euratom) 2024/2509 provides for the 
implementation  of  a  diversified  funding  strategy,  except  in  duly  justified  cases,  for  the 
borrowing and debt management operations to fund programmes of financial assistance.  

• 

Consistency with other Union policies 

The proposed amendments will contribute to the Commission’s simplification agenda aimed 
at  boosting  competitiveness  and  safeguarding  economic,  social  and  environmental  goals  by 
streamlining  the  process  of  funding  for  financial  assistance  programmes  available  under 
Regulation (EC) No 332/2002.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal basis of the proposal is Article 352 of the TFEU.  

Ex Article 308 of the Treaty establishing the European Community (current Article 352 of the 
TFEU)  was  used  as  the  legal  basis  for  Regulation  (EC)  No  332/2002,  which  would  be 
amended by the current proposal. 

• 

Subsidiarity (for non-exclusive competence)  

The proposed amendments conform with the subsidiarity principle, as set out in Article 5 of 
the  Treaty  on  the  European  Union.  The  objectives  of  this  proposal,  namely  addressing  the 
necessary amendments relating to the transition to the diversified funding strategy within the 
scope of the facility providing medium-term financial assistance for Member States' balances 
of  payments,  cannot  be  achieved  by  action  at  national  level  as  they  require  changes  to  EU 
legislation. 

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Council Regulation (EU) No 407/2010 of 11 May 2010 establishing a European financial stabilisation 
mechanism (OJ L 118, 12.5.2010, p.1, ELI: http://data.europa.eu/eli/reg/2010/407/oj). 
The  diversified  funding  strategy  as  a  general  borrowing  method  was  established  by  Regulation  (EU, 
Euratom)  2022/2434  of  the  European  Parliament  and  of  the  Council  of  6  December  2022  amending 
Regulation (EU, Euratom) 2018/1046 as regards the establishment of a diversified funding strategy as a 
general borrowing method (OJ L 319, 13.12.2022, p. 1, ELI: http://data.europa.eu/eli/reg/2022/2434/oj).  

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• 

Proportionality 

The proposal complies with the proportionality principle, as set out in Article 5 of the Treaty 
on the European Union. The amendments proposed concern only those parts of the Regulation 
where modifications are necessary for a transition to a diversified funding strategy and do not 
go beyond the minimum required to achieve the stated objectives. 

• 

Choice of the instrument 

A Council Regulation is the only suitable instrument to amend the existing  Regulation (EC) 
No 332/2002. 

3. 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

• 
A  backward-looking  assessment  of  Regulation  (EC)  No  332/2002  was  published  in  20245 
assessing if the facility still  meets in its principle, arrangements and ceiling, the need which 
led  to  its  creation  (hereinafter:  ‘Report’).  The  Report  found  that  while  the  facility  has  been 
successful  in  the past, the landscape of the EU’s general  financial assistance  has  undergone 
some major change. In particular, the report noted that Regulation (EU, Euratom) 2018/10466, 
allowing  the  Commission  to  implement  a  diversified  funding  strategy  comprising  the 
borrowings authorised under Article 5(1) of Council Decision (EU, Euratom) 2020/2053 and, 
except  in  duly  justified  cases,  borrowing  and  debt  management  operations  to  fund 
programmes of financial  assistance.  Against this background and considering that, aside the 
2009  legislative  amendments  which  increased  the  ceiling  of  the  facility  and  clarified  the 
responsibilities  of  the  Commission  and  of  the  Member  States,  the  workings  of  the  facility 
under  Regulation  (EC)  No  332/2002  have  remained  unaltered  since  2002,  the  Report  found 
that improvements to the facility’s funding arrangements could be considered.  

• 

Stakeholder consultations 

The Report was discussed by the Economic and Financial Committee (hereinafter: ‘EFC’). In 
its  opinion7  issued  on  the  Report,  the  EFC  saw  scope  to  update  the  funding  method  of  the 
facility, in light of the 2022 amendments to the Financial Regulation  generalising the use of 
the  diversified  funding  strategy,  in  order  to  promote  efficient  and  cost-minimising 
implementation  of  any  future  facility  operations  under  Regulation  (EC)  No  332/2002.  The 

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COM(2024) 41 final, 29.1.2024. 

Regulation  (EU,  Euratom)  2022/2434  of  the  European  Parliament  and  of  the  Council  of  6 December 
2022  amending  Regulation  (EU,  Euratom)  2018/1046  as  regards  the  establishment  of  a  diversified 
funding  strategy  as  a  general  borrowing  method,  no  longer  in  force,  replaced  by  Regulation  (EU, 
Euratom)  2024/2509  of  the  European  Parliament  and  of  the  Council  of  23 September  2024  on  the 
financial rules applicable to the general budget of the Union. 
EFC opinion on the Facility Providing Medium-Term Financial Assistance to Member  States' balance 
of  payments  pursuant  to  Council  Regulation  (EC)  No  332/2002,  25  March  2024,  ecfin.cef.cpe 
(2024)1688523. 

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Council of the European Union conclusions8 issued on the Report similarly stated that there is 
scope to update the funding modalities. 

• 

Collection and use of expertise 

Due  to  the  nature  of  the  proposed  amendments,  the  collection  and  use  of  expertise  was  not 
required. 

• 

Impact assessment 

The proposed amendments focus on targeted changes to the existing regulation. The proposal 
does not have implications for the EU budget. For these reasons, no formal impact assessment 
was carried out. 

Regulatory fitness and simplification 

• 

N/A 

• 

Fundamental rights 

This proposal does not have consequences for the protection of fundamental rights. 

4. 

BUDGETARY IMPLICATIONS 

 The proposal does not have implications for the EU budget. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The proposed amendments do not require measures to facilitate their implementation and do 
not pose implementation challenges for Member States. 

Article  10  of  the  Regulation  (EC)  No  332/2002  requires  that  every  three  years  the  Council 
examines, on the basis of a report from the Commission and after the  EFC has delivered an 
opinion, whether the facility established still meets, in its principle, arrangements and ceiling, 
the  need  which  led  to  its  creation.  The  last  report  from  the  Commission  was  published  in 
2024. 

• 

Explanatory documents (for directives) 

N/A 

• 

Detailed explanation of the specific provisions of the proposal 

The  proposal  makes  well-framed  and  targeted  changes  that  are  technical  in  nature  to 
Regulation (EC) No 332/2002.  The proposal contains two articles. The first article specifies 
the  proposed  amendments  of  the  Regulation  (EC)  No  332/2002,  while  the  second  article  is 
related to the entry into force of the proposed amending Council Regulation.  

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Council  conclusions  on  the  Union's  facility  providing  medium-term  financial  assistance  for  Member 
States' balances of payments pursuant to Council Regulation (EC) No 332/2002, approved by Coreper, 
Part 2, on 10 April 2024, 8300/24, 8302/24 ECOFIN. 

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The  amendments  to  Article  7  of  the  Regulation  (EC)  No  332/2002  organise  the  financial 
assistance  under  the  diversified  funding  strategy  provided  for  in  Article  224  of  Regulation 
(EU,  Euratom)  2024/2509.  The  deletion  of  Article  1  paragraph  2  of  Regulation  (EC)  No 
332/2002 is proposed to ensure consistency with the revised funding strategy and to eliminate 
redundancy  in  light  of  the  amendments  to  Article  7  of  Regulation  (EC)  No  332/2002.

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2025/0313 (APP) 

Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EC) No 332/2002 as regards funding arrangements and 
the use of a diversified funding strategy  

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 352 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 Parliament9, 
Having regard to the opinion of the European Central Bank10, 

Acting in accordance with a special legislative procedure, 

Whereas:  

(1) 

(2) 

Council  Regulation  (EC)  No  332/200211  establishes  a  medium-term  financial 
assistance facility enabling loans to be granted to one or more Member States which 
have  not  adopted  the  euro  and  which  are  experiencing,  or  are  seriously  threatened 
with, difficulties in their balance of current payments or capital movements. 

After  the  adoption  of  Regulation  (EC)  No  332/2002,  the  Commission  has  been 
authorised to  implement a funding  method different to  that  currently  provided for  in 
Regulation (EC) No 332/2002 to fund programmes of financial assistance. Article 224 
of Regulation (EU, Euratom) 2024/2509 of the European Parliament and the Council12  
provides  for  the  implementation  of  a  diversified  funding  strategy.  That  method  of 
funding  allows  the  Commission  to  decouple  the  timing  and  the  maturity  of  single 
funding transactions from the disbursements to beneficiaries. A common liquidity pool 
financed  by  the  issuance  of  short-term  funding  enables  the  Commission  to  organise 
payments independently of the exact timing of the long-term bond issuance. 

(3) 

The  rules  on  the  diversified  funding  strategy  set  out  in  Regulation  (EU,  Euratom) 
2024/2509 do not apply to programmes of financial assistance for which the basic acts 
have  entered  into  force  on  or  before  9  November  2022.  As  Regulation  (EC)  No 
332/2002 neither entered into force nor has been amended since that time, it needs to 

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10 
11 

12 

OJ C , , p. . 
OJ C , , p. . 
Council Regulation (EC) No 332/2002 of 18 February 2002 establishing a facility providing medium-
term  financial  assistance  for  Member  States'  balances  of  payments  (OJ  L  53,  23.2.2002,  p.  1, 
ELI: http://data.europa.eu/eli/reg/2002/332/oj). 
Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 
2024  on  the  financial  rules  applicable  to  the  general  budget  of  the  Union  (recast)  (OJ  L,  2024/2509, 
26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj). 

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(4) 

(5) 

be  amended  to  extend  the  application  of  the  diversified  funding  strategy  to  that 
Regulation.  The  transition  to  a  diversified  funding  strategy  would  further  necessitate 
the  removal  of  certain  provisions  from  Regulation  (EC)  No  332/2002  to  ensure  the 
alignment of the legal framework with this funding method.  

The  diversified  funding  strategy  offers  several  advantages  over  the  funding  method 
under  Regulation  (EC)  No  332/2002.  Specifically,  it  avoids  the  need  for  the 
Commission to contract borrowings on capital markets or with financial institutions in 
volatile or adverse conditions to fund programmes of financial assistance. In addition, 
it  enables  the  Commission  to  consolidate  the  financial  needs  of  multiple  financial 
assistance  programme,  thereby  simplifying  management  of  funding  operations, 
reducing costs, and avoiding the fragmentation of Union debt securities. 

As  medium-term  financial  assistance  to  Member  States  experiencing  or  seriously 
threatened with difficulties in their balance of current payments or capital movement 
under Regulation (EC) No 332/2002 is often disbursed in volatile and adverse market 
conditions, the funding arrangements for using the facility should be amended in light 
of  the  experience  gained  and  the  significant  advantages  of  the  diversified  funding 
strategy compared to the back-to-back funding method.  

(6) 

Loan  agreements  with  Member  States  concluded  after  the  entry  into  force  of  this 
amendment  should  contain  a  provision  on  early  reimbursement  to  be  exercised 
following a mutual agreement on the conditions.  

(7) 

Regulation (EC) No 332/2002 should therefore be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Amendments to Regulation (EC) No 332/2002 

Regulation (EC) No 332/2002 is amended as follows: 

(1) in Article 1, paragraph 2 is deleted; 

(2) Article 7 is replaced by the following: 

‘Article 7 

1. In order to finance loans under the Union medium-term financial assistance facility, 
the Commission shall be empowered, on behalf of the Union, to borrow the necessary 
funds on the capital markets or from financial institutions in accordance with Article 
224 of Regulation (EU, Euratom) 2024/2509. 

2. In addition to the elements laid down in Article 223(4) of Regulation (EU, Euratom) 
2024/2509,  loan  agreements  shall  lay  down  the  maximum  loan  amount,  the 
availability  period,  the  maximum  duration  of  each  disbursement  of  the  loan  and  the 
detailed terms and conditions of the support.’ 

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Article 2 

Entry into force and application 

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

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

Done at Brussels, 

For the Council 
The President 

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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 

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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 

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1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative 

Proposal for a Council Regulation amending Council Regulation (EC) No 332/2002 
as regards funding arrangements and the use of a diversified funding strategy  

1.2. 

Policy area(s) concerned  

Providing  medium-term  financial  assistance  for  Member  States  experiencing  or 
seriously threatened with difficulties as regards their balance of payments. 

1.3. 

Objective(s) 

1.3.1.  General objective(s) 

The general objective of the proposal is to amend Regulation (EC) No 332/2002 to 
change  the  funding  method  of  the  facility  from  the  back-to-back  funding  method 
towards  a  diversified  funding  strategy,  bringing  it  in  line  with  the  unified  funding 
strategy of the Commission.  

1.3.2. 

Specific objective(s) 

To  implement  the  diversified  funding  strategy,  the  proposed  amendments  will 
modify and remove certain provisions from Regulation (EC) No 332/2002 to clarify 
the funding arrangements and ensure the alignment of the legal framework with the 
diversified funding method. 

1.3.3.  Expected result(s) and impact 

The  proposal  should  ensure  payments  to  be  made  to  beneficiaries  of  Union 
programmes  independently  of  the  exact  timing  of  the  long-term  bond  issuance  and 
market  conditions  prevailing  at  the  time  of  the  disbursement,  by  allowing  the 
Commission  to  fund  disbursements  from  the  facility  through  a  common  liquidity 
pool  financed  by  the  issuance  of  short-term  funding.  This  will  streamline  and 
simplify the funding for the provision of medium-term financial assistance under the 
facility and is expected to result in cost savings for the Union and the beneficiaries. 

1.3.4. 

Indicators of performance 

Article  10  of  the  Regulation  (EC)  No  332/2002  requires  that  every  three  years  the 
Council  examines,  on  the  basis  of  a  report  from  the  Commission  and  after  the 
Economic  and  Financial  Committee  has  delivered  an  opinion,  whether  the  facility 
established still meets, in its (i) principle, (ii) arrangements and (iii) ceiling, the need 
which led to its creation. 

1.4. 

The proposal/initiative relates to:  

 a new action  
 a new action following a pilot project / preparatory action13  

 the extension of an existing action  

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

13 

As referred to in Article 58(2), point (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  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. 

Reasons for action at EU level (ex-ante): The action at EU level is necessary given 
the role conferred by the EU Treaties to grant financial assistance where a Member 
State, which has not adopted the euro, is in difficulties or is seriously threatened with 
difficulties  as  regards  its  balance  of  payments.  Actions  by  Member  States  alone 
cannot achieve this goal. 

Expected generated EU  added value (ex-post): The implementation of a  diversified 
funding strategy for the facility is expected to streamline operations and reduce costs 
associated with managing a standalone funding programme for disbursements under 
the facility. By integrating funding operations with  other Commission programmes, 
these changes will simplify and increase the efficiency of the Commission’s overall 
funding management. 

1.5.3.  Lessons learned from similar experiences in the past 

In  the  half-yearly  report  from  the  Commission  to  the  European  Parliament  and  the 
Council on the implementation of borrowing, debt management and related lending 
operation  pursuant  to  Article  12  of  Commission  Implementing  Decision  C(2022) 
9700  (1  July  2023  -  31  December  2023)14,  the  Commission  noted  that  the 
establishment  of  a  unified  funding  approach  through  a  diversified  funding  strategy 
represented  a  key  milestone  in  building  a  robust  framework  for  meeting  the  EU’s 
funding  needs  as  efficiently  as  possible.  It  was  further  noted  that  in  applying  its 
unified  funding  approach,  the  Commission  was  able,  despite  market  volatility,  to 
meet  all  of  its  disbursement  commitments  under  Next  GenerationEU  and  Macro-
Financial Assistance on time. 

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 

14 

COM(2023) 461 final. 

EN 

4 

  EN 

 
1.6. 

Duration of the proposal/initiative and of its financial impact 

 limited duration  

–    in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–    financial  impact  from  YYYY  to  YYYY  for  commitment  appropriations  and 

from YYYY to YYYY for payment appropriations.  

 unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Method(s) of budget implementation planned 

 Direct management by the Commission 

–   by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated 

–   international organisations and their agencies (to be specified) 

–   the European Investment Bank 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 are provided with 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  are  provided  with 
adequate financial guarantees 

–   bodies or persons entrusted with the implementation of specific actions in the 
common  foreign  and  security  policy  pursuant  to  Title  V  of  the  Treaty  on 
European Union, and identified in the relevant basic act 

–  bodies  established  in  a  Member  State,  governed  by  the  private  law  of  a 
Member  State  or  Union  law  and  eligible  to  be  entrusted,  in  accordance  with 
sector-specific  rules,  with  the  implementation  of  Union  funds  or  budgetary 
guarantees,  to  the extent that such bodies are controlled by public law bodies or 
by bodies governed by private law with a public service mission, and are provided 
with adequate financial guarantees in the form of joint and several liability by the 
controlling bodies or equivalent financial guarantees and which may be, for each 
action, limited to the maximum amount of the Union support. 

Comments  

The proposal does not have an impact on the EU budget. 

EN 

5 

  EN 

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

N/A 

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  implementation  of  a  diversified  funding  strategy  in  Regulation  (EC)  No  332/2002  is 
expected  to  streamline  operations  and  reduce  costs  associated  with  managing  a  standalone 
funding  programme  for  disbursements  under  the  facility.  By  integrating  funding  operations 
with other Commission programmes, these changes will simplify and increase the efficiency 
of the Commission’s overall funding management. The use of a diversified funding strategy 
allows  the  flexible  implementation  of  the  funding  programme  while  fully  respecting  the 
principles  of  budget  neutrality  and  budgetary  balances  as  set  out  in  Article  310(1)  TFEU. 
Finally,  a risk, compliance and  governance framework overseen by the  Commission's Chief 
Risk Officer is in place for all Commission’s borrowing and lending operations.  

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  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)  

N/A 

2.3.  Measures to prevent fraud and irregularities  

N/A 

EN 

6 

  EN 

3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

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

 The proposal does not have an impact on the EU budget. 

•  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  

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

Diff./Non-
diff.15 

from 
EFTA 
countries
16 

from 
candidate 
countries 
and 
potential 
candidates
17 

From 
other 
third 
countries 

other assigned 
revenue 

Diff./Non
-diff. 

Diff./Non
-diff. 

Diff./Non
-diff. 

YES/NO  YES/NO  YES/NO 

YES/NO 

YES/NO  YES/NO  YES/NO 

YES/NO 

YES/NO  YES/NO  YES/NO 

YES/NO 

•  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Heading of 
multiannual 
financial 
framework 

Number  

Diff./Non-
diff. 

from 
EFTA 
countries 

Contribution  

from 
candidate 
countries 
and 
potential 
candidates 

from 
other 
third 
countries 

other assigned 
revenue  

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

Diff./Non
-diff. 

Diff./Non
-diff. 

YES/NO  YES/NO  YES/NO 

YES/NO 

YES/NO  YES/NO  YES/NO 

YES/NO 

Diff./Non YES/NO  YES/NO  YES/NO 

YES/NO 

15 
16 
17 

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

EN 

7 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-diff. 

EN 

8 

  EN 

 
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 

Heading of multiannual financial framework  

Number 

EUR million (to three decimal places) 

DG: <…….> 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

Operational appropriations  

Budget line 

Budget line 

Commitments 

Payments 

Commitments 

Payments 

(1a) 

(2a) 

(1b) 

(2b) 

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

(3) 

TOTAL appropriations 
for DG <…….> 

Commitments 

Payments 

=1a+1b+3 

=2a+2b+3 

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 

TOTAL 

operational 

appropriations  

Commitments 

Payments 

(4) 

(5) 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

EN 

9 

EN 

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

TOTAL appropriations under 
HEADING <….> 

Commitments 

of the multiannual financial framework 

Payments 

(6) 

=4+6 

=5+6 

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 

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  

 

Type18 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 119… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

18 
19 

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 

10 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTALS 

EN 

11 

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 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL 
2021 - 2027 

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 

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 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

0.000 

0.000 

0.000 

0.000 

0.000 

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. 

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) 

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) 

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

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

Admin. Support 

- at Headquarters 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

EN 

12 

  EN 

 
  
 
line 
[XX.01.YY.YY] 
01 01 01 02 (AC, END - Indirect research) 

- in EU Delegations  

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

Other budget lines (specify) - Heading 7 

Other budget lines (specify) - Outside Heading 7 

TOTAL 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

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

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 

N/A 

Establishment 
plan posts 

External 
staff 
(CA, SNEs, INT) 

Description of tasks to be carried out by: 

Officials and temporary staff 

External staff 

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

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) 

EN 

13 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
–    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) 

Year  
2024 

Year  
2025 

Year  
2026 

Year  
2027 

Total 

Specify the co-financing body  

TOTAL appropriations co-
financed  

3.3. 

Estimated impact on revenue  

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

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

– 

– 

– 

Budget revenue line: 

Article …………. 

 

 

on own resources  

on other revenue 

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

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 

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 proposed amendment does not establish any new requirements of digital relevance. The 

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 

14 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
proposed  changes  do  not  introduce  any  additional  obligations  or  provisions  related  to  the 
collection,  processing,  generation,  exchange,  or  sharing  of  data,  the  automation  or 
digitalisation  of  stakeholders'  processes,  the  use  of  new  or  existing  digital  solutions,  or 
digital  public  services.  Therefore,  no  additional  requirements  of  digital  relevance  are 
identified in this proposal. 

4.2. 

Data 

N/A 

4.3. 

Digital solutions 

N/A 

4.4. 

Interoperability assessment 

N/A 

4.5.  Measures to support digital implementation 

N/A 

EN 

15 

  EN