Source: EURLEX
Language: en
Format: md

![european flag](./../../../images/eclogo.jpg)EUROPEAN COMMISSION

Strasbourg, 7.6.2022

COM(2022) 401 final

REPORT FROM THE COMMISSION

TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Annual Management and Performance Report for the EU Budget - Financial Year 2021

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The Annual Management and Performance Report for the EU Budget – Financial year 2021, together with its annexes, is the Commission’s main contribution to the annual discharge procedure (
[1](#footnote2)
) by which the European Parliament and the Council of the European Union scrutinise the implementation of the EU budget. It fulfils the Commission’s obligations under the Treaty on the Functioning of the European Union (
[2](#footnote3)
) and the financial regulation (
[3](#footnote4)
). Implementing the EU budget is a shared responsibility. The Commission works hand in hand with the Member States and with other partners and organisations.

The report is composed of three volumes, as described below.

·Volume I provides the key facts and achievements in relation to budgetary management for 2021.

·Volume II presents a more comprehensive picture of the implementation of the EU budget. Annex 1 provides an overview of the performance of the EU budget in 2021. Annex 2 provides a high-level overview of internal control and financial management. Annex 3 covers the performance and compliance aspects of the Recovery and Resilience Facility.

·Volume III contains technical annexes supporting the report. It includes Annex 4, with detailed programme-by-programme performance information in the ‘Programme performance overview’.

This report is part of the broader integrated financial and accountability reporting package (
[4](#footnote5)
), which also includes the consolidated annual accounts (
[5](#footnote6)
), a long-term forecast of future inflows and outflows covering the next 5 years (
[6](#footnote7)
), the report on internal audits (
[7](#footnote8)
) and the report on the follow-up to the discharge (
[8](#footnote9)
).

Rising to the challenge: the EU invests in a greener, more digital and resilient future

In 2021, the EU sent a signal of solidarity and strength, countering the unprecedented crisis. Solidarity was key to containing the COVID-19 pandemic and to mitigating its economic and social impact. We saw the largest and quickest vaccination roll-out in the history of the EU, following the common procurement of vaccines through the innovative use of the EU budget via the Emergency Support Instrument. The EU budget also funded the infrastructure for issuing and verifying the digital COVID-19 certificates, which has set a standard well beyond EU borders. The EU supported citizens and business to overcome the fallout from the crisis. At the same time, it reacted to global challenges.

The EU managed not only to overcome the crisis but also to seize the opportunities that arose from it. The EU budget makes Europe fit for the future by anticipating its response to the crucial challenges of climate action and digitalisation. It invests in a more sustainable and resilient future for the EU and its Member States. Together with the 2021-2027 multiannual financial framework, the dedicated recovery instrument NextGenerationEU is at the heart of the EU’s collective action. With a record stimulus package of more than EUR 2 trillion, the EU economy started rebounding in 2021 – faster than expected.

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_01004.jpg)

The EU’s 2021-2027 multiannual financial framework and NextGenerationEU. All amounts are in billion EUR, in current prices.

Source: European Commission.

NextGenerationEU works thanks to a tailor-made, performance-orientated approach. With an unprecedented size of up to EUR 807 billion (
[9](#footnote10)
), NextGenerationEU has drastically increased the firepower of the EU budget. Its key programme, the Recovery and Resilience Facility, is a unique and innovative tool to finance investments and reforms. Member States submit their recovery and resilience plans, comprising reforms and investments that reply to the six broad policy areas within the scope of the facility, the country-specific recommendations adopted by the Council in the context of the European Semester, and the green and digital targets. Financing provided under the facility depends on the successful implementation of the investments and reforms contained in the plans, in line with the performance focus of the new long-term budget (see box below). Twenty-two national recovery and resilience plans had been adopted by the end of the year.

The long-term budget and NextGenerationEU: the EU budget focuses on achieving objectives

Performance and results are at the heart of the new long-term budget and NextGenerationEU. The new programmes have been designed to deliver tangible results on the ground. In the case of the Recovery and Resilience Facility, payments are explicitly linked to the achievement of milestones and targets by the Member States. Moreover, every EU programme contains clear and ambitious objectives and related indicators to help ensure that these objectives are achieved. The Commission published a communication in June 2021 describing the new performance framework (
[10](#footnote11)
).

The new long-term budget has also provided the opportunity to review the efficiency of EU budget implementation. Programmes need to ensure a more integrated approach to policy challenges, for example the Neighbourhood, Development and International Cooperation Instrument – Global Europe, which brings together most of the former EU external action programmes within the EU budget. Another example is the redesign of executive agencies, where the Commission has established new agencies to fully align their portfolios with the Commission’s strategic priorities and exploit the synergies between programmes and policies (such as the new European Health and Digital Executive Agency).

The EU provided liquidity to Member States by using all available budgetary resources. Under the Recovery and Resilience Facility, Member States received EUR 64 billion in 2021 – mostly in the form of prefinancing for the national recovery and resilience plans for those Member States with approved plans (
[11](#footnote12)
). Cohesion policy implementation accelerated in 2021 and a record amount of EUR 69 billion was paid to Member States. This was also thanks to the swift reaction to the COVID-19 crisis. The Coronavirus Response Investment Initiatives, established in 2020, allowed the fully flexible mobilisation of all the remaining funds in the 2014-2020 cohesion policy programmes. EUR 23 billion was reallocated to the health sector and measures to address the effects of the crisis. Finally, through additional financing from NextGenerationEU via REACT-EU, an additional EUR 7 billion was paid out, leading to Member States receiving a total of EUR 140 billion in liquidity in 2021.

Beyond liquidity, the EU budget is a vehicle for European solidarity. Next to the COVID-19 pandemic, natural disasters such as drought-driven forest fires and severe floods have taken a large toll on many Member States. Through the EU Civil Protection Mechanism, the EU has provided EUR 332 million in immediate disaster relief to affected Member States. In 2021, the mechanism was activated 114 times. In 2022, the war in Ukraine has already triggered the largest emergency operation since the creation of the mechanism.

The recovery effort is targeted towards building a greener and more digital future. The EU has increased its ambition for climate-related financing to 30% of the overall EU budget including NextGenerationEU, also reflecting EU global commitments, including the Paris Agreement and the sustainable development goals. Under the Recovery and Resilience Facility, at least 37% of financing will go towards investments and reforms tackling climate change and at least 20% towards furthering the digital transition. Many of the national recovery and resilience plans adopted by the end of 2021 exceed these minimum requirements, showing the shared commitment to the twin climate and digital transitions across the EU. Overall, Member States have committed about 40% of financing to tackling climate change and about 26% to furthering the digital transition. Replacing fossil energy and the digital transition are key – not only to emerge stronger from the pandemic but also to strengthen our open strategic autonomy and withstand the impact of Russia’s war against Ukraine. Key priorities are highlighted in the box below.

The twin transitions under the Recovery and Resilience Facility: key priorities for climate and digital

·In relation to mitigating and addressing climate change, roughly three quarters of financing is focused on the energy transition and building sustainable transport. To reach carbon neutrality by 2050, the focus is on both increasing energy supply from clean sources and decreasing demand for energy overall. Areas of investment include building up renewable energy generation and many projects focusing on energy efficiency, for example by improving building and insulation quality.

·To contribute to the digital transition and address its challenges, reforms and investments in this area go towards building digital public services (37%), increasing the level of digitalisation of businesses, in particular small and medium-sized enterprises (20%), and providing people with the necessary digital skills to participate in these changes (17%) (
[12](#footnote13)
). In line with the digital decade communication (
[13](#footnote14)
), which identifies the importance of digital public services, measures include e-government solutions to modernise and improve public administration processes, for example through integrating e-identification solutions in government processes and ensuring interoperability across various digital public platforms.

For the first time, key overarching EU policy goals – such as the fight against climate change – are fully integrated into the EU’s budget programmes. As part of the Annual Management and Performance Report for the EU Budget package, the Commission is presenting the methodologies used to track the contribution of the EU budget to three such policy goals.

·The fight against climate change, where the updated tracking methodology relies on an effect-based classification of interventions. It has been enshrined in a consistent manner across all key basic acts.

·Halting and reversing biodiversity loss, where the tracking methodology has been largely updated in a similar fashion.

·Furthering gender equality, where a pilot methodology is being applied, which reflects the fact that most of the EU budget has the potential to contribute positively to furthering gender equality.

The EU has responded to diverse global challenges by using the EU budget effectively and flexibly. To respond to the structural investment gap globally, the EU launched the Global Gateway initiative. The initiative will mobilise EUR 300 billion between EU institutions and Member States, in a Team Europe approach, supporting investments in digital, energy and transport infrastructure and strengthening health, education and research systems. Addressing more immediate needs, the provision of COVID-19 vaccines to non-EU countries and supporting solutions for the refugee crisis triggered through developments in Afghanistan and Syria have taken centre stage. The budgetary agreement accompanying the Syrian refugee package in autumn 2021 was a major milestone. At the same time, tension had already started to build up on the EU’s eastern borders in 2021, where migratory movements were instrumentalised to put political pressure on the EU. In budgetary terms, these various challenges have required proactive reprioritisation and the extensive use of existing flexibility. The external dimension has accounted for EUR 0.9 billion, the largest part of the EUR 2 billion in budgetary reinforcements used in 2021.

At the point of transition between long-term budgets, EU programmes under the 2014-2020 budget continue to be implemented and to deliver results to EU citizens. The EU budget is primarily an investment budget, focused on delivering long-term value to the EU. Many programmes have continued to make progress towards their respective performance targets. The graph below shows that for programmes accounting for 85% of the EU budget, the vast majority of performance indicators are on track. Annexes 1 and 4 to the present report provide more detail on the individual programmes and their performance.

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Breakdown of the 2014-2020 budget by progress of the underlying programmes. The graph displays progress as measured by the share of the indicators selected for the programme performance overview that have met or are well on track to meet their respective targets. For example, it shows that for programmes accounting for 60% of the 2014-2020 budget, all indicators have met or are well on track to meet their respective targets.

Source: European Commission.

A state-of-the-art borrowing capacity allows NextGenerationEU to deliver

To fund NextGenerationEU, the Commission set up an efficient bond issuance programme in record time. Formally starting work only at the beginning of 2021, the Commission issued the first bond on 15 June 2021 to great acclaim and record demand. By the end of 2021, the Commission had raised almost EUR 93.5 billion in long-term funding, complemented by short-term EU-Bills, to fund the first planned disbursements to Member States under NextGenerationEU. These novel EU bonds have been very well received by the markets, partly by assuming the role of a euro-denominated safe asset, something the market has been requesting for some time. The borrowing cost in 2021 for 10-year borrowing was mostly negative, and well below the average of the borrowing costs of individual Member States.

NextGenerationEU also reflects our political goals in terms of funding strategy, as we are issuing up to EUR 250 billion as green bonds. The Commission published the blueprint for its green bond programme, the NextGenerationEU Green Bond Framework (
[14](#footnote15)
), in September 2021. This framework outlines the arrangements for and conditions of its green bonds in line with best market practices. It has been certified by external experts, providing assurance to prospective investors that the proceeds from the EU green bond issuances will be used to finance legitimate green investments and reforms.

The first NextGenerationEU green bond issuance was a success in many respects. With EUR 12 billion raised in October 2021, the EU’s first issuance was the largest green bond issuance worldwide to date. The fact that it was oversubscribed 11 times showed the high market demand for such an asset. These green bonds also contribute to accelerating a virtuous circle of providing finance for sustainable investments. Following the first issuance, the Commission raised another EUR 2.5 billion of green bonds under the EU green bond programme in 2021, and EUR 6 billion by the end of May 2022. Over the next few years, this programme is expected to turn the EU into the world’s largest issuer of green bonds, providing a boost to green finance more generally and enhancing the appeal of the euro for global investors, and thus its international role.

Despite the demanding market conditions in 2022, EU bond issuances have continued to be in demand. Due to Russia’s unprovoked and unjustified invasion of Ukraine and the wider economic climate, bond markets have come under significant pressure recently. In spite of these challenging conditions, the Commission has had no difficulty placing further bonds on the market, even though borrowing costs have gone up in line with the more challenging market conditions generally. The flexibility provided by the Commission’s diversified funding strategy will enable the Commission to continue its funding programme in a cost-effective manner. NextGenerationEU green bonds have continued to receive outstanding demand and positive feedback, due in part to the publication of the Green Bond Dashboard (
[15](#footnote16)
).

After a challenging 2021, pressures on the EU budget will increase further in 2022

The late adoption of the 2021-2027 multiannual financial framework gave rise to serious challenges in 2021. The legal acts establishing the new generation of programmes were only adopted by the co-legislators in the course of 2021. However, thanks to intensive preparatory work, the Commission was able to launch many of the programmes without further delay, in particular those directly managed by the institution itself. In shared management, the late adoption of the common provisions regulation, setting out the regulatory framework for programmes under management shared with Member States (such as the cohesion policy funds), meant that the implementation of the new programmes could not begin in 2021, even though preparations on the ground have started. While the 2021 budget was carried over to future years, the Commission is working intensively with the Member States to adopt partnership agreements and programmes as soon as possible.

Focusing cohesion policy on the fight against COVID-19 has allowed the EU to react swiftly. The additional flexibility introduced in cohesion funding has allowed the EU to provide liquidity to Member States very quickly by accelerating payments significantly. While indispensable in supporting Member States addressing immediate crisis needs in the health sector, employment and business, in particular the small and medium-sized enterprises, redirecting cohesion funding meant temporarily diverting support away from some long-term investment priorities. REACT-EU, preparing the green and digital transition, has provided an opportunity to compensate for such short-term reprioritisation of cohesion funding, allowing the resumption of projects previously halted in favour of emergency needs.

2022 will be another year of uncertainty and challenges, including for the EU budget. Russia’s invasion of Ukraine in 2022 has unleashed new major dynamics that have profound implications for Ukraine as well as for the EU and its economy and society. At the same time, we are facing several other challenges: the pandemic is not over, new variants may emerge, and continued vigilance is essential. Inflation has reached levels not seen in decades, reducing the effective financial capacity of the EU budget, which is updated by a fixed deflator of 2% – well below the actual level of inflation. Supply-chain tensions are contributing to high inflationary pressures and are affecting the EU’s open strategic autonomy in areas such as microchips. The number of natural disasters seems to be increasing.

This will put further pressure on the EU budget and on its management and implementation, underlining the imperative of an agenda focused on building resilience. Given the high level of uncertainty regarding the evolution of the war in Ukraine, it is currently impossible to estimate the funding amounts required in Ukraine and the EU. However, these needs will be significant. In early 2022, the Commission has focused on providing immediate relief to Ukraine and to the people fleeing the country. By the end of May 2022, the Commission had already disbursed the entire budget of EUR 1.2 billion (
[16](#footnote17)
) from the new emergency macro-financial assistance programme for Ukraine. An emergency package of over EUR 550 million from the EU budget provided further support, combining various measures such as emergency and humanitarian assistance and a state- and resilience-building contract. Furthermore, the EU budget is now mobilising EUR 800 million as pledged on 9 April and 5 May. On 18 May 2022, the Commission proposed granting Ukraine new exceptional macro-financial assistance in 2022 in the form of loans of up to EUR 9 billion.

To assist Member States, on a proposal by the Commission, the co-legislators agreed to extend the flexibilities of the remaining 2014-2020 cohesion policy funds, including REACT-EU, and home affairs funds. While crucially necessary to provide liquidity and support, this too relied on redirecting interventions financed from the 2014-2020 cohesion and home affairs programmes, entailing the aforementioned operational challenges.

While a substantial part of the funding made available through flexible budget management has been used, the remaining amounts need to address two major crises. The below graph shows that at the beginning of 2021, not counting the Recovery and Resilience Facility, a maximum of EUR 242 billion was available to address the various challenges, namely the EU internal effects of COVID-19. At the beginning of 2022, a maximum of EUR 174 billion was available to respond both to the ongoing effects of COVID-19 and to address the consequences of the Russian war of aggression in Ukraine. These amounts being upper limits, the amounts that are actually available are lower. Under cohesion policy, including REACT-EU, the currently available amounts that do not necessitate reallocations from other priorities and can be used to address the economic fallout of COVID-19 or expenditures to accommodate refuges from Ukraine under CARE – Cohesion Action for Refugees in Europe amount to EUR 17 billion, so any contribution beyond those EUR 17 billion would require redirection from other policy priorities. Moreover, the long-term budget flexibility covers 7-year amounts, which are therefore not available for a single year.

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Resources available from dedicated flexibility mechanisms and flexible use of cohesion funding. All amounts are in billion EUR.

Source: European Commission.

The annual margins and flexibility in the EU long-term budget are small compared to the annual budget. Taken together, the margins and flexibility instruments under the new long-term budget over the full 7-year term amount to a maximum of EUR 22 billion, or roughly EUR 3 billion annually. Comparing that number to an annual budget of roughly EUR 170-180 billion provides a flexibility of less than 2%. The Commission was able to mobilise significant amounts of liquidity in 2021 primarily thanks to making existing 2014-2020 cohesion policy funds more flexible and to the presence of NextGenerationEU. Once used, these options are no longer available, thereby significantly reducing the margin of manoeuvre in the EU budget. Relying on at-scale redeployments of funds from existing programmes would require political choices, as this would impact the long-term capacity of the EU budget to achieve the political priorities stated in the objectives of individual programmes.

In addition, the Russian aggression against Ukraine is causing challenges for which no long-term budgetary solutions exist yet. All of the support provided so far has focused on addressing the immediate needs generated by the arrival of a large number of refugees from Ukraine in the EU and providing humanitarian and other support to Ukraine and neighbouring countries. However, the war against Ukraine will have significant impacts well beyond the immediate humanitarian and security situation. Ukraine will need to rely on international support during the war and to rebuild the country later, requiring a very significant effort leading to large financial needs in both the short and the long term. New challenges such as high inflation, energy security, food security and other knock-on effects also require budgetary solutions at the EU level. These unforeseen needs created by a war in Europe are well beyond the means available in the current multiannual financial framework and NextGenerationEU. Therefore, new financing sources will have to be identified.

On 18 May 2022, the Commission proposed REPowerEU – a plan to rapidly reduce dependence on Russian fossil fuels. REPowerEU (
[17](#footnote18)
) puts forward an additional set of actions to save energy, produce clean energy and diversify our energy supplies, with the final aim to achieve a more resilient energy system and a true energy union. The Commission has proposed that REPowerEU be implemented through the Recovery and Resilience Facility, and has proposed a number of financing sources to strengthen the funding for the facility for this purpose, including redeploying funds from existing programmes and creating new, additional resources.

Effective tools are in place to ensure sound financial management

In order to make the best possible use of taxpayers’ money, it is essential to ensure that funding reaches the intended beneficiaries in compliance with the applicable rules. To achieve this objective, the Commission relies on a number of tools, which have proved to be fit for purpose over the years.

The Commission’s governance system and chain of accountability are tailored to its unique structure and role. The College of Commissioners is politically responsible for the management of the EU budget. It delegates the day-to-day operational management to the 51 authorising officers by delegation (
[18](#footnote19)
), who manage and steer their departments and are accountable for the share of the EU budget implemented in their department. Their annual activity reports contain a declaration of assurance on the use of the resources assigned to them, which they may qualify with reservations in case of weaknesses.

The Commission’s internal control framework is an essential safeguard for the Commission’s operations. This is all the more the case in the context of the pandemic and the ensuing response measures. In 2021, the Commission continued to closely monitor the risks arising from the pandemic and their effective mitigation. The Commission’s anti-fraud strategy has continued to play a significant role in preventing the possible misuse of EU funds.

In 2021, the relevant departments put a particular focus on the adaptation of their internal control systems to the needs of NextGenerationEU, be it through setting up a high-level risk and compliance policy for borrowing and lending activities or by designing specific audit and control strategies for spending under the Recovery and Resilience Facility.

Within its internal control framework, the Commission relies on multiannual and risk-differentiated control strategies to prevent, detect and correct errors and weaknesses in the control systems. EU spending programmes are multiannual by design, and so are the related control strategies. This implies that detection and correction of errors may happen at any time, up to the point of closure at the end of a programme’s life cycle. Moreover, the control strategies are adjusted to the different management modes, the actors involved, the policy areas and/or the funding methods and associated risks. This differentiation of the control strategies is necessary to ensure their cost-effectiveness, i.e. that they strike the right balance between a low level of error (effectiveness), fast payments (efficiency) and reasonable costs (economy).

The Commission and the Member States perform hundreds of thousands of checks every year. The Commission builds its assurance from the bottom up and at a detailed level, i.e. by programme or other relevant segment of expenditure. This allows the Commission to detect weaknesses and errors, to identify the root causes of systemic errors, to take targeted corrective actions and to ensure that any lessons learned are factored into the design of future financial programmes.

|  |  |
| --- | --- |
| In agriculture: | In cohesion: |
| More than 900 000 checks were carried out by the Member States and 97 audits by the Commission. | The Commission reviewed the annual reports and opinions for 416 programmes and carried out    61 audits. |

The Commission’s control results confirm that the EU budget is well managed

The Commission and the Member States take action to prevent and correct weaknesses and errors. The Commission’s key preventive mechanisms consist of ex ante controls and audits (see Annex 5 in Volume III), including system audits to detect weaknesses in the implementing partners’ management and control systems. Under shared management, Member States’ authorities also perform verifications and audits. Where preventive mechanisms have not been effective, errors affecting EU expenditure are detected and corrected after the Commission’s payments by Member States and the Commission.

The Commission’s controls and audits are effective.

As a result of its controls and audits, in 2021 the Commission implemented preventive and corrective measures for an amount of EUR 1 063 million, EUR 298 million of which represented preventive measures, while the corrective measures implemented added up to EUR 765 million. This brings the cumulative amount of preventive and corrective measures implemented for the years 2017 to 2021 to EUR 26 billion. In addition, the Member States themselves implemented preventive and corrective measures for a total amount of EUR 4 557 million in 2021, partly based on Commission audits.

Overall, the risk at payment is below the materiality threshold of 2%. The Commission estimates that, after its preventive controls, the remaining level of error – i.e. the risk at payment – is 1.9% (
[19](#footnote20)
). This result is similar to that of 2020. Given the multiannual character of the funding programmes, the Commission deploys substantial efforts to perform controls after the payments and to make corrections until the closure of the programmes. These efforts are reflected in the estimated risk at closure (
[20](#footnote21)
), which corresponds to the risk at payment minus the Commission’s future corrections forecast.

For 2021, the risk at closure is estimated at 0.8%. As this is well below the threshold of 2% – also used by the European Court of Auditors – the Commission considers that the budget as a whole is effectively protected. This is confirmed by the internal auditor’s opinion (
[21](#footnote22)
).

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_01009.jpg)

Risk at payment and closure for the European Commission for the 2015-2021 period.

Source: the European Commission, the 2015-2021 annual management and performance reports for the EU budget.

Notwithstanding this overall good result, the Commission identifies which programmes have a higher level of risk, allowing it to focus its action where it matters most. Thanks to its detailed analysis, the Commission has robust evidence of the differentiated risk level for the EU’s expenditure. Based on the risk at payment, expenditure is divided into lower- (below 1.9%), medium- (between 1.9% and 2.5%) and higher-risk (above 2.5%) segments. For natural resources and cohesion, this analysis is carried out at the level of individual paying agencies and programmes in the Member States, which allows to show that the situation is differentiated by programmes. This also allows the Commission to address specific weaknesses even for policies that, taken globally, are low risk, such as the common agricultural policy.

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_01010.jpg)

The European Commission categorisation of expenditure into higher-; medium- and lower-risk segments, as percentages of the total of relevant expenditure for 2021.

Source: European Commission.

In particular, the following involve higher-risk expenditure: some programmes for cohesion policy funds that show serious deficiencies and/or have maximum error rates above 2.5%; the programmes in the cohesion policy funds and the paying agencies for agriculture-related direct payments, market measures and rural development that have risk at payments above 2.5%; and expenditure related to complex grants in other funding programmes. Where the level of risk remains high, this is reported transparently through the issuance of reservations. For 2021, there are 16 reservations with a total financial impact of EUR 987 million, which is less than 1% of the total expenditure. These reservations are a keystone in the accountability chain. They outline the challenges and weaknesses encountered, along with the measures envisaged to address them.

In addition to financial corrections and recoveries, the Commission is taking action to address weaknesses leading to medium and higher risks. These include communication targeted at the most error-prone beneficiaries, more extensive use of simplified forms of grants, better controls and building the capacity of national authorities with deficiencies in their management and control systems.

  

The Recovery and Resilience Facility has entered the implementation phase

Established at the beginning of 2021, the Recovery and Resilience Facility is a new performance-based instrument, of an exceptional and temporary nature, at the service of EU recovery. With a total envelope of EUR 723.8 billion (in current prices) – EUR 338 billion in grants and EUR 385.8 billion in loans – its purpose is to mitigate the social and economic impact of the COVID-19 pandemic and promote a long-lasting recovery that embraces the green and digital transitions. Member States are the beneficiaries of the funds, which are disbursed against the achievement of predefined milestones and targets.

Twenty-two recovery and resilience plans were positively assessed by the Commission and adopted by the Council in 2021. These plans account for a total allocation of EUR 291 billion in non-repayable financing and EUR 154 billion in loans. These 22 recovery and resilience plans include a total of over 3 700 measures (around one third of which are reforms and two thirds investments), along with over 5 100 milestones and targets to be fulfilled by 2026.

Funding is disbursed in several instalments upon the achievement of milestones and targets to which Member States have committed themselves. In 2021, the Commission disbursed EUR 54 billion in pre-financing payments to 20 Member States (
[22](#footnote23)
), which helped kick-start the implementation of the investment and reform measures outlined in Member States’ recovery and resilience plans. The Commission disbursed a first payment for milestones and targets of EUR 10 billion to Spain before the end of 2021, after receiving the payment request in November 2021.

Since the facility is a performance-based instrument, the legality and regularity of the payments made by the Commission depend on the actual achievement of the milestones and targets. Member States are primarily responsible for the protection of the financial interests of the EU, including checking compliance with applicable EU and national law. For that purpose, they put in place appropriate control frameworks at the national level, in particular with a view to preventing, detecting and correcting fraud, corruption and conflicts of interests and avoiding double-funding.

As a result, the focus of the Commission’s controls is on the satisfactory achievement of the agreed milestones and targets. To ensure sound financial management, the Commission relies on the Member States’ controls, and complements them as necessary at the following three stages.

·During the assessment of the recovery and resilience plans, the Commission assesses the Member States’ control systems and invites the Member States to include additional milestones in the plans to address identified weaknesses before the first payment.

·During the implementation of the facility, the Commission assesses whether the milestones and targets have been satisfactorily fulfilled and all other conditions for disbursement have been met. If this is not the case, payments are suspended or proportionally reduced. The Commission also audits the functioning of the Member States’ management and control systems to protect the EU’s financial interests, and more particularly the measures to prevent, detect and correct cases of fraud, corruption, conflicts of interest and double funding.

·After disbursements, the Commission may perform ex post controls and audits (
[23](#footnote24)
) to check the achievement of milestones and targets. The Commission may also carry out ad hoc audits in case of suspicion of serious irregularities. If necessary, the Commission will recover proportionate amounts or require early repayment of the loans.

To gauge the level of risk associated with operations, the Commission makes a qualitative assessment of results from audits and controls both at the level of Member States and the Commission. In a context where payments are based on a qualitative assessment of the fulfilment of milestones and targets and where these milestones and targets are very diverse, control results cannot be extrapolated. Therefore, unlike other funding programmes, a meaningful error rate based on statistical methods cannot be determined.

Based on the positive assessment of evidence for the fulfilment of the milestones of the payment request, the authorising officer by delegation confirmed that he had reasonable assurance of the legality and regularity of the single payment made in 2021 under the Recovery and Resilience Facility.

Management conclusion

The Commission ensures that the EU budget serves citizens. Thanks to the effective tools in place and to the proactive management of the EU budget, the Commission has been able to deliver on its policy objectives and respond to multiple challenges. The Commission has provided its beneficiaries, implementing partners and the Member States with the necessary degree of flexibility, while ensuring sound financial management and maintaining an appropriate level of assurance on the management of the EU budget.

All authorising officers by delegation have provided reasonable assurance, although qualified with reservations where appropriate. The annual activity reports demonstrate that all Commission departments have put in place solid internal controls and provide evidence of the efforts undertaken to improve cost-effectiveness, further simplify the rules and adequately protect the budget from fraud, errors and irregularities.

On the basis of the assurances and reservations in the annual activity reports, taking into account the opinion of the internal auditor, the College of Commissioners adopts this Annual Management and Performance Report for the EU Budget – Financial year 2021 and takes overall political responsibility for the management of the EU budget.

  

Future developments: outlook for 2022 and beyond

Against a backdrop of continued immense challenges, close cooperation with other EU institutions and the Member States remains essential. As has been true for the pandemic, the dramatic unfolding of events in Ukraine makes a robust and coordinated EU-level response both necessary and justified as an indispensable complement to the work of the Member States.

The constraints of the 2021-2027 multiannual financial framework will pose challenges for the EU to respond in full to the situation following the Russian invasion of Ukraine. The Commission is committed to ensuring that every euro in the EU budget is used to maximum effect, including by reallocating and reprioritising when unanticipated challenges arise. However, there are limits to what can be achieved within the constraints of the current multiannual financial framework. Much of the flexibility in the budget has already been used to react to multiple crises, with the result that there will be less room to respond to future crises. An urgent reflection is therefore warranted on how to ensure that the EU budget is equipped to respond to the many demands and expectations placed on it in these exceptionally turbulent times.

The Commission has proposed a targeted revision of the financial regulation (
[24](#footnote25)
). Given that the changes brought about by the 2018 revision need time to produce their full effect, this proposal focuses on alignment with the new long-term budget, certain improvements on crisis management following lessons learned during the COVID-19 crisis and enhanced protection of the EU’s financial interests.

The Commission is following up on its commitment to continue providing a single data-mining and risk-scoring tool (Arachne) to Member States. It supports the programme authorities in identifying risks for the expenditure by adapting the tool put at the disposal of Member States under the previous financial framework. The Commission will continue to offer support to Member States to allow for its effective use. In the ongoing revision of the financial regulation the Commission proposed to strengthen the use of this data-mining and risk-scoring tool.

On 16 February 2022, the Court of Justice upheld the validity of Regulation (EU, Euratom) 2020/2092 on a general regime of conditionality for the protection of the EU budget, which two Member States, Hungary and Poland, had contested. In March 2022, the Commission adopted guidelines on the application of the regulation. Following the work carried out throughout 2021, the Commission sent a first notification to Hungary in April 2022 as a subsequent step under the general regime of conditionality, triggering the procedure that may lead to the imposition of measures against a Member State for breaches of the principles of the rule of law. The Commission constantly monitors the situation across Member States and will start the procedure under the conditionality regulation if the conditions are fulfilled.

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_01011.jpg)

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_01012.jpg)

:   [(1)](#footnoteref2)
    ()
       The annual discharge procedure is the procedure through which the European Parliament and the Council give their final approval on the budget implementation for a specific year and hold the Commission politically accountable for the implementation of the EU budget (
    <https://ec.europa.eu/info/about-european-commission/eu-budget/how-it-works/annual-lifecycle/assessment/parliaments-approval_en>
    ).
:   [(2)](#footnoteref3)
    ()
       Article 318 of the Treaty on the Functioning of the European Union.
:   [(3)](#footnoteref4)
    ()
       Articles 247(1)(b) and 247(1)(e) of the financial regulation.
:   [(4)](#footnoteref5)
    ()
       Article 247 of the financial regulation.
:   [(5)](#footnoteref6)
    ()
       Article 246 of the financial regulation.
:   [(6)](#footnoteref7)
    ()
       Article 247(1)(c) of the financial regulation.
:   [(7)](#footnoteref8)
    ()
       Article 118(8) of the financial regulation.
:   [(8)](#footnoteref9)
    ()
       Article 261(3) of the financial regulation.
:   [(9)](#footnoteref10)
    ()
       EUR 807 billion in current prices, EUR 750 billion in 2018 prices.
:   [(10)](#footnoteref11)
    ()
       
    <https://ec.europa.eu/info/publications/communication-eu-budget-performance-framework-2021-2027_en>
:   [(11)](#footnoteref12)
    ()
       For details, see Annex 3.
:   [(12)](#footnoteref13)
    ()
       Numbers correspond to calculations based on the methodologies set out in Annex VI and VII to the Recovery and Resilience Facility regulation.
:   [(13)](#footnoteref14)
    ()
       
    <https://eur-lex.europa.eu/legal-content/nl/TXT/?uri=CELEX%3A52021DC0118>
:   [(14)](#footnoteref15)
    ()
       
    <https://ec.europa.eu/info/sites/default/files/about_the_european_commission/eu_budget/nextgenerationeu_green_bond_framework.pdf>
:   [(15)](#footnoteref16)
    ()
       
    <https://ec.europa.eu/info/strategy/eu-budget/eu-borrower-investor-relations/nextgenerationeu-green-bonds/dashboard_en>
:   [(16)](#footnoteref17)
    ()
       
    <https://ec.europa.eu/commission/presscorner/detail/en/ip_22_3183>
:   [(17)](#footnoteref18)
    ()
       
    <https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/repowereu-affordable-secure-and-sustainable-energy-europe_en>
:   [(18)](#footnoteref19)
    ()
       The term ‘authorising officers by delegation’ covers directors-general of Commission departments, heads of executive agencies, offices, services, task forces, etc. Article 74(1) of the financial regulation states that: ‘The authorising officer shall be responsible in the Union institution concerned for implementing revenue and expenditure in accordance with the principle of sound financial management, including through ensuring reporting on performance, and for ensuring compliance with the requirements of legality and regularity and equal treatment of recipients.’
:   [(19)](#footnoteref20)
    ()
       This result does not include the expenditure under the Recovery and Resilience Facility, for which the control results are disclosed separately on the basis of a qualitative assessment.
:   [(20)](#footnoteref21)
    ()
       In the case of the common agricultural policy, the term ‘estimated final amount at risk’ is used instead to better reflect the fact that there is no set closure point for the European Agricultural Guarantee Fund measures.
:   [(21)](#footnoteref22)
    ()
       See Annex 2, Section 3.2 ‘Work of the Internal Audit Service and overall opinion’.
:   [(22)](#footnoteref23)
    ()
       Ireland did not ask for pre-financing and Finland was paid in January 2022 only.
:   [(23)](#footnoteref24)
    ()
       In accordance with the Financing Agreement, ex post audits can be carried out for up to 5 years starting from the date after the last payment has been submitted.
:   [(24)](#footnoteref25)
    ()
       Proposal for a Regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (recast), COM(2022)223.

[Top](#document1)

![european flag](./../../../images/eclogo.jpg)EUROPEAN COMMISSION

Strasbourg, 7.6.2022

COM(2022) 401 final

ANNEXES

to the

REPORT FROM THE COMMISSION  
  
TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS

Annual Management and Performance Report for the EU Budget - Financial Year 2021

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![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_02003.jpg)

Contents

[Annex 1 – Horizontal priorities in 2021](https://myintracomm-collab.ec.europa.eu/dg/sg/ampr/Shared%20Documents/COM_2022_401_annexes%201%20to%203_for_rsc.docx)

1.
   Recovering and becoming more resilient
   

2.
   Driving the twin transitions for a sustainable future
   

3.
   Building an economy that works for people
   

4.
   Strengthening Europe as a geopolitical actor
   

[Annex 2 – Internal control and financial management](https://myintracomm-collab.ec.europa.eu/dg/sg/ampr/Shared%20Documents/COM_2022_401_annexes%201%20to%203_for_rsc.docx)

1.
   Strong tools to manage and protect the EU budget in a complex environment
   

2.
   Control results
   

3.
   Management assurance
   

4.
   Further developments: outlook for 2022 and beyond
   

[Annex 3 – The Recovery and Resilience Facility: a new performance-based instrument at the service of EU recovery](https://myintracomm-collab.ec.europa.eu/dg/sg/ampr/Shared%20Documents/COM_2022_401_annexes%201%20to%203_for_rsc.docx)

  

Annex 1 – Horizontal priorities in 2021

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_02004.jpg)

Horizontal priorities in 2021

The EU budget is an increasingly important tool for delivering on the EU’s priorities. Through its programmes, the budget supports the EU’s internal and external policies and creates European added value by delivering results that uncoordinated national spending could not. The EU’s programmes are designed to work together to unlock synergies, catalyse private and public funding and provide a coordinated boost to a number of overarching political priorities, which are central to the headline ambitions of the von der Leyen Commission (
[1](#footnote2)
).

The 2021 budget was the first under the 2021-2027 multiannual financial framework. It was at the heart of the EU’s comprehensive response to the COVID-19 pandemic, allowing it to respond quickly and flexibly to urgent needs. It also continued to lay the foundations for the EU’s future sustainability and prosperity, in particular by investing in a green and digital recovery. This will allow the European social economy to become more resilient and will strengthen job creation. The 2021 EU budget amounted to EUR 164 billion in commitments allocated under the following headings.

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_02005.jpg)

Multiannual financial framework: 2021 EU budget commitment appropriations by budget heading (in million EUR).

Source: European Commission.

The EU budget is boosted by NextGenerationEU to address the economic and social impact of the pandemic. NextGenerationEU is a EUR 807 billion (
[2](#footnote3)
) temporary recovery instrument consisting of support in addition to the EU’s long-term budget, with a focus on the crucial first years of recovery. Funding from NextGenerationEU is invested across several programmes and is therefore described throughout this annex.

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_02006.jpg)

NextGenerationEU commitment appropriations by budget heading (in million EUR).

Source: European Commission.

The performance analysis in this annex describes how EU programmes have contributed to several cross-cutting and interconnected policy priorities. It is structured around four key themes:

·recovering and becoming more resilient;

·driving the twin transitions for a sustainable future;

·building an economy that works for people;

·strengthening Europe as a geopolitical actor.

This summary complements the programme-by-programme reporting in Annex 4, which the European Commission presents as a website [link].

1.Recovering and becoming more resilient

NextGenerationEU is much more than recovery, it will shape our continent for decades ahead. We will be equipping our societies and our economies to be stronger and to be more resilient.

Ursula von der Leyen

President of the European Commission

The COVID-19 crisis has highlighted the strategic importance of reinforcing the economic, social and institutional resilience of the EU. It has also underlined the urgent need to increase the EU’s crisis preparedness and response capacity, including through investing in strong health systems and stepping up the EU’s ability to respond to natural disasters and other emergencies.

This section covers the main components of the EU’s response, first in terms of supporting the recovery and then with respect to laying the foundations for a stronger and more resilient EU.

Supporting the recovery in the immediate aftermath of the pandemic

A key goal of EU budgetary action in 2021 was to sustain the recovery from the economic shock caused by the COVID-19 pandemic and the restrictions put in place to contain its spread. This was achieved essentially through a two-pronged approach: (1) giving Member States as much flexibility as possible to redirect all available resources under the 2014-2020 long-term budget to tackling the health and economic consequences of the pandemic; and (2) providing new EU resources to underpin the recovery in the short term until the longer-term response (described below) has taken root.

The following provisions enabled Member States to redirect the remaining resources from the 2014-2020 long-term budget to fund their response to the pandemic.

·The Coronavirus Response Investment Initiative provided about EUR 8 billion of immediate liquidity to mobilise investments to mitigate the impact of the COVID-19 pandemic, granting greater flexibility in applying EU spending rules and extending the scope of the EU Solidarity Fund.

·The Coronavirus Response Investment Initiative Plus similarly introduced extraordinary flexibility by allowing the full mobilisation of all non-utilised support from the European Structural and Investment Funds, offering to cover 100% of the expenditure from the EU budget for one accounting year, and simplifying the procedural steps linked to programme implementation, the use of financial instruments and auditing.

New resources amounting to EUR 50.6 billion were made available by the recovery assistance for cohesion and the territories of Europe (REACT-EU) initiative (
[3](#footnote4)
). REACT-EU is one of the largest programmes under NextGenerationEU. It was designed to provide funding for projects that foster crisis repair capacities in the context of COVID-19, along with investment in operations contributing to preparing a green, digital and resilient recovery. Operationally, REACT-EU reinforced relevant 2014-2020 programmes and is in addition to the 2021-2027 cohesion allocations. In 2021, it helped provide continued support for the health sector, small and medium-sized enterprises and short-term employment schemes, while at the same time focusing on long-term recovery through digital and green investment as part of crisis repair.

The EU budget also played a key role in directly addressing the health emergency, in particular through the financing of a part of the upfront costs from the EUR 2.7 billion Emergency Support Instrument. The EU negotiated advance purchase agreements with eight vaccine manufacturers (AstraZeneca, BioNTech–Pfizer, CureVac, Johnson & Johnson, Moderna and Sanofi–GlaxoSmithKline, Novavax and Valneva) as part of a diversified vaccine strategy aiming at securing access to safe and effective vaccines as early as possible. Through this coordinated EU approach, Member States were able to share the inherent risk of investing in what was at that point unproven vaccine development, and had access to a broad portfolio of potential vaccine technologies and companies.

The EU budget partially paid for these vaccines through the Emergency Support Instrument. This is an instrument designed to support, partly through fast procurement mechanisms, a variety of targeted measures when the scale, speed or cross-border nature of the need is best addressed through coordinated EU intervention.

Today, the EU has one of the highest vaccine penetration rates in the world, with 82% (
[4](#footnote5)
) of the EU adult population being vaccinated at least once.

The Emergency Support Instrument also financed (
[5](#footnote6)
) the infrastructure for issuing and verifying interoperable COVID-19 vaccine, testing and recovery certificates (at a cost of EUR 16 million). The EU digital COVID certificate regulation entered into force on 1 July 2021, and has been instrumental in facilitating the safe, free movement of citizens within the EU during the pandemic, and thus the reopening of the EU – a precondition for economic recovery.

Building a stronger and more resilient EU for the long term

The crisis also highlighted the importance of taking decisive steps to build a stronger, more resilient and more sustainable future. For that reason, the majority of funds from NextGenerationEU (up to EUR 724 billion) (
[6](#footnote7)
) are assigned to the Recovery and Resilience Facility. This is an innovative instrument, of an exceptional and temporary nature, designed to help Member States implement investment and reforms to shape their long-term economic growth trajectory in line with the EU’s key priorities, in particular by accelerating the green and digital transitions. The facility is structured around six pillars: the green transition; digital transformation; economic cohesion, productivity and competitiveness; social and territorial cohesion; health, economic, social and institutional resilience; and policies for the next generation.

The regulation establishing the Recovery and Resilience Facility invited Member States to submit national recovery and resilience plans to the Commission. In these plans the Member States put forward their reform and investment agendas to support recovery and strengthen resilience, in particular by addressing challenges identified by the country-specific recommendations in the context of the European semester, and by contributing appropriately to the six policy pillars set out in Article 3 of the regulation. The regulation also requires Member States to explain how their plans are expected to contribute to climate and digital targets, gender equality and equal opportunities for all. Annex III to this report explains the procedure for assessing the plans.

In 2021, 22 recovery and resilience plans were approved by the Council, based on a Commission proposal. These approved plans account for a total allocation of EUR 291 billion in non-repayable financing and EUR 154 billion in loans (
[7](#footnote8)
). Two thirds of the amount of financing and loans relates to investments and one third includes measures that concern reforms. The measures are tracked through a set of milestones and targets to be fulfilled by August 2026. In an important innovation, funding under the Recovery and Resilience Facility will be disbursed in several instalments upon the achievement by Member States of agreed milestones and targets.

In December 2021, the Commission made the first payment – in line with milestones and targets – to Spain, of EUR 10 billion. This non-repayable financial support was paid upon Spain’s achievement of the relevant 52 milestones, covering reforms in the areas of sustainable mobility, energy efficiency, decarbonisation, connectivity, public administration, skills, education and social aspects, research and development, labour and fiscal policy, along with the reinforcement of Spain’s audit and control system for the implementation of the Recovery and Resilience Facility.

Resilience in relation to future health emergencies has been improved through the establishment of the Health Emergency Preparedness and Response Authority. A key pillar of the European health union announced by President von der Leyen in her 2021 State of the Union address, the authority’s goals are to anticipate, prevent, detect and respond to threats and potential health crises through intelligence gathering and capacity building. It is working closely with EU and national health agencies, industry and international partners to improve the EU’s readiness for health emergencies. To fulfil its objectives, the authority has been given a budget of roughly EUR 6 billion to implement from various programmes (such as EU4health, Horizon Europe and the EU Civil Protection Mechanism) over the 2022-2027 period.

Building resilience also requires stepping up preparedness to deal with disasters. To this end, the EU Civil Protection Mechanism strengthens cooperation on civil protection between EU Member States and six other participating states. While recognising that the primary responsibility for civil protection lies with the Member States, the European Commission provides complementary support to national authorities with the ultimate goal of improving prevention, preparedness, and response to disasters by boosting capacities to respond to crises (be they forest fires, health and medical emergencies or chemical, biological, radiological or nuclear incidents) that overwhelm a country’s individual response capability. Therefore, the Commission plays a key role in coordinating the response to disasters worldwide, contributing at least 75% of the transport and/or operational costs of deployment. A new proposal, adopted in April 2021, will allow the EU to have a more active role, while the mechanism will be more flexible in supporting Member States, especially when they are affected at the same time by large-scale and complex emergencies.

·In preparation for the 2021 forest-fire season, the Commission co-financed the standby availability of a rescEU firefighting fleet to address potential shortcomings in responding to forest fires. Six EU Member States (Greece, Spain, France, Croatia, Italy and Sweden) put a total of 11 firefighting planes and six helicopters at the disposal of other Member States in case of an emergency, in exchange for a financial contribution to the standby costs of these capacities. Preparations are currently ongoing for the 2022 forest-fire season.

·Under the umbrella of the EU Civil Protection Mechanism, the Commission created a strategic rescEU medical reserve and distribution mechanism, the stockpile of which is hosted by nine Member States. The reserve enables the swift delivery of medical equipment (such as ventilators and personal protective equipment) anywhere in the EU and in third countries.

·The Emergency Support Instrument was also used in the procurement of healthcare-related material, assistance for medical personnel and operational support for mobile medical-response capacities. This makes medical personnel and teams available where they are most needed in Europe and assists with transporting cargo.

2.Driving the twin transitions for a sustainable future

We want to leave the next generation a healthy planet as well as good jobs and growth that do not hurt our nature.

Ursula von der Leyen

President of the European Commission

The green and digital transitions are at the core of EU policy and its recovery strategy. Putting the protection of the climate and biodiversity as well as the digital transition at the centre of the EU’s social and economic growth model is essential to ensure its sustainability. With increasingly fierce global competition for control of digital technologies, it is of paramount importance that EU businesses, public sectors and researchers have access to computing data, artificial intelligence and digital infrastructure from within the EU. Moreover, in order to achieve the target of a 55% reduction in greenhouse gas emissions by 2030, there is a need to support and incentivise innovative and low-carbon technologies. The EU budget plays a vital role in all these areas.

The European Green Deal is a blueprint for sustainable growth

The green transition is at the core of the EU’s growth strategy. The key to a sustainable future, the green transition is instrumental in decarbonising the European economy and driving the competitiveness of EU industry, while underpinning the long-term energy independence of the EU. This entails efforts in relation to climate and biodiversity objectives, while ensuring a fair transition for all.

The fight against climate change by its very nature transcends national boundaries, calling for action at the EU and international levels. EU action can exploit significant economies of scale, pull together resources to reach critical mass and contribute to strengthening the EU in the international arena.

|  |  |
| --- | --- |
| Climate | Biodiversity |
| By the end of 2020, an increase of over 2 735 megawatt hours of additional capacity for renewable energy production was achieved thanks to regional funds.  In partner countries, 18 000 gigawatt hours of renewable energy generation capacity were planned to be installed with EU support over 2014-2020. | By the end of 2020, more than 15 000 km² of habitats had been restored or had had their conservation status improved thanks to LIFE programme funding.  909 620 km2 of biodiversity-rich and forest areas were protected in partner countries with the support of EU development projects between 2013 and 2021. |

The EU is committed to devoting a significant share of its budget to financing climate-relevant interventions. The latest available information shows that, between 2014 and 2020, the EU devoted the equivalent of EUR 221 billion, or 20.6% of its overall multiannual budget, to climate-related measures (
[8](#footnote9)
). For the 2021-2027 period the Commission has increased its overall target for the contribution to climate mainstreaming from the EU budget (as augmented by NextGenerationEU) to 30%. This target is also supported through regional policy, for which a legally binding budget share of 30% for the European Regional Development Fund and 37% for the Cohesion Fund has been established. Finally, the Commission has developed and published a new methodology based on EU coefficients to ensure an effective and sound approach to calculating the achievement of this target.

The Recovery and Resilience Facility will make a key contribution to the climate target. The facility has been designed to help the EU achieve its target of climate neutrality by 2050 by allocating 37% of its envelope to climate-relevant investment and reforms. Across the 22 recovery and resilience plans approved in 2021, Member States have allocated almost 40% of the spending to climate, well in excess of the target of 37%. Investments covered by the recovery and resilience plans approved by the Council cover a broad range of sectors. For instance, some EUR 70.7 billion is planned to be spent on improving the sustainability of the European mobility system, including by upgrading and modernising railway networks and building new alternative fuel infrastructure.

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_02009.jpg)

Climate contribution in 2021 (in million EUR).

Source: European Commission.

The Commission calculates that the EU budget financed climate-relevant interventions worth around EUR 146 billion in 2021 (34% of the total budget). Examples include the following.

·Continued support for the structural changes that the EU economy needs to reach climate neutrality and energy independence via cohesion policy funds and the Connecting Europe Facility.

·New research and innovation projects launched in 2021 from both Horizon 2020 and Horizon Europe, including landmark projects on green airports and ports, new partnerships / joint undertakings (e.g. concerning SESAR 3, Europe’s rail, clean aviation, clean hydrogen, zero-emission road and waterborne transport), as well as the launch of climate-relevant missions (e.g. regarding climate adaptation, climate-neutral and smart cities, clean oceans).

·Support for radical innovation. The European Innovation Council Accelerator launched a call in 2021 specifically designed to support European Green Deal innovations. The call focuses on the EU’s priorities for transitioning to a green, digital and healthy society, with special attention paid to innovations in one of the following areas: low-carbon industries; deep renovation of buildings; renewable energy; batteries and other energy storage systems. The deployment of innovation is the driver to achieve the EU’s targets.

·Support for small and medium-sized enterprises. As of 30 September 2021, the equity facility for growth under the EU programme for the competitiveness of enterprises and small and medium-sized enterprises had invested EUR 6.7 million in a 
[venture capital fund that focuses its activities on clean technologies](https://www.eif.org/what_we_do/equity/single_eu_equity_instrument/cosme_efg/intermediaries.pdf)
 to ensure that small and medium-sized enterprises can grow towards a sustainable future.

·Acquisition of skills that support the EU’s mitigation objectives. Several Erasmus Mundus joint master’s degrees relate directly to climate-change issues, for example the 
[master of urban climate and sustainability](https://ec.europa.eu/programmes/erasmus-plus/projects/eplus-project-details/)
, which produces high-calibre graduates who can understand, assess and manage climate resilience in cities to live in a world that is 1.5 °C warmer, and the 
[master in renewable energy in the marine environment](https://ec.europa.eu/programmes/erasmus-plus/projects/eplus-project-details/)
, which is tailored to meet companies’ needs in the area of offshore renewable energy, and will have an international orientation underpinned by the direct participation, as associate partners, of world-renowned research centres, small and medium-sized enterprises and large companies within the industry. Another example is the support provided by the European Social Fund since 2016 in Sardinia Italy to over 5 000 jobseekers, helping them to find work in Europe's green and blue economy; first by strengthening their skills through job coaching, internships and training leading to certification, and then helping them to start up their own business.

·Support and investment in innovative and low-carbon technologies needed for the EU’s low-carbon transition. The Innovation Fund creates the financial incentives and supports projects with highly innovative technologies, processes or products that are sufficiently mature and have a significant potential to reduce greenhouse gas emissions. More than 540 proposals were received in the first two calls for projects and the first 30 grant agreements were signed in 2021 to scale up small clean tech projects.

The 2021-2027 multiannual financial framework also has an enhanced focus on protecting biodiversity. Through its ambition to devote 7.5% of its annual resources to this end as early as 2024, and 10% of its annual resources from 2026 onwards, the EU budget is doing its part to achieve the EU biodiversity strategy goals for 2030. In 2021, the Commission calculates that EUR 20 billion was dedicated to biodiversity mainstreaming, or 4.7% of the EU budget including NextGenerationEU.

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_02010.jpg)

Biodiversity contribution in 2021 (in million EUR).

Source: European Commission.

·The European Environment Agency provides geospatially detailed products on pan-European and local land-cover and land-use information as part of the Copernicus land monitoring service. The local component focuses on areas that are prone to specific environmental challenges and issues in the EU. Under this local component, the European Environment Agency offers information on hotspots protected under Natura2000, which is used to assess the preservation and status of these sites and whether the decline in grassland cover is evident. The status of Natura2000 hotspots ensures that they are accurately mapped, and can be used to draw attention to events that threaten the preservation of the sites.

·In terms of biodiversity protection, the LIFE – MarHa nature integrated project for effective and equitable management of marine habitats in France aims to improve the conservation status of all French marine habitat types listed in the habitats directive. The project is working towards the short-term goal of at least half of the habitats having good conservation status by 2025. In addition to LIFE, the project facilitates the coordinated use of about EUR 50 million in complementary funding from the European Agricultural Fund for Rural Development, the European Regional Development Fund and national funds.

·Ireland will support the restoration of peatlands, a measure which has the potential to promote and encourage the return of flora and fauna in these areas. It is estimated in the Irish plan that over a 30-year timescale, 3.3 million tonnes of CO2 emissions should be avoided thanks to the implementation of the enhanced rehabilitation measures.

The alignment of the EU budget with the EU environmental objectives has been strengthened by a requirement to comply with the ‘do no harm’ principle. As per the 
[interinstitutional agreement](https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32020Q1222(01)&from=EN)
 between the European Parliament, the Council of the European Union and the Commission, the implementation of the 2021-2027 budget needs to comply with this principle, as enshrined in the European Green Deal. It aims to ensure that no part of the budget – regardless of whether it is considered climate relevant or not – will harm, or go against, the EU’s climate and environmental objectives.

The EU budget also reflects the importance that the societal and economic effects of the transition towards a climate-neutral economy need to be addressed in a fair way, again in line with the European Green Deal and the European Pillar of Social Rights action plan (
[9](#footnote10)
). The new Just Transition Mechanism is designed to assist by supporting regions, industries and workers adversely impacted by the transition. The support from the Just Transition Fund is available to the regions most affected in each Member State, upon submission of territorial plans which are approved by the Commission as part of the cohesion policy programmes. Because of its late adoption, Just Transition Fund programmes have not yet been adopted, and implementation is delayed (
[10](#footnote11)
). When running, the mechanism is expected to mobilise around EUR 55 billion between 2021 and 2027 through three different pillars.

The proposal for a new Social Climate Fund is designed to help address the social and distributional impacts of the climate transition according to ‘Fit-for-55’ (
[11](#footnote12)
). More specifically, the fund intends to mitigate the effects on the most vulnerable people in society of the proposed introduction of emissions trading for buildings and road transport. The Social Climate Fund proposal complements the measures under the Just Transition Mechanism and the European Social Fund+.

A digital transition to boost EU growth potential

The roll-out of digital technologies offers significant growth opportunities for the EU. The Commission’s goal is to deliver a Europe fit for the digital age by empowering citizens, businesses and administrations with a new generation of digital technologies and appropriate upskilling and reskilling that will benefit everyone. For this reason, the legislators agreed to dedicate at least 20% of the funds under the Recovery and Resilience Facility to reforms and investments supporting digital objectives. The early indications are promising, as the 22 recovery and resilience plans adopted by the end of 2021 devote 26% of the funds to reforms and investments supporting the digital transformation.

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_02011.jpg)

Visual representation of the Recovery and Resilience Facility’s contribution to the different priorities. Calculations are based on the methodologies set out in annex VI and VII of the Recovery and Resilience Facility regulation.

Source: European Commission.

·The key achievements included the investment reflected in the Italian plan on grid reinforcement and the digitalisation of the electricity network to increase network capacity, allowing for the further integration of renewable energy production. This is an example of a project combining both aspects of the twin transitions, where both climate and digital are envisaged as major parts of the recovery of post-pandemic Europe.

·Continuing the deployment of local wireless connectivity through the WiFi4EU scheme, which now exceeds 8 000 installed networks and has more than 83 000 active access points in Europe.

·In June 2021, the new fibre submarine cable EllaLink connecting Europe and Latin America was inaugurated and went into operation. Through a true digital partnership, this 6 000 km underwater data highway brings the two regions closer than ever before. Thanks to the BELLA programme (
[12](#footnote13)
), co-funded by the European Commission, research and education communities on both sides of the Atlantic Ocean have started making use of this high-capacity, low-latency network connection.

The digital Europe programme shapes the digital transformation of Europe. The programme’s mission is to enhance the EU’s open strategic autonomy and competitiveness and to reinforce EU critical digital capacities by focusing on the key areas of: high performance computing; cloud-to-edge infrastructure; data spaces and artificial intelligence; cybersecurity; the necessary upskilling to provide a workforce for these advanced technologies; the deployment of these technologies and their best use for critical sectors like energy or climate; and support to industry, small and medium-sized enterprises and public administrations in their digital transformation. In spite of the later-than-expected adoption of the establishing regulation, the Commission still managed to hit the ground running and adopt a set of work programmes in 2021, followed immediately by a first set of calls for grants.

|  |  |  |  |
| --- | --- | --- | --- |
|  | High-performance computing  Deploy world-class exascale and post-exascale supercomputing capacities and ensure access to them. |  | Artificial intelligence  Deploy EU-wide common data spaces based on a cloud-to-edge federated infrastructure and promote the testing and adoption of artificial-intelligence-based solutions. |
|  | Cybersecurity  Build up advanced cybersecurity capabilities, ensuring wide deployment of state-of-the-art cybersecurity solutions throughout the European economy. |  | Advanced digital skills  Boost academic excellence in digital, by increasing the education offer in technologies, such as high-performance computing, cybersecurity and artificial intelligence and promote digital literacy. |
|  | Accelerating the best use of technologies  Deploy a network of European digital innovation hubs supporting the digital transformation of European public and private organisations. It will also address key societal challenges through high-impact deployments, while enabling cross-border interoperable digital public services and promoting an inclusive and trustworthy digital space. | | |

Digital Europe programme, examples of actions.

Source: European Commission.

Technological advances and research allow for innovative space-based applications that are benefiting our daily lives. Progress has been achieved with Galileo and EGNOS (
[13](#footnote14)
), the EU’s global satellite navigation systems, and Copernicus, the EU’s Earth observation system, promoting the reliability and performance of the services provided. End users benefit from more accurate and reliable positioning and robust and reliable full, free and open Earth monitoring data and information, modernising transport, enabling precision farming and promoting sustainability. Copernicus helps in assessing the impact of climate change, also by supporting actions during major disasters. Galileo can be instrumental in promoting fuel-efficient transport, helping sailors and pilots in their normal activities or when searching for people in distress.

Space programme: key achievements in 2021

·2.5 billion Galileo-enabled devices were in use at the end of 2021.

·Galileo performance on positioning accuracy is three times better than other systems of its kind.

·Two new Galileo satellites were launched in 2021, bringing the number of satellites in orbit to 28.

·There were eight Copernicus satellites as of 2021.

·The Copernicus climate change service has 100 000 users.

3.Building an economy that works
  
for people

The EU’s policy framework and its unique single market form the bedrock of a strong economy that works for EU citizens. The EU’s social market economy model targets both economic growth and the reduction of poverty and inequalities across EU regions. Strengthening the single market and small and medium-sized enterprises is essential to allow the EU economy to respond to the needs of its citizens. A strong economy is also a prerequisite to tackling the most important challenges of our time, including the twin transitions and enhancing the EU’s open strategic autonomy and global role. Knowledge and solutions arising from research and innovation can help improve competitiveness, thus promoting growth, creating jobs and addressing societal challenges.

The EU budget contributes through its many programmes covering several dimensions. Continuous investment efforts ensure the further deepening of the single market, yielding significant gains for EU consumers and businesses. Cohesion policy enables hundreds of thousands of projects to help small and medium-sized enterprises in all EU regions. Through quality education and training, many actions invest in people and support their (re)integration in employment, encouraging important projects on the real economy and contributing to structural change, research and innovation in EU Member States. In a society facing complex business, political, scientific, technological, health and environmental challenges, this multifaceted support is a crucial driver of economic growth, leading to breakthroughs that generate both profits and the well-being of the EU economy. These investments in infrastructure and human capital are playing a leading role in catalysing the transition towards an environmentally and economically sustainable Europe, in promoting equality of opportunities regardless of gender and in pursuing the three EU-level headline targets to be achieved by 2030 on employment, skills and poverty reduction set out in the European Pillar of Social Rights action plan (
[14](#footnote15)
).

Towards a stronger and fairer economy

The EU economy got back to its pre-pandemic output level in summer 2021, following a strong recovery of 5.3% in 2021 (
[15](#footnote16)
). In 2021, headcount employment in the EU increased by 0.9%, with the addition of around 1.8 million jobs. Employment increased across almost all education, age and gender groups, with approximately 1 million people coming out of unemployment towards the third trimester of 2021. This led the size of the EU’s labour force to exceed its pre-pandemic level by 0.3% in the third quarter of 2021. However, employment fell in the sectors most affected by lockdown measures, such as the accommodation, food and travel sectors. In addition, the increasing price of raw materials and energy – greatly exacerbated by Russia’s unjustified and unprovoked war of aggression against Ukraine – has lowered (
[16](#footnote17)
) growth expectations considerably.

The 2014-2020 European Social Fund has continued to make a positive contribution to lowering unemployment and poverty rates, which remain among the highest concerns for EU citizens. While the implementation of the European Social Fund Plus has been delayed due to the late adoption of its legal basis, as is the case for all other cohesion policy funds, its predecessor programme has, since 2014, helped 45.3 million people, of whom 5.4 million people have found a job, including self-employment, while the rest achieved other milestones as presented in the following sections.

The European Globalisation Adjustment Fund for Displaced Workers contributes to a more dynamic and competitive EU economy by improving the skills and employability of displaced people. Thanks to the enlarged scope of the fund in the 2021-2027 programming period, in 2021, eight applications were submitted by four Member States in order to assist 3 500 dismissed workers. In five of these cases, the COVID-19 pandemic was the main factor that led to the dismissals. Furthermore, six applications received in 2020 under the previous regulation were approved by the budgetary authority in 2021. Four of these applications related to the economic crisis stemming from the pandemic. Assistance from the fund includes packages of personalised services to reintegrate dismissed workers into sustainable employment as quickly as possible.

The EU budget contributes to strengthening the single market through the single market programme. Created to strengthen the governance of the single market, the EUR 4.24 billion budget for this programme covers a large range of different activities that were previously financed under separate programmes (the EU programme for the competitiveness of enterprises and small and medium-sized enterprises, the European statistical programme, financial and non-financial reporting and audit standards, consumer involvement in policymaking in the area of financial services, the consumer programme and food and feed) and the Commission’s prerogative budget lines. Despite the late adoption of its legal basis, the Commission managed to cover all strands of the programme in 2021.

The EU budget seeks to mobilise public and private investment by guaranteeing investment from implementing partners such as the European Investment Bank Group and other financial institutions. This is the role of the InvestEU Fund, which also includes a small and medium-sized enterprises window. Through an EU budget guarantee of EUR 26.15 billion, underpinned by EUR 10.46 billion from the EU budget, it will address the large investment gaps in areas that are key for the future. Moreover, at least 30% of the InvestEU Fund is expected to contribute to fighting climate change. Despite advanced negotiations on the InvestEU guarantee agreement with the European Investment Bank Group, along with the launch of the first call for expressions of interest in April 2021, no guarantee agreements had been signed with implementing partners as of the end of 2021. The guarantee agreement with the European Investment Bank Group was signed in March 2022, and further agreements are expected in the future.

Cohesion policy: addressing inequalities while responding to the pandemic

In addition to their traditional role of supporting investment and addressing inequalities across EU regions, cohesion policy funds have continued to play a key role in helping Member States address the immediate economic, social and health fallout from the COVID-19 crisis. Cohesion policy funds traditionally support all regions and cities in the EU, boosting job creation, business competitiveness, economic growth and sustainable development, and improving citizens’ quality of life. As was the case in 2020, the Commission also extended greater flexibility in the implementation of cohesion policy funds in 2021, so as to provide additional liquidity to Member States as they strived to contain the adverse implications of the COVID‑19 pandemic.

The 2014-2020 Fund for European Aid to the Most Deprived helped alleviate the worst forms of poverty in the EU by assisting the most deprived persons with food, basic goods and social inclusion support. In 2020 (
[17](#footnote18)
), almost 428 000 tonnes of food were distributed to approximately 15 million people, 1.96 million people received material assistance and 30 000 people benefited from social inclusion support. This is an increase compared to previous years, which could be partly attributed to the impact of the COVID-19 pandemic that left many people without jobs and at risk of poverty and social exclusion.

The start of the 2021-2027 programmes has been very challenging. The preparation of the 2021-2027 national and regional programmes has been affected by the late adoption of the 2021-2027 multiannual financial framework. The Commission has worked intensively with the Member States to prepare and finalise the new programmes as swiftly as possible. Preparations in the Member States have taken place in parallel with, for example, the preparation of the recovery and resilience plans, which has posed an operational challenge in some Member States.

Implementation in 2021 mostly reflected projects and resources from the previous multiannual financial framework (
[18](#footnote19)
). In addition to speeding up payments under the previous cohesion policy funds, results from the previous programmes are now accruing quickly.

With support from the regional fund since 2014 (
[19](#footnote20)
):

·4.4 million tonnes of CO2 were saved;

·5.5 million houses obtained access to broadband speeds of at least 30 megabytes per second;

·238 000 jobs were created in supported enterprises;

·52 million people benefited from new or modernised health services.

Supporting education and training

Beyond investment in physical infrastructure, the EU budget also provides essential support for building human capital and providing opportunities, for example through the European Social Fund and the Youth Employment Initiative, which had supported 45.3 million people by 2020. By the end of 2020, 7.4 million people had gained a qualification, 2.2 million people were in education or training as a result of the European Social Fund’s and the Youth Employment Initiative’s support and 3.4 million young people had benefited from the Youth Employment Initiative. By the end of 2021, Member States had received EUR 4.5 billion in relation to the Youth Employment Initiative.

EU research and innovation helps to protect citizens and EU values and plays an increasing role in the EU economy. It provides benefits for both consumers and workers, creating better jobs, building a greener society and improving the quality of life in the EU. It is also key in maintaining the EU’s competitiveness in the global market. With innovation policy as the interface between research and technological development and industrial policy, it aims to create a conducive framework for bringing ideas to market. The EU budget provides research and innovation funding, including targeted support for small and medium-sized enterprises, which represent 99% of businesses in the EU (
[20](#footnote21)
). One of the objectives of Horizon Europe is to foster all forms of innovation, facilitating technological development, demonstration, knowledge and technology transfer while strengthening the deployment and exploitation of innovative solutions.

In 2021, the Commission presented the first work programme under Horizon Europe. In this context, it has selected 65 innovative start-ups and small and medium-sized enterprises to receive EUR 363 million in funding for breakthrough innovations through the European Innovation Council Accelerator, to help them to bring their innovations to market and to scale up.

·In November, the Commission announced the winner of the 2021 EU Prize for Women Innovators and the European Capital of Innovation. The woman entrepreneur celebrated in 2021 was Merel Boers (Netherlands), co-founder and chief executive officer of NICO-LAB, a company offering cutting-edge technology to help physicians improve emergency care. The city of Dortmund in Germany was recognised as the 2021 European Capital of Innovation for its promotion of innovation in the community.

Improving the integration of the gender-equality dimension

In 2021, the Commission took further steps to implement its 2020-2025 gender equality strategy (
[21](#footnote22)
), which sets out the Commission’s strengthened commitment to achieving a Union of equality. In particular, the Commission strengthened the identification and analysis of gender equality impacts in better-regulation procedures (for both impact assessments and evaluations).

The EU budget makes an important contribution to equality objectives. NextGenerationEU and the 2021-2027 long-term budget provide a wide range of EU funding and budgetary guarantee instruments to support actions promoting women’s labour-market participation and work–life balance. Investing in care facilities, supporting female entrepreneurship, combating gender segregation in certain professions and addressing the imbalance in the representation of girls and boys in some sectors of education and training are of utmost importance. Through certain initiatives, such as the Daphne strand of the citizens, equality, rights and values programme, dedicated funding is provided to civil-society organisations and public institutions supporting the equality objective, including in specific areas of high relevance, such as tackling gender-based violence.

The Commission has developed – ahead of schedule – a pilot methodology to measure expenditure related to gender equality. Under the interinstitutional agreement accompanying the 2021-2027 multiannual financial framework, the Commission had committed to develop such a methodology. For each programme, at the most granular level possible, interventions are given a score of 0, 1, 2 or 0\*. Scores 0, 1 and 2 reflect the extent to which gender equality is targeted through EU budget interventions. Score 0\* is attributed to those interventions that may have an impact on gender equality, but where the Commission is currently not in a position to assess and substantiate that impact. This score will be updated if and when sufficient information becomes available. The Commission is reporting on the results of the application of this pilot methodology in this package. The graph below presents the distribution of programmes based on the maximum score attributed to (some of) their interventions.

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_02018.jpg)

Number of programmes qualifying for each of the four scores (0, 0\*, 1 and 2) proposed by the methodology. A programme may qualify for more than one score. In this case, its implemented annual commitments are broken down by score.

Source: European Commission.

The Recovery and Resilience Facility is also designed to promote the principles of gender equality. The 22 recovery and resilience plans adopted in 2021 include 115 measures with a focus on gender equality. Such measures include reforms to reduce the gender pay gap, combat inequality between women and men, support the upskilling of women and encourage flexible working arrangements. As regards investments, the facility contributes through a wide range of interventions. For example, the approved recovery and resilience plans contain measures to improve social and early-childcare infrastructure, introduce gender-equality certificates for companies, deliver training to boost women’s entrepreneurial skills, establish a support line for women in rural and urban areas and improve the regulation of professions traditionally taken up by women (such as domestic work and social care).

Delivering the 2030 agenda for sustainable development

The EU budget and NextGenerationEU contribute significantly to the targets stipulated in the United Nations’ 2030 agenda for sustainable development, aiming to achieve a transformative shift by 2030 that leaves no one behind. The 2030 agenda is the shared road map adopted under the auspices of the United Nations for a peaceful and prosperous world, and is of paramount importance to the values of the EU and the future of Europe. Since the adoption of the agenda in 2015, the EU has made significant progress in delivering on the sustainable development goals, implementing the sustainable development goals in both its internal and its external policies, and is continuing to strengthen its efforts. The COVID-19 pandemic has shown that the full implementation of the 2030 agenda is crucial in order to build back better after the crisis. The sustainable development goals provide the universal blueprint for a sustainable recovery.

The EU has embarked on a transition towards a low-carbon, climate-neutral, resource-efficient and circular economy that goes hand in hand with increased security, prosperity, equality and inclusion. In this light, the design and implementation of EU spending programmes aims to deliver on the objectives in each policy field while promoting sustainability through the actions and interventions of the relevant programmes. Through the European consensus on development, the EU has also aligned its approach to international cooperation and development policy with the 2030 agenda, placing the sustainable development goals and the Paris Agreement at the heart of its external action.

In the light of the interlinked nature of these goals, most of the EU’s budgetary programmes are designed to address multiple sustainable development goals. Currently, more than 85% of programmes (41 out of 48) contribute towards these goals. Those 41 programmes represented 96% of the entire EU budget. Examples of the EU budget’s contribution to the agenda for sustainable development can be found below.

|  |  |  |  |
| --- | --- | --- | --- |
|  | From March 2020 to December 2021, the Fund for European Aid to the Most Deprived co-funded the ‘Distribution of food parcels to students’ project to the amount of EUR 1.4 million. The project targeted the most disadvantaged students in third-level education in the Nouvelle-Aquitaine region of France. |  | The common agricultural policy contributes to the objective of achieving improved nutrition. Through its EU school scheme, it supports the distribution of fruit, vegetables and milk to schools across the EU together with educational measures on EU agriculture and the benefits of healthy eating. For 2017-2023, the total EU budget allocated amounts to EUR 220.8 million per school year. |
|  | In 2021, some EUR 16 million was mobilised under the Emergency Support Instrument to establish the necessary infrastructure for the issuance and verification of interoperable EU digital COVID-19 certificates, with the aim of facilitating the safe, free movement of citizens within the EU during the pandemic. |  | The ‘Education cannot wait’ initiative, supported by the EU since its inception in 2016 with EUR 27.5 million, has enabled the provision of education to 4.6 million children and young people, half of whom are girls, in 34 crisis-affected countries, and of training to more than 70 000 teachers. Under targeted COVID-19 response actions, this initiative reached 29.2 million children and young people and supported more than 88 000 teachers. |
|  | In Sweden, a project that ran from 2016 to 2019 and was funded with EUR 1.6 million from the European Social Fund Plus helped around 700 newly arrived migrant women to speed up the process of finding work or training while also breaking down gender stereotypes. |  | In 2021, the Copernicus land monitoring service systematically provided near-real-time information on global inland water bodies and their seasonal replenishment, including potential water availability from snow and ice cover. |
|  | The Connecting Europe Facility provided financial assistance amounting to EUR 1 052 million by the end of 2020 to the Baltic synchronisation project, which will allow the three Baltic states to gain full control of their electricity networks and to strengthen energy security. |  | Since 2020 , under support from the Instrument for Pre-accession Assistance to the ‘Social inclusion’ programme in Albania, 173 091 employees and 65 574 individuals benefited from measures to mitigate the impact of the COVID-19 pandemic on the economy. |
|  | As of 31 December 2020, the European Fund for Strategic Investments had supported transport infrastructure investment amounting to approximately EUR 9.3 billion to promote transport networks and cleaner fleets and to reduce congestion and bottlenecks. |  | In 2020, the humanitarian aid programme provided EUR 900 million in aid to forcibly displaced populations and their host communities. |
|  | Between 2021 and 2024, Erasmus+ provided EUR 1 million in support to the ‘Urban resilience and adaptation for India and Mongolia’ project. This project aims to promote green and blue infrastructure through information-technology-enhanced tertiary education linked to labour markets. |  | Under LIFE’s Ecotex project in Spain, an innovative, eco-efficient and highly replicable recycling system was developed for polyester textile waste. The system increased the circularity of the shoe industry and reduced greenhouse gas emissions. |
|  | Under the EU’s support for overseas countries and territories, the EUR 4 million in financing to be provided between 2021 and 2027 in the context of the EU’s cooperation with the French Southern and Antarctic Lands has the protection of biodiversity as a priority. |  | Over the 2021-2027 period, the European Maritime, Fisheries and Aquaculture Fund provides EUR 6.1 billion in support of making fishing and aquaculture activities in EU waters sustainable, as well as of progressively restoring and maintaining fish populations and the biodiversity of our marine habitats. |
|  | From 2016 to 2019, the European Regional Development Fund provided EUR 763 292 in support to the ‘Polish atlas of rains intensities’ project. This is an online, digital and comprehensive rainfall mapping system designed to better protect Polish towns and cities against the effects of heavy rainfall. |  | The European e-Justice Portal, established with funding from the justice programme, facilitates access to justice throughout the EU and served 4.4 million visitors in 2021. |
|  | The EU civil protection knowledge network was set up in December 2021 under the EU Civil Protection Mechanism. Its aim is to facilitate the sharing of experiences and lessons learned, and better-informed decision-making for more efficient and effective prevention, preparedness and response. | | |

Source: European Commission.

4.Strengthening Europe
  
as a geopolitical actor

The EU supports multilateralism and a rules-based global order through a more active role and a stronger voice for the EU in the world. It seeks a coordinated approach to external action – from development cooperation to the common foreign and security policy – that secures a stronger and more united voice for Europe in the world. One of the EU’s goals is to support its values, liberty and democracy in neighbouring countries and the world at large. Recent developments only serve to underscore the need for a coordinated European approach to urgent geopolitical challenges.

In 2021, the Commission used all of the flexibility provided by the EU budget to respond to what was already an extremely volatile geopolitical environment. The instrumentalisation of migration at the EU´s eastern borders required an immediate response, and the EU was fully engaged in helping neighbouring countries and international partners to strengthen their resilience in the face of a range of other challenges, including in particular the COVID-19 pandemic, humanitarian crises and the resulting migratory movements.

The EU budget is at the forefront of the European Union’s efforts to support partner countries, promote its wider geopolitical objectives and uphold its values globally. The new integrated Neighbourhood, Development and International Cooperation Instrument reinforces the EU’s capacity as a geopolitical actor at a time of exceptional challenges in Europe’s neighbourhood and beyond. The need for this is starkly illustrated by Russia’s unprovoked and unjustified invasion of Ukraine, which demands a strong and coordinated European response. The EU budget has been mobilised both to provide immediate assistance to Ukraine and its people and to help Member States support those fleeing Ukraine.

Neighbourhood, Development and International Cooperation Instrument

·EUR 60 billion for geographic programmes, including at least EUR 19 billion for the neighbourhood and EUR 29 billion for sub-Saharan Africa.

·EUR 6 billion for thematic programmes (human rights and democracy; civil-society organisations; peace, stability and conflict prevention; and global challenges).

·EUR 3 billion for a rapid response mechanism that allows the EU to respond swiftly to crises, contribute to peace, stability and conflict prevention, and strengthen the resilience of states, societies, communities and individuals, linking humanitarian aid and development action. It also ensures early action to address EU foreign policy needs and priorities.

·EUR 10 billion for a ‘cushion’ of unallocated funds to top up any of the abovementioned programmes and the rapid response mechanism in case of unforeseen circumstances, new needs, emerging challenges or new priorities.

The EU budget as a catalyst for strengthened resilience in partner countries

Beyond the emerging crisis at the EU’s borders, in 2021 the EU continued to support partner countries to maintain stability and promote their development. The primary concern during the year was the COVID-19 pandemic and the ensuing impacts on multiple societal and economic sectors. The pandemic came on top of existing crises, creating a highly challenging environment. Strengthening the resilience of partner countries was therefore of the utmost importance for the EU’s external actions. This was achieved through a variety of means of financial assistance to combat the economic effects of lockdowns and to increase the resilience of health sectors.

Using a Team Europe approach (
[22](#footnote23)
), the EU’s global response to COVID-19 amounts to EUR 46 billion and has touched more than 130 countries worldwide. The funds were used to help countries address the health emergency, strengthen their health systems, set out water and sanitation measures and mitigate the socioeconomic consequences of the pandemic. The Team Europe approach has helped the EU and its Member States to become the biggest donor to the COVID‑19 Vaccines Global Access (COVAX) initiative in 2021 with over EUR 3 billion provided for the purchase of COVID-19 vaccines. As a result, the target set to share over 250 million vaccine doses with low and middle-income countries by the end 2021 was achieved. In addition, the Commission supported research and innovation for therapeutics, diagnostics and vaccines and launched a Team Europe initiative to boost local production of health products and vaccines in Africa, as a key deliverable of the European Union–African Union Summit. In enlargement and neighbourhood countries, the EU has mobilised over EUR 4.5 billion to help alleviate the effects of the pandemic. In Ukraine alone, before the start of Russia’s unjustified and unprovoked invasion, the EU had disbursed EUR 600 million in macro-financial assistance for this purpose.

The EU has a robust humanitarian partnership with the United Nations and was a leader in global humanitarian donations in 2021, with operations in affected countries such as Afghanistan, Ethiopia, South Sudan, Syria, Turkey, Ukraine, Venezuela and Yemen, along with the Sahel region. During the year, the EU mobilised EUR 2.19 billion for humanitarian aid thanks to sizeable budgetary reinforcements.

The humanitarian situation in Afghanistan and in the region deteriorated drastically in 2021, requiring the adaptation of priorities and urgent assistance. Even before the current crisis, the ongoing conflict, insecurity, extreme drought and the COVID-19 pandemic had caused large-scale suffering and displacement of people in Afghanistan and the region. The takeover of Kabul by the Taliban on 15 August has added an additional layer of complexity. The European Union quadrupled its humanitarian funding in 2021 to a total of EUR 222 million, expecting to reach at least 5 million beneficiaries in extreme need. Also, between September and December, 280 tonnes of cargo – mainly medical equipment, COVID-19 supplies and food items – was transported to Kabul through the EU’s humanitarian air bridge. In addition, the Commission focused its efforts on preventing the collapse of the country and on socioeconomic repercussions inside and outside Afghanistan’s borders, with particular attention to women and girls’ rights. Projects that were ongoing were reoriented and EUR 250 million was allocated to basic needs and livelihoods support (initially referred to as humanitarian+ assistance) aimed at keeping minimal essential services (including education and maintaining basic livelihoods). In regard to recent developments around equal access to secondary education, most teachers targeted by EU support received emergency cash support during the winter months (where they did not get paid salaries).

Other support in 2021

·EUR 3 billion was provided in emergency macro-financial assistance to limit the economic fallout of the COVID-19 pandemic in 10 enlargement and neighbourhood partner countries.

·A total of 82 countries received support for humanitarian cooperation from the EU.

·2.3 million young people living in humanitarian crises benefited from access to education.

·5.5 million vaccination doses were provided to refugee infants in Turkey under the Facility for Refugees in Turkey.

·4.2 million doses of COVID-19 vaccines were provided by Member States, and 2.2 million through COVAX in the western Balkans.

·A EUR 3.4 billion package of financial assistance was put in place to combat the COVID-19 pandemic and its socioeconomic effects in the western Balkans.

·EUR 1 billion was made available to purchase vaccines through the COVAX Facility.

·500 tonnes of essential medical supplies and humanitarian cargo were delivered to support some of the world’s most vulnerable communities using the humanitarian air bridge.

·There were 78 calls to use the EU Civil Protection Mechanism to respond to forest fires in the western Balkans, the earthquake and hurricane in Haiti and the COVID-19 pandemic in non-EU countries.

Supporting EU values in the neighbourhood and beyond

The EU budget helps to promote EU values abroad, support partner countries’ economies and stabilise neighbouring countries by strengthening their resilience to current and future challenges. Strengthening the rule of law, democracy and human rights and promoting good governance and overarching priorities such as the twin transitions are therefore the leading objectives of the Commission’s external action policy. With an allocation of EUR 80 billion for 2021-2027, the Neighbourhood, Development and International Cooperation Instrument – Global Europe will help to stimulate sustainable long-term socioeconomic recovery and job creation in the EU’s neighbourhood.

For Georgia, Moldova and Ukraine, the events of 2021 and 2022 – in particular Russia’s war of aggression against Ukraine – have reinforced their aspirations to join the Union even more. They have already submitted their membership applications, and the Commission will provide its opinions shortly. Other accession candidates have largely shown progress, with some exceptions. Rewarding progress where due, by moving ahead to the respective next stage of their respective processes, is key for the Union’s credibility and geopolitical clout. With a programming budget for 2021 of EUR 1.9 billion, the Instrument for Pre-accession Assistance III is an essential facilitator for the adoption and implementation of the political, institutional, legal, administrative, social and economic reforms needed in candidate and potential candidates such as Albania, Bosnia and Herzegovina, Kosovo (
[23](#footnote24)
), Montenegro, North Macedonia, Serbia and Turkey.

Achievements in the immediate EU neighbourhood by the end of 2021

·8 826 housing units had been built.

·75 water monitoring stations were built in line with the EU water framework directive.

·400 organisations were working on preventing and tackling violence against women.

·12 000 educational facilitates had been upgraded in Turkey.

Further afield, the EU budget supported vulnerable people by providing life-saving assistance in countries overcome by conflict, such as Afghanistan, Ethiopia and Yemen. The EU continued to support vulnerable people inside Syria, along with Syrian refugees in Turkey and other countries in the region. To address an unprecedented set of challenges facing humanitarian efforts, in March 2021 the Commission adopted a renewed strategic outlook to strengthen the EU’s global humanitarian impact and continue to provide leadership. These initiatives will allow a more efficient use of resources; ensure faster delivery of humanitarian aid by supporting humanitarian partners – including by setting up a European humanitarian response capacity using a Team Europe approach; expand the donor base inside and outside Europe; and address the root causes of crises by delivering humanitarian aid in close collaboration with development and peacebuilding organisations.

The EU dedicates around 10% of its budget to external action, providing funding to partner countries in the form of grants, public procurement, financial instruments, budgetary guarantees and budget support. The Commission works hand in hand with international organisations, private bodies and Member States to increase the impact of EU support. Examples include the following.

·In the crucial area of climate change, the EU provided technical support to 60 partner countries in 2021, for the upgrade and implementation of their nationally determined contributions, with a particular focus on the sustainable energy sector.

·The implementation of the NaturAfrica initiative started in 2021 in six regional landscapes and in several countries (Benin, Burundi, Cameroon, Congo, the Democratic Republic of the Congo and Togo). NaturAfrica aims to improve the livelihood of 65 million people, sequestering up to 21 billion tonnes of carbon, stabilising 3 million km² of land and ensuring water security. The Commission also pledged an unprecedented EUR 1 billion to protect, restore and sustainably manage forests for 2021-2024.

·Multi-scale flood monitoring and assessment services for West Africa is a project sponsored through the collaboration between the African Union Commission and the European Commission. The project has seven implementing partners spread across five African countries: Benin, Burkina Faso, Côte d’Ivoire, Ghana and Nigeria.

·The EU’s global Technical Assistance Facility is a long-standing EU programme that assists partner countries in improving regulatory frameworks, enhancing institutional capacities and mobilising investment in sustainable energy.

·The gender-responsive teaching and learning in the early years project, co-funded by the EU, has transformed preschools in 15 mountainous districts in central Vietnam into environments of gender-responsive play-based learning, involving parents to the fullest in the process.

In April 2021, the EU and the members of the Organisation of African, Caribbean and Pacific States (OACPS) concluded the negotiations of the draft agreement renewing their strong partnership, known as the post-Cotonou agreement. Before the agreement can be applied and come into effect, the respective parties will need to complete their internal approval procedures.

The EU kept the momentum with continued engagement with its African partners and a diverse range of stakeholders across both continents to further discuss the long-term priorities at the heart of a renewed Africa-EU Partnership. Ahead of the sixth EU-African Union Summit, which took place on 17-18 February 2022, ministers of foreign affairs met in Kigali in October 2021 to discuss the most important common priorities, opportunities and challenges for the agenda.

Launched in 2021, the Global Gateway (
[24](#footnote25)
) sets out a new strategy to boost smart, clean and secure links in the digital, energy and transport sectors, and to strengthen health and people-to-people connectivity through education and research across the world. It contributes to narrowing the global infrastructure investment gap worldwide, in line with the commitment made in June 2021 by G7 leaders to launch a values-driven, high-standard and transparent infrastructure partnership to meet global infrastructure development needs. In a Team Europe approach, the EU, its Member States and European Financial Institutions will jointly mobilise up to EUR 300 billion of investments by 2027. It puts sustainability at the heart of EU action by requiring partner countries to adhere to the rule of law, and it has a strong focus on supporting expertise and creating an enabling environment to attract investment and on limiting risks of debt distress in partner countries.

Strengthening resilience extends to tackling migration challenges

Along with COVID-19, another major destabilising factor for neighbouring and partner countries was migratory movements heading for EU Member States. These pose significant challenges due to the number of people arriving and political sensitivities, resulting in an increasing need to strengthen resilience.

In 2021, the Lukashenko regime in Belarus abused the fragile status of migrants from countries in the Middle East to use them as an instrument in a hybrid attack, particularly on Latvia, Lithuania and Poland. This migratory stream came on top of those that already existed across the Mediterranean Sea and through Turkey. After evaluating the Latvian, Polish and Lithuanian proposals for specific actions to support border management, the Commission made available EUR 185 million to improve border surveillance control. The Commission acted promptly with a number of measures, including emergency aid of EUR 36.7 million for Lithuania in August, along with another EUR 14.9 million in December for enhanced border control equipment, and EUR 2.3 million for Latvia.

Additional assistance

·Deployment of officers in Latvia, Lithuania and Poland by the European Border and Coast Guard Agency.

·Support for Latvia, Lithuania and Poland from the European Border and Coast Guard Agency in the voluntary return of non-EU nationals.

·Deployment of officers in Lithuania and Poland by the European Union Agency for Law Enforcement Cooperation.

·Deployment of experts and interpreters in Latvia and Lithuania by the European Union Agency for Asylum.

In addition to the EUR 360 million envisaged for Latvia, Lithuania and Poland under the Border Management and Visa Instrument for the 2020-2027 financial period, the Commission has made available a further top-up amount of around EUR 200 million for 2021 and 2022.

The EU budget has provided significant financial support to countries on the migratory routes. The Commission put forward a proposal for an additional EUR 3 billion for the Facility for Refugees, funded exclusively from the EU budget, to continue to support refugees and host communities, and a EUR 1 billion commitment per year, as of 2021, through the Instrument for Pre-accession Assistance. Due to the protracted nature of the refugee crisis, assistance continues to shift from humanitarian to development cooperation, which has already begun within the framework of the second tranche of the Facility for Refugees in Turkey, with the double objective of ensuring continuity of support while transitioning to national structures. The Commission continued to support refugees through this facility, which has an operational budget of EUR 6 billion. So far, EUR 4.5 billion has been disbursed, with an additional EUR 3 billion allocated for the 2021 to 2023 period. In 2021, over 1.5 million refugees received assistance under the humanitarian component of the facility. In the southern neighbourhood, the EU Regional Trust Fund in Response to the Syrian Crisis managed to reach 8.4 million people, and the EU Emergency Trust Fund for Africa improved access to essential public services for more than 4 million people.

The EU’s policies for the defence industry strive to ensure competitiveness, innovation and security for all EU citizens

A common defence policy needs to be underpinned by a solid defence-industrial policy based on cooperation and focusing on strategic capabilities that meet Member States’ needs, and on emerging and disruptive technologies that are critical for security and defence. With research and development lagging behind, and the cost of defence systems rising, cooperation in the EU defence industry is essential.

The European Defence Fund is an ambitious, balanced and inclusive programme that ensures a high level of Member State involvement in cooperative defence research and development projects meeting the operational needs of armed forces. Using the EU budget to support these projects fosters collaboration, contributes to reducing market fragmentation and improving interoperability and enhances the competitiveness of the European defence industry. The fund was launched in 2021 through the adoption of its first annual work programme, and has a budget for the 2021-2027 period of EUR 7.9 billion, including EUR 2.6 billion for research and EUR 5.3 billion for capability-driven development.

Details on the European Defence Fund

·Twenty-three calls for proposals were published in 2021 for a total of EUR 1.2 billion of EU funding in support of collaborative defence research and development projects.

·Around EUR 700 million has been allocated to projects addressing large-scale and complex defence platforms and systems such as next-generation fighter systems, ground-vehicle fleets, multirole and modular offshore patrol vessels, and ballistic missile defence.

·Up to 8% of the 2021 budget is devoted to funding disruptive technologies for defence, and around 6% to open calls for small and medium-sized enterprises.

·Small and medium-sized enterprises represent approximately 50% of the 1 100 entities that have submitted proposals.

In 2021, 28 new projects were also awarded a total of more than EUR 291.2 million from the European Defence Fund precursor programme, the European defence industrial development programme.

The recent unprovoked and unjustified Russian aggression against Ukraine has further emphasised the need for a real EU defence policy. In recent years, the EU had already stepped up its efforts in the crucial areas of defence – including the defence industry – and space, to boost its capabilities and resilience and thus better prepare for future crises.

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Concerted action to support Ukraine and front-line Member States

The first months of 2022 have been dominated by Russia’s unjustified and unprovoked war of aggression against Ukraine. The EU has delivered a strong and unified response, encompassing robust and comprehensive financial and economic sanctions to weaken Russia’s economic base and wide-ranging measures to support Ukraine and its people.

The EU budget is playing a crucial role in this response. Essential in-kind support, such as medical supplies and equipment, is being channelled to Ukraine through the EU Civil Protection Mechanism. The Commission has deployed an emergency package of EUR 550 million to provide humanitarian and emergency assistance to secure access to education, healthcare and food. Emergency macro-financial assistance will help Ukraine address its financing needs and strengthen economic stability. The Commission has stood at the forefront of global pledging events to support internally displaced people and refugees. The EU has also provided unprecedented support to Ukraine through the European Peace Facility to bolster the capabilities and resilience of the Ukrainian Armed Forces and protect the civilian population. With its communication of 18 May, the Commission has proposed corner stones and principles for short-term relief and the reconstruction of Ukraine. These will require support clearly beyond the means provided by the current multiannual financial framework.

The EU budget is also helping front-line Member States cope with the humanitarian impact of the inflow of millions of people fleeing the war and entering the EU. The temporary protection directive was activated for the first time to offer quick and effective assistance to people fleeing the war in Ukraine. Home affairs and cohesion policy funds were mobilised to allow Member States to use available funding to deal urgently with the inflow of refugees. The cohesion’s action for refugees in Europe initiative created the flexibility necessary for Member States to channel remaining cohesion policy funding and REACT-EU to quickly provide emergency support. For instance, through the European Social Fund, the Member States may provide diverse support to refugees, inter alia in finding jobs, starting or continuing education and accessing childcare.

Annex 2 – Internal control and financial management

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5.Strong tools to manage and protect the EU budget in a complex environment

It is the Commission’s duty to make the best possible use of taxpayers’ money to support the achievement of the EU’s policy objectives. It is therefore essential to ensure that funding reaches the intended beneficiaries in an effective, efficient and economical manner, at a high level of compliance with the applicable rules. The Commission strives to achieve the highest standards of financial management while striking the right balance between a low level of error, fast payments and reasonable costs of controls.

6.The EU budget: a wide variety of areas, recipients and spending managed in a complex environment

In 2021, the expenditure managed by the Commission amounted to EUR 172 billion (
[25](#footnote26)
) (see chart below). This encompasses the share of the EU budget managed by the Commission, along with the European Development Fund (
[26](#footnote27)
) and the EU trust funds. This expenditure corresponds to more than 200 000 payments, ranging from a few hundred euros (for Erasmus+ mobility grants) to hundreds of millions of euros (for large projects such as the International Thermonuclear Experimental Reactor or Galileo and Copernicus, along with budgetary support for developing countries) (
[27](#footnote28)
). The recipients of EU funds are very diverse and numerous.

|  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
| Single market, innovation and digital | Cohesion, resilience and values | Natural resources and environment | Migration and border management | Security and defence | Neighbourhood and the world | European public administration  EUR 7 billion (4%) |
| EUR 17.3 billion   (10%) | EUR 75.8   billion (44%) | EUR 56.5   billion (33%) | EUR 2.5 billion (1%) | EUR 0.01 billion (0%) | EUR 12.7 billion (7%) |  |
|  |  |  |  |  |  |  |
| More than    35 000 grants were signed under the Horizon 2020 research programme | More than 1.4 million enterprises and 45.3 million people have been supported since 2014 | 6.6 million beneficiaries have been supported with agricultural funds | More than 1.2 billion EU digital COVID certificates had been generated by the end of 2021 in 60 countries across five continents | More than    1 000 companies and research actors participated in the proposals submitted under the European Defence Fund in 2021 | Assistance was provided to around 130 non-EU countries on five continents |  |

Relevant expenditure of the EU budget implemented by the Commission in 2021, by policy area, in % and billion EUR.

Source: European Commission annual activity reports.

Similar to previous years, about three quarters of the budget (
[28](#footnote29)
) (e.g. expenditure on cohesion policy and natural resources) is implemented under shared management. This means that Member States, or bodies designated by them, select projects, distribute funds and manage expenditure in accordance with EU and national law, and share this responsibility with the Commission. The rest of the budget is spent either directly by the Commission or indirectly in cooperation with entrusted entities. The table below describes the three management modes.

|  |  |  |  |  |
| --- | --- | --- | --- | --- |
| Management mode | Description | % of 2021 expenses | Examples of programmes/ spending | Other actors involved, in cooperation with the Commission |
| Direct management | Funds are implemented by the Commission | 19% | Horizon 2020; Connecting Europe Facility; administrative expenditure | n/a (funding goes directly to the beneficiaries) |
| Indirect management | Funds are implemented in cooperation with external entities | 7% | Erasmus+; part of development and humanitarian aid; pre-accession assistance | Agencies, joint undertakings, United Nations, World Bank, European Investment Bank, European Bank for Reconstruction and Development, non-EU countries |
| Shared management | Funds are implemented in cooperation with Member States’ national and/or regional authorities, which have a first level of responsibility | 74% | Agricultural funds; Maritime and Fisheries Fund; European Regional Development Fund; Cohesion Fund; European Social Fund and Youth Employment Initiative; Migration, Border Management and Security funds | Paying agencies for common agricultural policy: 76. Managing authorities for cohesion policy funds: 492, in all Member States |

2021 expenses by management mode.

Source: ‘European Commission draft annual accounts 2021 – Statement of financial performance’.

2021 was the first year of the new 7-year financial framework. In practice, the related payments will only start to reach significant levels in the years to come. In 2021, the pandemic continued to significantly affect implementation and the way we and our implementing partners work.

7. A robust governance system underpinning the College’s responsibility

The governance system and chain of accountability used by the European Commission are tailored to its unique structure and role. The Commission’s governance arrangements have been strengthened over time and adapted to changing circumstances, as reflected in the latest communication, issued in June 2020 (
[29](#footnote30)
).

As authorising officer of the European Commission, the College of Commissioners is politically responsible for the management of the EU budget, which encompasses accountability for the work of the Commission’s departments. The main building blocks of the EU budget’s governance – underpinned by a clear division of responsibilities between the political and management levels, a strong commitment to performance management and compliance with the legal framework, transparency and high standards of ethical behaviour, and well-defined reporting – lead to a solid chain of assurance building and accountability.

Under the Commission’s unique model of decentralised decision-making in budget implementation, the College of Commissioners delegates the day-to-day operational management to the 51 authorising officers by delegation (
[30](#footnote31)
) who manage and steer their departments towards delivering on their objectives as defined in their strategic plans, taking into account available resources. The authorising officers by delegation are accountable for the share of the EU budget implemented in their department.

In their annual activity reports, the authorising officers by delegation report in a transparent way on the performance and results achieved, on the functioning of their internal control systems and on the financial management of their share of the EU budget – taking account of the assurance provided by Member States under shared management. Each annual activity report contains the director-general’s declaration of assurance. The latter may be qualified with a reservation if authorising officers by delegation identify any weaknesses that have a significant impact. In parallel, they put in place action plans to mitigate future risks and to strengthen their control systems.

The annual management and performance report presents the synthesis of the annual results for the EU budget at the Commission level, based on the assurance and reservations contained in all the annual activity reports. This report is part of the Commission’s integrated financial and accountability reporting package (
[31](#footnote32)
), which is adopted by the College of Commissioners.

The ensuing annual budgetary discharge procedure allows the European Parliament and the Council of the European Union to hold the Commission politically responsible for the implementation of the EU budget. The European Parliament’s decision takes into consideration the Commission’s integrated financial and accountability reporting; the annual and special reports of the European Court of Auditors, along with its statement of assurance on the reliability of the accounts and the legality and regularity of underlying transactions; the hearings of Commissioners and directors-general; and a recommendation from the Council.

Commission’s assurance building and accountability for the EU budget: clear roles and responsibilities

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These robust governance arrangements help the College of Commissioners to deliver on the Commission’s objectives, to use resources efficiently and effectively and to ensure that the EU budget is implemented in accordance with the principles of sound financial management. An overview is presented in the chart above.

8.A robust internal control framework evolving with its environment

The Commission has in place a strong corporate internal control framework based on the highest international standards (
[32](#footnote33)
).

9.The internal control framework has this year again played a key role in ensuring the achievement of the Commission’s objectives in a fast-changing environment

In the context of the COVID-19 pandemic, the Commission’s internal control framework has been an essential safeguard for Commission operations. The Commission has continued to closely monitor the impact of the ongoing crisis on its operations, including on assurance building. Building on the experience acquired in 2020, the Commission has continued to implement the mitigating measures necessary to prevent or limit any negative impact on the implementation of the EU budget. For 2022, the Commission will remain vigilant in order to be able to face any new surge in relation to the pandemic.

A particular focus has been put on adapting the internal control systems to the needs of NextGenerationEU operations. In December 2021, the Commission increased the strategic focus of the risk function by setting up a NextGenerationEU high-level risk and compliance policy in line with the Commission’s general internal control framework, as defined in 2017 (
[33](#footnote34)
). It provides an appropriate risk management and compliance framework to protect the financial interests of the EU and to ensure the probity, integrity and transparency of NextGenerationEU operations such as borrowing, debt management and lending operations. This high-level risk and compliance policy supplements the NextGenerationEU governance framework (
[34](#footnote35)
), which outlines the main roles and responsibilities relating to the risk management and compliance framework of NextGenerationEU operations. On the expenditure side, the Commission has put in place specific audit and control strategies in view of its new responsibility for the implementation of the Recovery and Resilience Facility (see Annex 3).

In order to contribute to the effectiveness of the internal control of EU budget implementation, the Commission has adopted and published guidance on the avoidance and management of conflicts of interest under the financial regulation (
[35](#footnote36)
), covering all methods of EU budget implementation (direct, indirect and shared management). The guidance is part of the Commission’s efforts to further strengthen the measures to protect the EU’s financial interests. It aims at raising awareness and promoting the uniform interpretation and application of the rules on avoidance of conflicts of interest among staff of the EU institutions and Member State authorities, along with any person involved in the implementation of EU funds. Following the publication of the guidance, the Commission has been delivering targeted awareness-raising actions and presentations to Member State authorities and related expert networks, and its internal specialised networks. Such targeted actions and presentations will continue to take place over the course of 2022 and beyond.

10.Commission departments assess their internal control systems as effective in spite of the persistence of the COVID-19 pandemic

For 2021, the internal control principles are upheld and functioning well. The assessment undertaken confirms that the Commission departments have made continuous efforts to address the (essentially minor) deficiencies identified in 2020. These efforts have had a positive impact mainly on the risk assessments, to which the Commission has paid close attention, in particular in the context of the COVID crisis and the specific policy challenges faced over the past several years.

The Commission acknowledges that for some internal control principles there is still room for minor, and in a very few cases major, improvements. This mainly concerns control activities, where the assessment is mostly linked to control results (i.e. residual error rates above 2%) or audit findings (e.g. delays in the completion of pillar assessments in indirect management – see also control results for heading 6).
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Assessment of the functioning of the 17 internal control principles: number of Commission departments that reported that internal control principles were upheld and functioned properly in 2020 and 2021.

Source: European Commission annual activity reports.

The Commission and the executive agencies are taking action to address the weaknesses identified. Moreover, awareness-raising initiatives were put in place again in 2021, such as the ‘awareness week’ organised jointly by the executive agencies. Together with the regular exchange of good internal control practices, this contributes to maintaining a strong internal control culture across the institution.

11.Multiannual control strategies ensure that the taxpayers’ money is well spent

12.Control strategies are multiannual and risk differentiated

Within their internal control systems, the authorising officers, as managers of the EU budget, put in place multiannual control strategies designed to prevent errors and, if they cannot be prevented, detect and correct them. They need to build their assurance from the bottom up and in detail, i.e. by programme or other relevant segment of expenditure. This allows the Commission to detect weaknesses and errors in a detailed and differentiated manner for each programme or segment of expenditure, to identify the root causes of systemic errors (e.g. the complexity of rules in certain policy areas, such as research and cohesion), to take targeted corrective actions and to ensure that any lessons learned are used to improve the management and control systems and are factored into the design of future financial programmes.

EU spending programmes are multiannual by design, and so are the related control strategies. This implies that the detection and correction of errors may happen at any time, up to the point of closure at the end of a programme’s life cycle. Moreover, the control strategies are risk differentiated, i.e. they are adjusted to the different management modes, actors involved, policy areas and/or funding arrangements and associated risks.

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The European Commission’s multiannual control cycle.

For the 2021 results mentioned in the circles, see section 2.1.

Source: European Commission.

13.Prevention is the first defence against errors

The Commission’s key preventive mechanisms consist of ex ante controls and audits (see Annex 5 in Volume III), including management verifications by Member States’ authorities before and after declaring expenditure to the Commission under shared management, as well as system audits complemented by audits of representative samples of operations to detect weaknesses in the implementing partners’ management and control systems. These preventive controls lead to the rejection of ineligible amounts before the Commission makes (final) payments and to the interruption and suspension of payments until the deficiencies in the systems are fixed. In addition, guidance provided to beneficiaries and implementing partners helps to prevent errors.

Under shared management, the corrections implemented by the Member States, before submitting their cost claims, result from the controls and audits, including systems and operations audits, they carry out ex ante and ex post at their level. Such corrections are mostly applied by way of deductions of ineligible expenditure from payment claims to the Commission or certified accounts.

The amounts corrected at the Member State level may be reused, under certain circumstances. This serves as an incentive for Member States to correct irregular expenditure before they submit their cost claims to the Commission.

14.The detection and correction of errors complements prevention

Where preventive mechanisms have not been effective, it is important that errors affecting EU expenditure are detected a posteriori, through ex post controls that the Commission carries out on amounts it has accepted and paid out (see Annex 5 in Volume III). These errors are then corrected by the Commission during the same year or in subsequent years, by way of recoveries or offsetting from final recipients under direct and indirect management or from the Member States under shared management.

In relation to agriculture, the bulk of the financial corrections correspond to cases where systemic errors have been identified and corrections applied to the relevant expenditure for a given paying agency or operational programme. These relate mainly to deficiencies affecting payments made in previous years.

In relation to cohesion, the level of such Commission corrections is explained by the fact that most of the corrections are implemented by the Member States, including those of errors found by the Commission, the Court of Auditors and the European Anti-Fraud Office (OLAF). This allows the Member State to reuse the corresponding amounts for eligible expenditure. If control systems work properly at the Member State level, the need for corrections at the Commission level is much more limited and the number of such corrections is thus lower.

Furthermore, weaknesses in control systems, detected through risk-based and/or system audits, are also addressed, and systems are corrected. In the context of shared and indirect management, this is done in the first place by the implementing Member States and partners. For more information on the protection of the EU budget, see Annex 5 in Volume III.

15.Corrective capacity for EU funds

In 2021, the corrective capacity for the funds managed by the Commission corresponds to the addition of:

·the corrections implemented by the Member States before submitting their cost claims, amounting to EUR 4 557 million;

·the result of the preventive measures implemented by the Commission through deductions and other adjustments before payment/acceptance by the Commission, amounting to EUR 298 million;

·the corrections implemented by the Commission after payment/acceptance by the Commission, amounting to EUR 765 million.

The number of corrections implemented after payment by the Commission has decreased compared to the previous multiannual financial framework, mainly due to the specific features of the multi-layer assurance system and annual programme accounts introduced in 2014-2020 for cohesion, where corrections are mostly implemented by the Member States regardless of whether the corresponding errors were detected by them or by the Commission (
[36](#footnote37)
). In 2021, the corrections decided by the Commission on the basis of its own audits and controls amounted to EUR 193 million. The overall corrective capacity has increased compared to 2020, when it was affected by the one-off effect of reimbursements made to Member States following judgments by the Court of Justice of the European Union relating to agricultural funds (for more details, see Annex 5 in Volume III).

16.Fight against fraud: the European anti-fraud strategy

The Commission has zero tolerance for fraud. It should be underlined that fraud represents a very limited part of irregular spending, most of which relates to errors.

The Commission has achieved good progress on its corporate anti-fraud strategy. Pursuant to Article 325 of the Treaty on the Functioning of the European Union, the Commission and the Member States protect the EU budget from fraud and other illegal activities. The current corporate anti-fraud strategy, adopted in April 2019, and its action plan play a significant role in preventing the possible misuse of EU money. OLAF monitors its implementation. By November 2021, good progress had been achieved, with 47 out of the 63 actions completed and the vast majority of the remaining actions expected to be completed by mid-2022.

In line with its anti-fraud strategy, the Commission has reinforced coordination and cooperation, notably through the Fraud Prevention and Detection Network, which brings together the anti-fraud correspondents of Commission services and executive agencies under OLAF’s lead. In this context, 13 Commission services updated their local anti-fraud strategies in cooperation with OLAF in 2021. By the end of 2021, 90% of all local anti-fraud strategies had been updated since the adoption of the Commission’s anti-fraud strategy in 2019.

Other significant activities in the area of anti-fraud in 2021 included the launching of a study on the future of the Irregularity Management System. Member States use this system to report cases of fraud and other irregularities detected in shared management. The Commission uses this information to develop its annual report on the protection of the EU’s financial interests in cooperation with Member States, in line with Article 325 of the Treaty on the Functioning of the European Union. The Commission adopted its 2020 report in September 2021 (
[37](#footnote38)
).

In 2021, OLAF also continued to perform investigative activities, reporting on them in its annual reports (
[38](#footnote39)
).

Fighting fraud in practice: protecting the EU from fake offers of COVID-19 vaccines

Scammers will seize any opportunity to make an illicit profit. Right from the beginning of the pandemic, OLAF noticed how fraudsters were trying to take advantage of the urgency of the situation and of the initial lack of personal protective equipment, at the cost of the health and safety of people in Europe. Fraudulent operators tried to infiltrate the EU market with fake or substandard face masks, testing kits, disinfectants and other products relating to COVID-19. OLAF’s work to counter these continued in 2021, and by the end of the year over 100 million fake or substandard products had been removed.

As vaccines against COVID-19 were developed, OLAF investigators remained alert for possible new attempts at fraud. In February 2021, OLAF issued a stark public warning against possible scams relating to COVID-19 vaccines. OLAF had been receiving information from governmental sources in EU Member States about offers by alleged intermediaries to sell large quantities of vaccines, mostly of the kind approved for use in the EU.

The aim of the fraudsters – as OLAF established – was to convince public authorities to make large down payments to secure the sale, and to disappear with the money. The intermediaries represented opportunistic companies that were inactive until shortly before their offers, or that had previously been trading in very different types of goods. These companies were often located in non-EU countries to make their identification more difficult and make them harder to investigate.

OLAF’s investigators mapped the situations, established their suspicious nature and shared the information with the Member States and with Europol. Where necessary, OLAF also worked together with its international partners.

To date, these scam attempts or fake offers together represent almost 1.2 billion vaccine doses at a total asking price of over EUR 16.4 billion. The number of such reports increased rapidly in the weeks following OLAF’s warning, but eventually stabilised as the patterns were exposed for the attempts at fraud that they were.

Despite the continuing pandemic, anti-fraud investigations and operations did not stop at products relating to COVID-19, and ranged from counterfeit alcoholic drinks to hazardous toys, and from the illicit trading of climate-damaging gases to waste smuggling. As every year, OLAF also uncovered several cases of fraud targeting EU funds, with complex cross-border schemes attempting to steal hundreds of millions of euros from EU taxpayers.

Fraud prevention and sanctioning also continued through the early detection and exclusion system (EDES), which allows for the early detection of unreliable economic operators and their exclusion from implementing EU funds under direct and indirect management. EDES proceedings are based on information collected through audits and checks carried out by authorising officers by delegation, final judgments or administrative decisions by national authorities, decisions by international organisations and, for the most part, OLAF investigations. EDES works based on a strong and fruitful interaction between the authorising officers responsible and the EDES panel.

2021 was marked by a stable trend in cases submitted to the interinstitutional EDES panel for possible administrative sanctions (i.e. exclusion and/or financial penalties and, where applicable, the publication of the sanctions). These are determined in line with the proportionality principle (i.e. taking into account the seriousness of the situation, including the impact on the EU’s financial interests and image; the time that has elapsed since the misconduct occurred; the duration and recurrence of the misconduct; the degree of ill intention or negligence; and the amount at stake).

17.Implementing the conditionality regime for the protection of the EU budget

Since the adoption of the regulation on a general regime of conditionality for the protection of the EU budget in December 2020 (
[39](#footnote40)
), the EU has, for the first time, a specific tool to protect its budget from breaches of the principles of the rule of law.

The regulation came into effect on 1 January 2021 and complements other procedures established by EU legislation for the protection of the EU budget. It aims at protecting the EU budget against breaches of the principles of the rule of law that affect or seriously risk affecting its sound financial management or the protection of the financial interests of the EU. Since January 2021, the Commission has been assessing available information to identify possible breaches relevant under the regulation. Letters requesting information that would feed into the Commission’s assessment under the regulation were sent to two Member States, Hungary and Poland, in November 2021. In April 2022, the Commission sent a first notification to Hungary under the general regime of conditionality, triggering the procedure that may lead to the imposition of measures against a Member State for breaches of the principles of the rule of law. For further developments on the implementation of the conditionality regime, see Section 4.

18.Control results

All Commission departments apply the common control features described above independently from the source of funding. Measures to prevent, detect and correct irregularities are applied on a multiannual basis at the level of specific programmes or other expenditure segments. As individual spending programmes may be very diverse, control strategies need to be adapted to different management modes, policy areas, beneficiaries and/or funding methods and their associated risks.

The Commission aims to strike the right balance between a low level of error, fast payments and reasonable control costs.

This differentiation of the control strategies is needed to ensure that the controls remain cost-effective, i.e. that they strike the right balance between ensuring a low level of error (effectiveness), fast payments (efficiency) and reasonable costs (economy). Riskier areas will trigger a higher level of scrutiny and/or frequency of controls, whereas low-risk areas should lead to less-intensive, less-costly and less-burdensome controls. In addition, the actual recovery potential of unduly spent EU funds will be considered when setting up the control strategy (e.g. through the cost–benefit analysis of on-site audits).

Other ways to ensure the cost-effectiveness of controls include reducing the risk of errors through simplified rules and/or processes (such as simplified cost options, i.e. lump sums, flat rates and unit costs), cross-reliance on existing assessments and/or audits and controls performed by other entities and achieving economies of scale by pooling the control functions.

In order to measure the cost-effectiveness of its controls, the Commission uses the following indicators.

·
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Effectiveness. The level of error found based on the controls carried out, which allows the expenditure to be grouped into different risk categories.

·Efficiency. The average time taken to make a payment. Beyond this, the Commission is also constantly looking for and developing new ways to increase efficiency, notably by creating synergies wherever possible.

·Economy. The proportionality between the costs of controls and the funds managed.

  

19.The Commission’s control results confirm that the EU budget is well protected

Based on the audits and controls carried out, each year the Commission departments estimate the level of risk to the legality and regularity of EU spending at two stages of the multiannual control cycle: at payment and at the closure of the programmes.

Overall results for 2021

Risk at payment: 1.9%.

Risk at closure: 0.8%.

Corrections for past payments: EUR 5.6 billion.

Reservations: 16, with a total financial impact of EUR 987 million.

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The risk at payment is an estimate of the errors that could not be prevented despite ex ante controls and that affect the payments made. These errors are detected through ex post controls and audits. The risk at closure is an estimate of the errors that will remain at the end of the programmes’ life cycle once all ex post controls and corrections have been made. It is equal to the risk at payment minus a conservative estimate of the future corrections, which will take place between the reporting year and the end of the programmes’ life cycle.

The Commission considers that the budget is effectively protected when, by the closure of the programmes at the latest – i.e. when all controls, corrections, recoveries, etc. have been implemented – the risk at closure is below 2%. This is the materiality threshold also used by the European Court of Auditors. For more details on these concepts and the methodology used to determine these estimates, along with the control results for each policy area, see Annex 5.

For 2021, the Commission’s overall risk at payment and risk at closure remain in line with 2020, with both being below the materiality threshold of 2%.

The situation for each policy area is described below.

2021 was a transition year, with the official launch of the new programmes for the 2021-2027 period while the pre-existing programmes were still ongoing.

The Annual Management and Performance Report for the EU Budget being a summary of the 51 annual activity reports, each of them is allocated in its entirety to one of the seven multiannual financial framework headings (which were six ‘policy areas’ in the previous editions of the annual management and performance report). For the Directorate-General for Defence Industry and Space, considering the importance of this department under the ‘Security and defence’ heading, the relevant expenditure for defence and security has been isolated from the other expenditure of this directorate and brought under the relevant heading. For comparison purposes, the risk at payment and risk at closure for each heading for previous years have been recalculated on the basis of this new structure.

20.Presentation of the lower-, medium- and higher-risk expenditure

The Commission identifies which programmes are higher risk, allowing it to focus its action where it matters most. Given its in-depth empirical approach, the Commission has reliable data showing the diversified situation of managed funds (see chart below). Based on the risk at payment – before any future correction is implemented – the Commission can divide the annual expenditure precisely into lower risk at payment (where the risk is below 1.9%), medium risk at payment (between 1.9% and 2.5%) and higher risk at payment (above 2.5%). For natural resources and cohesion, this analysis is also applied at the level of individual paying agencies and operational programmes in the Member States. This allows the Commission to identify which programmes/segments of expenditure are higher risk and to efficiently provide its support and address specific weaknesses even for policies that, taken globally, are lower risk, such as the common agricultural policy.

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The European Commission categorisation of expenditure into higher-; medium- and lower-risk segments, as percentages of the total of relevant expenditure for 2021.

Source: European Commission.

The Commission’s expenditure are thus divided into lower-, medium- and higher-risk categories as follows.

·Lower risk. This segment amounted to EUR 95 billion in 2021 (55% of expenditure, similar to last year at 56%). This includes the expenditure of some paying agencies for the common agricultural policy, along with the operational programmes for the European Maritime and Fisheries Fund and cohesion with a lower risk at payment; expenditure relating to the Connecting Europe Facility, the Marie Skłodowska-Curie actions; European Research Council grants; contributions to agencies (the European Space Agency, the European Union Agency for the Space Programme, etc.); Erasmus+; the Emergency Support Instrument; the Asylum, Migration and Integration Fund; the Internal Security Fund; humanitarian aid; development aid delivered through international organisations and administrative expenditure.

·Medium risk. This amounted to EUR 39 billion in 2021 (23% of expenditure compared to 16% in 2020). This includes the expenditure of some paying agencies for the common agricultural policy and the operational programmes for the European Maritime and Fisheries Fund and cohesion with a medium risk at payment; grants in programmes in development aid and neighbourhood programmes; and expenditure under Horizon 2020. For the latter, this is an improvement compared to previous years, where this expenditure was higher risk, and these positive results will need to be confirmed in the years to come.

·Higher risk. This amounted to EUR 38 billion in 2021 (22% of expenditure compared to 28% in 2020). This includes the expenditure of some paying agencies for the common agricultural policy ; the operational programmes for the European Maritime and Fisheries Fund and cohesion with a higher risk at payment or with serious deficiencies (
[40](#footnote41)
); and expenditure related to complex grants in other funding programmes (for instance the Connecting Europe Facility – Energy).

From the Commission’s detailed analysis, it appears that the level of error is closely related to the nature of the funding. A majority of programmes or segments of expenditure, corresponding to more than 50% of the year’s relevant expenditure, have fairly lower risk at payment because they encompass straightforward entitlement-based payments. On the other hand, some programmes or segments of expenditure where rather complex reimbursement-based schemes are used, appear with relatively higher risk at payment. Nevertheless, the control systems in place allow the risks related to some of the more complex programmes to be mitigated and, as a result, to reduce the level of risk at payment.

The Commission is closely monitoring the risk at payment and risk at closure for the different programmes and is taking further action to reduce error rates. For the medium- and higher-risk categories in particular, the Commission will continue to work towards a further decrease in the error rates by raising beneficiaries’ and implementing partners’ awareness of issues, adjusting the control strategies where necessary, applying the lessons learned to future programmes and simplifying rules wherever possible.

21.Control results by policy area

Heading 1 – Single market, innovation and digital

For ‘Single market, innovation and digital’, both the risk at payment (1.3%) and the risk at closure (1.0%) are well below 2% and are decreasing compared to 2020, at 1.7% and 1.3% respectively. In 2021, the Commission’s preventive and corrective measures amounted to EUR 162 million – EUR 142 million preventive and EUR 20 million corrective, in line with the amounts in 2020, which were EUR 146 million and EUR 26 million respectively.

The decrease in the risk at payment and at closure compared to 2020 and 2019 is due to the decrease in the error rates for Horizon 2020. Horizon 2020 represents 44% of the expenditure within this policy area, and consequently its risk at payment (2.3%) contributes substantially to the related overall risk at payment. For several years, the research departments have been taking action to bring the risk at closure as close as possible to or below 2% (
[41](#footnote42)
). For the first time, the objective has been reached.

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Simplifications introduced in Horizon 2020, along with focused communication campaigns aimed at more ‘error-prone’ types of beneficiaries such as small and medium-sized enterprises and newcomers, as well as enhanced training of external audit firms performing audits on behalf of the Commission, certainly have a positive effect on the occurrence and financial importance of errors. The positive results for 2021 will need to be confirmed in the years to come, however, and the action taken so far will need to be continued.

In 2021, Horizon Europe, the new European framework programme for research and innovation, was officially launched, while Horizon 2020 is still ongoing. The late adoption of the Horizon Europe regulation, compared to the initial plan, delayed the start of the implementation of the programme. In terms of financial management, the Commission’s aim for Horizon Europe is to expand the use of simplified cost options, enabling beneficiaries to comply with the rules more easily and dedicate more focus to their actual research project. Together with continued communication campaigns targeted at stakeholders, this should pave the way for a significant reduction in the risk at payment for Horizon Europe. Taking into account the low level of the current relevant expenditure and the nature of the associated transactions, expenditure under Horizon Europe is considered to be low risk for 2021.

Regarding the other programmes, specific segments of the Connecting Europe Facility (covering energy and telecommunications) have been subject to reservations by the European Climate, Infrastructure and Environment Executive Agency and the new European Health and Digital Executive Agency (
[42](#footnote43)
), in view of residual error rates of 2.52% and 3.84%, respectively. In this policy area, a small number of other programmes (
[43](#footnote44)
) have a residual error rate above 2%; however, this has no impact on the assurance due to the minor financial impact (
[44](#footnote45)
), and no reservations have been issued. Finally, the 2020 reservation for the grants under the EU programme for the competitiveness of enterprises and small and medium-sized enterprises implemented by the European Innovation Council and SMEs Executive Agency has been lifted. Other programmes (
[45](#footnote46)
) have inherently lower risks because of the type of funding and the level of auditing carried out.

Heading 2 – Cohesion, resilience and values

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For the new heading of ‘Cohesion, resilience and values’, the risk at payment of 2.3% remains stable compared to 2020. Under this heading, the risk at payment and risk at closure are mostly related to the level observed for cohesion policy funds (
[46](#footnote47)
), given the volume of relevant expenditure (around 94% of the total). Member States implemented financial corrections for an amount of EUR 3 763 million (
[47](#footnote48)
). This includes preventive and corrective measures resulting on the one hand from the work of the managing and audit authorities and on the other hand from the work of the Commission and the European Court of Auditors. The Commission implemented preventive and corrective measures for a total amount of EUR 118 million, including EUR 84 million net financial corrections.

For cohesion policy funds, despite continuous efforts and improvements in the functioning of the control systems, the risk at payment remains material. It is estimated to be in the range of 1.8% to 2.5% (
[48](#footnote49)
) (
[49](#footnote50)
), similar to 2020 (1.9% to 2.4%). The estimated future corrections are also comparable to 2020 and, therefore, the risk at closure remains stable at 1.2%.

The European Regional Development Fund and the Cohesion Fund show a decrease in the risk at payment, from a range of 2.1% to 2.6% in 2020 to a range of 1.9% to 2.5% in 2021. This decrease is attributed to improvements in the management and control systems for a number of programmes.

The European Social Fund presents a similar range of risk at payment in 2021, at 1.7% to 2.5%, representing an increase from a range of 1.4% to 1.9% in 2020. This increase is due to the prudent approach followed by the Commission for a number of programmes for which the reported error rates were increased pending definitive information.

2021 was the first year of the new multiannual financial framework. However, the common provisions regulation for cohesion policy funds for 2021-2027 was adopted in June. As the Member States are now working on the preparation of their programmes and, for the most advanced, have just begun project selection, no payments other than pre-financing are expected for several years.

Despite the continuous efforts and improvements in the functioning of the control systems, the risk at payment for cohesion remains above the 2% materiality threshold. This is mainly due to the inherent complexity of the projects financed by these funds, the multiplicity of actors concerned and the difficulty to tackle some complex rules notably in relation to procurement or State aid.

The main categories of irregularities identified by the Member States’ audit authorities and the Commission are similar to those identified by the Court of Auditors: ineligible expenditure, public procurement errors, deficient audit trails and the absence of essential supporting documents. This shows that most audit authorities detect appropriately, but not always entirely, the various types of irregularities contributing to the risk at payment (
[50](#footnote51)
). There are inherent risks of error due to complex projects and rules. In most cases the weaknesses detected are however not systemic, and with the remedial action put in place the situation of the relevant system usually becomes satisfactory again within a year or maximum two. In addition, errors or weaknesses found in one programme do not mean that similar errors or weaknesses are present everywhere in the Member State concerned. Thanks to the Member States’ and the Commission’s control results, a nuanced and differentiated picture by programme and by authority is obtained. This allows the Commission to conclude that most programmes function well or sufficiently well (
[51](#footnote52)
), and that a limited number of programmes present systemic and recurrent deficiencies over several years, on which the Commission then focuses its actions. In the latter category of programmes, these are transparently reported in the reservations issued.

At the end of 2021, four reservations were issued in relation to cohesion policy funds.

·Two reservations relate to the 2014-2020 period and include all the programmes that, during the year, presented significant weaknesses in their management and control systems or for which the error rate was above the materiality threshold, or, less frequently, for which the audit work at the Member State level was deemed insufficient or unsatisfactory.

·Two reservations relate to the 2007-2013 period, in relation to which a few programmes still need to be closed. The reservations are not quantified because no payments were made in 2021.

The number of programmes under reservation for the 2014-2020 period (68) is similar to the number of programmes under reservation in 2020 (61). The financial impact has increased from EUR 341 million to EUR 423 million, which is in line with the increase in total payments. Reservations are only lifted once sufficient corrective measures have been taken. Usually, the reasons for the reservations are not structural, and it takes 1 to 2 years for a reservation to be lifted (
[52](#footnote53)
). For more details on reservations, see Volume III, Annex 5.

The Commission continues to take action to support programme authorities in improving their management and control systems and to bring the risk at closure for cohesion below 2%.

In 2021, the Commission, in close collaboration with the Member States, took various types of action to further improve the effectiveness of the management and control systems and to boost the prevention, detection and correction of errors, including the following.

·Continuous monitoring, analysis and addressing of the root causes of errors that remained undetected at the Member State level.

·Capacity-building action to improve the administrative capacity of the Member States’ managing and audit authorities and better equip them to deal with the most complex parts of fund implementation. This includes, for instance, the provision, free of charge, of the Arachne data-mining tool to help detect irregularities, fraud and possible conflicts of interest, along with the professionalisation of procurers.

·Providing online guidance, examples of good practice and explanations, and promoting peer-to-peer exchanges to support contracting and programme authorities.

·Promoting simplified cost options, which are less error prone, by providing assistance and support to national authorities to prepare and assess the simplified cost options schemes for 2021-2027 programmes. The Commission has worked relentlessly on designing and implementing appropriate processes to support these new features, including measures to enhance the uptake of simplified cost options and financing not linked to costs schemes, more proportionate control and audits, more compliance-based reporting and enhanced flexibility to adapt programmes to new socioeconomic and territorial contexts.

In relation to previous accounting years, after the finalisation of strict contradictory procedures, additional financial corrections have been implemented by the Member States. This has led to a risk at closure of under 2% for each of the past several accounting years, and confirms the corrective capacity for cohesion policy funds. This percentage will continue to drop until the closure of the programmes.

Heading 3 – Natural resources and environment

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For ‘Natural resources and environment’, the risk at payment remains below the materiality threshold of 2% and, at 1.8%, has decreased compared to 2020 (1.9%). The estimated future corrections have slightly increased to 1.5% of 2021 expenditure (1.4% in 2020), which leads to a risk at closure (
[53](#footnote54)
) estimated at 0.3% (0.5% in 2020). This also corresponds to the control results for expenditure for agriculture, which represents the bulk of the expenditure in this policy area (98%), the rest being dedicated to maritime and fisheries (
[54](#footnote55)
), environment and climate expenditure.

Both the Commission and the Member States continue to protect the EU’s financial interests. In 2021, the Commission executed financial corrections to the amount of EUR 631 million. Member States implemented corrections for a total amount of EUR 794 million, including EUR 528 million for errors detected and corrected on an ex ante basis and EUR 266 million for those recovered ex post.

For the common agricultural policy, the risk at payment continued the downward trend observed over the past several years. Direct payments under the European Agricultural Guarantee Fund, which account for almost 70% of payments, saw a progressive decline in the risk at payment from 1.8% in 2018 to 1.4% in 2021. Due to complex eligibility rules, the risk at payment remains above the materiality threshold for rural development and market measures. There too the risk at payment has further decreased, to 2.9% and 2.1% respectively, as a result of the continuous improvements to the management and control systems in the Member States, in which the Integrated Administration and Control Systems, including the Land Parcel Identification System, play a significant role also for the Rural Development Fund and animal-related measures.

Expenditure relating to fisheries and the environment and climate actions continue to be inherently low risk. The decrease in the risk at payment of the LIFE programme grants over the last several years is to be highlighted.

At the end of 2021, there were five reservations for segments of expenditure or programmes where control weaknesses and/or error rates above 2% had been identified.

·Three reservations for agriculture, on European Agricultural Guarantee Fund market measures (affecting six Member States), direct payments (affecting 14 paying agencies in seven Member States) and European Agricultural Fund for Rural Development measures (affecting 26 paying agencies in 17 Member States that (temporarily) experienced control weaknesses and/or high error rates).

·One new reservation for control weaknesses in one Member State in relation to the European Maritime and Fisheries Fund.

·One recurrent non-quantified reservation for the EU emissions trading system registry.

The reservation for control weaknesses in one Member State in relation to the European Maritime and Fisheries Fund, issued in 2020, was lifted in 2021 as the underlying issue had been resolved.

In all cases where the deficiencies identified have led to reservations, there are follow-ups: conformity clearance procedures to ultimately protect the EU budget, monitoring of the implementation of remedial actions taken by Member States and, where necessary, interruption or reduction/suspension of payments to the Member States. This systematic and precisely targeted approach ultimately enables the protection of the EU budget (for more details, see Volume III, Annex 5).

Heading 4 – Migration and border management

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For ‘Migration and border management’, both the risk at payment (1.9%) and the risk at closure (1.3%) have decreased slightly compared to 2020, remaining once again below 2%. In 2021, the preventive and corrective measures amounted to EUR 17 million – EUR 8 million preventive and EUR 9 million corrective.

This policy area consists of low-risk expenditure. Contributions to decentralised agencies and delegation agreements represented 40% of the relevant expenditure for 2021, with an error rate close to 0.5%, while shared management and the implementation of the Internal Security Fund and the Asylum, Migration and Integration Fund represent 44% of the relevant expenditure, with a risk at payment of 1.12%. For this segment, reservations are issued when, at the Member State level, the residual error rate is above 2% or serious deficiencies in management and control systems have been identified.

At the end of 2021, three reservations were issued.

·One reservation was issued for shared management in the 2014-2020 programming period concerning the Asylum, Migration and Integration Fund and the Internal Security Fund, quantified for one Member State.

·A second reservation was issued for the EU actions and emergency assistance grants, where the residual error rate reached 2.85%. Management action has been taken to address these weaknesses, and the implementation rules for the direct management of grants have been greatly simplified with the progressive departure from specific eligibility conditions at the programme level and alignment at the corporate level.

·In addition, the Directorate-General for Migration and Home Affairs has issued a reservation on reputational grounds relating to weaknesses identified in the effective implementation of the European Border and Coast Guard Agency’s new mandate. The responsibility for the corrective actions essentially lies with the agency. However, as a member of the Management Board, the Commission is actively involved in the monitoring of their implementation.

The non-quantifiable reservation relating to the shared management instruments under the 2007-2013 programming period has been lifted for 2021, since the implementation of corrective actions has been finalised for almost all Member States under reservation (for more details, see Volume III, Annex 5).

Heading 5 – Security and defence

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For ‘Security and defence’, the risk at payment and the risk at closure, which are both at 0.5%, are very low, and well below 2%. Since the types of payments for this activity are very low risk (mostly payments to agencies) there are no amounts for the preventive and corrective measures. This is in line with the level of error reported in 2020.

In 2021, most of the disbursements under this heading consisted of pre-financing payments, under the European Defence Industrial Development Programme, amounting to around EUR 200 million. These are not included in the relevant expenditure as they are advanced payments that are still under the Commission’s ownership. The relevant expenditure of EUR 13.8 million corresponds to the contribution to the European Defence Agency and procurements that have a low risk at payment, of 0.5%.

To achieve its objective, the Commission largely relies on entrusted entities and regulatory agencies, and on close cooperation with various partners and international organisations.

  

Heading 6 – Neighbourhood and the world

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In 2021, for ‘Neighbourhood and the world’, both the risk at payment (1.1%) and the risk at closure (0.9%) are similar to 2020, and are well below 2%. In 2021, the Commission’s preventive and corrective measures amounted to EUR 131 million – EUR 110 million preventive and EUR 21 million corrective, which is also similar to 2020 at EUR 110 million and EUR 16 million respectively.

Within this policy area, the programmes are implemented almost equally under direct and indirect management. Notwithstanding the complex environment in which these programmes are implemented, most of the expenditure segments, such as procurement under direct management and budget support, are low risk. This is due to the inherent risk profile of the operations and the performance of the related control systems.

Issues identified in previous years continued to affect a few segments, namely a lack of adequate supporting documents, errors in the calculation of costs claimed, non-budgeted costs claimed and non-compliance with procurement rules. The actions taken to address these weaknesses include simplifying and clarifying procedures and contractual conditions for grants, promoting the use of results-based financing and sharing information on frequently occurring errors with relevant control stakeholders.

One specific challenge for 2021 was the completion of additional ex ante checks on implementing partners’ management and control systems (
[55](#footnote56)
) – also called pillar assessments – by 31 December 2021. This has not always been the case. The pillar assessments of the main partners are expected to be completed within the first half of 2022, as the large majority of the final reports have been received and are currently under analysis to assess whether additional supervisory measures are needed. Although new contribution agreements cannot be concluded before the pillar assessments are finalised, and a few financial framework partnership agreements are still being negotiated, mitigating measures were put in place to minimise the impact on the implementation of indirect management interventions. Such measures include a substantial increase in contact with the entities (mostly United Nations agencies) to accelerate the process, with the result that, as of March 2022, all pillar assessments with major partners have been finalised or are at an advanced stage. In addition, specific conditions (supervisory measures) for signing contracts with these entities in duly justified and exceptional cases have been set out to ensure compliance with the Commission rules. The implementation of ongoing contracts continued as normal, and amendments were still possible.

Following the considerable efforts made in 2021 and in previous years to address the causes of errors, the Directorate-General for Neighbourhood and Enlargement Negotiations lifted its reservation relating to grants under direct management at the end of 2021. These efforts are continuing to have a positive impact in 2022. In particular, DG Neighbourhood and Enlargement Negotiations has enhanced the analysis and increased awareness of the types of errors. A guidebook on additional measures to reduce the errors on grants was prepared, with recommendations such as requesting supporting documents on a sample basis during the implementation period of grant contracts or performing reinforced controls (e.g. increased monitoring and/or on-the-spot checks) on actions/contracts or beneficiaries. A detailed analysis of the types of errors was sent to all authorising officers by sub-delegation who were asked to monitor and enhance the controls on the implementation of grants. Other remedial actions included information sessions with (new) grantees to explain their contractual obligations and provide clear information on the most frequent sources of errors in grant management.

DG Neighbourhood and Enlargement Negotiations maintained its reservation concerning projects in Libya and Syria. In these countries, the delegations cannot implement standard monitoring and evaluation activities due to the impossibility of sending staff to conduct on-site project visits or other similar verifications due to security and political constraints. Several measures have been put in place, such as remote monitoring, contracts with independent experts to monitor projects in the field, a risk-based review of the contract portfolio and cross-checking of information from different sources. This has improved the understanding of local dynamics and has allowed quicker and better reactions to address a very unstable and erratic environment. However, the countries both remain active conflict zones and the main elements justifying the reservation are still valid.

Heading 7 – European public administration

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Finally, the heading ‘European public administration’ groups together the services and departments managing the Commission’s administrative expenditure under the direct management mode, such as the Office for the Administration and Payment of Individual Entitlements, which represents more than 80% of the relevant expenditure under this heading. The risk at payment is prudently set at 0.5% for this low-risk type of expenditure. As most of the corresponding control systems involve predominantly ex ante controls, the estimated future corrections are often set at a conservative 0.0%. Thus, the risk at closure is equal to the risk at payment, and remains very low, at 0.5%. In 2021, the Commission’s preventive measures amounted to EUR 4 million , slightly below the amount in 2020 (EUR 6 million).

From the revenue side, following the loss of traditional own resources due to undervalued imports of textiles and footwear from China into the United Kingdom – which led to a reservation – the quantification process on the inaccuracy of the traditional own resources amounts transferred to the EU budget is ongoing. The European Court of Justice delivered its judgment on 8 March 2022, confirming the position of the Commission. While the Court endorsed the statistical approach developed by the Commission to quantify the losses, it requested a review of the actual amount claimed. The corresponding quantified reservation for the 2011-2017 period is therefore maintained. Additional inspections in all Member States confirmed further cases of undervaluation fraud for amounts that cannot yet be quantified but will be estimated in the course of 2022.

22.Efficiency measures put in place

The Commission is continuously striving to improve the efficiency of its operations in order to deliver on its objectives under tight budgetary constraints. Processes are being streamlined to ensure the most efficient use of limited resources.

The COVID-19 pandemic has accelerated the Commission’s digital transformation and the implementation of paperless workflows, resulting in efficiency gains.

In line with the EU digital strategy, the European Commission is moving towards a paperless administration

Across modern public administrations, the use of electronic signatures is becoming a norm. In this context, qualified electronic signatures are becoming widely used across the European Commission, as they are considered a highly efficient solution that allows users easily and securely to sign documents electronically. Qualified electronic signatures comply with the highest legal requirements, as defined by the electronic identification, authentication and trust services regulation, to ensure a document’s origin and integrity.

By the end of 2021, more than 2 500 users had obtained qualified electronic signatures by using EU Sign to sign documents digitally. Since the end of 2020, the service has offered digitised, streamlined enrolment processes so users can save time and have a better user experience. In addition, the roll-out of such signatures is ongoing and gaining more ground in EU delegations.

The mutualisation of processes is another source of efficiency gains. Further initiatives taken in 2021 in this sense included the extension by the Commission of its treasury services to a further seven agencies and the creation of the new joint audit directorate for cohesion encompassing all audit activities for cohesion expenditure.

In 2021, the Commission also continued to develop more efficient corporate information technology tools.

·The official launch of Microsoft 365 represents a key contribution to the Commission’s efficiency by providing a new set of corporate integrated collaborative solutions, which will enhance internal cooperation, individual productivity and broader internal and external communication opportunities.

·The new corporate financial information technology platform, SUMMA, started to gradually replace the ABAC system. The aim of the SUMMA project is to contribute to the modernisation and digitalisation of EU administration. It will standardise and simplify the treasury, financial and accounting processes of the Commission and 55 other EU institutions and entities, and will facilitate the decision-making process through integrated reporting and enhanced analytics capabilities. Three pilot agencies moved to SUMMA at the end of 2021, as scheduled.

·The Commission also made good progress in migrating new funding programmes to eGrants. Of the 39 EU funding programmes expected to use the new system in the 2021-2027 period, 33 had been fully migrated by the end of 2021.

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In 2021, 98% of payments (in terms of amounts) were made within the legal payment deadline (see graph), despite the fact that the working environment was still strongly impacted by the COVID-19 pandemic, and thanks to the abovementioned initiatives. This is of paramount importance, as many beneficiaries rely on these payments to carry out their activities and projects, which, in turn, contribute to the Commission’s objectives.

23.The cost of controls is commensurate with the risks

In 2021, following the combined assessment of their effectiveness, efficiency and economy, all Commission departments concluded that, overall, their controls were cost-effective.

The resources allocated to controls are aligned with the risks relating to the nature of the programmes and/or the context in which they are implemented. The cost of controls remains generally stable over time. However, some departments reported a slight increase in relative terms, which is not due to higher control costs per se, but rather to a reduced volume of payments in 2021. This can be explained by the continuation of the COVID-19 crisis and/or by delays in the adoption of new programmes. The variety of spending programmes and their different features do not allow for a meaningful comparison of their control costs. However, some common cost drivers can be identified, as shown in the box below.

Examples of common cost drivers

·The intrinsic complexity of the programmes managed. Grants based on the reimbursement of real costs imply labour-intensive controls as opposed to financing based on lump sums or simplified cost options.

·The complexity of the environment in which the programmes are implemented. The cost of controls is likely to be higher in the case of a multi-site organisational structure or when partners and/or beneficiaries are located outside the EU’s jurisdiction.

·The volumes and amounts to be processed. A high number of low-value payments will generate higher control costs than recurrent mass payments, while the regulatory framework requires certain incompressible controls. This results in diseconomies of scale.

·The type of management. Under indirect and shared management, the cost of controls is shared between the Commission and its implementing partners, while for direct management the burden is entirely borne by the Commission.

For the sake of transparency and completeness, in their annual activity reports, those departments dealing with shared and/or indirect management have also reported on the cost of controls in Member States and entrusted entities separately from the Commission’s own cost of controls.

24.Management assurance

25.Assessments, assurance and reservations declared by authorising officers

In their 2021 declarations of assurance (
[56](#footnote57)
), all 51 authorising officers by delegation (
[57](#footnote58)
) declared they had reasonable assurance that (1) the information contained in their reports presents a ‘true and fair view’ (i.e. reliable, complete and correct) of the state of affairs in their departments; (2) the resources assigned to their activities were used for their intended purpose and in accordance with the principle of sound financial management; and (3) the control procedures put in place give the necessary guarantees concerning the legality and regularity of the underlying transactions, taking into account the multiannual character of some programmes and the nature of the payments concerned.

Within the context of their overall assurance-building processes and from their management perspectives, the authorising officers also perform a more detailed analysis for each programme or segment of their portfolio. They use all available information, especially the results of their controls, to spot any potential significant weakness in quantitative or qualitative terms. At the end of each financial year, they determine whether the financial impact of such a weakness is likely to be above the materiality threshold of 2% and/or whether the reputational impact is significant. If so, they qualify their declaration of assurance with a reservation for the specific portfolio segment affected.

For 2021, 10 authorising officers issued a qualified declaration, resulting in a total of 16 reservations (this is slightly fewer than in 2020, when 19 reservations were reported by 11 departments) as follows.

·A total of 13 reservations have been maintained from previous years, 12 of which relate to the spending programmes, with the other relating to the revenue side of the EU budget. These reservations have been maintained mainly because the root causes of the material level of error can be partially mitigated but not fully eradicated under the current programmes’ legal frameworks.

·Three reservations are new in 2021. They are due to a material level of error, or serious weaknesses found in the control systems of the implementing partners (Member States or agencies).

·Four reservations that were present in 2020 were lifted in 2021 because the underlying issues had been resolved.

·Sixteen reservations were lifted (two) or not issued by virtue of the de minimis rule (14), whereby reservations are not considered meaningful where limited expenditure is involved (less than 5% of the payments of the directorate-general or service) and the resulting financial impact is low (less than EUR 5 million). The total financial impact of these cases, EUR 4.8 million, is very limited.

The total financial impact of all reservations is EUR 987 million for 2021, i.e. 19% lower than the EUR 1 219 million in 2020. This decrease is related to the decrease in the error rates found in agriculture. For each reservation, mitigating actions are put in place to address the underlying weaknesses and mitigate the resulting risks (for details, see Section 2.2.2).

Annex 5 in Volume III provides a complete list of the reservations for 2021, along with further explanations and details.

26.Work of the Internal Audit Service and overall opinion

The Commission directorates-general and services also base their assurance on the work done by the Internal Audit Service. The Internal Audit Service audits the management and control systems within the Commission and the executive agencies, providing independent and objective assurance on their adequacy and effectiveness. As required by its mission charter (
[58](#footnote59)
), the Internal Audit Service issued an annual overall opinion on the Commission’s financial management, based on the audit work it had carried out in the area of financial management in the Commission covering the previous 3 years (2019-2021). The overall opinion also takes into account information from other sources, namely the reports from the European Court of Auditors.

Based on this audit information, the internal auditor considered that, in 2021, the Commission had put in place governance, risk management and internal control procedures that, taken as a whole, are adequate to give reasonable assurance on the achievement of its financial objectives. However, the overall opinion is qualified with regard to the reservations the authorising officers by delegation made in their declarations of assurance, issued in their respective annual activity reports. As regards the overall opinion, the internal auditor also considered the combined impact of all amounts estimated to be at risk at payment as these go beyond the amounts put under reservation. Given these elements, the Internal Audit Service considers that the EU budget is adequately protected in total and over time.

Without further qualifying the opinion, the internal auditor added three ‘emphases of matter’, which are described in Annex 6 to this report, regarding:

·the implementation of the EU budget in the context of the crisis related to the COVID-19 pandemic;

·supervision strategies regarding third parties implementing policies and programmes;

·reporting on the corrective capacity of the multiannual control systems.

With a view to contributing to the Commission’s performance-based culture and greater focus on value for money, the Internal Audit Service also carried out performance audits in 2021 as part of its strategic audit plan. The resulting recommendations, all but one (
[59](#footnote60)
) accepted by the auditees, concern the preparedness for the implementation of the 2021-2027 multiannual financial framework, supervision strategies for the implementation of programmes by third parties, internal control systems in relation to legality and regularity and compliance, EU law implementation and information technology security. For all recommendations, the auditees drafted action plans, which were submitted to and assessed as satisfactory by the Internal Audit Service. Finally, the Internal Audit Service pursued its strict follow-up policy and assessed the actual implementation of its recommendations by the Commission’s departments on a regular basis. The audit work confirmed that 94% of the recommendations issued between 2017 and 2021 and followed up by the Internal Audit Service were adequately and effectively implemented by the auditees. This result indicates that the Commission services are diligent in implementing the recommendations and mitigating the risks identified by the Internal Audit Service. Annex 6 includes more information on the assurance provided by the Internal Audit Service. In addition, a report on the internal auditor’s work is forwarded by the Commission to the discharge authority in accordance with Article 118(8) of the financial regulation, as part of the integrated financial and accountability reporting package.

27.Assurance obtained through the work of the Audit Progress Committee

The Audit Progress Committee oversees audit matters within the Commission and reports annually to the College of Commissioners. It ensures the independence of the Internal Audit Service, monitors the quality of internal audit work and ensures that internal and external (i.e. from the European Court of Auditors) audit recommendations are properly taken into account by the Commission directorates-general and services and that they receive appropriate follow-up.

During the 2021 reporting year, which was marked by the continuation of the COVID-19 pandemic, and following Russia’s unjustified and unprovoked invasion of Ukraine at the beginning of 2022, the committee continued to play an important role in enhancing governance, organisational performance and accountability across the entire organisation. It held four rounds of meetings, focusing on the key objectives set out in the 2021 and 2022 work programmes. It also continued to monitor the COVID-19 situation in connection with its areas of responsibility, in order to obtain further reassurance about the effective mitigation and appropriate audit coverage of high risks relating to COVID-19 response and recovery measures.

The committee followed up on the European Court of Auditors’ request to be more systematically involved in its work. It invited the Director of the Presidency of the Court of Auditors to two of its preparatory group meetings to present the external auditor’s multiannual strategy and annual work programmes for 2021 and 2022. The committee held a planned thematic discussion on information technology security, which took place shortly after the outbreak of the Russian war of aggression in Ukraine and was especially timely in view of the expected increase in the number of cyber threats.

The committee was satisfied with the independence and quality of the internal audit work. It welcomed the positive result of the external quality assessment of the Internal Audit Service for 2017-2021, which is an important factor relating to assurance about the quality of the internal audit work. The committee was also satisfied that the internal auditor’s planning adequately covers the audit universe and continues to cover the key risk areas. The effective implementation rate of the internal auditor’s recommendations remained very high (i.e. covering 94% of recommendations issued and followed up on during the 2017-2021 period), and only eight very important audit recommendations were overdue by more than 6 months as of January 2022. The committee also continued to monitor the progress in implementing the Court of Auditors’ recommendations, and was satisfied when, for the 14th time in a row, the Court gave a clean opinion on the reliability of the EU’s consolidated accounts.

Annex 8 in Volume III includes more information on the work and conclusions of the committee.

28.The opinions of the European Court of Auditors on the 2020 accounts and on the legality and regularity of transactions

The European Court of Auditors’ Annual report on the implementation of the EU budget for the 2020 financial year, published in October 2021, once again gave a clean opinion on the EU accounts, for the 14th year in a row.

While revenue also continues to be free from material error, the Court of Auditors maintained an adverse opinion on the legality and regularity of 2020 expenditure. The overall level of error for the EU budget (2.7%) estimated by the Court remained at the same level as for 2019 expenditure, comparable to the years 2017 and 2018 (respectively 2.4% and 2.6%) and significantly lower than in 2016 and before.

The Court’s adverse opinion is mainly explained by the share of what it considers to be high-risk expenditure. High-risk expenditure, which is often subject to complex rules and is mainly based on reimbursement of costs, covers in particular cohesion, research expenditure, rural development, market measures under the European Agricultural Guarantee Fund and some parts of external actions. High-risk expenditure represented 59% of the audited population for 2020, which is logical with the acceleration in cohesion payments at this stage of the 2014-2020 multiannual financial framework cycle.

As regards the two biggest areas of EU expenditure, the Court’s estimated level of error remained close to the level of materiality in the case of natural resources (
[60](#footnote61)
), accounting for 40.8% of the audited population. In the case of cohesion policy, accounting for 32.8% of the audited population, the Court’s estimated level of error decreased from 4.4% in 2019 to 3.5% for 2020. Administrative expenditure remained free from material error.

The Commission follows up on the Court’s recommendations, stemming both from the annual reports and from special reports. It reports on the measures taken in the annual activity reports. Moreover, it reports on a regular basis on the implementation of the Court’s recommendations to the Commission’s Audit Progress Committee. The latter performs certain monitoring activities in this respect under its updated mandate (
[61](#footnote62)
).

The European Court of Auditors also monitors the Commission’s implementation of its recommendations and provides feedback, helping the Commission to enhance its follow-up activities. In the Report of the European Court of Auditors on the performance of the EU budget – Status at the end of 2020, the Court reviewed the extent to which the Commission had pursued the implementation of 149 audit recommendations addressed to it in 18 special reports published in 2016. The Court noted that the Commission had implemented close to 80% of the recommendations either fully (67%) or in most respects (12%), and another 9% in some respects. Of the 16 recommendations the Court considered not to have been implemented, the Commission had initially not accepted 11. These results are in line with previous years.

29.Discharge of the budget for 2020

The European Parliament granted discharge to the Commission for the 2020 financial year by a clear majority on 4 May 2022, after having examined the reports of the European Court of Auditors, the Commission’s integrated financial and accountability reporting package and the Council’s discharge recommendation. The European Parliament’s Committee on Budgetary Control also invited selected commissioners and directors-general for exchanges of views during the discharge procedure. During the procedure, the key stakeholders – the European Parliament, the Council of the European Union and the European Court of Auditors – focused on how to improve the results delivered by the EU budget and how to further reduce the level of error. The debate also touched upon issues such as the rule of law and fundamental rights, smoother implementation and absorption of EU funds, information on beneficiaries of EU funds, including by making greater use of interoperable information systems, and traditional own resources. This year, the discharge authority was especially interested in seeking reassurance that the EU budget remained well protected during the pandemic. As usual, the Commission is taking appropriate action to implement these recommendations and report on the follow-up in a dedicated report.

30.Further developments: outlook for 2022 and beyond

31.Additional tools to protect the EU budget

32.Revision of the financial regulation

After a major revision in 2018, the Commission has proposed a targeted amendment of the financial regulation (
[62](#footnote63)
). Given that the changes brought about by the 2018 revision need time to produce their full effect, this revision will focus on alignment with the new long-term budget, certain improvements on crisis management following lessons learned during the COVID-19 crisis and enhanced protection of the EU’s financial interests.

33.Use of the single data-mining and risk-scoring tool

Under the new multiannual financial framework, along with the Resilience and Recovery Facility and the Brexit Adjustment Reserve, the Commission committed to make a single data-mining and risk-scoring tool available to Member States to improve their management and control systems, with a view to its generalised application by Member States. The Commission is adapting the tool put at the disposal of Member States under the previous multiannual financial framework (Arachne) to take into account the new multiannual financial framework period and related requirements, along with the Resilience and Recovery Facility. The Commission will continue to offer support to Member States to allow for its effective use. This includes giving presentations, training sessions and workshops and providing technical support and advice to interested authorities, including on how to integrate the risk-scoring tool in their daily processes. In the ongoing revision of the financial regulation, the Commission proposed to reinforce the use of this single data-mining and risk-scoring tool.

34.Implementing the conditionality regulation

On 16 February 2022, the Court of Justice upheld the validity of Regulation (EU, Euratom) 2020/2092 on a general regime of conditionality for the protection of the EU budget, which had been contested by two Member States, Hungary and Poland.

In March 2022, the Commission adopted guidelines on the application of the regulation. Following the work carried out throughout 2021, in April the Commission sent a first notification to Hungary under the general regime of conditionality. This triggered a procedure that may lead to the imposition of measures against a Member State for breaches of the principles of the rule of law that affect or seriously risk affecting the EU’s financial interests in a sufficiently direct way. The Commission constantly monitors the situation across Member States. It will trigger the procedure under the conditionality regulation if the conditions are fulfilled.

Annex 3 – 
  
The Recovery and Resilience Facility: a new performance-based instrument at the service of EU recovery

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_02004.jpg)

An innovative, performance-based instrument to help emerge stronger from the COVID-19 crisis

The Recovery and Resilience Facility is a new performance-based instrument at the service of the EU recovery. The facility is designed to mitigate the economic and social impact of the COVID-19 pandemic and make European economies and societies more sustainable, more resilient and better prepared for the challenges and opportunities of the green and digital transitions. Proposed in May 2020 by the Commission, and in place since early 2021 (
[63](#footnote64)
), it makes available EUR 723.8 billion (in current prices) – EUR 385.8 billion in loans and EUR 338 billion in grants – for that purpose. It supports Member States in implementing ambitious reforms and investments that are in line with the EU’s priorities and that address the challenges identified in country-specific recommendations under the European semester framework of economic and social policy coordination.

The Recovery and Resilience Facility is a unique, demand-driven, performance-based instrument.

·Member States are the beneficiaries of the facility. They receive support from it to implement their national recovery and resilience plans. The funds, once disbursed, therefore enter the national budget.

·Funds are disbursed upon the achievement of predefined milestones and targets measuring the implementation, by 2026, of reforms and investments designed to respond to the challenges faced by Member States.

·Financed by the European recovery instrument NextGenerationEU, the facility is an exceptional and  temporary instrument.

·It is financed through funds raised on the capital markets by the Commission on behalf of the European Union.

In order to receive support from the Recovery and Resilience Facility, by the end of 2021, 26 (
[64](#footnote65)
) EU Member States submitted national recovery and resilience plans to the Commission. The plans must pass 11 assessment criteria established by the regulation, including that no measure included in the plan can do significant harm to environmental objectives (the ‘do no significant harm’ principle) and that at least 37% of the plan’s total allocation contributes to climate objectives and at least 20% to digital objectives.

The reforms and investments included in these plans should contribute to the six policy pillars defining the scope of the facility, while taking into account the specific situation and challenges of the relevant Member State.

The share of funding contributing to each pillar is presented in the graph below.

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_02059.jpg)

Contribution of Recovery and Resilience Facility funds to the respective policy pillars. The green parts of the columns represent those measures that have been assigned to the policy pillar as primary policy areas, while the blue parts represent measures assigned as secondary policy areas. These assignments reflect the fact that reforms and investments can contribute to multiple policy pillars. Therefore, the total contribution to all pillars is double the estimated cost of the approved recovery and resilience plans.

Major progress has been made in setting up the Recovery and Resilience Facility and its implementation is firmly on its way

Twenty-two recovery and resilience plans were assessed positively by the Commission and adopted by the Council in 2021. In 2021, the Commission worked closely together with all Member States to help them prepare their national recovery and resilience plans, setting out a national agenda of reforms and investments to be implemented by 31 August 2026, in line with the requirements of the regulation. To support Member States in preparing their plans, the Commission established informal contacts as early as October 2020, and published updated guidance (
[65](#footnote66)
) in January 2021 on the information to be provided. By the end of December 2021, the Commission had officially received 26 (
[66](#footnote67)
) recovery and resilience plans and had put forward a positive assessment for 22 of them (
[67](#footnote68)
).

The Commission ensured an efficient process for all phases of the preparation, negotiation and assessment of plans. In addition to intense exchanges with each specific Member State, the Commission provided written guidance on the preparation of recovery and resilience plans, on the technical implementation of the ‘do no significant harm’ principle and on various specific issues, such as a checklist on control systems. The Commission supported Member States in putting forward ambitious plans with clear and realistic milestones and targets to monitor implementation, while taking into account the national context and the financial contribution available.

Overall, the assessment and eventual endorsement of the first 22 recovery and resilience plans in 2021 followed a smooth process. Following intense discussions between the Commission and the Member States during the preparation phase of the plans, the Commission assessed each plan in close coordination with the Member States, ensuring a consistent and transparent approach – explained through staff working documents published on each plan that has been positively assessed. By the end of 2021, the Commission had positively concluded its assessment of 22 plans (
[68](#footnote69)
), all of which have been endorsed by the Council through implementing decisions (
[69](#footnote70)
). These plans account for a total allocation of EUR 291 billion in non-repayable financing and EUR 154 billion in loans to Greece, Italy, Cyprus, Poland, Portugal, Romania and Slovenia. The plans include a total of 3 742 measures (around one third relating to reforms and two thirds relating to investments) and a total of 5 155 milestones and targets to be fulfilled by 2026. At the end of 2021, the Commission was assessing plans for Bulgaria, Hungary, Poland and Sweden.

Following the adoption of the plans, the Commission concluded a financing agreement (and, where relevant, a loan agreement) with the Member State concerned, which defines the rights and obligations of the parties, including with regard to the protection of the financial interests of the EU and the requirements for Member States’ control systems. The financing agreements also involve the amount of pre-financing to be paid immediately to the Member States and the conditions for submitting a payment request. In total, 22 financing agreements and four loan agreements were signed by the end of 2021.

Apart from the pre-financing, funding will be disbursed in several instalments, each of which depends on the achievement of a specific set of milestones and targets relating to the reforms and investments the Member States have committed to implement. The disbursement profile and specific milestones and targets to be achieved have been agreed in each case between the Commission and the relevant Member States, and have ultimately been endorsed by the Council. In 2021, the Commission disbursed EUR 54 billion in pre-financing payments to those Member States for which the plan had been positively assessed by the Commission and endorsed by the Council. One of the 22 Member States in this group did not request pre-financing, therefore 21 Member States have benefited from pre-financing. For these, the pre-financing helped ensure the fast implementation of the investment and reform measures outlined in the recovery and resilience plans. The pre-financing payments were all executed within 5 business days after the signing of the financing agreement (and/or loan agreements where relevant) between the Commission and the Member State, well ahead of the 2‑month payment deadline. A retroactivity clause, which ensured that measures taken since the start of the COVID-19 pandemic (i.e. starting from February 2020) were eligible to be included in the plans, provided further certainty and ensured that Member States were able to start implementation even before their plans were formally adopted.

The Recovery and Resilience Scoreboard (
[70](#footnote71)
), a public online platform set up by the Commission, displays in an easily accessible way EU Member States’ progress in implementing their recovery and resilience plans – as demonstrated by milestones and targets assessed by the Commission to be fulfilled – and the disbursements made. It also shows common indicators to report on progress and to evaluate the Recovery and Resilience Facility and the national plans.

As a performance-based facility, payments by the Commission to Member States, other than pre-financing, are based on the satisfactory fulfilment of the milestones and targets defined in the Council implementing decisions endorsing the recovery and resilience plans. The total amount of the financial contribution is to be paid in instalments to the Member State, corresponding to a set of milestones and targets as established in the annexes to these decisions. The verification mechanisms for each milestone and target and the methods for monitoring and covering the essential aspects of the implementation of the plans are described in the operational arrangements, which must be signed between the Commission and the Member State before the Member State can submit its first payment request. As of the end of 2021, five operational arrangements had been concluded, with Greece, Spain, France, Italy and Slovakia, and four Member States had submitted their first regular payment requests. In 2022, around 30 more requests are expected.

The Commission disbursed a first payment, of EUR 10 billion, to Spain before the end of 2021, after receiving the payment request in November 2021. Given the type and implementation time of the relevant milestones, and as Spain had shared most of the information required for the assessment prior to the official submission of the payment request, the Commission was able to process the payment request expeditiously.

The overall state of play of the implementation of the Recovery and Resilience Facility, as of 31 December 2021, is summarised below.

|  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | Plans approved | Financing agreements signed | Loan agreements signed | Operational agreements signed | Pre-financing disbursed | Payment requests received | First payment disbursed |
| Belgium | • | • |  |  | • |  |  |
| Czechia | • | • |  |  | • |  |  |
| Denmark | • | • |  |  | • |  |  |
| Germany | • | • |  |  | • |  |  |
| Estonia | • | • |  |  | • |  |  |
| Ireland | • | • |  |  |  |  |  |
| Greece | • | • | • | • | • | • |  |
| Spain | • | • |  | • | • | • | • |
| France | • | • |  | • | • | • |  |
| Croatia | • | • |  |  | • |  |  |
| Italy | • | • | • | • | • | • |  |
| Cyprus | • | • | • |  | • |  |  |
| Latvia | • | • |  |  | • |  |  |
| Lithuania | • | • |  |  | • |  |  |
| Luxemburg | • | • |  |  | • |  |  |
| Malta | • | • |  |  | • |  |  |
| Austria | • | • |  |  | • |  |  |
| Portugal | • | • | • |  | • |  |  |
| Romania | • | • |  |  | • |  |  |
| Slovenia | • | • |  |  | • |  |  |
| Slovakia | • | • |  | • | • |  |  |
| Finland | • | • |  |  |  |  |  |

Control systems are tailored to the performance-based nature of the Recovery and Resilience Facility

In 2021, in parallel to assessing the plans, the Commission worked on putting in place the relevant internal control processes and control strategies tailored to the fact that the facility is a performance-based instrument and that the Member States are the beneficiaries. In addition, the regulation stipulates that the Member States bear the responsibility for ensuring that the facility is implemented in compliance with EU and national rules and with the principles of sound financial management.

At the Member State level

The Member States are primarily responsible for ensuring that the funds received are implemented in compliance with relevant EU and national law, in particular regarding the prevention, detection and correction of fraud, corruption and conflicts of interest and avoiding double funding. Member States put in place appropriate control and monitoring frameworks at the national level to ensure the effective monitoring of the recovery and resilience plans and the collection of evidence on the achievement of milestones and targets, and ultimately to ensure the protection of the EU’s financial interests. This is further reflected in the financing and loan agreements.

Each Member State described the national control system for the implementation of the proposed measures as part of its national plan, and the Commission analysed the systems as set out in the plans as part of its assessment. If a control system was deemed insufficient, the plan could not be approved. Where the Commission assessed that the control systems were adequate overall but that further improvements were needed, it required that milestones on audits and controls be included in the Council implementing decisions. Such deficiencies in the Member States’ control systems included, for example: the repository system for collecting and storing data, as required by the Recovery and Resilience Facility regulation, not being fully in place at the time of the assessment; the absence of formal legal mandates for the various bodies in charge of implementing and auditing the funds; insufficient administrative capacity on the part of the implementing and audit bodies in charge of implementing the plan; and the lack of a clear audit strategy or anti-fraud measures. Payments to the Member States can only take place once these milestones have been achieved.

At the Commission level

The Commission is responsible for ensuring the legality and regularity of its payments to the Member States. Since the facility is a performance-based instrument, the legality and regularity of the payments depends on the actual achievement of the milestones and targets set out in the Council implementing decisions. Consequently, the Commission’s controls focus on achieving the milestones and targets, whereas the costs actually incurred by the beneficiary are not subject to controls by the Commission. According to the Recovery and Resilience Facility regulation, the Commission nonetheless has the right to correct serious irregularities, i.e. fraud, corruption and conflicts of interest that have not been corrected by the Member States themselves, along with double funding or serious breaches of the financing and loan agreements.

Overall, in order to build its assurance, the Commission relies on the Member States’ controls This implies obtaining the assurance that the control systems of the Member States are effective in preventing and detecting serious irregularities or breaches of obligation of the financing agreements. Also, where necessary, the Commission will complement the Member State controls with its own controls at three stages.

During its assessment of the Member States’ recovery and resilience plans, the Commission checked whether the control systems outlined by the Member States in the plans met the requirements set out in the regulation. This includes an explanation of how they will demonstrate to the Commission that the predefined milestones or targets have been satisfactorily fulfilled and how they will ensure that the related data are reliable, including the control mechanisms to ensure such reliability. Moreover, Member States had to describe the control system to be used to prevent, detect and correct fraud, corruption, conflicts of interest and double funding. Where the Commission considered that a Member State’s control system was adequate overall, but that small gaps remained that could be corrected, additional milestones and targets were introduced to ensure the gaps would be closed prior to the first regular disbursement.

During the implementation of the facility, once Member States submit their payment requests, the Commission assesses whether the milestones and targets have been satisfactorily achieved and all other conditions for disbursement have been met. In particular, Member States must accompany each payment request with:

·a management declaration confirming that the funds were used for their intended purpose, that the information provided is correct and that the control systems in place give the necessary assurance that the funds were used in accordance with applicable rules; and

·a summary of the audits carried out, including any weaknesses identified and corrective actions taken.

The Commission may ask for additional information and may decide to carry out additional controls in order to obtain the necessary complementary assurance on the achievement of the milestones and targets before making the payment. If one or more milestones or targets have not been satisfactorily fulfilled, payments may be proportionally suspended and, ultimately, reduced.

The Commission will also carry out system audits on the reliability of the systems in place to collect, aggregate and store reliable data relating to the milestones and targets. Additionally, at least once per Member State, it will carry out system audits of the measures implemented by the Member States to ensure the protection of the financial interest of the Union, more particularly the measures to prevent, detect and correct cases of fraud, corruption, conflicts of interest and double funding and to avoid serious breaches of the financing agreement. This also includes the functioning of the systems to collect and store data concerning Article 22(2)(d) of the Recovery and Resilience Facility regulation, i.e. concerning final recipients and their contractors, subcontractors and beneficial owners.

After disbursements are made to the Member States, the Commission may perform ex post controls and audits (
[71](#footnote72)
) to check the achievement of milestones and targets. The Commission may also carry out ad hoc audits in case of suspicion of serious irregularities. If necessary, the Commission will recover proportionate amounts or require early repayment of the loans. In the case of serious irregularities that have not already been recovered by the Member States themselves, the Commission will recover proportionate amounts from the Member States.

In addition, the operational arrangements provide for regular exchanges between the Commission and the Member States, with at least quarterly exchanges to take stock of progress on the implementation of the recovery and resilience plans.

The Commission will make a qualitative assessment of the control results and the level of risk associated with the operations. Unlike other EU programmes (see also Annex 5), this assessment will not be quantified with an error rate. Error rates reflect a quantitative assessment, which is pertinent when the expenditure can be directly attributed to a quantitative criterion (
[72](#footnote73)
). Payments in the context of the facility are based on a qualitative assessment of the fulfilment of milestones and targets, which is difficult to translate into quantitative terms. Even when milestones and targets have not been satisfactorily fulfilled, and a reduction will be made, this reduction cannot correspond to an amount of ineligible expenditure. In addition, the investments and reforms included in the recovery and resilience plans are very diverse, both within a Member State and between Member States, which prevents any statistical extrapolation. In this context, a meaningful error rate cannot be determined.

The Commission’s qualitative assessment will be based on a combination of the results from (1) the Member States’ audits, provided in the summary of audits that has to accompany each payment request; (2) the Commission’s audits; (3) the assessment of the payment requests; and (4) other checks carried out by the Commission at the Member State level in the context of other funding programmes such as cohesion policy funds.

The authorising officer by delegation for the facility confirmed that he had reasonable assurance

The Director-General for Economic and Financial Affairs has been designated the authorising officer by delegation for the facility. In January 2021, he created a new unit for control and evaluation to support the overall assurance. The audit strategy was approved in December 2021. The objective is to assess whether the national authorities have set up the required management and control systems for the implementation of their recovery and resilience plans so as to ensure the legality and regularity of the payment requests submitted to the Commission, that any cases of fraud, corruption, conflict of interest and double funding that are discovered are adequately corrected and, when necessary, that corrective measures are taken to address significant breaches of the financing agreement.

In 2021, most of the year was dedicated to preparatory work for the submission of the plans by the Member States and the assessment of the plans by the Commission. While most of the disbursements for 2021 consisted of pre-financing, there was a single payment of EUR 10 billion to Spain. This payment concerned the fulfilment of 52 milestones, mainly relating to reforms that had already been carried out by the second quarter of 2021. Based on the positive assessment of the evidence of the fulfilment of the milestones in the payment request, the authorising officer by delegation had reasonable assurance of the legality and regularity of the payment made in 2021 under the Recovery and Resilience Facility.

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_02063.jpg)

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_02064.jpg)

:   [(1)](#footnoteref2)
    ()
       
    <https://ec.europa.eu/info/sites/default/files/political-guidelines-next-commission_en_0.pdf>
:   [(2)](#footnoteref3)
    ()
       EUR 807 billion in current prices, EUR 750 billion in 2018 prices.
:   [(3)](#footnoteref4)
    ()
       REACT-EU is divided into two tranches: the majority is available for programming in 2021 (EUR 39.6 billion), and the rest in 2022 (EUR 10.8 billion).
:   [(4)](#footnoteref5)
    ()
       As per 13 May 2022, full vaccination of adult population reached 62.4%.
:   [(5)](#footnoteref6)
    ()
       Other initiatives financed through the Emergency Support Instrument are mentioned here: 
    <https://ec.europa.eu/info/live-work-travel-eu/coronavirus-response/emergency-support-instrument_en>
    .
:   [(6)](#footnoteref7)
    ()
       This consists of grants (EUR 338 billion) and loans (EUR 386 billion), with amounts in current prices.
:   [(7)](#footnoteref8)
    ()
       Six Member States requested loans (Greece, Italy, Cyprus, Portugal, Romania and Slovenia).
:   [(8)](#footnoteref9)
    ()
       This is an update of the figure provided in the 2020 annual management and performance report, reflecting newly available information on the destination of EU funds spent under shared management and for technical corrections (including the counting of co-financing in the European Social Fund, as identified by the European Court of Auditors in its latest special report on the climate).
:   [(9)](#footnoteref10)
    ()
       
    [European Pillar of Social Rights action plan](https://ec.europa.eu/info/strategy/priorities-2019-2024/economy-works-people/jobs-growth-and-investment/european-pillar-social-rights/european-pillar-social-rights-action-plan_en)
    <.>
:   [(10)](#footnoteref11)
    ()
       As of 2021, no payments for the Just Transition Fund have been done.
:   [(11)](#footnoteref12)
    ()
       Commission communication – ‘Fit for 55’: delivering the EU’s 2030 climate target on the way to climate neutrality (
    [COM(2021) 550 final](https://ec.europa.eu/info/sites/default/files/chapeau_communication.pdf)
    ).
:   [(12)](#footnoteref13)
    ()
       BELLA stands for ‘building the Europe link to Latin America’ and provides support for the long-term interconnectivity of European and Latin American research and education communities, significantly improving the collaboration between researchers and academics across the two regions.
:   [(13)](#footnoteref14)
    ()
       European Geostationary Navigation Overlay Service
:   [(14)](#footnoteref15)
    ()
       
    [European Pillar of Social Rights Action Plan](https://ec.europa.eu/info/strategy/priorities-2019-2024/economy-works-people/jobs-growth-and-investment/european-pillar-social-rights/european-pillar-social-rights-action-plan_en)
    <.>
:   [(15)](#footnoteref16)
    ()
       See 
    [European Economic Forecast – Winter 2022](https://ec.europa.eu/info/sites/default/files/economy-finance/ip169_en.pdf)
    .
:   [(16)](#footnoteref17)
    ()
       In the Spring 2022 economic forecast, the real growth of gross domestic product in both the EU and the euro area is now expected at 2.7% in 2022 and 2.3% in 2023, down from 4.0% and 2.8% (2.7% in the euro area), respectively, in the 
    [Winter 2022 interim forecast](https://ec.europa.eu/info/system/files/economy-finance/ip173_en.pdf)
    .
:   [(17)](#footnoteref18)
    ()
       Latest known data, as for European Social fund and Youth Employment Initiative.
:   [(18)](#footnoteref19)
    ()
       EUR 350 billion under the 2014-2020 long-term budget and EUR 392 billion under the 2021-2027 long-term budget.
:   [(19)](#footnoteref20)
    ()
       These figures are cumulative achievements for 2014-2020 up to the end of 2020, for the European Regional Development Fund and the Cohesion Fund.
:   [(20)](#footnoteref21)
    ()
       See 
    <https://ec.europa.eu/growth/smes_>
    <en>
    <https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.LI.2020.433.01.0028.01.ENG&toc=OJ%3AL%3A2020%3A433I%3ATOC>
    .
:   [(21)](#footnoteref22)
    ()
       See 
    <https://ec.europa.eu/info/policies/justice-and-fundamental-rights/gender-equality/gender-equality-strategy_en>
    <.>
:   [(22)](#footnoteref23)
    ()
       The Team Europe approach consists of the European Union, the EU Member States – including their implementing agencies and public development banks – as well as the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD). The Team Europe approach applies both internationally and at country level and is an inclusive process open to all EU Member States, their implementing organisations and financing institutions.
:   [(23)](#footnoteref24)
    ()
       This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.
:   [(24)](#footnoteref25)
    ()
       JOIN(2021) 30 final, 1.12.2021
:   [(25)](#footnoteref26)
    ()
       This does not include the payments made in the context of the Recovery and Resilience Facility, which is covered in Annex III.
:   [(26)](#footnoteref27)
    ()
       It should be noted that the European Development Fund has been incorporated into the EU’s general budget for the 2021-2027 multiannual financial framework.
:   [(27)](#footnoteref28)
    ()
       The amount of the Commission’s relevant expenditure corresponds to the payments made in 2021 minus the pre-financing paid out in 2021, plus the pre-financing paid out in previous years and cleared in 2021 (for definitions and more details, see Annex 5).
:   [(28)](#footnoteref29)
    ()
       Not including the Recovery and Resilience Facility.
:   [(29)](#footnoteref30)
    ()
       Communication to the Commission – Governance in the European Commission (
    [C(2020) 4240](https://ec.europa.eu/info/sites/default/files/c_2020_4240_en.pdf)
    ).
:   [(30)](#footnoteref31)
    ()
       The term ‘authorising officers by delegation’ covers directors-general of Commission departments, heads of executive agencies, offices, services, task forces, etc. Article 74(1) of the financial regulation states that: ‘The authorising officer shall be responsible in the Union institution concerned for implementing revenue and expenditure in accordance with the principle of sound financial management, including through ensuring reporting on performance, and for ensuring compliance with the requirements of legality and regularity and equal treatment of recipients.’
:   [(31)](#footnoteref32)
    ()
       As required by Article 247 of the financial regulation, the integrated financial and accountability reporting package also includes the consolidated annual accounts of the European Union, the report on the follow-up to the budgetary discharge for the previous financial year, the annual report to the discharge authority on internal audits carried out and the long-term forecast of future inflows and outflows of the EU budget.
:   [(32)](#footnoteref33)
    ()
       As established by the Committee of Sponsoring Organizations of the Treadway Commission.
:   [(33)](#footnoteref34)
    ()
       Communication to the Commission from Commissioner Oettinger – Revision of the internal control framework (
    [C(2017) 2373](https://ec.europa.eu/info/sites/default/files/about_the_european_commission/eu_budget/revision-internal-control-framework-c-2017-2373_2017_en.pdf)
    ).
:   [(34)](#footnoteref35)
    ()
       Commission Implementing Decision of 14.4.2021 establishing the necessary arrangements for the administration of the borrowing operations under Council Decision (EU, Euratom) 2020/2053 and for the lending operations related to loans granted in accordance with Article 15 of Regulation (EU) 2021/241 of the European Parliament and of the Council (
    [C(2021) 2502](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=PI_COM:C(2021)2502&qid=1621607503959)
    ).
:   [(35)](#footnoteref36)
    ()
       Commission notice – Guidance on the avoidance and management of conflicts of interest under the financial regulation (
    [2021/C 121/01](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.C_.2021.121.01.0001.01.ENG&toc=OJ%3AC%3A2021%3A121%3AFULL)
    ).
:   [(36)](#footnoteref37)
    ()
       This corresponds to the new set-up in 2014-2020 compared to the previous period.
:   [(37)](#footnoteref38)
    ()
       For more information, see the 
    [annual reports on the protection of the EU’s financial interests](https://ec.europa.eu/anti-fraud/about-us/reports/annual-reports-protection-eus-financial-interests-pif-report_en)
    .
:   [(38)](#footnoteref39)
    ()
       For more information, see 
    [OLAF’s annual reports](https://ec.europa.eu/anti-fraud/about-us/reports/annual-olaf-reports_en)
    .
:   [(39)](#footnoteref40)
    ()
       
    [Regulation (EU, Euratom) 2020/2092](http://ttps://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.LI.2020.433.01.0001.01.ENG&toc=OJ%3AL%3A2020%3A433I%3AFULL)
     of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget, OJ L 433I, 22.12.2020, p. 1.
:   [(40)](#footnoteref41)
    ()
       In the case of the European Regional Development Fund, the Cohesion Fund and the European Maritime and Fisheries Fund, the level of risk has also been considered high, irrespective of the risk at payment , when the audit opinion issued in the annual activity reports on the functioning of the management and control system of the programmes was either adverse or qualified.
:   [(41)](#footnoteref42)
    ()
       The legislative financial statement accompanying the Commission’s proposal for the Horizon 2020 regulation states the following: ‘The Commission considers therefore that, for research spending under Horizon 2020, a risk of error, on an annual basis, within a range between 2-5% is a realistic objective taking into account the costs of controls, the simplification measures proposed to reduce the complexity of rules and the related inherent risk associated to the reimbursement of costs of the research project. The ultimate aim for the residual level of error at the closure of the programmes after the financial impact of all audits, correction and recovery measures will have been taken into account is to achieve a level as close as possible to 2%.’
:   [(42)](#footnoteref43)
    ()
       See Annex 5 for further information.
:   [(43)](#footnoteref44)
    ()
       Seventh framework programme for research and technological development, pilot projects and preparatory actions, EU programme for the competitiveness of enterprises and small and medium-sized enterprises, Research Fund for Coal and Steel and Connecting Europe Facility – Telecom.
:   [(44)](#footnoteref45)
    ()
       As of 2019, a de minimis threshold for financial reservations was introduced. Quantified annual activity report reservations relating to residual error rates above the 2% materiality threshold are deemed not to be substantial for segments representing less than 5% of a directorate-general’s total payments and with a financial impact below EUR 5 million. In such cases, quantified reservations are no longer needed.
:   [(45)](#footnoteref46)
    ()
       For example Marie Skłodowska-Curie, which is part of Horizon 2020.
:   [(46)](#footnoteref47)
    ()
       European Regional Development Fund, Cohesion Fund, European Social Fund, Youth Employment Initiative, Fund for European Aid to the Most Deprived.
:   [(47)](#footnoteref48)
    ()
       Financial corrections for 2007 – 2013 and deducted expenditure from the accounts for the period 2014, see also Volume II, Annex 5, section 5..4.
:   [(48)](#footnoteref49)
    ()
       The maximum value of the range is determined taking into account the worst-case scenario in the light of ongoing audit procedures.
:   [(49)](#footnoteref50)
    ()
       This is within the error-level range of between 0.9% and 6.1% estimated by the Court of Auditors in its 
    [2020 annual report](https://www.eca.europa.eu/Lists/ECADocuments/annualreports-2020/annualreports-2020_EN.pdf)
     (Annex 5.1, p. 154). The higher level of error estimated by the Court can sometimes be explained by divergences in the interpretation of national rules or in the method used to determine the amount of error.
:   [(50)](#footnoteref51)
    ()
       This assessment is corroborated by the recent study ‘Single audit approach – Root causes of the weaknesses in the work of the Member States’ managing and audit authorities’, conducted by the Centre for Strategy & Evaluation Services at the request of the European Parliament’s Committee on Budgetary Control. According to this study, ‘Notwithstanding the identified shortcomings in the implementation and control of EU expenditure, overall, the work of the audit bodies in the Member States is perceived as reliable and robust.’
:   [(51)](#footnoteref52)
    ()
       91% of programmes under the European Regional Development Fund and the Cohesion Fund and 89% of programmes under the European Social Fund, the Youth Employment Initiative and the Fund for European Aid to the Most Deprived.
:   [(52)](#footnoteref53)
    ()
       78% of European Regional Development Fund and Cohesion Fund reservations and 88% of European Social Fund, Youth Employment Initiative and Fund for European Aid to the Most Deprived reservations are lifted in less than 2 years.
:   [(53)](#footnoteref54)
    ()
       As there is no closure for the European Agricultural Guarantee Fund measures, in the area of agricultural expenditure the risk at closure is replaced by the final amount at risk.
:   [(54)](#footnoteref55)
    ()
       European Maritime and Fisheries Fund expenditure, although included under the ‘Natural resources’ heading, follows the same delivery mechanism as cohesion expenditure.
:   [(55)](#footnoteref56)
    ()
       This is required by Regulation (EU, Euratom) 2018/1046, the financial regulation.
:   [(56)](#footnoteref57)
    ()
       
    [Annual activity reports](https://ec.europa.eu/info/publications/annual-activity-reports_en)
    .
:   [(57)](#footnoteref58)
    ()
       The term ‘authorising officer by delegation’ covers directors-general of Commission departments and heads of executive agencies, offices, services and task forces.
:   [(58)](#footnoteref59)
    ()
       Communication to the Commission – Mission charter of the Internal Audit Service of the European Commission (C(2020) 1760).
:   [(59)](#footnoteref60)
    ()
       One important recommendation was rejected by the auditee. Management accepted the residual risk and implemented part of the recommendation and no further discussion at Audit Progress Committee preparatory group level was necessary.
:   [(60)](#footnoteref61)
    ()
       2% for 2020, compared to 1.9% for 2019.
:   [(61)](#footnoteref62)
    ()
       Communication to the Commission from Commissioner Reynders in agreement with the President – Update of the charter of the Audit Progress Committee of the European Commission (
    [C(2020) 1165](https://ec.europa.eu/info/sites/default/files/about_the_european_commission/departments_and_executive_agencies/documents/apc_charter_part1_november2018_en.pdf)
    ).
:   [(62)](#footnoteref63)
    ()
       Proposal for a Regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (recast), COM(2022)223.
:   [(63)](#footnoteref64)
    ()
       Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021.
:   [(64)](#footnoteref65)
    ()
       All Member States except for the Netherlands.
:   [(65)](#footnoteref66)
    ()
       Commission staff working document – Guidance to Member States – Recovery and resilience plans (SWD(2021) 12).
:   [(66)](#footnoteref67)
    ()
       The Netherlands has not yet submitted its plan.
:   [(67)](#footnoteref68)
    ()
       Most of them had already been received by summer 2021.
:   [(68)](#footnoteref69)
    ()
       In most cases within less than the 2‑month assessment period following their official submission provided for in Article 19(1) of the regulation.
:   [(69)](#footnoteref70)
    ()
       In most cases within less than 1 month after the Commission’s decision on its assessment. The last three of the 22 plans were endorsed by the Council on 29 October 2021.
:   [(70)](#footnoteref71)
    ()
       
    [Recovery and Resilience Scoreboard (europa.eu)](https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/health.html)
    .
:   [(71)](#footnoteref72)
    ()
       In accordance with the financing agreement, ex post audits can be carried out up to 5 years starting from the date after the last payment has been submitted.
:   [(72)](#footnoteref73)
    ()
       I.e. in cases of reimbursement of costs actually incurred, or entitlement-based expenditure when an exact amount is provided for in the legal basis for a given quantity: a given amount of euros per eligible hectare under the common agriculture policy, a given amount of euros of family allowance per child for administrative expenditure or any other flat-rate or standard amount, or unit cost, that is directly linked to a given quantity.

[Top](#document2)

![european flag](./../../../images/eclogo.jpg)EUROPEAN COMMISSION

Strasbourg, 7.6.2022

COM(2022) 401 final

ANNEX

to the

REPORT FROM THE COMMISSION   
  
TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS

Annual Management and Performance Report for the EU Budget - Financial Year 2021

Annex 4 Programme performance overview

This annex contains a concise overview of the implementation and performance of each spending programme in the 2021‑2027 MFF and of those programmes in the 2014-2020 MFF for which relevant payments continued to be implemented in 2021. It draws on the information contained in the programme statements attached to the 2023 draft budget.

Important: this annex is exclusively available online

In line with the European Commission’s digital strategy, and with the objective of improving the accessibility of performance information and the user experience, this annex has been published exclusively on the Europa website.

Please visit the following website to access the information on the implementation and performance of the spending

<https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance_en>

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_03002.jpg)

The present annex has been prepared in the current format with the sole objective of allowing its adoption by the College of Commissioners and its publication in the Official Journal of the European Union.

  

The 2021-2027 spending programmes included in this annex are the following:

Heading 1: Single Market, Innovation and Digital

[Horizon Europe](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/horizon-europe-performance_en)

[Euratom Research and Training Programme](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/euratom-research-and-training-programme-performance_en)

[ITER](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/iter-performance_en)

[InvestEU](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/investeu-performance_en)

[Connecting Europe Facility (CEF)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/connecting-europe-facility-cef-performance_en)

[Digital Europe Programme](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/digital-europe-programme-performance_en)

[Single Market Programme](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/single-market-programme-performance_en)

[EU Anti-Fraud Programme](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/eu-anti-fraud-programme-performance_en)

[Cooperation in the field of taxation (FISCALIS)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/cooperation-field-taxation-fiscalis-performance_en)

[Cooperation in the field of customs (CUSTOMS)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/cooperation-field-customs-customs-performance_en)

[European Space Programme](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-space-programme-performance_en)

Heading 2: Cohesion and Values

[Regional Policy](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/regional-policy-performance_en)

[Support to the Turkish Cypriot community](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/support-turkish-cypriot-community-performance_en)

[Recovery and Resilience Facility](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/recovery-and-resilience-facility-performance_en)

[Technical Support Instrument](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/technical-support-instrument-performance_en)

[Protection of the Euro Against Counterfeiting (Pericles IV)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/protection-euro-against-counterfeiting-pericles-iv-performance_en)

[Union Civil Protection Mechanism (rescEU)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/union-civil-protection-mechanism-resceu-performance_en)

[EU4Health](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/eu4health-performance_en)

[Emergency Support within the Union](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/emergency-support-within-union-performance_en)

[European Social Fund+](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-social-fund-performance_en)

[Erasmus+](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/erasmus-performance_en)

[European Solidarity Corps](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-solidarity-corps-performance_en)

[Justice Programme](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/justice-programme-performance_en)

[Citizens, Equality, Rights and Values programme](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/citizens-equality-rights-and-values-programme-performance_en)

[Creative Europe](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/creative-europe-performance_en)

[Communication](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/communication-performance_en)

[Brexit Adjustment Reserve](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/bar-performance_en)

Heading 3: Natural Resources & Environment

[Common Agricultural Policy](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/common-agricultural-policy-performance_en)

[European Maritime, Fisheries and Aquaculture Fund](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-maritime-fisheries-and-aquaculture-fund-performance_en)

[Fisheries organisations and agreements](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/fisheries-organisations-and-agreements-performance_en)

[Programme for Environment and Climate Action (LIFE)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/programme-environment-and-climate-action-life-performance_en)

[Just Transition Mechanism](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/just-transition-mechanism-performance_en)

Heading 4: Migration & Border Management

[Asylum, Migration and Integration Fund](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/asylum-migration-and-integration-fund-performance_en)

[Integrated Border Management Fund](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance_en)

Heading 5: Security & Defence

[Internal Security Fund](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/internal-security-fund-performance_en)

[Nuclear Decommissioning (Lithuania)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/nuclear-decommissioning-lithuania-performance_en)

[Nuclear Safety and Decommissioning](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/nuclear-safety-and-decommissioning-performance_en)

[European Defence Fund](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-defence-fund-performance_en)

Heading 6: Neighbourhood & the World

[Global Europe: Neighbourhood, Development and International Cooperation Instrument](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/global-europe-neighbourhood-development-and-international-cooperation-instrument-performance_en)

[European Instrument for International Nuclear Safety Cooperation](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-instrument-international-nuclear-safety-cooperation-performance_en)

[Humanitarian Aid](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/humanitarian-aid-performance_en)

[Common Foreign and Security Policy](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/common-foreign-and-security-policy-performance_en)

[Overseas Countries and Territories](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/overseas-countries-and-territories-performance_en)

[Macro-Financial Assistance (MFA)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/macro-financial-assistance-mfa-performance_en)

[Pre-Accession Assistance](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/pre-accession-assistance-performance_en)

Special instruments and outside the MFF

[European Globalisation Adjustment Fund for Displaced Workers](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-globalisation-adjustment-fund-displaced-workers-performance_en)

[European Union Solidarity Fund](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-union-solidarity-fund-performance_en)

[Innovation Fund](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/innovation-fund-performance_en)

1.Introduction

The Commission is committed to presenting accurate, reliable and understandable performance information relating to EU spending programmes. This annex to the annual management and performance report contains the programme performance overview, which is drawn from the programme statements attached to the 2023 draft budget. This overview presents all of the EU spending programmes for the 2021-2027 period in a concise and uniform format. In addition, it presents the implementation and the performance of the programmes for the 2014-2020 period for which relevant payments were still being implemented in 2021.

For each programme, the overview contains a file with the following information.

·Concrete examples of the main achievements of both the 2021-2027 and 2014-2020 programmes.

·For each 2021-2027 programme:

·the 2021-2027 budget;

·the rationale and design of the programme;

·the legal basis;

·the budget implementation;

·the contribution to horizontal priorities (climate, biodiversity and gender);

·an assessment of the performance of the programme based on currently available information.

·For each 2014-2020 predecessor programme (if applicable):

·the budget implementation;

·an assessment of the performance of the programme based on currently available information.

The ‘Performance assessment’ section presents a summary of the overall progress towards achieving the programme objectives. In addition, the ‘Key performance indicators’ section includes an assessment of whether the indicators are on track to reach their targets.

It should be kept in mind that, with most of the 2021-2027 programmes having barely been launched in 2021, in most cases little implementation data, if any, is yet available. Moreover, given the multiannual life cycle of EU spending programmes, information on actual results may only become available a number of years after the start of programme implementation. This applies, in particular, to the European Structural and Investment Funds and other long-term investment programmes. On the other hand, the implementation of certain programmes from the 2014-2020 programming period is still ongoing, and will continue for a number of years, as provided for in their respective legal bases. A novel feature of this reporting exercise is that we also report on the results of such ongoing 2014-2020 programmes.

The information summarised and presented in this overview for each individual programme does not replace the full set of data and performance information as required by Article 41(3)(h) of the financial regulation (
[1](#footnote2)
) when the Commission presents the proposed draft budget. A complete overview of all 48 EU spending programmes is presented in the Working Document Part I – Programme statements of operational expenditure of the 2023 draft budget.

2.Financial information: methodology

The purpose of the financial information presented in the programme performance overview is to enable the reader to make the link between the funds made available for a specific topic and the results achieved through these funds.

The methodology takes into account the fact that the EU budget uses different categories of expenditure (or ‘fund sources’), and it is important to include all of them to present a full picture of the financial efforts made to achieve the objectives. Each programme file presents financial information on both the 2021-2027 programme and its predecessor programme(s), insofar as they remain relevant. Due to the evolving nature of the EU budget, additional fund sources have been included in the financial information on the 2021-2027 programme. For this reason, the methodology varies between the two multiannual financial frameworks.

With respect to the 2014-2020 programmes, the following should be noted.

·The total budget of a programme principally includes the commitment appropriations authorised on an annual basis by the European Parliament and the Council, i.e. the voted budget. In addition, this year’s report contains the implementation made on the basis of two additional sources, as follows.

1.Expenditure relating to amounts carried over from the previous year.

2.Payments made on the basis of recoveries and repaid advances for the programmes that the Commission implements in cooperation with the Member States: the European Regional Development Fund, the Cohesion Fund, the European Social Fund, the Fund for European Aid to the Most Deprived, the European Globalisation Adjustment Fund, the European Agricultural Guarantee Fund, the European Agricultural Fund for Rural Development, the Asylum, Migration and Integration Fund, the Internal Security Fund and the European Maritime and Fisheries Fund.

·Payments made in the 2014-2020 period on the outstanding commitments from the 2007-2013 period are not included in the calculations so as to focus only on the implementation of the 2014-2020 programmes and the related achievements.

·Any exceptions to the above methodology are specified in a footnote in the programme files concerned.

With respect to the 2021-2027 programmes, the following should be noted.

·The total budget includes commitment appropriations arising:

·from the voted budget, i.e. authorised on an annual basis by the European Parliament and the Council;

·from the amounts of fines pursuant to Article 5 of the MFF Regulation (this source is used only for 2022 and 2023).

·from NextGenerationEU;

·from decommitments made available again for research programmes, pursuant to Article 15(3) of the financial regulation; and

·from assigned revenue resulting from the participation of European Free Trade Association states and other countries and entities in certain EU programmes.

·2021 being the first year of the new multiannual financial framework, no carried-over amounts or recoveries and repaid advances are included in the total amounts (these will be included in the programme performance overview from next year onwards).

·Payments made in the 2021-2027 period on the outstanding commitments from the 2014-2020 period are not included in the calculations, in accordance with the approach used for the 2014-2020 programmes (see above).

·Some programmes (e.g. ESF+) can pursue their objectives by making financial contributions to other programmes, which then use them to fund their own activities. In such cases, these transferred amounts are included within the financial information of the recipient programme(s) and excluded from the financial information of the contributing programme. This convention ensures no double-counting of resources.

·Any exceptions to the above methodology are specified in a footnote in the programme files concerned.

3. Key performance indicators: methodology

SELECTION OF INDICATORS

The performance framework for the 2021-2027 EU spending programmes includes more than 750 indicators measuring performance against more than 170 specific objectives. These indicators are included in the respective legal bases, typically following a proposal by the Commission and after negotiations between the co-legislators.

The programme performance overview presents the most relevant indicators from the programme statements. For the 2021-2027 spending programmes, the selection of indicators for the programme performance overview was made based on the following criteria, aiming to present a balanced and representative picture of programme performance:

·a maximum of nine indicators per programme;

·coverage of specific objectives;

·a focus on choosing the most representative indicator for the specific objective;

·a focus on output and result indicators, rather than on impact indicators, in the light of the early stage of implementation and of the expected lag with which impact indicators will show effects;

·indicators with targets (or indicators for which targets will be defined), in order to estimate the progress towards the target.

·a preference for indicators that can be understood by non-specialist readers.

In the case of the 2014-2020 spending programmes, the chosen indicators are those that were already included in the programme performance overview from last year and on which reporting has continued in this year’s programme statements. This year’s programme statements have continued to report on 2014-2020 indicators for programmes with relevant payments still being implemented, except for indicators that:

·have been discontinued;

·show a very limited change in results compared to the previous year (one such circumstance is when the target had already been reached in a previous year);

·provide limited value in assessing the performance of the 2014-2020 programmes at this stage of the life cycle (e.g. input and output indicators for some programmes are more relevant during the first years of implementation, while result and impact indicators are more relevant at a later stage).

It is crucial to bear in mind that the information contained in the indicators can only provide an indication of the overall performance and achievements of each specific programme. It is only possible to make comprehensive statements about the ultimate performance of programmes by taking into account the specific implementation context, including qualitative as well as quantitative elements. The Commission does this in the context of regular evaluations of its spending programmes.

DEFINITION OF TARGETS

Targets are defined at the beginning of the programme implementation period and come in various forms (e.g. quotas, benchmarks, numerical goals). The methodology used to set the target for each indicator can be found in the indicator metadata Excel file (
<https://ec.europa.eu/info/files/2021-2027-indicator-metadata-set_en>
).

For some programmes, the definition of the targets requires the prior approval of implementation arrangements. This is the case, for example, for the programmes for the European Structural and Investment Funds and the InvestEU programme. For those programmes with implementation arrangements still being finalised in 2022, the targets will be published in the programme statements for the draft budget 2024.

In some cases, the final target is set for 2027, the end of the programming period. However, account should be taken of the specific nature of the shared management programmes, which are characterised by a long start-up phase (e.g. planning, programming, project selection, authorisations) followed by a long implementation cycle. As such, the appropriations for the European Structural and Investment Funds can still be implemented in the 3 years following the commitment of the funding (the so-called ‘n + 3’ rule), therefore the final target is typically set for 2030.

DEFINITION OF BASELINES

A baseline is a measurement taken prior to a specific intervention, which allows the results before and after (i.e. with and without) the intervention to be compared. In the context of the EU budget, the baseline is the measurement of the indicator before the start of EU budget funding for the current programming period. The methodology used to estimate the baseline for each indicator can be found in the indicator metadata Excel file (
<https://ec.europa.eu/info/files/2021-2027-indicator-metadata-set_en>
).

Because of its nature, a baseline is not always available for all the indicators, whereas in other cases the baseline should be considered to be zero. This is the case, for example, for the ‘output indicators’ relating to the specific deliverables of the intervention, such as the number of projects funded by the EU budget.

It is important to make a distinction between a baseline and a historical benchmark or reference. The measurement of an indicator before the 2021-2027 period should not automatically be considered as a baseline, since its measurement could have been influenced by the EU budget actions from the previous period (2014-2020).

The baseline of an indicator is used when the indicator meets the following three conditions.

·A quantitative baseline is available in the programme statements.

·The baseline meets the definition of measurement before EU budget intervention.

·The target represents an improvement (i.e. a better result) compared to the baseline – otherwise the progress could not be calculated. Depending on the indicator, an improvement can be an increase or a decrease compared to the baseline.

DEFINITION OF ‘PROGRESS’

The ‘progress’ of an indicator provides a consistent presentation across programmes of the evolution of the indicator from the baseline (if applicable) to the target. In the programme performance overview website(s) the progress is shown using bar charts for the selected indicators.

General formula

The general formula used to calculate the ‘progress towards the target’ percentage is as follows:

Progress % = (last year result – baseline) / (target – baseline)

Example

Programme: Implementation and exploration of European satellite navigation systems (Galileo and EGNOS)

|  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Specific objective 1: To develop and provide global satellite-based radio navigation infrastructures and services (Galileo) by 2020 | | | | | | | | | |
|  | Indicator 1: Galileo infrastructure – cumulative number of operational satellites | | | | | | | | | |
| Baseline | | Actual results | | | | | | |  | Target |
|  | | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |  |
| 4 | | 3 | 9 | 18 | 22 | 26 | 26 | 26 | 28 | 30 |

2021 progress % = (28 – 4) / (30 – 4) = 92%

Adaptations

Specific adaptions, if any, are noted in the footnotes at the bottom of the respective figures. Examples of such adaptations are as follows.

In cases where the target and results are annual values:

Progress % = 
   number of years with results above the target 
  
(or annual milestones) / total number of years

In cases where the progress should be expressed in a cumulative way from the beginning of the 2014-2020 period, and the annual results are not cumulative:

Progress % = (sum (annual results) – baseline) / (target – baseline)

In cases where the progress cannot be expressed in a cumulative way, and the ‘last year result’ does not reflect the progress of the programme during the period as a whole, then the ‘last year result’ is replaced in the formula by the ‘average of the annual results from the beginning of the period’:

Progress % = (average (results 2014:2020) – baseline) / (target – baseline)

In cases where annual milestones are available and the progress of the programme is better reflected comparing the results to the annual milestones, then targets are replaced in the formula by annual milestones.

INDICATOR ASSESSMENT

The results of the indicators are assessed using the following definitions.

·‘Achieved’: if the indicator has achieved at least 95% of the target and there is no possibility that the achievement could be reversed/jeopardised before the target year.

·‘On track’: if the indicator is expected to reach at least 95% of the target based on the evolution of the results and the ongoing actions.

·‘Moderate progress’: if the indicator shows a positive evolution but the results so far do not allow a conclusion to be drawn on whether the indicator is on track to reach its target.

·‘Deserves attention’: if there is a risk that the indicator will not reach the target unless significant changes are implemented.

·‘No data’: the data available is not enough to assess the progress of the indicator towards the target, for example there is no target or no recent results.

CUT-OFF DATE FOR PERFORMANCE INFORMATION

The most recent available performance information is used. For those programmes that are directly managed by the Commission, this mostly concerns reported achievements measured at the end of 2021. The programmes under shared management present values recorded and reported by Member States of the situation as at the end of 2020. The programmes under indirect management present a mixed picture: some have achievements reported up to 2021, while others depend on data sources provided by the international organisations that implement the actions (e.g. the United Nations family), and may therefore be reported with a lag.

Contents

HORIZON EUROPE

EURATOM RESEARCH AND TRAINING

ITER

INVESTEU

CEF

DEP

SINGLE MARKET PROGRAMME

ANTI-FRAUD

FISCALIS

CUSTOMS

EU SPACE

REGIONAL POLICY

TURKISH CYPRIOT COMMUNITY

RRF

TSI

PERICLES IV

CIVIL PROTECTION

EU4HEALTH

ESI

ESF+

ERASMUS+

EUROPEAN SOLIDARITY CORPS

JUSTICE PROGRAMME

CERV

CREATIVE EUROPE

COMMUNICATION

CAP

EMFAF

RFMOs/SFPAs

LIFE

JTM

AMIF

IBMF

ISF

NUCLEAR DECOMMISSIONING (LITHUANIA)

NUCLEAR DECOMMISSIONING

EDF

NDICI–GLOBAL EUROPE

INSC

HUMA

CFSP

DOAG

MFA

IPA III

EGF

EUSF

INNOVATION FUND

BAR

HORIZON EUROPE

PROGRAMME FOR RESEARCH AND INNOVATION

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 58 328  papers were published in high-impact, peer-reviewed journals between 2014 and 2021. | 31 339  joint public–private papers were published in peer-reviewed journals between 2014 and 2021. | 3 089  patent applications were made between 2014 and 2021. | 69 000  researchers, including PhDs, moved either internationally or between sectors in the 2014-2021 period. |
| 186 510  innovations were produced between 2014 and 2021. | 3 800  start-ups and scale-ups were supported by the European Institute of Innovation and Technology between 2014 and 2021. | 9  Nobel Prize winners were supported through European Research Council grants or Marie Skłodowska-Curie actions between 2010 and 2021. |  |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 86 698.0 |
| NextGenerationEU | 5 412.0 |
| Decommitments made available again (\*) | 20.0 |
| Contributions from other countries and entities | 842.0 |
| Total budget for 2021-2027 | 92 972.1 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

Horizon Europe is the EU’s 7-year research and innovation programme, running from 2021 to 2027. The programme is designed to serve all the political priorities of the European Union.

Challenge

Research and innovation (R & I) contribute to improving people’s lives (e.g. through better healthcare) and work (through better digital services), and to enhancing productivity, competitiveness and job-rich growth. They are also crucial for providing solutions to today’s and tomorrow’s challenges, for example in terms of the environment and the climate.

It is important, therefore, to further improve the creation and diffusion of high-quality new knowledge and innovation in Europe, reinforce the impact of R & I in the addressing EU’s priorities, ensure the more rapid uptake of innovative solutions and, more generally, strengthen the European research area.

Gearing research towards advancing common EU (and indeed global) goals produces social benefits that exceed any private benefits, and indeed even those that flow to any individual Member State that supports such efforts within its borders or by its researchers. Thus, if left to the individual Member States, such research would be carried out at a suboptimal level. Only through action at the EU level can all the positive spillovers be fully realised. Conversely, in order to maximise EU added value, it is important that EU action in this area be squarely focused on objectives and activities that cannot be effectively implemented by Member States acting alone, but only through their cooperation.

Mission

Horizon Europe aims to promote scientific excellence and generate new knowledge and technologies, thus contributing to advancing the EU’s objectives and policies (in particular in terms of boosting sustainable growth and job creation), tackling global challenges and strengthening the European research area.

Horizon Europe has a budget of around EUR 95.5 billion. This includes EUR 5.41 billion from NextGenerationEU to boost the economic recovery and make the EU more resilient in the future. The Horizon Europe framework programme will also be implemented through the European Defence Fund (for its research strand) and complemented by the Euratom research and training programme.

OBJECTIVES

Horizon Europe seeks to deliver R & I with maximum impact along the following three dimensions.

–Scientific impact. Creating high-quality new knowledge, strengthening human capital in R & I and fostering the diffusion of knowledge and open science.

–Technological/economic impact. Influencing the creation and growth of companies within the EU, especially small and medium-sized enterprises (including start-ups); creating direct and indirect jobs, especially within the EU; and leveraging investment for R & I.

–Societal impact. Addressing the EU’s policy priorities and global challenges – including the UN sustainable development goals – following the principles of the United Nations’ 2030 agenda for sustainable development and the goals of the Paris Agreement, through R & I; delivering benefits and impact through R & I missions and European partnerships; and strengthening the uptake of innovation in society, ultimately contributing to people’s well-being.

Moreover, Horizon Europe is designed to optimise delivery to strengthen the impact and attractiveness of the European research area, to foster excellence-based participation from all Member States, including those performing poorly on R & I, and to facilitate collaborative links in European R & I.

Actions

Horizon Europe activities include: fuelling the EU’s scientific and technological excellence through the European Research Council; funding fellowships and researchers’ mobility; investing in world-class research infrastructure; tackling our biggest societal challenges, including the green and digital transitions and the sustainable development goals; supporting policymaking with independent scientific evidence and technical support; and boosting the EU's innovation uptake, competitiveness and jobs through the European Innovation Council.

Delivery mode

Horizon Europe is implemented directly by the European Commission or via designated funding bodies. The programme provides funding for indirect action in any of the forms laid down in the financial regulation, in particular grants (including operating grants), prizes and procurements. It also supports direct action undertaken by the Joint Research Centre.

LINK TO THE 2014-2020 multiannual financial framework

Horizon Europe builds on the positive results of its predecessor, Horizon 2020. As a result of the interim evaluation of the Horizon 2020 programme, some changes were made that have been maintained under Horizon Europe, for example the European Innovation Council pilot project launched in 2017 to support breakthrough innovation. In addition, novelties have been introduced in Horizon Europe, notably:

–EU missions, to deliver targeted solutions to societal challenges together with citizens;

–a streamlined approach to European partnerships, to rationalise the funding landscape;

–extended association possibilities, to strengthen international cooperation;

–the open science policy, to reinforce openness;

–widening participation and spreading excellence, to decrease the R & I gap in the EU;

–synergies with other EU programmes and policies, to increase the R & I impact;

–simpler rules, to reduce administrative burdens.

Impact assessment

The impact assessment of Horizon Europe was carried out in 2018.

For further information please consult: 
<https://europa.eu/!Px33mc>

WEBSITE FOR more information

<https://europa.eu/!kY78ur>

Legal basis

Regulation (EU) 2021/695 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 11 527.6 | 12 239.2 | 12 342.9 | 12 271.6 | 12 513.6 | 12 775.6 | 13 027.6 | 86 698.0 |
| NextGenerationEU | 1 772.0 | 1 776.8 | 1 828.3 | 13.1 | 9.6 | 7.3 | 4.9 | 5 412.0 |
| Decommitments made available again (\*) | 20.0 |  |  |  |  |  |  | 20.0 |
| Contributions from other countries and entities | 842.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 842.0 |
| Total | 14 161.6 | 14 015.9 | 14 171.2 | 12 284.7 | 12 523.3 | 12 782.9 | 13 032.5 | 92 972.1 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: - EUR -319.0 million (- 0%) compared to the legal basis.\*

\* Top-ups pursuant to Art. 5 MFF Regulation are excluded from financial programming in this comparison.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 13 586.4 | | |  |  | | --- | --- | | |  | | --- | | 92 972.1 | | | |  | | --- | | 15% | |
| Payments | |  | | --- | | 1 203.7 | |  | |  | | --- | | 1% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 11 393.6 | 11 506.5 |
| Payments | 1 138.1 | 1 828.7 |

–2021 was the first year of implementation for Horizon Europe. The late adoption of the legal basis led to the adoption of the 2021-2022 work programmes and the launching of calls for proposals being postponed.

–85 of the more than 100 calls for proposals launched in 2021 were closed and fully evaluated by the end of the year.

–20 892 eligible proposals were submitted under those calls. Although two thirds (66%) of the eligible proposals were above the quality threshold, only 3 110 could be retained due to budgetary constraints, bringing the overall success rate of eligible proposals to 14.9% for the first year of the programme.

–By end of 2021, 19 grant agreements and one framework partnership agreement had been signed for a total EU contribution of EUR 244.0 million shared across various thematic areas.

–Despite the late adoption (at the end of November 2021) of the regulation for the establishment of joint undertakings under Horizon Europe, the Commission was able to make the commitments for seven joint undertakings before the end of the year. A carry-over of the 2021 appropriations (commitment and payment) was only requested for the EU’s 2021 financial contribution to Europe’s Rail Joint Undertaking and to the Single European Sky ATM Research 3 Joint Undertaking.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 4 750.4 | | 1 068.0 | Score 2: 36.9  Score 1: 160.0  Score 0\*: 11 196.7 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Horizon Europe peer-reviewed scientific publications | 0 | 0% | 150 000 in 2027 | 952 compared to a target of 900 in 2021 | On track |
| Researchers involved in upskilling (training, mentoring/coaching, mobility and access to R & I infrastructures) activities in FP projects | 0 | 2% | 72 000 in 2027 | 1 104 compared to a target of 1 000 in 2021 | On track |
| Research outputs (open data, publication, software, etc.) shared through open knowledge infrastructure | 0 | 86% | 95% in 2027 | 82% | On track |
| Innovative products, processes or methods from framework programme (by type of innovation) and intellectual property rights applications | 0 | 0% | 255 000 in 2027 | 164 | On track |
| Full-time equivalent jobs created, and jobs maintained in beneficiary entities for the framework programme project (by type of job) | 0 |  | 450 000 in 2027 | No results | No data |
| Public and private investment mobilised with the initial framework programme investment (EUR billion) | 0 |  | 20.0 in 2027 | No results | No data |
| Outputs aimed at addressing identified EU policy priorities and global challenges (including sustainable development goals) (multidimensional: for each identified priority) | 0 | 14% (\*\*) | 100% annually | Target achieved in 2021. 100% compared to a target of 100%. | On track |
| Outputs in specific R & I missions (multidimensional: for each identified mission) | 0 |  | Under development | No results | No data |
| Framework programme projects where EU citizens and end users contribute to the co-creation of R & I content | 0 |  | 2% in 2027 | No results | No data |

(\*) % of target achieved by the end of 2021.

(\*\*) % of years for which the milestones or target have been achieved during the 2021-2027 period.

–The first main work programme for Horizon Europe for 2021-2022 aimed at boosting the European green and digital transitions and at contributing to sustainable recovery from the COVID-19 pandemic and EU resilience against future crises. It also provided support to researchers at all stages of their career for acquiring new knowledge and skills. Additionally, it targeted the creation of better-connected and more efficient innovation ecosystems and world-class research infrastructures. Finally, calls also encouraged participation across Europe and from around the world, while at the same time helping to strengthen the 
[European research area](https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1749)
. 2021 also saw the launch of the European Innovation Council’s first work programme.

–Regarding non-EU countries’ association with Horizon Europe, as of December 2021, Georgia, Iceland, Israel, Moldova, Montenegro, North Macedonia, Norway, Serbia and Turkey had applicable association agreements in place. National ratification procedures are expected to enter into force for the association agreements signed with Armenia, Bosnia and Herzegovina, Kosovo (
[2](#footnote3)
) and Ukraine. As long as the ratification of the agreement by Ukraine is suspended, Ukraine is eligible for EU funding under Horizon Europe as a low- to middle-income country. The association agreements are yet to be signed with Albania, the Faroes and Tunisia.

–A performance framework using key impact pathways has been designed to monitor the programme’s progress towards reaching its general objective. It covers the whole life cycle of a funded R & I activity, from outputs to impacts, depending on the period of time to which indicators are assigned (short, medium or long term). To measure the performance in the first phase of the programme’s life cycle, the reporting will concentrate on output indicators.

–After 1 year of programme implementation, results are mainly available from direct actions carried out by the Joint Research Centre.

–In addition, in response to the five calls for proposals relating to the 2021 Marie Skłodowska-Curie actions, 9 660 applicants have applied, showing that the scheme has garnered a large amount of interest. The selection results will be announced in 2022.

–The first EU missions were launched in May 2021 (
[3](#footnote4)
) to deliver solutions in five cross-sectoral areas where there is an urgent need: adaptation to climate change; cancer; climate-neutral and smart cities; oceans, seas and waters; and soil health and food.

–The EU provided nearly EUR 10 billion of funding to the 10 new 
[institutionalised partnerships](https://ec.europa.eu/info/horizon-europe/european-partnerships-horizon-europe_en)
 established in November 2021 between the European Union, Member States and/or industry. The partners will match the EU funding with at least an equivalent amount of investment. This combined contribution is expected to mobilise additional investment in support of the green and digital transitions and to create long-term positive impacts on employment, the environment and society.

–In June 2021, the Commission also launched 11 new co-programmed partnerships, mostly together with the private sector, to deliver solutions to major societal challenges. In addition, a call for proposals for co-funded partnerships involving public authorities was published in the 2021-2022 work programme.

–In 2021, the European Institute of Innovation and Technology launched the first ‘EIT community booster – Scaling New European Bauhaus ventures’ call to support the New European Bauhaus initiative in accelerating solutions integrating sustainability (from climate goals to circularity, zero pollution and biodiversity), aesthetics (quality of experience and style, beyond functionality) and inclusion (including diversity first, securing accessibility and affordability). A pilot phase launched for this community booster has already supported 13 ventures with a total of EUR 650 000.

2014-2020 multiannual financial framework – Horizon 2020

Horizon 2020 – the eighth framework programme funding research, technological development and innovation – was established as a means of putting the EU at the heart of world-class science and innovation, making it more competitive and creating economic growth and new jobs.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 75 616.3 | | |  | | --- | | 75 623.6 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 61 946.2 | |  | |  | | --- | | 82% | |

–As regards the payment appropriations implemented in 2021, the available appropriations were mainly used to cover the legal obligations of initiatives selected in 2014-2020, including 2 971 final payments allowing the level of payment appropriations still to be implemented to be decreased.

–In order to mitigate the risk of the under-implementation of R & I projects due to the COVID-19 pandemic, the Commission has continued to allow maximum flexibility in relation to the implementation of initiatives. This was the case in particular in relation to accepting, as eligible costs, the costs of hours worked for Horizon 2020 initiatives via teleworking during the pandemic, even where it was not the usual practice of beneficiaries. In addition, the Commission continued to accept extensions to the duration of research projects. This also means that the full implementation of payment appropriations will take longer following the end of the programme.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target (\*\*) | Results | Assessment |
| Publications in peer-reviewed high-impact journals per EUR 10 million of funding for future and emerging technologies | 0 | 81% | 25 in 2025 | 20.2 out of 25 publications | On track |
| Patent applications in the different enabling and industrial technologies per EUR 10 million of funding | 0 | 28% | 3 in 2025 | 0.85 out of 3 patent applications | Moderate progress |
| Share of participating small and medium-sized enterprises introducing innovations new to the company or the market (covering the period of the project plus 3 years) | 0% | 214% | 50% in 2025 | 107% compared to 50% share | Achieved |
| Publications in peer-reviewed high-impact journals for all societal challenges | 0 | 25% | 20 in 2025 | 5 out of 20 publications | Moderate progress |
| Patent applications and patents awarded for all societal challenges | 0 | 17% | 3 in 2025 | 0.5 out of 3 patent applications | Moderate progress |
| Number of start-up and spin-off companies launched in relation to European Institute of Innovation and Technology activities | 0 | 78% | 600 in 2025 | 466 out of 600 start-ups and spin-offs | On track |

(\*) % of target achieved by the end of 2021.

(\*\*) The target is set for the year when the last actions financed under Horizon 2020 will be finished. The final figures will be collected after all of the projects are closed and results reported i.e. several years after the formal end of the programme in 2020.

–Many Horizon 2020 projects are still ongoing, as reflected by the payment rate (82%), which explains why some targets have a deadline after 2020. The Horizon 2020 performance will be measured until the last initiatives financed under Horizon 2020 are finished, i.e. several years after the formal end of the programme in 2020. Overall, Horizon 2020 has made good progress towards achieving scientific impacts by improving R & I capacity, scientific excellence and reputation and by integrating R & I efforts. The results indicate that, in most areas, Horizon 2020 has achieved its targets, and even exceeded them. No indicator deserves attention.

–The initiatives under the programme as far as the ‘Excellent science’ pillar is concerned are very satisfactory. Since 2014, the share of publications from European Research Council-funded projects among the top 1% most cited has remained high, at about 7 %, considerably exceeding the target of 1.8 %. Future and emerging technologies have already generated more than 20.2 publications in peer-reviewed journals per EUR 10 million of funding, and about one patent per EUR 10 million of funding, thus approaching the targets. The Marie Skłodowska-Curie actions scheme has exceeded its target of 65 000 researchers, including 25 000 PhDs. Since 2014, 115 053 supported researchers have had access to research infrastructures, including e-infrastructures, both remotely and physically, thus far exceeding the target.

–The initiatives under the ‘Industrial leadership’ pillar have progressed well. In this respect, projects on leadership in enabling and industrial technologies have produced more than 9 000 public–private publications. 197% of participating firms have introduced innovations ‘new to the company or the market’ with the potential to generate scientific breakthroughs, which almost meets the target of 200% (including private companies beyond the beneficiaries involved in the project). As regards patents, the result of 0.85 patent application per EUR 10 million of funding shows that it is progressing slowly towards the target of 3. This is normal, since patents are generally filed at the end of projects. Under the ‘access to risk finance’ activities, more than 32 000 organisations have been funded, and the total investment mobilised via debt financing and venture capital investments is EUR 71 billion, exceeding the targets. The instruments for small and medium-sized enterprises have generated around 2 545 jobs.

–On the other hand, the ‘Societal challenges’ pillar shows moderate progress. So far, the initiatives under this pillar have generated about 9 910 public–private publications and 83 900 innovations, including prototypes and testing activities. However, the number of peer-reviewed publications in high-impact journals per EUR 10 million of funding and the number of patent applications per EUR 10 million of funding are lower than the respective targets. Nevertheless, we expect to see better performance results following the end of the projects, when publications and patents generally start to be produced.

EURATOM RESEARCH AND TRAINING

RESEARCH AND TRAINING PROGRAMME OF THE EUROPEAN ATOMIC ENERGY COMMUNITY

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 221  training courses for students and professionals from Member States and Commission services have been provided by the Joint Research Centre since 2014. | 1 392  PhDs have been funded since 2014, including 750 PhDs in fusion physics and technology. | 8 300  researchers have had access to advanced research infrastructures through Eurofusion since 2014. | 5 976  scientific publications have been published in peer-reviewed journals since 2014. |

(\*)Key achievements in the table state to which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual lifecycle of EU programmes and the projects they finance, where results often materialise only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 1 979.3 |
| NextGenerationEU |  |
| Decommitments made available again (\*) | 0.0 |
| Contributions from other countries and entities | 15.1 |
| Total budget for 2021-2027 | 1 994.4 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The Euratom Research and Training Programme (2021-2025) is a nuclear research and training programme with an emphasis on the continuous improvement of nuclear safety, security and radiation protection. It complements the achievement of Horizon Europe’s objectives, including in the context of the energy transition as well as contributing to the implementation of the European fusion roadmap.

Challenge

Nuclear research contributes to social well-being and economic prosperity by improving nuclear safety, security and radiation protection. Research and innovation in the nuclear field play a key role in maintaining the highest safety standards and EU competences in the nuclear domain. Radiation protection research leads to improvements in medical technologies as well as in other sectors (such as industry, agriculture and the environment), from which many citizens benefit. Nuclear research also supports the EU’s efforts in the transition to a climate-neutral energy system.

Public and private research at the national level has a significant role to play in this effort. Euratom’s task is to complement Member States’ contributions by means of an EU-based research and training programme.

Mission

Euratom supports nuclear research and training activities. The programme aims at enhancing nuclear safety, security and protection from ionising radiation, including through safe waste management and decommissioning activities. The programme also focuses on the development of fusion energy – a long‑term option for large-scale, low-carbon electricity production – which could help address a growing energy demand beyond 2050. The programme provides, through the Joint Research Centre, important independent scientific advice in support of the implementation of EU policies in the nuclear field. The programme also seeks to strengthen the EU’s nuclear competences and knowledge management, while expanding our knowledge base of fusion energy, and pursues improvements in the areas of education, training and access to research infrastructure.

OBJECTIVES

Euratom pursues the following specific objectives:

–to improve and support nuclear safety, security, safeguards, radiation protection, safe spent fuel and radioactive waste management and decommissioning, including the safe and secure use of nuclear power and of non-power applications of ionising radiation;

–to maintain and further develop expertise and competence in the nuclear field within the EU;

–to foster the development of fusion energy as a potential future energy source for electricity production and contribute to the implementation of the European fusion roadmap;

–to support the EU policy on continuous improvement of nuclear safety, safeguards and security.

Actions

In the 2021-2025 period, Euratom will continue to give top priority to direct and indirect actions for maintaining nuclear expertise and for supporting research for nuclear safety, with particular emphasis on ageing nuclear plants, long-term operation strategies and accident management. The additional safety requirements introduced by the nuclear safety directive require increased efforts in developing an understanding of degradation mechanisms of safety-relevant components and the impact on safety overall. This would support a science-based assessment of the safety margins and allow for timely implementation of safety improvements. The predictive tools and assessment methods developed by the programme would benefit the periodic safety reviews of existing nuclear installations. They would also help regulators in assessing new designs.

Besides research in nuclear fields, direct actions, implemented by the Joint Research Centre, will also focus on nuclear security and nuclear safeguards by developing techniques and methods aiming at reducing nuclear security risks and supporting nuclear non‑proliferation efforts. In addition, the Joint Research Centre will develop nuclear standards and support the implementation of Euratom policies in these areas.

For the development of fusion energy during 2021-2025, the co-funded European partnership in fusion research will build on the progress made by the EUROfusion consortium (2014-2020), providing support for the efficient commencement of the international thermonuclear experimental reactor’s operations and, working hand in hand with industry, to increase the efforts on the conceptual design of a fusion power plant.

Delivery mode

The indirect actions (grants for research labs and universities) are implemented under the lead of DG Research and Innovation. The programme also supports direct actions undertaken by the Joint Research Centre.

LINK TO THE 2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK

The 2021-2025 programme builds on its predecessor, the 2014-2020 Euratom Programme. Compared to its predecessor, the new programme has a single set of objectives for both direct and indirect actions, seeking to enhance synergies with Horizon Europe in particular in medical applications of radiation. It reinforces the education and training actions in the nuclear field and opens Marie Skłodowska-Curie Actions to nuclear researchers.

Impact assessment

Commission Staff Working Document SWD(2018) 307 final, see 
<https://europa.eu/!hv87Cf>

WEBSITE FOR more information

<https://ec.europa.eu/programmes/horizon2020/en/h2020‐section/euratom>

Legal basis

Regulation (EU) 2021/765 of the European Parliament and of the Council.

Implementation and performance

Budget implementation

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 264.7 | 270.7 | 276.5 | 281.2 | 287.8 | 293.8 | 304.5 | 1 979.3 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | 0.0 |  |  |  |  |  |  | 0.0 |
| Contributions from other countries and entities | 15.1 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 15.1 |

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Total | 279.8 | 270.7 | 276.5 | 281.2 | 287.8 | 293.8 | 304.5 | 1 994.4 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: – EUR 1.0 million (– 0%)  compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitment | |  | | --- | | 269.5 | | |  | | --- | | 1 994.4 | | |  | | --- | | 14% | |
| Payments | |  | | --- | | 196.4 | |  | |  | | --- | | 10% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 264.7 | 265.7 |
| Payments | 193.0 | 207.9 |

–The financial year 2021 was the first year of implementation of the Euratom Programme 2021-2025. The late adoption of the regulation (in May 2021 instead of the beginning of the year) delayed the start of the Programme’s implementation.

–The Euratom Work Programme 2021-2022 for indirect actions could only be adopted in July 2021. As a result, the 2021 call deadline was postponed to end-2021, delaying the starting date of most of the projects and the related pre-financing to 2022 instead of 2021.

–However, the work programme allowed for the EUROfusion consortium to receive funding for a co-funded European partnership to implement the European fusion research roadmap over the years 2021-2025. The grant was signed in December.

–The separate Joint Research Centre 2021-2022 Work Programme for the direct actions was adopted in June 2021 and covers the main specific objectives of the programme, including nuclear security, safeguards, non-proliferation and policy support. In 2021, approximately 33% of direct actions were dedicated to nuclear safety research (including waste management, decommissioning and environmental radioprotection); 32% to research on nuclear safeguards, non-proliferation of nuclear weapons and security; 16% to research for establishing the foundations of nuclear science for standardisation and for non-energy applications of ionising radiation; 11% to knowledge management, education and training activities; and 8% to support provided to Euratom policies.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 149.5 | | 0 | Score 0\*: 265 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of Euratom- funded peer-reviewed scientific publications | 0 | 0% | 4 000 in 2025 | 0 | On track |
| Reference materials delivered and reference data incorporated to a library | 0 | 31% | 42 in 2025 | 13 out of 42 reference materials | On track |
| Number of outputs contributing to the modification of international standards | 0 | 0% | 18 in 2025 | 0 | On track |
| Number of technical systems provided and in use | 0 | 25% | 65 in 2025 | 16 out of 65 technical systems | On track |
| Public and private investment mobilised with the initial Euratom investment | 0 |  | EUR 500 million in 2025 | No results | No data |
| Number of persons having benefited from upskilling activities of the Euratom programme (through training, mobility and access to infrastructure) | 0 | 0% | 6 000 in 2025 | 0 | On track |
| Progress in the implementation of the fusion roadmap | 0 |  | 90% in 2025 | No results | No data |
| Number of full-time equivalent jobs created, and jobs maintained in beneficiary entities for the Euratom project (by type of job) | 0 |  | 11 000 | No results | On track |
| Number and share of Euratom projects producing policy-relevant findings | 0% | 82% | 50% in 2025 | 41% compared to 50% share | On track |

(\*) % of target achieved by the end of 2021

–As regards the indirect actions on fission, the 2021 call had a focus on ensuring the highest standards of nuclear safety of power plants, research reactors, materials and fuels including radioactive waste management and decommissioning. The call evaluation took place in November. Out of the 51 proposals submitted in the 16 topics of the call, 28 proposals were selected on the main list and five are on the reserve list. All projects selected will be finalised and launched during spring 2022.

–In education and training, the 2021 call resulted in a selection of proposals for long-term actions in nuclear and radiological education and training and access to infrastructures, offering support to students and researchers.

–In 2021, the direct actions of the programme resulted in the publication of 104 scientific articles in peer-reviewed journals and of 19 scientific articles in other periodicals. The technical outputs delivered include 11 sets of reference materials and two validated methods, which contributed to the modification of international standards, as well as 16 technical systems for safeguards and six scientific datasets and databases.

MULTIANNUAL FINANCIAL FRAMEWORK 2014-2020 – EURATOM RESEARCH AND TRAINING

Research and Training Programme of the European Atomic Energy Community for the period from 1 January 2014 to 31 December 2020.

Budget implementation

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitment | |  | | --- | | 2 357.0 | | |  | | --- | | 2 368.9 | | |  | | --- | | 99% | |
| Payments | |  | | --- | | 2 116.9 | |  | |  | | --- | | 89% | |

–All of the 2021 available payment appropriations have been used, mainly to cover legal obligations of ongoing projects.

–The COVID-19 pandemic continued to have an impact on the implementation of projects. During 2021, beneficiaries requested extensions of ongoing projects and submitted lower cost claims.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Publications in peer-reviewed high-impact journals | 0 | > 100% | 800 in 2020 | 822 publications compared to a target of 800 | Achieved |
| The number of spin-offs from the fusion research under the programme | 0 | 100% | 6 in 2020 | 6 spin-offs compared to a target of 6 | Achieved |
| The patent applications generated and patents awarded (\*\*) | 0 | > 100% (\*\*) | 4 in 2020 | 7 patent applications compared to a target of 4 | Achieved |

(\*) % of target achieved by the end of 2020.

(\*\*) % of target achieved by the end of 2021.

–The programme is on track as regards the 2014-2020 activities, the implementation of which will continue during 2022.

–Despite the pandemic, indirect actions achieved very good results. Several measures have been introduced to mitigate the risk of delays in the implementation of ongoing projects, such as acceptance of extensions and teleworking during the transitional period after confinement.

–Eighteen indicators out of 20 were recorded as on track (18 have reached their target). Only two indicators show moderate progress. No indicator is so clearly off-track as to deserve attention.

–By the end of 2021, several projects were completed and the programme has performed solidly in several respects – and notably in fusion research: the EUROfusion consortium has achieved 90% of the milestones established during 2014-2020.

–The fission projects involved an estimated workforce of around 8 000 people, including scientific managers, experienced researchers, additional specialist researchers and PhD students working on a part- or full-time basis in the projects. They are mainly employed by research organisations, private entities and higher or secondary education establishments. This illustrates the positive and high impact achieved between Member State institutes, research centres, academia, industry and Euratom, by closely collaborating at the EU level towards common broad scientific and technological research challenges and opportunities, innovation, development and demonstration goals.

–For example, the European joint programme on radioactive waste management supported the implementation of the nuclear waste directive in the Euratom Member States with EUR 32.5 million of Euratom funding.

–Under the direct actions, the operation of the European clearinghouse initiative on nuclear power plants operational experience feedback performed 12 topical studies, including analysis of causes, consequences, safety impact and corrective actions on incidents that occurred in nuclear power plants and 26 reviews of Member State event reports to the International Atomic Energy Agency.

–In addition, direct actions allowed the training of staff from 180 regulatory bodies and the clearinghouse initiative contributed to drafting two International Atomic Energy Agency nuclear safety technical documents and two standards in nuclear safety.

–In 2014-2020, the Joint Research Centre provided access to its nuclear research infrastructures to 158 projects, resulting in 140 research articles, with the participation of 64 PhD and Master’s students.

ITER

EUROPEAN JOINT UNDERTAKING FOR ITER AND THE DEVELOPMENT OF FUSION ENERGY

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 29 500  annual jobs were directly or indirectly created by ITER between 2007 and 2019. | 614  contracts were signed by the Fusion for Energy Joint Undertaking between 2007 and 2020. | EUR 4 824 million  was paid to European companies involved in ITER between 2007 and 2019. | 75.8%  project execution towards achieving first plasma was reached in 2021. |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 5 614.0 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | 0 |
| Contributions from other countries and entities | 0.6 |
| Total budget for 2021-2027 | 5 614.6 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The ITER-related EU action supports the construction and assembly of ITER, which will be the first experimental device to test the feasibility of fusion as a future source of energy.

Challenge

ITER is being built in Saint-Paul-lès-Durance (France) to prove the scientific and technological feasibility of fusion as a future source of sustainable energy, which would be a major contribution to the EU’s long-term goal of decarbonising the energy system.

The risk, costs, and long-term nature of a large research project such as ITER put it beyond the reach of individual EU Member States and call for action at the EU level and beyond. A global framework has been established among seven international partners (Euratom, China, India, Japan, South Korea, Russia and the United Stated – representing more than half of the world’s population) to support ITER’s construction, which started in 2007. Euratom provides 45.45% of all components and cash contributions to the ITER Organization through the European Joint Undertaking for ITER and the Development of Fusion Energy.

Mission

The general objective of the ITER-related EU action in the 2021-2027 multiannual financial framework is to fully support the continuation of ITER’s construction to reach the first experimental operations and to continue further installations and upgrades laying grounds for successful full-power operation by 2035.

Europe’s support to ITER and to other activities related to ITER, such as the ‘broader approach’ activities with Japan, contributes to the strategic agenda of the EU for clean and secure energy. ITER is stimulating the European industrial investment in new advanced technologies for the components of the facility and in advanced civil engineering for its construction.

OBJECTIVES

The EU’s participation to ITER pursues five specific objectives:

–to provide sufficient performance-based funding to the ITER Organization for its operations, particularly the assembly of the installation from the components arriving from individual ITER members;

–To ensure the delivery of EU components by the Fusion for Energy Joint Undertaking in line with the project’s schedule and strategies, in particular its construction and assembly strategies;

–to offer European high-tech industries and small and medium-sized enterprises a valuable opportunity to innovate and develop ‘spin-off’ products for exploitation outside fusion;

–to secure continued EU leadership in the project by ensuring the timely delivery of EU components and active participation in ITER governance processes;

–to continue activities with Japan (‘broader approach’) on the satellite tokamak JT‑60SA operation and on the development of a full-scale material testing facility (International Fusion Materials Irradiation Facility / DEMO Oriented Neutron Source.) to ensure that all technical and scientific elements needed for the design of a fusion-based power generation device for demonstration are in place.

Actions

The programme covers the EU’s contribution to the ITER Organization, both in cash and in kind, for the construction of the ITER facility, which includes the procurement of equipment, installation, general, technical and administrative support for the construction phase and participation in commissioning and operations.

The programme also covers other ITER-related activities, such as the ‘broader approach’ activities with Japan.

These contributions are delivered through the Fusion for Energy Joint Undertaking, the European domestic agency for ITER, located in Barcelona (Spain).

Delivery mode

Indirect management is entrusted to the Joint Undertaking for ITER and the Development of Fusion for Energy.

LINK TO THE 2014-2020 Multiannual financial framework

The programme is a continuation of its 2014-2020 multiannual financial framework predecessor. The budget of the programme has almost doubled.

Impact assessment

The ex ante evaluation of ITER was adopted on 7 June 2018: SWD(2018) 325.

WEBSITE FOR more information

<http://fusionforenergy.europa.eu/>

<https://www.iter.org/>

Legal basis

Council Decision (Euratom) 2021/281 of 22 February 2021.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 864.0 | 710.1 | 1 019.8 | 806.3 | 690.1 | 856.3 | 667.3 | 5 614.0 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again\* | 0.0 |  |  |  |  |  |  | 0.0 |
| Contributions from other countries and entities | 0.6 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0.6 |
| Total | 864.6 | 710.1 | 1 019.8 | 806.3 | 690.1 | 856.3 | 667.3 | 5 614.6 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + EUR 0.0 million (+ 0%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 864.0 | | |  | | --- | | 5 614.6 | | |  | | --- | | 15% | |
| Payments | |  | | --- | | 262.6 | |  | |  | | --- | | 5% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 864.0 | 864.0 |
| Payments | 262.6 | 263.9 |

–The ITER Organization and the ITER domestic agencies have continued the implementation of the revised construction strategy.

–92.7% of the total budget has been allocated to operational lines in 2021, the remainder being allocated to support expenditure.

–The main actions focused on procurement activities included in the work programme for 2021 adopted in December 2020 and lastly amended in November 2021.

–Due to delays in the implementation of some actions at the end of 2021, the signature of three procurement procedures with a total value of EUR 123.7 million will occur in the beginning of 2022.

–The impact of COVID‑19 has been estimated to be a delay of up to 4 months, depending on the component. There is also a financial impact linked mainly to the additional sanitary measures that increase costs.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 857.1 | | 0 | Score 0: 864 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Percentage of completion of the obligations of all partners to the ITER construction | 48.81% | 8% | 100% in 2029 | 53.16% | Deserves attention |
| Percentage of completion of the EU obligations to the ITER construction | 43.20% | 5% | 100% in 2029 | 46.26% | Deserves attention |

(\*) % of target achieved by the end of 2021

–In 2021, the ITER project saw further progress. The manufacturing of the main components progressed well overall, with some notable exceptions (e.g. delays in the manufacturing and pre-assembly of vacuum vessel sectors). The construction of the main buildings was completed and the assembly of the experimental device has started.

–At the same time, the construction and assembly of ITER faced challenges due to COVID‑19-related restrictions, the delays in the delivery of certain components by ITER parties, the first-of-kind nature of the components to be delivered and the unparalleled complexity of assembly activities.

–Work towards achieving first plasma continues to advance, with the project execution at 75.8%. However, this is below the planned rate of 83.1%. As a result, it has become clear that the first plasma milestone set for 2025 can no longer be achieved.

–Both the completion of ITER construction (53.2%) and Euratom’s in-kind contribution (46.3%) were below their 2021 targets (75,7% and 72.0% respectively). While some catch up can be expected, the project will have to be rescheduled to establish a more realistic planning. The preparation of the baseline revision exercise has been accordingly started by the ITER Organization.

–Due its international nature, whereby Russia is one of the project partners, the ITER project will be impacted by the war in Ukraine. The question of the continuation of Russia’s participation is likely to be put on the table due to the expected difficulties for Russia to honour its commitments and the reputational risk for the project.

–Fusion can be a clean and virtually limitless energy source. The general potential of fusion is nowadays more widely recognised thanks to the strong advancement of fusion science in recent years: ITER is the biggest and most intensive fusion project of the EU, China, India, Japan, Russia, South Korea and the United States, and there are more than a dozen additional fusion research initiatives underway (e.g. a collaboration between the Massachusetts Institute of Technology and the start-up Commonwealth Fusion Systems, and other initiatives in Canada and the United Kingdom).

The European Commission will count ITER expenditure as 100% relevant to the achievement of the 30% climate spending target of the 2021-2027 multiannual financial framework. The climate contribution from the 2021 commitments was EUR 857.1 million.

2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK – ITER

The ITER-related EU action supports the construction and assembly of ITER, which will be the first experimental device to test the feasibility of fusion as a future source of energy.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 2 924.6 | | |  | | --- | | 2 926.4 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 2 392.7 | |  | |  | | --- | | 82% | |  | |

–The EU budget for the 2014-2020 period was fully implemented in commitments at the end of 2020. The payment plan for the outstanding commitments is aligned with the delivery plan: EUR 232.2 million for 2022 and EUR 150 million for 2023. The other remaining payments will materialise in the following years.

Performance assessment

–The ITER project has seen significant progress. The project advanced to the device’s assembly phase, and progress in the installation activities on the ITER site is noticeable. Uncertainties of the project have been reduced as the manufacturing of the important and technically complex first-of-kind components (cryostat and toroidal and poloidal field coils) proved to be feasible.

–The deficiencies identified at the beginning of the 2014-2020 period, such as the immaturity of the design, project management issues, and a lack of cooperation between the parties involved, were addressed in a major overhaul of the project and organisation in 2015.

–This overhaul improved the overall effectiveness of the project. A new schedule was approved in November 2016, stabilising the project and providing a realistic basis for its progress. However, the management and administration of this multinational project still poses significant challenges.

–On the other hand, due to the technical complexity of some components, their design, prototyping and final manufacturing will take longer than expected. This is especially the case for vacuum vessel sectors, most of which are to be delivered by the EU. The assembly work of the components faced unexpected welding issues that affected the schedule.

–In addition, the progress of the project has been impacted by the COVID‑19 pandemic. In December 2020 the governing board of the Fusion for Energy Joint Undertaking presented an estimated delay due to the pandemic of up to 4 months, depending on the component, which is further exacerbated by delays stemming from the complexity of the current assembly works and of the first-of-the-kind nature of many components. The combined effect of these factors results in delays to the expected start of operations (‘first plasma’), the extent of which is currently under assessment.

–ITER’s investment in technologies and discoveries for the future have the potential to ripple throughout the economy by supporting cutting-edge technologies in critical industries, creating new business and jobs, and attracting more students to science while laying the foundation for the generation of commercial electricity from fusion energy.

–A recent study estimated that the impact of ITER on the EU economy in gross added value was EUR 1.7 billion for the 2008-2019 period. Additionally, the total number of annual jobs directly or indirectly created by ITER reached nearly 29 500.

INVESTEU

INVESTEU PROGRAMME

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 1.5 million  small and medium-sized enterprises were supported between 2015 and 2021. | 12.7 million  jobs were sustained and supported between 2015 and 2021. | 0.5 million  affordable flats were built or renovated between 2015 and 2021. | 17.9 million  additional households were powered by renewable energy through investments in energy generation between 2015 and 2021. |
| 39.5 million  people benefited from better waste treatment between 2015 and 2021. | 20 million  additional households had access to high-speed internet between 2015 and 2021. | 23 million  people were covered by improved healthcare services between 2015 and 2021. | 478 million  passenger trips benefited from new or improved transport infrastructure between 2015 and 2021. |

(\*) Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

  

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 2 992.7 |
| NextGenerationEU | 6 074.0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0.0 |
| Total budget for 2021-2027 | 9 066.7 |

\* Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The InvestEU programme aims to ensure an additional boost to investments fostering recovery, resilience, green growth and employment in the EU over the 2021-2027 period. This goal will be achieved by mobilising public and private financing sources, in order to provide long-term funding and support to companies and projects in line with the EU priorities in the current economic and social crisis.

Challenge

The unprecedented domestic and global challenges that the world is currently facing have a significant impact on the EU economy. In order to pave the way to sustained and inclusive growth – while raising our global competitiveness, enhancing socioeconomic convergence and the cohesion of the EU, and advancing the digital and green transitions – the EU needs increased investment, including in innovation, digitisation, the efficient use of resources and upgrading of skills and infrastructure. This, in turn, will require expanding the supply and diversifying the sources of external funding for EU businesses.

EU intervention can add value by addressing market failures or sub-optimal investment situations (e.g. when, because of its public good nature, the full benefits of given investments cannot be captured by private agents, or the investment produces additional advantages beyond those flowing to the investing company or operator). Intervention can also help to reduce the investment gap in targeted sectors (e.g. in investments with a significant cross-border dimension or in sectors, countries, or regions where risk exceeds levels that private financial actors are able or willing to accept). Finally, EU-level intervention can ensure that a critical mass of resources can be leveraged to maximise the impact of investment on the ground.

By supporting projects that provide EU added value, InvestEU is complementary to Member State investments. In addition, InvestEU provides for economies of scale in the use of innovative financial products by catalysing private investment across the EU.

.

Mission

The mission of InvestEU is to support the EU’s policy objectives through financing and investment operations that contribute to:

–competitiveness, including research, innovation and digitisation;

–employment and growth, its sustainability and its environmental and climate dimension contributing to the achievement of the United Nations sustainable development goals, the objectives of the Paris climate agreement and the creation of high-quality jobs;

–social resilience, inclusiveness and innovation;

–the promotion of scientific and technological advances in culture, education and training;

–the integration of the EU’s capital markets and the strengthening of the single market, including solutions addressing capital market fragmentation, diversifying sources of financing for EU enterprises and promoting sustainable finance;

–the promotion of economic, social and territorial cohesion;

–a sustainable and inclusive recovery after the crisis caused by the COVID-19 pandemic, upholding and strengthening the EU’s strategic value chains and maintaining and reinforcing activities of strategic importance to the EU.

OBJECTIVES

InvestEU has the following specific objectives:

1.supporting financing and investment operations related to sustainable infrastructure;

2.supporting financing and investment operations related to research, innovation and digitisation;

3.increasing access to and the availability of finance for small and medium-sized enterprises and for small mid-cap companies and enhancing their global competitiveness;

4.increasing access to and the availability of microfinance and finance for social enterprises, to support financing and investment operations related to social investment, competences and skills, and to develop and consolidate social investment markets.

Actions

InvestEU provides EU guarantees to support eligible financing and investment operations carried out by the implementing partners. In addition, through the advisory hub, InvestEU provides advisory support for the development of viable projects and access to financing and related capacity-building assistance Moreover, the InvestEU portal increases the visibility of investment projects to a large network of investors worldwide.

Delivery mode

InvestEU is implemented in indirect management through the European Investment Bank Group and other implementing and advisory partners. DG Economic and Financial Affairs is in the lead for the Commission.

LINK TO THE 2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK

InvestEU is the successor of the Investment Plan for Europe. It consolidates nearly 30 financial instruments, budgetary guarantees and advisory initiatives under the 2014-2020 multiannual financial framework in various policy areas, in particular in infrastructure, research and innovation, small and medium-sized enterprises and social policy.

Impact assessment

The impact assessment accompanying the proposal for a regulation of the European Parliament and of the Council establishing the InvestEU is publicly available.

For further information please consult: https://europa.eu/!jV77BQ

WEBSITE FOR more information

<https://europa.eu/investeu>
 

Legal basis

Regulation (EU) No 2021/523 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 656.7 | 1 196.6 | 340.7 | 194.0 | 197.9 | 201.9 | 204.8 | 2 992.7 |
| NextGenerationEU | 1 783.0 | 1 818.0 | 2 471.0 | 0.5 | 0.5 | 0.5 | 0.5 | 6 074 |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 0.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0.0 |
| Total | 2 439.7 | 3 014.6 | 2 811.7 | 194.5 | 198.4 | 202.4 | 205.3 | 9 066.7 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming:  – 1.1 million (- 0%)  compared to the legal basis.\*

\* Top-ups pursuant to Art. 5 MFF Regulation are excluded from financial programming in this comparison.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 2 401.8 | | |  | | --- | | 9 066.7 | | |  | | --- | | 26% | |
| Payments | |  | | --- | | 265.2 | |  | |  | | --- | | 3% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 656.7 | 653.6 |
| Payments | 114.1 | 107.0 |

–The regulation establishing the InvestEU programme was adopted on 24 March 2021.

–Under InvestEU, the EU provides funding support through an EU budget guarantee of EUR 26.2 billion covering potential losses to the implementation partners.

–The budget guarantee is underpinned by an EU budget of EUR 10.46 billion, applying a guarantee provisioning rate of 40%.

–The guarantee agreement with the European Investment Bank Group (representing a 75% share of the EU budget guarantee) was signed in March 2022. The agreements with the other implementing partners are expected to be signed by the end of 2022.

–Negotiations with various Member States concerning contributions to the Member State compartment of InvestEU are ongoing.

–In 2021 the commitments included the provisioning of the Common Provisioning Fund (EUR 2.4 billion), from which future calls on the EU guarantee are to be paid. This amount includes EUR 637.6 million from the general budget, EUR 1.7 billion from Next Generation EU and EUR 36.3 million from predecessor financial instruments.

–In addition, in 2021 the following commitments were made: capital increase subscription of the European Investment Fund (EUR 372 million); costs related to the InvestEU portal, advisory hub and accompanying measures (EUR 18.1 million); and support expenditure (EUR 1.1 million).

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 722.1 | | 0 | Score 0\*: 655.7  Score 0: 1.0 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Investment mobilised | 0 | 0% | EUR 372 billion in 2027 | No results | No data |
| Multiplier effect achieved | 0 | 0% | 14 in 2027 | No results | No data |
| Investment supporting climate objectives | 0% | 0% | 30% in 2027 | No results | No data |
| Number of households and public and commercial premises with an improved energy consumption classification | 0 | 0% |  | No results | No data |
| Additional households, enterprises or public buildings with broadband access of at least 100 megabits per second upgradeable to gigabit speed, or the number of Wi-Fi hotspots created | 0 | 0% |  | No results | No data |
| Number of small and medium-sized enterprises supported | 0 | 0% |  | No results | No data |
| Number of engagements of the InvestEU advisory hub | 0 | 0% |  | No results | No data |
| Number of projects published on the InvestEU portal | 0 | 21% | 1 000 in 2027 | 205 out of 1 000 | On track |

(\*) % of target achieved by the end of 2021.

–The guarantee agreement with the European Investment Bank Group was signed in March 2022 and the guarantee agreements with other InvestEU implementing partners are to be signed at a later stage, therefore there is no information available yet on the performance of the InvestEU Fund for 2021.

–Measures have been taken to accelerate the financing of investments by implementing partners. These include the ‘warehousing’ of eligible financing and investment operations signed by the European Investment Bank Group before the signature of the guarantee agreement, along with the use of framework operations for projects that have similar characteristics. The same measures are available for the other implementing partners.

–Concerning the InvestEU advisory hub, the advisory agreement with the European Investment Bank was signed in March 2022. The negotiations with other advisory partners are ongoing and agreements are expected to be signed during 2022.

–The InvestEU portal website was launched on 21 April 2021. In 2021, 358 projects were received and 205 projects were published.

–In 2021, the InvestEU portal effectively collaborated with its partners and co-organised and participated in several events, including the European Angel Investment Summit, and a joint virtual e-pitching event on women entrepreneurship.

–Nonetheless, there are ongoing challenges of receiving new relevant projects for publication and new quality investor registrations on an ongoing basis. Further communication and promotional activities (e.g. participation in conferences/events and social media campaigns) are planned to achieve higher visibility of the InvestEU portal.

  

2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK – EUROPEAN FUND FOR STRATEGIC INVESTMENTS

The European Fund for Strategic Investments (EFSI), which is the predecessor of InvestEU, aimed at improving long-term economic growth and competitiveness in the EU by supporting strategic investments in key areas such as infrastructure, energy efficiency and renewable energy, research and innovation, environment, agriculture, digital technology, education, health and social projects. It also helped small businesses to start up, to grow and to expand by providing financing opportunities to economically viable projects.

Budget Implementation

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitment | |  | | --- | | 8 548.4 | | |  | | --- | | 8 548.5 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 8 137.7 | |  | |  | | --- | | 95% | |

–Under the EFSI, the EU provides funding support through an EU guarantee of EUR 26 billion covering potential losses to the European Investment Bank. Cumulative provisioning amounted to EUR 9.3 billion in commitments at the end of 2021. It comprises contributions from the EU budget and assigned revenues.

–As EFSI is a completion programme, no commitments from the general budget have been made since 2021. However, EUR 394.9 million was committed in 2021 stemming from assigned revenues from the EFSI programme and other financial instruments.

–The EFSI investment period for approvals of operations ended on 31 December 2020. Currently, the focus is on signing approved operations before the 31 December 2022 deadline for signatures.

–A total of EUR 234.5 million was called from the EU guarantee as at the end of 2021. However, due to the current economic situation and the implications of the pandemic and the Ukrainian crisis, an increase in the number and volume of future guarantee calls can be expected. EU guarantee coverage and operational monitoring will continue until the repayment of all supported financing and investment operations is complete.

–For the implementation of the European Investment Advisory Hub, annual specific grants agreements are being signed with the European Investment Bank to provide technical assistance to final beneficiaries aiming at developing a pipeline of investment projects. The 2020 specific grants agreement, signed in 2020 and amended in 2021, has an n + 3 implementation period.

–As regards the European Investment Project Portal, the EU’s online matchmaking platform, until the launch of the InvestEU portal on 21 April 2021, it continued to provide visibility to EU-based projects enabling investors to easily find investment opportunities in Europe.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Cumulative volume of investment mobilised under the EFSI (in billion EUR) | 0 | > 100% | 500 in 2020 | EUR 524 billion compared to a target of EUR 500 billion | Achieved |
| Multiplier effect | 0 | > 100% | 15 in 2020 | 15.7 compared to a target of 15.0 | Achieved |
| Share of EFSI financing under the infrastructure and innovation window (project components that contribute to climate action) | 0 | > 100% | 40% in 2020 | 43% compared to a target of 40% | Achieved |
| Projects for which European Investment Advisory Hub support has been requested | 0 | > 100% | 200 in 2020 | 433 projects compared to a target of 200 | Achieved |
| Number of projects published on the European Investment Project portal | 0 | > 100% | 500 in 2020 | 1 112 projects compared to a target of 500 | Achieved |

(\*) % of target achieved by the end of 2021.

–The EFSI is achieving its objectives as set in the regulation. It has supported investments by providing additional risk-bearing capacity to increase the volume of European Investment Bank Group financing and investment operations in priority areas. The EFSI has exceeded its target of unlocking EUR 500 billion in additional investment, and about 1.5 million small and medium-sized enterprises are expected to benefit from it.

–The EFSI provides EU added value by addressing market failures and by supporting riskier operations that could not otherwise have been carried out, or not to the same extent, by the European Investment Bank or under existing EU financial instruments.

–Following the outbreak of the COVID-19 pandemic the EFSI provided guarantees to unlock EUR 8 billion in available financing for businesses. Furthermore, the EFSI supported the German company BioNTech SE with EUR 100 million in debt financing for the development and manufacturing of its COVID-19 vaccine.

–The EFSI is on track to achieve the target of a total multiplier effect of investments worth 15 times the EU contribution.

–The European Investment Bank estimated that until 31 December 2021, the EFSI infrastructure and innovation window operations helped to sustain and support about 12.7 million jobs.

–As of the end of 2021, 43.6% of operations signed under the infrastructure and innovation window contributed to climate action – slightly surpassing the 40% objective – providing focused support for climate-related projects such as renewable energy and energy efficiency.

–In terms of geographical spread, all EU Member States have received financing supported by the EFSI. At the end of 2021, the share of the top three Member States (France, Italy and Spain) accounted for 49.4% of the signed EFSI financing and for 45.02% of investment mobilised by signatures under the infrastructure and innovation window. Both metrics are slightly above the indicative limit of 45%. It is expected that at end of the signature period (31 December 2022) the actual share will be close to 45%.

–After a ramp-up phase, the European Investment Advisory Hub provided essential advisory support for EU project promoters and the national promotional banks and institutions. As of the end of 2021, 1 044 requests were allocated for support from the hub, and 120 of the assignments could potentially benefit from the EFSI guarantee (representing an estimate of investment of more than EUR 15 billion under EFSI).

–Concerning the European Investment Project portal, as of 20 April 2021 (until the launch of its successor, the InvestEU portal), it provided 1 112 investment opportunities and more than 80 projects have received financing after being published on the portal.

CEF

CONNECTING EUROPE FACILITY

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 143  ultra-fast, fast and standard charging stations were deployed across the Netherlands, Belgium, Germany, Austria, Poland and Slovakia by the end of 2021. | 204 km  of double‑track railway line was equipped with the European rail traffic management system in Czechia by the end of 2021, improving safety and allowing for enhanced interoperability along the Baltic-Adriatic core network corridor. | 4 200 km  of trans-European transport network road were provided with harmonised and synchronised intelligent transport systems services by the end of 2021. | 12 430 MW  of electricity transmission capacity was added in 2021 through lines installed in Bulgaria, Estonia, France, Hungary, Slovakia, Norway and the United Kingdom. |
| 5.4 billion m3  per year of additional transmission capacity through gas pipelines was installed in Estonia, Croatia, Latvia, Hungary and Romania by the end of 2021. | 76 178  Wifi4EU access points were made available to European citizens through networks deployed by municipalities by the end of 2021. |  |  |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 33 108.8 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 33 108.8 |

(\*) Only Article  15(3) of the financial regulation.

Rationale and design of the programme

The Connecting Europe Facility (CEF) is a key EU funding instrument for boosting investments across the EU in transport, energy and digital infrastructure projects aiming at a greater connectivity between EU 
[Member States](https://en.wikipedia.org/wiki/Member_state_of_the_European_Union)
.

Challenge

To achieve smart, sustainable and inclusive growth, stimulate job creation and respect its long-term decarbonisation commitments, the EU needs to build an up-to-date, multimodal high-performance infrastructure to help connect and integrate the EU and all its regions in the transport, energy, and digital sectors. In order to complete the trans-European networks, support is needed – in particular to facilitate cross-border connections.

Mission

The acceleration of these investments benefits not only the countries directly affected, but the entire EU, as it enhances the single market as a whole and brings the whole EU closer to its sustainability objectives. For this reason, action at the EU level is warranted and can provide significant added value.

OBJECTIVES

The CEF has the following specific objectives.

In the transport sector:

–to contribute to the development of an efficient, interconnected and multimodal trans-European transport network and of infrastructure for smart, interoperable, sustainable, inclusive, accessible, safe and secure mobility;

–to adapt parts of the trans-European transport network infrastructure for dual use, improving both civilian and military mobility.

In the energy sector:

–to contribute to the further integration of an efficient and competitive internal energy market;

–to support the interoperability of networks across borders and sectors, and cross-border cooperation;

–to facilitate the decarbonisation of the economy by promoting energy efficiency and ensuring security of supply; and

–to facilitate cross-border cooperation in the area of renewable energy.

In the digital sector:

–to contribute to the deployment of safe and secure very high capacity digital networks and 5G systems;

–to support an increased resilience and capacity of the digital backbone networks on EU territories by linking them to neighbouring territories; and

–to foster the digitalisation of transport and energy networks.

Actions

The CEF has the general objective to build, develop, modernise and complete the trans-European networks, to contribute to the achievement of the 2030 climate and energy targets and to fulfil the EU’s long-term decarbonisation commitments on the European Green Deal, and thus contribute to smart, sustainable and inclusive growth and enhance territorial, social and economic cohesion.

For the transport sector, it plays a part in the development of projects of common interest relating to the completion of the trans-European transport network and its modernisation. It contributes to the sustainability of the transport sector through the creation of new and the upgrade of existing infrastructure, including telematics application, new technologies and innovation (namely alternative fuels), interoperability, road safety, infrastructure resilience, accessibility and security of transport., thus reflecting the priorities set in the sustainable and smart mobility strategy.

For the energy sector, the CEF contributes to the implementation of projects of common interest, highlighting the enabling role of cross-border energy infrastructure in the transition to climate neutrality, the integration of European energy markets and the interoperability of networks. Furthermore, the new category of cross-border projects in the field of renewable energy specifically contributes to a cost-effective target achievement for renewables by 2030 and is an integral element of the enabling framework for cooperation on renewables.

For the digital sector, CEF focuses on ensuring uninterrupted coverage with 5G systems along major transport paths, the deployment of new or significant upgrade of existing communication backbone networks, and the deployment of and access to very high capacity networks, including 5G.

Delivery mode

The CEF is implemented through direct management by the European Commission (the Directorate-General for Mobility and Transport, the Directorate-General for Energy and the Directorate‑General for Communications, Networks, Content and Technology are jointly in the lead). On an ad hoc basis and if justified, specific actions may be implemented through indirect management.

The programme is mostly implemented through executive agencies. The transport and energy strands are implemented by the European Climate, Infrastructure and Environment Executive Agency. The CEF digital programme is implemented through the Health and Digital Executive Agency. A small portion of the programme is delegated to external bodies such as the European High Performance Computing Joint Undertaking or the European Space Agency.

LINK TO THE 2014-2020 multiannual financial framework

For the transport and energy sectors, the CEF continues the successful work of its 2014-2020 multiannual financial framework predecessor, with a focus on new priority actions. For the digital strand, the CEF departs from the 2014-2020 CEF Telecom by being fully dedicated to supporting the deployment of high-performance digital communication infrastructures. While building on the experience gained with the previous programme, CEF Digital represents a step forward in terms of the scope, volume and intensity of the proposed EU support.

Impact assessment

The CEF impact assessment was carried out on 6 June 2018: 
[SWD(2018) 312](https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52018%20SC0312&from=EN)
.

WEBSITE FOR more information

<https://europa.eu/!Px98ju>

Legal basis

Regulation (EU) No 2021/1153 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 4 511.0 | 4 561.1 | 4 675.4 | 4 595.4 | 4 737.7 | 4 947.7 | 5 080.4 | 33 108.8 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 0.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0.0 |

(\*) Only Article 15(3) of the financial regulation.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 4 510.1 | | |  | | --- | | 33 108.8 | | |  | | --- | | 14% | |
| Payments | |  | | --- | | 18.5 | |  | |  | | --- | | 0% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 4 510.1 | 4 510.7 |
| Payments | 18.5 | 182.7 |

–Following the adoption of the first CEF Transport and CEF Energy multi-annual work programmes (referring to the 2021-2023 period) and the adoption of the first CEF digital multiannual work programme (referring to the 2021-2025 period), the first calls for proposals under the CEF programme (transport and energy) were launched in September 2021. No calls were launched for the digital sector in 2021 (first call in January 2022).

–For the transport sector, the 2021 commitment appropriations were allocated to the first set of 13 calls for proposals. The calls were very well received by the stakeholders, with more than 400 proposals submitted. The evaluation of these proposals is currently ongoing. As a consequence, no payment appropriations were used in 2021 in relation to calls.

–For the energy sector, two calls for proposals were launched using the 2021 commitment appropriations. For actions related to projects of common interest, a total of EUR 1.037 billion was allocated to five actions: three on electricity transmission (construction works), one on gas storage (construction works), and a study on CO2 transport. For actions related to cross-border cooperation on renewable energy, three proposals were submitted that are currently under evaluation. No payment appropriations were used in relation to calls.

–As the CEF digital multiannual work programme was adopted late in December 2021, the 2021 budget appropriations were globally committed and will be individualised in 2022. As a consequence, no payment appropriations were used in 2021 in relation to calls.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 4 193.8 | | 0 | Score 0\*: 4 510.1 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of cross-border and missing links addressed with the support of the CEF | 0 | 0% | 77 | 0 cross-border and missing links out of 77 | On track |
| Number of CEF-supported actions contributing to the digitalisation of transport, in particular through the deployment of the European rail traffic management system, the river information services, the intelligent transport systems, the vessel traffic management information system/e-maritime services and the single European sky ATM research programme | 0 | 0% | 200 | 0 actions out of 200 | On track |
| Number of alternative fuel supply points built or upgraded with the support of the CEF | 0 | 0% | 38 000 | 0 alternative fuel supply points out of 38 000 | On track |
| Number of transport infrastructure components adapted to civilian—military dual-use requirements | 0 | 0% | 140 | 0 components out of 140 | On track |
| Number of CEF actions contributing to projects interconnecting Member State networks and removing internal constraints | 0 | 0% | 95 | 0 actions out of 95 | On track |
| Number of CEF actions contributing to the improvement and digitalisation of grids and increasing energy storage capacity | 0 | 0% | 25 | 0 actions out of 25 | On track |
| Number of CEF actions contributing to the cost-efficient reaching of the target for EU-shared renewable energy sources on the basis of cross-border cooperation in the area of renewables | 0 | 0% | 48 | 0 actions out of 48 | On track |
| Number of CEF actions enabling 5G connectivity along transport paths | 0 | 0% | 46 | 0 actions out of 46 | On track |
| Number of actions enabling new connections to very high capacity networks | 0 | 0% | 50 | 0 actions out of 50 | On track |

(\*) % of target achieved by the end of 2021.

–The CEF 2021-2027 legal basis was adopted on 7 July 2021, later than expected. Despite the preparatory work initiated by the CEF’s parent DGs, the first multiannual work programmes could only be adopted in August 2021, and the 2021 call for proposals (for the transport and energy sectors) was only launched in September 2021.

–Considering the delayed adoption of the CEF 2021-2027 legal basis and the consequent delayed decisions on the respective multiannual work programmes and first calls for proposals, performance‑related information mostly covers the calls’ setup and, in some cases, some preliminary information about the ongoing evaluation procedures. First actions will be selected and begin to be implemented in 2022; they will show progress on each indicator fairly quickly.

Nevertheless, lessons learned from the previous programming period, for all three strands, regarding efficiency, transparency and effectiveness when implementing the programme, led to (1) an improvement of the predictability of the calls with the inclusion of an indicative timetable of calls and topics over a period of 3 years in the first work programmes; (2) a streamlined evaluation procedure with a common interpretation of the award criteria; (3) the use of corporate IT solutions for the management of the entire project life cycle through the newly adopted regulation and through inter-DG initiatives.

  

–

2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK – CEF

The CEF is a key EU funding instrument to promote jobs, growth and competitiveness through targeted infrastructure investment at the EU level. It supports the development of high-performance, sustainable and efficiently interconnected trans-European networks in the fields of transport, energy and digital services.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 29 860.5 | | |  | | --- | | 29 875.9 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 15 225.1 | |  | |  | | --- | | 51% | |

–The overall cumulative implementation rate in payment appropriations (51%) mirrors the specificity of the programme, where investments are mainly channelled towards complex infrastructure projects implemented over a considerably long time.

Transport:

–Regarding the transport sector, the overall reported financial progress by the end of 2021 is around 52% (compared to the expected 59% as specified in the latest grant agreements in force) and is the result of delays experienced during the projects’ implementation. Under the three specific objectives supported through the transport strand, the following issues were identified: public procurement issues, legal and environmental issues, technical and technological issues, project coordination issues and interdependency with other CEF or EU-funded projects. Furthermore, based on exchanges with the project promoters in 2021, COVID‑19 has further affected the implementation of some CEF-supported actions.

–In addition, the related actions are usually characterised by long implementation periods, as they mostly refer to works for large and technically complex transport infrastructure projects. In this framework, and to reduce risks, payments are disbursed during the entire project life cycle and only upon acceptance of eligible costs incurred by the beneficiaries during the project’s reporting period.

–In order to mitigate the impact of these issues, the Commission, in strong cooperation with the European Climate, Infrastructure and Environment Executive Agency, has taken a series of measures. These include a close monitoring of CEF actions, providing for an optimal use of EU-funding. In particular, the agreement reached with beneficiaries for the inclusion of specific monitoring milestones for the grant agreements that still include tasks within the critical path of the project has allowed to re-allocate unused funds to other mature projects as a result of the last CEF Transport call for proposals in 2021.

–Furthermore, the European Climate, Infrastructure and Environment Executive Agency continues to implement its monitoring tools through the assessment of reports, site visits and follow-up meetings with CEF beneficiaries, ensuring a thorough assessment and identifying the actions for which amendments are needed.

–Regarding CEF Financial instruments, in the transport sector, despite the delays in investment decisions due to COVID‑19, two new operations were signed in 2021, leveraging total investments of around EUR 670 million. These operations consist of the deployment of battery trains and the greening of airport infrastructure.

Energy:

–The implementation rate of 34% for CEF Energy is lower compared to the overall CEF implementation. This is due to several large multiannual actions with long lead times due to their very complex nature and delays linked notably to the need to secure sufficient co-funding (national or other sources), public procurement issues (e.g. complaints/appeals during tender procedures) and legal and environmental issues (e.g. permitting, spatial planning, other authorisations and land acquisition). The COVID‑19 sanitary crisis has also led to additional delays for some actions, for example the need to reschedule public consultations resulting in permitting procedures that are longer than expected. Some of these projects may only be completed by 2025.

–The total payments consist of around 76% of interim and final payments, and 24% of first and further pre-financings.

–The Commission can closely monitor the progress of the projects of common interest and the implementation of the projects of common interest, first through a provision in the grant agreements that requires project promoters to regularly submit an action status report to the European Climate, Infrastructure and Environment Executive Agency. These action status reports provide an overview of the technical and financial progress of the action. In addition, projects of common interest are subject to yearly monitoring by national competent authorities and the Agency for the Cooperation of Energy Regulators pursuant to Article 5 of the trans-European networks for energy regulation.

Telecom:

–Regarding CEF Telecom, the implementation rate of 73% is above the average of the overall CEF implementation.

–Also in 2021, through the CEF debt instrument, the European Investment Bank signed a loan agreement with a project promoter for fibre rollout for a total amount of EUR 100 million, of which EUR 70 million is guaranteed by the Commission. The project costs are estimated at EUR 241 million and the European Investment Bank has estimated that, upon completion of the project in Slovenia in 2023, an additional 225 000 households (about 25% of the country) will have access to very high capacity networks.

–CEF Telecom also invested in the equity financial instrument Connecting Europe Broadband Fund, together with the European Investment Bank, three national promotional and institutional banks and private investors. In June 2021, the fund has attracted EUR 165 million private equity investments, for a total fundraising of EUR 555 million, well above the minimum capital of EUR 500 million set at creation time for the fund.

–From 2014 to 2020, CEF Telecom supported the deployment of an ecosystem of trusted cross-border digital service infrastructures (\*) that are essential to triggering the digital transformation of public sector services in the Member States, all for the benefit of citizens and businesses.

–With an overall investment of just under EUR 280 million in the core service platforms, the Commission enabled the EU-wide interoperability of specific digital services such as eHealth, public open data, e identification and cybersecurity. With an EU contribution of almost EUR 365 million in generic services and an overall leveraged amount of more than EUR 528 million, the uptake of these services with CEF support reached a portfolio of 735 projects in the Member States and participating countries in the European Economic Area by the end of 2021. The last grant agreements under CEF Telecom were signed in 2021. Nearly half of the total portfolio of projects are under implementation due to the duration of the actions funded by the programme, which go up to 4 years. CEF digital services support EU citizens, businesses and public administrations in interconnecting and adapting their systems to become interoperable across borders.

(\*) Europeana, e-identification, e-signature, e-delivery, e-invoicing, e-archiving, public open data, automated translation, cybersecurity, eProcurement, business registers interconnection system, eHealth, electronic exchange of social security information, the European e-Justice portal, European digital media observatory, European platform on digital skills and jobs, online dispute resolution, safer internet, EU student e-card and blockchain.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| CEF Transport – lines in service equipped with the European railway traffic management system | 0 | Progress from actual results: 4%  Progress from estimated values: 6% | 5 971 in 2024 | 234 km (estimated value: 331 km) out of 5 861 km | Moderate progress |
| CEF Transport – number of supply points for alternative fuels | 0 | Progress from actual results: 6%  Progress from estimated values: 8% | 20 757 in 2024 | 1 259 (estimated value: 1 718) out of 20 969 | Moderate progress |
| CEF Energy – system resilience – number of Member States | 3 | 89% | 22 in 2020 | 20 out of 22 | On track |
| Number of operational free Wi-Fi access points supported by CEF | 0 | 80% | 90 000 in 2023 | 71 800 out of 90 000 | On track |

(\*) 2021 actual results, as a % of the target.

NB: Estimated values represent project results to be completed by 2020 based on the contractual delivery dates in the signed grant agreement – see explanation below under ‘Performance assessment’.

Transport:

–The 1 036 actions signed within the CEF transport 2014-2020 received more than EUR 23 billion and triggered more than EUR 50 billion of private and public investments. These have strongly contributed to paving the way for the achievement of the key trans-European transport network and wider EU policy objectives addressing the removal of bottlenecks and enhancing interoperability, ensuring sustainable and efficient transport systems, and optimising the integration and interconnection of transport modes.

–In particular, CEF has been one of the front-running EU spending programmes supporting the sustainable and digital transitions. In line with the European Green Deal, transport investments for infrastructures strongly contributed to climate objectives, feeding the EU long-term decarbonisation commitments. Around 80% of the CEF support has been allocated to the rail and inland waterways sectors and to the acceleration of the deployment of alternative fuels infrastructure, fostering a new mobility paradigm. Moreover, data and digital infrastructure have received targeted support, enhancing the deployment of digital solutions for all transport modes and backing the ecological transition for all sectors, including for transport.

–Regarding the performance of CEF Transport, it is important to recall that there is a time lag of approximately 1.5 year between the actual completion of a project and the registration of results, corresponding to the time required to close the projects. In addition, external factors such as the COVID‑19 pandemic have delayed the implementation of the projects generating a situation where the majority of the CEF Transport actions from past 2014-2020 calls for proposals are still ongoing and will run until end of 2024. Their results (outputs triggering performance data) can be achieved up to end of 2024 and related information for financial closure can be received until mid-2026. In this framework it is considered that the potential for the achievement of the indicated targets is still there.

Energy:

–During the 2014-2021 period, CEF Energy co-funding of a total of EUR 4.672 billion was allocated to 149 actions contributing to 107 projects of common interest. By the end of 2021, 93 actions that received CEF support were completed in total, i.e. 46 on electricity and storage, 45 on gas, one on smart grids and one on CO2, of which 85 were studies and 8 works.

–The success of the numerous actions of the projects of common interest and their contribution to the policy objectives of the trans-European networks for energy strategy is not yet fully reflected in the indicators due to the long implementation time of the grants for large and technically complex energy infrastructure projects. In addition, delays have occurred because of external factors such as the COVID‑19 sanitary crisis, the need to secure sufficient co-funding (national or other sources), public procurement issues (e.g. complaints/appeals during tender procedures) and legal and environmental issues (e.g. permitting, spatial planning, other authorisations and land acquisition).

–Nevertheless, CEF Energy-funded actions have significantly contributed to the integration of the EU energy market through the strengthening of cross-border connections aiming to end energy isolation and eliminate bottlenecks. CEF Energy also supports projects that increase security of supply in Member States where this issue is most pressing.

Telecom:

–To date, the Connecting Europe Broadband Fund has invested in eight companies across Europe and raised the targeted funds from private investors to EUR 555 million by June 2021.

–Regarding WiFi4EU for the 2018-2020 period, more than 8 800 vouchers were awarded through the programme. Despite the pandemic, the network installations are steadily increasing, and exceeded expectations by reaching more than 7 000 in the last quarter of 2021.

DEP

DIGITAL EUROPE PROGRAMME

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 54  actions that focus on developing digital solutions in the interoperability area were supported under the 2016-2020 ISA2 programme. | 2  EU-wide initiatives supported by the 2016-2020 ISA2 programme aim at an integrated interoperability approach in the EU (i.e. the European interoperability framework and digital public administration). | 1344  EU initiatives were screened between 2016 and 2021 for potential information and communications technology and interoperability impact using the legal interoperability screening methodology under the 2016-2020 ISA2 programme. | 508  events were organised or participated in by the 2016-2020 ISA² programme to increase its outreach (by 2021). |
| 20  trusted cross-border digital service infrastructures were deployed under the 2014-2020 CEF Telecom. These were essential to trigger the digital transformation of public sector services in the Member States. | 80  calls for grants were launched under the 2014-2020 CEF Telecom, mobilising stakeholders in all Member States and countries associated with the European Free Trade Association for the deployment of digital service infrastructures. | 735  actions were funded under the 2014-2020 CEF Telecom to promote the uptake of an ecosystem of 20 digital service infrastructures that are fully interoperable across the EU for citizens, businesses and public administrations. |  |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 6 577.3 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 30.5 |
| Total budget for 2021-2027 | 6 607.8 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The Digital Europe Programme is a new EU funding programme focused on bringing digital technology to businesses, citizens and public administrations. It will provide strategic funding to face challenges in the area of digital technology and infrastructure, supporting projects in five key capacity areas: supercomputing, artificial intelligence, cybersecurity, advanced digital skills and the wide use of digital technologies across the economy and society, including through digital innovation hubs.

Challenges

·The global competition to control digital technologies forces the European businesses, public sector and researchers to access the computing, data or artificial intelligence resources they need outside the EU.

·Meanwhile, hundreds of thousands of jobs in crucial digital areas go unfilled, hampering investment and innovation. Moreover, unless the EU improves its cybersecurity capabilities, its vital infrastructure and data are at risk.

·The uptake of digital technologies by European businesses, small and medium-sized enterprises and public administrations is very uneven. Unless the EU develops key digital capabilities, industries and skills, its open strategic autonomy and competitiveness are at stake.

Given the network effects of digitalisation (e.g. the need to promote EU interoperability and to reach critical mass in building state-of-the-art capacities), decisive action at the EU level is needed, with co-investments from Member States and the private sector.

Mission

To support the digital transformation of the European economy and society, focusing on:

–building essential capacities and advanced skills in key digital technologies, contributing to the EU’s open strategic autonomy;

–accelerating their deployment and making the best use of them in areas of public interest and the private sector.

OBJECTIVES

–To make the EU a world leader in high-performance computing, which will contribute to raising its scientific potential and industrial competitiveness.

–To build federated, trusted European cloud-to-edge infrastructure and services, which, together with the deployment of an ecosystem of European data spaces, will boost the deployment of artificial intelligence-based solutions in critical areas like climate change and health.

–To invest in cybersecurity to ensure the resilience, integrity and trustworthiness of EU critical networks, infrastructures and services.

–To foster advanced digital skills in key technologies supported by the programme.

–To widen the adoption and best use of key digital technologies and interoperability solutions to make the EU more competitive and address major societal challenges.

Actions

·High-performance computing. Deploying world-class exascale, post-exascale supercomputing and quantum computing capacities to ensure the widest access to and use of these capacities.

·Artificial intelligence. Deploying EU-wide common data spaces based on a cloud-to-edge federated infrastructure and promoting the testing and adoption of artificial intelligence-based solutions.

·Cybersecurity. Building up advanced cybersecurity capabilities (including a quantum secure communication infrastructure for Europe), promoting the sharing of best practices and ensuring a wide deployment of the state-of-the-art cybersecurity solutions across the European economy.

·Advanced digital skills. Boosting academic excellence by increasing the education and training offer in key digital technologies, such as high-performance computing, cybersecurity and artificial intelligence.

·Adoption and best use of key digital technologies. Deploying a network of European digital innovation hubs supporting the digital transformation of European public and private organisations, addressing key societal challenges (e.g. environment and climate change) via high-impact deployments and reinforcing the European blockchain capacities and the digital transformation of public administrations and services through interoperability solutions while promoting an inclusive and trustworthy digital space.

Delivery mode

Actions focused on the cloud, data, artificial intelligence, quantum communication infrastructure, advanced digital skills and spreading the best use of digital technologies (including the network of digital innovation hHubs) are directly managed by the European Commission with the support in some of these areas from the Executive Agency for Health and Digitalisation (HaDEA). The HPC actions are implemented primarily through the EuroHPC joint undertaking. Cybersecurity actions are implemented primarily through the European Cybersecurity Industrial, Technology and Research Competence Centre and the Cybersecurity Competence Network. The lead DG is DG CNECT.

LINK TO THE 2014-2020 MFF

Although Digital Europe is a new programme, some of its activities build on the achievements of selected actions deployed in the previous Multiannual Financial Framework under CEF Telecom and ISA2 (supporting the interoperability of the European public administrations). The programme also builds on results from the Horizon 2020 programme, making it possible to move technologies such as HPC and Artificial Intelligence into large-scale deployments.

Impact assessment

The impact assessment for the Digital Europe Programme was carried out in 2018.  

For further information please consult: https://europa.eu/!BJ66th

WEBSITE FOR more information

<https://europa.eu/!pQ93Fc>

Legal Basis

Regulation (EU) 2021/694 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 1 130.5 | 1 247.8 | 1 023.6 | 684.7 | 727.8 | 871.6 | 891.4 | 6 577.3 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 30.5 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 30.5 |
| Total | 1 161.0 | 1 247.8 | 1 023.6 | 684.7 | 727.8 | 871.6 | 891.4 | 6 607.8 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: - EUR 1 010.7 million (- 13%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 1 159.6 | | |  | | --- | | 6 607.8 | | |  | | --- | | 18% | |
| Payments | |  | | --- | | 26.1 | |  | |  | | --- | | 0% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 1 129.1 | 1 129.6 |
| Payments | 23.8 | 104.8 |

–The first work programme of the Digital Europe Programme was adopted in November 2021. The programme consumed an important share of the available commitment appropriations. However, given the very short window left in 2021, the cumulative implementation rate in terms of payments was very low (about 0.3%).

–The first set of calls for proposals was published soon after the adoption of the first work programme, in November 2021. A second call was launched in February 2022, using both 2021 and 2022 appropriations. Both calls covered topics in all work strands of the programme. These include the first steps towards the deployment of common data spaces built on innovative, secure and energy efficient cloud-to-edge capabilities, and the promotion of testing and the adoption of trustful artificial intelligence technologies with world-class testing and experimentation facilities. Investments in the area of cybersecurity cover the deployment of a secure quantum communication infrastructure (EuroQCI), a network of national coordination centres with Member States fostering cross-border cooperation and support for cybersecurity in the health sector. The calls launched also aim to provide education and training opportunities for the future experts in key capacity areas deployed by the programme.

–Additional investments covered by these calls also target the establishment of the network of digital innovation hubs, the deployment of the European blockchain service infrastructure, support to the implementation of the European digital identity framework, the continuation of the investments in the previous financial framework for the safer internet network and the European digital media observatory and its network of hubs.

–Following the signature of contribution agreements on the implementation framework for the ‘destination Earth’ initiative, the actions to deploy the open core platform and first digital twins will also start in 2022.

–Various procurement actions have started implementation in continuity with the previous multiannual financial framework, especially in the area of e-government and interoperability. For instance, the implementation of the first contracts focusing on interoperability-related operational objectives is ongoing. As the interoperability package for 2021 and 2022 builds on the work carried out under the predecessor programmes ISA2 and CEF Telecom, priority was given to the projects/actions that require business continuity.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 35.96 | | 0 | Score 0\*: 1 130 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| High-performance computing infrastructures jointly procured | 7 | 0% | 12 in 2022 | 7 compared to a target of 12 | On track |
| Co-investment in sites for experimentation and testing | 0 | 0% | 275 million in 2027 | 0 compared to a target of 275 million | On track |
| Usage of common European libraries or interfaces to libraries of algorithms, usage of common European data spaces and usage of sites for experimentation and testing related to activities under this regulation | 0 | 0% | 700 in 2030 | 0 compared to a target of 700 | On track |
| Users and communities getting access to European cybersecurity facilities | 0 | 0% | 300 in 2028 | 0 compared to target of 300 | On track |
| Persons who have received training to acquire advanced digital skills | 0 | 0% | 133 600 in 2027 | 0 compared to a target of 133 600 | On track |
| People reporting an improved employment situation after the end of the training supported by the programme | 0 | 0% | 66 800 in 2027 | 0 compared to a target of 66 800 | On track |
| Extent of alignment of the national interoperability framework with the European interoperability framework | 3.750 | 0% | 3.775 in 2025 | 3.750 compared to a target of 3.775 | Moderate progress |
| Businesses and public sector entities that have used the European digital innovation hubs’ services | 0 | 0% | 57 600 in 2027 | 0 compared to a target of 57 600 | On track |

(\*) % of target achieved by the end of 2021.

-As the work programme was only adopted in November 2021 and the actions are only starting to be implemented, it is too early to carry out a performance assessment for the programme.

2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK – ISA2

The ISA² programme supported the development of digital solutions that enable public administrations, businesses and citizens in Europe to benefit from interoperable cross-border and cross-sector public services.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 131.2 | | |  | | --- | | 131.2 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 123.5 | |  | |  | | --- | | 94% | |

–The implementation of some actions funded by the 2016-2020 ISA2 programme carried into 2021, focusing on the transition to the Digital Europe Programme and on sustaining existing operations due to the late adoption of the Digital Europe 2021-2022 working programme in November 2021.

–As for the 2021 payments (just under EUR 25 million), they were used to cover the payments for all the actions under the 2020 work programme, with a notable portion spent on the development of key and generic interoperability enablers, support of instruments for public administrations and EU policies.

–The implementation of the programme was efficient, consuming 100% of its available commitment appropriations and 94% of the available payment appropriations. The outstanding payments will be executed mainly in 2022, with the final payments done in 2023.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Key interoperability enablers | 3 | > 100% | 10 in 2020 | 11 compared to a target of 10 | Achieved |
| Supporting instruments for public administration | 4 | 100% | 13 in 2020 | 13 compared to a target of 13 | Achieved |

(\*) % of target achieved by the end of 2020.

–The programme’s key performance indicators confirm that it has performed well. Some key interoperability enablers have shown even better performance that expected, which is explained by better-than-anticipated government interoperability acceptance and by faster-than-expected technological progress. Member States’ positions have evolved from being hesitant to being very actively involved and requesting intensified common investment in interoperability enablers.

–In 2020 and 2021 the programme was able to adapt to the COVID‑19 crisis with no major negative impact on the programme implementation. In fact, the outreach of the programme increased due to larger stakeholder participation in online meetings and events, which may potentially boost the 
[ISA2 solutions’](https://ec.europa.eu/isa2/solutions_en)
 uptake. Based on this experience, more online interoperability–focused events for the stakeholders of the new programme are envisaged.

–As raised during the final evaluation of the ISA2 programme, more coordination and exchange of best practices between Member States in the digital implementation of EU policies is needed, as well as the deployment of new digital solutions. To reflect this issue, the two past components of the Digital Europe Programme, the ISA2 programme and the CEF Telecom, have been integrated into one single programme to achieve better synergy in this area and to offer more coordinated and targeted actions.

–ISA2 has increased its outreach to all levels of public administration and business, focusing on small and medium-sized enterprises and start-ups. To expand the role of interoperability, the Directorate-General for Informatics and the Directorate‑General for Communications Networks, Content and Technology have jointly developed a dedicated European interoperability framework for smart cities and communities as part of the Living-in.eu movement. In 2020, the interoperability academy went online as part of the EU academy (the Commission’s e-learning platform for external stakeholders). So far, 1 400 people have participated in online courses, webinars and live events organised by the interoperability academy, focusing on interoperability knowledge, skills and competences. A total of 15 e‑learning resources on interoperability-related topics have been made available on the EU platform. The action on European interoperability architecture has closely cooperated with the Directorate-General for Structural Reform Support, the Directorate-General for Health and Food Safety and the Directorate-General for Taxation and Customs Union to support Member States, especially those lagging behind, in their digitalisation efforts. This cooperation also included Reform and resilience plans to make them ‘interoperable by design’ and the development of national taxation and health public health services.

–The ISA2 programme has also intensified its cooperation with other EU programmes and projects such as the Connecting Europe Facility (CEF), the Structural reforms programme (SRSP) and Horizon 2020, along with their successor programmes (e.g. the Technical Support Instrument). This includes organising joint events, sharing results and content, providing advice and support, and identifying synergies between Member States’ requests under the 2020 structural reforms programme and the 2021 Technical Support Instrument programme and ISA² actions. ISA2 solutions have provided direct support to several EU initiatives, i.e. the single digital gateway, the EU business registers interconnection system and the ‘once-only’ principle project. For example, the core vocabularies have provided the basis for the data models, which will be made available in the semantic repository of the single digital gateway and the repository of links.

  

2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK – CEF Telecom

CEF Telecom supported from 2014 to 2020 the deployment of an ecosystem of trusted cross-border digital service infrastructures
[4](#footnote5)
 that are essential to triggering the digital transformation of public sector services in the Member States, all for the benefit of citizens and businesses.

Budget

–With an overall investment of just under EUR 280 million in the core service platforms, the Commission enabled the EU-wide interoperability of specific digital services such as eHealth, public open data, e‑identification and cybersecurity. With an EU contribution of almost EUR 365 million in generic services and an overall leveraged amount of more than EUR 528 million, the uptake of these services with CEF support reached a portfolio of 735 projects in the Member States and participating countries in the European Economic Area by the end of 2021. The last grant agreements under CEF Telecom were signed in 2021. Nearly half of the total portfolio of projects are under implementation due to the duration of the actions funded by the programme, which go up to 4 years. CEF digital services support EU citizens, businesses and public administrations in interconnecting and adapting their systems to become interoperable across borders.

–The cumulative implementation table for CEF Telecom can be found in the CEF programme statement.

Performance assessment

–The deployment of the digital service infrastructures has been marked by a considerable expansion of the ecosystem, going from eight digital service infrastructures in the first working programme to 20 in the last one. As a matter of fact, the programme started supporting interoperability in a limited set of areas such as e-government, cybersecurity and the cultural sector. Over the years, the programme started enabling, through various solutions, interoperability in other areas such as health, justice, social security, education and skills, to name a few.

–The digital service infrastructures implemented under CEF Telecom contribute to EU preparedness to deal with cyberthreats and incidents, encompassing the need for well-resourced Member State computer security incident response teams and swift and effective operational cooperation between them. Their operational cooperation is facilitated by interacting with the core service platform co-operation mechanism of the cybersecurity digital service infrastructures, MeliCERTes, which supports information sharing, facilitates a shared understanding of artefacts, threats and incidents, provides secure communications and enhances the exchange of data between them. As from 2019, an additional cooperation mechanism to facilitate the creation of European-level information sharing and analysis centres has been set up.

–Another example is the eHealth digital service infrastructure, which facilitates the movement of health data across national borders, ensuring the continuity of care and the safety of citizens seeking healthcare outside their home country, and enabling the pooling of EU-wide medical expertise to treat rare diseases. To date, 117 projects for eHealth have been deployed in all Member States with an overall funding of EUR 29 million.

–An overview of the performance of the actions deployed with the support of the CEF Telecommunications programme is available 
[here](https://ec.europa.eu/cefdigital/wiki/display/CEFDIGITAL/Dashboards)
. This data will feed into the ex post evaluation of the programme.

SINGLE MARKET PROGRAMME

PROGRAMME FOR SINGLE MARKET, COMPETITIVENESS OF ENTERPRISES, INCLUDING SMALL AND MEDIUM-SIZED ENTERPRISES, AND EUROPEAN STATISTICS
   

Concrete examples of achievements

|  |  |  |  |
| --- | --- | --- | --- |
| 99%  of the IFRS standards endorsed in the EU in 2021. | 53  position papers and responses to public consultations in the field of financial services were produced in 2021 | 2 000  notifications are received every year (on average) through Safety Gate – the rapid alert system for dangerous non-food products. | 0  cases of lumpy skin disease have been reported since 2017. |
| 790 000  SMEs in 35 countries have received financing from the Loan Guarantee Facility since the start of 2021. |  |  |  |

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 4 241.4 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 24.6 |
| Total budget for 2021-2027 | 4 266.1 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The single market programme will improve the functioning of the internal market and help protect and empower citizens, consumers and businesses, including small and medium-sized enterprises (SMEs). The programme will support the design, implementation and enforcement of EU legislation underpinning the proper functioning of the single market for goods and services. It will also assist the digitalisation of services and business operations and facilitate market access and international cooperation, especially in the areas of company law, contract and extra-contractual law, anti-money laundering, free movement of capital, financial services and competition, for the plants, animals, food and feed sector. Overarching and contributing to all areas, the programme will support the development, production and dissemination of European statistics on all EU policies.

Challenge

The single market is at the heart of the European project, enabling citizens to live, work and travel wherever they wish and offering consumers protection, safety and greater choice at lower prices. But a properly functioning single market is not a given. It has yet to materialise in a number of areas, and in others the benefits could be more substantial.

A properly functioning single market will be crucial for Europe’s recovery from the COVID-19 crisis, and in helping the green and digital transitions of all of Europe’s industrial ecosystems. This requires carefully designed, implemented and enforced EU legislation in all sectors, including financial services, anti-money laundering, the free movement of capital, consumer protection and human, animal and plant health. Strengthened governance of the single market is essential, as is the efficient and effective coordination of joint action between Member States and the Commission.

In all these areas, action at the EU level is essential to properly address cross-border issues, ensure adequate coordination of interventions and advance towards common EU goals.

Mission

The single market programme aims to: (1) help ensure a properly functioning single market for goods and services, with fit-for-purpose legislation, including in the areas of financial services, anti-money laundering, free movement of capital, protection of consumers and animal and plant health; (2) provide high-quality statistics on all EU policies; and (3) coordinate capacity building for joint actions between the Commission and Member States.

OBJECTIVES

The programme has the following specific objectives:

–making the internal market work better including through improved market surveillance;

–improving the competitiveness and sustainability of businesses, especially SMEs;

–increasing standardisation, including by supporting the development of high-quality financial and non-financial reporting and auditing standards;

–ensuring a high level of consumer protection and product safety, and promoting the interests of consumers, including in financial services;

–contributing to a high level of health for humans, animals and plants throughout the food chain; and

–producing and communicating high-quality statistics on Europe.

Actions

The programme’s main activities include:

–data gathering and analysis in support of the effective enforcement and modernisation of the EU’s legal framework;

–studies and evaluations;

–capacity-building activities and the facilitation of joint actions between Member States, their competent authorities, the Commission and the decentralised EU agencies;

–financing mechanisms allowing individuals, consumers and business representatives to contribute to decision-making processes;

–support for projects, tools and services to identify and address specific challenges for competitiveness and sustainability faced by businesses and industrial ecosystems; and

–strengthening the exchange and dissemination of expertise and knowledge.

The programme will particularly support, through targeted actions, improved competitiveness and sustainability (notably of SMEs); financial stability and the free movement of capital; European standards for goods and services; the development and oversight of financial and non-financial reporting; the development, production and dissemination of European statistics; and emergency measures along the food chain and for the protection of human, animal and plant health.

Delivery mode

The single market programme will mainly be implemented under direct management by the Commission (the participating directorates-general are DG Internal Market, Industry, Entrepreneurship and SMEs, DG Competition, DG Financial Stability, Financial Services and Capital Markets Union, DG Taxation and Customs Union, DG Health and Food Safety, DG Justice and Consumers and Eurostat).

Two executive agencies will implement parts of the programme, namely the European Health and Digital Executive Agency (for activities concerning protecting the health of humans, animals and plants along the food chain and supporting the welfare of animals) and the European Innovation Council and SMEs Executive Agency (for activities concerning the competitiveness of businesses and SMEs, and some of the actions linked to standardisation and promoting the interests of consumers).

LINK TO THE 2014-2020 multiannual financial framework

The single market programme brings together six predecessor programmes from various policy areas, notably the grants and contracts part of the programme for the competitiveness of enterprises and small and medium-sized enterprises (COSME); programmes on consumer protection; consumers and end users in financial services; specific activities in the field of developing financial reporting and auditing standards; measures to contribute to a high level of health for humans, animals and plants along the food chain and in related areas; and European statistics. It also integrates a number of former prerogative budget lines. Drawing from the lessons of the impact assessment, this integrated set-up is expected to constitute a more flexible and agile financing framework, which will allow the exploitation of synergies, the prevention of duplication and fragmentation, and prioritisation to be improved across all 14 ecosystems.

Impact assessment

The 
[impact assessment](https://europa.eu/!YY36cb)
 of the single market programme was carried out in June 2018.

WEBSITE FOR more information

[Single market programme](https://eismea.ec.europa.eu/programmes/single-market-programme_en)

Legal basis

Regulation (EU) 2021/690 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 583.1 | 613.5 | 592.8 | 601.5 | 610.2 | 619.7 | 620.6 | 4 241.4 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 24.6 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 24.6 |
| Total | 607.8 | 613.5 | 592.8 | 601.5 | 610.2 | 619.7 | 620.6 | 4 266.1 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + EUR 33.4million (+ 1%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 596.0 | | |  | | --- | | 4 266.1 | | |  | | --- | | 14% | |
| Payments | |  | | --- | | 86.0 | |  | |  | | --- | | 2% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 582.5 | 575.0 |
| Payments | 83.8 | 131.6 |

–The legal basis of the single market programme was adopted by the European Parliament and the Council in April 2021. The work programme for the full single market programme and the 2021 financing decision were adopted in May 2021. The 2022 work programme was adopted in February 2022.

–In 2021, the SMEs objective had a voted budget of EUR 117 443 450. This budget was fully committed, and two multiannual calls were launched, for the Enterprise Europe Network in May and the Joint Cluster Initiative in September. The December cut-off for the Enterprise Europe Network concluded with 32 proposals intended to cover those EU Member States where coverage was not achieved at the first cut-off date for this call. The evaluations of these proposals are ongoing. Other calls, such as the social economy and local green deals call, were published in the autumn or planned for January/February 2022. The tourism call ‘COVID-19 – Recovery through sustainable tourism growth and SME support’, for just over EUR 12 million, was published in December 2021, and will be followed in 2022 with a second call, for EUR 20.5 million, that will provide much-needed additional support for building sustainability and resilience in the tourism sector.

–For the financial and non-financial reporting and auditing standards objective, in 2021 grants totalling EUR 8 078 058 in commitment appropriations were awarded to the three beneficiaries – identified in the regulation – supporting the development of high-quality financial and non-financial reporting and auditing standards. Commitment appropriations not needed for 2021 have been reprogrammed for later years.

–For the objective of enhancing consumers’ involvement in EU policymaking in the field of financial services, grants totalling EUR 1 496 375 in commitment appropriations were awarded in 2021 to the two beneficiaries – identified in the regulation establishing the single market – for their actions supporting consumers and other end users of financial services.

–For the consumer protection and product safety objective, six calls / invitations to submit proposals were launched in 2021. The calls covered such areas as offering assistance to consumers in Member States in the form of alternative dispute resolution; promoting stable debt advice services; supporting joint actions by the European consumer centres; cooperation between national authorities responsible for the enforcement of consumer protection law; support for the activities of Member State authorities participating in EU consumer policy; and support for the activities of the consumer organisation at the EU level (the European Consumer Organisation). In total, 80 proposals were submitted from 29 countries, including EU Member States, Norway and Iceland.

–A total budget of around EUR 230 million in commitment appropriations was implemented in the food strand in 2021, with a great focus on veterinary programmes (46.5% of the budget).

–In the domain of European statistics, the EUR 74 million in commitment appropriations from the 2021 budget were fully implemented, supporting calls for proposals, tenders and other action. Due to the delay in the adoption of the legal basis, along with the financial decision and the work programme, certain agreements could not be finalised within the year, and consequently EUR 0.8 million in payment credits initially planned to provide advance payments to beneficiaries were not used.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 58.7 | | 0 | Score 0\*: 582.5 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of cases of non-compliance in the area of goods, including online sales | 9 606 |  |  | 10 234 | No data |
| Number of entrepreneurs benefiting from mentoring and mobility schemes, including young, new and female entrepreneurs, along with other specific target groups (\*\*) | 0 |  | 22 000 in 2027 | No results | No data |
| Percentage of international financial reporting and auditing standards endorsed by the EU | 98% | 50% | 100% in 2027 | 99% compared to a target of 100% | On track |
| Number of position papers and responses to public consultations in the field of financial services from beneficiaries | 53 | 14% | 371 | 53 compared to a target of 371 | On track |
| Number of successfully implemented national veterinary and phytosanitary programmes |  |  |  | No results | No data |
| Number of web mentions and positive/negative opinions | 480 000 | 31% | 499 539 in 2028 | 486 000 compared to a target of 499 539 | On track |

(\*)% of target achieved by the end of 2021.

(\*\*)No single market programme reporting data is envisaged for the mentoring and mobility actions in 2021, as the actions during this period are funded under the previous COSME programme.

–With implementation having just started, there is not enough information to carry out a detailed performance assessment of the 2021-2027 single market programme. This will be provided once the implementation has progressed further.

2014-2020 multiannual financial framework –programme for the competitiveness of enterprises and small and medium-sized enterprises

COSME supports measures to strengthen the competitiveness and sustainability of SMEs, which also achieve additionality at the EU level. This encompasses measures to foster growth; scale up and create SMEs; improve access to markets (including through internationalisation); improve access to finance for SMEs in the form of equity and debt; promote entrepreneurship, entrepreneurial skills, the business environment and digital transformation; create new business opportunities for SMEs (including those with innovative business models); improve the competitiveness of industrial ecosystems and sectors; develop industrial value chains; modernise industry; and contribute to a green, digital and resilient economy.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 2 358.7 | | |  | | --- | | 2 359.0 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 1 762.1 | |  | |  | | --- | | 75% | |

–As of 31 December 2021, the programme had committed the whole of its available envelope.

–In terms of payments, the Loan Guarantee Facility has an implementation ratio of 84% (payments vis-à-vis commitments), while the Equity Facility for Growth has an implementation ratio of 38% due to the specificities in the implementation of this instrument (see below). On average, the payment implementation rate is 73%.

–In the case of the Loan Guarantee Facility, payment appropriations are needed to allow the implementation partner (the European Investment Fund) to honour guarantee calls from financial intermediaries for defaulting loans and to pay implementation fees. The Loan Guarantee Facility has also been reinforced by the SME window of the European Fund for Strategic Investments since 2015. This has added additional risk-taking capacity and has doubled the available resources in terms of commitment appropriations. It is expected that by the end of 2022 the budgetary implementation ratio will reach almost 100%, i.e. payment appropriations should match commitment appropriations almost in full.

–In the case of the Equity Facility for Growth, payment appropriations are needed to allow the implementation partner (the European Investment Fund) to honour cash calls from fund managers, who will use the cash to invest in portfolio companies and for implementation fees. Since it is standard in the industry that venture capital fund managers have up to 5 years to make the first initial investments in SMEs following the creation of the venture fund, there is a significant delay between the time of signature of a fund agreement by the European Investment Fund and the respective cash calls by the fund managers. Furthermore, following the initial investment by the fund manager, funds can hold on to their portfolio companies for up to 10 years, during which time they can undertake follow-on investments to grow the companies. This pattern of activity explains why there is a significant time delay between commitment and payment appropriations in the case of venture capital investments.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Loan Guarantee Facility – volume of debt financing mobilised | 0 | > 100% | 14.3 billion in 2020 | EUR 49.0 billion compared to a target of EUR 14.3 billion | Achieved |
| Loan Guarantee Facility – number of firms benefiting from debt financing | 0 | > 100% | 220 000 in 2020 | 793 504 compared to a target of 220 000 | Achieved |
| Enterprise European Network – number of partnership agreements signed | 2 295 | > 100% | 2 500 in 2020 | 2 701 compared to a target of 2 500 | Achieved |

(\*) % of target achieved as of September 2021.

–The COSME programme addresses the full range of challenges that SMEs face in boosting their competitiveness. For example, the Loan Guarantee Facility not only provides financial support to numerous SMEs that have difficulties in obtaining finance. It also has a positive impact on the SMEs’ assets, share of intangible assets, sales and employment rates, and even reduces the SMEs’ probability of default. This is empirically demonstrated by the econometric work carried out in various studies on the COSME predecessor activities relating to access to finance (see European Investment Fund, 
[‘The real effects of EU loan guarantee schemes for SMEs: A pan-European assessment’](https://www.eif.org/news_centre/publications/EIF_Working_Paper_2019_56.pdf)
, EIF Research and Market Analysis – Working Paper, 2019/56, June 2019).

–Specific projects showed continued success and growth, although some adjustments were necessary in 2020. The Erasmus for young entrepreneurs mobility scheme (active since 2009 as a pilot action and continued under COSME) demonstrates the need for entrepreneurial exchanges whereby would-be or newly established entrepreneurs receive practical support from experienced entrepreneurs. Experienced entrepreneurs in return increase their knowledge and access to other markets and gain new ideas and techniques for their business. The programme was hit hard by COVID-19, and the number of matched entrepreneurs dropped significantly in 2020 (1 684 entrepreneurs were matched compared to 2 672 in 2019). Performance in 2021 was still affected by COVID-19 health measures. Measures to react to the situation were put in place, starting with the possibility to engage in remote exchanges. Despite the challenges caused by COVID-19, the programme has maintained its wide geographical reach, implemented by a network of over 180 local intermediary organisations in 37 out of 39 participating countries, including Kosovo (
[5](#footnote6)
) and Martinique (an EU outermost region).

–Around 263 898 SMEs received advisory services from the Enterprise Europe Network between 2015 and 2020. Specific actions initiated in 2020 to help SMEs overcome the COVID-19 crisis were continued and consolidated in 2021, in particular virtual brokerage events to help SMEs find alternative business partners, advice on access to finance and single market advisory services. According to a survey by the Enterprise Europe Network, about 74% of responding companies were strongly or moderately affected by the crisis, forcing them to deal with supply chain disruptions, employee absences and temporary shutdowns (among other issues). The most obvious reasons were delays due to transport and logistics problems, border closings and national lockdown measures.

–COSME financial instruments: by September 2021, the Loan Guarantee Facility had enabled more than 790 000 SMEs to receive more than EUR 49 billion in financial support over the 2014-2021 period. In reaction to the 2020 COVID-19 crisis, EUR 714 million from the European Fund for Strategic Investments was redirected to the COSME Loan Guarantee Facility to allow the European Investment Fund to incentivise banks to provide liquidity to SMEs affected by the crisis. More flexibility was given to users of the facility, and the guarantee rate was increased from 50 to 80%. The latest data available (September 2021) indicate that this helped more than 100 000 European SMEs to access more than EUR 9 billion in liquidity finance under the COSME COVID-19 measure within the Loan Guarantee Facility.

–By September 2021, the funds supported by the Equity Facility for Growth had invested more than EUR 2.7 billion in more than 400 companies. Of this amount, more than EUR 1.9 billion was invested in more than 240 SMEs in their growth and expansion stage. The latter two indicators (EUR 1.9 billion and 240 SMEs) were below the long-term targets initially envisaged for 2020.

–The programme evaluation referred to fragmentation issues, which are meanwhile being addressed (see below).. It also pointed to a lack of centralised data about implementation, in relation to monitoring and noted that indicators are mostly based on outputs rather than on long-term effects. Efforts are still needed to centralise the data that is currently dispersed between the coordinating team, the units managing individual actions and the delegated entities. The evaluation also mentioned that the programme delivers in terms of jobs and growth creation, but does not directly address global and societal challenges. The programme is coherent and works without big overlaps with other EU programmes and national/regional SME support schemes, however there is scope for synergies to be improved, mainly at the national and regional levels. Meanwhile, since the adoption of the SME strategy, sustainability has become a more visible priority of the programme and other societal concerns are also addressed in social economy actions and the 100 intelligent cities challenge..

–This fragmentation into smaller actions was gradually addressed over the last 2 years of the COSME work programme, by reinforcing larger actions where appropriate and reducing the number of smaller supporting actions. Under the Single Market Programme, the most impactful actions have been reinforced. However, the new programme should maintain the same ability to launch smaller pilot actions to adapt to the changing landscape of SMEs, as the COSME programme had.

2014-2020 multiannual financial framework – European statistical programme

The European statistical programme provides funding to national statistical institutes for the development, production and dissemination of high-quality statistics to monitor the economic, social, environmental and territorial situation, thereby providing for evidence-based-decision making in the EU and measuring the impact of EU initiatives.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 446.7 | | |  | | --- | | 449.1 | | |  | | --- | | 99% | |
| Payments | |  | | --- | | 391.3 | |  | |  | | --- | | 87% | |

–Following the calls for proposals for traditional projects launched in 2019, around 1 300 proposals were received, leading to the financing of 147 projects (through grants), for which the grant agreements were signed in 2020. More than 1 100 proposals were submitted under the environment subprogramme, including under the resource efficiency and nature and biodiversity strands, leading to the financing of 108 projects. In addition, there were around 170 proposals for the climate change mitigation and adaptation strand, with 39 projects being financed.

–Between 2014 and 2020, 99% of commitments were implemented within the framework of the European statistical programme, thereby allowing to reach the related goals to be reached.

–Payment appropriations will continue to be executed in the years to come to allow for the finalisation of ongoing projects relating to grants and procurement activities. In 2021, some expected submissions of deliveries and cost claims from beneficiaries and contractors were delayed, owing in particular to the pandemic situation, which resulted in EUR 3.3 million in unused payment appropriations.

Performance assessment

–The implementation of the European statistical programme progressed well, producing significant results under the programme’s various objectives.

–The general objective of the programme was for the European Statistical System to be the leading provider of high-quality statistics on Europe. Its performance indicator, measuring Eurostat’s impact on the internet, shows that the programme has generally performed well. The number of times that Eurostat is mentioned on the internet is on target. The percentage of negative opinions is extremely low, showing trust in and satisfaction with the data produced.

–The second performance indicator, statistical coverage, measures the relevance of the statistics published by Eurostat. It shows how the quantity and variety of data published by Eurostat evolve and are measured as the number of different statistics published on the Eurostat website increases. The statistical coverage shows an increase of 39 million users (9%) compared to last year. This demonstrates that Eurostat has enlarged its statistics offer to meet new user needs and that demands for new statistics are being satisfied, thanks in part to improvements in the production process, as the amount of available resources is not increasing.

2014-2020 multiannual financial framework – reporting and auditing

The financial reporting and auditing standards programme provides financial support for the development of international financial reporting and auditing standards. Such international standards underpin the EU’s own legal framework on financial reporting (accounting and auditing) and are an essential element of the legislation regulating EU capital markets and the strengthening of the capital markets union.

Budget

–Over the 2014-2020 period, commitment appropriations of EUR 55 307 969 were used for the operational implementation of the programme.

–However, budget appropriations totalling EUR 2.9 million were decommitted over the same period. This represents 5.4% of the total budget appropriations initially committed. This decommitment was mainly due to a beneficiary underspending the funds awarded to them. Arrangements were put in place to mitigate the likelihood and impact of recurrence. Such arrangements were successful in mitigating the problem while allowing the objectives of the programme to be achieved.

–The payments executed between 2014 and 2020 amounted to EUR 48 819 949 and represented 88% of the total commitment appropriations for that period. The implementation period for operating grants runs from 1 January to 31 December, and balance payments due to the beneficiaries were made in 2021, which explains the difference between the cumulative commitment appropriations (taking into account the aforementioned decommitment) and the cumulative payment appropriations.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of countries using international financial reporting standards | 128 | 100% | 166 in 2020 | 166 countries compared to a target of 166 | Achieved |
| Number of standards endorsed in the EU compared to the number issued by the International Accounting Standards Board | 89% | 91% | 100% in 2020 | 99% compared to a target of 100% | On track |

(\*) % of target achieved by the end of 2021.

–EU support strengthened the legitimacy of the three beneficiaries (the International Financial Reporting Standards Foundation, the European Financial Reporting Advisory Group and the Public Interest Oversight Board) to serve the European public interest by developing and promoting European views in the field of financial reporting and auditing and ensuring these views are properly considered in the standard-setting processes of the International Accounting Standards Board and the International Federation of Accountants. In terms of achievements, the funding programme enabled the three beneficiaries to develop standards that enhance the transparency and comparability of financial information about financial instruments, revenue recognition and lease contracts.

–The European Financial Reporting Advisory Group has also widened the scope of its work in recent years, and has established a European Corporate Reporting Laboratory. The laboratory became operational in February 2019, when its task force on climate-related reporting started its work (the relevant report was published in February 2020). A second project on the reporting of non-financial risks and opportunities and linkage to the business model started in September 2020.

–The Public Interest Oversight Board continued to carry out its oversight function of the International Auditing and Assurance Standards Board and the International Ethics Standards Boards for Accountants.

–Since March 2020, the COVID-19 pandemic has influenced the work of the International Financial Reporting Standards Foundation, the European Financial Reporting Advisory Group and the Public Interest Oversight Board in several ways. The three entities not only adapted by changing the way they worked (crisis meetings were conducted as online meetings; outreach sessions were cancelled, postponed or turned into webinars) but also extended deadlines to recognise stakeholders’ circumstances and to allow them to provide input and, where applicable, seek input from their constituents. The International Accounting Standards Board supported stakeholders with various COVID-19-related amendments that provide targeted accounting relief and by adjusting its work plan, including postponing less-critical consultations. One example of this is the amendment of international financial reporting standard 16 to facilitate the accounting by entities for COVID-19-related lease concessions, such as rental holidays and temporary rent reductions. On the other hand, the board prioritised time-sensitive projects such as those relating to reform of the interbank offered rate and international financial reporting standard 17.

  

2014-2020 multiannual financial framework – enhancing consumer involvement in EU policymaking in the field of financial services

The programme for enhancing consumer involvement in EU policymaking in the field of financial services provides financial support to increase the participation of consumers, other end users of financial services and civil society in financial services policymaking and to promote better understanding of the financial sector.

Budget

–Between 2017 and 2020, commitment appropriations amounting to EUR 5 532 382 were used for the operational implementation of the programme.

–However, budget appropriations totalling EUR 0.3 million were decommitted over the same period. This represents 5.4% of the total budget appropriations initially committed. This decommitment was mainly due to a beneficiary underspending the EU funds awarded to them. Arrangements were put in place to mitigate the likelihood and impact of recurrence. These arrangements were successful in mitigating the problem while allowing the objectives of the programme to be achieved.

–The payments executed between 2017 and 2020 amounted to EUR 4 828 690 and represented 87% of the total commitment appropriations for that period. The implementation period for action grants runs from 1 January to 31 December, and balance payments due to the beneficiaries were made in 2021, which explains the difference between the cumulative commitment appropriations (taking into account the aforementioned decommitment) and the cumulative payment appropriations.

Performance assessment

–Since the launch of the programme in 2017, the two beneficiaries (Better Finance and Finance Watch) have been successfully working towards the achievement of the programme’s objectives. They have further developed the knowledge and expertise needed to participate in EU and other relevant multilateral forms of policymaking in the area of financial services.

–In parallel, the two organisations have built up a network and implemented a number of dissemination activities that have enabled them to inform consumers and other end users of financial services, along with stakeholders representing their interests, about issues at stake in the regulation of the financial sector.

–Since March 2020, the COVID-19 pandemic has hampered the beneficiaries’ physical participation (including as speakers) in a number of events, as many have been cancelled or postponed. Instead, the organisations organised a total of 13 virtual events, provided speakers to 66 online conferences and webinars and attended another 105 online events. This ensured that the voice of financial services users was heard.

2014-2020 multiannual financial framework – food and feed

The food and feed programme aims to prevent, control and eradicate animal diseases and plant pests, support sustainable food production and consumption and improve animal welfare and the effectiveness, efficiency and reliability of official controls.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 1 827.2 | | |  | | --- | | 1 827.3 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 1 539.8 | |  | |  | | --- | | 84% | |

–In 2020, 146 national veterinary programmes, covering the monitoring and eradication of 11 diseases and implemented by 28 Member States, were approved and implemented in accordance with predefined priorities. Around EUR 117.2 million was allocated to co-fund them, which accounts for the largest proportion of spending under the food and feed budget.

–In relation to emergency measures, the large-scale avian influenza outbreak, which started in 2016, required extensive efforts through 2017 and 2018 to limit its spread across Europe. In 2020, several new outbreaks occurred across the EU, and grants were awarded amounting to a total of EUR 58.76 million. Within the framework of ex ante on-the-spot audits, for some Member States the financial settlement of the crisis of 2017-2018 continued in 2021; this, in combination with payments for the 2020 grants, would result in further substantial payments in the future.

–Better training for safer food activities, with the objective of improving the effectiveness, efficiency, and reliability of official controls, could not be implemented as planned in 2020 due to the COVID-19 pandemic, as the vast majority of the courses planned involved face-to-face training in small breakout groups from multiple places of origin. A number of contracts were amended to allow training using virtual classrooms, starting in January 2021. However, as there was no contractual obligation to provide virtual classrooms, many contractors chose to extend contracts and suspend their services. Eight new calls for tender (amounting to EUR 7 million) were published in 2020, and three new calls for tender were published in 2021 (with EUR 3 million committed for the first phase).

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Coverage of EU territory by surveys for pests not known to occur within that territory | 50% | 80% | 100% in 2020 | 90% compared to a target of 100% | On track |

(\*) % of target achieved by the end of 2021.

–Among the important achievements in the area of food and feed (a high level of health for humans, animals and plants), it is worth noting the dramatic reduction of both food-borne salmonellosis in humans and classical bovine spongiform encephalopathy (mad cow disease, which has almost disappeared). Lumpy skin disease, an emerging disease of cattle, has also been controlled effectively, with no outbreaks in south-eastern Europe since 2017.

–In 2014-2020, the European Court of Auditors published several reports assessing the implementation of the food and feed programme. In Chemical Hazards in Our Food – Special report 02/2019, the Court emphasised that the EU’s food safety model in respect of chemicals is considered a point of reference, and that it is soundly based and respected. On 26 April 2016, the Court published Dealing with serious cross-border threats to health in the EU – Special report 28/2016 on a performance audit on animal disease eradication programmes, and drew positive conclusions on DG Health and Food Safety’s management of the programmes. All of the Court’s recommendations referred to actions that were already ongoing, and all of them have already been finalised.

–In 2021, the Court of Auditors carried out a follow-up review of its report Animal Welfare in the EU – Special report 31/2018. Based on the preliminary findings presented in the clearing letter (CL-13193) received on 12 January 2022, three recommendations were implemented in a timely manner by DG Health and Food Safety and two recommendations face a delay in implementation due to the decision to launch a fitness check in 2020, which is relevant for the revision of EU animal welfare legislation (
<https://europa.eu/!drdwmd>
).

–The food and feed programme has contributed to the improvement of animal welfare through its financial support for courses on better training for safer food in this area in several countries. This has led to improvements in this sector, as stated by the Court of Auditors, which emphasised in Animal Welfare in the EU – Special report 31/2018 that EU action on animal welfare has improved compliance with the EU’s requirements and has supported higher standards, with a clear positive impact on animal welfare.

–In 2019, the Internal Audit Service requested that DG Health and Food Safety further improve and simplify the financial management of the veterinary and phytosanitary programmes. In the light of this process, DG Health and Food Safety signed an administrative arrangement with the Joint Research Centre of the Commission to develop new methodologies for the calculation of unit costs in both areas. The work has suffered slight delays because of the COVID-19 situation, but the final report on the review of the methodology for unit costs in the veterinary area was submitted by the Joint Research Centre to DG Health and Food Safety in March 2021. At the same time, the report for phase 1 concerning a new methodology for the calculation of unit costs for sampling activities in the phytosanitary area (where no such approach existed) was also submitted by the Joint Research Centre. DG Health and Food Safety intends to apply both methodologies in the near future.

–The Commission acknowledges the existence of backlogs, especially in the area of regulated food ingredients, and is working to enhance its procedures for the monitoring and enforcement of all food and health legislation, which will cover the follow-up to recommendations arising from Commission audits.

–Currently, the final ex post evaluation of Regulation (EU) No 652/2014 is ongoing, following the legal obligation under the EU’s financial rules (Regulation (EU, Euratom) 2018/1046) on performing retrospective evaluations of programmes and activities that entail significant spending in order to assess the performance of the programme or activity.

  

–

2014-2020 multiannual financial framework – consumer programme

The consumer programme promotes the interests of consumers and ensures a high level of product safety and consumer protection by empowering and assisting consumers, ensuring access to efficient redress mechanisms, supporting enforcement authorities and consumer organisations, enhancing the participation of consumers and other end users of financial services in financial services policymaking and promoting better understanding of the financial sector and the different forms of commercialised financial products.

Budget

Cumulative implementation rate at the end of 2021 (EUR million):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 187.8 | | |  | | --- | | 188.4 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 161.9 | |  | |  | | --- | | 86% | |

–The implementation of the 2014–2020 consumer programme is well on track, and at the end of 2021, all commitment appropriations (including the credits on the global commitment) were used according to the planned operational implementation.

–In 2020 and 2021, following the impact of the COVID-19 crisis on some of the procurement activities (cancellation of meetings, conferences and study visits), the budget allocated to grants was slightly increased (within the 20% flexibility provided for in the financing decision), which allowed an increase in the overall implementation rate.

–The implementation of the payment appropriations over the 2014-2020 period represented 86% of the total commitment appropriations for that period. The payment appropriations will continue to be executed in the years to come (estimated until 2023) to allow for the finalisation of ongoing projects relating to grants and procurement activities. They mainly concern multiannual activities that are still in progress or are in the finalisation phase.

Performance assessment

–The implementation of the consumer programme progressed well, producing significant results under the programme’s various specific objectives.

–Cooperation between national authorities through Safety Gate (the rapid alert system for dangerous non-food products) has significantly increased over time since the system’s creation in 2003. The ratio of the number of reactions to the number of serious risk notifications increased from 0.90 in 2013 to 1.99 in 2021 (these very good statistics can be explained by the fact that a notification can trigger several reactions from authorities of other Member States). The number of notifications has now stabilised at the regular rate of around 2 000 per year. Safety Gate has grown into an effective and important tool of the EU market surveillance that is internationally recognised. It has also played an important role in tracing dangerous products announced as protecting against COVID-19 infections

–The ever-growing online offer of products makes it more and more challenging to monitor whether the dangerous banned from sale are removed from all online listings, and to make sure these products will not re-appear again at a later stage.

–Manual checks on such products in online shops are time consuming, costly and not effective enough. This raised the need for a powerful information technology tool (the eSurveillance webcrawler) to be developed to monitor whether web shops or any other online marketplaces sell dangerous products, and to do this using a coherent, unique and cost-efficient approach. The project is in the pilot phase, and its launch is expected in the first quarter of 2022. Currently, 340 users from 22 Member States are testing the application. After the first 2 months of the pilot phase the results are very promising, and show a very high level of accuracy (more than 90% of confirmed dangerous products have been found by the application).

–The programme has provided EUR 7 million to the European Consumer Centres which helps consumers with cross-border purchases; educate them about their rights when shopping internationally and helping them seek redress against a trader in another country. Since the outbreak of COVID-19, the ECCs were on the forefront helping consumers confronted with cancellations of flights and package travel. From March 2020 to March 2021, the network received 170 000 requests for information, an increase of 44 % compared to the same period of the previous year.

–The consumer programme allocated EUR 1 million to support the operational capacities of the national consumer protection cooperation authorities responsible for the enforcement of EU consumer protection laws. In 2021, intense work took place to fight the continuous impacts of the COVID-19 pandemic on consumers and to ensure that national authorities are well equipped to carry out coordinated activities for the benefit of European consumers. The modern information technology system, which came into operation in 2020, enabled rapid exchanges between consumer protection cooperation authorities and the Commission on potentially unfair and harmful market trends affecting consumers across Europe.

–The consumer programme also contributes to raising awareness of EU consumer law, including by SMEs through a dedicated training project, ‘Consumer law ready’. The courses (including online courses) were developed taking duly into account the various forms of national consumer legislation, and were made available in all the national languages. In light of the difficulties in holding classroom training sessions, online activities in the project were reinforced. The project saw around 1 200 SMEs and local trainers participating in 2021, and 51 training sessions were held by leading trainers from each Member State.

–The programme has also provided an operating grant of EUR 2 million to the European Consumer Organisation (BEUC) to support various activities aimed at defending the interests of consumers and providing national trainings to consumer organisations, inter alia, on consumer law, digital rights, data protection, finance, food, housing, mobility and product sustainability

ANTI-FRAUD

THE UNION ANTI-FRAUD PROGRAMME

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 10 500  participants attended specialised training and conference activities co-financed by the Hercule III programme between 2014 and 2021. | 1 550  law enforcement officials from all Member States participated in the specialised digital forensic and analyst training procured by OLAF (2014-2021). | 47  high-level events focused on the protection of the EU’s financial interests were organised by OLAF during the duration of the Hercule III programme. | 8  commercial databases and specific information technology tools were made available each year to Member State authorities. |
| EUR 16 million  worth of dangerous toys were seized in a single operation in 2021. | 254 731  tablets of counterfeit medicine were intercepted in a single operation in 2021. | 31 500  cash declarations were transferred via the new Customs information System module in its first six months of operation. | 11  joint customs operations were supported in 2021, targeting the protection of EU financial interests, counterfeit medicines, illegal pesticides, waste and wildlife trafficking. |

(\*) Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 181.2 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 181.2 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The programme fights against fraud and any other illegal activities affecting the financial interests of the EU. Through its three strands, it helps Member States fight fraud through financial support and by organising mutual administrative assistance and cooperation in customs and agricultural matters, notably via the Anti-Fraud Information System (AFIS) and the Irregularity Management System (IMS).

Challenge

The EU’s financial interests are threatened by fraudulent activities and financial irregularities – both on revenues and expenditure – as shown every year by the Commission’s annual report on the protection of the EU’s financial interests.

Tackling these threats requires continuous and enhanced action by the EU. Irregularities and fraud are by definition an EU-wide phenomenon, which is not limited to any individual Member State. Intervention at the EU level on the protection of EU financial interests is justified in terms of subsidiarity, where it facilitates cooperation between the EU and the Member States or between Member States, without impinging on Member States’ responsibilities. Examples of such interventions include the necessary coordination of Member States’ antifraud activities and the provision of financial, technical and information support to Member States in their efforts and actions to protect the EU’s financial interests. The importance and value of this coordination and support role by the EU are particularly obvious when the fraud or irregularity has a cross-border dimension or affects several Member States.

Mission

The programme supports and complements Member State efforts to prevent and fight fraud affecting the financial interests of the EU and provides mutual assistance in customs and agricultural matters.

OBJECTIVES

The programme has three components, each with its specific objective:

–preventing and combating fraud, corruption and any other illegal activities affecting the financial interests of the EU;

–supporting the reporting of irregularities, including fraud, with regard to the shared management and pre-accession funds of the EU budget;

–providing tools for information exchange and support for operational activities in the field of mutual administrative assistance in customs and agricultural matters.

Actions

The first component of the programme provides Member States with targeted assistance in achieving their obligations to protect the EU’s financial interests by supporting the purchase of specific anti-fraud equipment, specific trainings, targeted conferences and studies.

For the second component, the Commission puts at Member States’ disposal and maintains the Irregularity Management System to facilitate Member States’ and candidate countries’ compliance with their obligation (laid down in various sectorial pieces of legislation) to report detected irregularities – including fraud – in cases related to shared management and pre-accession assistance funds.

The third component encompasses the operation and maintenance of AFIS (supporting Member States’ mutual assistance in customs and agricultural matters) and other supported activities, such as joint customs operations, training courses and preparatory or evaluation meetings for operational actions.

Delivery mode

The programme is implemented through direct management. The European Anti-Fraud Office (OLAF) is the lead service for programme implementation.

LINK TO THE 2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK

The programme merges three instruments that were implemented separately in the 2014-2020 multiannual financial framework, namely the former Hercule III programme and the financing bases of both the Anti-Fraud Information System (AFIS) and the Irregularity Management System (IMS).

Impact assessment

The ex ante evaluation of the programme was carried out in 2018. For further information please consult: 
<https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52018SC0294>

WEBSITE FOR more information

<https://ec.europa.eu/anti‐fraud/>

Legal Basis

Regulation (EU) 2021/785 of 29.4.2021 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 24.1 | 24.4 | 24.9 | 25.5 | 26.4 | 27.4 | 28.7 | 181.2 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 0.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0.0 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + EUR 0.0 million (+ 0%) compared to the legal basis Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 24.0 | | |  | | --- | | 181.2 | | |  | | --- | | 13% | |
| Payments | |  | | --- | | 2.5 | |  | |  | | --- | | 1% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 24.0 | 24.1 |
| Payments | 2.5 | 8.7 |

–In 2021, the programme committed 13% and paid 1% of the available appropriations.

–For the first strand (Hercule actions), commitment appropriations were used to conclude specific contracts (procurement) and administrative arrangements for the provision of access to commercial databases, specialised information technology tools and specific training and conference events. The commitment amounts earmarked for the 2021 granting cycle (approximately EUR 11 million) will be implemented by the end of April 2022, through the signature of contracts for the awarded grant files and the payment of pre-financing. Two calls for proposals under the 2022 budget will be published by the end of March 2022.

–The available commitment appropriations in 2021 for the second (Irregularity Management System) and third (AFIS) strands were exclusively used to conclude specific contracts (procurement) for the provision of information technology services, hardware and software. Payment appropriations for these two strands were used to pay invoices related to specific contracts that were concluded in the current and the previous year.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| 0 | 0 | Score 0: 24 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions having gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Satisfaction rate of activities organised and (co-) financed through the programme | 90% | 14% | 95% from 2026 | Milestone achieved in 2021. 94% compared to a milestone of a milestone of 90% | On track |
| Percentage of Member States receiving support each year of the programme | 81% | 14% | 87% in 2027 | Milestone achieved in 2021. 100% compared to a milestone of 81% | On track |
| User satisfaction rate for the use of the Irregularity Management System | 72% | 25% (\*\*) | 72% in 2024 | Target achieved in 2020/2021. 84% compared to a target of 72%. | On track |
| Number of mutual assistance information items made available and number of supported mutual assistance-related activities | 18 639 | 24% (\*\*\*) | 24 000 in 2024 | 19 919 compared to a target of 24 000 | On track |

(\*) % of years for which the milestones or target have been achieved during the 2021-2027 period.

(\*\*) % of years for which the milestones or target have been achieved during the 2021-2024

period.

(\*\*\*) % of target achieved by the end of 2021.

–The programme had a delayed start in 2021, as the regulation was adopted only at the end of April 2021. As soon as the legal basis (financing decision) was adopted at the end of July 2021, OLAF launched all the necessary activities and financial interventions in order to fulfil the programme’s specific objectives.

–Concerning the programme’s first strand (Hercule), two calls for proposals were published in July 2021, covering the following topics: (1) ‘Technical assistance’ and (2) ‘Training, Conferences, Staff Exchanges and Studies’. Overall, the two calls registered 55 applications from 14 Member States. From the 55 applications, 23 projects have been selected for grant funding. Regarding the procurement aspects, specific contracts and administrative arrangements were engaged to provide the Member States with the necessary support and tools in their fight against fraud and illegal activities, such as: access to three commercial databases, two administrative arrangements with the Joint Research Centre and a specialised forensics and analyst training.

–Concerning the programme’s second strand (the Irregularity Management System), maintenance costs absorbed EUR 483 000. Two updating releases allowed some issues previously encountered to be fixed. In November 2021, OLAF procured a study on the ‘Future of IMS’, with a cost of approximately EUR 233 000, to explore the potential of the system, considering the needs and wishes of its users and main stakeholders, as well as the ongoing reflections on the digitalisation of the fight against fraud and the interoperability of relevant information technology tools at the EU and Member State levels.

–With regard to the programme’s third strand (AFIS), eight platform releases – consisting of more than 50 application releases in total – and 25 additional application releases and fixes were developed in 2021. Among these were several major releases, such as: (1) the mutual assistance system, an entirely new application that automates the manual collection and processing of data and gathers all files related to mutual assistance in one central place; (2) two major upgrades of the container status message directory; and (3) a new module for the Customs Information System to support the new cash control regulation (Regulation (EU) 2018/1672), ensuring a timely and efficient exchange of cash declaration data and related infringements between Member State customs services, national financial intelligence units and the competent EU bodies. In December 2021, six months after going live, the new Customs Information System module had more than 2 200 users and contained the data of 31 500 cash declarations and 1 800 infringements of the regulation.

2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK – ANTI-FRAUD INFORMATION SYSTEM

AFIS is an umbrella term for a set of anti-fraud information technology applications operated by OLAF under a common technical infrastructure. The aim of these applications is to exchange fraud-related information between the competent national and EU administrations in a timely and secure manner. AFIS also helps to store and analyse relevant data.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 153.3 | | |  | | --- | | 154.4 | | |  | | --- | | 99% | |
| Payments | |  | | --- | | 126.0 | |  | |  | | --- | | 82% | |

–Note: Due to the intertwined budgetary nature of the previous programmes, this section presents a combined cumulative implementation rate of both predecessor 2014-2020 programmes, AFIS and Hercule III.

–AFIS and Hercule III jointly consumed 99% of the available commitment appropriations and 82% of the available payment appropriations. The remaining payment appropriations are planned to be used for cost claims of ongoing grants.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Mutual assistance – information exchange: number of active customs fraud cases | 8 000 | 70% | 24 000 in 2020 | 19 125 out of 24 000 cases | Moderate progress |

(\*) % of target achieved by the end of 2020.

–The programme has achieved all but one of the targets of its indicators. Its target – 24 000 active customs fraud cases by 2020 – was based on the main assumption that relevant intellectual property rights infringements, which are reported via the DG Taxation and Customs Union anti-counterfeit and piracy system , would significantly contribute to the number of cases. However, at the end of 2020, such infringements represented only 971 cases (5%) of all reported cases. The indicator continues to be monitored and is expected to meet its target in 2024.

–Following Member State recommendations in previous years, OLAF has strengthened in the reporting period the involvement of Member States during all stages of development of new or updated AFIS applications, aiming at improving their usage and user satisfaction. Special workshops were organised for the new versions of the anti-fraud systems managed by the programme, which attracted a large number of participants from the Member States. As a result, Member State acceptance and usage of the mentioned applications has significantly improved, as shown by usage statistics and satisfaction reports. The number of AFIS users increased from 8 000 users in 1 200 services in 2015 to 8 500 users in 1 400 services at the end of 2020.

  

2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK – HERCULE III

Hercule III helped Member States to fight fraud, corruption and other illegal activities though financing of practical projects, such as the purchase by national authorities of sniffer dogs, X-ray scanners and other technical equipment, to stamp out smuggling and other criminal activities that are against the EU’s financial interests.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 153.3 | | |  | | --- | | 154.4 | | |  | | --- | | 99% | |
| Payments | |  | | --- | | 126.0 | |  | |  | | --- | | 82% | |

–Note: Due to the intertwined budgetary nature of the previous programmes, this section presents a combined cumulative implementation rate of both predecessor 2014-2020 programmes, AFIS and Hercule III.

–AFIS and Hercule III consumed 99% of the available commitment appropriations and 82%of the available payment appropriations. The remaining payment appropriations are planned to be used for cost claims of ongoing grants.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Percentage of users who felt that the use of Hercule III-funded equipment added value to their activities | 0% | > 100% | 75% | 97% of beneficiaries compared to a target of 75% | On track |
| Satisfaction rate for training activities funded, including specialised training events | 60% | > 100% (\*\*) | 75% | 94% of beneficiaries compared to a target of 75% | On track |

(\*) % of target achieved by the end of 2021.

(\*\*) % of target achieved by the end of 2020.

–The exceptional pandemic circumstances of 2020-2021 had an important impact on the general implementation of the programme, especially in terms of training and conferences activities. The beneficiaries of grants were, in most cases, unable to continue with the implementation of their projects as foreseen (both the purchase of technical equipment and the training, conferences and staff exchanges were in many cases delayed). OLAF offered its support in postponing the project’s implementation and amending the contracts.

–The programme performed above expectations with regard to the added value and effective use of co-financed technical equipment, expressed by the number of direct users of the equipment in their final technical reports. The final reports received in 2021 show an overall satisfaction rate of 97%, significantly above the target.

–In parallel, the satisfaction rate of the number and type of trainings activities funded under the programme reached 94%, thus also significantly exceeding the target. In 2020, the programme awarded 24 grants for training-related activities. Due to the pandemic, most of the trainings and conferences initially planned for 2020 (both grant and procurement contracts) were postponed to 2021. 15 trainings and conferences were organised, mostly in a virtual or hybrid mode. Two of them took place with physical presence.

–Following the successful publication and evaluation of the 2020 calls for proposals, unused amounts earmarked for procured activities in the 2020 budget were transferred to grants. EUR 2 million were transferred from procured activities to grants, representing approximately 12% of the total budget for the year. This ensured an efficient implementation of available operational funds and allowed grant awards to the best-ranked applications across the three calls. These grant contracts are currently being implemented, covering 2021-2022.

–The access to commercial databases (such as company data, trade data and vessel and maritime movement) and analytical information technology tools continued to be provided to Member State authorities, by signing specific contracts under the existing framework contracts with suppliers.

FISCALIS

Action programme for cooperation in the field of taxation in the European Union

Programme in a nutshell

Concrete examples of achievements

|  |  |  |  |
| --- | --- | --- | --- |
| 1 707 million  messages were exchanged on the key European electronic systems and their components. | 16 313  officials were trained by using EU common training material in 2021. | 27  European electronic systems were operating at the end of 2021. | 7  expert teams in the taxation area were operational at the end of 2021. |
| 99.99%  is the amount of time, on average, that the ‘VIES on the web’ system was available for use in 2021. |  |  |  |

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 267.8 |
| NextGenerationEU |  |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0.0 |
| Total budget for 2021-2027 | 267.8 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The Fiscalis programme is an EU cooperation programme that enables national tax administrations to create and exchange information and expertise. It helps Member States to develop and run major trans‑European information technology tax systems, as well as establishing networks of officials across the EU.

Challenge

Tax fraud, tax evasion and tax avoidance, combined with digitalisation and new business models, present continued challenges to both the EU and the functioning and performance of national tax administrations. The latter need to provide quick and joint responses, while at the same time avoiding unnecessary administrative burden for citizens and businesses engaging in cross-border transactions. Individual Member States cannot adequately address these problems on their own. Rather, these challenges, both within the EU and with non-EU countries, require action at the EU level.

Mission

Fiscalis has the general objective of supporting tax authorities and taxation in order to enhance the functioning of the internal market, foster the competitiveness of the EU and fair competition in the EU and protect the financial and economic interests of the EU and its Member States. This includes protecting these interests from tax fraud, tax evasion and tax avoidance and improving tax collection. It offers Member States a framework to develop activities through cooperation among national taxation officials on the one hand, and information technology and human capacity building on the other.

OBJECTIVES

The programme has the specific objectives of supporting tax policy and implementing EU law relating to the field of taxation; fostering cooperation between tax authorities, including the exchange of tax information; and supporting administrative capacity building, including human competency and the development and operation of the European electronic systems.

Actions

Fiscalis provides financial support for information technology capacity building actions – in particular the development and operation of European electronic systems for taxation – and fosters cooperation among national tax authorities via meetings and project-based structured collaboration, such as project groups and expert teams. The programme also provides financial support for human competency and other capacity building actions, including training and exchange of best practices, as well as other actions such as studies, communication and innovation activities.

Delivery mode

Fiscalis is implemented under direct management by the Commission (DG Taxation and Customs Union).

LINK TO THE 2014-2020 Multiannual Financial Framework

Fiscalis is a continuation of its predecessor in the 2014-2020 multiannual financial framework, but it entails more intensive cooperation and a larger number of electronic systems.

Impact assessment

The ex ante evaluation of the Fiscalis programme was carried out in 2018. For further information please consult: 
<https://op.europa.eu/en/publication-detail/-/publication/34849e66-e308-11e8-b690-01aa75ed71a1>
 

WEBSITE FOR more information

Fiscalis programme: https://ec.europa.eu/taxation\_customs/eu-funding-customs-and-tax/fiscalis-programme\_en

Legal basis

Regulation (EU) 2021/847 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 34.8 | 36.9 | 37.7 | 38.4 | 39.2 | 40.0 | 40.8 | 267.8 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 0.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0.0 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: – EUR 1.4 million (– 1%) compared to the legal basis.

Cumulative implementation rate at the end of 2021:

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | Budget | Implementation rate |
| Commitments | |  | | --- | | 34.8 | | |  | | --- | | 267.8 | | |  | | --- | | 13% | |
| Payments | |  | | --- | | 10.1 | |  | |  | | --- | | 4% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 34.8 | 36.2 |
| Payments | 10.1 | 8.8 |

–Despite the late adoptions of (1) the new 2021-2027 multiannual financial framework, (2) the new Fiscalis regulation (20 May 2021) and (3) the 2021-2023 financing decision (2 July 2021), 13% of the total envelope was committed in 2021. The largest expenditure (64%) relates to the European electronic systems. 28% was committed for collaboration activities (including expert teams) and 8% was committed to other actions such as communication, studies and consultations.

–The impact of the COVID-19 pandemic is yet to be determined for the new programme, due to the late adoption of the regulation and financing decision. While the impact is likely to be very limited for the expenditure on procurement – largely related to the maintenance and development of the information technology systems – it may well be more significant for expenditure on grants on collaborative actions, due to travel restrictions, which limit the scope for face-to-face meetings.

–The impact of the pandemic on the 2014-2020 programme was notable (see Section 2.2.) and led to underconsumption of budget allocation, which resulted in an extension of the 2020 grants until November 2021 for the general collaborative actions. For these reasons, the grants under the 2021-2027 programme only started in December 2021.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 0 | | 0 | Score 0: 22.2  Score 0\*: 12.6 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions; 

­0\*: Score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Union law and policy application and implementation index – number of actions under the programme organised in this area | 0 | 14% (\*\*) | 84 annually from 2022 | Milestone achieved in 2021. 7 actions compared to a milestone of 7 | On track |
| Learning index – number of tax officials trained by using common training material | 0 | 0% | 102 400 in 2027 | 0 officials trained compared to a target of 102 400 (\*\*\*) | On track |
| Availability of European electronic systems | 0% | 14% (\*\*) | 99.50% annually | Target achieved in 2021. 99.64% availability compared to a target of 99.50%. | On track |
| Availability of the Common Communication Network | 0% | 14% (\*\*) | 99.80% annually | Target achieved in 2021. 99.99% availability compared to a target of 99.80% | On track |
| Information technology simplified procedures for the national administrations and economic operators – number of economic operators registered | 0 | 0% | 41.4 million in 2027 | 77 824 operators registered compared to a target of 41.4 million (\*\*\*) | On track |
| Information technology simplified procedures for the national administrations and economic operators – number of applications | 0 | 6% | 5.6 million in 2027 | 353 254 compared to a target of 5.6 million (\*\*\*) | On track |
| Collaboration robustness index – number of online collaboration groups | 0 | 14% | 244 annually | Target achieved in 2021. 244 online collaboration groups compared to 244 | On track |

(\*) % of target achieved by the end of 2021.

(\*\*) % of years for which the milestones or target have been achieved during the 2021-2027 period.

(\*\*\*) Milestone achieved in 2021.

–The delays in the negotiations on the 2021-2027 multiannual financial framework, which concluded only in December 2020, along with the subsequent time needed for the co-legislators to finalise negotiations on the outstanding provisions in the Fiscalis programme regulation, resulted in its adoption only during the course of 2021. More precisely, Regulation (EU) 2021/847 entered into force on 28 May, while the adoption of the financing decision and the first work programme (which, in a novelty relative to the 2014-2020 programme, is now multiannual, covering the 2021-2023 period), was possible only in July 2021.

–Due to the late adoption of the multiannual financial framework and of the programme itself, 2021 represented a transitional year, where performance of the previous and of the active programme was significantly intertwined. Prolonged contracts from the 2014-2020 programme continued to be used for both the information technology projects and general collaborative actions until the second half of 2021 and November 2021 respectively.

–Within the general collaboration activities in the field of taxation, seven activities were launched, including three project groups and one capacity-building activity initiated by the Commission. The implementation of the collaborative activities under the current programme (during December 2021) were still impacted by the COVID-19 pandemic and related restrictions. In particular, the pandemic continued to affect collaborative actions and events, due to the absence of travel and physical meetings. Online meetings replaced almost all face-to-face meetings. On the other hand, the European information systems operated regularly and business continuity was guaranteed despite the pandemic.

2014-2020 multiannual financial framework – Fiscalis

Fiscalis 2020 is an EU cooperation programme enabling national tax administrations to exchange information and expertise. It allows major trans-European information technology systems to be developed and operated in partnership, and various person-to-person networks to be established by bringing together national officials from across the EU.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 223.7 | | |  | | --- | | 223.7 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 209.4 | |  | |  | | --- | | 94% | |

–100% of the programme’s total commitment appropriations have been consumed. To date, 94% has been paid. For 2022, payments of EUR 8 200 530 are planned to honour contracts and grant agreements made in the 2014-2020 programme. The last payment under the 2014-2020 programme is scheduled to take place in 2024.

–The COVID-19 pandemic has affected programme grant activities and the related costs. Due to the restrictions to travel and physical meetings, collaborative activities mainly took place in an online format with no or limited financial costs. This allowed the programme’s unused 2020 budget to be employed to cover the maintenance of the existing information technology systems in the absence of the funds under the new Fiscalis regulation (which became available only in July).

–Due to the delays related to the difficulties faced by some Member States in adapting to the new working methodologies, the grants of two expert teams (CESOP and Mantic IV) were extended to 2021, given the impossibility of concluding their remit by the due date.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress | Target | Results | Assessment |
| The common communication network for the European information systems |  | 100% (\*) | 99.9% | 99.89% availability compared to a target of 99.90% | On track |
| Network opportunity |  | > 100% (\*\*) | 90% | 95% positive feedback compared to a target of 90% | On track |
| Lasting networking effect |  | 92% (\*\*\*) | 449 | 411 face-to-face meetings compared to a target of 449 | Deserves attention |

(\*) Average of results for 2014-2021 compared to the target.

(\*\*) Average of results for 2014-2020 compared to the target.

(\*\*\*) Average of results for 2014-2021 compared to the average of milestones for 2014-2021.

–The COVID-19-related restrictions continued to affect the activities of the programme. In particular, the pandemic affected collaborative actions and events due to the absence of travel and physical meetings, resulting in a substantial underconsumption of the programme’s budget. Almost all face-to-face meetings were cancelled and many were replaced by online meetings. The COVID-19 crisis led to a considerable decrease of the number of multilateral controls and of the presence in the administrative offices and participation in administrative enquiries. Some expert teams had to reschedule their activities and adapt to new working methods.

–Nevertheless, despite the impact of the pandemic and the delayed adoption of the programme regulation, in 2021 the collaboration generated by the programme remained strong. The majority of the collaboration action managers and participants adapted to the new working modalities (online collaboration/meetings). Business continuity in the information technology domain was ensured, as proven by the stable availability of information technology systems.

–The general collaborative actions under the Fiscalis 2020 programme continued until the end of November, based on the extension of their grant agreement until 30 November 2021, while the grant agreement for the general collaborative actions under the new Fiscalis programme started as of December 2021.

–In 2021, the programme continued to fund an important portfolio of European information systems (under the new Fiscalis programme they are identified as European Electronic Systems), aimed at supporting tax authorities in fighting against tax fraud, tax evasion and tax avoidance. In 2021, the particular circumstances related to the COVID-19 pandemic and the delay in the entry into force of the new Fiscalis programme regulation led to a conservative approach in the implementation of the information technology activities, focusing mainly on the maintenance of the information technology systems rather than on the development of new functions in order to ensure business continuity. As a result, the Commission continued to provide these services according to the agreed service levels, thus guaranteeing business continuity.

CUSTOMS

Action programme for cooperation in the field of customs in the European Union

Programme in a nutshell

Concrete examples of achievements

|  |  |  |  |
| --- | --- | --- | --- |
| 2.8 billion  messages were exchanged on the key Customs European Electronic Systems and their components in 2021. | 384 696  officials were trained by using EU common training material in 2021. | 82%  of the Union Customs Code information technology systems were completed by the end of 2021. | 99.99%  is the amount of time that the Common Communication Network was available for use in 2021. |
|  |  |  |

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 948.6 |
| NextGenerationEU |  |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 948.6 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The Customs programme supports the essential cooperation between customs authorities across the EU and protects the financial and economic interests of the EU and its Member States. It has helped to build a modern and innovative customs union that ensures the safety and security of all EU citizens, all while facilitating growing global trade.

Challenge

Safeguarding the financial interests of the EU and of Member States and protecting the integrity of the single market for goods (including from health, environmental and other threats) requires an effective management of the EU’s customs.

This in turn requires intense operational cooperation between Member State customs administrations and between them and other authorities of trading partners and other non-EU countries. As many activities in the customs area are of a cross-border nature, they cannot be effectively and efficiently carried out by individual national administrations on their own: action at the EU level is warranted.

Mission

Customs has the general objective of supporting the EU Customs Union and customs authorities working together and acting as one to protect the financial and economic interests of the EU and its Member States, to ensure security and safety within the EU and to protect the EU from unfair and illegal trade while facilitating legitimate business activity.

OBJECTIVES

The programme has the specific objectives of supporting the preparation and uniform implementation of customs legislation and policy, customs cooperation and administrative and information technology capacity-building. This includes human competency and training, along with the development and operation of European electronic systems and innovation in the area of customs policy.

Actions

Customs provides financial support for information technology capacity-building actions, in particular the development and operation of European electronic systems for customs. It also fosters cooperation among national customs authorities via meetings and project-based structured collaboration, such as project groups and expert teams.

The programme also provides financial support for human competency and capacity‑building actions, including training and exchange of best practices, along with other actions such as studies, communication and innovation activities.

Delivery mode

The programme is implemented in direct management by the Commission (DG Taxation and Customs Union).

LINK TO THE 2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK

Customs is a continuation of its predecessor programme under the 2014-2020 multiannual financial framework, with more intensive cooperation, a larger number of electronic systems and greater openness to innovation.

Impact assessment

The ex ante evaluation of the Customs programme was carried out in 2018. For further information please consult: 
<https://europa.eu/!pH79WJ>

WEBSITE FOR more information

<https://europa.eu/!CU34bu>

Legal basis

Regulation (EU) 2021/444 of the European Parliament and of the Council of 11 March 2021.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 125.5 | 130.4 | 133.1 | 135.7 | 138.4 | 141.2 | 144.3 | 948.6 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 0.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0.0 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: – EUR 1.4 million (- 0%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 125.5 | | |  | | --- | | 948.6 | | |  | | --- | | 13% | |
| Payments | |  | | --- | | 21.9 | |  | |  | | --- | | 2% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 125.5 | 126.9 |
| Payments | 21.9 | 25.3 |

–The delayed adoption of the 2021-2027 multiannual financial framework resulted in the late adoption and launch of the Customs programme. The signature of the new grant agreements and the implementation of general collaboration activities and expert team grants could only start in December 2021, resulting in a payment implementation rate of only 2%.

–The impact of the COVID-19 pandemic on the previous programme resulted in underconsumption of budget allocations, which led to the extensions of the 2020 grants until the end of November 2021. For these reasons, the grants under the new programme only started in December 2021 and the impact of COVID-19 is still to be established, primarily depending on the evolution of the pandemic and on the post-COVID-19 reality in terms of physical meetings.

–During the fourth quarter of 2021, three grant agreements were signed in the field of general collaboration activities and expert teams.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 0 | | 0 | Score 0: 116.0  Score 0\*: 9.5 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Union law and policy application and implementation index – number of actions under the programme in this area | 0 | 14% | 60 annually from 2022 | Milestone achieved in 2021. 5 actions compared to a milestone of 5 | On track |
| Learning index – number of customs officials trained by using common training material | 0 | 0% (\*\*) | 186 140 in 2027 | 0 | On track |
| Learning index – quality scored by participants in training activities | 0% | 0% (\*\*) | 75% annually from 2024 | 0 | On track |
| Use of key European electronic systems – number of messages exchanged on the key European electronic systems/system components | 0 | 11% (\*\*) | 18.8 billion in 2027 | 2.0 billion messages compared to 18.8 billion (\*\*\*) | On track |
| Use of key European electronic systems aimed at increasing interconnectivity and moving to a paper-free customs union – number of records consulted in key databases | 0 | 7% | 767 million by 2027 | 59 million records consulted compared to 767 million (\*\*\*) | On track |
| Union Customs Code completion rate | 75% | 28% (\*\*) | 100% in 2025 | 82% compared to a target of 100% (\*\*\*) | On track |
| Collaboration robustness index – number of online collaboration groups | 0 | 14% | 240 annually | Milestone achieved in 2021. 240 online collaboration groups compared to 240 | On track |
| Best practices and guideline index – percentage of participants that made use of a working practice/guideline developed with the support of the programme | 0% | 0% | 75% annually | No results | No data |

(\*) % of years for which the milestones or target have been achieved during the 2021-2027 period.

(\*\*) % of target achieved by the end of 2021.

(\*\*\*) Milestone achieved in 2021.

–Due to the late adoption of the multiannual financial framework and of the programme itself, 2021 represented a transitional year, where the performance of the previous and of the active programme was significantly intertwined. For most of the year, extended contracts from the previous programme were used to overcome the gap until the launch of the active programme. The implementation of the active programme only started in December 2021, so no meaningful conclusions related to performance could be drawn.

–The COVID-19 pandemic affects programme grant expenditures due to the limitations on travel and physical meetings and almost complete shift to virtual meeting. Nevertheless, grants only represent approximately 5.7% of the Customs programme’s budget, which makes the COVID-19 impact on the expenditure of the programme relatively low.

 

2014-2020 MULITIANNUAL FINANCIAL FRAMEWORK – CUSTOMS

The Customs 2020 programme supports customs authorities in protecting the financial and economic interests of the EU and of the Member States, including in the fight against fraud and the protection of intellectual property rights, to increase safety and security, to protect citizens and the environment, to improve the administrative capacity of the customs authorities and to strengthen the competitiveness of European businesses.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 532.5 | | |  | | --- | | 532.5 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 502.1 | |  | |  | | --- | | 94% | |

–The Customs programme had a high implementation rate, reaching over 94% at the end of 2021. The remaining payments will be finalised in the 2022-2023 period.

–For European electronic systems and other service contracts (studies): the 2020 budget was committed in 2021 via a global commitment done at the end of 2020, so as to bridge the gap between the end of the former programmes and the adoption of the new multiannual financial framework and the related financing decision.

–For collaboration activities (including expert teams), external experts and the remaining service contracts: during 2021, there were no new commitments related to the budget of the Customs 2020 programme. All activities continued in 2021 based on 2020 commitments.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Feedback from participants – network opportunity | 0% | >100% | 90% annually | 92% compared to a target of 90% | Moderate progress (\*\*) |
| Feedback from participants – number of face-to-face meetings | 0 | 96% | 380 annually | 370 compared to a target of 380 | Moderate progress (\*\*\*) |
| Feedback from participants – number of online groups |  | >100% | 200 annually | 230 groups compared to a target of 200 | Achieved |
| Availability of the European information systems common communication network |  | 100% | 99.90% annually | 99.90% availability out of a target of 99.90% | Achieved |
| European information systems availability – business hours |  | > 100% | 97.00% annually | 98.77% availability compared to a target of 97.00% | Achieved |
| European information systems availability – other |  | > 100% | 95.00% annually | 98.77% availability compared to a target of 95.00% | Achieved |

(\*) Average of 2014-2020 results compared to target

(\*\*) 2020 and 2021 results were 81%, compared to a target of 90%.

(\*\*\*) 2020 and 2021 results were 85 and 20, compared to a target of 380.

–The programme faced continued unprecedented challenges in 2021. The COVID-19 pandemic impacted mainly face-to-face interactions, while the delayed adoption of the customs programme had a significant effect on all of its activities, warranting the introduction of provisional measures and extension of contracts, which also delayed meaningful progress in terms of performance.

–The programme was on track until the pandemic struck, causing significant disruption and preventing in particular the achievement of the target to organise at least 380 meetings. In 2020, only 85 meetings could be organised, down from 570 in 2019. COVID-19 also affected the networking opportunities under the programme, leading to a decrease in the satisfaction rate of participants from levels above the 90% target in previous years (96%) to a rate lower than the target in 2020 (81%). However, in December 2021 – the first month of implementation of the new Customs 2021 programme – no less than seven events took place, showing a continuing tendency of relying on online meetings in the absence of physical ones.

–Despite the challenges faced in 2021, the collaboration among Member States under this programme remained strong. The majority of the collaboration action managers and participants adapted to the new working modalities (online collaboration/online meetings). Business continuity of information technology was ensured, as proven by the stable availability of information technology systems.

–In 2021, the programme supported 33 collaborative actions, whose primary objective identified a strong link with the preparation, coherent application and effective implementation of EU law/policy.

–Owing to various measures undertaken to stretch the existing contracts to their limits, the network and system availability of the European electronic systems remained close to 100% in 2021, despite the late entry into force of the programme.

–Regarding human competency and training, the number of officials trained in 2021 increased significantly to 384 696 (from 18 109 in 2020), due to the availability of the new customs and tax EU learning portal.

EU SPACE

EU SPACE PROGRAMME

Programme in a nutshell

Concrete examples of achievements

|  |  |  |  |
| --- | --- | --- | --- |
| 2.5 billion  Galileo-enabled devices were in use in 2021. | 3  times better positioning accuracy performance has been achieved by Galileo when compared to other global navigation satellite systems, with excellent availability. | 2  additional Galileo satellites were successfully launched in 2021, bringing the number of satellites in orbit to 28. | 18  Member States are ready to process the 112 emergency caller location service driven by Galileo. |
| 8  Copernicus satellites were in orbit in 2021. | 76  activations of the on-demand Copernicus rapid mapping and risk and recovery mapping services were reported in 2021. | 100 000  registered users of the Copernicus Climate Change service had access to more than 70 terabytes of quality-controlled climate data per day in December 2021. | 45 million  Copernicus data products were published in 2021. |

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 14 390.0 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 123.4 |
| Total budget for 2021-2027 | 14 513.4 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The EU space programme is designed to support and transform EU legislation in fields such as the environment, civil protection, security, climate change, the internal market, transport, energy, agriculture, cooperation with non-EU countries and humanitarian aid.

Furthermore, EU action for space research under Horizon Europe supports technological development, innovation and the competitiveness of European upstream and downstream space sectors, including support for space entrepreneurship.

Challenge

Space technology, data and services are indispensable in the daily lives of Europeans, and key for Europe to reinforce autonomy in areas of strategic importance and for implementing the EU's political priorities such as the Green Deal and the digital strategies to tackle climate change, sustainability, safety and security. Thanks to major investment, the EU has a strong edge in space activities and the European space industry is one of the most competitive on the global stage. However, there are many new challenges and actors across the world.

The EU space programme brings together the financial and technical capacities of Member States and yields economies of scale for the public spending involved. Furthermore, the provision of data and services throughout the Member States requires coordination at the EU level. Given the requirements in terms of security, all Member States must be involved.

Mission

The EU space programme provides, maintains and promotes the use of space data, information and services to support the EU’s political priorities. It also fosters the development of European space industry, enhances the security of the EU and its Member States, reinforces autonomy in areas of strategic importance and promotes the role of the EU as a strong global space actor.

OBJECTIVES

The EU space programme pursues the following objectives:

–to provide state-of-the-art, robust and secure positioning, navigation and timing services;

–to deliver accurate and reliable Earth observation data, information and services;

–to enhance space surveillance and tracking capabilities for purposes such as monitoring space objects and space debris and providing space weather services;

–to ensure the long-term availability of reliable, secure and cost-effective satellite communications services;

–to support an autonomous, secure and cost-efficient capability to access space;

–to foster the development of a strong EU space economy by reinforcing competitiveness, innovation, entrepreneurship, skills and capacity building in all Member States, and in particular for small and medium-sized enterprises and start-ups.

Actions

The EU space programme brings all existing and new space activities together under a single programme. The existing flagship programmes – Galileo (the EU’s state-of-the-art global navigation satellite system) and EGNOS (the European Geostationary Navigation Overlay Service) for satellite navigation and Copernicus for Earth observation – are fully operational and deliver free and open data and services that benefit EU citizens, businesses and public authorities.

The new initiatives include the governmental satellite communications component, which will provide reliable and secure satellite communication and space situational awareness and will help to preserve assets of the EU space programme and to reinforce links between space, security and defence.

Delivery mode

The Directorate-General for Defence Industry and Space is the lead DG for the programme, which is implemented mainly through indirect management with the European Union Agency for the Space Programme, the European Space Agency and the European Organisation for the Exploitation of Meteorological Satellites. A small part of the budget is implemented through direct management by the Commission.

LINK TO THE 2014-2020 multiannual financial framework

The EU space programme builds on the success of its predecessor programmes, which will all continue with a greater focus on synergies with other EU policy areas. The EU space programme for 2021-2027 introduces a number of new features, such as fostering a strong and innovative space industry in Europe, maintaining Europe’s autonomous access to space and a unified system of governance.

Impact assessment

The impact assessment of the EU space programme and the European Union Agency for the Space Programme was adopted in 2018. For further information please consult: 
<https://europa.eu/!XF34px>

The interim evaluation of Copernicus was carried out in 2017. For further information please consult: 
<http://europa.eu/!GJ34Xr>

The assessment of Copernicus’s ex ante benefits was adopted in 2017. Please consult: 
<https://www.copernicus.eu/sites/default/files/2018-10/Copernicus-Ex-Ante-Final-Report_0_0.pdf>

The EGNOS and Galileo midterm review was carried out in 2017. For further information please consult:

<http://europa.eu/!KF39Uq>

WEBSITE FOR more information

[EU space programme (europa.eu)](https://ec.europa.eu/defence-industry-space/eu-space-policy/eu-space-programme_en)

Legal basis

Regulation (EU) 2021/696 of the European Parliament and of the Council.

Implementation and performance

Budget implementation

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 1 977.3 | 2 008.2 | 2 045.1 | 2 088.3 | 2 051.2 | 2 095.1 | 2 124.7 | 14 390.0 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 123.4 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 123.4 |
| Total | 2 100.8 | 2 008.2 | 2 045.1 | 2 088.3 | 2 051.2 | 2 095.1 | 2 124.7 | 14 513.4 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: – EUR -490.0 (– 3%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 2 078.6 | | |  | | --- | | 14 513.4 | | |  | | --- | | 14% | |
| Payments | |  | | --- | | 1 577.3 | |  | |  | | --- | | 11% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 1 977.3 | 1 997.4 |
| Payments | 1 518.4 | 806.5 |

–The adoption of the programme’s regulation in April 2021 was followed by the conclusion, in June, of a financial framework partnership agreement and contribution agreements between the Commission, the European Space Agency and the European Union Agency for the Space Programme. Based on these agreements, the Commission delegated to these agencies the implementation of a wide range of tasks under the programme’s components.

–All of the components of the EU space programme are expected to fully consume the 2022 commitment appropriations.

EU satellite navigation component – Galileo and EGNOS. In 2021, the key priorities were to ensure the continuity of Galileo and EGNOS services, to continue preparations for the full operational capability of Galileo services and to promote the market uptake of Galileo and EGNOS services.

–Galileo. Galileo’s implementation progressed well in 2021. With regard to services, activities focused on ensuring the continuity of service provision and related operations and on developing new innovative service features such as the Galileo emergency warning service, the high accuracy service and authentication services. The Galileo Open Service was reinforced with a new version of the Signal-in-Space Interface Control Document, which was published in early 2021. This publication introduces features to increase robustness and reduce acquisition time, especially in difficult environments. All modifications are backwards-compatible, so legacy receivers are not impacted. These improvements will be implemented in the actual signal-in-space broadcast by the satellites by the end of 2023. The Galileo system has delivered excellent search-and-rescue services. In March 2021, the Galileo Search and Rescue functionality known as the Return Link Service, which has been operational since January 2020, was upgraded to full operational capability, allowing the commercialisation of Return Link Service-enabled emergency beacons worldwide. In 2021, work on defining the remote beacon activation and 2-Way Communication services continued. The former will allow remote activation of alert beacons in case the beacon user is unable to do so, for instance in case of distress. This service will only be provided by Galileo, and its declaration is scheduled for the first half of 2023. The 2-Way Communication service is expected by 2024, and will allow messages to be exchanged between the Rescue Coordination Centre and people in distress. The COVID-19 crisis has led to severe restrictions on travel and working procedures, and this has resulted in delays of several months in achieving key milestones, such as the declaration of the Open Service full operational capability and the improved Public Regulated Service initial operational capability. Notwithstanding these constraints, the programme remains on track and the key services are being delivered according to expectations. Furthermore, the overall schedule for the Galileo second generation phase, including the procurement of the first satellites, was accelerated to allow for the first launch of the second generation satellites by the end of 2024. To this end, the technical requirements were consolidated, and the first of two industrial contracts was signed in the first quarter of 2021.

–EGNOS. To guarantee the continuity of services beyond 2020 and improve the coverage of EU Member States’ territories, the development of the EGNOS V2.4.2-A evolution was finalised, with entry into service in the fourth quarter of 2021. The qualification of the V2.4.2-B evolution is ongoing, targeting entry into service in 2023. EGNOS has successfully managed the transition to a new-generation central processing facility with the entry into service of the EGNOS V2.4.2.A. The activities for the development of a new generation of EGNOS – EGNOS version 3 – continued in 2021.

–EU Earth observation component – Copernicus. In 2021, the key priorities of the Copernicus programme components (space, services, in situ) were to ensure the continuity of services, to prepare the future Copernicus 2.0 and to promote the market uptake of Copernicus data and service information. Thanks to the excellent cooperation with the entrusted entities and the measures in place to ensure business continuity, overall operations and service-provision activities remained normal. Ground segment operations continued their activities despite the challenges posed by operating remotely due to the COVID-19 crisis. The teams involved in the operations teleworked and access to the operational centres was minimised. Special non-essential operations were temporarily suspended to focus on the continuity of routine operations. The COVID-19 crisis led to the postponement of discussions on potential cooperation arrangements with eight countries and with the United Nations Environment Programme, the Food and Agriculture Organization of the United Nations and the World Meteorological Organization. As far as the next generation of Copernicus is concerned, evolution plans and the preparations for Copernicus 2.0 required the renewal of the existing delegation agreements with entrusted entities for the next 7 years. Nearly all the contribution agreements were negotiated and signed by the end of 2021. In addition, in 2021, an industry survey and an industry workshop were organised to prepare the revision of the Copernicus contributing missions to feature an innovative approach to dealing with Copernicus commercial satellite data and new space companies.

–Space situational awareness component. This new component of the EU space programme adopts a holistic approach, including comprehensive knowledge and understanding of the main space hazards, such as space weather phenomena, and near-Earth objects. At the operational level, the EU has been active in the field of space surveillance and tracking since 2014. The relevant EU consortium delivers three services, relating to collision risk assessment; the detection and characterisation of in-orbit fragmentations, break-ups or collisions; and risk assessment of the uncontrolled re-entry. Currently, this EU consortium provides collision avoidance services to more than 260 European spacecraft and serves more than 130 organisations from 23 Member States. A new partnership will take over the activities performed by the consortium regarding the provision of such services at the EU level while ensuring a smooth transition and the continuity of service provision.

–
[Governmental satellite communications](https://data.consilium.europa.eu/doc/document/ST-7550-2017-INIT/en/pdf%5d)
 component. This is a new component of the EU space programme. A preparatory action was begun prior to 2021 with funding support from the European Parliament to allow the operational governmental satellite communications component of the EU space programme to start successfully. The focus of the preparatory actions has been on developing the user interface, operational user requirements, security requirements and the procurement of the secure operational ground segment studies. The implementation of the governmental satellite communications component will consist of preparing the grounds for the timely and appropriate level of adoption of the services when they start to be provided and continuing the procurement of the appropriate ground segment infrastructure.

–Cassini. To foster innovation and support the emerging European new space industry, in particular small and medium-sized enterprises, the Cassini initiative was rolled out in 2021. To raise interest in entrepreneurship in the space area, a contract for Cassini hackathons was launched in 2021. Two large events took place online and in 10 locations each, in June and November 2021 respectively. Furthermore, Cassini matchmaking, aiming at bringing together start-ups with investors and large companies, will be launched in April 2022, and the first event is scheduled for June 2022. By the end of 2022, the Cassini business accelerator will also be launched, with the aim of improving business skills and networks among start-up companies. In addition, the Cassini Seed and Growth Funding Facility will seek to tackle the lack of risk capital. This action will be launched in the second quarter of 2022 and is expected to strengthen private investment in space-related companies. The European Investment Fund will be acting as an implementing partner for this action.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 254.25 | | 120.0 | Score 0\*: 0.29  Score 0: 1 977.05 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of EGNOS procedures published (both APV-I [6](#footnote7)  and LPV-200 [7](#footnote8) ) | 690 | 17% | 1 150 in 2027 | 769 compared to a target of 1150 | On track |
| EU user satisfaction with respect to Galileo services | 80% | 0% | 90% in 2027 | 80% compared to a target of 90% | On track |
| EU user satisfaction with respect to EGNOS services | 85% | 0% | 90% in 2027 | 85% compared to a target of 90% | On track |
| Share of Galileo-enabled receivers worldwide | 57% | 0% | 70% in 2027 | 57% compared to a target of 70% | On track |
| Share of EGNOS-enabled receivers worldwide | 63% | 0% | 65% in 2027 | 63% compared to a target of 65% | On track |
| EU user satisfaction with respect to Copernicus services and data and information access services | 90% | 0% | 98% in 2029 | 90% compared to a target of 98% | On track |

(\*) % of target achieved by the end of 2021. For the indicators with baseline values from the end 2021, % of progress target achieved will be shown as of 2022, when the 2022 results can be measured against the baseline of 2021.

EU satellite navigation component

–Galileo. No Galileo service disruptions occurred in 2021. Concerning the performance of Galileo Initial Services, the positioning and timing performance is better than for any other global navigation satellite system. The services are fully interoperable with the United States’ Global Positioning System (GPS), and their combined use is providing more accurate and reliable positioning for end users. Work is ongoing to improve the resilience of the Galileo system to ensure the uninterrupted availability of all services. The Galileo Open Service was delivered with excellent quality and availability. According to the Galileo Search and Rescue quarterly performance reports, in 2021 Galileo delivered excellent search-and-rescue services following the upgrade to full operational capability of the Return Link Service in March 2021. However, the programme did not meet key milestones relating to (1) the Open Service full operational capability and (ii) the improved Public Regulated Service. This was mainly due to COVID-19-related restrictions and delays. In particular, the Open Service full operational capability milestone was scheduled for the end of 2020, and is now planned for the end of 2022. This delay is not a major source of concern, as Galileo is already delivering services and very accurate signals through its operational satellites in orbit. The successful launch of another two satellites, carried out in December 2021, will further improve and reinforce Galileo’s performance in terms of service availability. Concerning the improved Public Regulated Service milestone, initially scheduled for the end of 2021, this is now planned for the end of 2023, with a risk of delay to 2024 due to issues affecting the deployment of the new Galileo infrastructure release, System Build 2.0. This delay is a source of potential concern because Member States need to plan defence investment in association with the use of this service. The Commission is engaging with Member States to keep them informed of risks associated with the delivery of this milestone. Concerning Galileo’s infrastructure, the space segment is stable, with 28 satellites in orbit. The manufacturing of additional satellites to complete the constellation and provide sufficient spares to ensure its continuity has continued, but with delays due to the COVID-19 crisis. Concerning the specific objective to provide long-term, state-of-the-art and secure positioning, navigation and timing services while ensuring service continuity and robustness, the increasing production of Galileo-enabled receivers indicates a positive trend, and the actual progress is in line with the targets set. In 2021, the presence of Galileo in receiver models stood at 64% of the total number of receiver models worldwide, while the key market segment was consumer devices (smartphones and tablets). Since 2016, the market uptake of Galileo-enabled smartphones has been very rapid. In 2021, the estimated number of Galileo-enabled smartphones sold worldwide exceeded 2.5 billion, and there were 895 Galileo-enabled smartphone and tablet models available on the market. Activities to support Galileo’s market uptake included the MyGalileoSolution initiative to foster the development of applications using Galileo signals and standardisation activities to ensure that Galileo is properly taken into consideration by standardisation bodies.

–EGNOS. EGNOS is fully operational, monitoring and correcting open signals emitted by GPS and, in the future, Galileo. By improving the accuracy to around 1 metre and the reliability of the GPS signal over Europe, EGNOS allows users in Europe to use GPS signals for safety-critical applications such as operating aircraft. EGNOS’s performance has improved steadily. The few territories that are not yet covered are envisaged to be covered with the launch of the EGNOS V3 technology around 2026. The continuous provision of EGNOS services was successfully achieved through the efficient implementation of recurrent activities and the preparation of system evolutions. These evolutions solve major obsolescence issues and improve the coverage of EU Member States’ territories. EGNOS’s key market segment is civil aviation. Currently, EGNOS is used by more than 769 airports in Europe (compared to 373 in 2019), and its usage is increasing. This is also thanks to the introduction of mandatory publication of localiser performance with vertical guidance delivered by EGNOS in all instrument runway ends before January 2024. With regard to the specific objective concerning the share of EGNOS-enabled receivers worldwide, EGNOS’s market share has stabilised at 63% of the total number of receiver models worldwide. This is because consumer solutions such as mobile phones are far less likely to be enabled for satellite-based augmentation systems (an uptake of only 45% in the fourth quarter of 2021) as such systems provide high accuracy but also involve energy costs due to continuous signal-in-space data reception. However, the low adoption rate in consumer solutions is compensated for by an almost 100% uptake in high-precision applications (such as agriculture and geomatics), while newer technologies such as drones also have a high level of uptake (94%) of satellite-based augmentation systems. Safety-of life applications benefit the most from EGNOS implementation in other segments, such as aviation, maritime, rail and road markets.

–In 2021, a European Court of Auditors’ special report assessed the measures taken by the Commission since 2014 to promote the uptake of services derived from Galileo and Copernicus, aimed at achieving the expected economic and societal benefits. The Commission accepted the Court’s four recommendations and is working towards delivering on them – the first one by 2023 and the rest by 2024.

EU Earth observation component

–Copernicus. In 2021, Copernicus continued to deliver successfully on its general and specific objectives. Robust and reliable Earth observation and monitoring data and information were provided on a full, free and open basis. Ground segment operations managed to continue activities while facing difficulties in operating remotely due to the COVID-19 crisis. The six Copernicus services (land, marine, atmosphere, climate change, emergency and security) continued their operations and activities to provide continuous and reliable geo-information, as demonstrated by the respective key performance indicators. Copernicus is reaching more than 497 286 registered users on the open hub, meeting users’ needs and attaining a high level of user satisfaction. The total number of Copernicus Sentinel data products available for download on the open hub by the end of third quarter of 2021 was 45 million. Copernicus successfully embraced the big-data revolution by setting up the Data and Information Access Services. The latter collocate Copernicus data and information and make them available online and near-line, ready to be processed on demand. The conventional data access infrastructure and the setting-up of the Data and Information Access Services have ensured that the entire Copernicus database meets the objective of being available on a free, full and open-data basis. The target of 100% excludes restricted products from emergency and security services. With regard to market uptake, the 2022 Earth observation and global navigation satellite system market report published by the European Union Agency for the Space Programme estimates that, over the next decade, revenues are set to double from roughly EUR 2.8 billion to over EUR 5.5 billion as the market for Earth observation applications is boosted by a large pool of added-value services (i.e. 85% of global revenue). DG Defence Industry and Space worked closely with the Joint Research Centre to set up the Knowledge Centre for Earth Observation. This centre ensures Copernicus’s uptake within/by 17 Commission user services and within cross-sectoral policy areas. In addition, the programme’s international dimension was reinforced through the conclusion of agreements with several countries.

2014-2020 multiannual financial framework – EGNOS and Galileo

Galileo is an EU large-infrastructure project and is entirely financed by the EU budget. It is the EU’s global satellite navigation system, and will ensure the continent’s autonomy in an area that is of strategic importance to both its economy and its security. Galileo is already widely used for a large number of purposes, including critical business processes that require uninterrupted navigation and timing services. The Galileo system consists of a satellite constellation and the necessary ground infrastructure to control the satellites and enable the provision of positioning, navigation and timing services. EGNOS is a fully operational regional satellite navigation system, monitoring and correcting open signals emitted by GPS, and in the future by Galileo. It consists of several transponders installed on geostationary satellites and a network of ground stations.

Budget implementation

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  |  | | --- | --- | | |  | | --- | | 6 841.4 | | | |  |  | | --- | --- | | |  | | --- | | 6 841.4 | | | |  | | --- | | 100% | |
| Payments | |  |  | | --- | --- | | |  | | --- | | 6 412.3 | | |  | |  |  | | --- | --- | | |  | | --- | | 94% | | |

–During the 2014-2020 multiannual financial framework, the EU satellite navigation programmes (Galileo and EGNOS) committed EUR 6 841 million, making full use of the appropriations made available and reaching 100% execution in terms of commitment appropriations. In terms of payment appropriations, payments made during that same period amounted to EUR 6 530 million, which represented a 95% rate of payment execution.

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Galileo infrastructure – operational satellites | 4 | 92% | 30 | 28 out of 30 | On track |

(\*) % of target achieved by the end of 2021.

–To ensure continuity during the transition from the old to the new multiannual financial framework, some core programme activities for EGNOS and Galileo, carried out in 2021, were financed under the previous multiannual financial framework budget. These activities focused in particular on the rolling operations of the ground and space infrastructure and the satellites deployed to ensure the continuous provision of services.

–With regard to the Galileo space infrastructure, two satellites were successfully launched in December 2021. The two satellites are undergoing in-orbit testing before their incorporation into the Galileo operational constellation, which will allow them to contribute to Galileo services in the second quarter of 2022. The next launch, of two satellites, was scheduled for April 2022, and a further two satellites were planned to be launched in the second semester of 2022. However, due to the crisis precipitated by the Russian invasion of Ukraine, these launches (which were scheduled to use Russian Soyuz rockets) will not take place as planned. Possibilities for use of alternative launchers are under investigation. In particular, as the programme intends to use the European Ariane-6 launcher in the near future, the development of a specific dispenser to carry the Galileo satellites on board Ariane-6 was initiated in 2019 and will be completed in 2022.

–On the Galileo ground infrastructure, work continued on the next system builds, which will support advanced features and improved system resilience. Despite delays incurred due to the COVID-19 pandemic, system release SB1.7 was deployed in advance of the satellite launch in December 2021. The new release meets all of the requirements relating to the deployment and operation of Galileo satellites.

–Activities for the development of a new generation of EGNOS – EGNOS version 3 – continued with the aim of extending EGNOS’s coverage to the 1-2% of EU landmasses not yet covered, i.e. the Azores (Portugal), the north-eastern part of Finland and eastern part of Cyprus. This is planned for around 2026.

2014-2020 multiannual financial framework – Copernicus

Copernicus is the EU’s Earth observation and monitoring system. It is a user-driven programme offering robust and reliable Earth monitoring data and information on a full, free-of-charge and open-access basis for six Copernicus information services: atmosphere monitoring, marine environment monitoring, land monitoring, climate change, emergency management and security. The services are provided to EU, national, regional and local institutions, and to actors in the private sector, researchers, non-governmental organisations and international organisations. Copernicus is building on the achievement of European autonomous access to environmental knowledge and the major role of the EU at the international level. Copernicus information services products are based on satellite Earth observation and in situ (non-space) data. The wealth of satellite data is provided by space infrastructure, mainly the Sentinel satellite missions developed under the programme. These are complemented by other missions for specific needs. In situ networks are managed by Member States and international bodies and are an essential and integral part of Copernicus, used by the Copernicus services and the space component to produce high-quality information products.

Budget implementation

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 4 251.4 | | |  | | --- | | 4 251.5 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 3 942.2 | |  | |  | | --- | | 93% | |

–During the 2014-2020 multiannual financial framework, Copernicus committed EUR 4 251 million, making full use of the available appropriations and reaching 100% execution in terms of commitment appropriations. In terms of payment appropriations, payments made during that same period amounted to EUR 3 942 million, which represents a 93% rate of payment execution.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Space infrastructure – satellites deployed |  | 100% | 8 | 8 out of 8 | On track |
| Number of services receiving in situ data |  | 100% | 6 | 6 out of 6 | On track |

(\*) % of target achieved by the end of 2021.

To ensure continuity during the transition from the old to the new multiannual financial framework, some core programme activities for Copernicus, carried out in 2021, were financed under the previous multiannual financial framework budget. These activities focused on the following points.

-The Copernicus cross-cutting in situ network, which produces quality-assured information and the maintenance of the Copernicus In Situ Information System and the Copernicus Reference Data Access Portal. This facilitated access to in situ data for service providers active in core service production.

-The Copernicus Sentinel-6 Michael Freilich satellite in-orbit commissioning review was completed in 2021. It established that with eight operational satellites in orbit, complemented by a ground infrastructure and in situ measurements, Copernicus’s monitoring capacities have been deployed successfully.

REGIONAL POLICY

COHESION FUND AND EUROPEAN REGIONAL DEVELOPMENT FUND

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 4.4 million  tonnes of CO2 equivalent were saved by the end of 2020. | 5.5 million  additional households had broadband access of at least 30 megabits per second by the end of 2020. | 238 000  jobs were created in supported enterprises by the end of 2020. | 52 million  people benefited from new or modernised health services by the end of 2020. |

\* Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance where results often follow only after completion of the programmes.

Budget for 2021-2027

Regional policy (million EUR)

|  |  |
| --- | --- |
| Financial programming | 262 066.6 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 262 066.6 |

(\*) Only Article 15(3) of the financial regulation.

Recovery Assistance for Cohesion and the Territories of Europe initiative (REACT-EU) (million EUR)

|  |  |
| --- | --- |
| Financial programming |  |
| NextGenerationEU | 31 458.2 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities |  |
| Total budget for 2021-2027 (\*\*) | 31 458.2 |

(\*) Only Article 15(3) of the financial regulation.

(\*\*) The total amount of Recovery Assistance for Cohesion and the Territories of Europe initiative (REACT-EU) represents an estimate.

Rationale and design of the programme

Cohesion policy programmes contribute to strengthening the economic, social and territorial cohesion in the EU. They aim to correct imbalances between countries and regions and deliver on the EU’s political priorities, especially the green and digital transition.

Challenge

Disparities show a generally decreasing trend among the EU regions based on the latest available data (2019), even though the pace of convergence was slower after the financial crisis of 2008. The COVID-19 pandemic may well exacerbate the existing disparities. These divergences threaten the cohesion and long-term sustainability of the EU and hinder the deployment of its full potential.

Tackling these challenges at the EU level is more effective than leaving it to the sole responsibility of Member States. First, EU-level action supports EU-wide priorities, such as ensuring that the EU’s post-COVID-19 recovery is geared to the green and digital transitions. Second, it incentivises closer application of EU legislation and critical structural reforms by Member States, in line with the country-specific recommendations emanating from the EU’s economic surveillance (European semester). Through its multiannual programming framework, the EU also provides stability, certainty and sustainability for investment plans, reducing their vulnerability across economic and political cycles and improving prospects for implementation on the ground. The EU can also support more intensive investments in less-developed and transition regions – which would otherwise not happen – generating spillovers to the rest of Europe, notably via increased connectivity and trade flows, thus supporting the development of the single market. Finally, EU action in this area feeds on and promotes interregional cooperation and the exchange of experience both cross-border and across the EU.

Mission

The Cohesion Fund (CF) and the European Regional Development Fund (ERDF) jointly constitute the EU’s regional policy. Together with the European Social Fund (ESF) and the Just Transition Fund, they constitute the EU’s cohesion policy. The CF and the ERDF aim to strengthen the economic, social and territorial cohesion of the EU by promoting sustainable development, particularly in less-developed regions.

The CF provides support to Member States with a gross national income per inhabitant below 90% of the EU average, notably by contributing to projects in the fields of environment and trans-European transport infrastructure networks.

The ‘place-based’ approach of the ERDF allows for the identification of specific development needs and, as a consequence, the definition of appropriate investment strategies aligned with both EU priorities and regional conditions.

These two funds are macroeconomically relevant: for the 2014-2020 period, the funding channelled by the policy was a primary source of public investment in many Member States. The policy also operates as a catalyst for public and private funding.

Objectives

The programmes have five EU high-level policy objectives.

5.A more competitive and smarter Europe, by promoting innovative and smart economic transformation and regional information and communications technology connectivity.

6.A greener, low-carbon transition towards a net zero carbon economy and resilient Europe, by promoting clean and fair energy transition, green and blue investment, the circular economy, climate change mitigation and adaptation, risk prevention and management and sustainable urban mobility.

7.A more connected Europe by enhancing mobility.

8.A more social and inclusive Europe, by implementing the European Pillar of Social Rights.

9.A Europe closer to citizens, by fostering the sustainable and integrated development of all types of territories and local initiatives.

Policy objectives 2 and 3 are proposed for the CF, while all objectives are proposed for the ERDF.

Actions

The CF and ERDF support investments in key priority areas. The ERDF, delivered through approximately 300 national, regional and interregional programmes, supports investments in infrastructure, productive investments in enterprises and public policies across a range of themes.

The CF, delivered in 15 Member States, mainly funds capital-intensive environmental and transport investments, predominantly through grants. Cohesion policy provides stable and predictable support to Member State investments while retaining the appropriate flexibility. This was demonstrated during the COVID-19 crisis, where the instruments were adapted via the coronavirus response investment initiative and coronavirus response investment initiative plus (CRII+) that were adopted by the co-legislators, mobilising much-needed support to the worst-affected sectors with unprecedented speed and flexibility.

Delivery mode

Both programmes are delivered through shared management, ensuring close coordination of investments with regional and local needs. DG Regional and Urban Policy is the lead on the ERDF and CF for the Commission.

LINK TO THE 2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK

For 2021-2027, the general approach under the 2014 2020 multiannual financial framework was maintained, including automatic decommitment three years after the budgetary year (the n + 3 rule). New and more ambitious objectives and features include: adjusted policy priorities; increased climate targets; increased flexibility during reprogramming and mid-term review; and reduced co-financing rates, stratified along the different types of regions (from 40% to 85% in the less developed regions).

Impact assessment

The impact assessment of the CF and the ERDF was carried out in 2018.

For further information, please consult: 
<https://europa.eu/!nG34XX>

WEBSITE FOR more information

<https://europa.eu/!fW37RX>
 

<https://europa.eu/!Du73NN>
 

<https://cohesiondata.ec.europa.eu/>

Legal basis

Regulation (EU) 2021/1060 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming of regional policy (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 261.7 | 43 436.4 | 44 457.2 | 45 704.8 | 46 990.1 | 39 923.5 | 41 292.9 | 262 066.6 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 0.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0.0 |

(\*) Only Article 15(3) of the financial regulation.

Budget programming of REACT-EU (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming |  |  |  |  |  |  |  |  |
| NextGenerationEU (\*\*) | 23 875.3 | 7 581.0 | 1.9 |  |  |  |  | 31 458.2 |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities |  |  |  |  |  |  |  |  |

(\*) Only Article 15(3) of the financial regulation.

(\*\*) The total amount of Recovery Assistance for Cohesion and the Territories of Europe initiative (REACT-EU) represents an estimate.

Cumulative implementation rate of regional policy at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | Budget | Implementation rate |
| Commitments | 260.8 | 262 066.6 | 0% |
| Payments | 37.6 |  | 0% |

Cumulative implementation rate of REACT-EU under regional policy at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | Budget | Implementation rate |
| Commitments | 24 038.4 | 31 458.2 | 76% |
| Payments | 4 926.4 |  | 16% |

Voted budget implementation of regional policy in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 260.8 | 33 942.5 |
| Payments | 37.6 | 1 483.9 |

–The adoption process of the 2021-2027 programmes has been slower than expected (see section 3.1 for more details). As a consequence, the whole 2021 allocation (EUR 34.9 billion) is to be reprogrammed in four equal tranches for the years 2022-2025. In the 2022 budget, the allocation for ERDF and CF together is EUR 35 billion (EUR 29.9 billion for ERDF, EUR 4.8 billion for CF) in commitment appropriations. Both the 2021 commitments and the first pre-financing payments for all of the multiannual financial framework instruments will take place once the new programmes for the 2021-2027 period are adopted. An amount of EUR 2.6 billion is available in payment appropriations for pre-financing.

Contribution to horizontal priorities

EU budget contribution of regional policy in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| 37.0 | 1 696.80 | Score 0\*: 260.8 |

EU budget contribution of REACT-EU under regional policy in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| 5 761.9 | 0 | 0 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions having gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Enterprises supported to innovate |  |  |  | No results | No data |
| Small and medium-sized enterprises supported to enhance growth and competitiveness |  |  |  | No results | No data |
| Additional dwellings and enterprises with broadband access of very high capacity |  |  |  | No results | No data |
| Savings in annual primary energy consumption |  |  |  | No results | No data |
| Additional production capacity for renewable energy |  |  |  | No results | No data |
| New, upgraded, reconstructed or modernised railways |  |  |  | No results | No data |
| Annual users of new or modernised facilities for employment services |  |  |  | No results | No data |
| New or modernised capacity for health care facilities |  |  |  | No results | No data |
| Population covered by strategies for integrated territorial development |  |  |  | No results | No data |

(\*) % of target achieved by the end of 2021.

 

–The 2021-2027 programmes have faced significant delays in implementation. Due to this, no performance information can be provided at this point, including milestones and targets. The targets for the programmes’ implementation will become available as soon as Member States have finalised the programmes (i.e. determined what will be financed by the ERDF and CF).

–In addition to disruptions due to the pandemic, several factors played into the programmes’ delays.

–The delayed agreement on the 2021-2027 multiannual financial framework and adoption of the legislative proposals for ERDF/CF meant that the Member State partnership agreements and programmes could only be officially submitted as from mid-2021.

–Recovery instruments supported by NextGenerationEU – in particular the most prominent financial instrument, the Recovery and Resilience Facility (RRF) – and their shorter spending horizons have often led to decisions at the national level to prioritise these programmes ahead of cohesion policy programmes (including ERDF/CF).

–NextGenerationEU grants and loans under RRF are expected to have an impact on the implementation of 2021-2027 cohesion programmes because of: the accelerated RRF delivery timetable; overlaps between important investment components; and the additional RRF incentive of 100% EU co-financing and a different delivery model based on financing that is not linked to costs.

–The 2014-2020 ERDF/CF programmes will continue until the end of 2023 under the n + 3 rule. The rule will also apply to most of the 2021-2027 period. It reduces pressure on national and regional programmes to implement promptly.

Budget for 2014-2020

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | 262 530.3 | 262 533.4 | 100% |
| Payments | 227 999.5 |  | 87% |

–At the end of December 2021, the overall implementation of the EU budget for the 2014-2020 period stood at 65% on average for CF and ERDF. In the first half of the 2014-2020 period, EU payments were modest, but broadly in line with the previous programming periods.

–This slow start was due to:

–the nature of cohesion policy investments, which have a long start-up phase (planning, programming, authorisations) without significant financial execution.

–the impact of the 2008-2010 financial crisis, which slowed the execution of 2007-2013 national and regional programmes, leading to the late completion of the programmes (in 2014 and 2015) overlapping with the start of the 2014-2020 programmes.

–the regulatory provisions of the 2014-2020 period (e.g. the level of pre-financing, the n + 3 decommitment rule), which did not provide incentives for a fast implementation start in Member States.

–However, the reported values generally show a strong upward progress in implementation by the end of 2021.

–In 2020 and 2021, there was a significant increase in EU payments, which was partly triggered by the progress in project selection rates in recent years. Moreover, the prompt cohesion policy response to the COVID-19 pandemic played an important role in the accelerated implementation of the funds. In particular, the CRII+ measures provided for 100% co-financing for expenditure declared during the accounting year 2020-2021, while the 2019 annual pre-financing amounts were not recovered in 2020, in order to ease budgetary pressure at national level.

–In addition to the CRII+ measures, the Commission proposed additional financing under REACT-EU. Over 2021-2023, the original 2014-2020 EU financing is topped up with EUR 50.4 billion (in current prices) under REACT-EU to finance crisis repair measures. This will contribute to a green, digital and resilient recovery of the economy by adding fresh additional resources to existing cohesion policy programmes.

–With regard to financial instruments, almost EUR 31 billion of ERDF and CF resources will be delivered through financial instruments by 2023, constituting over 8% of the overall EU allocation and creating an efficient and sustainable alternative to traditional grants.

–In 2022, the COVID-19-related economic crisis and the parallel implementation of other instruments (e.g. REACT-EU and the start of the 2021-2027 programming period) might affect implementation progress in some Member States. The addition of the REACT-EU resources during 2021, particularly the ongoing 2014-2020 programmes, has had a dilution effect on the relative pace of financial implementation due to the increased base amount.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target  (2023) | Results | Assessment |
| Researchers working in improved research infrastructure facilities | 0 | 52%  Estimated: > 100% | 85 390 in 2023 | 44 800 (estimated result: 112 300) out of 85 390 | On track |
| Enterprises receiving support | 0 | 80%  Estimated: > 100% | 1.8 million in 2023 | 1.4 million (estimated result: 2.0 million) out of 1.8 million | On track |
| Additional employment (jobs created) in supported enterprises | 0 | 66%  Estimated: > 100% | 361 900 in 2023 | 238 300 (estimated result: 451 700) out of 361 900 | On track |
| Population covered by improved health services | 0 | 78%  Estimated: > 100% | 66.5 million in 2023 | 52.0 million (estimated result: 88.0 million) out of 66.5 million | On track |
| Additional capacity of renewable energy production (ERDF + CF) | 0 | 41%  Estimated: > 100% | 6 699 in 2023 | 2 735 (estimated result: 7 387) out of 6 699 | On track |
| Population benefiting from forest fire protection measures (ERDF + CF) | 0 | 54%  Estimated: > 100% | 29.7 million in 2023 | 16.1 million (estimated result: 35.1 million) out of 29.7 million | On track |
| Households with an improved energy consumption classification (ERDF + CF) | 0 | 59%  Estimated: > 100% | 603 300 in 2023 | 357 850 (estimated result: 663 000) out of 603 300 | On track |
| Trans-European transport networks – total length of new and reconstructed railway lines (ERDF + CF) | 0 | 30%  Estimated: < 100% | 3 639 in 2023 | 1 082 km (estimated result: 3 051) out of 3 639 | Deserves attention |
| Total length of new or improved tram and metro lines (ERDF + CF) | 0 | 29%  Estimated: > 100% | 478 in 2023 | 137 (estimated result: 542) out of 478 | On track |

(\*) % of target achieved by the end of 2020.

–Generally, the reported values show a strong upward trend in implementation by the end of 2020 and a plausible relationship between the indicator targets and values from selected projects. This means that most indicator targets set for 2023 will likely be met, thanks to projects that are already in the pipeline.

–One of the indicators which deserves attention is linked to large infrastructure projects in Trans-European transport networks. The implementation of the 2014-2020 programming period lasts until 2023, so the 2020 achievement values refer to the situation at the seventh year of a 10-year implementation cycle. Experience from 2007-2013 shows that many infrastructure investments are fully implemented only by the end of the period.

–By the end of 2021, overall project selection was at nearly 100% of planned investment everywhere, except for the REACT-EU resources that were only added to the programmes in 2021. EU interim payments were at 64% for ERDF and 70% for CF. High project selection rates do not automatically translate into prompt expenditure. Expenditure is slower to materialise for projects that are still in the planning or procurement stage, projects with multiannual implementation periods or projects that are otherwise immature.

–For some indicators with more important gaps between the decided and implemented values, the forecast indicator values from selected projects are close to or exceed the target values, raising the prospect that the targets could still be achieved. In many of these cases, the high level of project selection is expected to translate into achieved outputs only late in the period. This phenomenon of late achievement of indicator values was demonstrated by the trend in reporting in the 2007-2013 period. The 2020 reporting exercise suggested that at the end of 2020, many of the 2023 targets for those indicators could still be achieved.

–EU legislation allows for programme amendments during the implementation period. Target values are mainly driven by changes in national or regional needs, changing economic conditions, variability in demand for different supports and the reallocation of funding within and across themes.

–The impact of the COVID-19 pandemic led to increased uncertainty and sharp changes in needs. A wave of programme modification in 2020 and 2021 led to a rise in some common indicator targets, particularly in the areas of enterprise support linked to crisis support during the pandemic. However, the uncertain socioeconomic conditions, reduced demand, high unemployment and uncertain prospects for the relaunch of the economy mean that the Commission will continue to carefully monitor the programmes until closure.

–In response to COVID-19, the Commission proposed specific measures to broaden the list of eligibility measures in the healthcare systems to support the public health response in Member States and to encourage reprogramming in other sectors of their economy, while providing exceptional flexibility for the use of the ESF funds under CRII+. Specific measures adopted in CRII+ have enabled Member States to mobilise support from ERDF, ESF and CF and focus it on the most urgent needs (saving lives, preventing job losses through short-time work schemes and supporting small and medium-sized enterprises).

–In relation to the reprogramming to support the immediate response to the pandemic and its effects, new COVID-19-specific indicators were introduced to give an insight into the supported actions and their outputs. The progress in delivering the targets set by the end of 2020 was reported to the Commission for the first time during 2021. Many ERDF programmes were in a position to report values on the implementation of pandemic measures. However, many 2020 implementation values appear to be under-reported. Commission services therefore see the 2020 implemented values for COVID-19 indicators as giving a preliminary picture to be completed in future reporting rounds.

–The indicators used for the ERDF and CF performance assessment only provide a snapshot of the programme. For more in-depth information, the cohesion policy programmes report on their results through the Open Data Platform at 
<https://cohesiondata.ec.europa.eu/>

TURKISH CYPRIOT COMMUNITY

EU AID PROGRAMME FOR THE TURKISH CYPRIOT COMMUNITY

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 263  kilometres of water supply distribution networks were renewed. | 2 700  small and medium-sized enterprises and start-ups received grants. | 1 800  Turkish Cypriots were given educational opportunities in Member States through EU scholarships. | 800  businesses were assisted with COVID-19 emergency measures. |

(\*) Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 241.0 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 241.0 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The programme aims to facilitate the reunification of Cyprus by encouraging the economic development of the Turkish Cypriot community.

Challenge

The application of the acquis is suspended in those areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control.

The programme aims to facilitate the reunification of Cyprus through socioeconomic and confidence‑building measures. It supports economic integration, improved living standards and the preparation of the Turkish Cypriot community to introduce and implement the EU acquis in the eventual lifting of this suspension.

Due to legal and political difficulties in dealing with the de facto divided island, individual Member States can only provide very limited support to Turkish Cypriots, who are EU citizens. Hence the importance of EU action in this area. Consistent with the special circumstances on the ground, this assistance programme is of an exceptional, transitional and temporary nature. The programme can only be revised if reunification is achieved during the multiannual financial framework period.

Mission

The programme is the only EU fund for the Turkish Cypriots, who are EU citizens. Other assistance is difficult, due to difficult legal and political circumstances in the de facto divided island.

The programme supports reunification efforts and prepares the Turkish Cypriots for the lifting of the suspension of the application of the acquis in those areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control.

The EU contribution in supporting the political process, economic integration and improved living standards is vital, including the economic development of the Turkish Cypriot community in order to facilitate the reunification of Cyprus.

Objectives

The programme has the following specific objectives:

­developing and restructuring of infrastructure;

­promoting social and economic development;

­fostering reconciliation, confidence-building measures and support to civil society;

­bringing the Turkish Cypriot community closer to the EU;

­preparing the Turkish Cypriot community to introduce and implement the acquis, in view of lifting its suspension in accordance with Article 1 of Protocol No 10 to the act of accession.

Actions

Amidst major difficulties due to the unique diplomatic, legal and political context, the programme remains ready to accommodate developments in the settlement process and to finance confidence‑building measures resulting from this process.

Delivery mode

The programme is implemented through direct management (procurement contracts and grants) and indirect management (contribution agreements with international organisations and Member State agencies). DG Structural Reform Support is the lead for the programme implementation.

LINK TO THE 2014-2020 Multiannual Financial Framework

The programme is a continuation of its predecessor.

Impact assessment

WEBSITE FOR more information

<https://europa.eu/!WN64dq>

Legal basis

Council Regulation (EC) No 389/2006.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 32.0 | 34.3 | 33.6 | 34.3 | 35.0 | 35.7 | 36.2 | 241.0 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities |  |  |  |  |  |  |  |  |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + 48.0 (+ 25%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 32.0 | | |  | | --- | | 241.0 | | |  | | --- | | 13% | |
| Payments | |  | | --- | | 3.9 | |  | |  | | --- | | 2% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 32.0 | 32.0 |
| Payments | 3.9 | 4.9 |

–The assistance programme is of an exceptional, transitional and temporary nature, aiming to facilitate the reunification of Cyprus. The aid regulation reflects this particularity: it was adopted in 2006 and remains in force until a comprehensive settlement of the Cyprus problem has been achieved.

–The programming of the financial assistance under the programme is based on a number of established criteria such as project maturity, policy relevance and the track record of past implementation. The underlying aim is to bring more tangible and visible impact in the priority areas through an annual programming that results in a streamlined and compact set of actions.

–Under the programming approach, the beneficiary is involved at an early stage, which includes the submission of 1-page project outlines and a series of direct exchanges. Continuing efforts are being made to instil more ownership in the process from the beneficiary coordinating body, the EU coordination centre, which takes a more active role in prioritisation and self-assessment of projects.

–The 2021-2027 multiannual financial framework sets the funding at EUR 240 million. The 2021 annual action programme was adopted on 16 December 2021, meaning that no projects were actually implemented in 2021.

–The programme’s context often hinders proper implementation due to the difficult political and social situations on the ground. Throughout the previous multiannual financial framework, successful strategies were developed to address this issue, which will help with timely implementation during the 2021-2027 multiannual financial framework.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| 0 | 0 | Score 1: 0.5  Score 0\*: 31.5 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions having gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Cross-green-line trade volume in process of progressive increase | 0 | 11% (\*\*) | EUR 9.0 million in 2029 | Milestone achieved in 2021. EUR 6.2 million compared to a milestone of EUR 5.0 million | On track |
| Number of civil society organisations having received EU support in the form of a grant | 0 | 23% | 52 in 2029 | 12 organisations compared to a target of 52. | On track |
| Number of individuals having benefited from a scholarship | 0 | 11% (\*\*) | 145 in 2027 | Milestone achieved in 2021. 136 individuals compared to a milestone of 131 | On track |

(\*) % of target achieved by the end of 2021.

(\*\*) % of years for which the milestone or target has been achieved during the 2021-2029 period.

–The programme is implemented in a territory whose existence is not recognised internationally (with the exception of Turkey) and whose ‘institutions’ should therefore not be strengthened. This means that the Commission is operating with perennially weak partners and this negatively affects the efficiency and effectiveness of our intervention.

–The paradox is that such institutions often have an important role in implementing the policies required for closer integration with the EU acquis, particularly in areas such as animal health and food safety. This unique situation has a certain number of consequences when it comes to programme implementation, including the following.

–Property rights have to be respected when it comes to works contracts. This limits the scope of our intervention in terms of geographical areas,. In addition, the procedure for property clearance (via the Ministry of Foreign Affairs of the Republic of Cyprus) is long and cumbersome and is delaying the implementation of our works contracts.

–For almost 10 years, the EU has supported the Turkish Cypriot community with a number of projects related to improving solid waste management, with an overall investment exceeding EUR 30 million. However, major problems remain. The sector is poorly managed and still not socially, financially and environmentally sustainable. Accordingly, the Commission is conducting an overall independent and critical assessment of the past performance of all EU-funded interventions in the waste sector in the Turkish Cypriot community. Depending on the results of this evaluation, the Commission may decide to adopt a more conservative approach with regard to financing future interventions in the field of waste.

–In the animal health and food safety policy area, the progress in practical implementation of EU standards relies on prior enforcement of relevant legal texts. These, however, are not prioritised in the adoption plan of legal texts by the Turkish Cypriot community, hindering progress and resulting in long delays.

–In an attempt to overcome the challenges explained above, the programme choices reflect a renewed approach towards bringing more tangible and visible impact in the priority areas. The overarching aim is that the proposals that are presented follow a strategic approach based on the key programming principles.

–The modifications will address an improvement in political priority and ownership, finalising projects (i.e. project maturity) through good implementation track records, and sequencing and streamlining the project pipeline appropriately.

–Since the first projects under the 2021-2027 multiannual financial framework for the programme will only start implementation in 2022, it is too early to make a meaningful performance assessment.

–The key monitoring indicators have been amended for the 2021-2027 period in order to better target the achievements of the programme, notably in order to render them as tangible and concrete as possible.

  

MULTIANNUAL FINANCIAL FRAMEWOK 2014-2020 – TURKISH CYPRIOT COMMUNITY

The Programme aims to facilitate the reunification of Cyprus by encouraging the economic development of the Turkish Cypriot community.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 235.5 | | |  | | --- | | 235.5 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 211.5 | |  | |  | | --- | | 90% | |

–The programme’s implementation difficulties have existed since its inception, including for the period 2014-2020.

–The major difficulties encountered in the implementation of the programme arise from the unrecognised status of the beneficiary and from disputes with contractors, notably when it comes to works contracts. These challenges are further exacerbated by the lack of absorption capacity and resources on the beneficiaries’ side and by deficiencies in available data and statistics.

–This often results in serious delays in the preparation of projects and in bringing them to maturity. During the 2014-2020 multiannual financial framework, this led to a substantial amount of uncommitted funds.

–This backlog was successfully addressed through better programming, more efficient handling of tendering procedures and smoother internal procedures and coordination within DG Structural Reform Support. The situation is now fully under control.

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of enterprises having received EU support in the form of a grant | 0 | 90% | 2 000 in 2021 | 2 704 enterprises supported in 2021 compared to 3 000 enterprises initially planned | On track |
| Cross-Green Line trade volume (in million EUR) | 3.4 million | > 100% | 5.0 million in 2021 | EUR 6.2 million compared to a target of EUR 5.0 million | On track |
| EU visibility in northern Cyprus: number of communication actions in a year | 49 | > 100% | 250 in 2021 | 394 actions achieved compared to a target of 250 | On track |

(\*) % of target achieved by the end of 2021.

–The programme is considered to be on track for the areas of intervention. However, its ultimate success will depend on the will of both sides in the Cyprus dispute to arrive at a settlement. This is a sine qua non for success. The programme assumes that such a willingness to arrive at a solution exists and is building the capacity of the Turkish Cypriot side to integrate in a bi-communal and bi-zonal federation, with adoption of the EU acquis.

–As a particular achievement, the programme succeeded in the efforts to declare Halloumi/Hellim as a product of protected origin. The Commission will financially support the implementation of the Halloumi/Hellim package, adopted in April 2021 in the Turkish Cypriot community, with the stated intention of allocating up to EUR 40 million to this end over the next four financial years, with EUR 7.5 million already allocated under the 2021 programme and a provisionally earmarked envelope of EUR 7.8 million in the 2022 programme. This comes on top of the more than EUR 30 million for Halloumi/Hellim projects relevant to products of protected origin under the programme in previous years. This assistance will target traceability of the animals concerned, the eradication of animal diseases and hygienic production methods. The projects concerning Halloumi/Hellim brought together both of the Cypriot communities.

–The EU continued to implement EUR 15.2 million worth of support to the Turkish Cypriot community. In 2020, this was allocated to combat COVID-19 (EUR 5 million) and to assist businesses in weathering the negative socioeconomic impact of the pandemic (EUR 10.2 million). In 2021, experts continued to provide advice, including on elaborating a vaccination strategy, and the Commission continued to implement economic support packages providing emergency relief and encouraging economic stability. Overall, approximately 2 300 small businesses and industries have received grants of an average EUR 1 500 each, while 86 larger small and medium-sized enterprises are in the process of receiving up to EUR 60 000, based on growth plans to safeguard and create employment, innovate and advance on the green/digital transitions.

–For objective 1, ‘Developing and restructuring of infrastructure’, 260 kilometres of water supply networks and some 100 kilometres of sewerage pipes have been financed through the programme. Of particular importance is the Famagusta sewerage system, for which an initial work contracts of approximately EUR 10 million had already been concluded in 2009. As a consequence of the initial construction being riddled with defects, the Commission decided to build a parallel network. A contract has been awarded for approximately EUR 20 million. The implementation started in 2021, following clearance from the Republic of Cyprus on the use of the land and the validation of the ‘design visa’ by the Turkish Cypriot chamber of civil engineers.

–As a part of objective 2, ‘Promoting social and economic development’, 286 rural development grants were concluded for approximately EUR 32.3 million and 200 farmers received training in husbandry practices to improve water use efficiency and farm hygiene, enabling them to upgrade their material and to secure their survival in a difficult and closed economic environment.

–However, access to credit remains difficult for Turkish Cypriots. The programme has supported the promotion of innovation, growth and job creation through more than 2 700 grants to small and medium-sized enterprises and start‑ups, complemented by building capacity. The grant scheme for small and medium-sized enterprises allowed them to benefit from EU support, enabling them to improve their competitiveness and thereby ensuring their survival in a difficult economic environment.

–Under objective 3, ‘Fostering reconciliation, confidence-building measures and support to civil society’, more than 107 cultural heritage sites have been conserved, structurally supported, physically protected or restored across the island with EU funding. The programme supports strengthening civil society as a key factor in developing a culture of dialogue, participation in community life and promotion of the values of tolerance, peace and active citizenship – along with reconciliation, a closer relationship and trust between the Turkish Cypriot and Greek Cypriot communities.

–In addition, the programme supported a significant number of researchers and students with grants and scholarships and increased the uptake of the EU acquis into Turkish Cypriot law.

–Despite the good performance of the programme – which met all of its quantitative targets – trust in the EU as an institution among Turkish Cypriots is declining. This can be attributed to the absence of concrete progress in the resolution of the Cyprus problem and to the perception in the Turkish Cypriot community of the EU siding with the Republic of Cyprus on many issues, including hydrocarbons. The situation deteriorated even further in 2020, due to the COVID-19 pandemic and the perception in the Turkish Cypriot community that the EU was not active enough – despite an economic emergency package (EUR 10.2 million) to help address the broader socioeconomic impacts of the COVID-19 pandemic in the community.

RRF

RECOVERY AND RESILIENCE FACILITY

Programme in a nutshell

Concrete examples of achievements

|  |  |  |  |
| --- | --- | --- | --- |
| 22  RRPs were adopted as of 31 December 2021. | 40%  is the share of the total financial allocation of the 22 adopted RRPs contributing to climate objectives (compared to a 37% target). | 26%  is the share of the total financial allocation of the 22 adopted RRPs contributing to digital objectives (compared to a 20% target). | The 1st  payment was disbursed to Spain on 27 December 2021. All 52 milestones included in this first payment request have been fulfilled (\*). |

(\*) The latest information on fulfilled milestones and targets and payments made is available on the recovery and resilience scoreboard at https://ec.europa.eu/economy\_finance/recovery-and-resilience-scoreboard/index.html

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 0 |
| NextGenerationEU non-repayable support | 337 969.0 |
| NextGenerationEU loans (\*) | 153 876.2 |
| Decommitments made available again (\*\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 (\*\*\*) | 491 845.2 |

(\*) Loans committed in 2021 for adopted plans. The available budget for 2021-27 for loans is EUR 385 855.2

(\*\*) Only Article 15(3) of the financial regulation.

(\*\*\*) The total available budget for 2021-27 includes loans committed in 2021 for adopted plans. This total will be updated yearly if loans are committed in subsequent years.

Rationale and design of the programme

The Recovery and Resilience Facility (RRF) is a funding programme with the objective to promote cohesion by mitigating the economic and social impact of the COVID-19 crisis and make EU economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions.

Challenge

The COVID-19 pandemic necessitated an urgent and coordinated response both at the EU level and the national level, in order to respond to the enormous economic and social consequences (as well as asymmetrical effects) for the Member States, which would have led to higher divergences and inequalities in the EU.

NextGenerationEU, the EU recovery instrument, supports the EU’s recovery from the COVID-19 crisis and strengthens resilience against future shocks. The RRF is its centrepiece as an unprecedented EU programme for an unprecedented time. The RRF provides a mid- to long-term response to help the recovery and build institutional capacity through reforms and investments to be implemented by the Member States until 2026, with an impact lasting well beyond this period.

The crisis is likely to have different long-term effects on Member States, depending on their starting position, the severity of their pandemic situations, their economic resilience and their ability to take adequate measures on their own. The medium- and long-term consequences of the COVID-19 crisis critically depend on how quickly Member State economies and societies will recover from the COVID-19 crisis, which in turn depends on the available fiscal space of Member States to take measures to mitigate the social and economic impact of the crisis – and on the resilience of their economies and social structures.

Sustainable and growth-enhancing reforms and investments are essential to set the Member State economies back on track and reduce inequalities and divergences in the EU.

An initiative of the scale of the RRF must be forward looking: the RRF aims not just to rebuild the EU economy and strengthen resilience, but also to ensure a sustainable recovery that mitigates the economic and social impact of the crisis and advances the green and digital transitions, all while fostering economic convergence and resilience.

Mission

As the centrepiece of the NextGenerationEU, the RRF promotes economic, social and territorial cohesion, job creation and sustainable growth, as well as resilience and preparedness for the future. It offers large-scale financial support for public investments and reforms across the fields of public policy signified by the six pillars of Article 3 of the RRF regulation: green transition; digital transformation; smart, sustainable and inclusive growth; social and territorial cohesion; health, and economic, social and institutional resilience; and policies for the next generation, children and youth. Indirectly, the RRF also provides funding for private investments, channelled through public schemes.

Crucially, at least 37% and 20% of the financial allocation of each Member State will respectively support green and digital investment and reforms.

The RRF is financed through EU borrowing as set out in Regulation (EU) 2020/2094 (the ‘EURI regulation’). Payments to Member States can take place up to 31 December 2026 for both non-repayable financial support and loan support. Budgetary commitments will be made upon approval of the plans by the Council and the signature of the financing and (where relevant) loan agreements, as well as an operational arrangement detailing monitoring mechanisms, with the respective Member State. Payments will be made once the Member State satisfactorily fulfils the related milestones and targets and can be disbursed up to twice per year.

Objectives

The specific objective of the RRF is to provide Member States with financial support. Each Member State submits a Recovery and Resilience Plan (RRP) detailing reforms and investments it plans to implement. Each disbursement is subject to the Member State’s satisfactory fulfilment of a set of milestones and targets, which in turn are linked to the specific reforms and investments set out in the RRP.

Actions

The RRF will provide non-repayable financial support (‘grants’) as well as repayable financial support (loans) to Member States to support the public investments and reforms set out in the national RRPs.

Delivery mode

The RRF will be implemented by the Commission in direct management in accordance with the financial regulation.

LINK TO THE 2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK

The RRF is a novel instrument – indeed a historic one. As such, there are no precursors for it in the 2014-2020 multinational financial framework.

Impact assessment

WEBSITE FOR more information

RRF website: 
<https://europa.eu/!jt78Jr>

Recovery and resilience scoreboard: 
<https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/index.html>

Legal Basis

Regulation (EU) 2021/241 of the European Parliament and of the Council.

Commission Delegated Regulations (EU) 2021/2105 and (EU) 2021/2106 supplementing Regulation (EU) 2021/241.

Implementation and performance

Budget Implementation

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming |  |  |  |  |  |  |  |  |
| NextGenerationEU  grants | 116 069.6 | 118 391.4 | 103 463.3 | 11.4 | 11.5 | 11.5 | 10.4 | 337 969.0 |
| NextGenerationEU loans (\*) | 153 876.2 |  |  |  |  |  |  | 153 876.2 |
| Decommitments made available again (\*\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities |  |  |  |  |  |  |  |  |

(\*) Loans committed in 2021 for adopted plans. The available budget for 2021-27 for loans is EUR 385 855.2

(\*\*) Only Article 15(3) of the financial regulation.

(\*\*\*) The total available budget for 2021-27 includes loans committed in 2021 for adopted plans. This total will be updated yearly if loans are committed in subsequent years.

Cumulative implementation rate (excluding loans) at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | Budget | Implementation rate |
| Commitment | |  | | --- | | 98 034.0 | | |  | | --- | | 491 845.3 | | |  | | --- | | 20% | |
| Payments | |  | | --- | | 46 374.6 | |  | |  | | --- | | 9% | |

–By 31 December 2021, 26 Member States had formally submitted their RRPs, 22 of which were positively assessed by the Commission and endorsed by the Council.

–Following the adoption of the RRPs and the signature of the necessary financing agreement and, where relevant, a loan agreement, in 2021 the Commission disbursed EUR 54.3 billion as pre-financing to 20 Member States: EUR 36.4 billion in the form of grants and EUR 18 billion in the form of loans, allowing for the implementation of the plans.

–Still in 2021, the Commission disbursed a first payment of EUR 10 billion in grants to Spain following the fulfilment of 52 milestones and targets. In addition, three other Member States submitted their first payment requests (Greece, France, Italy).

Contribution to horizontal priorities

EU budget contribution (including loans) in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 99 133.1 | | 6 255.5 | Score 0\*: 251 907 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions; 

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Savings in annual primary energy consumption |  |  |  |  | No data |
| Alternative fuels infrastructure (refuelling/recharging points) |  |  |  |  | No data |
| Additional dwellings with internet access provided via very high capacity networks |  |  |  |  | No data |
| Users of new and upgraded public digital services, products and processes |  |  |  |  | No data |
| Enterprises supported (of which small – including micro, medium, large) |  |  |  |  | No data |
| Number of participants in education or training |  |  |  |  | No data |
| Capacity of new or modernised health care facilities |  |  |  |  | No data |
| Number of young people aged 15-29 receiving support |  |  |  |  | No data |

(\*) % of target achieved by the end of 2021.

–About 40% of the total allocation of the 22 RRPs is related to measures supporting climate objectives. All RRPs reach – and some RRPs exceed – the 37% climate target set in the regulation by a substantial margin. The total climate expenditure in the 22 adopted plans amounts to EUR 177.4 billion.

–Aggregating over the adopted plans, the reforms and investments proposed by Member States in support of digital objectives represent EUR 117 billion, or about 26% of the total plan allocation – thus comfortably exceeding the 20% target set in the regulation for each RRP.

–The first biannual reporting by the 22 Member States with an adopted plan shows a positive picture regarding implementation: 91% (266) of the milestones and targets with an indicative date of completion up to the third quarter of 2021 were reported as ‘completed’ and only 9% (25) as not yet completed. All milestones and targets for which a payment request was submitted were reported as completed. Among the milestones and targets with an indicative date of completion in the near future (up to the third quarter of 2022), only 4% (41) were reported as delayed, while 80% (741) were ‘on track’ and 15% (139) were reported as ‘completed’ well ahead of time.

–On 15 December 2021, the Commission launched the 
[recovery and resilience scoreboard](https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/health.html)
, an online platform accessible to the public. The scoreboard is a performance reporting tool for the facility and transparently displays information on the implementation of the RRF and the individual RRPs.

–Commission Delegated Regulation (EU) 2021/2106 defines a set of common indicators related to the objectives of the RRF and linked to the six policy pillars. As the RRF is by its nature performance based, the common indicators serve a different purpose than those for other programmes. They are designed to show key results of the implementation of the RRPs towards common objectives and thereby demonstrate some aspects of the overall performance and impact of the RRF. The indicators cover a variety of policy areas addressed in the national RRPs. They all start with a baseline of 0 and do not have pre-defined targets. Member States report on the common indicators twice a year and the Commission calculates an aggregate for the RRF on this basis. Data on the common indicators will be published on the recovery and resilience scoreboard.

TSI

TECHNICAL SUPPORT INSTRUMENT

Programme in a nutshell

Concrete examples of achievements

|  |  |  |  |
| --- | --- | --- | --- |
| 512  requests were received by 27 Member States under TSI 2022. | 176  Technical Support Instrument (TSI) reform projects corresponding to 225 requests were selected under TSI 2022. | 18  multi-country projects were selected under TSI 2022, translating into 66 projects in the Member States. | 57%  of the projects selected under TSI 2022 will contribute to the preparation or the implementation of the Recovery and Resilience Facility. |

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 864.4 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 864.4 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

With the Technical Support Instrument (TSI), the European Commission will accompany Member States’ efforts to tackle reform challenges by offering them technical expertise to enhance their capacity to carry out reforms and to foster the exchange of good practices across the EU.

Challenge

The outbreak of the COVID-19 pandemic has changed the economic outlook for years to come in the EU and in the world. The effects of the crisis in the medium and long term will depend on the resilience of the Member State economies. There is a need to strategically plan the recovery, revitalise our economies and return to the path of sustainable and inclusive growth, geared towards the green transition and digital transformation objectives.

Smart, sustainable and socially responsible reforms can help to strengthen the resilience of our economies and societies. They contribute to keeping our economies flexible and competitive and help to improve the quality of public services. Moreover, given that the economies of Member States are strongly intertwined, the successful implementation of well-designed reforms in each Member State benefits the EU as a whole.

However, the process of designing, developing and implementing reforms is complex and Member States have different levels of in-house expertise and capacity to tackle it. Strengthening Member States’ institutional and administrative capacity to design and implement reforms is essential.

In line with the subsidiarity and proportionality principles, EU intervention can bring added value by offering strengthened technical support for the design and implementation of the resilience enhancing reforms. This support helps to increase the capacity of Member States to carry out their national reforms, in line with overall EU objectives.

Mission

The TSI is the main EU funding programme providing technical support to Member States in their reform agendas.

The general objective of the TSI is to promote the EU’s economic, social and territorial cohesion by supporting Member States’ efforts to implement the necessary reforms to achieve economic and social recovery, resilience and upward economic and social convergence.

These reforms may be either identified in the European semester process of economic policy coordination, or by the Member States’ own initiative. They can be in a broad range of policy domains, including public financial and asset management, institutional and administrative reform, business environment, the financial sector, markets for products, services and labour, education and training, sustainable development, public health and social welfare. Specific emphasis will be given to actions that foster the green and digital transitions.

The instrument also provides technical support to Member States for the preparation and implementation of their recovery and resilience plans in the framework of the new Recovery and Resilience Facility.

Objectives

The TSI has the specific objectives of assisting national authorities in improving their capacity to:

­design, develop and implement reforms;

­prepare, amend, implement and revise recovery and resilience plans pursuant to Regulation (EU) 2021/241.

These objectives shall be pursued in close cooperation with the Member States, including through the exchange of good practices, processes and methodologies, stakeholder involvement where appropriate and a more effective and efficient human resources management.

Actions

The types of actions eligible for financing under the TSI include the following:

–expertise related to policy advice/change, formulation of strategies and reform roadmaps and legislative, institutional, structural and administrative reforms;

–the short-term or long-term provision of experts, to perform tasks in specific domains or to carry out operational activities;

–capacity building and related supporting actions at all governance levels, also contributing to the empowerment of civil society.

Delivery mode

The TSI is mainly implemented under direct management, in particular through grants and procurements, but also through internal expertise. In some cases, it is implemented through indirect management, entrusting tasks to international organisations or other bodies in accordance with the financial regulation. DG Structural Reform Support is in the lead for the Commission.

LINK TO THE 2014-2020 Multiannual Financial Framework

The TSI is the successor of the Structural Reform Support Programme, with a larger budget and broader scope. The TSI is consistent, coherent and complementary to the other EU programmes that support capacity-building and technical assistance.

Impact assessment

The impact assessment of the proposal for a regulation on the establishment of the TSI was carried out in 2018.

For further information, please consult: 
<https://europa.eu/!jH84Np>

WEBSITE FOR more information

<https://europa.eu/!DU64hd>

Legal basis

Regulation (EU) 2021/240 of the European Parliament and of the Council.

Implementation and performance

Budget implementation

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 116.4 | 118.7 | 121.1 | 123.5 | 126.0 | 128.5 | 130.4 | 864.4 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities |  |  |  |  |  |  |  |  |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + EUR 0.4 million (+0%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitment | |  | | --- | | 116.1 | | |  | | --- | | 864.4 | | |  | | --- | | 13% | |
| Payments | |  | | --- | | 26.4 | |  | |  | | --- | | 3% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 116.1 | 116.4 |
| Payments | 26.4 | 59.2 |

–The TSI is the successor of the 2017-2020 Structural Reform Support Programme and part of the instruments mobilised by the Commission to respond to the aftermath of the COVID-19 pandemic, in particular to help Member States strengthen their resilience and the structural capacities of their administrations.

–For the 2021-2027 multiannual financial framework, the TSI has a higher budget over the whole period of the framework and a larger scope, including support for preparing and implementing the recovery and resilience plans at the national level. The TSI is consistent, coherent and complementary to the existing resources for capacity-building and technical assistance that are available within other EU financing programmes.

–13% of the total envelope for the 2021-2027 period was committed in 2021, which is in line with the financial programming.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 28.3 | | 0 | Score 0\*: 116.1 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Cooperation and support plans concluded | 0 | 14% | 20 annually | Milestone achieved in 2021. 27 compared to a milestone of 20 | On track |
| Number of support measures | 0 | 14% | 147 in 2027 | Target achieved in 2021. 262 compared to a target of 147 | On track |
| The objectives set in the cooperation and support plans, which have been achieved due, inter alia, to the technical support received | 0 |  | 70% annually | No results | No data |

(\*) % of years for which the milestone or target has been achieved during the 2021-2027 period.

–In 2021, the TSI supported Member States’ efforts to design and implement resilience enhancing reforms. It also contributed to the EU’s recovery from the COVID-19 crisis, improving the quality of public services and helping to get the Member States back on the path of sustainable and inclusive growth.

–The TSI is also an important pillar of the recovery plan for Europe, the EU’s initiative to help Member States mitigate the economic and social consequences of the COVID-19 crisis. The TSI directly supports Member States for the implementation of their recovery and resilience plans .

–Beyond the recovery and resilience plans, DG Structural Reform Support continued to support Member States in the implementation of key EU priorities such as the green and digital transitions. In addition to the traditional technical support under the TSI, some Member States have asked for further support through the transfer of national funds.

–As a result of the TSI 2022 round, 27 Member States submitted 512 requests for support with a total estimated value of EUR 230 million. DG Structural Reform Support identified 176 projects for funding covering 225 selected technical support requests. The selection followed a thorough prioritisation exercise carried out according to the TSI regulation and a wide consultation of 24 Commission departments to find synergies and complementarities and avoid overlaps with other programmes.

–The high satisfaction feedback provided by Member States’ coordinating authorities is a recognition of DG Structural Reform Support’s work.

–In 2021, the Commission also developed a robust set of communication initiatives to put the TSI under the spotlight, such as the organisation of a 
[high-level conference](https://ec.europa.eu/info/overview-funding-programmes/technical-support-instrument-tsi/technical-support-instrument-annual-conference-2021_en)
 for the launch of the TSI 2022 call or the creation of a new 
[reform support website](https://ec.europa.eu/reform-support/index_en)
.

–The TSI has supported Member States in the field of migration by helping several public administrations to build their institutional and operational capacity to integrate migrants and refugees, with a view to boost their integration in the labour market or into society.

–The TSI has supported Member States in the field of public financial management, by helping them improve the efficiency and effectiveness of their public expenditure policies, mainly through support for the design, conduct and institutionalisation of spending reviews.

–The TSI has supported Member States in the field of revenue administration, by helping them to boost the capacity of their tax and customs administrations. This support addressed a broad range of activities, including core information technology and business processes, taxpayer services, customs control activities and strategic and managerial functions.

–The TSI also helped to strengthen the green and digital transition in the Member States. In 2021 there was a substantial increase in Member State demand for support in the area of e-Government and digital public administration, particularly following the impact of COVID-19 pandemic.

–It further included support to Member States in the area of climate change mitigation and adaptation, including for the preparation of a long-term climate mitigation strategies. The support extended to disaster risk management, such as prevention of floods and wildfires. In addition, in the energy sector TSI supported setting up of a national decarbonisation fund to improve access to financing for the energy renovation of buildings.

–In fact, under TSI 2021, one in three projects, or over 100 projects in total, contributed to the objectives of the European Green Deal. In addition to climate‑relevant reforms, the Commission supported some Member States with draft plans or strategies for improving waste management, transitioning towards circular economy, and improving water cycles.

–Of particular importance was the TSI support for the national recovery and resilience plans under the Recovery and Resilience Facility. Around 60% of the projects selected in TSI 2021 have contributed to either the preparation or implementation of the recovery and resilience plans. In particular, 120 projects related to the implementation of thematic reforms and in investments in the recovery and resilience plans, while 11 additional projects concerned general support for the overall preparation or implementation of the recovery and resilience plans funded under the programme or through the transfer of national funds.

PERICLES IV

EXCHANGE, ASSISTANCE AND TRAINING PROGRAMME FOR THE PROTECTION OF THE EURO AGAINST COUNTERFEITING

Programme in a nutshell

Concrete examples of achievements

|  |  |  |  |
| --- | --- | --- | --- |
| 347 000  counterfeit euro banknotes were detected in 2021 (\*). | 195 082  counterfeit euro coins were detected in 2021 (\*). | 11  illegal workshops (mints and print shops) were dismantled in 2021 (\*). | 5  competent authorities applied to the programme in 2021. |
| 98.4%  of respondents across actions indicated being satisfied or highly satisfied. | 95.8%  of respondents across actions indicated that the programme has a moderate or high impact on their activities in protecting the euro against counterfeiting. |  |  |

(\*) These indicators, while linked to the protection of the euro, should be considered as ‘context’ indicators as the results are greatly influenced by factors external to the programme, such as counterfeiting activity and the detection rate consequence of the activities or the competent national and EU authorities.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 6.2 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 6.2 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The Pericles IV programme funds staff exchanges, seminars, trainings and studies for law enforcement and judicial authorities, banks and others involved in protecting the euro against counterfeiting. Actions can take place in the euro area, in Member States outside the euro area and in non-EU countries.

Challenge

The use of the euro – the EU’s single currency – continues to grow, including as a medium for international transactions and reserve currency. At the same time, the euro continues to be exposed to the threat of increasingly sophisticated counterfeits.

The protection of the euro benefits all Member States, EU citizens and EU businesses. Given the cross-border circulation of the euro and the involvement of international organised crime in euro counterfeiting (production and distribution), the protection of the euro goes beyond the interests, means and responsibilities of individual Member States. Appropriately, Article 133 of the Treaty on the Functioning of the European Union bestows the responsibility for the protection of the euro as the single currency to the EU. National protection frameworks are essential, but they need to be complemented and coordinated by action at the EU level. Moreover, international cooperation is necessary to fend off emerging transnational risks.

Mission

Pericles IV aims to prevent and combat counterfeiting and related fraud and preserve the integrity of the euro banknotes and coins. This strengthens the trust of citizens and business in the genuineness of these banknotes and coins and therefore enhances the trust in the EU’s economy, all while securing the sustainability of public finances.

The programme promotes transnational and cross-border cooperation within the EU as well as internationally ensuring a global protection of the euro against counterfeiting. In particular, it will take responsibility for countering specific emerging threats and the (challenging) relationship with certain countries.

Objectives

The programme’s specific objective is to protect euro banknotes and coins against counterfeiting and related fraud, by supporting and supplementing the measures undertaken by the Member States and assisting the competent national and EU authorities in their efforts to develop – among themselves and with the Commission – close and regular cooperation and an exchange of best practices, including with non-EU countries and international organisations where appropriate.

Actions

The programme will support:

–the exchange and dissemination of information, in particular through organising workshops, meetings and seminars, including training, targeted placements and exchanges of staff of competent national authorities and other similar actions;

–technical, scientific and operational assistance, as appears necessary as part of the programme;

–the purchase of equipment to be used by specialised anti-counterfeiting authorities of non-EU countries for protecting the euro against counterfeiting.

Delivery mode

The programme is implemented through direct management. DG Economic and Financial Affairs is the lead for programme implementation.

Projects co-financed under the programme are implemented directly by DG Economic and Financial Affairs or in the form of grant awards to national competent authorities in the EU (both in and outside of the euro area).

LINK TO THE 2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK

Pericles IV is a continuation of the Pericles 2020 programme. The main novelties are the simplification of the application process through the use of the eGrants system and the addition of key performance indicators measuring the quality of the service provided.

Impact assessment

Commission Staff Working Document ‘SWD(2018) 281 final’ accompanying the proposal COM(2018) 369. 
<https://europa.eu/!gG67BV>

WEBSITE FOR more information

<https://europa.eu/!uJ67Dg>

Legal basis

Regulation (EU) 2021/840 of the European Parliament and of the Council.

Council Regulation (EU) 2021/1696.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 0.8 | 0.9 | 0.9 | 0.9 | 0.9 | 0.9 | 0.9 | 6.2 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities |  |  |  |  |  |  |  |  |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + EUR 0.0 million (+ 0%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 0.8 | | |  | | --- | | 6.2 | | |  | | --- | | 13% | |
| Payments | |  | | --- | | 0.3 | |  | |  | | --- | | 6% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 0.8 | 0.8 |
| Payments | 0.3 | 0.4 |

–The commitments reached 100% of the overall budget for 2021, funding eight projects in total.

–The number of actions in 2021 is lower than in previous years due to the larger size of the actions and a lower budget in 2021.

–The eight actions for which commitments were made in 2021 consist of five grants awarded from applications originating from the competent authorities of the Member States and three Commission actions.

–Grants were approved for two conferences/seminars, two technical training courses and one staff exchange. One of the actions will take place outside of the EU, namely in Peru, with participants from 14 Latin American countries.

–Three Commission actions were committed using existing framework contracts: the final evaluation of the Pericles 2020 programme; the October 2021 virtual technical training ‘Pristina-Tirana on coin analysis and classification’; and the November 2021 virtual conference ‘3rd Platform 1210 Meeting’.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality \* |
| 0 | 0 | Score 0: 0.8 |

\* Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions; 

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Counterfeit euro banknotes detected in circulation | 0 | 0% | 671 000 annually (2) | Target not achieved in 2021. 347 000 compared to 637 450 | Moderate progress |
| Counterfeit euro coins detected in circulation | 0 | 0% | 174 112 annually (2) | Target not achieved in 2021. 195 082 compared to 165 406 | Moderate progress |
| Illegal workshops dismantled | 0 | 0% | 22 annually (3) | Target not achieved in 2021. 11 compared to 20 | Moderate progress |
| Competent authorities applying to the programme | 0 | 21% (1) | 24 in 2027 | 5 out of 24 | On track |
| Satisfaction rate of participants in the actions financed by the programme | 0% | 14% | 75% annually | Target achieved in 2021. 98% compared to 75% | On track |
| Feedback of participants on the impact of the programme on their activities in protecting the euro against counterfeiting | 0% | 14% | 75% annually | Target achieved in 2021. 96% compared to 75% | On track |

(\*) % of years for which the milestones or target have been achieved during the 2021-2027 period.

(1) % of target achieved by the end of 2021.

(2) The target for this indicator is to keep the number of counterfeit euros detected within the range of ± 5% compared to the 2014-2020 average results.

(3) The target for this indicator is to keep the number of counterfeit euros detected within the range of ± 10% compared to the 2019 results.

–In 2021 Pericles IV continued to support the Member States and to assist the competent national and EU authorities in protecting euro banknotes and coins against counterfeiting and fraud.

–The number of counterfeit euro banknotes detected and the number of illegal workshops dismantled were lower than expected. It should be noted, however, that the link between the programme and these indicators is only indirect, as a variety of external factors play an important role in the development of the indicators.

–On the other hand, the indicators that are more directly linked to the programme – such as the number of competent authorities applying to the programme, the satisfaction rate and the feedback of participants – were very positive.

2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK – PERICLES 2020

The Pericles 2020 programme funds staff exchanges, seminars, trainings and the purchase of equipment and studies for law enforcement and judicial authorities, banks and others involved in protecting the euro against counterfeiting. Actions can take place in the euro area, in Member States outside the euro area and in non-EU countries.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 6.9 | | |  | | --- | | 7.1 | | |  | | --- | | 97% | |
| Payments | |  | | --- | | 5.1 | |  | |  | | --- | | 71% | |

–At the end of 2021, 71% of the payments of the 2014-2020 period were implemented. The remaining payments are expected to be implemented by 2024.

–12 actions funded through 2019 and 2020 commitments were planned to be implemented from 2021 to 2023, partially due to the impact of the COVID-19 pandemic.

–Of those actions, four were implemented and finalised in 2021; two actions were partially implemented in 2021 in a hybrid format and are planned to be finalised in 2022; and six actions will be implemented in 2022 and 2023.

–During the 2014-2020 period, Pericles 2020 funded 80 actions: 59 were grants for co-financing events both in and outside of the EU and 21 were procurement contracts.

Performance assessment

–Pericles 2020 made a substantial contribution to the further improvement of coordination and cooperation at the international, EU and Member State levels, as well as the creation of more solid structures for the protection of the euro.

–Examples of this are the establishment of a specialised investigation group in Chile in 2019; the increased cooperation networks in the Balkans; the adoption of legislation aimed at improving euro protection; and the establishment of the National Central Office in Argentina in 2019.

–Feedback provided immediately after events organised by the programme showed that 95% of participants expressed a positive or highly positive view. More importantly, a large proportion of them said that they had learned about best practices, acquired useful skills and established contacts with colleagues in other countries. The quality of activities was also judged positively by the authorities involved.

–Quantifying the impact of a capacity-building initiative in terms of protection against criminal activities is a complex exercise, due to the influence of external factors on the extent of said activities, such as the priority set by Member State law enforcement authorities and the length and scope of police investigations.

–Nevertheless, the midterm evaluation of the programme concluded that Pericles 2020 actions were typically implemented as planned and achieved the intended outputs. The evidence suggested that this translated into tangible outcomes (e.g. successful police operations in South America, following Pericles training sessions).

–One of the recommendations of the midterm evaluation was to encourage a greater number of competent national authorities to apply for the programme. In this respect, the advertising of the programme and the increased co-financing rate for actions organised by new applicants attracted several first-time applicants.

–Despite the fact that counterfeiting currently seems to be under control, it continues to be a major threat to the euro. The rise of sophisticated counterfeits, the increased availability of technology and the continued interest of organised crime groups in euro counterfeiting require continuous attention.

CIVIL PROTECTION

UNION CIVIL PROTECTION MECHANISM

Programme in a nutshell

Concrete examples of achievements

|  |  |  |
| --- | --- | --- |
| 114  activations of the Union Civil Protection Mechanism (UCPM) occurred in 2021, of which 36 inside and 78 outside of the EU. | 13  prevention and preparedness projects inside the EU – along with two regional programmes on prevention, preparedness and response outside of the EU – were financed via the UCPM in 2021. | 115  response capacities were committed to the European Civil Protection Pool (ECPP) by the end of 2021, of which 82 were available for immediate deployment. |
| 7  grant agreements were signed with Member States and participating states for activities related to the knowledge network in 2021. | 53  is the number of activations of the Copernicus Emergency Management Service in 2021. | 10 481  passengers were repatriated to Europe – including approximately 327 EU citizens – in 103 repatriation operations in 2021. |

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 1 326.7 |
| NextGenerationEU | 2 056.5 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 20.6 |
| Total budget for 2021-2027 | 3 403.8 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The Union Civil Protection Mechanism (UCPM) aims to strengthen the cooperation between the EU and the Member States in assisting in natural, man-made and health emergencies by improving the prevention, preparedness and response capacity of key actors. This cooperation has become ever more important in recent years, as climate-related disasters are expected to grow in severity.

Challenge

Disasters have affected every region of Europe in recent years, causing hundreds of casualties and billions in damage to infrastructure and the environment. Epidemics, flash floods, storms, forest fires, earthquakes and man-made disasters continuously place countries’ response capabilities under pressure. Additionally, security concerns have become more complex and climate change is expected to worsen the impact of disasters in the future.

Such disasters have overwhelmed the ability of Member States to help each other, especially when several countries face the same type of disaster simultaneously. The EU supports and complements the prevention and preparedness efforts of its Member States and participating states (Iceland, Norway, Serbia, North Macedonia, Montenegro and Turkey) by focusing on areas where a joint European approach is more effective than separate national actions. Through the rescEU reserve, the EU ensures a faster and more comprehensive response.

Mission

The UCPM promotes solidarity among the Member States and participating states through practical cooperation and coordination. Member States, however, retain primary responsibility to protect people, the environment and property (including cultural heritage) on their territories against disasters – and to equip their disaster management systems with sufficient capabilities to cope adequately and consistently with disasters of a nature and magnitude that can reasonably be expected and for which they can prepare.

Objectives

The specific objectives of the UCPM are:

10.to achieve a high level of protection against disasters, through a culture of prevention and improved cooperation among national services;

11.to enhance preparedness at the Member State and EU levels to respond to disasters, via the European Civil Protection Pool (ECPP) and rescEU;

12.to facilitate rapid and efficient disaster response;

13.to increase public awareness and preparedness for disasters;

14.to increase the availability and use of scientific knowledge on disasters;

15.to step up cooperation and coordination activities at the cross-border level and among Member States prone to the same types of disasters.

Actions

The UCPM comprises three stands of activities: prevention, preparedness and response.

Prevention and preparedness activities mitigate the effects of disasters. A training programme for civil protection experts from Member States and participating states ensures compatibility and complementarity between intervention teams, while large-scale exercises improve capacities for specific disasters each year.

With its 2019 reform, the Commission proposed rescEU as part of the preparedness actions under the UCPM. As a European reserve of capacities, rescEU resources include a fleet of firefighting airplanes and helicopters, medical evacuation airplanes and a stockpile of medical equipment and field hospitals that can be used to respond to health emergencies.

Under response, following a request for assistance by a Member State or non-EU country through the UCPM, the emergency response coordination centre mobilises assistance or expertise. In addition, the ERCC monitors events around the globe 24/7 and ensures rapid deployment of emergency support through direct links with national civil protection authorities. Specialised teams and equipment can be mobilised at short notice for deployments within and outside of Europe.

Delivery mode

The programme is led by DG European Civil Protection and Humanitarian Aid Operations under direct management, with some possible recourses to indirect management following a recent legislative revision.

LINK TO THE 2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK

The UCPM in the 2021-2027 multiannual financial framework builds on the positive results achieved through the 2014-2020 framework. The budget has been consolidated under one heading in the 2021-2027 framework to render budget implementation even more effective and efficient. Increased operational needs and a matching budget led the Commission to propose adaptations to the legislative framework, including direct procurement of rescEU capacities by the Commission and full EU financing for all rescEU capacities.

Impact assessment

In 2018, the Commission launched a Capacities study, of which the final report was published on the DG European Civil Protection and Humanitarian Aid Operations website in December 2019. Based on this study, the Capacity Gaps report was to be finalised during 2020. However, due to COVID-19-related delays, the report will only appear in 2022 – taking into account both the capacities under the ECPP and rescEU for the first time.

In 2020, an external evaluation of the 2014-2020 prevention and preparedness projects was commissioned, in order to extract key lessons from this activity over the past years and identify areas for improvement. The results were published in September 2021 and provide clearly positive conclusions on the effectiveness and EU added value of the programme. Recommendations focus mainly on raising awareness of the projects funded and strengthening the planning, monitoring, evaluation and reporting framework.

An overall evaluation of the UCPM (2017-2022) will be launched in 2022.

WEBSITE FOR more information

<https://ec.europa.eu/echo/what/civil-protection/eu-civil-protection-mechanism_en>

Legal basis

Regulation (EU) 2021/836 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 182.6 | 101.3 | 101.6 | 233.3 | 233.3 | 234.4 | 240.3 | 1 326.7 |
| NextGenerationEU | 684.6 | 679.8 | 682.8 | 2.3 | 2.3 | 2.3 | 2.3 | 2 056.5 |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 20.6 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 20.6 |
| Grand Total | 887.8 | 781.0 | 829.4 | 232.6 | 221.6 | 222.9 | 228.4 | 3 403.8 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + EUR 63.8 million (+ 5%) compared to the legal basis

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 332.1 | | |  | | --- | | 3 403.8 | | |  | | --- | | 10% | |
| Payments | |  | | --- | | 45.4 | |  | |  | | --- | | 1% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 182.6 | 90.2 |
| Payments | 38.0 | 25.6 |

–In 2021, the initial budget of the programme was EUR 768.8 million and the final budget stands at EUR 904.4 million, with EUR 225.8 million on the multiannual financial framework strand and EUR 678.6 million on the NextGenerationEU strand.

–The crisis in Afghanistan and the forest fires triggered a reinforcement of EUR 57.8 million through an amending budget. The UCPM budget has also benefited from a frontload within the multiannual financial framework profile providing an additional EUR 34.6 million.

–The budget under the multiannual financial framework strand has been implemented in full (EUR 224.5 million), except for some funds recovered late in 2021 (EUR 1.3 million).

–On the NextGenerationEU strand, the budget execution shows a lower rate (EUR 128.5 million committed out of EUR 678.6 million) due to the funds being made available only in July and the discussions on the scope requiring substantial adjustments. The remaining NextGenerationEU funds (EUR 550.1 million) can be carried over to the following year, as foreseen in Council Regulation (EU) 2020/2094. In 2021, most appropriations were allocated to the rescEU medical stockpile.

–On the response side, the UCPM was activated an unprecedented 114 times in 2021 for a wide range of disasters, facilitating the delivery of numerous items of critical personal protective and medical equipment – including almost 30 million COVID-19 vaccine doses. In Afghanistan, 95 air operations were organised to evacuate EU citizens and Afghan people working for the EU and the Member States and their dependents.

–In 2022-2023, rescEU will continue to be the major spending field. This will include aerial forest firefighting but also chemical, biological, radiological and nuclear capacities, emergency shelters, stockpiling, emergency medical teams and multi-purpose transport and medical evacuation.

–A massive amount of assistance is being channelled through the UCPM and delivered to Ukraine and to the neighbouring countries that are affected by the unprecedented inflow of people fleeing the war. This has already triggered a reinforcement request of EUR 70 million in 2022, through a transfer of appropriations.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 198.7 | | 43.1 | Score 0\*: 182.6 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Response time of the UCPM to a request of assistance in the EU (hours) |  | 0% | 3 hours annually | Target not achieved in 2021. 8 hours compared to 3 hours | Moderate progress |
| Response time of the UCPM to a request of assistance outside of the EU (hours) |  | 0% | 10 hours annually | Target not achieved in 2021. 68 hours compared to 10 hours | Moderate progress |
| Adequacy of response of the UCPM (in the EU) | 0% | 14% | 90% annually from 2024 | Milestone achieved in 2021. 100% compared to 75% | On track |
| Adequacy of response of the UCPM (outside of the EU) | 0% | 14% | 86% annually | Milestone achieved in 2021. 86% compared to 86% | On track |
| Number of committed and certified capacities included in the ECPP | 60 | > 100% | > 60 annually | Target achieved in 2021. 66 compared to > 60 | On track |
| Number of Member States that provided the Commission with a summary of risk assessments and an assessment of risk management capability | 27 | < 0% | 27 annually | 26 compared to 27. | Moderate progress |
| Level of awareness of EU citizens of the risk of their region | Not available |  | > 64% |  | No data |

(\*) % of years for which the milestones or target have been achieved during the 2021-2027 period.

Performance in the internal dimension.

–In the area of prevention, the UCPM continues to be instrumental in fostering an EU-wide culture of prevention. Member States have generally become more aware of the need to strengthen prevention policies and have undertaken reforms in their national civil protection structures to emphasise the role of prevention. In this respect, the 2020 EuroBarometer survey reveals a positive trend between 2015 and 2020. The prevention strand also includes fostering cooperation and coordination of activities at cross-border level. In 2021, the UCPM funded nine projects implemented by partners from 16 Member States and participating states focusing on the development of cross‑border risk assessments, improved regional and cross-sectoral coordination and preparation for marine pollution accidents.

–In the area of preparedness, the trend clearly shows the growing importance of the UCPM among Member States when it comes to preparedness for disasters. The number and diversity of registered capacities in the ECPP is the highest ever, reaching in certain areas the maximum required at EU level. The concrete implementation of the revised UCPM legislation has strengthened the preparedness component of the UCPM through enhanced financing for the ECPP and the progressive development of rescEU capacities in various areas, complementing national capacities. Every year, a sophisticated training and exercise programme provides experts and capacities with the required competences to improve their response to disasters through enhanced coordination, compatibility and complementarity. To support the coordination efforts of Member States, participating states and the UCPM, the knowledge network was officially established in 2021.

–Concerning the response strand, the UCPM continued to lead the response to the COVID-19 pandemic and its different waves, using tools and capacities to respond both in and outside of the EU. The UCPM was activated 114 times, which is an absolute record in the history of UCPM, of which 36 were in the EU. Out of 114 activations, 69 (61%) were related to COVID‑19. The UCPM had a 100% response rate within Europe. Sixty requests were partially or fully met by offers of assistance from Member States, participating states or the rescEU medical stockpile. In total, the UCPM facilitated the delivery of over 200 million items of medical equipment, including 6 million items from the rescEU stockpile. In addition to COVID-19 aid, assistance was provided to Belgium when it suffered from floods.

Performance in the external dimension.

–The focus stayed on strengthening cooperation with the immediate neighbourhood, notably with the beneficiary countries of the Instrument for Pre-accession Assistance (particularly Albania, Bosnia and Herzegovina, Kosovo (
[8](#footnote9)
) and Turkey) as well as the southern and eastern neighbourhoods, where new phases of regional programmes in the western Balkans and the eastern neighbourhood were launched or are in preparation. The dialogue with the Union for the Mediterranean continued to build on the positive exchanges from recent years, delivering concrete results in the form of specific workshops around various areas related to disaster management, such as working groups on volunteers and engaging citizens or workshops on the future of cooperation in the Mediterranean area. Emphasis was also placed on continuing financing prevention and preparedness projects in non-EU countries with a cross-border dimension. Such initiatives have been instrumental in promoting cooperation at the technical level, developing networks and promoting the building of capacity. There were continuing efforts to increase the availability and use of scientific knowledge on disasters, to expand available data to strengthen the early warning and information systems for natural disasters (e.g. droughts, floods, forest fires, tropical cyclones or severe weather) and to make extensive use of the services and information provided via the Copernicus programme.

–Concerning response, given the increasingly unpredictable nature of disasters within and outside of the EU’s borders, the UCPM is activated more and more often. An activation of the UCPM and the offer of rapid support contributes to showcasing EU solidarity with non-EU countries in times of crisis. Non-EU countries account for around two thirds of the UCPM activations, which demonstrates its international relevance and the capacity and readiness of the Member States to send assistance and expertise to non-EU countries in need.

–The UCPM replied positively to 87% of the requests for assistance from outside of Europe. The UCPM mainly supported the Member States that were most heavily affected through the delivery of vaccines and personal protective/medical equipment under the framework of the rescEU stockpiling. In addition to the COVID‑related activations, these were connected to the repatriation of EU and non-EU citizens, volcanic eruptions, Ebola outbreaks, forest fires, floods, tropical cyclones, refugee influx, medicine shortages, oil spills and maritime pollution and technological disasters. Over 38 million vaccine doses were offered for sharing through the UCPM, of which almost 32 million doses were delivered to over 40 non-EU countries. Assistance via the UCPM was also provided to Haiti following an earthquake.

Areas for improvement.

–The large-scale and unforeseen nature of the COVID-19 pandemic put the UCPM to the test and revealed some areas for possible improvements. In the aftermath of the first wave, a new legislative proposal was made and entered into force in May 2021. This gave the Commission additional elements of initiative and a higher autonomy in certain cases, adjusted the collective planning for large-scale and cross-boundary emergencies and enhanced the budgetary flexibility to rapidly react and adjust to major crises.

–The evaluation of the 2014-2020 prevention and preparedness projects’ programme, published in September 2021, provided the following main recommendations: (1) increase awareness, access to and engagement with ongoing and past EU-funded projects on civil protection prevention and preparedness and their results; (2) establish an internal planning, monitoring, evaluation and reporting framework to assess the performance and quality of the programme; and (3) introduce the possibility to apply for project extensions and expansions, raise awareness of the programme and provide guidance on how to prepare successful applications.

–The COVID-19 pandemic continued to significantly affect UCPM activities. Based on lessons learned during the previous year, adaptation became easier. However, with the evolution of the pandemic different challenges occurred and needed to be tackled. While response time improved from 2020, internal and external response times still remain higher than their corresponding pre‑pandemic levels. The UCPM facilitated the delivery of millions of personal protective equipment items, medical countermeasures and vaccines to Member States, participating states and non-EU countries. Other areas were particularly affected by the pandemic are the ones related to training and exercises, given the restrictions in place. The provision of prevention-related information and the certification of ECPP capacities were nearly brought to a standstill due to the pandemic. Many of the initially planned communication actions also had to be revised or postponed.

  

MULTIANNUAL FINANCIAL FRAMEWORK 2014-2020 – UNION CIVIL PROTECTION MECHANISM

The goal of the UCPM is to support, coordinate and supplement the actions in the field of civil protection, with a view to improving the effectiveness of systems for preventing, preparing for and responding to natural and man-made disasters. It facilitates disaster response cooperation among 33 European states (the Member States, Iceland, Norway, Serbia, North Macedonia, Montenegro and Turkey). The framework also applied to the United Kingdom during the transitional period that ended on 31 December 2020. The United Kingdom does not currently participate in the UCPM.

Budget implementation

Heading 3: Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Internal dimension (heading 3): |  |  |  |
| Commitments | |  | | --- | | 729.0 | | |  | | --- | | 766.5 | | |  | | --- | | 95% | |
| Payments | |  | | --- | | 429.5 | |  | |  | | --- | | 56% | |
| External dimension (heading 4): |  |  |  |
| Commitments | |  | | --- | | 155.6 | | |  | | --- | | 157.7 | | |  | | --- | | 99% | |
| Payments | |  | | --- | | 123.9 | |  | |  | | --- | | 79% | |

–In a context where the scope for action was widened considerably to foster the EU’s capacity to respond to crises – with a substantially increased budget to fund new operations (the legal basis was amended in 2018) – implementation under heading 3 reached a level of 95% and implementation under heading 4 reached a level of 99%.

–In 2020, the budget implementation was characterised by challenges relating to COVID-19, resulting in an unprecedented number of 102 UCPM activations. The UCPM consequently received several budgetary reinforcements under both headings, totalling EUR 442 million through two amending budgets (EUR 415 million) and redeployments from other instruments (EUR 27 million). The reinforcements funded the creation of the first-ever emergency stockpile of medical equipment (protective equipment, ventilators, etc.) and the repatriation of EU citizens stranded in non-EU countries. The increased budget largely explains the low implementation of payment appropriations in 2014-2020 (45%), as the majority of related payments were made from 2021 onwards.

–The unused amounts at the end of year 2020, corresponding to recovery orders cashed in 2020, were carried over and fully used in 2021. In addition, EUR 7.2 million still had to be contracted at the end of 2020, which was fully implemented in 2021.

–On the payment side, commitments in the amount of EUR 282 million still had to be paid under heading 3 and EUR 22.4 million under heading 4.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Average speed of civil protection assistance interventions inside the EU (in hours) |  | 86% | 12 hours | Milestones achieved in 6 out of 7 years from 2015 to 2021. | Moderate progress |
| Average speed of civil protection assistance interventions outside of the EU, from acceptance of offer to deployment (in hours) |  | 71% | 48 hours | Milestones achieved in 5 out of 7 years from 2015 to 2021 | Deserves attention |

(\*) % of years for which the milestones or target have been achieved during the 2014-2021 period.

–UCPM projects that started under the previous multiannual financial framework (2014-2020) continued in the same conditions under the current multiannual financial framework (2021-2027). For information on the performance of the previous programme, please refer to the active programme performance section above.

–

EU4HEALTH

EU PROGRAMME FOR A HEALTHIER AND SAFER UNION

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 1 185  healthcare providers and centres of expertise joined the 24 European reference networks established under the third health programme (2014-2020). | 36  European countries (including all 27 EU Member States) were assessed in the context of the 2020 edition of Health at a Glance on the comparative health status of their citizens and on the health impact of air pollution under the third health programme (2014-2020). | 27  joint reports (13 assessments and 14 early dialogues) were produced in the context of EU cooperation on health technology assessment and with financial support provided to the European Network for Health Technology Assessment joint action 3 under the third health programme (2014-2020). | 23  Member States are using the tools and mechanisms identified to contribute to effective results in their health systems under the third health programme (2014-2020). |
| 2 000  contacts were made with stakeholders within and outside the EU informing them about the legislative changes made by the new EU legislation on medical devices and in vitro diagnostic medical devices under the third health programme (2014-2020). | EUR 100 million  has been dedicated to investment in health crisis preparedness, based on the lessons learned during the COVID-19 pandemic under the EU4Health programme (2021-2027). | EUR 100 million  has been allocated to support decisive action to reduce the impact of cancer (as presented in Europe’s beating cancer plan) under the EU4Health programme (2021-27). | EUR 70 million  has been made available for joint actions with Member States to promote the involvement of and cooperation among Member States on addressing health challenges under the EU4Health programme (2021-27). |

(\*) Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 3 096.5 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 8.7 |
| Total budget for 2021-2027 | 3 105.3 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The EU4Health programme is a key instrument for delivering a comprehensive response to the health needs of EU citizens, reflecting the lessons learned from both the COVID 19 crisis and previous health programmes.

Challenge

The COVID-19 pandemic has caused an unprecedented health crisis in Europe, straining national health systems and resulting in severe human suffering and socioeconomic consequences. The crisis revealed both the fragility of national health systems and health disparities across population groups, Member States and regions. It also demonstrated the importance of coordination among European countries to protect people’s health and the need for a forceful EU approach for a safer Europe, both during crises and in normal times.

The EU has a central role to play in accelerating progress, coordination and cooperation in relation to tackling health challenges in Europe.

Health is an investment, and the EU4Health programme is the largest ever EU investment in health. It is a clear message that people’s health is an EU priority.

EU4Health will support and complement national policies and will optimise its added value by co-funding actions in relation to which there are advantages and efficiency gains from collaboration and cooperation at the EU level and actions that have an impact on the internal market. The programme will pave the way towards a strong European health union in which all Member States prepare and respond in a timely manner to health crises; medical supplies – including crisis-relevant products – are available, affordable and innovative; and all Member States work together to improve health systems and fight communicable and non-communicable diseases.

Mission

EU4Health will provide the means and the instruments for delivering on the EU health policy. Four general objectives represent the breath and the ambitions of the programme:

–improve and foster health in the EU;

–protect people in the EU from serious cross-border health threats;

–improve availability, accessibility and affordability of medicinal products, medical devices and crisis-relevant products;

–strengthen health systems.

EU4Health will help Member States reach the United Nations’ sustainable development goals (in particular goal No 3 ‘Ensure healthy lives and promote well-being for all at all ages’) and apply, where relevant, the ‘One Health’ approach, recognising that human health is connected to animal health and to the environment.

Objectives

Ten specific objectives identify key areas of intervention under the four general objectives mentioned above.

1.In synergy with other relevant EU actions, supporting action on disease prevention, on health promotion and on addressing health determinants.

2.Strengthening the capability of the EU for the prevention of, preparedness for and rapid response to serious cross-border threats to health in accordance with relevant EU legislation and improving the management of health crises.

3.Supporting action to enhance the availability, accessibility and affordability of medicinal products, medical devices and crisis-relevant products by encouraging sustainable production and supply chains and innovation in the EU, while supporting the prudent and efficient use of medicinal products, in particular antimicrobials. Supporting the development of medicinal products that are less harmful for the environment and the environmentally friendly production and disposal of medicinal products and medical devices.

4.Supporting actions complementing national stockpiling of essential crisis-relevant products, at the EU level, where needed, in synergy with other EU instruments, programmes and funds, without prejudice to Member State competences and in close cooperation with the relevant EU bodies.

5.Establishing a structure and training resources for a reserve of medical, healthcare and support staff allocated voluntarily by Member States, for mobilisation in the event of a health crisis, in synergy with other EU instruments, programmes and funds, without prejudice to Member State competences and in close cooperation with the European Centre for Disease Prevention and Control.

6.Strengthening the use and reuse of health data for the provision of healthcare and for research and innovation; promoting the uptake of digital tools and services and the digital transformation of healthcare systems, including by supporting the creation of a European health data space.

7.Enhancing access to high-quality, patient-centred, outcome-based healthcare and related care services, with the aim of achieving universal health coverage.

8.Supporting the development, implementation, enforcement and, where necessary, revision of EU health legislation; supporting the provision of valid, reliable and comparable high-quality data for evidence-based decision-making and monitoring; and promoting the use of health impact assessments of other relevant EU policies.

9.Supporting integrated work among Member States, and in particular their health systems.

10.Supporting global commitments and health initiatives by reinforcing the EU’s support for action by international organisations, in particular action by the World Health Organization, and fostering cooperation with non-EU countries.

Health challenges are cross-dimensional by nature, and EU4Health is implemented on the basis of overall consistency, synergy and complementarity with EU programmes, policies, instruments and actions.

Actions

Responding to the complexity of health issues, EU4Health will initially support a broad range of actions and initiatives under four overarching strands, namely: (1) crisis preparedness; (2) disease prevention; (3) health systems and the healthcare workforce; and (4) digital. Cancer is a major initiative and a transversal strand.

Delivery mode

EU4Health will be implemented under both direct management (mainly by the European Health and Digital Executive Agency) and indirect management.

LINK TO THE 2014-2020 multiannual financial framework

EU4Health is a new programme. It builds on the positive results of the third health programme under the 2014-2020 multiannual financial framework and continues many actions from that programme (enhanced crisis preparedness; support for Europe’s beating cancer action plan; support for the pharmaceuticals strategy), albeit with key new aspects. Relative to its predecessor, EU4Health features an unprecedented level of investment and covers a much broader scope.

Impact assessment

The impact assessment was carried out in 2018 for the initial health programme proposal, and a strand under the European Social Fund Plus remained valid for the new standalone EU4Health programme. The current objectives retain all of the health objectives from the initial proposal, with priority given to crisis preparedness and response. They have been aligned with the political priorities on cancer and pharmaceuticals.

For the European Social Fund Plus impact assessment, please see: 
<https://europa.eu/!uV97Jw>

WEBSITE FOR more information

<https://europa.eu/!RU73Pq>

Legal basis

Regulation (EU) 2021/522 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 329.1 | 839.7 | 731.8 | 308.1 | 318.1 | 326.2 | 243.7 | 3 096.5 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 8.7 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 8.7 |
| Total | 337.8 | 839.7 | 731.8 | 308.1 | 318.1 | 326.2 | 243.7 | 3 105.3 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: - EUR 214.8 million (- 9%) compared to the legal basis. \*

\* Top-ups pursuant to Art. 5 MFF Regulation are excluded from financial programming in this comparison.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 337.8 | | |  | | --- | | 3 105.3 | | |  | | --- | | 11% | |
| Payments | |  | | --- | | 11.6 | |  | |  | | --- | | 0 % | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 329.1 | 327.5 |
| Payments | 9.7 | 76.3 |

–Considering the late adoption of the 2021 annual work programme, in June 2021, and the establishment of the European Health and Digital Executive Agency in February 2021 and the Commission’s Health Emergency Preparedness and Response Authority on 16 September 2021, the actions envisaged under the EU4Health programme have begun with a slight delay. Therefore, and given the lead time for the signature of grant agreements (up to 9 months) and for procurement actions, only a small amount of payment appropriations were needed in 2021.

–In 2021, a significant proportion of the fresh payment credits were provided to fund the expert panel meetings on effective ways of investing in health and for a few activities under the European Database for Medical Devices. Along with the initial implementation of the EU4Health programme, a significant number of activities from the third health programme were also finalised in 2021, with a total budget of EUR 47.1 million.

–The 2022 annual work programme was adopted on 14 January 2022.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| 0 | 0 | Score 0\*: 318.0  Score 0: 11.1 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of Member States implementing best practices regarding health promotion, disease prevention and addressing health inequalities | 0 |  | 27 | No results | No data |
| Number of Member States with improved preparedness and response planning | 0 |  | 27 | No results | No data |
| Number of shortages of medicinal products in the Member States as reported through the single point of contact network | 52 |  | Reduction | No results | No data |
| EU Laboratory capacity index (EULabCap) | 7.8 |  | 8 | No results | No data |
| Number of Member States participating in the European health data space | 0 |  | 27 | No results | No data |
| Number of HTA reports jointly carried out | 0 |  | Progress | No results | No data |
| Number of health impact assessments of Union policies | 0 |  | Progress | No results | No data |
| Number of audits conducted in the Union and in third countries to ensure good manufacturing practices and good clinical practices (Union control) | 0 |  | To be defined | No results | No data |
| Number patients diagnosed and treated by the members of ERNs | 0 |  | Progress | No results | No data |

(\*) % of target achieved by the end of 2021.

–2021 was the first year of implementation of the programme, and the 2021 work programme was adopted only 3 months after the adoption of the legal basis. In 2021, the processes for ensuring the functioning of the programme were put into operation.

–More than one third of the funds (34.0%) were allocated to safeguard against, prepare for and respond to future health crises. Under the crisis preparedness strand, including aspects drawn from the experience of the COVID-19 pandemic, funded actions aim to enhance the preparedness of Member States for future health crises; to address medicine shortages; to support clinical trials for COVID-19 therapeutics; to improve the capacity to detect infectious diseases; and the preparatory activities for the Health Emergency Preparedness and Response Authority.

–Roughly another third (32.5%) of the 2021 work programme budget is aimed at action under the disease prevention and health promotion strand, including the flagship initiatives of Europe’s beating cancer plan on the prevention and detection of cancer, and at collecting, sharing and implementing best practices on health promotion and the prevention of non-communicable diseases, along with related risk factors. In addition, the 2021 work programme supported the creation of an online disease knowledge gate and the implementation of the tobacco products directive. These interventions will contribute to improving and fostering health in the EU, reducing inequalities, promoting healthy lifestyles and improving access to healthcare.

–Action on health systems and the health workforce, with a budget of EUR 68.5 million, was directed towards strengthening national health systems; implementing the new pharmaceutical strategy for Europe and legislation on pharmaceutical and medical devices; and improving the European reference networks.

–The digital strand has been allocated around EUR 32 million to establish the European health data space, involving the infrastructure and the governance of primary and secondary use of data. Patient access and data interoperability will be supported. This is a first critical investment in advancing the digital transformation of health systems to complement healthcare and make it more effective.

2014-2020 multiannual financial framework – health programme

The third programme for EU action in the area of health (2014-2020) is a financial instrument for policy coordination at EU level. It aims to complement, support and add value to Member States’ policies for improving the health of their citizens, reducing health inequalities, encouraging innovation in health and increasing the sustainability of their health systems.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 452.1 | | |  | | --- | | 452. | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 352.3 | |  | |  | | --- | | 78% | |

–The entire budget (EUR 452.35 million for 2014-2020) was committed by the first quarter of 2021 through projects and other actions pursuing the programme’s objectives.

–By the end of 2021, 78% of the total budget (i.e. EUR 352.3 million) had been paid to participants and/or beneficiaries or for the procurement of necessary services. The outstanding payments (22% of the budget, or EUR 99.8 million) are for projects or actions launched in the last 2-3 years of the 2014-2020 multiannual financial framework, which have not yet been completed and therefore have not led to final payments by the Commission.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Widening of established European reference networks | 0 | 78% | 1 450 | 1 134 healthcare units joined reference networks, compared to a target of 1 450 | On track |

(\*) % of target achieved by the end of 2021.

–According to the midterm evaluation of 2017, the third health programme has been performing well and has been implemented effectively, contributing to better health protection through its policies and activities. The programme has efficiently addressed the Commission’s priorities on the implementation of best practices for health promotion and disease prevention, crisis preparedness and risk management, the production and communication of relevant information within the framework of the EU semester, the fostering of mental health, and health and innovation.

–In the 2014-2020 period, the European Court of Auditors published several reports assessing the implementation of the health programme. In EU Actions for Cross-border Healthcare – Special report 07/2019, the Court found that ‘EU actions in cross-border healthcare enhanced cooperation between Member States … The Commission has overseen the implementation of the Cross-border Healthcare Directive well.’ The special report also identified certain shortcomings and improvements that were necessary in terms of reducing administrative burden and the long-term financial sustainability of the European reference networks. In Addressing Antimicrobial Resistance – Special report 21/2019 the Court emphasised: ‘Fighting against antimicrobial resistance is complicated … The Commission and [European Centre for Disease Prevention and Control] support to strengthen Member States One Health approach to [antimicrobial resistance] was valuable’. However, it also pointed out some challenges, particularly with regard to the sustainable implementation of the results in the Member States. These were addressed in the new EU4Health programme.

–While reorienting and gearing a proportion of its resources towards fighting the COVID-19 pandemic, the third health programme continued to implement its main actions with a view to enhancing and further consolidating key achievements over the 2014-2020 implementation period.

–With regard to objective 1 ‘promote health, prevent diseases and foster supportive environments for healthy lifestyles’, the targets were reached in all respects except the number of Member States involved in the European accreditation scheme for breast cancer.

–With regard to objective 2 ‘protect EU citizens from serious cross-border health threats’, the target of 28 Member States integrating coherent approaches in the design of their preparedness plans was achieved in 2020.

–With regard to objective 3 ‘support public health capacity-building and contribute to innovative, efficient and sustainable health systems’, 41 notices of advice were produced and 23 Member States used the tools and mechanisms identified in order to contribute to effective results in their health systems.

–With regard to objective 4 ‘facilitate access to better and safer healthcare for EU citizens’, 30 European reference networks were established in accordance with Directive 2011/24/EU, 1 185 healthcare providers and centres of expertise joined European reference networks and all 28 Member States used the tools developed.

ESI

EMERGENCY SUPPORT INSTRUMENT

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 1 500  medical cargo transport operations delivered medical supplies from April 2020 to January 2022. | 800  medical personnel and patients were transported from April 2020 to January 2022. | 23 million  rapid antigen tests were purchased, with deliveries starting in February 2021. | 10 million  masks for healthcare workers were distributed to Member States from July to October 2020. |
| 15 000  doctors and nurses were trained to support and assist intensive care units in 750 hospitals across the EU from August 2020 to May 2021. | 4.6 billion  doses of COVID‑19 vaccines were secured for delivery under the ESI, which started in December 2020. |  |  |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 231.7 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 416.6 |
| Total budget for 2021-2027 | 648.3 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The instrument is designed to allow for a comprehensive and flexible response to the urgent, evolving and diverse needs that arose during the pandemic. It complements the efforts of Member States, in close cooperation and consultation with them, and is activated only in exceptional circumstances where no other instrument available to Member States and to the EU is sufficient.

Challenge

The COVID‑19 pandemic led to an unprecedented loss of life in the EU. Member States adopted exceptional measures to limit the spread of the virus, which had unprecedented consequences for society and the economy. National healthcare systems in particular have been, and still are, under severe strain, with Member States facing an urgent and high need for medical supplies, treatments and vaccines, additional hospital beds and an increased workforce.

On 14 April 2020, the Council of the European Union adopted Council Regulation (EU) 2020/521, activating emergency support under Council Regulation (EU) 2016/369 to finance the expenditure necessary to address the COVID‑19 pandemic. Unlike other programmes, the Emergency Support Instrument (ESI) is activated independently of the multiannual financial framework for the period from 1 February 2020 to 31 January 2022. A total of EUR 2.7 billion was mobilised under the 2020 budget. Furthermore, by 15 December 2020 the Member States had made contributions amounting to EUR 750 million in external assigned revenue. With many Member States facing a third wave of infections at the time, including as a result of new variants emerging in the first quarter of 2021, the European Commission proposed to reinforce the ESI in 2021 with an additional EUR 231.7 million from the EU budget to finance actions such as the interoperability of EU Digital COVID certificates, an EU wastewater monitoring system, the further development of the passenger locator form exchange platform and digital platforms, and grants to Member States to support the accessibility of tests for the delivery of EU Digital COVID Certificates. The situation evolved in 2021 with a fourth, fifth and, in some countries, sixth wave, and a decision was made to allocate the remaining ESI funds to vaccine donations to non-EU countries and to the characterisation of the highly contagious Omicron variant that appeared at the end of November 2021.

Mission

The nature and consequences of the pandemic are wide-reaching and transnational, affecting all Member States given the quick spread of the virus and requiring a comprehensive response to allow the EU as a whole to address the crisis in a spirit of solidarity. Actions taken by the Member States alone, including with EU financial support from other EU instruments, are not sufficient.

The general objective is to provide needs-based emergency support, complementing the efforts of Member States aimed at preserving life, preventing and alleviating human suffering, and maintaining human dignity, wherever the need arises as a result of the pandemic.

The ESI provides added value by directly supporting the Member States through targeted measures that can be deployed strategically and in a coordinated manner to deliver greater impact in mitigating the large-scale consequences of the pandemic.

Objectives

The legal basis of the ESI does not set out any specific objectives, as it is designed to allow for a comprehensive and flexible response to the urgent, evolving and diverse needs arising from an emergency – in this case the COVID‑19 pandemic. In line with the legal basis, the Commission closely cooperated with the Member States on the implementation of the instrument. It regularly exchanged views with the Member States on their needs and how these were being taken into account in the programme, and informed them of the state of play of the actions to be financed by the instrument. This cooperation and exchange influenced the choice of actions to be prioritised. The European Parliament was also kept informed on the implementation of the instrument.

Actions

In line with the broad scope of possible interventions provided for by the legal basis and its needs-based rationale, the ESI is financing a strategically chosen range of actions, reflecting the needs expressed by Member States during its consultations with them. These actions are focused on responsiveness, increased preparedness and bringing fast, targeted and tangible impact with maximum EU added value. The following actions were allocated funding in 2021:

1. 
   funding advanced purchase agreements with COVID‑19 vaccine developers;

2.
   the development of EU Digital COVID Certificates underpinning the free movement of persons;

3.
   wastewater monitoring;

4.
   further development of the passenger locator form exchange platform;

5.
   funding the purchase for donation to Member States of specialised RT-PCR assays to identify variants;

6.
   the provision of test accessibility for the delivery of EU Digital COVID Certificates;

7.
   vaccine procurement in order to contribute to global immunisation efforts against COVID‑19 in low and lower middle-income countries;

8.
   grants to research institutes to analyse the characteristics of the Omicron variant;

9.
   the revocation of false Digital COVID‑19 Certificates and the continuity and good functioning of the EU Digital COVID Certificate system.

Delivery mode

A specific internal governance arrangement was put in place, including a steering committee composed of the co-delegated authorising officers, together with the Secretariat-General and the Directorate-General for Budget, to provide strategic coordination of the ESI. The ESI is centrally managed by the Commission and implemented mostly through direct management.

LINK TO THE 2014-2020 multiannual financial framework

The ESI is activated independently from the multiannual financing framework. It spans both the 2014-2020 and 2021-2027 periods. The present activation of the instrument, currently aimed at helping to fight the COVID‑19 crisis, expired on 31 January 2022; the actions currently financed are expected to be covered by the new generation of programmes, in particular EU4Health, as appropriate.

Impact assessment

The 2016-2019 activation of the ESI in response to the refugee crisis in Greece was subject to an evaluation in 2019.

For further information, see: 
<https://europa.eu/!Vq34DU>
.

WEBSITE FOR more information

<https://europa.eu/!TD74kT>

Legal basis

Council Regulation (EU) 2016/369 and Council Regulation (EU) 2020/521, activating the emergency support under Regulation (EU) 2016/369.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 231.7 |  |  |  |  |  |  | 231.7 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 416.6 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 416.6 |

(\*) Only Article 15(3) of the financial regulation.

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 231.7 | 0.0 |
| Payments | 313.6 | 90.0 |

–The programme was set up in 2020 for a limited period of time (due to end in January 2022).

–The programme was financed with EUR 2.7 billion from the 2014-2020 multiannual financial framework and EUR 750 million from Member States’ contributions (external assigned revenue). Of this envelope, total commitments amounting to EUR 3 billion were used in 2020 to expand the portfolio of advance purchase agreements with promising vaccine candidates.

–Regarding payments, the initially voted budget credits of EUR 1 380 million for 2020 proved inadequate in view of the needs to make prompt payments in connection to emergency support and advance purchase agreements with vaccine producers. In response, the ESI payment envelope was expanded twice, in July 2020 with the transfer of EUR 140 million from the Directorate-General for Migration and Home Affairs’ budget lines, and in September 2020 with a transfer of EUR 1 090 million in payments credits in the context of amending budget No 8/2020. This brought the total available payment credits to EUR 2 610 million. Of this, some EUR 2 231 million had been executed by the end of 2020 (85% implementation rate).

–In 2021, the Commission proposed to reinforce the ESI with an additional EUR 231.7 million in commitment appropriations (EUR 75.5 million as a budgetary transfer from the Solidarity and Emergency Aid Reserve and EUR 156.2 million under draft amending budget No 2/2021). The objective of this reinforcement was to support new actions and create a reserve of EUR 100 million for emerging needs. This reserve has been consequently allocated to grants to Member States to support the accessibility of tests for the delivery of EU Digital COVID Certificates. The budget that was not implemented, together with the unused external assigned revenue, was allocated for example to the donation of vaccines to low and middle-income countries.

–The 2021 voted payment appropriations (EUR 90 million) were not sufficient to honour some outstanding commitments. Therefore, some EUR 378.8 million in payment appropriations was carried over in the context of the Commission decision on the non-automatic carryover of 2020 appropriations. Most of the remaining payments were executed by the end of 2021. However, payment credits will still be needed in 2022 (and 2023) to honour obligations.

–There are no voted commitment appropriations in the EU budget 2021 for the ESI.

–The instrument expired on 31 January 2022 and hence no commitment appropriations were requested for 2022.

–ESI is an emergency support instrument intended to cover the financing of emergency support operations to respond to the urgent and exceptional needs in Member States as a result of a natural or man-made disaster, in case of activation by the Council under the emergency support regulation (Regulation (EU) 2016/369). In the context of the outbreak of the COVID‑19 crisis, the ESI was activated in April 2020 with a budget of EUR 2.7 billion, in order to provide a needs-based emergency response, complementing the response of the affected Member States. This budget was increased by EUR 750 million in December 2020 with the contributions from Member States. Moreover, subsequent actions as a result of the health crisis were planned under the EU4Health programme, therefore no commitment appropriations were voted under the ESI as of 2021.

–As regards the payment appropriations voted in 2021, they were intended to address the actions started in 2020 under the ESI, ensuring a proper EU response to the health crisis.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 0.3 | | 0 | Score 0\*: 8  Score 0: 224 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

–The ESI is needs-based, in the context of a quickly evolving pandemic. No performance framework or indicators are prescribed in the legal basis, since the instrument was designed to be maximally adaptable to emerging needs. The breadth of scope and possible interventions, in the context of a quickly evolving epidemiological situation, made for a challenging implementation landscape, also taking into account the limited EU competences in the health domain.

–Nevertheless, the ESI has proven its effectiveness in quickly mobilising resources towards the identified needs. The flexibility of the instrument, together with the mandate given to the Commission to centrally manage the funding, allowed its quick deployment.

–The major focus of the instrument (around 70% of funding) has been on the vaccines initiative, which allowed the conclusion at an early stage of advance purchase agreements with pharmaceutical companies developing COVID‑19 vaccines, providing the necessary investment to advance the scientific progress and production capacities, as a result of which 4.6 billion doses of COVID‑19 vaccines were secured for Member States. Funds were also allocated to vaccine sharing mechanism in order to secure 200 million vaccine doses and auxiliary material in low and lower-middle income countries.

–The instrument allowed individual Member States to engage with vaccine developers to secure supplies, and leveraged the scale of the EU’s investment to reduce prices and obtain contractual conditions on issues such as liability and capacity increase, in order to mitigate Member States’ risks going forward. At the same time, the advance purchase agreements funded by the instrument are by nature risky investments. While the Commission designed a portfolio of contracts with the most promising candidates across a wide range of technologies, there was no guarantee that individual vaccines would be successful or authorised in the EU, or that producers would be able to step up their production at the levels they had committed to.

–The instrument delivered some 10 million masks to medical staff in the early phase of the crisis, when the pressure on the supply of equipment was at its highest.

–The programme also allowed all Member States to have access to the therapeutic Remdesivir and to procure and donate over 23 million rapid antigen tests to the interested Member States. It also financed clinical trials to test repurposed medicines, the use of convalescent COVID‑19 patients’ plasma, the EU wastewater monitoring system and the urgent characterisation of the SARS-CoV-2 Omicron variant. All of these initiatives would have been unlikely to be financed in the absence of this programme.

–In total over 1 000 flights and 500 operations have been funded under the mobility package, which provided support for the cargo transport of COVID‑19-related medical items, the transport of medical personnel and the transfer of patients. The transport of more than 450 health workers and approximately 350 patients was facilitated.

–The instrument provided support for the development of interoperability between national contact tracing apps and the stepping up of testing capacity across the seven Member States that expressed an interest. A total of 9 222 volunteers and professionals have been trained in testing techniques, in addition to the 1 795 mobile testing teams established and 1 263 309 tests conducted. The activities were implemented from July 2020 to end September 2021. The instrument financed grants to 24 interested Member States so that they could join the EU gateway for issuing Digital COVID Certificates as a proof of vaccination, recovery or negative test, between 29 March and 31 December 2021. Additionally, grants to 18 Member States supported the accessibility of tests for the delivery of the Digital COVID Certificate, for the period from 1 June to 31 October 2021.

–The provision of training in intensive care skills has proved very successful to increase the regular intensive care unit staff’s capacity to take care of COVID‑19 patients. With the collaboration of the European Society of Intensive Care Medicine, more than 17 000 professionals were trained in 24 EU Member States and the United Kingdom, in 717 hospitals during the period from August 2020 to May 2021. A total of 5 696 doctors and 6 400 registered nurses were certified. After the Commission received requests from non-EU countries and international organisations to benefit from the established system and access the training platform, an assignment agreement settling the transfer of rights from the Commission to the European Society of Intensive Care Medicine was signed.

–The instrument has also funded the supply of at least 200 ultraviolet disinfecting robots to hospitals across the EU, providing efficient and effective solutions to ensure the safety of healthcare environments and their staff. A total of 301 robots were delivered to hospitals in all 27 Member States. Four robots weren’t delivered as the hospitals concerned showed no interest in them.

–While the instrument has only been operational since April 2020, the European Court of Auditors’ review on the EU’s initial contribution to the public health response (01/2021), published in January 2021, acknowledged the role of the instrument in complementing Member States’ and other EU responses. The Court did not make recommendations but acknowledged that it was a challenge for the EU to rapidly complement the measures taken within its formal remit with additional actions, as public health is primarily a national competence. With regard to the Commission’s financial support to vaccine development, the Court highlighted that the Commission mitigated the inherent risk linked to vaccine development by investing in a range of vaccine technologies and companies.

ESF+

EUROPEAN SOCIAL FUND+

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 45.3 million  people had been supported by the European Social Fund and by Youth Employment Initiative actions by the end of 2020. | 5.4 million  people had found a job (including being self-employed) thanks to the European Social Fund and Youth Employment Initiative actions by the end of 2020. | 7.4 million  people had gained a qualification thanks to the European Social Fund and Youth Employment Initiative actions by the end of 2020. | 2.2 million  participants were in education or training thanks to the European Social Fund and Youth Employment Initiative support by the end of 2020. |
| 15 million  people benefited from food assistance in 2020 under the Fund for European Aid to the Most Deprived. | 1.96 million  people received material assistance under the Fund for European Aid to the Most Deprived in 2020. | 12 149  job placements had been obtained since the start of the targeted mobility schemes in 2015 and ‘Your first EURES job’ by the end of the first semester of 2021 under the Employment and Social Innovation programme. | EUR 1.2 billion  worth of loans were awarded to 97 271 microenterprises between 2014 and 2020 thanks to EUR 222.7 million in guarantees for 104 microfinance intermediaries under the Employment and Social Innovation programme. |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

ESF+ (million EUR)

|  |  |
| --- | --- |
| Financial programming | 98 957.9 |
| NextGenerationEU |  |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 2.7 |
| Total budget for 2021-2027 | 98 960.7 |

(\*) Article 15(3) of the financial regulation.

Recovery assistance for cohesion and the territories of Europe programme (REACT-EU) under the ESF (million EUR)

|  |  |
| --- | --- |
| Financial programming |  |
| NextGenerationEU | 19 161.4 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities |  |
| Total budget for 2021-2027 | 19 161.4 |

(\*) Article 15(3) of the financial regulation.

Rationale and design of the programme

The European Social Fund+ (ESF+) is the EU's main instrument for investing in people’s employment, education and skills, and in social inclusion to support economic, social and territorial cohesion in the EU.

The responsibility for employment and social policy lies primarily with the Member States. The EU mostly supports and complements Member States’ efforts by co-financing projects at the national and regional levels using ESF+ resources.

Challenge

The EU’s relevance, resilience and success in the decades to come will depend on its ability to remain competitive in the global economy and to ensure high levels of employment, education and training, health, social inclusion and active participation in society. This in turn requires the EU to invest in people, tackle various social challenges (including unemployment and persistently high rates of poverty and social exclusion of marginalised groups, such as Roma and migrants) and ensure fair labour mobility.

Ample evidence demonstrates that, given the scale and effect of the challenges, EU policies aiming at promoting social cohesion and social rights would not have been implemented without complementary EU investment. EU-level support of Member States’ efforts helps promote reforms that are beneficial to individual Member States and the EU as a whole.

Mission

The ESF+ aims at tackling the above challenges to advance towards a more social and inclusive EU, as envisaged in the European Pillar of Social Rights.

Objectives

The specific objectives of the ESF+ are to:

a.improve access to employment and activation measures for all jobseekers in the labour market, in particular the young (e.g. through the implementation of the ‘youth guarantee’), long-term unemployed people, disadvantaged groups and inactive people, and promote self-employment and the social economy;

b.modernise labour market institutions and services to assess and anticipate skills needs and ensure timely and tailor-made assistance and support for labour market matching, transitions and mobility;

c.promote gender-balanced labour market participation, equal working conditions and a better work–life balance, including through affordable care for children and other dependents;

d.promote the adaptation to change by workers, enterprises and entrepreneurs, active and healthy ageing and a healthy working environment;

e.improve the quality, inclusiveness, effectiveness and labour market relevance of education and training systems, so as to support the acquisition of key competences and promote dual-training systems and apprenticeships;

f.promote equal access to and completion of quality and inclusive education, training and learning, in particular for disadvantaged groups, throughout the various stages of life;

g.promote lifelong learning, in particular flexible upskilling and reskilling opportunities for all, taking into account entrepreneurial and digital skills; better anticipate change and new skills requirements based on labour market needs; facilitate career transitions; and promote professional mobility;

h.foster active inclusion with a view to promoting equal opportunities, non-discrimination and active participation and improving employability, in particular for disadvantaged groups;

i.promote the socioeconomic integration of non-EU-country nationals, including migrants;

j.promote the socioeconomic integration of marginalised communities, such as Roma people;

k.enhance equal and timely access to quality, sustainable and affordable services, including services that promote access to housing and person-centred care, including healthcare; modernise and promote access to social protection, with a particular focus on children and disadvantaged groups; and improve accessibility (including for people with disabilities) to and the effectiveness and resilience of healthcare systems and long-term-care services;

l.promote the social integration of people at risk of poverty or social exclusion, including the most deprived people and children;

m.address material deprivation by providing food or basic material assistance to the most deprived, including children, and to provide accompanying measures supporting their social inclusion.

The Employment and Social Innovation (EaSI) strand of the ESF+ (direct management) supports evidence-based policymaking, social experimentation, capacity-building and mutual-learning activities, along with job placements under the targeted mobility scheme.

Actions

The ESF+ carries out a variety of interventions described in national and regional programmes, including vocational education and training, active labour market policies, building the capacity of public employment services, social inclusion activities, distribution of food and goods, etc. Under direct management, it supports experimentation, social entrepreneurship, fair labour mobility and evidence-based policymaking.

Delivery mode

The ESF+ is implemented under shared and direct management. The Directorate-General for Employment, Social Affairs and Inclusion is the lead DG for the Commission.

LINK TO THE 2014-2020 multiannual financial framework

The ESF+ merges several funds/programmes from the 2014-2020 multiannual financial framework, namely the European Social Fund (ESF), the Youth Employment Initiative, the Fund for European Aid to the Most Deprived (FEAD) and EaSI.

Impact assessment

The impact assessment of the ESF+ was carried out in 2018.

For further information please consult: 
<https://europa.eu/!uV97Jw>

WEBSITE FOR more information

<https://europa.eu/!djQfMd>

Legal basis

Regulation (EU) 2021/1057 of the European Parliament and of the Council.

Implementation and performance

Budget implementation

Budget programming of the ESF+ (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming (\*) | 174.0 | 16 455.8 | 16 819.0 | 17 280.7 | 17 727.9 | 15 012.6 | 15 487.9 | 98 957.9 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 2.7 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 2.7 |
| Total | 176.7 | 16 455.8 | 16 819.0 | 17 280.7 | 17 727.9 | 15 012.6 | 15 487.9 | 98 960.7 |

(\*) Article 15(3) of the financial regulation.

(\*\*) These amounts take into account the contribution of the ESF+ to the Just Transition Fund, the Border Management and Visa Instrument and other instruments (if any). The total does not include financing under the recovery assistance for cohesion and the territories of Europe programme.

Budget programming of the recovery assistance for cohesion and the territories of Europe programme (REACT-EU) under the ESF (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming (\*) |  |  |  |  |  |  |  |  |
| NextGenerationEU | 15 918.1 | 3 243.3 |  |  |  |  |  | 19 161.4 |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities |  |  |  |  |  |  |  |  |

Cumulative implementation rate of the ESF+ at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | Budget | Implementation rate |
| Commitment | 145.7 | 98 960.7 | 0% |
| Payments | 5.4 |  | 0% |

Cumulative implementation rate of the recovery assistance for cohesion and the territories of Europe programme (REACT-EU) under the ESF at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | Budget | Implementation rate |
| Commitment | 15 434.9 | 19 161.4 | 81% |
| Payments | 2 081.1 |  | 11% |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 143.1 | 12 914.6 |
| Payments | 4.9 | 552.8 |

–In the shared management strand of the ESF+, significant delays materialised at the start of implementation. The most common reasons for the delays in the preparation of the 2021-2027 programming documents are:

othe delay in the adoption of the ESF+ regulation (adopted on 24 June 2021);

othe priority given by the Member States to the recovery assistance for cohesion and the territories of Europe programme (REACT-EU) and/or the Recovery and Resilience Facility, given that the possibility to receive support under the former elapses in 2023;

othe extensive reprogramming efforts concerning the Coronavirus Response Investment Initiatives – as a result, the focus of managing authorities shifted from ESF+ programming to Coronavirus Response Investment Initiative Plus amendments in order to provide an immediate response to the COVID-19 crisis;

oproblems stemming from the need to activate different funding sources for similar or complementary purposes;

othe absence of agreement between national entities on the allocation of the ESF+ to different programmes;

opending decisions on the Just Transition Fund (eligible area of support, scope for intervention, agreement after regional elections, etc.); and

oadministrative delays due to governmental changes in around 10 Member States.

–As a result of the above delays, the budget allocated in 2021 to the shared management strand of the ESF+ could not be utilised. The implementation of the shared management strand is expected to start in 2022 with the adoption of programmes, for which a pre-financing amount of 0.5% will be paid. In addition, the first interim payments are expected in 2023, depending on the level of implementation on the ground.

–As regards the direct management strand of the ESF+ (EaSI), in 2021 there were delays in the implementation due to the late entry into force of the ESF+ regulation, the impact of the pandemic on meetings and the ability of some of the stakeholders to take part in EaSI calls for proposals. However, the Commission anticipated the preparatory steps by initiating the programming exercise as early as May 2020. The financing decision for 2021 was thus adopted in June 2021, so that implementation could start as soon as possible.

–DG Employment, Social Affairs and Inclusion’s proposal for the 2023 draft budget acknowledges the difficulties encountered in 2021 and reflects the assessment of the 2022 budget execution. In order to ensure 100% execution from 2023 on, without any abnormal backlog, it was decided to reduce the amount of commitments requested. The cut has been carefully weighted so as not to negatively affect the delivery of the programmes’ objectives in the long term.

–Seven calls for proposals were published in 2021, all to be awarded in 2022. In 2022 and 2023, EaSI will continue to support the implementation of the European Pillar of Social Rights. Activities will be programmed and implemented to support the effectiveness of employment and social policies. EaSI will keep supporting evidence-based policymaking through the funding of statistical data on working conditions, as well as studies. In 2022, the Commission will allocate EUR 48 million in grants, EUR 48 million in procurement and EUR 22 million in indirect management.

–EaSI will continue activities to enhance cooperation in tackling undeclared work under Decision (EU) 2016/344. It will also continue to support the implementation of the EURES regulation (Regulation (EU) 2016/589). Action to support targeted mobility schemes and cross-border cooperation will be stepped up, building on the experiences gained in previous years. However, the support provided to the EURES network will no longer be funded under EaSI as the European Labour Authority will take it over under the current multiannual financial framework.

–The recovery assistance for cohesion and the territories of Europe programme (REACT-EU) will ensure a smooth transition between the 2014-2020 and 2021-2027 periods. It will provide financial support to the Member States to help them recover from the economic and social consequences of the COVID-19 crisis. In 2021, an initial pre-financing amount of 11% was paid upon the adoption of the related programmes (both ESF and FEAD) to help Member States put quick and efficient delivery in place for recovery measures.

Contribution to horizontal priorities

EU budget contribution in 2021 (excluding the shared management strand, for which the programmes will only be adopted in 2022) (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| 0.22 | 0.00 | Score 0\*: EUR 143.1 million  Score 1: 0 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Unemployed, including long-term unemployed, participants reached |  |  |  | No results | No data |
| Number of participants aged 55 years and above reached |  |  |  | No results | No data |
| Young people aged 18-29 years reached |  |  |  | No results | No data |
| Participants with lower-secondary education or less (ISCED 0-2) reached |  |  |  | No results | No data |
| Participants considered part of disadvantaged groups reached (participants with a foreign background, minorities including participants from the Roma community, non-EU-country nationals) |  |  |  | No results | No data |
| Quantity of food distributed |  |  |  | No results | No data |
| Number of children below 18 years of age benefiting from food, material or voucher support |  |  |  | No results | No data |
| Number of information-sharing and mutual-learning activities |  |  |  | No results | No data |
| Number of social experimentations |  |  |  | No results | No data |

(\*) % of target achieved by the end of 2021.

–Performance assessments for the shared management strand and the direct management strand of the ESF+ will be provided once the implementation has started.

–At the reporting date, none of the ESF+ programmes under the shared management strand had been adopted by the Commission. However, with eligibility starting retroactively on 1 January 2021, Member States will have a backlog of ongoing operations to be included in the ESF+ programmes. This should partially compensate for the delays in the programming phase.

–With regard to the direct management strand, support structures are being established, such as the EaSI national contact points in each country providing information about EaSI calls, projects and results to improve the participation in the EaSI strand and to assist in upscaling, mainstreaming and/or replicating EaSI project results, for instance by using other funds. Furthermore, additional subsets of indicators have been designed by DG Employment, Social Affairs and Inclusion as part of the performance framework of the EaSI strand. Input and output indicators will become available at the end of 2022, by which time the measures under the 2021 work programme will have been implemented and finalised.

2014-2020 multiannual financial framework – European Social Fund

The ESF is the EU’s main 2014-2020 multiannual financial framework instrument for supporting jobs, helping people get better jobs, ensuring fairer job opportunities for all and supporting upskilling and reskilling. It works by investing in the EU’s human capital – its workers, its young people and all those seeking a job. ESF financing improves job prospects for millions of people, in particular those who find it difficult to get work.

Budget implementation

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitment | 93 619.5 | 93 630.5 | 100% |
| Payments | 73 353.0 |  | 78% |

–The ESF has now reached cruising speed and the difficulties relating to implementation, such as the late start of programmes at the beginning of the 2014-2020 programming period, have been addressed.

–Implementation progress and challenges were addressed in the regular ESF Technical Working Group and ESF Committee meetings. The main challenges identified were linked to implementation starting slowly, to the high level of complexity associated with ESF management and to the need for the active involvement of stakeholders and their representatives at all stages of the projects. Discussions focused, for example, on promoting the use of simplified cost options in ESF programmes and getting all relevant stakeholders more involved by sharing best practices. These challenges will be further addressed in the 2021-2027 programming period, with the aim of continuing to simplify the implementation. For instance, the regulation for 2021-2027 facilitates the roll-over of existing designations of implementing authorities. Programming will also be simplified through streamlined partnership agreements and programmes and through lighter procedures for programme amendments. The 2021-2027 rules allow for an increased focus on results and for easier payments through the more extensive use of simplified cost options and financing not linked to costs.

–By mid January 2022, all amendments concerning the 2021 allocation for recovery assistance for cohesion and the territories of Europe (REACT-EU) had been adopted. DG Employment, Social Affairs and Inclusion worked in close contact with the managing authorities to make sure that ESF / Youth Employment Initiative resources were swiftly mobilised to allow for a prompt response to the COVID-19 crisis and a swift recovery.

–By the end of 2021, the overall ESF project selection rate, including for the additional allocation for recovery assistance for cohesion and the territories of Europe (REACT-EU, stood at 105%. In 2021, nearly EUR 14.6 billion had been paid to the 2014-2020 ESF programmes, along with nearly EUR 320 million for REACT-EU, lifting the absorption rate to 61% (total payments made compared to allocation, including REACT-EU). The level of ESF expenditure certified to the Commission remained high in 2021. This confirms that a mature phase of implementation has been reached for the majority of programmes. Implementation has not been affected by the COVID-19 health crisis thanks to the effects of the programme amendments to the Coronavirus Response Investment Initiatives and the higher flexibility provided for all European structural and investment funds.

–In regard to the Youth Employment Initiative, the mature phase of implementation continued in 2021. By the end of 2021, the total eligible cost of Youth Employment Initiative operations selected for support was EUR 11.3 billion, and more than EUR 7.3 billion had been declared by beneficiaries. By the end of 2021, nearly EUR 4.5 billion had been paid to the Member States in relation to the Youth Employment Initiative (including interim payments and pre-financing).

–According to the 2020 annual implementation reports, the differences among the various types of region, which were significant in the early years of implementation, have now almost entirely disappeared. The implementation of the ESF / Youth Employment Initiative is picking up steam in Member States and regions that were lagging behind. However, some differences still exist in terms of expenditure declared, for instance due to capacity constraints on the part of Member State authorities. Implementation weaknesses are regularly addressed bilaterally by DG Employment, Social Affairs and Inclusion’s geographical desk officers in the context of ESF implementation and ESF+ programming negotiations with managing authorities.

–The use of financial instruments also increased. Eleven Member States had included them in their programmes for the 2014-2020 period by the end of 2020, mainly under thematic objective 8 ‘Employment’ (EUR 377 million). In 2014-2020 their use was extended to all thematic objectives, and was intensified thanks to improved and more flexible implementation options. The increased take-up of financial instruments was also due to a joint initiative of the European Commission and the European Investment Bank aiming at building capacity within the ESF managing authorities.

–In 2022, DG Employment, Social Affairs and Inclusion will continue providing technical and policy guidance on the programmes through the monitoring committees to ensure that they are on track to deliver the expected results.

–DG Employment, Social Affairs and Inclusion will run the ESF Transnational Cooperation Platform until its conclusion in July 2022. This is the framework for activities relating to transnational cooperation between the Member States’ ESF managing authorities and other stakeholders involved in ESF planning, implementation and monitoring. It concerns four communities of practice: employment, education and skills; social inclusion; social innovation; and result-based management. Its aim is to foster mutual learning and good practices, while paving the way for the 2021-2027 programming period and ESF+. Due to the pandemic, all activities took place online. After July 2022, and during the 2021-2027 period, transnational cooperation activities will take place under the ESF social innovation+ initiative. With a budget of EUR 197 million, the initiative will be implemented under indirect management by the Lithuanian European Social Fund Agency. The first activities of the initiative are expected to start in the second half of 2022.

–The implementation of the programmes is expected to continue at cruising speed in 2022, reinforcing the positive trend observed in 2021. Project selection rates and interim payment requests are expected to increase further. The gap between the project selection rate on the ground and the implementation rate of the ESF is expected to reduce significantly in 2022 and 2023. According to the Member States’ forecasts, EUR 13.4 billion is expected to be sent to the Commission for reimbursement in 2022, lifting the implementation rate to 75% of the total envelope. An additional EUR 12.5 billion is expected to be requested for reimbursement in 2023, further raising the ESF’s implementation rate to 88%. The COVID-19 crisis is not expected to affect the level of interim payments in 2022 and 2023. Moreover, DG Employment, Social Affairs and Inclusion will continue its work on assessing programme amendment requests submitted by Member States to ensure that the ESF and Youth Employment Initiative programmes are policy and result oriented.

–Member States will submit their annual implementation reports in 2022 with information updated as at the end of 2021. These will contain both quantitative and qualitative evidence on the implementation of the ESF.

–In March 2022, in order to help Member States and regions to provide emergency support to people fleeing from Russia's invasion of Ukraine, the Commission adopted the cohesion’s action for refugees in Europe initiative. The initiative introduced the necessary flexibility into the 2014-2020 cohesion policy rules to allow the swift reallocation of available funding to provide such emergency support. To complement this initiative, the Commission has proposed to increase by EUR 3.4 billion the total amount of pre-financing from REACT-EU. The impact of the crisis in Ukraine will be known in the coming years, once the Member States submit their annual implementation reports.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Participants in employment, including self-employment, upon leaving the ESF intervention | 0% | > 100% | 24% in 2023 | 29% of participants compared to a target of 24% | On track |
| Participants gaining a qualification upon leaving the ESF intervention in education, training and vocational training for skills and lifelong learning | 0% | > 100% | 23% in 2023 | 26% of participants compared to a target of 23% | On track |
| Inactive young people not in employment, education or training gaining a qualification or in employment upon leaving the Youth Employment Initiative intervention | 0 | > 100% | 0.26 m in 2020 | 0.26 million compared to 0.26 million inactive participants | Achieved |

(\*) % of target achieved by the end of 2020.

–With an overall budget of EUR 133.7 billion (from the EU and the national share), the ESF has recorded a positive trend in implementation. Available data relating to the ESF’s financial implementation by the end of 2021 suggest that, thanks to the Coronavirus Response Investment Initiatives and initiatives relating to the recovery assistance for cohesion and the territories of Europe programme, the rate of implementation has not slowed down in the exceptional circumstances of the COVID-19 pandemic.

–The ESF has been successfully promoting sustainable and quality employment (specific objective 1), having supported 17 million participants by the end of 2020. This marks a steady increase since 2016 and a significant improvement compared to 2019 (14 million participants). The trend reflects the fact that an acceleration in implementation and in the achievement of outputs and/or results typically takes place after the midterm. Moreover, all Member States had implemented relevant projects/operations by the end of 2020. These usually consist of relatively short interventions, the results/outputs of which materialise faster. Also, the ESF programmes from the 2007-2013 period have been fully implemented, allowing managing authorities to focus on the 2014-2020 ESF programmes.

–In the field of social inclusion (specific objective 2), the ESF contributes to reducing poverty in the EU by targeting specific groups such as low-skilled people, (long-term) unemployed people, older people, people with disabilities and people with a migrant/foreign background. The project selection rate of 98.1% by the end of 2020 shows that progress is relatively well underway, with only limited differences among Member States. In 2021 the selection rate increased significantly, with an average of 100%. DG Employment, Social Affairs and Inclusion accompanied the managing authorities in reprogramming the different programmes to include COVID-19 support measures, notably short-time work schemes and the option of 100% co-financing in the 2020-2021 accounting year. DG Employment, Social Affairs and Inclusion geographical desk officers are in close bilateral contact with managing authorities to ensure all implementation challenges are effectively addressed. At the EU level, 40% of all ESF participants supported by the end of 2020 were considered to be part of disadvantaged groups. This value is in line with the target (40%). The indicator shows that the ESF is successfully reaching and supporting the most vulnerable groups, and thus provided an important contribution to the headline target of lifting people out of the risk of poverty or social exclusion. The evaluation of ESF support for social inclusion, finalised in 2020, showed that the provision of personalised support is costly and requires more intense training of providers. However, sufficient time and personalised support for participants are crucial to ensure needs are met and to generate the desired results. For these reasons, DG Employment, Social Affairs and Inclusion will continue promoting the use of long-term strategies on long-term unemployment and the implementation of more person-centred approaches, and will advocate against the use of institutional care, including under the ESF+. Moreover, under the ESF+, Member States will have to allocate at least 25% of their ESF+ resources to promote social inclusion. DG Employment, Social Affairs and Inclusion will use evidence on costs from the current programming period and will continue advocating for personal support in the ESF+ programme negotiations, because this approach has proved to be more effective in the long run.

–In the field of education and training (specific objective 3), implementation is relatively high across all regions, with the project selection rate by the end of 2020 of 100% or more in most Member States and types of region. In terms of participation and target achievement rates, no substantial differences were observed. All Member States that programmed interventions under this objective now report participation. In total, 16.9 million participants were recorded for all operations in the field by the end of 2020, with 6.2 million of them having reached an individual short-term result. This represents an improvement compared to 2019 (13.4 million). The increase in the rate of implementation and in the achievement of outputs and/or results is attributable to the same reasons as for specific objective 1. In terms of immediate results, more than 4.3 million participants gained a qualification with support of ESF investments with an education objective, while another 1.2 million participants were in education/training upon leaving the intervention. In all Member States, COVID-19 measures had an impact on progress in relation to implementing education investments. For instance, many education providers were unable to offer training. Projects adapted to these consequences by adjusting training offers and education programmes, for example by introducing distance learning.

–Institutional capacity investments (specific objective 4) supported 61 365 projects as of 2020 (compared to 27 644 in 2018), targeting public administrations or public services at the national, regional or local level. In terms of individual results, such interventions mainly contributed to public officials gaining a certain type of qualification (229 277), but the most meaningful results are procedural in kind, such as a shorter amount of time required for certain operations or specific positive results for organisations, public administrations, the judiciary and civil-society organisations such as implementing information technology systems, revising or simplifying procedures and increasing regulatory scrutiny.

–In the field of support for young people not in employment, education or training (specific objective 5), by the end of 2020 a total of 3.4 million young people had benefited from Youth Employment Initiative support. At the EU level, participants are well balanced from a gender perspective. The outputs and results under this objective indicate a positive trend in implementation and good progress in reaching the targets. The findings of the relevant ESF / Youth Employment Initiative evaluation highlight that integrated pathways are needed to provide better support to disadvantaged groups across all ESF programmes. This will be addressed in the ESF+ through a specific focus on youth employment. Member States with a level of young people not in employment, education or training above the EU average should devote at least 12.5% of their ESF+ resources to helping them get a qualification or a good-quality job. All other Member States must allocate an appropriate amount of their ESF+ resources to targeted actions to support youth employment measures. Moreover, under the ESF+, DG Employment, Social Affairs and Inclusion intends to support better outreach to young people not in employment, education or training, a person-centred approach and more inclusive measures. In this regard, the directorate-general will launch the ‘aim, learn, master, achieve’ initiative, working on scaling up a cross-border youth mobility scheme for those young people not in employment, education or training who are most disadvantaged due to personal or structural reasons. By giving them the opportunity to create new connections across Europe, this initiative will foster their inclusion in society and help them find their way to the job market in their home countries more easily. Member States will be able to programme activities in their ESF+ measures at the national or regional level as from 2022. A call for proposals will be launched in the fourth quarter of 2022 as a one-off initiative to help implement the transnational partnerships and serve as a pilot scheme for a few Member States facing obstacles in relation to ‘aim, learn, master, achieve’ programming in 2022.

–Concerning the response to the COVID-19 crisis, the ESF was primarily used to support people affected by the crisis and to increase the capacity of social and healthcare services. This was pursued through support for short-time work schemes, supplementary wages for healthcare personnel, funding for healthcare equipment and improved access to healthcare and social services for vulnerable groups. Overall, thanks to the flexibility and additional resources introduced by the Coronavirus Response Investment Initiative Plus and recovery assistance for cohesion and the territories of Europe initiatives, no negative effect on ESF performance was noticed by the end of 2020, according to the latest Member State annual implementation reports.

–The COVID-19 pandemic has shown that special attention needs to be paid to vulnerable groups, as they have been hit the hardest by the crisis and risk being left behind. The need to further support the development of digital skills across the EU has also become evident. Member States should focus on these target groups and priorities for medium- and long-term recovery through ESF, recovery assistance for cohesion and the territories of Europe and ESF+ programming. The ESF+ regulation sets out thematic concentration requirements that will ensure an increased focus on actions promoting social inclusion, fighting poverty and developing the skills needed for the digital and green transitions. It also includes a more ambitious requirement for investing in young people and addressing child poverty. Moreover, learning from the COVID-19 crisis, a derogation article was added to the ESF+ regulation setting out the possibility to adopt temporary measures to respond to possible future exceptional and unusual circumstances.

2014-2020 multiannual financial framework – Fund for European Aid to the Most Deprived

FEAD supports EU Member States’ measures to provide assistance (including food, clothing and other essential items for personal use, such as shoes, soap and shampoo) to the most deprived. Material assistance goes hand in hand with social inclusion measures, such as guidance and support to help people out of poverty. National authorities may also support stand-alone social inclusion measures that help the most deprived people integrate better into society.

Budget implementation

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitment | 3 813.7 | 3 813.7 | 100% |
| Payments | 2 931.1 |  | 77% |

–In 2020, almost 15 million people benefited from FEAD food assistance (with around 430 000 tonnes of food being distributed, compared to approximately 350 000 tonnes in 2019), approximately 1.96 million received material assistance (800 000 in 2019) and around 30 000 benefited from social inclusion support.

–Regarding financial implementation, the total committed eligible public expenditure was EUR 643 million in 2020 (EUR 608 million in 2019). At the end of 2020, the cumulative funds committed from 2014 to 2020 amounted to nearly EUR 3.9 billion, or 85% of the total resources of the programmes (including EU funds and national co-financing). The approximately EUR 552.2 million paid to beneficiaries in 2020 marks a notable increase compared to previous years (EUR 478.5 million in 2019). This increase is mainly due to operations restarting in Romania and to the increased demand triggered by the COVID-19 crisis, which worsened conditions for vulnerable people already in receipt of FEAD support and led new people to seek support. The profile of target groups remained broadly stable.

–In 2020, the onset of the COVID-19 crisis resulted in lower expenditure declarations by Member States. During the second quarter of 2020 they represented EUR 51 million, less than half of the corresponding amount from 2019 (EUR 128 million). Thanks to various amendments, testifying to the flexibility and adaptability of FEAD, implementation rates recovered in the second half of 2020. In the end, the total FEAD amount declared during 2020 was only slightly lower than the total amount declared during 2019 (EUR 549 million compared to EUR 573 million during 2019). The total amount paid for FEAD in 2021 increased to EUR 610.8 million due to the extra resources (EUR 81 million) made available under the recovery assistance for cohesion and the territories of Europe programme.

–In 2022 and 2023, FEAD is expected to continue to support a similar number of people among the target groups of the most deprived, as the consequences of the COVID-19 crisis continue disproportionally to affect the most vulnerable people in the society. Based on Member States’ forecasts, including the additional credits for the recovery assistance for cohesion and the territories of Europe programme, the implementation rate is expected to increase to 84% in 2022 and to be close to 100% in 2023.

–As part of the cohesion’s action for refugees in Europe initiative, funding from FEAD will also be crucial in order to provide much-needed food and basic material assistance to the people fleeing Russia’s invasion of Ukraine.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of persons receiving assistance from the Fund | 0 | > 100% | 12.7 m in 2020 | 16.9 million compared to 12.7 million (\*\*) | Achieved |

(\*) Average of results for 2014-2020 compared to target.

(\*\*) A person may be recipient of multiple forms of FEAD support and thus reported for more than once.

–According to the 2020 FEAD annual implementation reports, the fund contributed substantially to alleviating the worst forms of poverty in the EU and promoting social inclusion for those on the margins of society. Notably, it addressed food deprivation, child poverty and homelessness.

–The support provided by FEAD in 2020 increased, reflecting the impact of the COVID-19 crisis, which aggravated the conditions for existing vulnerable people in receipt of FEAD support and led additional people to seek food aid, including people with precarious jobs (e.g. short-term contracts, temporary or informal work), independent workers and disadvantaged tertiary education students.

–FEAD is well on track to achieve its objectives. Challenges in implementation relating to capacity issues on the part of partner organisations, along with logistical challenges, were mainly connected to the COVID-19 crisis. They were partly tackled by the increased flexibility and reduced administrative burden introduced by the 2020 FEAD amendments. Strong cooperation between managing authorities and partner organisations also proved to be essential in addressing challenges.

–The findings of a 2017 structured survey on end recipients, of an external evaluation and of the open public consultation were used for FEAD’s midterm evaluation, and fed into the negotiations for the 2021-2027 programmes. Furthermore, the second round of the structured survey on FEAD end recipients is to be carried out in 2022. The results of this survey can be used by the managing authorities to conduct evaluations and draw lessons at the national level. Furthermore, the aggregated EU‑level results of this survey will feed into the ex post evaluation of FEAD, which will be conducted by the Commission.

–Based on FEAD’s midterm evaluation, stakeholders value the fund’s flexibility and less-stringent administrative requirements, along with the established networks and operational delivery modes. Low thresholds allow FEAD to provide aid to people not reached by social services, such as homeless people, and to respond quickly to emerging needs and crises. The midterm evaluation recommended that the 2021-2027 programmes maintain both the focus on these target groups and the existing flexibility. Furthermore, it found that FEAD’s merger with the ESF will allow synergies and open up potential pathways for basic support relating to social inclusion. This will lead to people receiving training and finding work, when the target groups are the same. In addition, the evaluation recommended that Member States follow the regulation closely and avoid introducing requirements at national level that go beyond the requirements of the regulation, resulting in narrower definitions of eligibility.

–The preliminary findings of the ongoing ‘Study supporting the monitoring of FEAD – data collection systems implemented by Member States’ confirm the findings of FEAD’s midterm evaluation.

–These challenges are tackled in the new ESF+ regulation, whereby FEAD operations are integrated into the ESF+. As a result, ESF and FEAD objectives are merged into a single list. This is expected to simplify funding and increase synergy and complementarity between employment, education, social inclusion and support to the most deprived. Specific rules apply to support relating to material deprivation to keep it as streamlined as possible. In addition, simplified monitoring requirements are applied for specific objectives targeting the most deprived. Annual implementation reports will be replaced by the reporting of data via IT tools to allow for regular exchanges between the Commission and the programme authorities, whereas evaluations will be mandatory for all specific objectives.

  

2014-2020 multiannual financial framework – Employment and Social Innovation

The EaSI programme is a financing instrument at the EU level promoting a high level of quality and sustainable employment, guaranteeing adequate and decent social protection, combating social exclusion and poverty and improving working conditions. EaSI has three axes, supporting respectively the modernisation of employment and social policies (Progress axis), job mobility (EURES axis) and access to microfinance and social entrepreneurship (microfinance / social entrepreneurship axis).

Budget implementation

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitment | 882.7 | 899.6 | 98% |
| Payments | 693.6 |  | 77% |

–Up to the end of 2020, EaSI had committed close to EUR 879 million. Of this, 57.5% supported activities under the Progress axis, 20.5% supported activities under the EURES axis and 22% supported activities under the microfinance / social entrepreneurship axis. Therefore, EaSI is broadly on track to achieve the targeted distribution of its funds between its axes.

–In 2021, the Progress axis focused on gathering evidence through studies, analyses and statistics to shape policy developments. The axis fostered a shared understanding of policy options through policy debates. It also promoted the involvement of civil society by providing financial support for 23 key EU-level non-governmental organisations via 23 operating grants.

–In 2021, the EURES axis supported the European Job Mobility Portal and training courses on EURES services, and provided horizontal support to the member organisations of the EURES network. It continued financing cross-border partnerships supporting mobility for frontier workers in the cross‑border regions, along with targeted mobility schemes. The 13 EURES calls for proposals launched between 2014 and 2020 resulted in 94 contracts. Activities under the thematic section focusing on cross-border partnerships have not reached the minimum indicative target for financial commitments, mainly due to the quality of the applications received under the call for proposals. Furthermore, as indicated in the intra-mobility report, cross-border commuting affects certain Member States to a higher degree, with newer Member States affected to a much lesser extent. This affects the level of demand, the proposals submitted and the projects implemented.

–In response to the COVID-19 crisis, deadlines were extended under the calls for proposals launched in 2020, resulting in delays in the implementation of projects and the award of grants, which were finalised in 2021. Out of the seven calls included under the 2020 work programme, six were launched in 2020, resulting in 132 agreements. In order to support the organisations, payments were processed more speedily thanks to: (1) the use of e-signatories and the acceptance of e-documents; and (2) the greater reliance on ex post verification. Furthermore, a call strengthening the role of social partners in mitigating the impact of the COVID-19 crisis was introduced in the 2020 work programme and was launched in February 2021.

–The EaSI financial instruments, implemented by the European Investment Fund, continued to support microenterprises and social enterprises in 2021.

-In 2020, the delegation agreement between the Commission and the European Investment Fund for the EaSI guarantee was amended to introduce COVID-19 support measures allowing for a higher level of risk sharing. Between its launch and 30 September 2021, guarantee agreements worth EUR 401 million were signed with 114 financial intermediaries in 31 countries, which resulted in a total of 154 137 loans to micro- and social enterprises worth EUR 2.5 billion.

-Under the EaSI capacity-building instrument, 17 transactions for an aggregated amount of EUR 39 million were signed in June 2021 with financial intermediaries in 10 countries, of which nine were in the EU and one was in a candidate country (Serbia).

-Under the EaSI funded instrument, 13 transactions for an aggregate amount of EUR 83.6 million had been concluded by the end of 2021, and four additional transactions worth EUR 19.9 million were in the pipeline.

–The EaSI financial instruments will continue to be implemented until the end of their implementation period. The support measures introduced in 2020 to counter the impact of the COVID-19 crisis will be implemented at least until 30 June 2022, in line with the extension of the State Aid Temporary Framework. As for EaSI technical assistance, some operations under the existing framework contracts will still be supported in 2022. However, the advisory services and technical support for microfinance intermediaries and social enterprise finance providers will be offered under the InvestEU Advisory Hub.

–In the 2021-2027 programming period, EaSI is a strand of the ESF+ and is no longer structured in axes. The successor activities under the former microfinance and social entrepreneurship axes will be implemented under the InvestEU Fund.

–DG Employment, Social Affairs and Inclusion’s proposal for the 2023 draft budget fully acknowledges the difficulties encountered in 2021 and reflects the result of the assessment on the execution of the 2022 budget. Furthermore, it takes into account the urgent need for funding to support the people fleeing Russia’s invasion of Ukraine. Therefore, in order to ensure 100% execution from 2023 on, without any abnormal backlog, and to contribute to the common effort to pool funding for refugees from the war, DG Employment, Social Affairs and Inclusion decided to reduce the amount of commitments requested. The cut has been carefully weighted so that it will not negatively affect the objectives of the programmes in the long term.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Businesses created or consolidated – EaSI microfinance guarantee | 0 | > 100% | 41 000 in 2020 | 131 769 compared to a target of 41 000 | On track |
| Businesses created or consolidated – social EaSI social entrepreneurship guarantee | 0 | > 100% | 1 100 in 2020 | 4 783 compared to a target of 1 100 | On track |

(\*) % of target achieved by the end of 2021.

–Compared to 2019, values for the integration of all the horizontal principles showed an increasing trend, paying particular attention to vulnerable groups. However, the scaling-up of EaSI projects is hindered by inadequate follow-up in terms of promoting the projects and their results. EaSI’s efforts to this end will be amplified under the ESF+ through the European Competence Centre on Social Innovation, a database of social innovation projects and the creation of national contact points to guide applicants and beneficiaries. Furthermore, EaSI calls for proposal will be published on the Funding and Tenders portal. This will provide each project with a dedicated place to make its results available to a wider audience. Furthermore, the merger of EaSI into the ESF+ could facilitate the uptake of EaSI projects by the ESF+ managing authorities for further support.

–Progress axis. The 2020 EaSI stakeholder surveys show that EaSI’s stakeholders provided positive feedback on its deliverables. Throughout the reporting period, EaSI continued to support the development and dissemination of both high-quality comparative analytical knowledge and policy initiatives in the field of employment and social affairs.

–EURES axis. In 2019-2020, EURES acted as a catalyst for the provision of transparent labour market information and for the effective recruitment and placing of workers. In 2020, 1 189 798 jobseekers were registered on the EURES portal. This marks a significant increase (+ 110.2%) compared to 2019. However, the number of employers registered increased by only 3%. The major increase in the number of registered jobseekers can be directly related to changes in the labour market due to the COVID-19 crisis and its dampening immediate effect on mobility patterns. Cross-border partnerships reported 195 060 contacts with jobseekers and job changers in 2019-2020. Targeted mobility schemes (such as Your First EURES Job), in comparison, provided services to several hundred jobseekers per year / per scheme, but were more targeted and customised. 0.76% of contacts facilitated by cross-border partnerships resulted in actual placements, along with 29.1% of targeted mobility schemes.

–Microfinance / social entrepreneurship axis. In the reporting period, EaSI continued to provide added value to expand access to and the availability of microfinance, while support for increasing the overall availability of and access to finance for social enterprises gained momentum. A wide range of support activities relating to advisory and technical assistance were offered to microfinance institutions. A significant increase in support for people from non-EU countries was observed (22.1% in 2020, compared to 14.3% in 2019 and 11.9% in 2018). A slight but steady increase in the category of people aged 51 years and above can also be seen. However, support for women, unemployed or inactive people and people aged less than 25 years is decreasing, while people with disabilities received a somewhat equal amount of financing from 2018 to 2020. The reporting is subject to limitations because a large number of applicants for EU microfinance and social entrepreneurship support under the EaSI programme are legal persons (enterprises) and therefore do not provide social data (e.g. gender, age, employment status).

ERASMUS+

ERASMUS+ PROGRAMME

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 2.6 million  European student cards had been issued by universities and other institutions by the end of 2021. | 284  higher education institutions had taken part in the European universities initiative by the end of 2021. | 270 000  short-term mobilities were awarded between programme and partner countries under the 2014-2020 programme. | 94%  of participants in youth mobility activities declared that they increased their skills under the 2014-2020 programme. |
| 900 000  vocational education and training mobilities were awarded under the 2014-2020 programme. | 760 000  young people were involved in youth exchanges under the 2014-2020 programme. | 39%  of participants in youth mobility activities under the 2014-2020 programme came from an underprivileged background. |  |

(\*) Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming (\*) | 25 175.4 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*\*) | N/A |
| Contributions from other countries and entities | 256 |
| Total budget for 2021-2027 | 25 431.3 |

(\*) The financial programming includes the voted amounts of fines pursuant to Article 5 of the financial regulation (i.e. for 2022 and 2023 only).

(\*\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

Erasmus+ is the EU’s programme to support mobility and cooperation in education, training, youth and sport in Europe. The 2021-2027 programme places a strong focus on social inclusion, the green and digital transitions, and on promoting young people’s participation in democratic life. It supports priorities and activities set out inter alia in the European education area, the digital education action plan and the European skills agenda.

Challenge

Cultivating an understanding of and appreciation for the EU and European values requires encouraging Europeans (young people, school pupils, apprentices, students, adults and sportspeople, along with their teachers and educators) to study and train abroad. This will equip them with the necessary set of knowledge, skills and competences, from a lifelong learning perspective, to make them resilient, support high employment rates and foster social cohesion. Giving people with otherwise fewer opportunities access to such experiences in all fields of education, training, youth and sport is especially important.

The added value of tackling this challenge at the EU level stems from the fact that national programmes cannot offer comparable scale, scope and/or coverage in terms of sectors and countries. Indeed, the mid-term evaluation of the 2014-2020 Erasmus+ programme found that, in the absence of this EU programme, mobility of learners and staff, and European cooperation in the sectors covered by the programme, would be substantially reduced.

Mission

The general objective of Erasmus+ is to support, through lifelong learning, the educational, professional and personal development of people in education, training, youth and sport, in Europe and beyond, thereby contributing to sustainable growth, quality jobs and social cohesion, driving innovation and strengthening European identity and active citizenship.

Objectives

Erasmus+ has the following specific objectives:

16.To offer learning mobility opportunities to individuals and groups, and foster cooperation, quality, inclusion and equity, excellence, creativity and innovation at the level of organisations and policies in the field of education and training;

17.To offer non-formal and informal learning mobility opportunities involving active participation to young people, and foster cooperation, quality, inclusion, creativity and innovation at the level of organisations and policies in the field of youth;

18.To offer learning mobility opportunities to sport staff, and foster cooperation, quality, inclusion, creativity and innovation at the level of sport organisations and sport policies.

Actions

The objectives of the programme shall be pursued through the following three key actions:

19.learning mobility (key action 1);

20.cooperation among organisations and institutions (key action 2);

21.support for policy development and cooperation (key action 3).

The objectives shall also be pursued through Jean Monnet actions, which support teaching, learning, research and debates on European integration matters, including on the EU’s future challenges and opportunities.

Delivery mode

Erasmus+ is implemented directly by the European Commission under the leadership of the Directorate-General for Education, Youth, Sport and Culture, in cooperation with the Directorate-General for Employment, Social Affairs and Inclusion for parts of the programme concerning skills and qualifications policy, adult learning and vocational education and training, and with the Education, Audiovisual and Culture Executive Agency as concerns indirect centralised management. Most of the programme is implemented through indirect management via the Erasmus+ national agencies. The latter help to bring the programme closer to its target audience, to take into account the diversity of national education systems, and to better align European and national priorities. The Directorate-General for Education, Youth, Sport and Culture bears the overall responsibility for the supervision and coordination of the agencies in charge of implementing the programme.

LINK WITH THE 2021-2027 multiannual financial framework

Based on lessons learned from the current programme, Erasmus+ 2021-2027 aims to be more inclusive and accessible, more forward-looking, more digital, simpler and greener, and more international, while continuing to support lifelong learning and innovative education and training in Europe. It offers reinforced opportunities for transnational learning mobility and cooperation, including through the European universities initiative and the centres for vocational excellence, and offers new opportunities for school pupils, adult learners, young people and sport staff. The programme will give more attention to fields that are strategic to Europe’s knowledge creation and sustainable growth, by targeting mobility and cooperation projects in strategic forward-looking sectors (climate change, clean energy, digitisation, artificial intelligence, bioscience, etc.), thus contributing to the development of crucial skills, increasing Europe’s innovation capacity and tackling societal challenges.

Impact assessment

The impact assessment of the Erasmus+ programme was carried out in 2018.

For further information, please consult: 
<https://europa.eu/!xV33fD>
.

WEBSITE FOR more information

<https://europa.eu/!DR46Yh>

Legal basis

Regulation (EU) 2021/817 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 2 663.0 | 3 401.7 | 3 560.5 | 3 487.1 | 3 676.0 | 3 868.6 | 4 518.4 | 25 175.4 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 256.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 256.0 |
| Total | 2 919.0 | 3 401.7 | 3 560.5 | 3 487.1 | 3 676.0 | 3 868.6 | 4 518.4 | 25 431.3 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + EUR 94.1 million (+0%) compared to the legal basis.\*

\* Top-ups pursuant to Art. 5 MFF Regulation are excluded from financial programming in this comparison.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 2 812.2 | | |  | | --- | | 25 372.7 | | |  | | --- | | 11% | |
| Payments | |  | | --- | | 1 842.2 | |  | |  | | --- | | 7% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 2 662.9 | 2 662.6 |
| Payments | 1 787.4 | 2 034.2 |

–The first year of the implementation of the Erasmus+ programme has been exceptionally challenging in terms of budget management. The late adoption of the programme regulation has pushed back the start of the activities to the second half of the year, affecting the budget management in 2021 and shifting some payments initially planned in 2021 to 2022.

–As a result, a very close monitoring approach, namely of national agencies, allowed to promptly return the unnecessary payment appropriations detected in the revision of forecasts and ensured the full use of the remaining available payment appropriations in the EU budget by year’s end. Moreover, this exceptional situation had no influence on the funding absorption capacity of the Erasmus+ programme, for which all the commitments appropriations of the 2021 EU-voted budget have been implemented. In 2021, more than 65% of the committed amounts (EUR 2.812 billion) was paid (EUR 1.842 billion).

–The 2022 payment appropriations will be used on the one hand to cover the payments regarding the 2022 commitments, and on the other hand to cover the payments regarding ongoing projects from 2021, including some payments initially planned in 2021 and shifted to 2022 for the reasons exposed above.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 169.4 | | 0 | Score 0\*: 2 663 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress | Target | Results | Assessment |
| Number of participants in learning mobility activities – learners | 0 |  | 5.355 million in 2027 | No results | No data |
| Number of participants in learning mobility activities – staff | 0 |  | 1.396 million in 2027 | No results | No data |
| Number of participants in virtual learning | 0 |  | 224 300 in 2027 | No results | No data |
| Number of organisations and institutions taking part in the programme | 0 |  | 2 200 in 2027 | No results | No data |
| Number of people with fewer opportunities taking part in activities | 0 |  | 2 760 in 2027 | No results | No data |
| The number of small-scale partnerships supported by the programme | 0 |  | 8 700 in 2027 | No results | No data |
| The share of projects addressing climate objectives under cooperation projects | 0% |  | 20% in 2027 | No results | No data |

–2021 started as an atypical year in terms of performance of the programme, but the Commission took mitigating measures to minimise the consequences of the late adoption of the legal basis in May 2021, in cooperation with national authorities, national agencies and the executive agency. This enabled both the continuity of support for the education and training, youth and sport sectors and the launch of the main new actions and formats of the programme, for instance the reinforced use of mobility accreditation processes and support to small-scale partnerships.

–Given the delay in the negotiation of the external instruments and the adoption of the legal basis, only a limited number of heading 6 ‑funded international actions were made available in 2021. The whole range of international actions (including new actions such as capacity building in vocational education and training and sport) has become available as of the 2022 Erasmus+ calls.

In 2021, the COVID-19 pandemic continued to heavily impact the actions financed under the programme for mobility opportunities, yet reorientation measures were implemented to mitigate its effects as much as possible. This was translated in budgetary terms as an overall reduction of the mobility budget set under key action 1, to the benefit of partnerships under key action 2.

–In 2021, the Commission successfully concluded negotiations with the Member States on the new framework for European cooperation in education and training for the next decade. With a view to effectively contributing to the achievement of the European education area by 2025, seven European education area strategic framework working groups have been launched in November 2021 as part of the strategic framework for European cooperation in education and training towards the European education area and beyond (2021-2030). The European universities initiative is paving the way for the transformation of higher education by building the universities of the future. So far 41 European universities were selected under Erasmus+. 2021 also saw the roll-out of the centres of vocational excellence and the launch of the Erasmus+ teacher academies.

–The European student card initiative aims at making it as easy as possible for students across Europe to be mobile. Through its key components – the Erasmus+ mobile app, the European student card and the digitalisation of the student mobility management – the initiative constitutes a real revolution for the simplification of the way universities manage student mobility. By the end of 2021, the Erasmus+ mobile app had been downloaded more than 138 800 times and more than 2 600 000 European student cards were produced.

–In 2021, the Directorate-General for Education, Youth, Sport and Culture started the implementation of the digital education action plan 2021-2027, building on the achievements of the previous plan. One of the main actions was the publication and award of an open call for support services for the digital education hub, which will see its full roll‑out in 2022. Other key actions were the extension of the successful ‘Selfie’ self-reflection tool for teachers (‘Selfie for Teachers’) to help them further develop their digital skills; and the digital education hackathon, which took place on 9-10 November for a third year in more than 50 locations across 32 countries globally, engaging just under 2 500 participants.

–The 2021 call for Erasmus Mundus applications included major changes in order to make its joint masters more attractive, sustainable, inclusive and international, and to simplify its application process and management. These changes are symbolised by the shift from the Erasmus+ key action 1 to key action 2, highlighting the component of cooperation between higher education institutions while still maintaining student mobility. The new set of measures – the Erasmus Mundus design measures – proved the demand for such a bridging activity, with 148 applications received, including 41 from non-EU countries not associated with the programme.

–In 2021 the new Jean Monnet activities for other levels of education and training were launched for the first time: 20 Jean Monnet teacher training activities and two Jean Monnet networks for other levels of education and training could be selected for funding under the Erasmus+ call for 2021.

–The EU youth strategy 2019-2027 was rolled out and adapted to take into account the major impact of COVID-19 on the youth sector. After the forced break from activities in 2020 due to the disruptive impact of the pandemic on mobility, the DiscoverEU call in October 2021 enjoyed overwhelming success with three times more participants (over 330 000) and nearly as many young people as in the previous four rounds combined. Youth participation activities have also been launched in 2021; this new programme action aims to enhance young people’s skills, competences and active citizenship, and complements the existing support to non-formal learning activities, such as youth exchanges bringing together young people from different countries to exchange and learn outside their formal educational system.

–The European week of sport saw national coordinating bodies and partners organise 42 620 events all over Europe and beyond. The #Beactive awards supported projects and individuals dedicated to promoting sport and physical activity across Europe. To highlight inspiring examples of the promotion of equality, diversity and social inclusion in sport, the Directorate-General for Education, Youth, Sport and Culture, with the support of European Education, Audiovisual and Culture Executive Agency, launched a new edition of the #BeInclusive EU sport awards.

  

MULTIANNUAL FINANCIAL FRAMEWORK 2014-2020 – ERASMUS+

Erasmus+ is the EU programme in the fields of education, training, youth and sport, projecting a positive image of the EU well beyond its borders.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 14 958.1 | | |  | | --- | | 14 958.1 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 14 179.3 | |  | |  | | --- | | 95% | |

–The programme had a strong absorption capacity, consuming 100% of its available commitment appropriations and 95% of its payment appropriations.

–To respond to the emergency in the early days of the COVID-19 pandemic, maximum flexibility and support measures within the applicable legal framework were applied to the participants and beneficiary organisations to adapt to the extraordinary circumstances. These included the reshaping of priorities and increased flexibility in terms of international actions.

–Priorities were reshaped with the aim of protecting the beneficiaries and participants and supporting Member States and non-EU countries associated with the programme to communicate and exchange practices needed for an immediate response, but also in view of setting new and innovative policies in education and training, youth and sport.

–International actions with partner countries were more severely affected by the COVID-19 pandemic than those in the EU. Some reasons include the closing of borders, the disruption of air routes, the limited functioning of consulates and the difficulties to obtain visas. Flexibility arrangements for the participating higher education institutions and individuals were put in place, and students were allowed to keep their Erasmus+ grants while completing their course through remote studying arrangements and/or in case they still had expenses linked to their stay in the destination country, such as rent.

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Higher education – learners (in thousands) (1) | 0% | 97% | 2 080 in 2020 | 2 009 thousand higher education learners compared to a target of 2 080 thousand | On track |
| Vocational education and training – learners (in thousands) (1) | 0% | > 100% | 674 in 2020 | 858 thousand learners in vocational education and training compared to a target of 674 thousand | Achieved |
| Number of staff supported (in thousands) (1) | 0% | > 100% | 650 in 2020 | 817 thousand staff supported compared to a target of 650 thousand | Achieved |
| Participants who declare an increase in skills | 0% | > 100% | 88% in 2020 | 95% compared to a target of 88% | Achieved |
| Participants who have received a certificate or diploma (2) | 0% | > 100% | 69% in2020 | 91% of participants compared to a target of 69% | Achieved |
| Youth staff supported (in thousands) | 0% | > 100% | 162 in 2020 | 242 thousand staff supported compared to a target of 162 thousand | Achieved |
| Long-term mobility results – share of participants who declare improved language skills (3) | 0% | 98% | 98% in 2020 | 96% of participants compared to a target of 98% | On track |
| Partner country higher education institutions involved in mobility and cooperation actions (4) | 0 | 70% | 1 300 in 2020 | 910 institutions compared to a target of 1 300 | Moderate progress |

(\*) % of target achieved by the end of 2020

(1) Cumulative results for 2014-2020 compared to cumulative targets for 2014-2020.

(2) Higher education is not included.

(3) Values based on education and training only, as youth is now reported under the European Solidarity Corps.

(4) Latest result from 2018.

–The 2014-2020 Erasmus+ programme built on the experience of previous programmes that had been, for the first time, brought together under the name of Erasmus+, resulting in massive simplification of the transnational support for education and training, youth and sport. Through immersive learning experiences, Erasmus+ has contributed to developing skills and competences, while offering over the last three decades life-changing experiences to close to 12.5 million people to study, train or learn abroad. Along the years, the programme has demonstrated an outstanding track record not only in terms of numbers, constantly meeting or exceeding expectations across fields and actions, but also in terms of social impact.

–Due to the nature of its activities, the 2014-2020 programme was hit hard by the COVID-19 pandemic. As described above, important adaptation measures were undertaken in order to mitigate the effects of the pandemic. The programme’s mobility strand was particularly impacted, with a drop to 350 000 physical mobility periods in 2020.

–In August 2020, the Erasmus+ programme featured two specific calls for proposals, each providing EUR 100 million to respond to the educational challenges resulting from the COVID-19 pandemic. The two calls received a total of 4 430 applications, out of which 1 201 projects were contracted.

EUROPEAN SOLIDARITY CORPS

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 456 275  young people expressed interest in joining by registering with the 2018-2020 European Solidarity Corps. | 41%  of participants involved in the 2018-2020 European Solidarity Corps programme were young people with fewer opportunities. | 55 901  opportunities for young people were created under European Solidarity Corps since October 2018 to date. | 1 173  deployments were financed under the 2014-2020 EU Aid Volunteers programme throughout the overall period. |
| 72%  of the total number of EU Aid Volunteers deployed under the 2014-2020 programme were women. |  |  |  |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 1 012.0 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 11.0 |
| Total budget for 2021-2027 | 1 023.0 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The European Solidarity Corps finances projects to give young people a chance to take part in solidary activities addressing societal challenges through volunteering or to set up their own solidary projects. It provides supports to young people wishing to engage in solidary activities in a variety of areas, from helping the disadvantaged and delivering humanitarian aid to contributing to health and environmental action across the EU and beyond.

Challenge

The EU is built on solidarity, a shared value strongly felt throughout European society. Solidarity is a fundamental pillar of the European integration project, providing a clear compass to guide EU citizens, and especially the young ones, in their aspirations for a better EU. Many young people wish to engage in solidarity activities. Communities have unmet needs that could be addressed by involving younger generations in such activities, and many organisations engaged in solidarity initiatives are looking for motivated youngsters to help with their efforts. These imbalances of supply and demand require attention.

In the absence of measures to bring organisations and young people together to promote solidarity, there is a risk that a major potential for solidarity activities goes untapped. This could result in an unnecessary welfare loss to organisations, young people and society as a whole. Furthermore, there is room for improvement by simplifying processes and there are efficiency gains to be derived from economies of scale and scope.

Whereas tackling socio-economic issues is primarily the responsibility of Member States, intervention at the EU level enhances the European, cross-border dimension of solidarity, complementing existing national and regional public and private policies, programmes and activities without creating competition or substitution effects. This intervention also helps identify shared challenges, stimulate cooperation and transnational mobility, encourage synergies, and promote the sharing of good practices and mutual learning in addition to supporting an EU-wide approach to social innovation, where there is clear added value to European solutions.

Mission

Against this background, the European Solidarity Corps brings together young people and organisations to build a more inclusive society, supporting vulnerable people and responding to societal and humanitarian challenges. It offers an inspiring and empowering experience for young people who want to help, learn and develop, and provides a single entry point for such solidarity activities across the EU and beyond.

Objectives

The programme has the following specific objectives:

22.to provide young people, including those with fewer opportunities, with easily accessible opportunities to engage in solidarity activities in the EU and abroad;

23.to improve and properly validate their competences and facilitate their employability and transition into the labour market.

Actions

The European Solidarity Corps includes the following strands:

–participation of young people in solidarity activities addressing societal challenges:

–volunteering,

–solidarity projects;

–participation of young people in solidarity activities related to humanitarian aid;

–networking activities;

–quality and support measures.

Delivery mode

The European Solidarity Corps is implemented directly both by the European Commission, under the leadership of the European Commission’s Directorate-General for Education and Culture (which bears the overall responsibility for supervision and coordination), and by the Education, Audiovisual and Culture Executive Agency. Some of the programme’s activities are implemented in indirect management with the support of a network of national agencies, which brings the programme closer to its target audience, adapting it to the different national education systems, and offers the possibility to align it with national priorities.

LINK TO THE 2014-2020 multiannual financial framework

The European Solidarity Corps builds on achievements of the predecessor programme in its first years of existence and on the EU Aid Volunteers initiative, further consolidating efforts to have a single entry point for young people wishing to engage in solidarity activities and extending the scope to cover volunteering activities in support of humanitarian aid operations.

Its inclusion and diversity framework will help further improve access to solidarity opportunities, especially for participants with fewer opportunities. The programme will also give more emphasis to the Commission’s priorities and contribute to the EU’s sustainable growth and digitalisation.

Impact assessment

Ex ante evaluation of the European Solidarity Corps programme: 
<https://europa.eu/!ht93mJ>
.

WEBSITE FOR more information

<https://europa.eu/youth/solidarity>

Legal basis

Regulation (EU) 2021/888 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 135.7 | 141.4 | 141.2 | 144.0 | 146.9 | 149.8 | 152.9 | 1 012.0 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 11.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 11.0 |
| Total | 146.7 | 141.4 | 141.2 | 144.0 | 146.9 | 149.8 | 152.9 | 1 023.0 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + EUR 3 million (+0%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 136.0 | | |  | | --- | | 1 023.0 | | |  | | --- | | 13% | |
| Payments | |  | | --- | | 75.4 | |  | |  | | --- | | 7% | |

Voted budget implementation in 2021:

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 135.7 | 135.7 |
| Payments | 75.0 | 90.7 |

–The late adoption of the legal basis in May 2021 (linked to the delayed adoption of the multiannual financial framework) resulted in some delays in implementation, even though the Commission took mitigating measures to minimise consequences as much as possible, in cooperation with national authorities, national agencies and the executive agency.

–The first year of the implementation of the European Solidarity Corps programme was exceptionally challenging in terms of budget management. The late adoption of the programme regulation pushed back the start of the activities (calls, selection, contracts, payments) to the second half of the year, affecting the budget management in 2021 and shifting some payments initially planned in 2021 to 2022.

–As a result, a very close monitoring approach, namely of national agencies, allowed to promptly return the unnecessary payment appropriations detected in the revision of forecasts and ensured the full use of the remaining available payment appropriations in the EU budget at year end. Moreover, this exceptional situation had no influence on the funding absorption capacity of the European Solidarity Corps programme, for which all the commitments appropriations of the 2021 EU voted budget have been implemented. In 2021, about 55% of the budget committed (EUR 136 million) was paid (EUR 75.4 million). This results in a cumulative implementation rate of 13% in terms of commitment appropriations and 7% in terms of payment appropriations for the entire period, which is highly satisfactory considering the challenges faced by the programme (delayed adoption, the COVID‑19 pandemic, etc.).

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 15.7 | | 0 | Score 0\*: 136 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of participants in solidarity activities | 0 |  | 179 776 in 2027 | No results | No data |
| Number of organisations holding a quality label | 0 |  | 21 000 in 2027 | No results | No data |
| Share of participants with fewer opportunities | 0% |  | 30% annually from 2022 | No results | No data |
| Share of activities that address climate objectives | 0% |  | 15% annually from 2026 | No results | No data |

(\*) % of target achieved by the end of 2021.

–The late adoption of the programme’s legal basis delayed the publication of the 2021 call and consequently the selection of the related proposals. As a result, projects were awarded and contracted later than in a usual year. At the time of the publication of this document, it is too early to report on the performance of the 2021-2027 programme.

–Building on past experience, the programme implementation scheme is evolving to become more efficient and address issues noticed in the previous multiannual financial framework. In 2021, a specific priority, ‘Prevention, promotion and support in the field of health’, was added to mobilise volunteers in addressing the impact of the pandemic and the recovery.

–The main novelty is the launch of the European Voluntary Humanitarian Aid Corps, a new, centralised action that will allow the deployment of young volunteers in non-EU countries. Following intense preparatory work in the 2021 annual work programme, the 2022 annual work programme includes the first call for proposals, enabling organisations to request funding for their projects in the area of humanitarian aid.

–During the active programme, the European Voluntary Service and the European Solidarity Corps were merged to provide better coherence in this field and address the deficiencies of the previous programmes. With respect to the predecessor, corrective measures were put in place for the new humanitarian aid strand to prevent the low take-up experienced by the corresponding strand in the 2014-2020 multiannual financial framework, the EU Aid Volunteers initiative. Concerning training in particular, a new and much more effective training cycle was devised. A deeper integration with the features of other European Solidarity Corps strands was ensured. The deadline for the 2022 humanitarian aid applications is in May and further assessment will be available after that date.

  

2014-2020 multiannual financial framework – European Solidarity Corps

The former European Solidarity Corps was a programme aimed at giving young people the chance to take part in a range of solidarity activities that address challenging situations across the EU, such as rebuilding communities following natural disasters and addressing social issues such as social exclusion, poverty and health, and demographic challenges. The European Solidarity Corps supported volunteering, traineeships and job placements in a wide range of sectors engaged in solidarity and provided young people with opportunities to set up their own solidarity projects or volunteer as a group.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 352.0 | | |  | | --- | | 352.2 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 276.0 | |  | |  | | --- | | 78% | |

–The European Solidarity Corps programme started in 2018 for a period of 3 years (2018-2020).

–During the 2018-2020 period, its total budget was allocated at nearly 100% in terms of commitments and at about 78% in terms of payments.

–The late adoption of the regulation in October 2018 delayed the effective start of the programme and consequently the launch of the 2018 and 2019 calls for proposals. This slow take-off affected the implementation of the programme, which was spread over more years than initially planned, and the related payment consumption. Moreover, the COVID‑19 pandemic had an impact on the solidarity activities in the last year of the programming period. Directorate-General for Education and Culture granted extensions of the duration for ongoing projects, which also had the technical effect of reducing payments scheduled for 2021, moving them to 2022 and 2023. In some limited cases, the non-receipt of interim reports in time led to a reduced volume of payment appropriations consumed in 2021.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Participants in volunteering | 0 | 42% | 61 900 | 25 911 out of 61 900 participants | Deserves attention |
| Participants in traineeships and jobs | 0 | 5% | 11 200 | 541 out of 11 200 participants | Deserves attention |
| Participants in solidarity projects | 0 | 46% | 18 900 | 8 629 out of 18 900 participants | Deserves attention |

(\*) Cumulative results for 2014-2020 compared to target.

–The European Solidarity Corps builds on the achievements of the European Voluntary Service and on the first phase of the European Solidarity Corps, launched in December 2016, whereby different EU programmes have been mobilised to offer volunteering, traineeships or job activities to young people across the EU. In 2018, the first European Solidarity Corps regulation created a new, coherent framework for solidarity-related activities.

–The European Solidarity Corps proved successful in providing opportunities to address horizontal priorities such as inclusion (with more than 30% of participants being people with fewer opportunities) or climate change (13% of projects supported under the European Solidarity Corps address climate action, the environment and nature protection). It offered support for projects revolving around a range of solidarity (in the form of individual or team volunteering, traineeships, jobs and solidarity projects) involving young people between 18 and 30 years of age.

–The ‘traineeships and jobs’ strand represented the biggest novelty under the European Solidarity Corps. While specific efforts were dedicated to promoting the corps, ensuring an understanding of the opportunities it offers, reaching out to relevant stakeholders and training potential applicants, this strand was faced with challenges and did not perform as expected. In this regard, the number of projects and participants funded were lower than forecasted.

–The performance targets had been designed with the expectation of a full 3 years of implementation over the 2018-2020 period. The short programme period (end of 2018-2020) had an impact on the possibilities for successful outreach to an entirely new category of stakeholders (potential participating organisations), and the ‘traineeships and jobs’ strand did not manage to carve out a niche in the relatively vast range of national and EU tools aimed at improving the employment prospects of young people.

–Despite the difficulties the programme has faced, including the late adoption of the legal basis in October 2018 and the impact of the COVID‑19 pandemic in 2020, the projects continued to be set up throughout 2019 and 2020, showing that interest from organisations remained stable. The implementation of the 2018-2020 programme continued into 2021 due to the design and duration of the actions, the timing of the publication of the 2020 call, and the effects of the pandemic, which resulted in a delayed start of certain activities. Some activities had to be suspended or cancelled and the duration of projects extended to enable those young people who were prevented from taking part due to the crisis to have another opportunity to do so. This also implies that a number of deployments funded by the 2020 call took place later than initially planned.

–In terms of participation rates, the number of young people in volunteering projects continued to rise. In 2021, the total number of participants from the 2018–2020 calls exceeded 12 000. In 2021 alone, over 3 000 volunteering participants took part in the programme activities despite the COVID‑19 restrictions. The European Solidarity Corps continued to provide relief where possible, for example providing assistance to elderly people during the pandemic.

–Nearly 280 000 youngsters from across the EU registered with the corps. Based on the positive reception of the initiative by young people and other stakeholders in the solidarity sector, the Commission proposed an extension of the corps to the 2021-2027 programming period.

  

2014-2020 multiannual financial framework – EU Aid Volunteers

The EU Aid Volunteers initiative brought together volunteers and organisations from different countries, providing practical support to humanitarian aid projects and contributing to strengthening the local capacity and resilience of disaster-affected communities. The programme incentivised and fostered collaboration and the exchange of knowledge and good practices by building partnerships between organisations in the field of humanitarian aid.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 89.2 | | |  | | --- | | 89.5 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 65.7 | |  | |  | | --- | | 73% | |

–The EU Aid Volunteers initiative was managed by the Directorate-General for European Civil Protection and Humanitarian Operations. During the 2014-2020 period, the total EU budget was allocated at nearly 100% in terms of commitments and at 73% in terms of payments.

–The COVID‑19 pandemic affected the humanitarian volunteering activities in the last year of the programming period. A call for proposals was cancelled and extensions of the duration of ongoing projects were granted to beneficiaries, thereby reducing payments scheduled in 2021. The payments appropriation in 2022 and 2023 will serve to support final payments of projects and actions implemented by the Education, Audiovisual and Culture Executive Agency.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of EU aid volunteers trained |  | 25% | 4 300 | 1 070 out of 4 300 volunteers trained | Deserves attention |
| Number of EU aid volunteers deployed |  | 23% | 4 175 | 955 out of 4 175 volunteers | Deserves attention |
| Number of hosting and sending organisations participating in the EU aid volunteers initiative |  | 69% | 120 | 439 out of 635 organisations | Moderate progress |

(\*) Cumulative results for 2014-2021 compared to cumulative milestones for 2014-2020.

–After the launch of the initiative, the uptake of this new programme was below expectations. For the 2014-2020 period, the EU Aid Volunteers initiative was granted 141 million EUR to finance the training of an initial target of 4 400 volunteers and the deployment of 4 000 volunteers, the provision of technical assistance and capacity building to participating organisations, and the implementation of communication and other support activities. By end of 2020, 1 173 deployments were financed, amounting to 29% of the initial target, and 788 deployments had taken place.

–The EU Aid Volunteers initiative introduced a thorough certification mechanism that requires sending and hosting organisations to prove that they have procedures and policies in place to achieve the high volunteering standards of the programme. The certification mechanism did not exist during the pilot phase. Consequently, challenging targets were set in terms of certified organisations and volunteers trained and deployed, which did not produce satisfactory results.

–In light of these issues, better coherence and synergies with the European Voluntary Service and the European Solidarity Corps gave rise to the creation of a new humanitarian aid strand: the new European Solidarity Corps (2021-2027 multiannual financial framework), which replaced the EU Aid Volunteers initiative.

JUSTICE PROGRAMME

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 4.1 million  exchanges of information occurred in 2021 in the European Criminal Records Information System. | 22 423  justice professionals were trained in 2020 through the justice programme’s financial support to cross-border training activities, to the European Judicial Training Network and through the contract on anti-money laundering training for lawyers. | 4.4 million  visits were made to the e-Justice Portal in 2021. | 27  victim support organisations with national coverage had been established by the end of 2020. |

(\*) Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 299.3 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 299.3 |

(\*) Only Article 15(3) of the financial regulation

Rationale and design of the programme

The justice programme supports a broad range of beneficiaries that play an important role in the development of an EU area of justice. This includes, primarily, members of the judiciary and judicial staff, but also public authorities, academic/research institutes and training bodies, along with civil-society and non-profit organisations.

Challenge

A working EU area of justice and effective national justice systems are necessary for a flourishing internal market and for upholding the common values of the EU. Promoting EU values also means protecting them and ensuring an environment respectful of the rule of law and the independence of the judiciary, with mutual recognition and mutual trust among Member States.

In this context, several challenges persist. Judicial cooperation in civil and criminal matters is insufficient and access to justice across Member States remains difficult. Tools for collecting comparative information about the quality, independence and efficiency of Member States’ justice systems need to be improved. One major obstacle to mutual recognition and judicial cooperation is a lack of trust in other Member States’ judicial systems. There is a need to simplify and digitalise communications, access to procedures and legal information, and connection to and between national systems. The level of knowledge of the EU acquis and of EU instruments needs to be improved across the Member States. However, national training providers tend to invest their scarce resources in training on national law rather than on EU law, and in national training activities rather than cross-border ones. In periods of economic crisis, persistent inequalities and challenges (e.g. migration) test fundamental rights and the EU’s fundamental values, including the rule of law, access to justice, space for civil society and the independence of the judiciary.

These challenges are common to all Member States and have cross-border dimensions. While action at the national level is important, it is through EU-level initiatives that inefficiencies, such as insufficient judicial cooperation and the incomplete implementation of EU law, can best be tackled.

Mission

The justice programme will support the further development of an EU area of justice based on EU’s values, the rule of law, and mutual recognition and trust. It will facilitate access to justice and promote judicial cooperation in civil and criminal matters, and the effectiveness of national justice systems.

Objectives

The specific objectives of the justice programme are to:

24.facilitate and support judicial cooperation in civil and criminal matters, and promote the rule of law, the independence and impartiality of the judiciary – including by supporting the efforts to improve the effectiveness of national justice systems – and the effective enforcement of decisions;

25.support and promote judicial training, with a view to fostering a common legal, judicial and rule-of-law culture, and the consistent and effective implementation of relevant EU legal instruments;

26.facilitate effective and non-discriminatory access to justice and effective redress, including by electronic means (e-justice), by promoting efficient civil and criminal procedures and by promoting and supporting the rights of all victims of crime, along with the procedural rights of suspects and accused persons in criminal proceedings.

Actions

The justice programme mainly supports activities for the judiciary and judicial staff by their representative bodies, public authorities and training bodies. It is also open to academic/research institutes and civil-society organisations that contribute to the development of an EU area of justice. It funds activities to improve mutual trust, cooperation (including through information and communication technology) and knowledge of EU law. It also covers judicial cooperation instruments, the relevant case-law of the Court of Justice of the European Union and comparative law (notably through supporting the European Judicial Training Network). Finally, it assists in the understanding of civil and criminal law and the legal and judicial systems of the Member States, and in recognising potential obstacles to the smooth functioning of an EU area of justice. The programme also supports relevant civil-society and non-profit organisations to ensure that all citizens have adequate access to their services and to counselling and support activities.

Delivery mode

The programme will be implemented through direct management by the Commission, under the lead of Directorate-General for Justice and Consumers.

LINK TO THE 2014-2020 multiannual financial framework

The justice programme builds on the programme of the same name in the 2014-2020 multiannual financial framework, while reinforcing efforts to promote the rule of law.

Impact assessment

The impact assessment of the justice programme was carried out in 2018.

For further information please consult: 
<https://europa.eu/!RX78mN>

WEBSITE FOR more information

<https://europa.eu/!cH64dk>
 or 
<https://europa.eu/!kV86tx>

Legal basis

Regulation (EU) 2021/693 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 46.7 | 43.6 | 42.2 | 41.8 | 41.8 | 41.7 | 41.4 | 299.3 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 0.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0.0 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + EUR 0.3 million (+ 0%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 46.7 | | |  | | --- | | 299.3 | | |  | | --- | | 16% | |
| Payments | |  | | --- | | 21.0 | |  | |  | | --- | | 7% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 46.7 | 46.4 |
| Payments | 21.0 | 19.2 |

–The 2021 commitment appropriations were used for individual commitments for grants from the 2021 calls for proposals. Fifty-eight grants were signed in 2021 from the 2021 calls, for an amount of EUR 26.09 million.

–At the end of 2021, a global commitment was made for the budget to be used in 2022 to sign the remaining grants (12) from the 2021 calls, for an amount of EUR 3.14 million. The 2021 payment appropriations were used to pay the pre-financing of the grants signed in 2021 from the 2021 calls.

–The pre-financing rate for justice action grants is 65%, while it is 80% for operating grants.

–The programme’s implementation in 2021 was satisfactory, and the objective of DG Justice and Consumers for 2022 is to maintain the level of implementation in the years to come. Under the adopted 2022 EU budget, EUR 42.5 million will be provided for the justice programme. The 2022 calls for proposals were published in November 2021, and the submission deadlines have been set for the first semester of 2022 to allow for the yearly budget to be respected, ensuring that the 2022 calls can be processed in time.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 0.21 | | 0 | Score 0\*: 46.7 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Exchanges of information in the European Criminal Records Information System | 0 | 78% | 5.2 million in 2027 | 4.0 million compared to a target of 5.2 million | On track |
| Members of the judiciary and judicial staff who participated in training activities | 0 |  | 15 000 in 2027 | No results | No data |
| Hits on the e-Justice portal / pages addressing the need for information on cross-border civil and criminal cases | 0 | 46% | 2.8 million in 2027 | 1.3 million compared to a target of 2.8 million | On track |

(\*) % of target achieved by the end of 2021.

–2021 was an extremely challenging year for programme implementation, in particular due to the transition between two multiannual financial frameworks, the very late adoption of the justice programme regulation (28 April 2021) and the continuation of the COVID-19 pandemic. Nevertheless, DG Justice and Consumers ensured that the implementation level of the justice programme was satisfactory, providing funding to public entities, NGOs, EU networks and information technology systems, and funding several key activities in support of policy and legislative developments.

–The 2021-2022 work programme of the justice programme provided around EUR 45.3 million for 2021 to support action promoting judicial cooperation and training and implementing projects supporting access to justice for all. Funds committed in the work programme were planned to be deployed via grants (about 73% of the total allocation) and procurement (almost 27% of the total allocation).

–The 2021 calls for proposals were launched as early as possible in 2021. Altogether, seven calls for proposals were organised in the first year of the justice programme, with a total budget of approximately EUR 33 million. Under these calls, 198 proposals were received, with 77 projects having been awarded funding. By January 2022, 57 grant agreements had already been signed.

  

2014-2020 multiannual financial framework– Justice

The justice programme supports a broad range of beneficiaries that play an important role in the development of an EU area of justice. These include, primarily, members of the judiciary and judicial staff, but also public authorities, academic/research institutes and training bodies, along with civil-society and non-profit organisations.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | 317.0 | 318.0 | 100% |
| Payments | 241.9 |  | 76% |

–2020 was the last year of the 2014-2020 multiannual financial framework and of the 2014-2020 justice programme. Ten grants from the 2020 calls under the justice annual work programme for 2020 remained to be signed in 2021, amounting to EUR 3.85 million.

–The completion line (legacy line) of the justice programme is used to provide the final payments from past commitments. In 2021, 50 final payments for grants from the 2014-2020 justice programme were paid amounting to EUR 4.05 million. In 2021, the payment appropriations were also used to cover final payments on pre-2021 commitments that were still outstanding. As regards 2022, the payment appropriations will be used to cover the remaining final payments that are still outstanding.

–The justice programme was affected by the COVID-19 crisis. By 31 December 2021, 138 amendments had been made, 42 of which were for reasons linked to the pandemic, mostly to request an extension of the eligibility period. This significant number of amendments signed following requests to extend the duration of grant agreements due to the COVID-19 crisis will automatically lead to the delayed budgetary execution of the corresponding payment credits.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of items of exchange information in the European criminal records information system | 0.3 million | > 100% | 3.5 million in 2020 | 4.1 million compared to a target of 3.5 million | On track |
| Judiciary/judicial staff training (\*\*) | 0 | > 100% | 16 000 in 2020 | 22 423 compared to a target of 16 000 | On track |
| Hits on the e-Justice Portal | 0.4 m | 94% | 4.6 million in 2020 | 4.4 million out of 4.6 million | On track |

(\*) % of target achieved by the end of 2021.

(\*\*) % of target achieved by the end of 2020.

–The outputs from the justice programme in 2014-2020 are closely linked to the Commission’s activities relating to preparing, supporting and ensuring the correct implementation of an important number of EU legal instruments in civil and criminal law, improving their enforcement and remedy capacities in Member States and ensuring adequate cross-border and EU-level cooperation.

–The proper application of EU law is a key element in allowing EU citizens and business to benefit from that law. This is achieved through both preventive action (workshops, expert meetings, stakeholder dialogues, technical guidelines for national authorities and training of justice professionals financed through the programme) and infringement procedures. The activities funded by the programme resulted in the better implementation and functioning of EU justice instruments (e.g. European Investigation Orders, European Arrest Warrants and surrender procedures, European Protection Orders, European Account Preservation Orders, family law). Analytical activities also helped prepare or accompanied new legislation, and responded to policy changes in the areas covered by the programme.

–The justice programme also supported activities relating to the promotion of the rule of law via all its instruments. Action grants on judicial training offered training to the judiciary on the main principles and values stemming from Court of Justice of the European Union and European Court of Human Rights case-law and international documents, and such grants also funded projects to improve the quality of national judicial systems.

–The actions of the programme in relation to specific objective 1 (‘Judicial cooperation in civil and criminal matters’) are on track to achieve their goals. The programme has helped to improve the implementation and functioning of existing legislative cooperation instruments and has supported the development of several information and communication technology tools to enhance access to information.

–Overall, the justice programme has performed very well in achieving its goals in relation to specific objective 2 (‘Judicial training’).

–In 2020 and in 2021, most training activities took place online, adapting their delivery to the pandemic and to the travel restrictions. Online activities gave a tremendous boost to participation in the training activities supported by the programme, especially regarding attendance by lawyers. The overall number of participants reached a record level of 22 423 in 2020 – around 7% of all the justice professionals who received training on EU law that year.

–On the other hand, under the specific European Judicial Training Network’s annual training programmes, which are also supported via the justice programme, the number of participants dropped to 5 074 in 2020, as not all activities could be moved online. For example, most face-to-face exchanges could not take place. However, the cost-to-serve ratio (i.e. the price per person for one training day offered by the network) decreased to an exceptional level of EUR 239, as online activities are cheaper than cross-border face-to-face activities.

–The actions of the programme in relation to specific objective 3 (‘Access to justice’) are on track to achieve their goals of facilitating access to justice for all – including promoting and supporting the rights of victims of crime – while respecting the rights of the defence.

–The European e-Justice Portal, a one-stop shop for justice matters, contributes significantly to improving and facilitating access to justice for citizens, businesses, national authorities, legal practitioners and the judiciary. Over the years, it has grown to cover more than 150 topics in a wide variety of areas.

–The COVID-19 pandemic has continued to have an impact on the implementation of the programme in relation to funds awarded via action grants or operating grants. However, a full assessment is not yet possible, since reporting for this period will only be done later at project closure or final report time.

–Many of the programme’s beneficiaries converted activities such as training to online events as much as possible. Obviously, much less funding is needed for such events. Moreover, some activities, while not completely cancelled, were reduced in scope (e.g. the parts that were only meaningful in case of physical interaction have been delayed, or in some cases cancelled). Both factors will result in funds being recovered in upcoming years.

CERV

CITIZENS, EQUALITY, RIGHTS AND VALUES PROGRAMME

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 54%  of Europeans in 2021 considered themselves well or very well informed about the rights they enjoy as citizens of the EU, up from 32% in 2014. | 139  grants were awarded to prevent and combat racism, xenophobia, homophobia and other forms of intolerance between 2014 and 2020. | 976 331  people were reached directly by the Europe for citizens programme in 2020. | 28  European citizens’ initiatives were registered between 2018 and 2020. |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 894.1 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 894.1 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The citizens, equality, rights and values programme (CERV) seeks to promote the rights and values of the EU.

Challenge

The EU promotes peace and the well-being of its people. It is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of people belonging to minorities. To live up to its vocation, the EU needs to remember and learn from its history and to involve people in strengthening democratic societies.

However, emerging movements challenge the idea of open, inclusive, cohesive and democratic societies and threaten the enjoyment of rights and civic participation. In particular:

–inequality and discrimination on the grounds of sex, racial or ethnic origin, religion or belief, disability, age and sexual orientation still exist, and violence is still a reality in the daily lives of many women, children and other people at risk;

–the rights stemming from EU citizenship – free movement, consular protection and electoral rights – are still not fully implemented, thus hindering citizens’ political and societal participation;

–economic crises, rising inequality and new or persisting challenges (e.g. migration) have led some to question the EU’s fundamental rights and values, including the rule of law, access to justice, space for civil society and the independence of the judiciary.

These challenges are common to all Member States and have cross-border dimensions. While action at the national level is important, individual Member States do not have sufficient leverage to tackle these challenges on their own. Therefore, concerted efforts at the EU level are required.

Mission

CERV seeks to protect and promote rights and values as enshrined in the EU treaties and in the EU Charter of Fundamental Rights in order to sustain open, rights-based, democratic, equal and inclusive societies based on the rule of law.

Objectives

CERV’s specific objectives, which correspond to strands, are to:

27.contribute to protecting and promoting EU values by providing financial support to civil-society organisations active at the local, regional and transnational level (Union values strand);

28.promote rights, non-discrimination and equality, including gender equality, and advance gender and non-discrimination mainstreaming; protect and promote the rights of the child, the rights of people with disabilities, EU citizenship rights and the right to the protection of personal data (equality, rights and gender equality strand);

29.promote citizens’ engagement and participation in the democratic life of the EU and exchanges between citizens of different Member States, and raise awareness of common European history (citizens' engagement and participation strand);

30.fight violence, including gender-based violence and violence against children and other groups at risk (Daphne: preventing and combating gender-based violence and violence against children strand).

Actions

CERV supports a broad range of organisations that promote and protect EU values and rights, increase awareness of rights, values, principles culture, history, laws and policies, enhance capacity and foster cross-border cooperation and mutual knowledge, understanding and trust.

CERV supports training, capacity building, the exchange of good practices between Member States’ authorities and bodies, and town twinning. It supports the development of knowledge-based EU policies and legislation through surveys, studies and analyses. It also supports capacity development for key EU-level networks (notably the annual work programme of the EU Network of Equality Bodies).

Delivery mode

CERV is implemented under direct management by the Commission, under the lead of the Directorate-General for Justice and Consumers. The implementation of some initiatives is entrusted to the European Education and Culture Executive Agency.

LINK TO THE 2014-2020 multiannual financial framework

CERV is the result of the merger of two 2014-2020 multiannual financial framework funding programmes, namely the rights, equality and citizenship programme and the Europe for citizens programme, which both had a strong societal focus and were clearly related to EU values. This goal is to bring more visibility, simplification and mutual reinforcement, while acknowledging and maintaining the specificities of the single policies.

Impact assessment

The impact assessment of the rights and values programme was carried out in 2018.

For further information please consult: 
<https://europa.eu/!RX78mN>

WEBSITE FOR more information

<https://europa.eu/!cH64dk>
 or 
<https://europa.eu/!kV86tx>

Legal basis

Regulation (EU) 2021/692 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 98.9 | 214.9 | 212.3 | 92.1 | 92.2 | 92.2 | 91.5 | 894.1 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + EUR 7.2 million (+ 1%) compared to the legal basis.\*

\* Top-ups pursuant to Art. 5 MFF Regulation are excluded from financial programming in this comparison.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitment | |  | | --- | | 98.9 | | |  | | --- | | 894.1 | | |  | | --- | | 11% | |
| Payments | |  | | --- | | 19.3 | |  | |  | | --- | | 2% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 98.9 | 97.2 |
| Payments | 19.3 | 34.5 |

–The 2021 commitment appropriations were used for individual commitments for grants from the 2021 calls for proposals. A total of 101 grants were signed in 2021 from the 2021 calls, amounting to EUR 17.6 million.

–A global commitment will be used in 2022 to sign the remaining grants from the 2021 calls: 267 grants are still to be signed in 2022 from the 2021 calls, amounting to EUR 48.9 million.

–The programme’s implementation in 2021 was satisfactory, and the objective is now to maintain a good level of implementation in the years to come. Under the adopted 2022 budget, there will be EUR 214.9 million available to implement activities under the CERV programme in 2022. This amount also includes the additional funds voted by the European Parliament.

–The requested appropriations for the 2023 draft budget include final payments for some grants signed in 2021, pre-financing for grants to be signed in 2023 stemming from the 2022 calls and pre-financing for grants signed in 2023 from 2023 calls.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 0.06 | | 0 | Score 2: 22  Score 1: 69  Score 0: 8 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Civil-society organisations reached by support and capacity-building activities under the Union values strand | 0 | 1% | 6 300 in 2027 | 60 compared to a target of 6 300 | On track |
| Civil-society organisations reached by support and capacity-building activities under the equality, rights and gender equality strand | 0 | 10% | 847 in 2027 | 87 compared to a target of 847 | On track |
| Civil-society organisations reached by support and capacity-building activities under the citizen’s engagement and participation strand | 0 | 5% | 2 372 in 2027 | 129 compared to a target of 2 372 | On track |
| Civil-society organisations reached by support and capacity-building activities under the Daphne strand | 0 | 12% | 1 120 in 2027 | 132 compared to a target of 1 120 | On track |
| Transnational networks and initiatives focusing on European memory and heritage as a result of programme intervention | 0 | 4% | 3 786 in 2027 | 152 compared to a target of 3 786 | Moderate progress |

(\*) % of target achieved by the end of 2021.

–2021 was an extremely challenging year, in particular due to the transition between two multiannual financial frameworks, the very late adoption of the CERV programme regulation (28 April 2021) and the continuation of the COVID-19 pandemic. Nevertheless, DG Justice and Consumers ensured a satisfactory level of implementation for the CERV programme, providing funding to grassroots organisations, EU networks and IT systems, and for several key activities in support of policy and legislative developments.

–In order to avoid delays in implementation, a number of mitigation measures were put in place. Firstly, the work programme and the call documents were developed/finalised in parallel to the finalisation of the multiannual financial framework and CERV regulations. Secondly, as soon as the CERV regulation was adopted, targeted communication activities were launched, starting with the first CERV civil dialogue week organised for 25-28 May 2021 to present the programme and the upcoming calls for proposals to stakeholders and potential beneficiaries. Around 1 000 participants attended the various sessions of the event, which – along with a high-level panel with Commissioner Reynders – also included hands-on technical sessions.

–As the implementation of the new programme has just begun, the results of initiatives under the programme are not yet measurable. It will take approximately 2 years to have meaningful data, as projects run for 20‑24 months on average. Some indicator results are also not available for this reason.

–2021 calls for proposals began to be launched in April 2021. Altogether, 14 calls for proposals were organised in the first year of the CERV programme, with a total budget of approximately EUR 73 million. Under these calls, 1 084 proposals have been received, of which 368 projects have been awarded funding. By January 2022, 101 grant agreements had already been signed.

–The Union values strand is new to the CERV programme (it did not exist under the predecessor rights, equality and citizenship programme and the Europe for citizens programme). In 2021, the strand provided more than EUR 31 million for initiatives promoting and protecting fundamental rights, the rule of law and democracy. The objective is to nurture and sustain a rights-based, equal, open, pluralist, inclusive and democratic society and to empower independent civil-society organisations, which are facing increasing challenges.

–Under the equality, rights and gender equality strand, about EUR 27.9 million has been provided to support initiatives promoting equality, tackling discrimination and improving responses to racism and xenophobia in the form of hate speech and hate crime, both online and offline. Altogether, four calls for proposals have been organised so far.

–The citizens’ engagement and participation strand is a successor to the Europe for citizens programme. More than EUR 13.4 million was allocated to this strand in 2021. Most of the funding was made available through calls for proposals.

–The Daphne: preventing and combating gender-based violence and violence against children strand continues the work that was carried out under the former rights, equality and citizenship programme. More than EUR 19.1 million was allocated to this strand in 2021, mostly for grants. The dedicated call for proposal, with budget of EUR 17.7 million, finances projects on early detection and prevention and support for women, children and LGBTIQ victims or potential victims of violence, with a specific focus on situations emerging from the COVID-19 pandemic.

  

2014-2020 multiannual financial framework – rights, equality and citizenship

The rights, equality and citizenship programme aimed to contribute to the further development of an EU where people’s equality and rights are promoted and protected.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 432.5 | | |  | | --- | | 435.3 | | |  | | --- | | 99% | |
| Payments | |  | | --- | | 350.5 | |  | |  | | --- | | 81% | |

–2020 was the final year of the 2014-2020 multiannual financial framework and of the rights, equality and citizenship programme. In 2021, 29 grants remaining from the 2020 calls for this programme were signed, amounting to EUR 10.2 million.

–The completion line (legacy line) of the programme is used to make the final payments from past commitments. In 2021, 114 final payments for 114 grants from the old rights, equality and citizenship programme were paid, amounting to EUR 5.6 million. In 2021, 169 amendments were made to projects under the programme. The theoretical last payment for the programme will be made in 2024.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress | Target | Results | Assessment |
| Member States that set up structural coordination mechanisms on the national Roma integration strategies | 0 | > 100% (\*) | 26 in 2020 | 27 compared to a target of 26 Member States | On track |
| Perception of consumers of being protected | 64% | > 100% (\*\*) | 75% in 2020 | 81% compared to target of 75% | On track |

(\*) % of target achieved by the end of 2021.

(\*\*) % of target achieved by the end of 2020.

–The programme provided around EUR 430 million between 2014 and 2020 in support of initiatives promoting justice and fundamental rights. These initiatives included training sessions, seminars and mutual-learning events, research and studies, and awareness-raising and media campaigns to the ultimate benefit of EU citizens. The programme succeeded in contributing to the further development of an area where equality and the rights of persons are promoted, protected and effectively implemented.

–In 2021, the ex post evaluation looked into the performance and results of the 2014-2020 rights, equality and citizenship programme. The evaluation showed that, despite the effects of the economic crisis (which led to a general reduction in the amount of national resources and funding available for social and fundamental rights issues), the programme has proved its EU added value and its crucial role in developing a European area of equality and rights.

–A complex interplay of internal and external factors hindered the programme’s performance at various times. The internal factors mainly relate to difficulties in the application process, the internal capacity of project partners and the type and quality of consortia. Common external factors relate to the impact of external shocks such as the COVID-19 pandemic and the challenge of involving public entities and stakeholders in the activities planned.

–The evaluation found that the success factors in projects under the rights, equality and citizenship programme include the quality of partnerships, bringing together organisations with complementary expertise and covering managerial and coordination skills with experience of working with target groups on the ground. Another element of success is the capacity of the projects to respond to the aims of the calls while also pursuing the longer-term strategies of the implementing organisations.

–As regards the baseline situation, as described in the 2011 impact assessment and the 2015 ex post evaluation of the three predecessor programmes (Daphne III, fundamental rights, and citizenship and progress), the evaluation evidence shows that almost all of the difficulties identified in the programme were overcome, except for the geographical imbalance, which still persisted.

2014-2020 multiannual financial framework – Europe for citizens

The programme provided an opportunity to people in the European Union to take part in the debate on Europe and its history and to play a strong role in developing the EU. It was part of the common effort to uphold rights and values by reinforcing a rule-of-law culture in the EU.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 195.3 | | |  | | --- | | 195.5 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 172.6 | |  | |  | | --- | | 88% | |

–In 2021, payment appropriations were used to cover the final payments on outstanding pre-2021 commitments. Numerous projects were funded in the areas of remembrance, civil society and structural support for think-tank organisations at the EU level.

–In 2022, payment appropriations will be used to cover the remaining final payments still outstanding.

–The Europe for citizens programme was affected by the COVID-19 crisis. By 31 December 2021, 402 amendments had been made, most of them relating to extensions of the eligibility period. This significant number of amendments signed, following requests for extending the duration of contracts due to the COVID-19 crisis, will lead to the delayed budgetary execution of the corresponding payment credits.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Participants directly involved in projects | 0 | 75% | 1.30 million in 2020 | 0.98 million compared participants to a target of 1.30 million | Moderate progress |
| People indirectly reached by the programme | 0 | 76% | 1.55 million in 2020 | 1.18 million people reached compared to a target of 1.55 million | On track |

(\*) % of target achieved by the end of 2020.

–The Europe for citizens programme played a positive overall role in encouraging civic participation and democratic engagement, while strengthening the mutual sense of belonging and supporting mutual understanding and identification with Europe, thereby helping to support the European integration process in the longer term.

–As evidenced by the midterm evaluation, Europe for citizens has successfully demonstrated its added value at the EU level, in terms of both its impact on participants and its complementary role with regard to other EU funding programmes and policy initiatives in the fields of education, culture and EU citizenship.

–Aspects that have been identified for improvement mostly relate to increasing the programme's visibility, amending the monitoring indicators and strengthening synergies with other relevant EU funding programmes and initiatives.

–Of the 1 761 applications received, 419 projects were selected, and around 1 250 000 participants are expected to have been involved in the programme’s activities. The number of participants is satisfactory and suggests that the programme has contributed to achieving its general objectives.

–The Europe for citizens programme was affected by the COVID-19 crisis. This resulted in delays in implementing a certain number of projects. However, this should not impact the overall performance of projects. Where possible, projects changed their in-person events to online or hybrid meetings while staying in line with planned themes and content that impacted the schedule less heavily. For some projects, however, this was not an option, and such projects had to be delayed until sanitary conditions would allow for physical meetings in order to deliver quality results.

CREATIVE EUROPE

CREATIVE EUROPE PROGRAMME

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 2  European capitals of culture were selected for 2021: Rijeka (Croatia) and Galway (Ireland). | 3  Oscars were awarded to movies funded by the media subprogramme in 2021. | 22  calls for proposals were published in 2021 to launch the implementation of the new programme. | 36  European networks represented 4 000 organisations across all cultural sectors under the 2014-2020 programme. |
| 68  European Cinema Night screenings were held in 2021. | EUR 460 million  of new debt had been financed by the end of 2021. | Nearly 13 500  grants were awarded to support projects and initiatives in the culture and audiovisual fields under the 2014-2020 programme. | Nearly 650  Partnerships with long-term effects on 3 760 organisations were established across Europe under the 2014-2020 programme. |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming (\*) | 2 026.3 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*\*) | N/A |
| Contributions from other countries and entities | 10.1 |
| Total budget for 2021-2027 | 2 036.5 |

(\*)The financial programming includes the voted amounts of fines pursuant to Article 5 of the financial regulation (i.e. for 2022 and 2023 only).

(\*\*)Only Article 15(3) of the financial regulation.

Rationale and design of the programme

Creative Europe is the European Commission’s programme for providing support to the cultural and audiovisual sectors. It invests in actions that reinforce cultural diversity and respond to the needs and challenges of the cultural and creative sectors. The new programme contributes to the recovery of these sectors, reinforcing their efforts to become more inclusive, more digital and more environmentally sustainable.

Challenge

Cultural and linguistic diversity is a pillar of the European identity and values. European cultural and creative sectors greatly contribute to jobs and growth, and have positive spillover effects on other sectors.

These sectors face increasing challenges from ongoing digital transformation and unprecedented global competition, whereas their potential remains unduly constrained by market fragmentation along national lines. Action at the EU level is needed to overcome such fragmentation and brings great benefits by fostering transnational artistic creation, cross-border circulation of content and the mobility of professionals and creators; by incentivising adjustment and innovation; by facilitating the pooling of knowledge and accelerated learning; and by achieving greater critical mass and economies of scale.

Mission

Creative Europe fosters European cooperation on the promotion of cultural and linguistic diversity. The programme intends to optimise the potential of Europe’s cultural and creative sectors by offering opportunities for operators to develop technologically and artistically innovative transborder initiatives, explore new business models and engage in partnership collaboration modes to exchange, coproduce and distribute European works and make them accessible to a wide and diverse audience.

Objectives

Creative Europe’s specific objectives are:

–to safeguard, develop and promote European cultural and linguistic diversity and heritage; and

–to increase the competitiveness and economic potential of the cultural and creative sectors, in particular the audiovisual sector.

More specifically, it aims to:

31.enhance the economic, social and external dimension of European-level cooperation, to promote diversity and strengthen competitiveness;

32.promote the competitiveness and scalability of the European audiovisual industry;

33.promote policy cooperation.

Actions

The programme operates through three strands: the culture, media and cross-sectoral strands.

Under the culture strand, the programme focuses on cooperative artistic projects, platforms and networks to share and promote works and opportunities. It also focuses on internationalisation through the mobility of people and through transnational activities with cultural and creative organisations.

Under the media strand, the programme focuses on the development and production of innovative audiovisual content, the distribution and promotion of transnational European works and the development of transnational networks and audiences.

Under the cross-sectoral strand, the programme supports various other activities, such as policy cooperation and cross-border collaboration in media.

Delivery mode

The programme is managed by the Commission (jointly by the Directorate-General for Education, Youth, Sport and Culture and the Directorate‑General for Communications Networks, Content and Technology) in direct management, and by the Education, Audiovisual and Culture Executive Agency.

LINK TO THE 2014-2020 multiannual financial framework

The programme aims to build on the Creative Europe programme’s 2014-2020 achievements (e.g. it delivered on the strategic EU priorities such as the Europe 2020 employment targets) and scale-up efforts.

Impact assessment

The impact assessment of the Creative Europe programme was carried out in 2018.

For further information please consult: 
[SWD/2018/290 final - 2018/0207 (COD)](https://europa.eu/!dQ39fJ)
.

WEBSITE FOR more information

<https://europa.eu/!Qr67Hk>

Legal basis

Regulation (EU) 2021/818 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 306.4 | 406.5 | 325.3 | 239.7 | 244.5 | 249.4 | 254.6 | 2 026.3 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 10.1 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 10.1 |
| Total | 316.5 | 406.5 | 325.3 | 239.7 | 244.5 | 249.4 | 254.6 | 2 036.5 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + EUR 5.5 million (+0%) compared to the legal basis.\*

\* Top-ups pursuant to Art. 5 MFF Regulation are excluded from financial programming in this comparison

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 314.7 | | |  | | --- | | 2 036.5 | | |  | | --- | | 15% | |
| Payments | |  | | --- | | 60.5 | |  | |  | | --- | | 3% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 306.3 | 306.4 |
| Payments | 56.4 | 147.5 |

–The first year of the implementation of the Creative Europe programme has been exceptionally challenging in terms of budget management. The late adoption of the programme regulation has pushed back the start of the activities to the second half of the year, affecting the budget management in 2021 and shifting some payments initially planned in 2021 to 2022.

–As a result, a very close budget monitoring approach allowed to promptly return the unnecessary payment appropriations detected in the revision of forecasts and ensured the full use of the remaining available payment appropriations in the EU budget at year end. Moreover, this exceptional situation had no influence on the funding absorption capacity of the programme, for which all the commitments appropriations of the 2021 EU voted budget have been implemented.

–The delayed start also had an impact on appropriations consumed in 2021: only about 19% (EUR 60.5 million) of the budget committed (EUR 314.7 million) in 2021 has been paid, resulting in a cumulative payment implementation rate of just 3%.

–The yearly profile of the 2021-2027 budget for the programme is heavily front-loaded and the 2022 budget is the highest of all 7 years. This additional strengthening of the programme in its early years aims at helping the beneficiary sectors to recover from the COVID‑19 crisis.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 6.89 | | 0 | Score 1: 4  Score 0\*: 302 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Transnational partnerships created with the support of the programme | 130 | 13% | 1 490 in 2027 | 204 compared to a target of 1 490 | On track |
| The number of projects supported by the programme addressed to socially marginalised groups | 0 | 13% | 279 in 2027 | 27 compared to a target of 279 | On track |
| The number of participants in learning activities supported by the programme who consider that they have improved their competences and increased their employability. | 0 |  | 15 760 in 2027 | No results | No data |
| The number of events or activities promoting the programme | 0 |  | 2 800 in 2027 | No results | No data |

(\*) % of target achieved by the end of 2021.

–2021 was a transition year for Creative Europe, with a focus on translating the legal basis into operational terms. The 2021 work programme was challenging, as it included numerous novelties, such as accounting for inclusiveness and sustainability measures and introducing completely new calls for proposals and new support measures of an innovative nature (MediaInvest). Due to the delay in the adoption of the legal basis, there was also a delay in publishing the 2021 calls for proposals. The implementation of the 2021 calls for proposals also presented new challenges and required additional work in light of the first roll-out of the eGrants system. Altogether, the year was a demanding one for the programme, but the significant preparations laid the ground for smoother, more streamlined implementation adapted to the needs of the sectors.

–The 2021 Creative Europe annual work programme, adopted in May 2021, allocates around EUR 300 million to the promotion of the diversity and competitiveness of the cultural and creative sectors across Europe, contributing to recovery and resilience in the wake of the COVID‑19 pandemic.

–More than EUR 80 million (almost a 30% increase compared to 2020) were allocated to the culture subprogramme: the extra budget was used to increase existing support and introduce novelties. For instance, more budget was allocated to cooperation, to co-finance more projects and raise co-financing rates (up to 80% for small-scale partnerships), making funding more accessible for micro/small cultural organisations that were particularly hit by the pandemic. A scheme to support the circulation of literary works was enhanced to encourage more cooperation between publishers. The European Platforms scheme – successfully introduced in the previous programme to promote emerging artists in Europe – has been reinforced and helps artists reconnect with their audience after 2 years of COVID‑19-related restrictions. The support to European professional networks in the culture field, a key tool for knowledge sharing and the dissemination of practices, was also increased to encourage the development of the cultural and creative sectors and accompany their digital and environmental transition.

–Under the media subprogramme, more than EUR 154 million were dedicated to open calls for proposals in the 2021 budget compared to EUR 125 million in the 2020 budget. Several significant innovations were successfully introduced as regards the media strand, including: (1) the streamlining of calls for proposals into thematic clusters; (2) the restructuring of the calls related to the development stage of the audiovisual production chain to better reflect the needs of different market players; and (3) a new call for proposals aimed at developing innovative tools and business models for European content and companies to thrive in the digital economy.

–Under the cross-sectoral subprogramme, the budget for open calls for proposals grew from EUR 3 million in 2020 to EUR 13.9 million in 2021, with a brand new added focus: journalism partnerships. Owing to this, the programme became accessible to a brand new sector of beneficiaries: news media.

  

2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK – CREATIVE EUROPE

The 2014-2020 Creative Europe programme was aimed at safeguarding and promoting cultural diversity and strengthening competitiveness.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 1 487.6 | | |  | | --- | | 1 488.0 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 1 258.1 | |  | |  | | --- | | 85% | |

–The programme has been able to use all the available commitment appropriations and 85% of its available payment appropriations. This implementation rate is in line with the normal payment pattern of the programme, where some cooperation projects are running over a 48-month period. We can therefore expect payments across the finish line at least until 2025.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress | Target | Results | Assessment |
| Admissions to screenings of non-national European films in Europe | 69 m | > 100% (\*) | 71 m in 2020 | 94 million compared to a target of 71 million | On track |
| Admissions to screenings of non-national European films in the 10 largest non-European markets | 61 m | > 100% (\*) | 85 m in 2020 | 87 million compared to a target of 85 million | On track |
| Member States making use of results of the open method of coordination in their national policy development | 10 | > 100% (\*\*) | 20 in 2020 | 22 out of 20 Member States | On track |

(\*) % of target achieved by the end of 2018.

(\*\*) % of target achieved by the end of 2019.

–The programme has a comprehensive outreach strategy, making it well recognisable among cultural, audiovisual and other creative professionals as well as the general public (audiences of European works). The regularly edited Instagram account @creativeEU reached 16 000 followers in 2021.

–The agreements for the cultural and creative sectors’ guarantee facility signed between the European Investment Fund and financial intermediaries before the end of 2020 yielded the best results so far in 2021. In 2021 alone, EUR 460 million was made available to 2 272 small and medium-sized enterprises from the cultural and creative sectors, bringing the overall results since the start of the activity to EUR 1.29 billion and 5 898 small and medium-sized enterprises.

–Year after year, media-supported audiovisual works receive some of the most prestigious recognitions in the world. Some notable examples in 2021 included three Oscar awards and 11 Oscar nominations for films supported under the 2014-2020 programme. Another outstanding achievement was registered in the video game industry: It Takes Two, a video game about solving family problems through cooperation created by Swedish company Hazelight Games and developed with the support of the media grant, won three awards (including the main one: game of the year) at The Game Awards, the most important annual awards ceremony honouring achievements in the video game industry. During the Autumn 2021 festivals season, six new titles supported by the media subprogramme in the development phase received several nominations at the Venice Film Festival.

–Media-supported works reached at least 29 million national viewers and almost 20 million viewers in other countries in 2021, based on reports by several dozens of beneficiaries of the 2020 TV content call for proposals, submitted by the end of 2021.

–Under the culture subprogramme, the first edition of the journalism partnerships, aimed at improving the exchange of news of cross-border importance, funded seven high-quality applications.

–Within the European framework for action on cultural heritage, over 60 actions have been put in place to address the following five pillars: inclusiveness, sustainability, resilience, innovation and global partnerships. They include creative Europe‑funded actions such as a joint EU-UNESCO project engaging with youth and schools on the topic of heritage (300 000 EUR), which came to an end in April 2021, or ‘cultural heritage in action’, a peer-learning programme launched by the Commission in 2020 for local and regional policymakers to exchange knowledge on cultural heritage. It produced a first catalogue of 32 local and regional best practices on the participatory governance of cultural heritage, the adaptive reuse of built heritage and the quality of interventions on cultural heritage.

–Under the cross-sectoral programme, the cultural and creative spaces and cities project (2018-2021, EUR 1.5 million) continued the implementation of its activities in 2021. The wider context of cultural centres was explored for a better use of public spaces for social regeneration through culture. Cities and regional authorities were actively involved in the project and a series of urban labs and co-creation labs were organised to develop new ways of working together involving Creative Commons licences. Due to the COVID‑19 crisis, the remaining urban labs and other workshops took place virtually, including the project’s closing conference, which was held at the beginning of February 2021.

COMMUNICATION

FINANCIAL INTERVENTION OF THE COMMUNICATION POLICY AREA

Programme in a nutshell

Concrete examples of achievements

|  |  |  |  |
| --- | --- | --- | --- |
| 1 430  political reporting products were provided by the representations covering reactions on EU topics in all Member States in 2021. | 1 925  audiovisual products (messages, interviews, statements, clips) were provided to the College in 2021. | 90%  of users were satisfied with the answers received from the Europe Direct Contact Centre in 2021. | 110 million  visits (including repeat visits) were made to the European Commission’s core site (ec.europa.eu) in 2021. |
| 18 000  visitors (including virtual visitors) visited the Visitors’ Centre in 2021. | 8 000  events were organised by the Europe Direct Contact Centre in 2021. |  |  |

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 766.3 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 766.3 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The activities support the Commission’s political, corporate and interinstitutional communication of EU policies and how they help the Commission and the EU to achieve a better image.

Challenge

To be effective, the Commission has to connect with citizens across all of the Member States to make them aware of its headline ambitions and to give them a way to feed their concerns and ideas into EU policymaking. This is particularly challenging in the post-COVID-19 economic and social context. Thus, communication in the coming years will focus on the recovery plan and NextGenerationEU, namely the green, digital and health strands.

To achieve this objective, an ambitious communication effort at the Commission level is necessary, because the communication actions on European topics carried out at the national, regional and local levels are not sufficient.

Mission

DG Communication, as a corporate communication service, brings the EU closer to its citizens by:

–listening: providing intelligence to the College, cabinets and services;

–advising: ensuring coherence in communication and domain leadership;

–engaging: reaching out to and engaging with citizens.

Objectives

DG Communication pursues the following five specific objectives.

34.The College and services use country-specific intelligence, Eurobarometer results, media analysis and feedback from stakeholders/citizens to inform political decision-making.

35.The College receives strategic advice on communicating the political headline ambitions and on media landscapes in the Member States.

36.Corporate communication of the Commission’s headline political ambitions is aligned across its departments.

37.Meaningful and tailored messages, focused on the Commission’s headline political ambitions, are communicated to citizens, media, multipliers and stakeholders.

38.Citizens engage with the EU through face-to-face events and online interactive platforms, such as the Conference on the Future of Europe, thus stimulating the sharing of EU values and interest in and ownership of EU topics.

Actions

DG Communication will pursue the above objectives through a variety of actions, including:

–providing executive and corporate communication services to the President, the College, the Spokesperson’s Service, Commission senior management and the Commission's external communication domain;

–engaging with national, regional and local authorities, media, stakeholders and citizens in general through the Commission’s representations in the Member States;

–crafting communication products and services directly addressed to citizens via traditional and new media channels, along with face-to-face exchanges.

Delivery mode

Within the Commission, the Directorate-General for Communication is the lead DG for implementing the activities described above (implementation through direct management and grants).

LINK TO THE 2014-2020 multiannual financial framework

Communication activities are still financed by the Commission under its prerogatives. Throughout the 2014-2020 multiannual financial framework, DG Communication was under Title 16 of the Commission budget. Under the 2021-2027 MFF, communication activities are included within heading 2 ‘Cohesion and values’ under policy cluster 7 ‘Investing in people and values’.

Impact assessment

WEBSITE FOR more information

<https://europa.eu/!mT93rB>

Legal basis

Tasks are resulting from the European Commission’s prerogatives at institutional level, as provided for in Article 58(2) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union. Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 106.7 | 107.6 | 108.5 | 109.5 | 110.4 | 111.4 | 112.2 | 766.3 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities |  |  |  |  |  |  |  |  |

(\*) Only Article 15(3) of the financial regulation.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  |  | | --- | --- | | |  | | --- | | 106.7 | | | |  | | --- | | 766.3 | | |  | | --- | | 14% | |
| Payments | |  | | --- | | 92.1 | |  | |  | | --- | | 12% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 106.7 | 106.7 |
| Payments | 92.1 | 92.1 |

–Commitment and payment appropriations were used in 2021, with a 100% implementation rate, to finance activities along three activity strands: corporate services, representations and services to citizens.

–In 2021, significant budget redeployments (about 10% of DG Communication’s yearly operational budget) were carried out in favour of the Conference on the Future of Europe, for which specific funding had not been provided during the 2021 budget procedure.

–In addition, the external communication actions that were funded focused on highlighting the EU’s response to the crisis by disseminating inspirational ‘recovery stories’ with real examples of EU support across Europe, while in parallel preparing the launch of the most ambitious corporate campaign for NextGenerationEU.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 2.44 | | 0 | Score 0\*: 106.7 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: Interventions the principal objective of which is to improve gender equality.

­1: Interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention.

­0: Non-targeted interventions.

­0\*: Score to be assigned to interventions with likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Political reporting products provided by the representations covering reactions on EU topics in all Member States | 0 | 14% | 1 200 annually from 2022 | Milestone achieved in 2021. 1 430 compared to a milestone of 1 060 | On track |
| Audiovisual products provided to the College (messages, interviews, statements, clips) | 0 | 14% | 1 000 annually from 2022 | Milestone achieved in 2021. 1 925 compared to a milestone of 850 | On track |
| Target audience able to recall the messages of corporate campaigns | 0% | 14% | 25% annually from 2024 | Milestone achieved in 2021. 47% compared to a milestone of 22% | On track |
| Users satisfied with the answers received from the Europe Direct Contact Centre | 0% | 14% | 86% annually from 2024 | Milestone achieved in 2021. 90% compared to a milestone of 83% | On track |
| Engagement rate on social media (average view duration (seconds) on YouTube) | 0 | 0% | 60 seconds annually | Milestone not achieved in 2021. 36 compared to a milestone of 60 | Moderate progress |

(\*) % of years for which the milestones or target was achieved during the 2021-2027 period.

–The actions in 2021 ensured that the College received high-quality communication advice and intelligence, and provided information and communication services addressing citizens directly, with messages aligned with the Commission priorities.

–In 2021, the Commission’s priorities focused on navigating out of the global pandemic and the economic crisis and towards a greener, more digital and more socially just Europe. In this challenging context, the role of the corporate communication campaigns was essential in raising awareness on the EU’s recovery plan as a once-in-a-lifetime opportunity for the EU to emerge from the pandemic stronger, greener and more digital.

–The external communication actions focused on highlighting the EU’s response to the crisis by disseminating inspirational ‘recovery stories’ with real examples of EU support across Europe, while in parallel preparing the launch of its most ambitious corporate campaign, NextGenerationEU. The objective of the campaign is to raise awareness of the EU’s recovery plan.

–In 2021, significant progress was made in the fight against disinformation, which was especially relevant in the context of the infodemic relating to the COVID-19 pandemic.

–The large number of political reporting products provided in 2021 by the representations covering reactions in all Member States on EU topics reflects intensified efforts at the level of representations to improve on the quality and timeliness of information for decision-making at the College level. The representations informed the EU’s actions by reporting on the situation on the ground across the Member States. This helped increase outreach at the national, regional and local levels.

–The number of audiovisual products provided to the College (messages, interviews, statements, clips) in 2021 exceeded the target of 850. This was mainly driven by the COVID-19 pandemic: the demand for audiovisual services and video productions replacing face-to-face meetings and events increased. The successful coordination and integration of audiovisual products with social media continued, and resulted in more than 110 corporate videos and around 180 social media videos.

–Users were quite satisfied with the answers received from the Europe Direct Contact Centre in 2021. The satisfaction rate recorded in 2021 was 90% against a target of 83%.

–In 2021, the average view duration (seconds) on YouTube was 36 seconds against a target of 64.2 seconds. This lower-than-expected average view duration is due to fewer resources being invested in managing the Commission’s YouTube account.

–The Visitors’ Centre was completely refurbished in 2021, with a view to its planned reopening in 2022. The New European Bauhaus-inspired premises, design, concept and visitor journey further improve the centre’s capacity to receive physical, virtual and hybrid visitors in future.

CAP

COMMON AGRICULTURAL POLICY

Programme in a nutshell

Concrete examples of achievements

|  |  |  |  |
| --- | --- | --- | --- |
| 5.6 million  farmers benefited from direct payments in financial year 2021. | 400 000  farmers benefited from the young farmers scheme in 2020. | 18.9 million  beehives were supported in 2020. | 17.1%  of agricultural land was covered by management contracts contributing to biodiversity in 2020. |
| 3.8 million  hectares were under land-management contracts targeting the reduction of greenhouse gases or ammonia emissions in 2020. | 2 million  hectares of agricultural and forest land were covered by management contracts contributing to carbon sequestration or conservation in 2020. | 869 000  hectares of irrigated land had switched to more efficient irrigation systems in 2020. | 1.8 million  beneficiaries received vocational training in agriculture in 2020, the 2025 target being 3.9 million. |

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 378 262.9 |
| NextGenerationEU | 8 070.5 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0.0 |
| Total budget for 2021-2027 | 386 333.4 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The common agricultural policy (CAP) consists of two funds: the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD). In order to improve the sustainable development of farming, food and rural areas, the policy (1) fosters a smart, competitive, resilient and diversified agricultural sector that ensures long-term food security; (2) supports and strengthens environmental protection; and (3) strengthens the socioeconomic fabric of rural areas.

Challenge

The EAGF preserves a level playing field in the single market for agricultural products and enables a stronger common position in trade negotiations. Moreover, it responds more effectively and efficiently to cross-border challenges such as underpinning food security, mitigating and adapting to climate change, caring for natural resources such as soil and water, restoring biodiversity and strengthening economic and social cohesion. The EAGF supports balanced territorial development and encourages smart, sustainable and inclusive growth: analysis shows that less or no EAGF support would result in a higher concentration of agricultural production, meaning that small farmers and farmers in less profitable areas would go out of business and larger farms would become even bigger and more intensive. This would have a negative effect on jobs in rural areas (especially where job creation is difficult) and on the environment and the climate due to intensification.

The EAFRD finances rural development programmes that make a vital contribution to the economic, social and environmental performance of the EU in rural areas. Rural development programmes take into account national and regional specificities and ensure a consistent, coherent and results-oriented approach to a number of cross-border issues. The performance and results of the EAFRD are enhanced by the European Network for Rural Development, which allows for the exchange of experiences and best practices between national and regional authorities.

Mission

The CAP aims to support a resilient, sustainable and competitive agricultural sector, to ensure production of high-quality, safe and affordable food for EU citizens and a strong socioeconomic fabric in rural areas.

Objectives

The CAP has three general objectives:

1.viable food production, with a focus on agricultural income, agricultural productivity and price stability;

2.sustainable management of natural resources and climate action, with a focus on greenhouse gas emissions, biodiversity, soil and water;

3.balanced territorial development, with a focus on rural employment, growth and poverty in rural areas.

The EAFRD part of the CAP has six key objectives:

39.fostering knowledge transfer and innovation in agriculture, forestry and rural areas;

40.enhancing farm viability and competitiveness of all types of agriculture in all regions and promoting innovative farm technologies and the sustainable management of forests;

41.promoting food chain organisation, including processing and marketing of agricultural products, animal welfare and risk management in agriculture;

42.restoring, preserving and enhancing ecosystems related to agriculture and forestry;

43.promoting resource efficiency and supporting the shift towards a low-carbon and climate-resilient economy in the agriculture, food and forestry sectors;

44.promoting social inclusion, poverty reduction and economic development in rural areas.

The EAGF part of the CAP the following objectives:

45.to improve the competitiveness of the agricultural sector and enhance its value share in the food chain;

46.to foster market stability, to better reflect consumer expectations and to sustain the stability of farmers’ income by providing direct income support;

47.to promote more market-oriented agriculture by ensuring a significant level of decoupled income support;

48.to contribute to the enhancement of the environmental performance of the common agricultural policy;

49.to promote local agricultural production and to ensure a fair level of prices for commodities for direct consumption and for processing by local industries in the outermost regions of the EU and on the Aegean islands;

50.to provide the Commission with reasonable assurances that Member States have put in place management and control systems in conformity with EU rules;

51.to inform and increase awareness of the common agricultural policy by maintaining an effective and regular dialogue with stakeholders, civil society and specific target audiences;

52.to facilitate decision-making on strategic choices for the common agricultural policy and to support other activities of DG Agriculture and Rural Development by means of economic and policy analyses and studies.

Actions

The EAFRD pursues its objectives in the following ways.

·Financing the EU’s contribution to rural development programmes. These programmes contribute to smart, sustainable and inclusive growth in the EU by supporting farms, the food and forestry sectors and other entities operating in rural areas – such as non-agricultural businesses, non-governmental organisations and local authorities – by fostering knowledge transfer and innovation, investing in green technologies, skills and training, promoting entrepreneurship and networking, supporting the preservation of natural resources, promoting environmentally sustainable land management, enhancing ecosystems and maintaining landscapes attractive for tourism.

·Supporting the shift towards a low carbon and a climate-resilient economy. EAFRD support helps farmers and rural businesses to reduce greenhouse gas and ammonia emissions, adapt to climate change consequences and manage renewable resources and waste, thus making a direct contribution to the energy union.

·Supporting other programmes. Examples include the digital single market (by supporting broadband infrastructure and various information and communications technology solutions in rural areas) and the European innovation partnership for agriculture (by supporting its interactive innovation projects). The EAFRD also contributes to the Europe 2020 objectives (e.g. by encouraging innovation and entrepreneurship, promoting inclusiveness and increasing the impact of EU-funded research on the economy).

The EAGF pursues its objectives by:

·Direct payments, which provide a basic protection of farm income against the particular shocks to which agriculture is exposed, such as price and weather. Direct payments are linked to standards concerning the environment, food safety, animal and plant health and animal welfare throughout the EU. Furthermore, through the ‘greening’ layer, direct payments reward farmers for additional environmental care related to crop diversity, permanent grassland and ecologically beneficial zones or landscape features. 

·The common market organisation, which provides a framework of rules on issues such as market support measures, product standards, labelling and producer cooperation.

Delivery mode

The implementation of the programme is in shared management. DG Agriculture and Rural Development is the lead for the Commission.

LINK TO THE 2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK

The application of the current CAP regulations will continue through the end of 2022 within the budgetary framework of the 2021-2027 multiannual financial framework. The new CAP, which will be implemented from 2023 for the 2023-2027 period, has been designed to address the challenges identified for the 2021‑2027 period. The central element of the CAP will be the new performance-based delivery model, focusing on results rather than compliance and 28 national CAP strategic plans (one for each Member State except Belgium, where there is one for Wallonia and one for Flanders).

Impact assessment

The impact assessment of the EAGF and EAFRD was carried out in April 2018. Please see 
<https://europa.eu/!Rd79mr>

WEBSITE FOR more information

<https://europa.eu/!hNKPwT>

Legal basis

Regulation (EU) 1306/2013 of the European Parliament and of the Council.

Regulation (EU) 1307/2013 of the European Parliament and of the Council.

Regulation (EU) 1308/2013 of the European Parliament and of the Council.

Regulation (EU) 1305/2013 of the European Parliament and of the Council.

Regulation (EU) 2020/2220 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 55 712.9 | 53 096.6 | 53 626.9 | 53 757.9 | 53 890.9 | 54 021.9 | 54 155.9 | 378 262.9 |
| NextGenerationEU | 2 387.7 | 5 682.8 |  |  |  |  |  | 8 070.5 |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 0.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0.0 |
| Total | 58 100.7 | 58 779.3 | 53 626.9 | 53 757.9 | 53 890.9 | 54 021.9 | 54 155.9 | 386 333.4 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: - 268.3 million (- 0%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 57 388.9 | | |  | | --- | | 386 333.4 | | |  | | --- | | 14% | |
| Payments | |  | | --- | | 54 006.2 | |  | |  | | --- | | 13% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 55 023.2 | 55 752.5 |
| Payments | 53 940.7 | 55 408.3 |

As regards the EAGF:

–Sector-specific support programmes, implementing the market expenditure, are operating at various points in their respective life cycle. For example, the wine national support programme follows a 5‑year cycle, whereas the programmes for support to producer organisations in the fruit and vegetable sector are annual. As to the direct payments, Commission services have assisted Member States in preparing and implementing the direct payments; implementation of payments has thus gradually reached a high level.

–Between 2013 and 2019, the average EU factor income per worker increased by 15% in real terms, mainly due to major gains in labour productivity. The CAP as a whole has helped to support and stabilise farm income. Overall, since 2014, EU price volatility has been lower than price volatility on the international markets for all products. Direct payments and rural development support represent close to 50% of farmers’ income in mountain areas and CAP funding helps to make farms viable in the most remote rural areas. Nevertheless, the high level of total income support in mountain areas does not fully compensate for the income gap with non-mountain areas.

–The CAP continued to make a significant contribution to food security by achieving productivity gains and resilience in trade markets. It also provided support to improve supply chain organisation. The EU accounted for 18% of global agri-food exports in 2019, despite some adverse external factors (including the Russian import ban on EU products) that weakened the competitive position of the EU’s agricultural farm sector to some extent.

–The CAP provided an extensive level of ‘baseline protection’ for the environment via mandatory cross‑compliance and greening obligations, which together comprised more than 80% of the EU’s agricultural land. It also provided for more targeted but voluntary commitments under rural development, such as agri-environment climate measures and organic farming. Support was decoupled from production and linked to compliance with standard environmental and climate practices and was therefore not an incentive to increase production intensity. Since CAP payments are conditional to respecting a basic set of environment-related rules, the CAP helps enforce the implementation of existing legislation relevant for the environment.

–The CAP has facilitated generational renewal by supporting the economic sustainability of jobs. While it mainly supports farming, evidence shows the significant spill-over effects on the wider rural economy, because it boosts local spending and provides employment. CAP support can be key to improve infrastructure, services and connectivity, especially in remote areas, and can also help slow the rate of depopulation and land abandonment in the EU. However, the CAP support is insufficient on its own to remove the main entry barriers to farming, namely limited access to land and capital and the (perceived) disadvantages of the working and living conditions of rural areas.

As regards the EAFRD:

–The implementation of the 2014-2022 rural development programmes continues at a satisfactory pace. A number of initiatives were launched to improve efficiency and effectiveness of EAFRD expenditure and to ensure a smooth transition with the CAP strategic plans. Examples of these are the amendments to the basic act as a response to the COVID-19 crisis, reductions in the administrative burden, the sharing of best practices and experience between stakeholders and ex ante assessments of the rural development measures by Member States. However, measures in the form of investments take a longer time to be fully implemented compared to annual (or ‘current’) measures, which explains to a large extent the persistent gap vis-à-vis the targets.

–The uptake and achievement of results is not yet fully in place for the cross-cutting objective of transferring knowledge and fostering innovation in rural areas. This can partly be explained by the type of actions contributing towards the objective – as they need a lot of preparatory work with reportable results emerging only at a later stage – and by long administrative procedures in some Member States.

–For the objective of improving farm viability and competitiveness, the level of achievement of the targets continues to be satisfactory; investment support increases the economic performance and market participation of the supported farms and may also bring about environmental benefits.

–As to the objective of promoting food chain organisation, Member States report several achievements, such as better integration in the food supply chain and the introduction of quality schemes, increased quality of food production, promotion of local markets and short supply, increased participation of farms in risk prevention and management schemes and greater prevention of risks from flooding.

–The largest share of the fund is allocated to the objective of restoring, preserving and enhancing ecosystems. Here, reported achievements include an increased area of agricultural and forest land covered with management contracts to enhance biodiversity and landscape; restoring, preserving, and enhancing biodiversity; improvement of water quality and management; prevention of soil erosion and improvement of soil management; and preservation of genetic species in grasslands and livestock.

–For the objective of promoting resource efficiency and supporting the shift towards a low-carbon and climate-resilient economy, uptake was generally lower than planned. This was due to the nature of the interventions as investment projects can take some time to materialise. Implementation delays have been the subject to continuous dialogue with the Member States.

–In the objective of promoting social inclusion, poverty reduction and economic development in rural areas, several achievements related to small enterprises and jobs have been reported, such as diversification, creation and development of small enterprises and job creation and maintenance in rural areas. There has also been progress in development and access to services and local infrastructure in rural areas, participation in local development strategies, employment opportunities created via local development strategies, broadband expansion and better use of information and communications technology in rural areas. The indicator value for services/infrastructures is relatively low, partly due to the fact that many of these projects are large and may require several years to be implemented.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 25 996.37 | | 9 942.9 | Score 0\*: 55 023.2 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| To increase agricultural factor income | 2013: 111.8 | > 100% (\*\*) | Overall increase in the long term | Index above the baseline each year from 2014 to 2021. 2021 index value: 132 | On track |
| To increase agricultural productivity | 2005: 100 | > 100% (\*\*\*) | Overall increase in the long term | Index above the baseline each year from 2014 to 2020. 2020 index value: 107.5 | On track |
| To increase the rural employment rate | 2013: 63.5% | > 100% | Overall increase in the long term | Index above the baseline each year from 2014 to 2020. 2020 index value: 0.68 | On track |
| Support for investment in restructuring | 0% | 66% | 2.7% in 2025 | Support reached 1.8% of agricultural holdings out of 2.7% | On track |
| Business development plan for young farmers | 0% | 89% | 1.6% in 2025 | Support reached 1.4% of agricultural holdings out of 1.6% | On track |
| Contributing to biodiversity and landscapes – agricultural land | 0% | 89% | 19.2% in 2025 | 17.0% of agricultural land reached compared to target of 19.2% | On track |
| Improving water management – agricultural land | 0% | 84% | 16.8% in 2025 | 14.1% of agricultural land reached out of 16.8% | On track |
| Preventing soil erosion and improving soil management – agricultural land | 0% | 85% | 15.8% in 2025 | 13.5% of agricultural land reached compared to target of 15.8% | On track |
| New or improved services/infrastructure |  | > 100% | 18.8% in 2025 | 21.2% of rural population reached out of 18.8% | On track |

(\*) % of target achieved by the end of 2020.

(\*\*) Latest results in 2021.

(\*\*\*) Latest results in 2019.

EMFAF

EUROPEAN MARITIME FISHERIES AND AQUACULTURE FUND

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 13 123  fishing vessels (about 25% of the EU fleet) benefited from the EMFF between 2014 and 2020. 41% of the vessels supported belonged to the small-scale coastal fishing fleet. | 153 000  fishermen and 460 000 members of producer organisations benefited from the EMFF between 2014 and 2020. | 68 413  operations were selected to receive funding under the EMFF between 2014 and 2020, almost 49 000 of which were addressed to SMEs or private persons. | EUR 227 million  was contributed by the EMFF to support innovation and new technologies through 1 092 operations between 2014 and 2020. |
| 9 654  projects addressing the environment and resource efficiency were selected between 2014 and 2020, with an EMFF contribution of EUR 1 513 million. | 6 067  operations were supported relating to better management of Natura 2000 and other marine protected areas between 2014 and 2020, with an EMFF contribution of EUR 274 million. | 111 000  employees of processing companies benefited from the EMFF between 2014 and 2020. |  |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 6 072.6 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 6 072.6 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The European Maritime Fisheries and Aquaculture Fund (EMFAF) supports the common fisheries policy, the EU maritime policy and the EU agenda for international ocean governance.

Challenge

As a global ocean actor and a major producer of seafood, the EU has a responsibility to protect and sustainably use the oceans and their resources. This is also in its socioeconomic interest regarding the availability of food supplies, the competitiveness of the maritime economy and the livelihood of coastal communities.

In this respect, the EMFAF for 2021-2027 supports the common fisheries policy, the EU maritime policy and the EU’s international commitments for international ocean governance. Such support is an enabler of sustainable fisheries and the conservation of marine biological resources, of food security through the supply of seafood products, of the growth of a sustainable blue economy and of healthy, safe, secure, clean and sustainably managed seas and oceans. It also contributes to the achievement of the United Nations’ sustainable development goal 14 (‘conserve and sustainably use the oceans, seas and marine resources’), to which the EU is committed.

Mission

The EMFAF provides EU financial support for the objectives of the common fisheries policy, which seeks to manage the EU fishing fleet and fish stocks efficiently and sustainably. The EMFAF also supports the implementation of the EU’s maritime policy and the strengthening of international ocean governance. A sustainable blue economy boosts investment, jobs and growth, fosters research and innovation and contributes to energy security through ocean energy. Moreover, safe and secure seas and oceans are essential for efficient border control and for the global fight against maritime crime, thereby addressing citizens’ security concerns.

The EMFAF also contributes to the implementation of the European Green Deal, and in particular the farm-to-fork strategy and the EU biodiversity strategy for 2030, along with the EU strategy for adaptation to climate change.

Objectives

The EMFAF supports the common fisheries policy, the EU maritime policy and the EU agenda for international ocean governance under the following four priorities:

53.fostering sustainable fisheries and the restoration and conservation of aquatic biological resources;

54.fostering sustainable aquaculture activities and processing and marketing fisheries and aquaculture products, thus contributing to food security in the EU;

55.enabling a sustainable blue economy in coastal, island and inland areas and fostering the development of fishing and aquaculture communities;

56.strengthening international ocean governance and enabling seas and oceans to be safe, secure, clean and sustainably managed.

The EMFAF also contributes to the implementation to the European Green Deal, and in particular to the farm-to-fork strategy and the EU biodiversity strategy for 2030, including their external dimension, but also for the preparation of the EU strategy for adaptation to climate change.

Actions

The EMFAF regulation defines four distinct priorities for the programme.

Under priority 1, the EMFAF should ensure that fishing activities are environmentally sustainable in the long term and managed in a way that is consistent with the objectives of achieving economic, social and employment benefits and of contributing to the availability of food supplies. In particular, it aims to achieve and maintain sustainable fishing based on the maximum sustainable yield and to minimise the negative impacts of fishing activities on the marine ecosystem. This support includes innovation and investment in low-impact, climate-resilient and low-carbon fishing practices and techniques.

Under priority 2, the fund may support the promotion of sustainable aquaculture and the marketing, quality and added value of fishery and aquaculture products, along with the processing of these products.

Under priority 3, it may support action that contributes to enabling sustainable blue economies in coastal, island and inland areas and to fostering the sustainable development of fishing and aquaculture communities.

Under priority 4, the EMFAF may support action to strengthen international ocean governance and enable safe, secure, clean and sustainably managed seas and oceans through the promotion of marine knowledge, maritime surveillance and coastguard cooperation.

Delivery mode

As during the 2014-2020 programming period, the EMFAF will mainly be managed under shared management (87% of the budget allocation), where the common provisions regulation lays down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund, the EMFAF, the Asylum and Migration Fund, the Internal Security Fund and the Border Management and Visa Instrument. Thus, the EMFAF shares common rules with the other European structural and investment funds covered by the common provisions regulation, providing for common objectives, principles and rules related to planning, programming, monitoring and reporting. The EMFAF further specifies details within this framework, including the common result indicators, types of interventions and climate coefficients that must be used when planning and reporting.

The remaining part of the financial envelope (13%) is implemented through direct or indirect management modes. The direct management part of the fund will either be managed directly by the European Commission or delegated to an executive agency. This part of the fund will finance common-fisheries-policy-related projects, market intelligence, scientific advice, a sustainable blue economy and international ocean governance, along with contributions to international organisations or to the functioning of the advisory councils. The budget under direct management shares the same set of common result indicators and principles as shared management to allow full and consistent reporting on the achievements of the EMFAF as a whole.

LINK TO THE 2014-2020 multiannual financial framework

The EMFAF builds on the experience of the European Maritime and Fisheries Fund (EMFF) for 2014-2020, with a simplified structure, giving Member States more control and with a novel focus on strengthening international ocean governance.

Impact assessment

The impact assessment for the Commission’s proposal for the EMFF 2021-2027 was carried out in 2018.

For further information please consult: 
<https://europa.eu/!Un66pR>

WEBSITE FOR more information

<https://europa.eu/!bC48kW>

Legal basis

Regulation (EU) 2021/1139 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 109.1 | 1 133.9 | 1 100.7 | 1 067.7 | 980.0 | 834.4 | 846.7 | 6 072.6 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 0.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0.0 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: – EUR 35.4 million (– 1%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | 106.5 | |  |  | | --- | --- | | |  | | --- | | 6 072.6 | | | 2% |
| Payments | |  | | --- | | 11.1 | |  | |  | | --- | | 0% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 106.5 | 760.7 |
| Payments | 11.1 | 53.0 |

–With regard to shared management, the EMFAF regulation and the common provisions regulation were both only adopted in mid 2021. Although drafts of 2021-2027 programmes had been submitted beforehand, experience from previous programming periods shows that the process leading to their final adoption may last up to 2 years. The EMFAF programming process was also slowed by the delayed work on partnership agreements, the emphasis given to the preparation of Recovery and Resilience Facility plans and the focus of the most impacted Member States on Brexit Adjustment Reserve support.

–The successful implementation of fisheries, aquaculture and maritime policies and the development of coastal communities continue, as Member States also remain focused on the disbursement of EMFF funds.

–When it comes to EMFAF direct/indirect management, 98% of the budgetary appropriations have been implemented, thus achieving all of the objectives of the underlying work programmes. This has resulted in various initiatives launched in the fields of maritime policy, scientific advice, international ocean governance, voluntary contributions to regional fisheries organisations and contributions to the initiatives managed by the United Nations agencies. The multiannual financial programming for the period until 2027 provides for a horizontal financing trend, with no big fluctuations.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 48.37 | | 16.79 | Score 0\*: 106.5 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators (\*)

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress | Target | Results | Assessment |
| Businesses created |  |  |  | No results | No data |
| Jobs created |  |  |  | No results | No data |
| Jobs maintained |  |  |  | No results | No data |
| Persons benefiting |  |  |  | No results | No data |
| Number of SMEs supported |  |  |  | No results | No data |
| Number of small-scale coastal fisheries vessels supported |  |  |  | No results | No data |

(\*) The information will be provided once the Member States programmes 2021-2027 are adopted.

–With regard to shared management, performance assessments will be provided once the implementation of the 2021-2027 programme has started. By the end of 2021, no single EMFAF Member State programme had been adopted. EMFF payments continue to be executed, however, which ensures the continuity of the policy achievements.

–With regard to direct and indirect management, as action implemented under direct and indirect management provides for smooth continuity from the EMFF to and throughout the EMFAF, the following assessment covers both EMFF and EMFAF activities without distinction.

–For priority 1 (fostering sustainable fisheries and the restoration and conservation of aquatic biological resources), voluntary contributions to regional fisheries management organisations assisted in the development of scientific knowledge and science-based management decisions, promoted compliance and the fight against illegal, unreported and unregulated fishing and further improved the impact of the performance in operations of partner international organisations. The provision of regular scientific advice has been ensured by renewing the various administrative arrangements in place with the International Council for the Exploration of the Sea, the Scientific, Technical and Economic Committee for Fisheries and the Joint Research Centre.

–For priority 2 (fostering sustainable aquaculture activities and processing and marketing of fishery and aquaculture products, thus contributing to food security in the EU), in the area of market intelligence, the Commission financed several initiatives such as a market observatory, a Eurobarometer study on EU consumer habits regarding fishery and aquaculture products and other studies. These initiatives could provide the Commission with analyses and advice focusing on economic and social aspects of the maritime economy.

–For priority 3 (enabling a sustainable blue economy in coastal, island and inland areas and fostering the development of fishing and aquaculture communities), the fund helped deliver maritime spatial planning in the EU. The Commission continued to support the hosting of the sustainable blue economy finance principles, launched in 2018 by the United Nations Environment Programme Finance Initiative. By December 2021, the number of signatories were increased from the 17 founding members to 70. In 2021, the Black Sea Virtual Knowledge Centre website was finalised and the Atlantic Smart Ports Blue Acceleration Network project, which aims to create an Atlantic port accelerator network, was launched. During the same period, the programme supported the creation of a new initiative on ocean literacy (EU4Ocean); renewed support via grants to eight projects dealing with competence acquisition and training programmes in formal, non-formal and informal settings through another ‘call on blue careers’; and provided grants through the dedicated ‘blue labs call’ to scientific consortia providing innovative blue economy products.

–For priority 4 (strengthening international ocean governance and enabling seas and oceans to be safe, secure, clean and sustainably managed), the programme continued to promote the objectives of the international ocean governance agenda by providing support to international organisations, regional and sectoral bodies and entities that are active in promoting the conservation and sustainable use of the oceans. The action carried out also targeted important scientific gaps identified through work and policies on the deep seas. For the first time, contributions to United Nations trust funds were possible, enhancing the EU’s role in multilateralism. The support provided to the European Marine Observation and Data Network has resulted in steady progress in terms of users and products since 2018, reaching the level of an operational service and a real Commission asset, offering thousands of datasets across seven thematic disciplines (bathymetry, biology, chemistry, geology, sea bed habitats, physics and human activities). Finally, a practical handbook on coast guard cooperation was adopted as a Commission recommendation in July 2021.

  

2014-2020 multiannual financial framework – European Maritime and Fisheries Fund

The EMFF is the fund for the EU’s maritime and fisheries policies for 2014 to 2020, and is one of the five complementary European Structural and Investment Funds promoting a growth- and jobs-based recovery in the EU. The fund helps fishers in the transition to sustainable fishing, supports coastal communities in diversifying their economies, finances projects that create new jobs and improve quality of life along EU coasts and makes it easier for applicants to access financing.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 6 368.7 | | |  | | --- | | 6 381.6 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 4 105.4 | |  | |  | | --- | | 64% | |

–By the end of December 2020, all appropriations available under the EMFF had been successfully committed. As of January 2021, no further commitments were possible for the EMFF. The implementation of the programme was at full speed in 2021, in terms of both the part of the fund executed under direct management action and the part implemented by the Member States.

–In 2020 (the most recent year for which complete validated data are available on the shared management implementation), the pace of implementation at the level of the Member States increased: EUR 797 million was committed to specific initiatives in that year (up from EUR 661 million in 2019). Cumulatively, EUR 4.1 billion in EMFF funding has been committed by the Member States, corresponding to 72% of the EUR 5.7 billion in total EMFF funding available. Payments claimed by beneficiaries continued to advance, and reached EUR 2.4 billion (or 42% of the total shared management funding for the EMFF). These sums concern approximately 68 000 operations. At the end of 2021, as regards shared management, cumulative EMFF net payments by the Commission to Member States totalled just under EUR 3 billion. This represents 53% of the total amount allocated to the programmes, and shows progress from the position at the end of 2020 (43%).

–The cumulative EMFF amount that was decommitted in 2018, 2019 and 2020 totals EUR 97.6 million. At the end of 2021, the maximum decommitment amounts could have increased to an additional EUR 42.4 million. However, the final amount will only be known once the Member States concerned have sent justifications to reduce this amount.

–Each autumn, during the expert group meeting, Member States are reminded of the n + 3 decommitment risk, and all reasonable steps are taken to encourage them to submit claims in good time.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Value of aquaculture production in the EU (billion EUR) | 0 (\*\*) | 93% (\*\*\*) | 4.43 in 2022 | EUR 4.1 billion out of the 2023 target of EUR 4.43 billion (excluding the United Kingdom) | On track |
| Level of employment maintained with support from the EMFF (number of jobs) | 0 | 76% | 41 665 in 2023 | 31 594 jobs out of a target of 41 665 | On track |
| Number of local strategies selected by local fishery action groups | 0 | > 100% | 276 in 2022 | 348 strategies compared to a target of 276 | On track |

(\*) % of target achieved by the end of 2020.

(\*\*) Value of aquaculture annual production in the EU in 2013 was EUR 3.85 billion. The baseline is considered to be zero for the calculation of progress towards the target.

(\*\*\*) % of target achieved by the end of 2018.

–For initiatives implemented under direct and indirect management, see the ‘Performance assessment’ section for the EMFAF above.

–The initiatives under shared management continue to help improve the sustainability of fishing and aquaculture, to maintain and protect the natural environment, to encourage innovation and the adoption of new technology and to increase cooperation and partnerships between businesses, thus contributing to the achievement of these objectives. Examples are provided below.

–For the objective of promoting competitive, environmentally sustainable, economically viable and socially responsible fisheries and aquaculture, the programme financed:

–a project adding value to fishery products by introducing on-board processing activities; and

–a pilot project on integrating vertical seaweed cultivation into the recirculated aquaculture system industry to reduce the environmental impact of land-based fish production.

–For the objective of fostering the implementation of the common fisheries policy, examples of operations include real-time camera observation in the Danish trawl fishery and a ‘Fully Documented Fishery’ digital tool for the automated recognition of the species and size of each fish.

–For the objective of promoting a balanced and inclusive territorial development of fisheries and aquaculture areas, the programme financed a stock management plan focused on three local high-value species.

–For the objective of fostering the development and implementation of the EU’s integrated maritime policy in a manner complementary to cohesion policy and the common fisheries policy, the programme financed a dolphin-monitoring project and a baseline survey and monitoring of non-indigenous species.

RFMOs/SFPAs

REGIONAL FISHERIES MANAGEMENT ORGANISATIONS AND SUSTAINABLE FISHERIES PARTNERSHIP AGREEMENTS

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 98%  of conservation measures adopted by RFMOs in 2021 for the management of the stocks under their purview were in line with scientific advice. | 17  out of 20 tuna and tuna-like stocks targeted by the EU fleet in 2021 were fished at a sustainable level and one is on its way to sustainability. | 21 500  jobs were created and maintained through SFPAs in the EU each year between 2015 and 2021 (6 500 direct, 15 000 indirect). | 70%  of tuna catches made in the context of SFPAs between 2015 and 2021 were processed in a partner country. |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 1 053.0 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 1 053.0 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The programme promotes sustainable development for fisheries management and maritime governance outside EU waters, in line with the objectives of the common fisheries policy, and ensures that fishery resources are maintained above or restored above levels capable of producing maximum sustainable yield and the conservation of marine ecosystems. The programme contributes to achieving this through active involvement in regional fisheries management organisations (RFMOs) and through bilateral agreements with partner countries.

Challenge

While 79% of all EU catches are taken in EU waters, 13% come from the international high seas and 8% are caught in the exclusive economic zones within 200 nautical miles of partner countries’ waters. For the latter, it is essential that appropriate regulatory mechanisms be put in place to ensure that catches are sustainable.

EU fishing in the high seas is regulated through regional RFMOs set up to promote the conservation and sustainability of straddling and highly migratory fish stocks, while in the waters of non-EU countries, EU fishing preferably takes place through bilateral sustainable fisheries partnership agreements (SFPAs) negotiated by the EU with partner countries.

The EU is present in all of the world’s oceans through its fleets, and is therefore committed to contributing to global ocean and fisheries governance through determined and ambitious action at the multilateral, regional and bilateral levels.

Mission

The EU negotiates, concludes and implements bilateral SFPAs with non-EU countries. In addition, the EU pays compulsory annual budget contributions deriving from its membership of international bodies, including various RFMOs. RFMOs are international bodies set up to promote the conservation and sustainability of straddling and highly migratory fish stocks.

The EU is present in all of the world’s oceans through its fleets, and is obliged under the United Nations Convention on the Law of the Sea to cooperate with other parties by participating in such organisations.

Within the framework of SFPAs, the Commission maintains a political dialogue on fishery-related policies with the non-EU countries concerned, in line with the principles governing the common fisheries policy and the commitments under other relevant EU policies. In addition, SFPAs provide a financial contribution, the aims of which are to support the sustainable development of the fisheries sector in partner countries and to contribute to the better governance of their fisheries. This includes, in particular, improving the scientific and technical knowledge of relevant fisheries; contributing to control and surveillance and to the fight against illegal, unreported and unregulated fishing; and supporting better global governance of fisheries.

Objectives

The main objective of the programme is to promote sustainable fisheries worldwide and improved international ocean governance by 2024, which includes:

57.promoting, through active involvement in international organisations, and in line with the objectives of the Green Deal and the common fisheries policy, the conservation and sustainable management of the stocks under their purview and their ecosystem;

58.establishing, through SFPAs, a legal, economic and environmental governance framework for fishing activities carried out by European Union fishing vessels in non-EU-country waters, in line with other EU policies.

Actions

The programme pursues the above objectives by (1) supporting the negotiation, conclusion and implementation of bilateral SFPAs and (2) paying the compulsory annual contributions deriving from the EU’s membership of international bodies.

Delivery mode

Payments under SFPAs and RFMO agreements are managed under direct management. The Directorate-General for Maritime Affairs and Fisheries is in the lead DG for the Commission.

LINK TO THE 2014-2020 multiannual financial framework

During 2021-2027, the Commission will continue its membership of RFMO organisations and continue to carefully monitor the implementation of SFPAs. Emphasis will be put on appropriate reporting of activities financed under the SFPA sectoral support component, raising awareness of concrete action achieved.

WEBSITES FOR more information

<http://europa.eu/!mH87VG>

<https://europa.eu/!r4MKuN>

Legal basis

Regulation (EU) No 1380/2013 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 151.6 | 159.2 | 162.0 | 141.0 | 143.8 | 146.7 | 148.8 | 1 053.0 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities |  |  |  |  |  |  |  |  |

(\*) Only Article 15(3) of the financial regulation.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 151.5 | | |  | | --- | | 1 053.0 | | |  | | --- | | 14% | |
| Payments | |  | | --- | | 149.5 | |  | |  | | --- | | 14% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 151.5 | 73.5 |
| Payments | 149.5 | 72.9 |

–3.5% of the above commitments (all of which have now been paid) went towards paying membership fees to RFMOs. The rest of the appropriations were spent on fishing access for the EU fleet to the waters of non-EU countries, mostly in West Africa and in the Indian and Pacific Oceans, and contributing to the sustainable development of their local fishing activities.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality \* |
| |  | | --- | | 15.7 | | 4.4 | Score 0: 151.5 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Sustainable fisheries agreements in force | 12 | 14% | 15 annually from 2026 | Milestone achieved in 2021. 13 compared to 12 | On track |
| Fishing possibilities for EU vessels – tuna | 129 | 14% | 150 annually from 2026 | Milestone achieved in 2021. 190 compared to 130 | On track |
| Fishing possibilities for EU vessels – mixed | 264 | 14% | 300 annually from 2026 | Milestone achieved in 2021. 396 compared to 265 | On track |
| Conservation measures based on scientific advice adopted, for all species under the purview of RFMOs of which the EU is a member | 0% | 14% | 95% annually from 2024 | Target achieved in 2021. 98% compared to 95% | On track |
| Sustainable management of emblematic tuna and tuna-like species as per relevant scientific advice; in particular, highly significant tuna and tuna-like species are fished at sustainable levels | 17 | 94% (\*\*) | 18 in 2027 | 17 compared to a target of 18 | On track |

(\*) % of years for which the milestones or target have been achieved during the 2021-2027 period.

(\*\*) % of target achieved by the end of 2021

–Overall, the EU remains one of the key drivers of progress in RFMOs and of increasing their performance with concrete proposals. The EU’s voluntary contributions (grants) to RFMOs played a key role in allowing them to provide scientific advice. The Commission continued to deliver on its commitment to achieve more sustainable fisheries worldwide: 98% of all conservation measures adopted in 2021 by RFMOs of which the EU is a member were in line with scientific advice.

–This outcome is higher than the results achieved in 2019 (88%) or 2020 (74%), and although in principle this is a positive outcome, it also reflects the fact that the total number of conservation measures adopted decreased to 55 from 65 in the previous year; however, those that were adopted were in line with scientific advice. The lower number of adopted measures demonstrates the impact of the pandemic on the work of RFMOs. Due to the virtual format of their meetings, scientific bodies could not cover their full agendas, and the main bodies of RFMOs resorted, in some cases, to rolling over existing measures based on the precautionary approach, which is by any measure a conservative decision.

–Regarding the tuna and tuna-like stocks fished by the EU fleet in 2021, the figures are very similar to those in 2020: Of the total commercial tuna catch worldwide, 87% came from stocks at healthy levels of abundance. Of the 20 tuna and tuna-like stocks targeted by the EU fleet, 17 were fished at sustainable levels and one continues to be on its way towards sustainability thanks to the measures adopted in 2019. No further progress could be achieved in 2021, however, as the second year of the pandemic again forced many RFMOs to hold their meetings in a virtual format and to limit their agendas to decisions essential to the functioning of those organisations. As a result, many key decisions could not be adopted, partly because the complexity of the discussions proved unsuitable for a virtual format.

–Regarding SFPAs, the general objective followed has been to implement and renew the network of agreements and active protocols to ensure continuity in the activities of the EU’s long-distance fishing fleet in non-EU-country waters, strictly respecting the sustainability and surplus principles.

–On some occasions, negotiations took more time than expected because the financial expectations of the non-EU countries could not be met. The COVID-19 pandemic led to delays in concluding some new agreements, such as the one with Mauritius. As a result, shipowners had to stop fishing or modify their strategies, in the context of sharp global competition between various long-distance fishing fleets. Some shipowners could find other fishing grounds in countries benefiting from an SFPA, or sometimes in other countries.

–In the context of the implementation of the protocols, which is an important part of programme performance and concerns both access conditions for EU vessels and the monitoring of sectoral support, joint committee meetings were held throughout 2021 with most of the partner countries, usually time remotely. For projects benefiting from sectoral support but delayed due to the COVID-19 pandemic, on several occasions the joint committees had to adjust the actions and the calendar that was initially laid down.

LIFE

PROGRAMME FOR THE ENVIRONMENT AND CLIMATE ACTION

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
| 314 | 27 000 | 1.7 million | 12 million | 300 | 1.8 million |
| wildlife species populations are expected to improve their conservation status, thanks to 175 ongoing LIFE projects. | tonnes/year of waste are expected to be appropriately managed, thanks to 178 ongoing LIFE projects. | people’s vulnerability to the adverse effects of climate change is expected to be reduced, thanks to 118 ongoing LIFE projects. | tonnes/year of greenhouse gas emissions are expected to be reduced, thanks to 263 ongoing LIFE projects. | tonnes/year of dangerous chemicals are no longer used/produced, thanks to 16 completed LIFE projects. | people have benefited from cleaner air, thanks to 25 completed LIFE projects. |

(\*) Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 5 455.8 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 1.1 |
| Total budget for 2021-2027 | 5 456.9 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The programme for the environment and climate action (LIFE) aims to facilitate the shift towards a sustainable, circular, energy-efficient, renewable energy-based, climate-neutral and climate-resilient economy. LIFE will contribute to reduce greenhouse gas emissions and our vulnerability to the harmful effects of climate change to protect, restore and improve the quality of the environment – including air, water and soil – and to halt and reverse biodiversity loss. Moreover, it will tackle the degradation of ecosystems, including through supporting the implementation and management of the Natura 2000 network, thereby contributing to sustainable development.

Challenge

Our environment and climate are under threat by the cumulative impact of human activities. The EU is committed to protect the environment and its biodiversity, ensure the quality of the air that we breath, carefully manage water resources and waste, increase our reliance on clean energy and mitigate and adapt to climate change dynamics.

A healthy and sustainable environment and the climate are both public goods. When a Member State decides how much to invest in these areas, it may fail to consider the benefits that such investments bring to other Member States. This means that intervention and investments also need to take place at the EU level.

Mission

LIFE aims to contribute to:

–achieving the shift towards a sustainable, circular, energy-efficient, renewable energy-based, climate-neutral and resilient economy;

–protecting, restoring and improving the quality of the environment, including the air, water and soil;

–halting and reversing biodiversity loss and tackling the degradation of ecosystems.

Objectives

LIFE is designed to support the objectives of EU legislation and policy on the environment – including nature and biodiversity – and on climate action, including the transition to renewable energy and increased energy efficiency through:

­developing and promoting innovative techniques and approaches and disseminating knowledge and best practices, including through the support of the Natura 2000 network;

­improving governance at all levels, in particular through enhancing capacities of public and private entities and the involvement of civil society;

­catalysing the large-scale deployment of successful technical and policy-related solutions by integrating related objectives into other policies and public and private sector practices, mobilising investment and improving access to finance.

Actions

LIFE comprises four sub-programmes: (1) nature and biodiversity; (2) circular economy and quality of life; (3) climate change mitigation and adaptation; and (4) clean energy transition.

In these sub-programmes, LIFE finances activities such as:

–‘strategic nature projects’ that support the achievement of EU nature and biodiversity objectives, by implementing coherent action programmes in Member States in order to mainstream the objectives and priorities into other policies and financing instruments;

–‘strategic integrated projects’ that implement – on a regional, multi-regional, national or transnational scale – environmental or climate strategies or action plans developed by Member State authorities and required by specific EU environmental, climate or relevant energy legislation or policy;

–standard action projects that pursue the specific objectives of the LIFE programme;

–building capacity to support energy efficiency and renewable energy;

–studies, the evaluation and monitoring of policies, information and communication activities, prizes, etc.

Delivery mode

LIFE is implemented through direct management (grants, procurement and prizes) and indirect management for specific activities. Within the Commission, DG Environment is the lead, with support from DG Energy and DG Climate Action. The European Climate, Infrastructure and Environment Executive Agency manages the bulk of the grants.

LINK TO THE 2014-2020 Multiannual Financial Framework

The number of sub-programmes has increased from two (environment and climate action) to four (nature and biodiversity; circular economy and quality of life; climate change mitigation and adaptation; and clean energy transition).

The new clean energy transition sub-programme has an incorporated actions for capacity building supporting energy, efficiency and renewable energy previously funded under Horizon 2020 (until 2020). A reinforced focus on nature and biodiversity is ensured.

Building on the strategic integrated projects first launched under the 2014-2020 LIFE programme, the 2021-2027 LIFE programme will continue to support strategic integrated projects (to a slightly greater scale than previously) and has introduced a dedicated source of funding to support strategic nature projects under the nature and biodiversity sub-programme.

Financial instrument operations will be managed under InvestEU.

Impact assessment

The 
[impact assessment](https://europa.eu/!Jj39JN)
 of LIFE was carried out in 2018.

WEBSITE FOR more information

The main website of the 
[LIFE programme](https://cinea.ec.europa.eu/life_en)
 provides information on the programme itself, funding opportunities, project management and links to the database including information on all LIFE projects (
[LIFE project public page)](https://webgate.ec.europa.eu/life/publicWebsite/search)
, the best LIFE projects (
[Best projects and LIFE awards](https://cinea.ec.europa.eu/life/best-projects-and-life-awards_en)
) and publications (
[LIFE publications)](https://cinea.ec.europa.eu/life/life-publications_en)
.

Legal basis

Regulation (EU) 2021/783 of the European Parliament and of the Council

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 738.8 | 755.5 | 728.3 | 751.6 | 783.5 | 826.6 | 871.4 | 5 455.8 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 1.1 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 1.1 |
| Total | 739.9 | 755.5 | 728.3 | 751.6 | 783.5 | 826.6 | 871.4 | 5 456.9 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + EUR 23.8million (+ 0%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  |  | | --- | --- | | |  | | --- | | 739.8 | | | |  | | --- | | 5 461.7 | | |  | | --- | | 14% | |
| Payments | |  | | --- | | 22.8 | |  | |  | | --- | | 0% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 738.7 | 738.5 |
| Payments | 22.8 | 43.5 |

–Despite the late agreement reached on the multiannual financial framework, the LIFE programme regulation was adopted on 29 April 2021.

–Thanks to close collaboration with the Member States within the LIFE Committee, the Commission managed the adoption of the first multiannual work programme on 9 July 2021. The calls for proposals for action grants, new framework partnership agreements and operating grants were launched immediately thereafter. A limited number of small technical assistance projects was signed in 2021 and the bulk of the grant agreements will be concluded throughout 2022. Procurement activities resumed in July, leading to the signature of service contracts, studies and other items that will underpin environmental and climate policies.

–The bulk of 2022 appropriations – more than 80% of the budget – is used to finance different types of projects submitted by EU private and public organisations. Approximately 17% of the budget is for the financing of procurement contracts to support the work on environment, climate and energy legislation and policies and 3% of the budget is devoted to the provision of technical assistance for facilitating green investments.

–In 2023, approximately EUR 600 million will finance some 200 projects on nature and biodiversity (40% of the budget), on the circular economy and quality of the air, water, soil etc. (26%), on climate mitigation and adaptation (18%) and on sustainable energy (16%). In addition, approximately EUR 90 million will be used to prepare, implement, monitor and evaluate new legislation and policies in the environment and climate fields. These outsourced activities are mainly procurement contracts with service providers or administrative agreements with the Joint Research Centre. Finally, approximately 3% of the budget will support ‘green solutions’, where a lack of capacity to access funding is the main barrier for the large-scale deployment of a technology, approach or policy which has proven to be effective. This kind of support is implemented via different technical assistance facilities: by the European Investment Bank in the framework of InvestEU and by the Climate, Infrastructure and Environment Executive Agency through Green Assist.

–The required payment funds will mainly be used to finance ongoing projects and relevant contracts. Most of the projects and contracts are multiannual and payments are made in instalments.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 375.2 | | 332.1 | Score 0\*: 738.7 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Population benefiting from an improvement in air quality | 2.5 million | 0% | 4.6 million in 2030 | 2.5 million compared to a target of 4.6 million | On track |
| Reduction of greenhouse gas emissions | 12 million | 0% | 16.5 million in 2030 | 12.0 million compared to a target of 16.5 million | On track |
| Population benefiting from a reduction of their vulnerability to the adverse effects of climate change | 1.7 million | 0% | 3.1 million in 2030 | 1.7 million compared to a target of 3.1 million | On track |
| Additional annual renewable energy production |  | 0% | 4 463 in 2030 | 0 compared to a target of 4 463 | On track |
| Area of habitats where loss of biodiversity is being halted or reversed | 1.6 million | 0% | 3.1 million in 2030 | 1.6 million compared to a target of 3.1 million | On track |
| Number of species where loss is being halted or reversed | 314 | 0% | 606 in 2030 | 314 compared to a target of 606 | On track |
| Number of projects improving governance at all levels, in particular through enhancing the capacities of public and private actors and the involvement of civil society |  | 0% | 296 in 2030 | 0 compared to a target of 296 | On track |
| Cumulative investments triggered by the projects or finance accessed |  | 0% | 2 898 in 2030 | 0 compared to a target of 2 898 | On track |

(\*) % of target achieved by the end of 2021.

–As we are in an early stage of implementation of the 2021-2027 programme, most projects financed from the 2021 budget have not started yet.

–The preparatory work for starting the implementation of the programme was successfully completed. The legal framework was finalised with the adoption of the 2021-2024 multiannual work programme. The transition to the Climate, Infrastructure and Environment Executive Agency that took over the implementation of the grants from the Executive Agency for Small and Medium-sized Enterprises happened in a smooth way. The calls for proposals were launched without delays.

–Almost 40 calls for proposals were launched in 2021, of which 19 under the new clean energy transition sub-programme.

  

MULTIANNUAL FINANCIAL FRAMEWORK 2014-2020 – LIFE

The LIFE programme aims to facilitate the shift towards a sustainable, circular, energy-efficient, renewable energy-based, climate-neutral and climate-resilient economy. LIFE will contribute to reduce greenhouse gas emissions and our vulnerability to the harmful effects of climate change to protect, restore and improve the quality of the environment – including air, water and soil – and to halt and reverse biodiversity loss. Moreover, it will tackle the degradation of ecosystems, including through supporting the implementation and management of the Natura 2000 network, thereby contributing to sustainable development.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 3 464.4 | | |  | | --- | | 3 466.4 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 1 962.3 | |  | |  | | --- | | 57% | |

–The required payment funds will mainly be used to finance ongoing projects and relevant contracts. Most of the projects and contracts are multiannual and payments are made in instalments.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress | Target | Results | Assessment |
| Implementation of the seventh environment action programme |  | > 100% (\*) | 1 700 | 2 999 interventions compared to a target of 1 700 | On track |
| Population benefiting from improved air quality |  | > 100% (\*\*) | 1.4 million | 1.9 million people compared to a target of 1.4 million | On track |

(\*) % of target achieved by the end of 2021.

(\*\*) % of target achieved by the end of 2020.

–The programme is on track as regards the 2014-2020 activities, the implementation of which will continue during 2022.

–In terms of outputs, in the 2014-2020 period the LIFE programme financed more than 1 400 projects that have contributed to the European Green Deal by mainstreaming nature and biodiversity and/or zero pollution and/or circularity and/or climate action goals.

–About one third of these projects are developing, demonstrating and promoting innovative techniques and approaches to achieve synergies between climate neutrality/adaptation and zero pollution, biodiversity or circular economy goals, thus contributing to promote a holistic vision of the environment.

–With the 11 additional integrated projects financed in 2021, the total LIFE financing for integrated projects amounts to EUR 110 000 000. These projects should facilitate the coordinated use of more than EUR 10 000 000 000 of complementary funding. This implies that for each euro financed by the LIFE programme in the years 2014-2020, an additional EUR 45 are expected to be financed from other sources for the implementation of the targeted plans. Experience shows that the amount of additional funds mobilised by the integrated projects tends to increase during the project lifetime.

–In particular, the 2014-2020 LIFE programme has already exceeded the 2020 targets related to a large number of indicators. Some of these indicators still show growing figures, thanks to new projects and the ongoing validation of performance data for previous projects.

JTM

JUST TRANSITION MECHANISM

Programme in a nutshell

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 9 181.8 |
| NextGenerationEU | 10 868.5 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 46.3 |
| Total budget for 2021-2027 | 20 096.5 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The Just Transition Mechanism has been proposed as part of the European Green Deal investment plan to make sure that no one and no region is left behind in the transition to a climate-neutral economy. The primary goal of the mechanism is to provide support to the most negatively affected regions and people and to help alleviate the socio-economic costs of the transition.

Challenge

The transition towards climate neutrality will provide benefits and opportunities for the entire EU, but it will also present greater socio-economic challenges and difficulties for some regions and sectors than others.

The objective to support the people, economy and environment of territories facing economic and social transformation in their transition to a climate-neutral economy cannot be fully achieved by the Member States alone. There are many disparities between the levels of development and between the financial resources of Member States and territories. There is also a need for a coherent implementation framework covering several EU funds under shared management to support this complex process. Those objectives can be better achieved at EU level.

Mission

The Just Transition Mechanism aims at alleviating, for the most affected territories, the economic, environmental and social costs of the transition towards climate neutrality by 2050, thereby effectively ensuring that this key EU objective is achieved in an effective and fair manner.

Objectives

The Just Transition Mechanism is mainly established as part of the European Green Deal investment plan within the framework of cohesion policy, the main EU policy instrument to reduce regional disparities and to address structural change in Europe’s regions. It shares the objectives of the cohesion policy in the specific context of the transition towards climate neutrality. While this is not an eligibility criterion, the resources from the mechanism should complement the other resources available.

The mechanism will contribute to a wide range of measures designed to promote public investment to foster sustainable development in the regions concerned. The mix of actions will depend on the circumstances of the territory affected by the climate transition challenge outlined in the territorial just transition plans.

Actions

Beneficiary territories to be supported by the Just Transition Mechanism will be identified in one or more territorial just transition plans (providing an outline of the transition process until 2030), which will be approved by Member States in a dialogue with the European Commission, steered by the European semester process. These plans will devote special attention to those territories set to suffer the greatest expected job losses and to the transformation of industrial facilities with the highest greenhouse gas intensity. The plans will detail the social, economic and environmental challenges and the needs for economic diversification and reskilling.

Delivery mode

The Just Transition Mechanism has three pillars. The first is the Just Transition Fund. It aims at alleviating the economic and social cost of the transition towards climate neutrality. The second is the dedicated just transition scheme under InvestEU. The third is the public sector loan facility. It will support projects that do not generate a sufficient stream of revenues to cover investment costs.

The Just Transition Fund will be implemented through shared management in close cooperation with national, regional and local authorities and stakeholders. This will ensure ownership of the transition strategy and provide the tools and structures for an efficient management framework. The Directorate-General for Regional and Urban Policy leads on behalf of the Commission. The Public Sector Loan Facility will be implemented through direct management by launching open calls for proposals.

LINK TO THE 2014-2020 multiannual financial framework

The Just Transition Mechanism is a new mechanism for the 2021-2027 multiannual financial framework. It addresses new types of challenges arising from the necessary climate transition.

Impact assessment

In 2022, a Just Transition Fund-related study will assess the outcome and impact of the establishment of territorial just transitions plans.

WEBSITE FOR more information

[Just Transition Mechanism](https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/actions-being-taken-eu/just-transition-mechanism/just-transition-funding-sources_en)

[Just Transition Platform](https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/actions-being-taken-eu/just-transition-mechanism/just-transition-platform_en)

Legal basis

Regulation (EU) 2021/1229 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 4.0 | 1 460.9 | 1 610.2 | 1 636.5 | 1 663.2 | 1 389.5 | 1 417.4 | 9 181.8 |
| NextGenerationEU | 10.7 | 5 385.6 | 5 472.2 |  |  |  |  | 10 868.5 |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 46.3 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 46.3 |
| Total | 61.0 | 6 846.5 | 7 082.4 | 1 636.5 | 1 663.2 | 1 389.5 | 1 417.4 | 20 096.5 |

(\*) Only Article 15(3) of the financial regulation.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 9.6 | | |  | | --- | | 20 096.5 | | |  | | --- | | 0% | |
| Payments | |  | | --- | | 1.6 | |  | |  | | --- | | 0% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 3.9 | 1 137.0 |
| Payments | 1.2 | 0.0 |

Pillar I – The Just Transition Fund

–Implementation will only start after the Just Transition Fund programmes are adopted. The programmes are expected to be adopted in 2022.

Pillar III – The public sector loan facility

–The first calls for proposals will be launched once a sufficient number of territorial just transition plans are adopted, towards the middle of 2022 and the first grant agreements are expected to be signed in 2023.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 14.7 | | 0 | Score 0\*: 3.9 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: not targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Enterprises supported |  |  |  | No results | No data |
| Additional production capacity for renewable energy |  |  |  | No results | No data |
| Additional capacity for waste recycling |  |  |  | No results | No data |
| Jobs created in supported entities |  |  |  | No results | No data |
| Annual users of new or modernised public transport |  |  |  | No results | No data |
| Overall investment mobilised |  |  |  | No results | No data |
| Number of projects receiving financing under the facility |  |  |  | No results | No data |
| Greenhouse gas emission reduced, where relevant |  |  |  | No results | No data |

(\*) % of target achieved by the end of 2021.

AMIF

Asylum, Migration and Integration Fund

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 41 266  places in reception accommodation infrastructure were set up in line with the EU acquis between 2014 and 2021. | 71 235  people were trained in asylum-related topics between 2014 and 2021. | 114 659  people participated in pre-departure measures between 2014 and 2021. | 86 243  people were resettled between 2014 and 2021. |
| 347 387  returnees had their return co-financed by the fund between 2014 and 2021. |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 10 068.7 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 10 068.7 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The Asylum, Migration and Integration Fund (AMIF) promotes the efficient management of migration flows and the implementation, strengthening and development of a common approach to asylum and immigration in the EU.

Challenge

The EU has faced a very large, and growing, number of asylum seekers and migrants in recent years. Attempts by migrants to reach European shores using makeshift means have all too often resulted in tragedy. The EU budget has supported efforts to manage these inflows and effective returns. Nevertheless, as confirmed by regular reports on the delivery of EU migration policy, there is still much to be done to reduce the incentives for irregular migration.

The challenges in the areas of asylum and migration are by their nature interlinked, transnational phenomena, and cannot be adequately addressed by Member States acting alone. Together with the integrated management of the EU’s external borders, the completion of a Common European Asylum System is the most effective way to share these responsibilities and their financial implications between Member States fairly. EU funding in the area of integration of non-EU nationals is indispensable to increase the quality of support for newcomers in the early stages after their arrival. This is crucial in order to ensure their full inclusion in EU society in the long run, if they receive permanent protection.

Mission

The AMIF aims to further boost national capacities and improve procedures for migration management, and to enhance solidarity and responsibility sharing between Member States, in particular through emergency assistance and the relocation mechanism.

Objectives

The AMIF pursues the following specific objectives.

–To strengthen and develop all aspects of the Common European Asylum System, including its external dimension.

–To support legal migration to the Member States, including by contributing to the integration of non-EU nationals.

–To contribute to countering irregular migration and ensuring the effectiveness of return and readmission in non-EU countries.

–To enhance solidarity and the sharing of responsibility between the Member States, in particular towards those most affected by migration and asylum challenges, including through practical cooperation.

Actions

The AMIF supports a broad range of actions in line with EU migration policy. This includes, in particular:

–ensuring the uniform application of the EU acquis and of the priorities related to the Common European Asylum System, legal migration and return;

–providing support and services consistent with the status and the needs of the people concerned, in particular vulnerable groups;

–supporting resettlement, humanitarian admission and transfers of applicants for and beneficiaries of international protection;

–supporting the development and implementation of policies promoting legal migration, such as the development of mobility schemes to the EU and raising awareness of the appropriate legal channels for immigration;

–supporting integration measures tailored to the needs of non-EU nationals and early integration programmes focusing on education, language and other training (such as civic orientation courses and professional guidance) to prepare their active participation in and their acceptance by the receiving society;

–supporting infrastructure for the reception of non-EU nationals, including the possible joint use of such facilities by more than one Member State;

–supporting an integrated and coordinated approach to return management at the EU and Member State levels, developing capacities for effective and sustainable return and reducing incentives for irregular migration;

–supporting assisted voluntary return and reintegration;

–cooperating with non-EU countries on asylum, legal migration and countering irregular migration, and on effective return and readmission for the purpose of managing migration.

Delivery mode

The AMIF will be implemented under shared, direct or indirect management. The largest share (63.5%) will be allocated to national programmes under shared management. The Directorate-General for Migration and Home Affairs is the lead DG for the Commission, in close coordination with DG Employment, Social Affairs and Inclusion, DG Agriculture and Rural Development, DG Regional and Urban Policy, DG Neighbourhood and Enlargement Negotiations, DG International Partnerships and the Service for Foreign Policy Instruments.

LINK TO THE 2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK

The AMIF builds on the successful implementation of and lessons learnt from the Asylum, Migration and Integration Fund under the 2014-2020 multiannual financial framework. It maintains its external dimension while ensuring more safeguards. It also introduces more flexibility through the new Thematic Facility, which enables funding to be allocated to emerging or unforeseen needs (via a mix of shared, direct and indirect management), to steer the funds towards changing EU priorities and pressing challenges.

Impact assessment

The impact assessment of the AMIF was carried out in 2018. For further information please consult: 
<https://europa.eu/!xU94BD>

WEBSITE FOR more information

https://ec.europa.eu/home-affairs/funding/asylum-migration-and-integration-funds\_en

Legal basis

Regulation (EU) 2021/1147 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 497.6 | 1 370.8 | 1 417.8 | 1 500.4 | 1 782.4 | 1 702.5 | 1 797.2 | 10 068.7 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 0.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0.0 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + EUR 191.8 million (+ 2%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 496.8 | | |  | | --- | | 10 068.7 | | |  | | --- | | 5% | |
| Payments | |  | | --- | | 44.9 | |  | |  | | --- | | 0% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 496.8 | 873.3 |
| Payments | 44.9 | 361.8 |

–For the Member States’ programmes, due to the delays in the adoption of the legal basis for 2021-2027 and the time needed for the programming procedure, shared management programmes may only be formally approved starting from the second quarter in 2022. The EU actions have also become a part of the Thematic Facility covered by the multiannual work programme for 2021-2022. Most of the actions have been pencilled in for 2022, with their implementation commencing in early 2022 and continuing in 2023.

–The emergency assistance instrument provides financial assistance to Member States, international organisations and (exceptionally) EU agencies to address urgent and specific needs in the event of duly justified emergency situation, as defined in the fund-specific regulation, in particular in the areas of migration, border management and security. For instance, in August 2021 the Commission allocated an emergency assistance grant of EUR 14 million to Spain to cover the provision of humanitarian assistance to the migrant population reaching the autonomous city of Ceuta.

–The invasion of Ukraine by Russia on 24 February 2022 led to a large influx into several EU Member States of displaced people from Ukraine. This has placed renewed pressure on the financial resources of Member States to deal with urgent migration management needs. While the increased migratory pressure is already being felt acutely in the Member States that share a land border with Ukraine, the needs are spreading further afield throughout the whole territory of the EU, and will persist beyond 2022 into 2023. The Commission’s proposal to increase flexibilities in the use of 2014-2020 funds and examined available amounts in the Emergency Assistance and Thematic Facility was adopted in April 2022. The proposal also extended the implementation period by 1 year, i.e. up to 2023.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| 0 | 0 | Score 0\*: 496.8 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of people placed in alternatives to detention | 0 |  |  | No results | No data |
| Number of participants in language courses who have improved their proficiency level in the host-country language upon leaving the language course by at least one level in the Common European Framework of the Reference for Languages or the national equivalent | 0 |  |  | No results | No data |
| Number of participants who applied for long-term status | 0 |  |  | No results | No data |
| Number of returnees voluntarily returned | 0 |  |  | No results | No data |
| Number of returnees who were removed | 0 |  |  | No results | No data |
| Number of applicants for and beneficiaries of international protection transferred from one Member State to another | 0 |  |  | No results | No data |
| Number of people resettled | 0 |  |  | No results | No data |
| Number of people admitted through humanitarian admission | 0 |  |  | No results | No data |

(\*) % of target achieved by the end of 2021.

Performance assessment will be provided once the implementation of the 2021-2027 programme has started in earnest and the first performance reports have been received.

2014-2020 multiannual financial framework – Asylum, Migration and Integration Fund

The AMIF is achieving its objectives, especially considering the volatile and challenging migration situation throughout the 2014-2020 period. The AMIF provides the financial means to push forward the EU’s agenda on migration. The Commission is working to establish a comprehensive approach on this agenda, developing legislative proposals to establish and improve common EU action, and monitoring and enforcing the correct implementation of applicable rules by the Member States.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 7 585.4 | | |  | | --- | | 7 595.0 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 5 678.0 | |  | |  | | --- | | 75% | |

–Given the acute migration and border management needs arising from the invasion of Ukraine, the Commission proposed an initiative, which was adopted in April 2022, to facilitate access to unspent funding under the home affairs funds for the 2014-2020 programmes (including the AMIF).

–Indeed, at the end of 2021, for the national programmes only, 75.18% of the total envelope of the fund had been paid, meaning that the Member States actually spent and used EUR 3.44 billion of the EUR 4.58 billion allocated under the national programmes over the 2014-2020 period. By February 2022, Member States had requested a total amount of EUR 556 million. The implementation of the AMIF will run until the end of 2023. Therefore, nearly 2 years of implementation remain.

–Over the last few years, the national programmes have been revised several times. In 2017, they were modified to include funding linked to the resettlement, return and measures implementing the EU action plan on the integration of non-EU nationals. In 2018, they were revised to include an envelope of EUR 30 million and EUR 20 million to support the integration of non-EU nationals and the return of migrants, and to reflect the outcome of the midterm review exercise. In 2019, they were modified to include additional resources of EUR 97.6 million for resettlements to be carried out by the Member States in 2020 and 2021. In 2021, funding was increased again, by EUR 77.9 million.

–Implementation in 2020 and 2021 was marked by the effort to address the impact of the COVID-19 pandemic, which led to some delays in project implementation and procurement processes, especially in projects where the final beneficiary needs face-to-face interaction with the target audience (asylum, integration, return, relocation and resettlement) and in connection with travel restrictions. Also, there was an increase in mitigating measures in the co-financing rates, due to the extension of the duration of projects, with content adaptations or modifications.

–The AMIF has contributed to the EU Emergency Trust Fund for stability and addressing the root causes of irregular migration and displaced persons in Africa (EUR 135 million between 2017 and 2020).

–By the end of 2021, AMIF emergency assistance allocated to Member States since 2015 had reached EUR 2.4 billion. In 2021, 21 commitments were signed in relation to emergency assistance, notably in relation to Greece, Spain, Cyprus and Malta.

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Asylum – people provided with assistance | 0 | > 100% | 1.3 million in 2022 | 2.7 million compared to a target of 1.3 million | Achieved |
| New/improved reception accommodation infrastructures | 0 | 81% | 51 028 in 2022 | 41 266 compared to a target of 51 028 | On track |
| Number of people resettled | 0 | 79% | 108 860 in 2022 | 86 243 compared to a target of 108 860 | On track |
| Integration of non-EU nationals – number of beneficiaries | 0 | > 100% | 2.6 million in 2022 | 7.8 million compared to target of 2.6 million | Achieved |
| Integration of non-EU nationals – local, regional and national actions | 0 | > 100% | 7 443 in 2022 | 12 786 compared to target of 7 443 | Achieved |
| Co-financed returns – total (number of people) | 0 | 57% | 612 400 in 2022 | 347 387 compared to a target of 612 400 | Deserves attention |
| Co-financed returns – voluntary (number of people) | 0 | 63% | 297 930 in 2022 | 187 983 compared to a target of 297 930 | Deserves attention |
| Asylum seekers and beneficiaries transferred from one Member State to another | 0 | 92% | 38 703 in 2022 | 35 451 compared to a target of 38 703 | On track |

(\*) % of target achieved by the end of 2021.

–The AMIF focused on the three areas identified in its acronym: asylum schemes, migration and integration. Whereas in the first year a stronger focus was placed on asylum schemes, for example via resettlement and relation, the latter years have focused increasingly on legal migration and integration.

–Overall, most of the innovative measures (simplified cost options, multiannual programming) are considered beneficial and appear to have achieved simplification. Room for improvement still exists, however, especially in relation to the internal coherence of the fund and the administrative part (control measures) that affects efficiency, or in relation to the monitoring and evaluation system under the AMIF, including in terms of definitions of its indicators and the collection of data. These are key aspects currently being tackled while the new 2021-2027 programmes and related monitoring systems are being set up together with the fund’s managing authorities.

–In terms of performance, most of the indicators set out for the AMIF have achieved or exceeded their targets, with the exception of the returns area, which was particularly affected in 2020 and 2021 by COVID-19-related travel restrictions.

–On the strengthening of the Common European Asylum System, the number of asylum applications increased by a third compared to 2020, coming back to pre-pandemic levels after a drop that was largely driven by COVID-19 and the related travel restrictions. Emergency assistance is the Commission’s main tool for providing strategic operational EU added-value support at short notice in the form of grants and contributions, which was confirmed later on by the interim evaluation of the fund. Since 2015, the total amount of AMIF emergency assistance has reached over EUR 2.4 billion. As regards the AMIF programmes, the fund provided 2.72 million people in target groups with asylum assistance, exceeding its target of 1.26 million, and 71 235 people were trained in asylum-related topics compared to a target of 25 205.

–On effective integration and legal migration, the Commission supports the Member States in integrating non-EU nationals through the use of EU funding, some of which is provided by the AMIF and the rest by the European Structural and Investment Funds. Between 2014 and 2020, EUR 1 022 million was allocated under the AMIF to support measures on integration and legal migration. In 2021, Member States reported expenditure of EUR 147 million. Under the AMIF national programmes, the target of 2.6 million people having participated in integration assistance projects was greatly exceeded.

–However, as regards the number of persons who participated in pre-departure measures, the results fell far below the target set (114 659 people supported versus a target of 240 920). Reaching the targets depends on Member States and their estimates, with some exceeding their targets significantly and others still at a very early stage of fulfilling them. Travel restrictions and delays due to COVID-19 also played a role.

–On effective return policies, with migrants who have no right to stay in the EU needing to be returned, the area needs further improvement and additional efforts, which will depend on better cooperation by non-EU countries and on Member States’ effectiveness in implementing returns. In 2020, the rate of effective return of from the EU-27 to non-EU countries dropped to 17.7%, given that return decisions were affected much less than actual return operations by travel restrictions on the grounds of COVID-19. Return-related indicators are also not fully on track to achieve their targets. However, in 2021, the Commission put forward a number of new initiatives to improve on effective return policies, including its first strategy on voluntary returns and reintegration (
[9](#footnote10)
), additional cooperation with key countries of origin and the strengthening of flights coordinated by the European Border and Coast Guard Agency (up by approximately 50%). Furthermore, in March 2022, the Commission also appointed a return coordinator in DG Migration and Home Affairs.

–On strengthening solidarity and sharing responsibilities between Member States, in 2016 the Commission proposed a system with a corrective allocation mechanism, which has not yet been adopted by the European Parliament and the Council. However, there is a need for emergency measures to support Member States facing disproportionate numbers of arrivals. Therefore, in addition to their national allocations, several Member States, notably Greece, Spain and Italy, have benefited from AMIF emergency assistance. For example, EUR 1.897 billion in emergency assistance had been granted to Greece by the end of December 2021.

–The main lessons learnt during the programming period 2014-2020 include the following:

–there has been insufficient cooperation, coordination and strategic steering in the implementation of the AMIF with other EU-level initiatives;

–there is a need for simplification;

–there is insufficient flexibility to respond to changing needs during the programming period;

–there is a need to strengthen the quality of performance monitoring, with more regular and reliable data setting out result indicators.

IBMF

Integrated Border Management Fund

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 222 967  hits were registered in the Schengen information systems in relation to the total number of alerts. The number of hits dropped as a consequence of COVID-19 travel restrictions between 2014 and 2021 | 449  consular cooperation activities were developed between 2014 and 2021. | 720  specialised posts were created in non-EU countries between 2014 and 2021. | 38 901  border control (checks and surveillance) infrastructure and means were developed or upgraded between 2014 and 2021. |
|  |  |

(\*) Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 6 902.2 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0.5 |
| Total budget for 2021-2027 | 6 902.2 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The Integrated Border Management Fund (IBMF) addresses the challenges in the areas of the management of the external borders and common visa policy that cannot be adequately addressed by the Member States acting on their own.

Challenge

The abolition of internal border controls brings important benefits to EU citizens and businesses. However, the integrity, safety and security of the EU’s internal borderless area and of its Customs Union requires effective management and protection of the EU’s external borders, especially in times of challenges posed by migratory pressures and threats of serious cross-border crime.

This calls for action at the EU level, in the form of common measures for the effective control, including surveillance, of the EU’s external borders.

Mission

IBMF will address these challenges through two instruments for financial support: the customs control equipment instrument (CCEI) and the instrument for financial support for border management and visa policy (BMVI).

In particular, CCEI’s mission is to support the customs union and customs authorities to protect the financial and economic interests of the EU and its Member States, to ensure security and safety within the EU and to protect the EU from illegal trade while facilitating legitimate business activity.

BMVI’s mission is to provide financial support to Member States and to ensure strong and effective European integrated border management at the EU’s external borders, thereby contributing to a high level of internal security within the EU, all while safeguarding the free movement of people within it.

Objectives

CCEI’s specific objective is to contribute to adequate and equivalent customs controls through the purchase, maintenance and upgrade of relevant, state of the art and reliable customs control equipment, thereby enabling customs authorities to act as a single body to protect the interests of the EU.

BMVI has two specific objectives.

–To support effective European integrated border management at the external borders, implemented by the European Border and Coast Guard Agency as a shared responsibility of the agency and the national authorities responsible for border management, to facilitate legitimate border crossings, to prevent and detect illegal immigration and cross-border crime and to effectively manage migratory flows.

–To support the common visa policy to ensure a harmonised approach with regard to the issuance of visas and to facilitate legitimate travel, while helping to prevent migratory and security risks, and to strengthen and develop all aspects of the common European asylum system, including its external dimension.

Actions

CCEI supports the purchase, maintenance and upgrade of customs controls equipment, such as non-intrusive inspection, identification of hidden objects on humans, radiation detection, nuclide identification, analysis of samples in laboratories, sampling and field analysis of samples, handheld search tools and other types of innovative non-intrusive detection technology equipment.

BMVI supports a broad range of actions to improve border controls, in line with the European agenda on migration and in compliance with the Charter of Fundamental Rights of the European Union, enhancing the cooperation at the EU level for tasks carried out at borders. It funds efficient, client-friendly services to visa applicants while maintaining the security and integrity of visa procedures. It invests in common large‑scale information technology systems in the area of border management and visa policy, including in their interoperability, as well as in infrastructure and equipment, systems and services, training, exchange of experts, deployment of immigration liaison officers, innovative solutions and new technologies, studies, providing also operating support for the implementation of the European integrated border management and of the common visa policy.

Delivery mode

The Commission implements the CCEI actions under direct management. DG Taxation and Customs Union is in the lead, in close cooperation with the European Anti-Fraud Office for their anti-fraud programme and with other relevant Commission services. BMVI is implemented through shared management by the Member States and direct/indirect management. DG Migration and Home Affairs is in the lead, in close coordination with other shared management DGs, particularly DG Maritime Affairs and Fisheries. Close cooperation will be ensured between DG Taxation and Customs Union and DG Migration and Home Affairs.

LINK TO THE 2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK

CCEI is a new instrument. BMVI builds on the Internal Security Fund (ISF), the instrument for financial support for external borders and visa implemented under the 2014-2020 multiannual financial framework. It strengthens its external dimension to cover cooperation with non-EU countries and adds flexibility through a balanced mix of implementation modes.

  

Impact assessment

The impact assessment of the IBMF was carried out in 2018. For further information please consult: 
<https://europa.eu/!xU94BD>

WEBSITE FOR more information

For CCEI, please consult 
<https://europa.eu/!UK78xW>

For BMVI, please consult 
<https://ec.europa.eu/home-affairs/funding/borders-and-visa-funds/integrated-border-management-fund-border-management-and-visa-instrument-2021-27_en>
 

Legal basis

Regulation (EU) 2021/1148 of the European Parliament and of the Council. (BMVI)

Regulation (EU) 2021/1077 of the European Parliament and of the Council (CCEI)

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 289.0 | 983.7 | 1 195.3 | 1 050.3 | 1 187.2 | 1 091.1 | 1 105.1 | 6 901.7 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 0.5 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0.5 |
| Total | 289.5 | 983.7 | 1 195.3 | 1 050.3 | 1 187.2 | 1 091.1 | 1 105.1 | 6 902.2 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + EUR 279.9million (+ 4%) compared to the legal basis

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 288.6 | | |  | | --- | | 6 802.2 | | |  | | --- | | 4% | |
| Payments | |  | | --- | | 0.4 | |  | |  | | --- | | 0% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 288.4 | 533.5 |
| Payments | 0.3 | 127.1 |

–Russia’s invasion of Ukraine on 24 February 2022 led to a mass influx of displaced persons from Ukraine to several Member States. This places renewed pressure on the financial resources of Member States to deal with urgent migration management needs. While the increased migratory pressure, including reception and asylum processing procedures, is already being felt acutely in the Member States that share a land border with Ukraine, the needs are spreading further afield throughout the whole territory of the EU and will persist beyond 2022.

–The Commission’s proposal to increase flexibility in the use of 2014-2020 Home Affairs funds and examined available amounts in the Emergency Assistance and Thematic Facility was adopted in April 2022. The Commission is also exploring how to make further use of the available amounts in the facility. However, the Ukraine crisis has no impact on the proposed total envelope of the BMVI in 2023.

–In 2021, an amount of EUR 155.4 million was implemented in commitments under BMVI, of which EUR 154.1 million for the first thematic facility under BMVI and EUR 1.3 million for the support expenditure. For CCEI, there were no commitments or payments granted in 2021.

–For the BMVI, due to the delays in the adoption of the legal basis for 2021-2027 and the time needed for the programming procedure in shared management, national programmes may only begin to be formally approved in the second quarter of 2022. The Commission also prepared a 2021-2022 work programme for the thematic facility to ensure the programming of funding for indirect/direct and shared management, on top of the basic allocations for the national programmes. The EU actions have become a part of the thematic facility covered by the 2021-2022 work programme. In view of the delayed adoption of the legal basis, implementation of most of the actions began in early 2022 and will continue throughout 2023.

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 0.05 | | 0 | Score 0\*: 3  Score 0: 285.3 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of items of equipment registered in the technical equipment pool of the European Border and Coast Guard Agency | 0 |  |  | No results | No data |
| Number of items of equipment provided to the European Border and Coast Guard Agency | 0 |  |  | No results | No data |
| Number of initiated/improved forms of cooperation of national authorities with the national coordination centre of the European Border Surveillance System | 0 |  |  | No results | No data |
| Number of addressed recommendations from Schengen evaluations and from vulnerability assessments in the area of border management | 0 |  |  | No results | No data |
| Number of new/upgraded consulates outside the Schengen area | 0 |  |  | No results | No data |
| Number of addressed recommendations from Schengen evaluations in the area of the common visa policy | 0 |  |  | No results | No data |
| Number of visa applications using digital means | 0 |  |  | No results | No data |
| Percentage of border crossing points and customs laboratories with equipment that meets the common list of equipment that should be available per customs laboratory/type of border crossing point (i.e. land, sea, air, postal, rail) | 0 |  |  | No results | No data |

(\*) % of target achieved by the end of 2021.

A meaningful performance assessment will only be possible once the implementation of the 2021-2027 programme has actually started in earnest and the first performance reports have been received.

  

MULTIANNUAL FINANCIAL FRAMEWORK 2014-2020 – INTERNAL SECURITY FUND – BORDERS AND VISA

BMVI builds on the investment and achievements made with the support of its predecessors: the External Borders Fund and the ISF – Borders and Visa. The fund has supported overall EU policies in the area of external border management and visas.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 2 689.8 | | |  | | --- | | 2 732.4 | | |  | | --- | | 98% | |
| Payments | |  | | --- | | 1 957.3 | |  | |  | | --- | | 72% | |

–The Commission proposed an initiative to facilitate access to unspent funds under the Home Affairs Funds for the 2014-2020 programmes, including ISF – Borders and Visa, given the acute migration and border management needs arising from the invasion of Ukraine. The intention was to provide immediate support to the Member States, as they could swiftly re-direct the funding under their existing programmes to address the migration needs caused by Russia’s invasion of Ukraine. The Commission’s proposals were adopted in April 2022.

–After an initial delay in the adoption of the legal bases of the Home Affairs funds by the co-legislators, all ISF Member State national programmes were adopted in 2015, with their implementation reaching cruising speed in 2017. Since then, the ISF national programmes were revised on several occasions; first to include an additional EUR 76 million, then in 2018 to add EUR 128.7 million for the purchase of equipment and EUR 192.3 million allocated equally to all the Member States participating in ISF – Borders and Visa. In 2019, EUR 212.4 million were allocated to all Member States, to cover costs related to the adoption of the European Travel Information and Authorisation System and the recast of the second-generation Schengen Information System regulations. Finally, it was modified in 2020 to include EUR 78.9 million to seven Member States to support border control activities, in particular in the Member States facing high migratory pressure at the external borders. No revisions were made in 2021.

–As regards the ISF – Borders and Visa, for the 2014-2020 period, EUR 2.42 billion were allocated to the national programmes of the Member States. Up to 2021, Member States actually spent EUR 1.61 billion, equivalent to an absorption rate of 66.42%.

–In terms of overall performance of the fund, many of the indicators set in the regulation have either exceeded their milestones or the end targets have already been achieved (even though implementation remains ongoing).

–In the 2020 and 2021 annual implementation reports, the Member States mostly reported that the COVID-19 pandemic caused delays in project implementation due to, for example, delays in public procurement procedures, travel restrictions, staff hiring processes, construction works due to lockdown and other restrictions related to COVID-19. Training activities were particularly affected by the COVID-19 travel restrictions. Mitigating measures included the extension of project durations and the increase of co-financing rates for some projects.

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Consulates developed / upgraded | 0 | > 100% | 923 in 2022 | 3 074 consulates compared to a target of 923 | Achieved |
| Number of border control infrastructures | 0 | > 100% | 19 902 in 2022 | 38 901 infrastructures compared to 19 902 | Achieved |
| National border surveillance infrastructure established / further developed in the framework of the European Border Surveillance System | 19 | 100% | 30 in 2022 | 30 infrastructures compared to 30 | Achieved |

(\*) % of target achieved by the end of 2021

–In 2020, the Commission continued to address the root causes of irregular migration and strengthen the protection of the EU’s external borders. The total number of detected irregular border crossings remained at approximately 200 000, marking an increase compared to 2020 (125 000) and 2019 (142 000). These are mostly explained by increases in the number of Syrians and Afghans apprehended within the western Balkan route and migrants from Egypt in the central Mediterranean route (
[10](#footnote11)
).

–ISF – Borders and Visa is making a crucial contribution to the application of the Schengen acquis, with the investment in the effective control of the external border through the information systems at EU level and their interoperability, providing and sharing relevant information. The fund has also contributed to the reinforcement of the capacities of Member States’ border management authorities. Special attention is still needed in the use of funds in the information systems area, to ensure that all available funding is absorbed by December 2022, while taking into account the flexibility of the Commission’s proposal (adopted in April 2022) to prolong the implementation period for the funds still available to Member States under the 2014-2020 Home Affairs funds by one year due to the crisis in Ukraine.

–On supporting a common visa policy, Member States have implemented projects for a value of EUR 7.92 million under the specific objective ‘“Support a common visa policy’ and EUR 4.52 million under the specific objective ‘Operating Support’ in relation to visa policy. The trend shows that the cumulative values reported have been steadily increasing and have exceeded the set target. However, results are significantly below the targets when it comes to training of staff in the area of visa and border management. Up to 2021, 5 578 people were trained in this area, which is approximately half of the target of 11 365. Training activities were among those most negatively affected by the COVID-19 pandemic, with a decrease of people trained to 790 in 2020 compared to 1 224 in 2019 and only a marginal improvement to 901 in 2021. However, the low aggregated target achievement often hides important differences at the Member State level and is partly explained by a few Member States having set overly optimistic targets.

–On strengthening the EU external borders, in 2021 the Member States implemented projects for a value of EUR 239.93 million, including EUR 16.58 million for the special transit scheme for Lithuania, EUR 12.12 million for operating support for borders and EUR 7.50 million for technical assistance. Data at the Member State level show different degrees in the delivery of training to staff on border management compared to the target. Some Member States have already reached their targets, while others have yet to report projects for training. In this area, 34 369 border guards were trained by the end of 2021, virtually achieving the target of 34 603. In total up to 2021, the instruments supported the development or upgrade of 38 901 border control (checks and surveillance actions) infrastructure and means, which is well above the target of 19 902.

–The main lessons learned during the 2014-2020 programming period are shown below.

–There was insufficient cooperation, coordination and strategic steering in the implementation of the ISF with the other EU-level initiatives.

–There is a need for better exploitation of innovation opportunities from EU civil security research.

–There is a need to strengthen performance monitoring in terms of quality, reliability and frequency of the data and to set out common output and result indicators. This is being specifically addressed for the 2021-2027 programming by the new requirements contained in the legal basis and via the joint work of the Commission and national managing authorities on data quality.

ISF

INTERNAL SECURITY FUND

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 341  joint investigation teams and the European Multidisciplinary Platform against Criminal Threats were in action between 2014 and 2021. | 497  projects were implemented in the area of crime prevention between 2014 and 2021. | 107  projects aiming to improve law enforcement information exchange were implemented between 2014 and 2021. | 501  tools were put in place or upgraded to protect critical infrastructure in all sectors of the economy between 2014 and 2021. |
| 111  projects relating to the assessment and management of risks in the field of internal security were implemented between 2014 and 2021. | 3 143  events (expert meetings, workshops, publications, seminars, conferences and online consultations) were organised between 2014 and 2021. |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 1 893.1 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 1 893.1 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The Internal Security Fund (ISF) contributes to ensuring a high level of security in the EU, in particular by preventing and combating terrorism and radicalisation, serious and organised crime and cybercrime, and by preparing for, protecting against and effectively managing security-related incidents, risks and crises.

Challenge

Over recent years, security threats have intensified and diversified in Europe. They have come in the form of terrorist attacks, new types of serious and organised crime and cybercrime.

Taking into account that security has an inherently cross-border dimension and that, beyond internal security challenges, the EU faces complex external threats that no Member State can meet on its own, a strong and coordinated response is required at EU level.

Mission

ISF is set up to contribute to a high level of security in the EU, in particular by preventing and combating terrorism, radicalisation, serious and organised crime and cybercrime, by assisting and protecting victims of crime, and by preparing for, protecting against and effectively managing security-related incidents, risks and crises.

Objectives

The ISF pursues the following specific objectives:

59.to increase the exchange of information among and within EU law enforcement and other competent authorities and other relevant EU bodies, and with non-EU countries and international organisations;

60.to intensify cross-border cooperation, including joint operations, among and within EU law enforcement and other competent authorities in relation to terrorism and serious and organised crime with a cross-border dimension; and

61.to support efforts to strengthen capabilities to combat and prevent crime, terrorism and radicalisation, and to manage security-related incidents, risks and crises, in particular through increased cooperation between public authorities, civil society and private partners across the Member States.

Actions

The ISF supports a broad range of actions in line with the European security agenda, including:

–the purchase/procurement of information and communication technology systems and associated training and testing, along with their improved interoperability and data quality;

–monitoring the implementation of EU law and policy objectives in the Member States in the area of security information systems;

–operations implementing or facilitating the implementation of the EU policy cycle / the European Multidisciplinary Platform Against Criminal Threats;

–support for thematic or cross-thematic networks of specialised national units to improve mutual confidence, the exchange and dissemination of know-how, information, experiences and best practices and the pooling of resources and expertise in joint centres of excellence;

–education and training for relevant law enforcement and judicial authorities and administrative agencies.

Delivery mode

The ISF is implemented though shared management by the Member States and direct/indirect management by the Commission. For the latter, the lead DG is the Directorate-General for Migration and Home Affairs, in close coordination in particular with other shared management DGs.

LINK TO THE 2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK

The ISF has the same policy objectives and implementation methods as its 2014-2020 multiannual financial framework predecessor – the ISF Police strand. Whereas the specific objectives of the 2014-2020 multiannual financial framework programme focused on crime and crisis, the 2021-2027 ISF has more cross-cutting specific objectives.

Impact assessment

The impact assessment of the ISF was carried out in 2018.

For further information please consult: 
<https://europa.eu/!xU94BD>

WEBSITE FOR more information

<https://ec.europa.eu/home-affairs/funding/internal-security-funds/internal-security-fund-2021-2027_en>
 

Legal basis

Regulation (EU) 2021/1149 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 70.0 | 254.1 | 309.9 | 314.9 | 337.2 | 321.7 | 285.4 | 1 893.1 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 0.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0.0 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: – EUR 43.0 million (– 2%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 70.0 | | |  | | --- | | 1 893.1 | | |  | | --- | | 4% | |
| Payments | |  | | --- | | 0.1 | |  | |  | | --- | | 0% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 70.0 | 175.6 |
| Payments | 0.1 | 35.2 |

–The envisaged use of the 2022 and 2023 appropriations will cover initial allocations to Member States (EUR 155 million in 2022 and EUR 232 million in 2023), thematic facilities amounts for specific actions and Union actions (EUR 96.4 million in 2022 and EUR 75 million in 2023) and expenditure for technical assistance (EUR 2.45 million per year).

–Due to the delays in the adoption of the legal basis for 2021-2027 and the time needed for the programming procedure, shared management programmes for the Member States may only be formally approved starting from the second quarter in 2022.

–The Union actions have become a part of the thematic facility covered by the multiannual work programme for 2021-2022. Most of the actions have been pencilled in for 2022, with their implementation commencing in early 2022 and continuing in 2023. Nonetheless, the first activities (open calls for proposals) were initiated at the end of 2021, and are ongoing. Also, as a continuation from previous years, ISF Union actions will cover the area of police cooperation.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 0 | | 0 | Score 0\*: 65  Score 0: 5 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of information and communication technology systems made interoperable in the Member States / with security relevant EU and decentralised information systems / with international databases | 0 |  |  | No results | No data |
| Number of administrative units that have set up new or adapted existing information exchange mechanisms/procedures/tools/guidance for the exchange of information with other Member States / EU agencies / international organisations / non-EU countries | 0 |  |  | No results | No data |
| Estimated value of assets frozen in the context of cross-border operations | 0 |  |  | No results | No data |
| Quantity of illicit drugs seized in the context of cross-border operations by type of product | 0 |  |  | No results | No data |
| Quantity of weapons seized in the context of cross-border operations by type of weapon | 0 |  |  | No results | No data |
| Number of initiatives developed/expanded to prevent radicalisation | 0 |  |  | No results | No data |
| Number of critical infrastructures / public spaces with new/adapted facilities protecting against security-related risks | 0 |  |  | No results | No data |

(\*) % of target achieved by the end of 2021.

–Performance assessment will be provided once the implementation of the 2021-2027 programme has started in earnest and the first performance reports have been received.

2014-2020 multiannual financial framework – ISF Police

The 2014-2020 ISF provided financial resources with the objective of contributing to ensuring a high level of security in the EU, in particular by preventing and combating terrorism and radicalisation, serious and organised crime and cybercrime, and by assisting and protecting victims of crime and preparing for, protecting against and effectively managing security-related incidents, risks and crises.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 1 230.2 | | |  | | --- | | 1 231.0 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 916.8 | |  | |  | | --- | | 74% | |

–For the 2014-2020 period, for ISF Police, EUR 751.56 million was allocated to the national programmes of the Member States. By 2021, Member States had spent EUR 572 million, equivalent to an absorption rate of 76.21%, which can be considered satisfactory. By 31 March 2022, the 2021 annual implementation reports for the ISF were submitted by the Member States.

–In 2017, the ISF Police national programmes received EUR 70 million for the passenger name record system and EUR 22 million for information exchange and the interoperability of information systems. Information exchange projects include the interconnection of national databases and the information technology tools of various national police entities, and the connection of national databases and information technology tools with their EU equivalents with a view to the cross-border exchange of structured data on crime. Examples of data exchange projects include the passenger name record system, the Schengen information system and the Europol information system.

–Member States reported that the COVID-19 pandemic had led to delays in project implementation due to delays in public procurement procedures, travel restrictions, difficulties in hiring staff, construction work due to lockdown and other restrictions relating to COVID-19, especially for in-person activities such as training.

–To support Member States, ISF Police emergency assistance has been made available to address urgent and specific needs. The overall amount granted since 2014 amounts to EUR 12 million. No emergency assistance was granted under ISF Police in 2021.

–In 2021, the vast majority of projects selected under the 2017 annual work programme were closed, while those from 2019 have reached cruising speed. The implementation of Union actions has continued to be impacted by the COVID-19 pandemic, which has resulted in the modification of grants originally approved. New grant agreements and contribution agreements were concluded for actions under the 2020 annual work programme, and their implementation began in principle in early 2022.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Projects of joint investigation teams and European Multidisciplinary Platform against Criminal Threats (including Member States and authorities) | 0 | > 100% | 216 in 2022 | 341 projects compared to 216 | Achieved |
| Protection of critical infrastructures by Member States | 0 | > 100% | 478 | 501 projects compared to 478 | Achieved |

(\*) % of target achieved by the end of 2021.

–Until the end of 2021, ISF-Police has proven an efficient fund getting closer to its general objective to contribute to a high level of security in the EU. In particular, the interim evaluation concluded that the Fund has been shown to be flexible enough to respond to the changing needs which emerged as a consequence of the security crises.

–The ISF supports overall EU policies in the area of internal security, e.g. on police cooperation, preventing and combatting crime, protection of people and critical infrastructures and combatting illicit drugs trafficking. Through Union actions, transnational projects and projects of particular EU interest are being financed. Therefore, the (bi)annual programming for Union actions offers a unique chance to align the actions to most urgent and important needs identified on the ground (e.g., trafficking in human beings, child sexual abuse, and corruption), as well as allowing continuity, for example on the European Crime Prevention Network.

–The 2014-2020 programme was also instrumental in helping to provide technological and knowledge updates for European security. Examples include new detectors for chemical, biological, nuclear, radiological or explosive substances; the automated border control gates in airports and border crossing points; and new technologies used by police forces for investigations involving the dark web.

–In terms of the overall performance of the fund, for many of the indicators set out in the regulation the targets have been either achieved or exceeded. By the end of 2021, ISF Police had attained an absorption rate of 76.21%, which can be considered satisfactory overall. The implementation of the ISF will run until the end of 2023, after the adoption in April 2020 of the Commission’s proposal to extend the implementation period for the money available to Member States under the 2014-2020 home affairs funds by 1 year due to the crisis in Ukraine.

–The main lessons learned during the 2014-2020 programming period include the following.

–There has been insufficient cooperation, coordination and strategic steering in the implementation of the ISF with other EU-level initiatives.

–Better exploitation of innovation opportunities from EU civil security research is needed.

–There is a need for simplification.

–There was insufficient flexibility to respond to changing needs during the programming period.

–There is a need to strengthen performance monitoring in terms of the quality and frequency of data relating to the fund, with more regular and reliable data setting. This is being tackled in particular for the 2021-2027 programming period on the grounds of the new requirements contained in the legal basis and through joint work by the Commission and national managing authorities on data quality.

NUCLEAR DECOMMISSIONING (LITHUANIA)

nuclear decommissioning assistance programme of the Ignalina nuclear power plant in Lithuania

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 43 730  tonnes of material were dismantled from the turbine hall and auxiliary buildings by the end of 2020. | 99%  of the spent fuel assemblies were safely stored away from the reactors by December 2021. | 191  new storage casks were delivered by February 2020, a year ahead of schedule. | 42 703 m3  of radioactive waste from the turbine hall and auxiliary buildings were processed and stored by the end of 2020. |
| 0  incidents were observed over the period 2014-2020. |  |  |  |

(\*) Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 552.0 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 552.0 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The programme supports Lithuania in the decommissioning of the Ignalina nuclear power plant, while keeping the highest level of safety.

Challenge

The decommissioning of a nuclear installation such as a power plant or research reactor is the final step in its lifecycle. It involves activities from shutdown and removal of nuclear material to the environmental restoration of the site. The decommissioning of nuclear plants typically takes 20 to 30 years and implicates technical, technological and financial challenges.

In the case of the Ignalina decommissioning programme, the whole process is even more complex: never before has a large power reactor with a graphite core been dismantled.

In the application of its act of accession to the EU, Lithuania anticipated the shutdown of the two nuclear reactors in Ignalina within the agreed deadlines (2004 and 2009).

The EU committed to provide financial support for the decommissioning, in accordance with approved plans, while keeping the highest level of safety.

EU funding is justified since nuclear safety in Lithuania is essential for nuclear safety in the region and in the EU as a whole. Action at the EU level also has specific added value because it favours the dissemination of critical knowledge and know-how on the dismantling and decontamination processes.

The programme is on track to accomplish the specific objectives set in Council Regulation (Euratom) 2013/1369 with the funding provided in the 2014‑2020 multiannual financial framework. However, during the starting year of the current framework, the programme did not progress as planned; in spite of a generally satisfactory and steady progress of works on the ground, the preparatory activities of key upcoming projects progressed at a slower rate.

Mission

The programme’s general objective is to assist Lithuania in implementing the decommissioning of the Ignalina nuclear power plant, with specific emphasis on managing the related safety challenges, , all while gaining knowledge with regard to the nuclear decommissioning process and the management of radioactive waste resulting from the decommissioning activities.

Objectives

The specific objective of the programme is to carry out the dismantling and decontamination of the equipment and reactor shafts of the Ignalina nuclear power plant in accordance with the decommissioning plan – including the management of radioactive waste resulting from the decommissioning activities – and to continue with the safe management of the decommissioning and legacy waste.

The programme will assist with activities included in the decommissioning plan submitted by Lithuania, in particular with:

1.dismantling and decontamination of the reactor shafts’ top and bottom zones and equipment in accordance with the decommissioning plan;

2.the design for the dismantling and decontamination of the reactor shafts’ central zones (graphite cores). This objective is to be accomplished before 2027, when the relevant authorisations will be granted to carry out the actual dismantling and decontamination, which is scheduled to occur after 2027;

3.safe management of the decommissioning and legacy waste up to interim storage or to disposal (depending on the waste category), including the completion of the waste management infrastructure where necessary;

4.implementation of the building demolition programme;

5.obtaining the decommissioning licence once unit 1 and unit 2 of the Ignalina nuclear power plant are defueled;

6.downgrading of radiological hazards.

Furthermore, the knowledge and experience gained and the lessons learnt under the programme with regard to the decommissioning process shall be disseminated among EU stakeholders, thus enhancing the EU added value of the programme.

Actions

The actions to be funded by the Ignalina programme are within the scope of the decommissioning plan presented to the Commission. The actions focus on activities related to the delivery of the general and specific objectives and with the highest EU added value, namely the removal of radiological hazards and the creation and dissemination of relevant knowledge. When preparing the multiannual work programme, the Commission, in close cooperation with Lithuania, will consider distributing the available funds as per the priorities identified in the legal basis.

Delivery mode

The programme is implemented under indirect management, entrusted to the European Bank for Reconstruction and Development and the Central Project Management Agency (CPMA), a national agency in charge of the implementation of decommissioning of Ignalina nuclear power plant in Lithuania.

LINK TO THE 2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK

The decommissioning of the Ignalina nuclear power plant has received EU support since 2001 under various instruments. The EU assistance in the 2021-2027 multiannual financial framework is the continuation of the long-term programme – which is scheduled to extend until 2038 – with the additional objective to disseminate knowledge on the decommissioning process to all Member States. The activities funded in the 2021-2027 period will be subject to a maximum EU co-financing rate of 86%. This rate was not explicitly set previously.

Impact assessment

The impact assessment of the Nuclear Decommissioning Assistance Programme was carried out in 2018.

For further information please consult: 
<https://europa.eu/!jv63Rb>

WEBSITE FOR more information

<https://europa.eu/!bC66CU>

Legal basis

Council Regulation (EU) 2021/101.

Implementation and performance

Budget implementation

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 72.5 | 98.9 | 68.8 | 74.6 | 74.7 | 80.1 | 82.4 | 552.0 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities |  |  |  |  |  |  |  |  |

(\*) Only Article 15(3) of the financial regulation.

Financial programming: + 0.0 million (+ 0%) compared to the legal basis.

Cumulative implementation rate at the end of 2021:

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | Budget | Implementation rate |
| Commitment | |  | | --- | | 72.5 | | |  | | --- | | 552.0 | | |  | | --- | | 13% | |
| Payments | 0 |  | 0% |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 72.5 | 72.5 |
| Payments | 0.0 | 0.0 |

–The 2021 commitments reflect the contribution agreement signed with the National Agency for the Implementation of Decommissioning of Ignalina Nuclear Power Plant for EUR 62.5 million, and the planned signature of the contribution agreement for the implementation of the Ignalina programme with the European Bank for Reconstruction and Development for EUR 10 million. This allocation of funds will sustain the ongoing progress of the decommissioning programme in Lithuania.

–Decommissioning projects are, in many cases, highly complex from the procurement and implementation point of view and extend over a long period. This explains the long interval between the commitments and the payments of the programme.

–During 2022, the last fuel assemblies are planned to be transferred from spent pools to storage casks and then to the interim spent fuel storage facility. This will open the way to the dismantling of the reactor core systems, a challenge that is the first of its kind.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| 0 | 0 | Score 0: 72.5 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions having gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

DG Energy took the gender equality perspective into account in our financing by Council Regulation (EU) 2021/101. Nonetheless, we determined that nuclear decommissioning is the primary and sole objective of our programme and, as such, has no significant impact on gender equality, even though some minor indirect impacts might occur.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Very low radioactivity waste disposed (m3) | 0 | 0% | 29 020 in 2030 | 0 compared to a target of 29 020 | Deserves attention |
| Low and intermediate radioactivity waste disposed (m3) | 0 | 0% | 9 202 in 2030 | 0 compared to a target of 9 202 | Deserves attention |
| Metal dismantled (tonnes) | 0 | 3% | 4 341 in 2028 | 106 compared to a target of 4 341 | Deserves attention |

(\*) % of target achieved by the end of 2021.

–The decommissioning of the less radioactive areas of the Ignalina plant nears completion. The programme will now enter the phase of dismantling inside the reactor buildings, a challenge that is the first of its kind due to the large graphite-filled reactor cores. The contracts to design dismantling options should be signed in 2022 and are currently encountering delays.

–Preparatory design activities for dismantling in the reactor building have encountered challenges that have not significantly impacted the performance under the 2014-2020 multiannual financial framework, but could result in delays for the post-2020 stages of the programme. In spite of generally satisfactory and steady progress of works on the ground, the preparatory activities of key upcoming projects (procurement for the design of the dismantling of the reactor core) progressed at a slower rate.

–Some activities are going slower than planned, as shown in the results of the key performance indicators.

–The disposal of very-low-level radioactive waste did not start in 2021 as initially planned, because the landfill repository was completed in 2021 and its operations will only start in 2022. With the start of the landfill operations, it is expected that the pace of disposal will progressively increase based on a learning curve. 

–The disposal of low and intermediate radioactive waste did not start in 2021. The main reason is that the construction of the near-surface repository has not yet started due to the legal action of an excluded tenderer, which was resolved at the end of 2021.

–The progress in the dismantling of the reactor shafts (measured in tonnes of metal dismantled) is going slower than the initial plan, because the nuclear regulator permit was received later than scheduled. There has been good progress since the start of the works and the new equipment to be received will help accelerate the works. There is considerable progress since the start of works, but the rate of dismantling should increase in order to achieve the overall objectives.

2014-2020 multiannual financial framework – Nuclear Decommissioning (Lithuania)

The programme supports Lithuania in the decommissioning of the Ignalina nuclear power plant, while keeping the highest level of safety.

Budget implementation

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitment | |  | | --- | | 450.8 | | |  | | --- | | 450.8 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 146.2 | |  | |  | | --- | | 32% | |

–Decommissioning projects are, in many cases, highly complex from the procurement and implementation point of view and extend over a long period of time. This explains the interval between the commitments (which have reached 100%) and the payments (which have reached only 32%) of the programme.

–Nevertheless, when including the payments made during the period 2014-2020 on the 2007-2013 commitments, the total payments made for the Ignalina programme are EUR 430 million, which is in line with the commitments made for the 2014-2020 period.

–The Ignalina programme continued to make effective progress in decommissioning the nuclear power plants in 2021. The cost of the work carried out since 2014 is within budget.

–Progress at the site was affected by the COVID-19 crisis in 2020, although the measures implemented by the decommissioning operator ensured that activities could continue safely and reduced the impact on the project’s milestones. During 2000, the EU supported the salaries of the workers in these difficult times.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Removal of spent fuel assemblies from the unit 1 and unit 2 spent fuel ponds | 0 | 99% | 15 630 in 2022 | 15 524 out of 15 630 | On track |

(\*) % of target achieved by the end of 2021.

–The progress against the 2014-2020 multiannual financial framework programme’s objectives is generally satisfactory.

–The dismantling and decontamination of the equipment and reactor shafts is being achieved ahead of schedule. The cores of both reactor units 1 and 2 are now completely defueled – a result achieved ahead of schedule. In addition, the removal of spent fuel assemblies has reached 99% of the final target.

–The overall performance concerning the dismantling in the turbine hall and other auxiliary systems was satisfactory, with 43 730 tonnes of material dismantled from the turbine hall and 42 703 m3 of processed waste by the end of 2020 from the turbine hall and auxiliary buildings (against a target of 42 314 m3).

–No safety incidents were registered during 2014-2020, showing that the objective of safely maintaining the reactor units has been consistently achieved. Although this is no longer a specific objective for the 2021-2027 multiannual financial framework, no safety incidents were reported in 2021.

–The delays listed above could impact the end date of the programme; these will need a reassessment of the baseline of the programme schedule.

–The dismantling of the Ignalina reactors is a challenge that is the first of its kind. In accordance with the updated performance baseline, the programme completion date is still 2038.

NUCLEAR DECOMMISSIONING

FINANCIAL PROGRAMME FOR THE DECOMMISSIONING OF NUCLEAR FACILITIES AND THE MANAGEMENT OF RADIOACTIVE WASTE (BULGARIA, SLOVAKIA AND THE JOINT RESEARCH CENTRE)

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 29 448  tonnes of metals were originated from the dismantling of the turbine hall in the Kozloduy programme by the end of 2020. | 134 124  tonnes of conventional recyclable material were dismantled in the Bohunice programme by the end of 2020. | 392  reinforced-concrete containers of radioactive waste were produced in the Kozloduy programme by the end of 2020. | 1 800  tonnes of metals were recycled in the Bohunice programme in 2021. |

(\*) Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance where results often follow only after completion of the programmes.

Budget for 2021-2027

(EUR million)

|  |  |
| --- | --- |
| Financial programming | 466.0 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 466.0 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The programme provides funding for the decommissioning of the Kozloduy and Bohunice nuclear facilities and the nuclear installations owned by the European Commission, as well as the management of radioactive waste. The programme also aims to take advantage of synergies and knowledge sharing, with a view to ensure dissemination of knowledge and return of experience in all relevant areas such as research and innovation, regulation and training, and to develop potential EU synergies.

Challenge

The decommissioning of a nuclear installation such as a power plant or research reactor is the final step in its lifecycle. It starts with shutdown and then proceeds with the removal of nuclear materials, decontamination, dismantling and demolishing until the environmental restoration of the site. The aim in nuclear decommissioning is the progressive removal of hazards inherently associated with the installation. The corresponding phasing out of the necessary safety measures and associated costs is done in a series of steps, mainly because the removal of major batches of radioactive materials is carried out over several stages.

In accordance with their acts of accession to the EU, Bulgaria and Slovakia anticipated the shutdowns of units 1 to 4 in the Kozloduy nuclear power plant and of units 1 and 2 in the Bohunice V1 nuclear power plant, respectively. The EU committed to provide financial support for the decommissioning, in accordance with approved plans, while keeping the highest level of safety. The financial support provided under the 2021-2027 multiannual financial framework will bring both the Kozloduy and Bohunice programmes to completion.

The Joint Research Centre (JRC) was established under the Euratom Treaty and site agreements were signed between 1960 and 1962 between the European Economic Community, Belgium, Germany Italy and the Netherlands. In the cases of Italy and the Netherlands, the national nuclear installations were transferred to the Community. An infrastructure geared to nuclear research and comprising new installations was put in place at the four sites. Some of these installations are still in use today, while others have been shut down – in some instances more than 20 years ago – and have mostly become obsolete. The JRC, as the license holder, must manage its historical nuclear liabilities, decommission its obsolete nuclear installations and safely manage the resulting spent fuel and radioactive waste.

The programme also has specific added value because it facilitates the dissemination of critical knowledge and know-how on the decommissioning of nuclear facilities.

Mission

The general objective of the programme is to provide funding for the decommissioning of these nuclear facilities and the management of radioactive waste, in line with the needs identified in the respective decommissioning plans.

Objectives

In addition to creating knowledge on the nuclear decommissioning process and the management of the resulting radioactive waste, the programme aims to:

1.assist Bulgaria and Slovakia in implementing the Kozloduy programme and the Bohunice programme, respectively, including the management and storage of radioactive waste in line with the needs identified in the respective decommissioning plans, with a specific emphasis on managing the related safety challenges;

2.support the JRC decommissioning and waste management programme.

Actions

The Kozloduy and the Bohunice programmes will fund activities within the scope of the respective decommissioning plans related to the delivery of the general and specific objectives and with the highest EU added value, namely the removal of radiological hazards.

During the 2021-2027 period, in Ispra the gradual shift from safe conservation and pre-decommissioning to relatively large decommissioning and waste management tasks will continue, enabled by the relevant authorisations and licenses released by the safety authority and by the start of the operation of new supporting facilities. In Karlsruhe, the requalification and removal of legacy low-level waste and glove boxes and the optimisation of spent fuel inventories will continue. In Petten, a multi-year campaign to dispose of the nuclear material/waste batches owned by JRC will be launched. In Geel, an effort to reduce/optimise the inventories of nuclear materials owned by the JRC and to remove waste will be implemented, in agreement with the licensing authority.

The JRC will lead the efforts to develop ties and exchanges among EU stakeholders on nuclear decommissioning, in order to ensure the dissemination of knowledge and the sharing of experience in all relevant areas, such as research and innovation, regulation and training and developing potential EU synergies.

Delivery mode

The Kozloduy and Bohunice programmes will be implemented under indirect management, entrusted to the European Bank for Reconstruction and Development and the Slovak Innovation and Energy Agency for Bohunice.

The JRC’s nuclear decommissioning and waste management programme is implemented in direct management by the Commission (JRC).

LINK TO THE 2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK

Under the 2021-2027 multiannual financial framework, the Kozloduy and Bohunice programmes continue the efforts of their 2014‑2020 framework predecessors. The activities funded in the 2021-2027 period will be subject to a maximum EU co-financing rate of 50%. This rate was not included previously.

The programme was previously performed under direct management under a different financial instrument, but is now part of Council Regulation (Euratom) 2021/100. Since the beginning of the programme, the Commission has regularly reported to the European Parliament and the Council of the European Union on its progress and status.

Impact assessment

The impact assessment of the programme was carried out in 2018.

For further information please consult: 
<https://europa.eu/!UN93UP>

WEBSITE FOR more information

Decommissioning of nuclear facilities:

<https://ec.europa.eu/energy/topics/nuclear-energy/decommissioning-nuclear-facilities_en>

Joint Research Centre:

<https://joint-research-centre.ec.europa.eu/scientific-activities-z/nuclear-waste-management-and-decommissioning_en>

Legal basis

Council Regulation (Euratom) 2021/100.

Implementation and performance

Budget implementation

Budget programming (EUR million):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 69.2 | 43.9 | 57.2 | 62.3 | 70.5 | 73.1 | 89.8 | 466.0 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities |  |  |  |  |  |  |  |  |

(\*) Only Article 15(3) of the financial regulation.

Financial programing: + 0 million (+ 0%) compared to the legal basis

Cumulative implementation rate at the end of 2021 (EUR million):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | Budget | Implementation rate |
| Commitment | |  | | --- | | 69.1 | | |  | | --- | | 466.0 | | |  | | --- | | 15% | |
| Payments | |  | | --- | | 5.8 | |  | |  | | --- | | 1% | |

Voted budget implementation in 2021 (EUR million):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 69.1 | 69.2 |
| Payments | 5.8 | 8.4 |

–In 2021 two delegation agreements were signed: one with the European Bank for Reconstruction and Development for the implementation of the Kozloduy programme with a value of EUR 9.0 million and another with the Slovak Innovation and Energy Agency with a value EUR 27.4 million for the implementation of the Bohunice programme. In addition, EUR 80 000 will be dedicated to a consultancy assessment performed under direct management. The cost of the work carried out during 2021 is within budget.

–The decommissioning projects are, in many cases, highly complex from the procurement and implementation point of view and extend over a long period of time. This explains the long interval between the commitments and the payments of the programme.

–Expenditure in the programme is in line with the financial programming, except that expenses in the commissioning of auxiliary facilities have been significantly lower than expected, due to the delay of the grouting station – and expenses in radiation protection have been significantly larger than planned, as the relaxation of COVID-19 constraints allowed more fieldwork. The rest of the activities in waste and nuclear material management, decommissioning, safe conservation and utility services, general support and horizontal activities and others have progressed as planned.

Contribution to horizontal priorities

EU budget contribution in 2021 (EUR million):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 0.4 | | 0 | Score 0: 69 |

(\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions having gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

The gender equality perspective was considered in our financing by Council Regulation (EU) 2021/100. Nonetheless, we determined that nuclear decommissioning is the primary and sole objective of our programme and, as such, has no significant impact on gender equality, even though some minor indirect impacts might occur.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Kozloduy – radioactive waste stored or disposed of (tonnes) | 0 | 3% | 10 240 in 2030 | 355 compared to 10 240 | On track |
| Kozloduy – metal dismantled (tonnes) | 0 | 5% | 10 686 in 2030 | 539 compared to 10 868 | On track |
| Bohunice – very low-level radioactive waste disposed of (tonnes) | 0 | 2% | 5 373 in 2026 | 100 compared to 5 373 | Deserves attention |
| Bohunice – low-level radioactive waste disposed of (tonnes) | 0 | 12% | 1 943 in 2026 | 225 compared to 1 943 | Deserves attention |
| Bohunice – metal dismantled from reactor buildings and components (tonnes) | 0 | 9% | 31 792 in 2026 | 2 951 compared to 31 792 | On track |
| JRC Ispra – radioactive waste processed (tonnes) | 0 | 5% | 3 725 in 2027 | 198 compared to 3 725 | On track |

(\*) % of target achieved by the end of 2021.

–Despite some delays at the beginning of the implementation, the Kozloduy programme is making good progress with the dismantling and radioactive waste management. However, the lagging rate of implementation in key projects and the complex interdependency of the activities on the critical path point to an increased risk of delay in the overall programme.

–The programme has received the necessary equipment and is prepared for the decontamination and dismantling of the reactors’ main pipes, pumps and valves. The programme also made progress in dismantling the auxiliary buildings. The plasma melting facility is now in industrial operation and the construction works are underway for the national disposal facility, which will receive large quantities of radioactive waste from 2024.

–The similar designs of the Kozloduy and Bohunice reactors provide an opportunity to share experiences, methods and tools, thus reducing risks and cost. The decontamination of the primary circuits of Kozloduy followed the experience from Bohunice, by reusing the decontamination equipment transported from the Bohunice site.

–In accordance with the updated performance baseline, the completion date of the Kozloduy programme remains 2030. However, the risk of postponement of the end date of the overall programme is increasing, as some key projects are delayed or at high risk of being delayed. For this reason, the Commission has requested a stress-test of the overall schedule, including the identification of risks and mitigation measures.

–The Bohunice programme has entered the last phase of the decommissioning process. The dismantling of the large components in the reactor building is underway. After the removal of all steam generators, the decommissioning operator began the segmentation and packaging of the reactor’s pressure vessels, where the nuclear core was enclosed.

–The decommissioning operator carried out a thorough review of the scheduling of the remaining tasks in Bohunice, which resulted in a modification in the end date of the programme from 2025 to 2027. This does not involve additional costs. The schedule remains very challenging and will need to be closely monitored.

–Regarding the disposal of very low and low radioactive waste, the results in 2021 are behind schedule. For the very low radioactive waste, the reason is the delay in the removal of concrete from the reactors’ shafts due to a necessary rescheduling of activities (with no impact in the critical path of the programme). In the case of the low radioactive waste, the delay is due to the higher volume of decontaminated metallic materials compared to the plan.

–The nuclear decommissioning and waste management programme of the JRC entails a complex set of specific activities and projects. Various levels of advancement/implementation characterise the situation at the JRC’s four nuclear sites.

–During the 2021-2027 period, Ispra will be the main site for the JRC decommissioning and waste management activities. The objectives include safe conservation, pre-decommissioning, decommissioning and waste management targets covering a variety of obsolete large installations and waste batches.

–The COVID-19 pandemic and other unanticipated circumstances – such as the poor performance of the selected contractor of the grouting station – have impacted the construction of support facilities in Ispra. This will delay waste management and, eventually, decommissioning activities. Pre-decommissioning activities and license applications preparations continue to progress as planned in Ispra and the other sites with operating infrastructure.

–For the other sites (Karlsruhe, Petten and Geel), the objectives are largely focused on legacy waste management, the dismantling of obsolete equipment and relatively small facilities and the definition of plans and teams to implement future decommissioning and waste management activities.

–In Karlsruhe, Petten and Geel, most nuclear facilities are in operation, performing nuclear research and development activities in the frame of the EURATOM research and training programme. Because of this, the decommissioning of large installations is not being implemented yet. No disused equipment or legacy radioactive waste has been removed, stored or disposed of in the operating sites of Geel, Karslruhe and Petten.

  

MULTIANNUAL FINANCIAL FRAMEWORK 2014-2020 – NUCLEAR DECOMMISSIONING ASSISTANCE PROGRAMMES IN BULGARIA AND SLOVAKIA

The programme provides funding for the decommissioning of the nuclear facilities of Kozloduy and Bohunice and the management of radioactive waste.

Budget implementation

Cumulative implementation rate at the end of 2021 (EUR million):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | Budget | Implementation rate |
| Commitment | |  | | --- | | 518.4 | | |  | | --- | | 518.4 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 313.6 | |  | |  | | --- | | 60% | |

–The figures relate only to the past implementation of the Kozloduy and Bohunice programmes. The JRC decommissioning programme was performed under a different financial instrument until 2021 and is not reported here.

–Decommissioning projects are, in many cases, highly complex from the procurement and implementation point of view and extend over a long period of time. This explains the interval between the commitments and the payments of the programme.

–Nevertheless, when including the payments made during the 2014-2020 period on the 2007-2013 commitments, the total payments made for the Kozloduy and Bohunice programmes are EUR 859 million, which represents 166% of the committed amounts for the 2014-2020 period.

–The Kozloduy and Bohunice programmes continued to make effective progress in decommissioning their nuclear power plants in 2021. Dismantling activities are ongoing and the recovered materials are being recycled or treated as radioactive waste. The cost of the work carried out since 2014 is within budget.

–Progress at the two sites was affected by the COVID-19 crisis, which affected the supply chain of equipment and limited access by foreign experts and contractors to the sites. Measures to ensure that activities could continue safely significantly reduced the short-term impact on project milestones.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Kozloduy – metal from dismantling in reactor buildings (tonnes) | 0 | > 100% | 1 200 in 2020 | 1 487 out of 1 200 | On track |

(\*) % of target achieved by the end of 2021.

–During the 2014-2020 multiannual financial framework, the Kozloduy and Bohunice programmes progressed steadily towards the decommissioning end state, in accordance with their respective decommissioning plans, while maintaining the highest level of safety. The process will continue under the 2021-2027 multiannual financial framework.

–The programmes continued to reduce nuclear and radiation safety risks related to the reactors. However, significant delays occurred during the implementation of key projects, which impacted the implementation of the overall programme and, in the case of Bohunice, provoked the rescheduling of the end date of the programme.

–The decommissioning of the Kozloduy power plant in Bulgaria has made significant progress, including the following.

–The plasma melting facility, a first-of-its-kind facility for the high-performance volume reduction of radioactive waste, performed its fourth and last operational campaign in 2021 and will proceed with industrial operation.

–The dismantling of equipment in the turbine hall – a major milestone of the first specific objective –was completed in 2019.

–On the other hand, the dismantling of large components in the reactor building and the management of the decommissioning waste remain behind schedule, due to a delay in obtaining the approval of the nuclear regulator and the impact of COVID-19 in 2020.

–The Bohunice programme in Slovakia is the most advanced of the three decommissioning programmes supported by the EU. It will be the first completed decommissioning programme for its type of reactor.

–The dismantling of the large components has progressed substantially and the fragmentation of one of the two reactors’ pressure vessels was completed in 2021.

–The 12 steam generators, which are each made of 145 tonnes of steel, were transferred to the former turbine hall in 2019 and the cutting of the first steam generator was completed in June 2020.

–On the other hand, the slowdown of the conventional waste production – due to the impact of COVID-19 and of the lower-than-planned quantity of material to be removed from the site – led to a result of only 89% of the target by the end of 2020.

EDF

EUROPEAN DEFENCE FUND

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |
| --- | --- | --- |
| EUR 500 million  has been allocated to the EDIDP to support – together with the Member States – the development of defence systems and technologies to be integrated into commonly agreed capabilities. | 25  Member States are countries of origin of the companies participating in proposals submitted to the EDIDP calls in 2020. | 35%  is the rate of small and medium-sized enterprises participating in selected proposals in the consortium in the context of the 2020 EDIDP calls. |
| EUR 90 million  was allocated to support joint defence research projects following calls for proposals published between 2017 and 2019 under the preparatory action on defence research. | 26  Member States and Norway are countries of establishment of entities involved in proposals submitted between 2017 and 2019 under the preparatory action on defence research. | 889  entities submitted 127 proposals in response to calls under the preparatory action on defence research between 2017 and 2019, of which 22% applicants were small and medium-sized enterprises. |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 7 553.0 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities in 2021 | 23.7 |
| Total budget for 2021-2027 | 7 576.7 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The European Defence Fund (EDF) was launched as the cornerstone of the European defence action plan. The fund is inextricably linked to the EU’s initiatives on a more integrated European defence market. By encouraging cooperation, the EU can help maximise the output and quality of Member States’ investment in defence. The EDF will bring EU added value by incentivising joint research on and the development of products and technologies in the area of defence to increase the efficiency of public expenditure and contribute to the EU’s operational autonomy. The EDF should complement rather than substitute national funding already used for this purpose, acting as an incentive for Member States to cooperate and to invest more in defence.

Challenge

The EU defence sector is essential for the future of the EU. It plays a key role in ensuring the EU’s strategic sovereignty and its capacity to act as a security provider. Yet the sector faces challenges that call into question the preservation of its competitiveness and its technological edge. These may weaken the technological advantage of the sector and hamper its ability to develop defence systems that are crucial for the security of the EU and its Member States.

Tackling these challenges calls for action at the EU level for a number of reasons.

–The costs of defence systems are rising, and include a high proportion of research and development costs. Combined with the significant cuts made to EU Member States’ defence budgets in the near past, the development of new high-end defence systems is increasingly beyond the capacity of individual Member States.

–Moreover, cooperation in the defence sector remains very weak. European collaborative equipment expenditure stands at only 18% of total defence spending for equipment procurement, against an ambition of 35%. Only 7.3% of total defence research and technology development is collaborative, against an ambition of 20%.

–Finally, the European defence industry and markets remain fragmented along national borders, with unnecessary duplications despite limited investment.

Mission

The EDF seeks to foster collaboration amongst the Member States, overcome fragmentation and enhance the competitiveness and the technological sovereignty of the European defence industry.

Objectives

The EDF has the following specific objectives: (1) support collaborative defence research that could significantly boost the performance of future capabilities throughout the EU; and (2) support collaborative development of defence products and technologies consistent with defence capability priorities commonly agreed by Member States. The fund aims at providing consistent support throughout the full research and development cycle.

Actions

The EDF provides financial support primarily in the form of grants. In principle, only actions undertaken on the basis of cooperation between at least three entities from at least three different Member States are eligible.

The cross-border participation of small and medium-sized enterprises and mid-capitalisation companies is further strengthened by the bonus system and the relevant award criterion with regard to the participation of small and medium-sized enterprises provided for by the EDF regulation and by the introduction of dedicated call categories in the annual work programmes.

To enhance the sector’s innovation capacity and increase the emergence of new products and technologies, the EDF also supports disruptive defence technologies, taking into account their specificities, such as increased risk of project failure and the potential of attracting non-traditional players to the defence sector. In accordance with the EDF regulation, 4-8% of the EDF’s overall budget is to be dedicated to research and development in disruptive technologies.

Delivery mode

The EDF is implemented through direct management by the Directorate-General for Defence Industry and Space. On an ad hoc basis, and if justified, specific initiatives may be implemented under indirect management.

LINK TO THE 2014-2020 multiannual financial framework

The EDF will build and expand on the experience acquired through two precursor programmes implemented under the 2014-2020 multiannual financial framework, namely the preparatory action on defence research and the European defence industrial development programme (EDIDP).

The design of the fund largely builds on the architecture of these two 2014-2020 programmes, but it will be implemented as one single fund. The EDF will lead to better exploitation of defence research results, bridging the gap between the research and the development phases and promoting all forms of innovation, including support for disruptive defence technologies. It will encourage small and medium-sized enterprises and entities not yet involved in defence-specific research and development to participate in the programme and to be involved in cross-border cooperation.

Impact assessment

The impact assessment of the EDF programme was carried out in 2018.

For further information please consult 
<https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52018SC0345>

WEBSITE FOR more information

[The European Defence Fund (EDF) (europa.eu)](https://ec.europa.eu/defence-industry-space/eu-defence-industry/european-defence-fund-edf_en)

Legal basis

Regulation (EU) 2021/697 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 945.7 | 945.7 | 945.7 | 898.0 | 1 072.2 | 1 246.3 | 1 499.4 | 7 553.0 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again \*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 23.7 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 23.7 |
| Total | 969.4 | 945.7 | 945.7 | 898.0 | 1 072.2 | 1 246.3 | 1 499.4 | 7 576.7 |

(\*) Only Article 15(3) of the financial regulation.

Financial programing: - EUR 400 million (- 5%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 969.4 | | |  | | --- | | 7 576.7 | | |  | | --- | | 13% | |
| Payments | |  | | --- | | 1.4 | |  | |  | | --- | | 0% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 945.7 | 945.7 |
| Payments | 1.3 | 15.6 |

–Following the adoption of the EDF regulation in 2021, the first annual EDF work programme (for 2021) was adopted in June 2021. In addition, the first part of the 2022 annual EDF work programme was adopted to complement the 2021 budget envelope. This will serve to kick-start ambitious EDF projects related to large-scale and complex defence capabilities.

–The first EDF calls for proposals were published in June 2021. Of these, 11 calls target research actions and 12 target development actions, addressing 37 topics. The total budget allocated to these calls exceeds EUR 1.2 billion, of which EUR 930.3 million comes from the 2021 budget and EUR 290 million comes from the 2022 budget. In this context, it is expected that grant agreements will be signed in 2022.

–The COVID-19 crisis had a substantial impact on the procedures and the working arrangements of the staff involved in the evaluations and grant agreement preparations for the EDF precursor programme. However, the crisis did not affect the preparation of the 2021 EDF work programme, with the publication of the relevant calls implemented on time. Furthermore, the COVID-19 crisis will not impact the timing of the preparation and adoption of the 2022 EDF work programme.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality \* |
| |  | | --- | | 0 | | - | Score 0: EUR 945.7 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Collaborative research: funded actions | 0 |  |  | No results | No data |
| Collaborative research: share of recipients that did not carry out research activities with defence applications before the entry into force of the fund | 0 |  |  | No results | No data |
| Collaborative capability development: funded actions that address the capability shortfalls identified in the capability development plan | 0 |  |  | No results | No data |
| Job creation/support: defence research and development employees supported in funded actions | 0 |  |  | No results | No data |

(\*) % of target achieved by the end of 2021.

–The EDF fosters the competitiveness and innovation capacity of the European defence technological and industrial base by supporting collaborative research and development action.

–Given that the fund is in its early days of implementation, no implementation report is yet available. In the same vein, given that the indicators are set at the level of funded projects, and no projects have been selected for funding at this stage of implementation, it is not yet possible to report on the fund’s progress towards its objectives.

–Following the closure of the first 23 EDF calls for proposals in December 2021, 142 proposals were submitted. Of these, more than 40% were in relation to the non-thematic calls dedicated to small and medium-sized enterprises and to disruptive defence technologies. In total, 1 111 different entities from 26 Member States and Norway, approximately 50% of which are small and medium-sized enterprises, participated in the submitted proposals.

  

2014-2020 multiannual financial framework – European defence industrial development programme and preparatory action on defence research

The EDIDP was adopted in July 2018 for a duration of 2 years. The aim of the programme is to support the competitiveness and the innovative capacity of the defence industry in the EU, specifically in the development of prototypes, by supporting development projects jointly carried out by companies.

The programme helps create a collaborative approach between defence industry players in the Member States. The financial contribution by the EU unlocks development projects that otherwise would not have started due to their sizeable financing needs or the elevated technological risks involved, thus leading to additional collaborative defence development projects.

The preparatory action on defence research for 2017-2019 supports collaborative defence research projects and technological development in Europe by providing grants. The projects under this action are testing mechanisms to prepare, organise and deliver a variety of EU-funded cooperative defence research and technology development activities, aiming to improve the competitiveness and innovation of the EU defence industry and to stimulate cooperation.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 500.0 | | |  | | --- | | 500.0 | | |  | | --- | | 100% | |
| Payments | |  | | --- | | 375.8 | |  | |  | | --- | | 75% | |

–The implementation of the EDIDP is ongoing. During its life span, which ran from 2019 to 2020, the EDIDP committed EUR 500 million, thus achieving a 100% cumulative implementation rate.

–Both of the EDF precursor programmes (the EDIDP and the preparatory action on defence research) were fully implemented during the COVID-19 crisis. The crisis affected the evaluation of the 2020 EDIDP calls. The pandemic’s impact, combined with the complexity of processes, led to the prolongation of several EDIDP administrative processes (e.g. informing applicants of the outcome of the evaluation). To support the defence industry during the COVID crisis, the pre-financing level of the proposals awarded under the EDIDP’s 2019 calls was increased to up to 90% of the maximum grant, which in turn had an impact on the programme’s rate of payment execution.

–Following the 2020 EDIDP calls for proposals, 63 proposals were received. This marks an increase of more than 50% compared to the 2019 calls, when 40 proposals were received. Grant agreements for 26 high-quality projects were signed before the end of 2021, and will be supported with EUR 158.2 million. These projects are directly managed by Commission services. In addition, the management of two projects that are strategic enablers for the European defence industry was entrusted to the Organisation Conjointe de Coopération en matière d’Armement, with a total budget of almost EUR 133 million, following the conclusion of the contribution agreements.

–In total, following the 2019 and 2020 EDIDP calls for proposals, 44 grants received funding. The pre‑financing payments for these grants account for almost the total amount of payment appropriations used up to now, i.e. EUR 376 million. This represents a 75% rate of payment execution. Due to the substantial oversubscription (funding could be provided to only 16 out of 40 proposals received in 2019 and 26 out of 63 proposals received in 2020), the total budget allocated to the 2019 and 2020 calls was fully committed.

–The high payment rate at this stage of project implementation is due to the Commission’s decision to increase the pre-financing level awarded up to 90% of the maximum EDIDP grant. The aim of this initiative was to support the defence industry in the context of the COVID-19 crisis.

–The implementation of the preparatory action on defence research is ongoing. In total, 10 calls for proposals were published in 2017, 2018 and 2019. This resulted in the selection of 18 projects. Furthermore, in the 2019 call the Commission launched, for the first time, an open call on future disruptive defence technologies. The objective of the call was to fund cutting-edge and high-risk / high-impact research that could lead to a disruptive impact in a defence context. This resulted in the funding of three promising projects, beginning at the end of 2020 and running for approximately 2 years. The projects aim respectively to set up an experimental demonstrator for novel radar camouflage; to implement a neural network based on spin-based nanodevices for radiofrequency processing; and to use homomorphic encryption to allow the use of confidential data for artificial intelligence technologies.

Performance assessment

Key performance indicators

–The EDIDP is designed to target the problems of the defence sectors identified in the context of the programme’s ex ante evaluation, namely: (1) the low level of investment in innovative defence programmes; and (2) the fragmentation of the defence industry and limited cooperation between undertakings. Both problems may pose substantial risks for the competitiveness of the EU defence industry in the longer term. The EDIDP work programme was geared towards fostering the competitiveness, efficiency and innovation capacity of the European defence industry, supporting and leveraging cooperation and ensuring that results from the research phase are better exploited in the following phases of development.

–After comparison of the EDIDP’s milestones with the results of the 2019 and 2020 calls, the following initial conclusions can be drawn.

–The EDIDP calls have boosted cooperation between the Member States and their undertakings to a level in excess of the milestones set out. The calls for proposals were structured in close cooperation with the Member States to meet their requirements in terms of defence systems and technologies needed for their defence capabilities. This approach paid off in 2019, leading to larger consortia populated by entities established in more Member States than anticipated. This positive trend continued in 2020, with the consortia comprising some 16 entities from seven Member States.

–The EDIDP contributed to the coherence of the EU’s defence initiatives and to advancing the priorities defined at the EU level. 80% of the 2019 budget was allocated to projects with a link to permanent structured cooperation projects, i.e. joint projects initiated by Member States. In 2020, 14 out of the 26 projects supported have a link to permanent structured cooperation, and these projects are funded with a total of EUR 97.7 million. The EDIDP regulation promoted this link by awarding a bonus to such projects to increase the EU funding rate.

–The EDIDP regulation also focused on supporting small and medium-sized enterprises, i.e. the critical part of the European defence industry. In 2019, the target number of small and medium-sized enterprises involved in projects was exceeded by nearly 40%, with 83 such enterprises participating against a milestone of 60. The 2019 EDIDP work programme included a call that was open to consortia composed only of small and medium-sized enterprises, from which 21 enterprises received funding. This trend continued in 2020, with support being provided to 144 small and medium-sized enterprises following the 2020 calls (16 of them in a call that was open to consortia composed only of such enterprises). 35% of the entities in projects funded by EDIDP in 2020 are small and medium-sized enterprises, while 30% of the total funding is dedicated to them. The regulation promoted this involvement by awarding an increase in the EU funding rate for projects that invest in cross-border cooperation with small and medium-sized enterprises.

–Research and development entities maintain a high level of interest for support from the EDIDP. Furthermore, the share of the projects funded that involve prototyping, which is a specifically sensitive phase of project development, exceeded expectations/targets by 6% and 15 % in 2019 and 2020, respectively. This indicates the programme’s increasing focus on supporting advanced stages in the development of defence systems or technologies.

–The preparatory action on defence research has contributed significantly to fostering collaborative defence research and technological development in Europe. The core of the preparatory action is a small-scale research programme with competitive calls for proposals defined in close consultation with the Member States.

–Although most of the projects under this action are still ongoing, the following initial conclusions can be drawn.

–Calls attracted applicants that were not previously active in defence research.

–Funded projects included the participation of small and medium size enterprises in 15 consortia.

–The action brought together stakeholders from the private sector (64%), research centres (23%) and academia (7%), with 22% of all applicants in the selected proposals being small or medium-sized enterprises.

–Projects funded under the action cover a broad range of technological readiness levels and address different levels of system integration. The submission of more than 50 proposals following the 2019 open call on disruptive technologies reflects the high level of interest on the part of stakeholders.

NDICI–GLOBAL EUROPE

NEIGHBOURHOOD, DEVELOPMENT AND INTERNATIONAL COOPERATION INSTRUMENT – GLOBAL EUROPE

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 158  countries and cities were supported in developing or implementing strategies for climate change or disaster risk reduction from 2013 to 2021. | 909 620 km²  was protected (biodiversity/forest) between 2013 and 2021. | 3.4 million  children living in areas of crisis and conflict have received education through ‘Education cannot wait’ since its inception (2018-2020). | 12  electoral processes and democratic cycles were supported, observed and monitored by means of election observation missions in 2021. |
| 23.3 million  women, adolescent girls and children were helped to improve diet and breastfeeding, household resilience, food security, healthcare and stunting reduction between 2013 and 2021. | 54 400  or more at-risk human-rights defenders were supported between 2014 and 2021. | 11 million  items of personal protective equipment and other medical supplies were delivered in 2020 to the Eastern Partnership partner countries, together with the World Health Organization. | 8.4 million  beneficiaries were supported in 2014-2020 by the EU Regional Trust Fund in Response to the Syrian Crisis. |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 79 750.3 |
| NextGenerationEU | 0 |
| Decommitted amounts made available again (\*) | N/A |
| Contributions from other countries and entities | 6.0 |
| Total budget for 2021-2027 | 79 756.3 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI–Global Europe) aims to support those countries most in need in overcoming long-term developmental challenges. It contributes to achieving the international commitments and objectives that the EU has agreed to, in particular the 2030 agenda and its sustainable development goals, and the Paris Agreement.

Challenge

The EU faces increasing external challenges. Political fragility, instability and conflicts, shrinking civic and political space, terrorism, inequality and migratory pressures have combined with long-term trends such as population growth, climate change, environmental degradation and, more recently, the COVID-19 pandemic, along with the Russian aggression of Ukraine and its worldwide consequences. At the same time, these circumstances also affect EU partner countries and their economic welfare.

As a transnational actor of significant weight and reputation, the EU can provide significant added value in coordinating measures and providing leverage to find multilateral answers to those challenges.

Mission

The general objectives of NDICI–Global Europe are:

a)uphold and promote the Union’s values, principles and fundamental interests worldwide, in order to pursue the objectives and principles of the Union’s external action, as laid down in Article 3(5) and Articles 8 and 21 TEU, thus contributing to the reduction and, in the long term, the eradication of poverty, to consolidating, supporting and promoting democracy, the rule of law and respect for human rights, sustainable development and the fight against climate change and addressing irregular migration and forced displacement, including their root causes;

b)contribute to the promotion of multilateralism, the achievement of the international commitments and objectives that the Union has agreed to, in particular the SDGs, the 2030 Agenda and the Paris Agreement;

c)promote stronger partnerships with third countries, including with the European Neighbourhood Policy countries based on mutual interests and ownership with a view to fostering stabilisation, good governance and building resilience.

Objectives

NDICI–Global Europe’s specific objectives are as follows.

1.To support and foster dialogue and cooperation with non-EU countries and regions in the neighbourhood, in sub-Saharan Africa, in Asia and the Pacific, and in the Americas and the Caribbean. To develop special strengthened partnerships and enhanced political cooperation with the European neighbourhood, founded on cooperation, peace and stability and a shared commitment to the universal values of democracy, the rule of law and respect for human rights, and aiming at deep and sustainable democracy and progressive socioeconomic integration, along with people-to-people contacts;

2.At the global level, to protect, promote and advance democracy and the rule of law, including accountability mechanisms, and human rights, including gender equality and the protection of human-rights defenders. To support civil-society organisations. To further stability and peace and prevent conflict, thereby contributing to the protection of civilians. To address other global challenges such as climate change, protection of biodiversity and the environment, and migration and mobility.

3.To respond rapidly to situations of crisis, instability and conflict, including those that may result from migratory flows and forced displacement and hybrid threats, and to respond to resilience challenges, including natural and man-made disasters and the linking of humanitarian aid and development action, along with the EU’s foreign-policy needs and priorities.

NDICI–Global Europe strengthens specific priorities through horizontal targets.

–At least 93% of expenditure should fulfil the criteria for official development assistance.

–At least 20% of official development assistance spending should be dedicated to social inclusion and human development.

–30% of NDICI–Global Europe should contribute to climate-change objectives, while also contributing to the ambition of providing 7.5% of annual spending under the multiannual financial framework to biodiversity objectives in the year 2024 and 10% in 2026 and 2027, while considering the existing overlaps between climate and biodiversity goals.

–Indicatively, 10% of NDICI–Global Europe should be dedicated to action supporting the management and governance of migration and forced displacement, and addressing the root causes of irregular migration and forced displacement when they directly target specific migration challenges.

–At least 85% of new measures should have gender equality as a principal or a significant objective. At least 5% of these measures should have gender equality and women’s and girls’ rights and empowerment as a principal objective. Finally, there are two additional thematic spending targets for geographic programmes: at least 15% for human rights, democracy and good governance; and at least 45% for inclusive and sustainable growth for human development.

Actions

In line with its specific objectives, NDICI–Global Europe operates through three pillars:

–a geographical pillar, grouping cooperation into regional envelopes;

–a thematic pillar, complementing the geographic pillar with global thematic programmes, such as on human rights and democracy, civil-society organisations, peace, stability and conflict prevention, and global challenges;

–a non-programmable rapid response pillar, dealing with crisis response, resilience and linking humanitarian and development nexuses and EU foreign policy needs and priorities.

NDICI–Global Europe also has a buffer reserve for emerging challenges and priorities that can top up any of the three pillars above. Through the External Action Guarantee, NDICI–Global Europe may raise additional financial resources from the private sector to support financing and investment operations in all its geographical areas, with special attention paid to least-developed countries and countries experiencing fragility and conflict.

Delivery mode

NDICI–Global Europe is implemented under direct management by the Commission (centrally and through the EU delegations) and through indirect management by entities, such as the EU Member State agencies, international organisations or partner countries. In addition, financial instruments are designed in partnership with the European Investment Bank, Member State financial institutions or other European and international development financial institutions. The lead services involved in implementing the instrument are DG Neighbourhood and Enlargement Negotiations, DG International Partnerships and the Service for Foreign Policy Instruments, in cooperation with the European External Action Service and other line directorates-general, especially in relation to the external dimensions of internal policies such as climate, energy, trade, digital and education.

LINK TO THE 2014-2020 multiannual financial framework

The programme groups together a number of EU budget instruments from the 2014‑2020 multiannual financial framework, including the Development Cooperation Instrument and the European Neighbourhood Instrument. In addition, African, Caribbean and Pacific countries formerly covered under the off-budget European Development Fund are now also covered by the EU budget. Having such a comprehensive instrument will allow the EU to carry out better, more comprehensive external action and to deliver better results.

Impact assessment

The impact assessment of the NDICI was carried out in 2018.

For further information please consult: 
<https://europa.eu/!gh96VH>

WEBSITE FOR more information

<https://europa.eu/!Bj46Qc>

Legal basis

Regulation (EU) 2021/947 of the European Parliament and of the Council.

Implementation and performance

Budget implementation

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 12 411.3 | 12 716.6 | 11 970.8 | 11 373.9 | 10 700.9 | 10 052.0 | 10 524.9 | 79 750.3 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 6.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 6.0 |
| Total | 12 417.3 | 12 716.6 | 11 970.8 | 11 373.9 | 10 700.9 | 10 052.0 | 10 524.9 | 79 756.3 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming + 288.6 million (+ 0%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitment | 10 834.0 | 79 756.3 | 14% |
| Payments | 1 276.7 |  | 2% |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 10 832.9 | 12 071.0 |
| Payments | 1 276.4 | 1 118.0 |

–By the end of 2021, 14% of the total envelope for 2021-2027 had been committed, which corresponds approximately to one seventh of the 7-year multiannual financial framework. The entry into force of NDICI–Global Europe paved the way for the adoption, in record time, of most of the relevant multiannual indicative programmes and annual action plans, along with individual and special measures for countries, regions, Erasmus+ and thematic programmes by the end of 2021.

–All of these programmes will contribute significantly to climate action, social inclusion and human development, including education, migration and forced displacement, gender equality and biodiversity.

–The multiannual indicative programmes include the identification of Team Europe initiatives, put in place together with Member States, their agencies and European financial institutions, with the aim of achieving the maximum transformative impact in partner countries.

–In total, for 2021, the Commission services involved (DG Neighbourhood and Enlargement Negotiations, DG International Partnerships and the Service for Foreign Policy Instruments) and the European External Action Service managed to complete the adoption of 86 country, one multi-country and five regional multiannual indicative programmes, complemented by Erasmus+ and four thematic multiannual indicative programmes, along with the subsequent annual action plans and other measures authorising the use of funds.

–Their adoption was preceded by thorough consultations with partner countries, Member States and other stakeholders (civil-society organisations, including women’s and youth organisations, local authorities, representatives from the private sector, the United Nations and other like-minded partners). The total amount for the multiannual indicative programmes adopted is EUR 30.6 billion.

–In some cases, the policy frameworks were renewed at either the regional or the country level, while for the neighbourhood countries, negotiations on the joint documents with partner countries progressed at different speeds. In several instances, discussions and situations with some partner countries required continued adaptation of the programming to the evolving political situation.

–As a consequence, based on Article 30 of the NDICI–Global Europe regulation, EUR 1.6 billion has been carried over to be implemented in the first half of 2022. Ten multiannual indicative programmes under the geographic pillar remain in the pipeline for adoption in the first half of 2022, depending on progress in the negotiations with the partner countries.

–Nearly 92% of the funds in the country multiannual indicative programmes target least-developed and lower-middle-income countries.

–The adopted country, multi-country and regional multiannual indicative programmes aim to deliver on the EU’s overarching policy objectives, and notably all of them are geared towards the Green Deal objectives and enhancing gender equality.

–The digital agenda features in over 80% of the multiannual indicative programmes; sustainable growth and decent jobs feature in around 70%; migration and forced displacement are covered by more than half; governance, peace and security feature in nearly 90%; and social inclusion and human development are covered by more than 90% (with education in particular addressed in 80% of the multiannual indicative programmes).

–Four thematic multiannual indicative programmes complement these geographic ones: human rights and democracy (EUR 1.5 billion); civil-society organisations (EUR 1.5 billion); peace, stability and conflict prevention (EUR 871 million); and global challenges (EUR 3.6 billion).

–In addition, the Erasmus+ multiannual indicative programme was adopted in 2021 with a funding amount of EUR 1.79 billion, including funding coming from the Instrument for Pre-accession Assistance.

–Moreover, the 2021 annual action plans for programmable measures for conflict prevention, peacebuilding and crisis preparedness and for addressing global, transregional and emerging threats were adopted.

–Finally, by the end of year, 42 new crisis-response initiatives and 10 initiatives responding to global threats had been launched under the rapid response pillar. The resilience component of the rapid response measures was used to finance the individual measure to support inclusive quality education for refugees in Turkey.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| 2 036.9 | 723.7 | Score 2: 200  Score 1: 8 453  Score 0: 2 178 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Proportion of population below the international poverty line | 9.3% |  | 0% in 2030 | No results | No data |
| Number of individuals with access to improved drinking water sources and/or sanitation facilitation with EU support | 0 | 0% | 10.1 million in 2030 | 0 | On track |
| Number of students enrolled in education: (a) primary education, (b) secondary education, and number of people who have benefited from institution or workplace-based vocational education and training / skills-development interventions, supported by the EU | 0 | 0% | 2.1 million in 2030 | 0 | On track |
| Number of migrants, refugees and internally displaced people or individuals from host communities protected or assisted with EU support | 0 | 0% | 25.1 million in 2030 | 0 | On track |
| Number of countries and cities with climate change and/or disaster risk reduction strategies with EU support | 0 | 0% | 730 in 2030 | 0 | On track |
| Greenhouse gas emissions avoided (thousand tonnes of carbon dioxide equivalent) with EU support | 0 | 0% | 62.8 million in 2030 | 0 | On track |
| Leverage of investments and multiplier effect achieved | 0 | 0% | 10 in 2030 | 0 | On track |
| Number of individuals directly benefiting from EU-supported interventions that specifically aim to support civilian post-conflict, peacebuilding or conflict prevention | 0 | 0% | 3.8 million in 2030 | 0 | On track |

(\*) % of target achieved by the end of 2021.

–Due to the delayed adoption of NDICI–Global Europe, only limited measures made a difference on the ground, namely rapid response measures.

–A common feature of the most important achievements in 2021 was the timely delivery of conflict prevention and crisis-response measures, including in the following cases:

–in eastern Sudan, where increased pressure was put on local communities and public services to respond to needs from refugees from Tigray, Ethiopia;

–in Myanmar/Burma, where the programme supported civil-society organisations and international accountability mechanisms in response to the military coup;

–in Tajikistan, where the programme provided support in managing the border with Afghanistan;

–in Colombia, Ecuador and Peru, where the programme supported communities hosting migrants and refugees from Venezuela;

–in Chad, where the EU supported a transition that has so far been peaceful;

–in eastern Ukraine, where at the end of 2021 the EU’s support of the international monitoring mission was renewed on the contact line (with Russia), though it was suspended in 2022 following the invasion of Ukraine by Russia;

–urgent support from the EU budget was provided in November 2021 to Moldova’s most vulnerable groups and to support the country’s energy transition.

–These interventions were delivered despite COVID-19 restrictions and a tense geopolitical context.

–In Mali, on the other hand, developments on the ground made it impossible for the EU to provide the intended support for a peaceful and inclusive transition.

2014-2020 multiannual financial framework – Development Cooperation Instrument

The Development Cooperation Instrument was the main financial instrument in the EU budget for funding aid to developing countries during the 2014-2020.

Budget implementation

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitment | 19 969.4 | 19 970.1 | 100% |
| Payments | 13 221.3 |  | 66% |

–To achieve its objectives, the Development Cooperation Instrument provided funding for: (1) geographical programmes covering most developing countries (approximately 60% of the instrument’s budget); (2) thematic programmes (approximately 36%); (3) the Pan-African programme, which supports the Africa–EU Strategic Partnership (approximately 4%).

–The Development Cooperation Instrument is expected to complete its operations by the end of 2027. The remaining payments are mostly for Asia and the Middle East (45%).

–In Asia and the Middle East, important contracts were signed, notably relating to green infrastructure under the Association of Southeast Asian Nations Catalytic Green Finance Facility (EUR 51.9 million) and support for Afghanistan (EUR 197 million).

–In Asia and the Middle East, given the front-loading of disbursements in 2020 to cope with the initial impact of COVID-19 pandemic and the cancellation of budget support for Afghanistan and its suspension of payments in Myanmar/Burma, the amount disbursed in 2021 (EUR 291 million) was significantly lower than in 2020 (EUR 578 million).

–Latin America accounts for 13% of the remaining payments, which will occur over the next following years. For this region, the importance of sustainable investments continues to grow. The Development Cooperation Instrument’s contribution through the Latin America Investment Facility continued during 2021. The level of investment leveraged based on this contribution amounts to approximately EUR 3 billion.

–Budget support remains an important means of implementation for EU partnerships. In 2021 it represented 26% of all payments in Asia and the Middle East and around 20% in Latin America. It is also used in southern Africa.

–The EU Trust Fund for Colombia continued to support the implementation of the peace agreement between the Colombian government and FARC (the Revolutionary Armed Forces of Colombia). The trust fund currently has 34 projects ongoing, amounting to EUR 130 million.

–34% of the remaining payments will be implemented under thematic programmes, notably for the environment and climate change, food and nutrition security and sustainable agriculture, and civil society and local authorities in development.

–The midterm evaluation conducted in 2017 also considered the Development Cooperation Instrument to be generally cost-efficient when looking at indicators measuring organisational performance.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Proportion of population below the international poverty line | 47.7% | 82% | 0% in 2030 | 8.6% of the population below the poverty line compared to a target of 0% | Moderate progress |
| Number of projects to promote democracy, the rule of law, good governance and respect for human rights | 0 | > 100% (\*\*) | 100 in 2021 | 186 projects compared to a target of 100 (\*\*) | On track |

(\*) % of target achieved by the end of 2021.

(\*\*) Average of 2014-2021 results compared to target.

–The specific, diverse and rapidly changing context of EU external action requires the use of all the existing implementation means and delivery methods to pursue the policy objectives and operational priorities. With a budget of approximately EUR 20 billion, the Development Cooperation Instrument has been a key financing instrument to support EU development policy.

–By using the Development Cooperation Instrument, the EU financed measures aimed at supporting geographic and thematic cooperation with developing countries.

–The EU’s financial support via the Development Cooperation Instrument has improved the lives of millions of people worldwide, enabled young people to fulfil their potential, fought inequality and supported equitable and sustainable growth.

–However, it remains difficult to measure the direct impact of the 2014-2020 Development Cooperation Instrument on development outcomes such as poverty reduction because there are so many other contributing actors and factors, and separating the specific effect of the Development Cooperation Instrument is challenging.

–With the above caveat in mind on the impossibility of establishing a direct link with the programme measures, most of the population residing in Development Cooperation Instrument partner countries have seen progress in poverty reduction and human and economic development over the last 10 years.

–Indeed, the proportion of the world population below the international poverty line dropped every year between 2014 and 2019, when it reached 8.7%, and has remained steady since then. Similarly, the mortality rate of under-5s and the prevalence of stunting also decreased every single year between 2014 and 2021.

–Despite these positive trends, the rates of change have slowed over time as numbers have approached (but not reached) their ambitious targets. The prevalence of stunting is the exception for which targets have consistently been met.

–On the other hand, the international indicators monitoring the situation in relation to democracy, the rule of law, good governance and human rights do not tell an encouraging story. Regarding the World Bank’s rule-of-law score, the situation deteriorated between 2014 and 2016 and has not significantly improved since.

–With regard to the proportion of seats held by women in national parliaments, progress has been so slow that, if the current pace of change were to continue in the future, the 2020 target would be only met in 2035. This is why the Commission has instituted and financed via the Development Cooperation Instrument a number of projects to promote democracy, the rule of law, good governance and human rights significantly above the initial target of 100 projects per year on average over the 2014-2021 period.

2014-2020 multiannual financial framework – European Neighbourhood Instrument

The European Neighbourhood Instrument financed, for the 2014-2020 period, the European neighbourhood policy, which aims at supporting political, economic and social reform processes in the EU’s neighbouring countries.

Budget implementation

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitment | 17 566.3 | 17 568.3 | 100% |
| Payments | 11 534.9 |  | 66% |

–As of 31 December 2021, the whole of the European Neighbourhood Instrument envelope had been committed, and 66% had been paid. The instrument is an investment tool, and finances projects that run over a long period. Contracts are concluded on average within 3 years, while those with international financial institutions, such as blending and guarantees, have longer implementation periods (6-9 years).

–The implementation of European Neighbourhood Instrument payment appropriations will decrease to EUR 1.2 billion in 2022 and stabilise at EUR 1.1 million in 2023. This should bring the implementation of these payment appropriations up to 73% of the total 14-20 envelope at the end of 2022 and 79% at the end of 2023.

–More than half (54%) of European Neighbourhood Instrument payments in 2021 were dedicated to measures relating to social infrastructure and services (including more than half for governments and civil society), 26% to multisector measures, 10% to economic infrastructure and services and 7% to production sectors.

–Moreover, 66% of payment appropriations were implemented through direct management and 33.3% through indirect management, while 24% were implemented by trust funds, 20% through budget support, 17% by international organisations, 14% through grants and implementing agencies, 8% through procurements and 2% through indirect management with beneficiary countries.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Eastern Partnership – mobility partnerships in place | 3 | > 100% | 4 in 2023 | 6 partnerships compared to target of 4 | On track |
| Southern neighbourhood – mobility partnerships in place | 1 | 67% | 4 in 2023 | 3 partnerships out of 4 | Moderate progress |
| Number of ministerial, platform and panel meetings under the Eastern Partnership | 70-80 | < 0% | 90 in 2023 | 48 meetings out of 90 | Moderate progress |

(\*) % of target achieved by the end of 2021.

–The European Neighbourhood Instrument has proved to be a flexible and responsive instrument addressing the priorities established under the European Neighbourhood Policy framework and reacting to needs and challenges in the region, including protracted crises.

–One of the essential elements of the European Neighbourhood Instrument regulation is the incentive-based approach, also referred to as ‘more for more’. EUR 1.4 billion was disbursed under the incentive-based approach between 2014 and 2020. Indeed, the share of available resources offered to partner countries is adapted primarily to their progress in building and consolidating a deep and sustainable democracy and in implementing agreed political-, economic- and social-reform objectives.

–In cases of non-achievement or backsliding, ‘less for less’ is applied to the available resources offered to partner countries, or resources are recalibrated towards civil society. A good example is Belarus, where the EU has stepped up its support for the people of Belarus while moving assistance away from the authorities.

–The first objective of the instrument is to promote human rights and fundamental freedoms, the rule of law, principles of equality and the fight against discrimination in all its forms.

–Overall, the trend in the neighbourhood has been fluctuating.

–The instrument pursues this objective by promoting, through its interventions, the values of human rights and fundamental opinions of civil-society organisations for a policy initiative, freedoms, the rule of law, principles of equality and anti-discrimination.

–Over the 2014-2020 period, some EUR 2.2 billion was committed to human rights, good governance and mobility. Over the 2013-2021 period, the EU supported 63 government policies with civil society throughout the eastern and southern neighbourhoods. This means supporting public participation whereby the government actively seeks the opinions of interested and affected groups in civil society for a policy initiative. In addition, more than 65 000 people benefited from legal aid interventions supported by the EU in 2013-2021.

–The second objective is to achieve progressive integration into the EU’s internal market and enhanced sectoral and cross-sectoral cooperation in various domains.

–The instrument supports almost all neighbourhood countries in strengthening their revenue mobilisation (how to collect more taxes and how to do it better), their public financial management and their budget transparency. During the 2014-2021 period, the total amount of support for public financial management is estimated to have been EUR 268 million. As examples of the results of this support, more than 74 000 firms and more than 41 000 individuals gained access to financial services.

–The instrument also supports the implementation of trade agreements with our partners, notably via the EU4Business initiative. In particular, this initiative helps to support studies and technical assistance for regulatory approximation in the areas of public procurement, technical barriers to trade, sanitary and phytosanitary measures, customs and services.

–As a result of this support, economic operators in Georgia, Moldova, Palestine (
[11](#footnote12)
), Tunisia and Ukraine obtained 158 conformity-scheme-related certifications, accreditations, approvals or recognitions for their products, services and systems.

–Certification and accreditation are key to facilitating trade between neighbourhood countries and the EU. In the eastern neighbourhood, this type of support has allowed an increase in the number of companies from the concerned countries exporting to the EU. Between 2014 and 2021, the number of companies exporting to the EU increased by 65% in Georgia, 70% in Moldova and 42% in Ukraine.

–The third objective of the instrument is to create conditions for the better organisation of legal migration and the well-managed mobility of people. The programme contributes greatly to achieving this objective.

–Most of the work done on migration and forced displacement since 2015 in the southern neighbourhood has been financed by approximately EUR 2 billion of European Neighbourhood Instrument funds through the EU Emergency Trust Fund for Africa (North of Africa window) and the EU Regional Trust Fund in Response to the Syrian Crisis. In the eastern neighbourhood at least EUR 230 million has been spent, focusing mainly on legal migration – including mobility, circular migration and diaspora cooperation – and on border management.

–During the 2013-2021 period, almost 4.5 million migrants, forcibly displaced people or individuals from host communities were protected or assisted with EU support in the neighbourhood regions.

–In order to have an impact on achieving the fourth objective – i.e. supporting smart, sustainable and inclusive development in all respects – the fund supported 14 countries in their reforms aiming to reduce business costs and risks and to create a more conducive environment for competitiveness, sustainable and inclusive growth and decent job creation.

–The European Neighbourhood Instrument has also continued to provide support for the green transition to partner countries in the eastern neighbourhood, in line with the external dimension of the European Green Deal and to ensure a sustainable and green economic recovery.

–Within this context, the European Neighbourhood Instrument programme EU4Climate assisted Armenia, Azerbaijan, Belarus and Moldova in preparing their updated nationally determined contributions. In Georgia and Ukraine, EU4Climate assisted with raising awareness and communicating the revised targets for these countries’ nationally determined contributions. As a result of this EUR 1.2 million in support, all Eastern Partnership countries increased their ambitions in relation to reducing greenhouse gas emissions by 2030, compared to the previous cycle of nationally determined contributions.

–The fifth objective of the instrument is to promote confidence building, good neighbourly relations and other measures contributing to security in all its forms, along with the prevention and settlement of conflicts. To that end, in 2014-2021, the fund provided more than EUR 2.5 billion in total to over 1 000 state institutions and non-state actors for measures relating to security, border management, countering violent extremism, conflict prevention, protection of the civilian population and human rights.

–In particular, the EU has been a steadfast supporter not only of the territorial integrity of Ukraine in the face of Russia’s aggression, but also of building up Ukraine’s resilience. Since 2014, the EU has provided almost EUR 1 billion in conflict-related assistance to Ukraine: EUR 442.5 million in humanitarian and early recovery assistance and support for the reform process in conflict-affected regions; and EUR 540 million through European Investment Bank loans for investment in critical municipal infrastructure.

–Finally, European Neighbourhood Instrument support for cross-border cooperation, its sixth objective, amounted to EUR 482 million for the 2014-2020 period as a whole. In the southern neighbourhood there has been positive progress on increasing the credibility of the Union for the Mediterranean through regular ministerial meetings and conferences. In 2021, the implementation of the Eastern Partnership policy reached a new milestone, that of endorsing the post-2020 Eastern Partnership agenda, structured around two equal pillars: governance and investment.

2014-2020 multiannual financial framework – European Instrument for Democracy and Human Rights

The European Instrument for Democracy and Human Rights aimed at providing support for the promotion of democracy and human rights in non-EU countries.

Budget implementation

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitment | 1 250.3 | 1 250.6 | 100% |
| Payments | 972.0 |  | 78% |

–In 2021, the programme supported 132 new initiatives led by civil-society organisations, in particular local ones, in more than 70 partner countries.

–The COVID-19 crisis continued to weigh negatively on respect for and the protection of human rights and democracy worldwide in 2021. A number of emergency initiatives launched in 2020 after the start of the worldwide health crisis were implemented throughout 2021, such as support for journalists in Africa and Latin America and for child protection systems in Africa.

–In addition, in 2021, support continued to be provided to the Global Monitor of COVID-19’s Impact on Democracy and Human Rights, a one-stop online global monitoring platform (tracker of trackers) set up by the International Institute for Democracy and Electoral Assistance, with data and brief analyses for 162 countries around the world.

–In the years to come, the programme will continue in particular to support human-rights defenders and civil-society organisations operating in the most difficult human-rights situations. Additionally, financial support will be provided to key global and regional human-rights actors and processes such as the Office of the United Nations High Commissioner for Human Rights, the International Criminal Court and global and regional national human-rights institutions. The human rights and democracy thematic programme will also work on core human-rights and democracy topics (e.g. torture, the death penalty, the rights of the child, accountability, civic and political participation, media freedom) and address emerging challenges (e.g. business and human rights, digital civic space).

–Despite the ongoing pandemic, mitigation measures for security and safety enabled 12 electoral processes to be supported and 21 missions to be deployed under the European Instrument for Democracy and Human Rights. Several election follow-up missions had to be postponed to 2022, however.

–The programme is expected to be finalised in 2027.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Human-rights-defender individuals who have received EU support | 0 | > 100% | 1 200 in 2021 | 1 530 compared to a target of 1 200 | On track |
| Human-rights crisis-response projects | 0 | > 100% | 15 in 2021 | 21 compared to a target of 15 | On track |
| EU election missions (observation missions; expert missions and studies) | 0 | 83% (\*\*) | Average of 21 between 2014 and 2020 | 17 out of 21 | Moderate progress |

(\*) Average of 2014-2021 results compared to target

(\*\*) Average of 2014-2020 results compared to average of 2014-2020 milestones..

–The European Instrument for Democracy and Human Rights was implemented against the backdrop of an overall slowdown in the consolidation of democracy, the rule of law, good governance and human rights globally. In relation to the World Bank’s rule-of-law score, the situation deteriorated between 2014 and 2016 and has not significantly improved since.

–Over the entire 2014-2020 period, the instrument was successful in delivering on its objectives. It proved to be an enabling, flexible and responsive instrument, which demonstrated its added value as a niche instrument to promote human rights and democracy.

–The key added value of the European Instrument for Democracy and Human Rights lay in the independence of its action and in its worldwide coverage, allowing for interventions in the most difficult country situations and without the consent of the host governments, and also acting where other instruments and donors cannot or do not act. It has been able to address challenges relating to human rights and democracy in even the most difficult and challenging environments.

–The midterm evaluation conducted in 2017 also considered the instrument to be generally efficient thanks to a relatively low level of administrative expenditure and its essential, built-in, flexible tools, for instance its direct support for human-rights defenders, its direct small grants and the way it works with informal partners.

2014-2020 multiannual financial framework – Partnership Instrument for Cooperation with Third Countries

The Partnership Instrument for Cooperation with Third Countries was, in 2014-2020, the EU’s first instrument specifically designed to promote the EU’s strategic interests worldwide by reinforcing its external strategies, policies and initiatives.

Budget implementation

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitment | 961.3 | 961.7 | 100% |
| Payments | 653.1 |  | 68% |

–By the end of 2021, 100% of the total envelope of the Partnership Instrument for Cooperation with Third Countries had been committed and 68% had been paid. The instrument was in high demand.

–The 68% execution of payment appropriations reflects the way the instrument is implemented through annual action programmes and multi-year contracts (on average 4 years). Consequently, the implementation of interventions will continue over the coming years, with the last contracts ending around 2025-2026.

–The COVID-19 crisis continued to impact financial implementation in terms of the capacity to implement in-person activities and monitoring. Measures taken in 2020 (reallocation of funds and new virtual working methods) allowed interventions to continue, with a good rate of execution in 2021.

–In 2021, the instrument continued to contribute to the EU’s external action by supporting its foreign policy, articulating and implementing the external dimension of internal policies, leveraging its influence and interconnecting different policy areas. Action covered challenges of global concern such as climate change and environmental protection; improving access to markets and boosting trade, investment and business opportunities for EU companies (with a particular emphasis on small and medium-sized enterprises); and public diplomacy.

–The requests for payment appropriations for the partnership instrument in 2022 and 2023 will allow the continued implementation of measures under the instrument committed until the adoption of the NDICI–Global Europe regulation. For example, the implementation of important measures in the domain of digital cooperation and public diplomacy will continue in 2022 and 2023.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Local and regional authorities signing the Covenant of Mayors | 6 270 | > 100% | 10 270 in 2020 | 11 752 out of 10 270 | On track |

(\*) % of target achieved by the end of 2021.

–Programming centred on themes rather than country-focused considerations. For example, measures under the Partnership Instrument for Cooperation with Third Countries underpinned bilateral and regional dialogues in multiple areas of strategic EU interest, and bilateral and multilateral negotiations, by providing support for concrete policy deliverables, thereby strengthening the EU’s position as a credible partner.

–Other measures aimed at developing common approaches with key partners to influence international processes and agendas, thereby underpinning multilateralism, fostering the building of partnerships and alliances in a global context and contributing to the rules-based global order.

–In the area of trade policy, the instrument provided unprecedented support to the EU’s trade agenda, focusing on countries/regions where trade and investment agreements exist or are being negotiated. Further measures enabled the EU to promote its standards abroad, help develop a level playing field and create opportunities for its companies.

–Public and cultural diplomacy measures enabled the EU to promote its image and understanding abroad, engaging with key decision-makers and target groups in strategic partner countries and thereby positioning itself as an influential and reliable global partner.

–In 2021, the partnership instrument maintained a large number of operations, as 25 stand-alone measures were adopted with a budget of EUR 81.9 million covering the following areas: sustainable development and the environment; climate, energy action and urbanisation; digitalisation; trade agreements and market access; raising the profile of the EU through public and cultural diplomacy; health; and promoting and upholding EU values.

–These measures enabled and facilitated numerous strategic policy dialogues and information exchange activities with partner countries, thereby extending the reach and depth of the EU’s foreign policy. Besides stand-alone measures of a medium- to long-term nature, there are two tools for short-term measures under the partnership instrument, namely the Policy Support Facility and the Technical Assistance and Information Exchange instrument, under which 32 and 14 measures were contracted in 2021, respectively.

–Activities under the partnership instrument that contributed to addressing COVID-19 under the Team Europe initiative continued by leveraging the EU’s role as policymaker and setter of standards to address and contain the negative impact of the pandemic on global health and in socioeconomic terms.

2014-2020 multiannual financial framework – Instrument contributing to Stability and Peace

Between 2014 and 2020, the Instrument contributing to Stability and Peace was one of the EU’s main instruments in the areas of crisis response, conflict prevention, peacebuilding and crisis preparedness, and in addressing global and transregional threats.

Budget implementation

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitment | 2 366.9 | 2 367.1 | 100% |
| Payments | 1 901.2 |  | 80% |

–The implementation of financial programming in 2014-2020 was fully in line with expectations. By the end of 2021, 100% of the envelope had been committed and 80% had been paid.

–The 80% execution of payment appropriations for the Instrument contributing to Stability and Peace is explained by measures responding to conflict situations or situations at risk of conflict, with a high risk of unforeseen events impacting implementation and resulting in measures consequently being amended. Sometimes not all planned activities could be implemented, which explains the underspending and the need to decommit.

–COVID-19-related restrictions continued to cause delays in implementation during 2021, but the vast majority of measures could adapt, allowing activities to proceed to the extent possible. No-cost extensions were granted for many measures in 2021.

–The payment-appropriation requests for 2022 and 2023 will allow the continued implementation of measures under the instrument committed until the adoption of the NDICI–Global Europe regulation. For example, the implementation of important measures focusing on challenges linked to counterterrorism, organised crime and disinformation, and to making digital solutions, including social media, work for peace and stability, will continue in 2022 and 2023.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of former weapon-scientist talents redirected to peaceful activities | 0 | > 100% | 18 600 in 2020 | 20 215 compared to 18 600 | On track |

(\*) % of target achieved by the end of 2021.

–Between 2014 and 2020, the Instrument contributing to Stability and Peace funded activities in the areas of (1) crisis response, (2) conflict prevention, peacebuilding and crisis preparedness and (3) response to global, transregional and emerging threats. The instrument’s activities are implemented in partner countries around the world, in conflict zones, in post-conflict environments and in emerging crisis settings.

–With a view to allowing the EU to respond quickly to crises, 70% of funds under the instrument were allocated to the non-programmable crisis-response component. This 70% included EUR 100 million specifically for building the capacity of military actors in support of development and security for development following the adaptation of the Instrument contributing to Stability and Peace regulation in 2017, to enable the funding of such assistance. Longer-term programmable measures to strengthen capacity for conflict prevention, peacebuilding and crisis preparedness, along with responses to global, transregional and emerging threats, represented 9% and 21% of the overall budget, respectively.

–The instrument delivered timely crisis-response measures but, on occasion, the percentage of measures adopted within 3 months of a crisis context dipped, notably due to the disruption linked to the establishment of regional teams in 2017. However, but they have since increased significantly to levels above the target.

–In terms of emerging crises, the instrument has been of huge importance in developing the EU Early Warning System, which has subsequently allowed, among other things, for the mobilisation of timely and targeted measures in the countries analysed.

–For the conflict prevention component, the instrument has supported, through 75 action grants to civil-society organisations between 2014 and 2020, a multitude of locally driven conflict prevention measures in more than 30 countries, strengthening the role of women and young people in confidence-building activities and peace processes.

–Engagement in areas such as counterterrorism and the prevention of violent extremism, the fight against organised crime, the protection of critical infrastructure and chemical, biological, radiological and nuclear risk mitigation reinforced the EU’s role as a credible and responsive external actor.

INSC

EUROPEAN INSTRUMENT FOR INTERNATIONAL NUCLEAR SAFETY COOPERATION

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 2 500  people participated in the training and tutoring programme between 2014 and 2020. | 26  countries benefited from EU assistance in relation to nuclear safety between 2014 and 2020. | 36  regulatory documents were drafted and adopted between 2014 and 2020 with the support of the fund. | 18  nuclear waste management and strategy documents were produced between 2014 and 2020. |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 300 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 300 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The programme’s objective is to support the promotion of nuclear safety culture and radiation protection, the safe management of spent nuclear fuels and radioactive wastes and the application of effective and efficient safeguards of nuclear materials in non-EU countries.

Challenge

The operation of nuclear power plants is the responsibility of any state that chooses to include nuclear in its energy mix. Nevertheless, as history showed with the accidents at Chernobyl in 1986 and Fukushima in 2011, any accident has transboundary consequences and affects the population and the environment of neighbouring countries and regions. In other words, ensuring nuclear safety and security has the features of a public good.

The EU thus has both a role to play and value to add in terms of safeguarding the safety and security of its citizens and protecting the environment, by ensuring that nuclear reactors are operated safely and according to the best international standards.

Mission

The objective of European Instrument for International Nuclear Safety Cooperation (INSC) is to support the promotion of nuclear safety culture and radiation protection, the safe management of spent nuclear fuels and radioactive wastes and the application of effective and efficient safeguards of nuclear materials in non-EU countries.

This is to be achieved by cooperating with the key stakeholders, and in particular with the responsible nuclear regulatory authorities, with the aim of transferring EU expertise and promoting transparency by non-EU countries’ authorities in nuclear-related decision-making.

Objectives

The INSC’s objectives are:

4.to promote an effective nuclear safety and radiation protection culture and implement the highest nuclear safety and radiation protection standards, and to continuously improve nuclear safety, including by promoting transparency in the decision-making processes of authorities in non-EU countries relating to the safety of nuclear installations;

5.to manage spent fuel and radioactive waste responsibly and safely and to decommission and remediate former nuclear sites and installations, including by promoting transparency in the decision-making processes of authorities in non-EU countries;

6.to establish efficient and effective safeguards for nuclear material in non-EU countries.

Actions

The INSC will establish cooperation with and support beneficiary countries through a variety of means, including by providing services, equipment, technical assistance, training and tutoring and by exchanging information (including through twinning projects). The INSC can also provide budget support and take part in multilateral assistance/cooperation projects together with Member States or international organisations.

Delivery mode

The INSC is implemented under direct management by the Commission (including through the EU delegations) and under indirect management by entities such as Member State agencies or international organisations that ensure a level of protection of the EU’s financial interests equivalent to that under direct management. Indirect management may also be entrusted to partner countries or the bodies they designate. Innovative financial instruments, including in partnership with the European Bank for Reconstruction and Development and other international financial institutions, will be used for blending activities.

LINK TO THE 2014-2020 multiannual financial framework

The INSC builds on the Instrument for Nuclear Safety Cooperation in the 2014-2020 multiannual financial framework.

Impact assessment

The impact assessment of the INSC was carried out in 2018.

For further information please consult: 
<https://europa.eu/!gh96VH>

WEBSITE FOR more information

<https://europa.eu/!jH36Mv>

Legal basis

Council Regulation (Euratom) 2021/948.

Implementation and performance

Budget implementation

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 37.6 | 38.6 | 39.9 | 41.8 | 44.1 | 47.2 | 50.9 | 300.0 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities |  |  |  |  |  |  |  |  |

(\*) Only Article 15(3) of the financial regulation.

Financial programing: + 0 million (+ 0 %) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitment | 37.6 | 300 | 13% |
| Payments | 0.9 |  | 0% |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 37.6 | 37.6 |
| Payments | 0.9 | 1.5 |

–In 2021, the EUR 37.6 million in implemented commitments represented 100% of the voted budget and the payments 60%. The difference in payments from the initial voted budget can be explained by the late adoption of the legal basis.

–In 2021, the EUR 36.1 million in commitment appropriations is to finance 10 projects in nine countries in the areas of nuclear safety (42.5%) and the management of radioactive waste (42.5%).

–In 2022, nine projects are expected to be financed in eight countries and regions, with a commitment appropriation amount of EUR 35.9 million.

–In line with the multiannual indicative programme, projects will be financed relating to the promotion of an effective nuclear safety culture (objective 1 of the programme) and to radioactive waste management (objective 2 of the programme) (41.9% each), and to establishing nuclear safeguards for nuclear material (objective 3) (12.3%) and support measures (3.9%).

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality |
| 0 | 0 | Score 1: 34.3  Score 0: 3.3 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Number of countries benefiting from EU support in developing a culture of safety for nuclear energy | 0 | > 100% | 20 in 2027 | 9 | On track |
| Number of regulatory documents produced in beneficiary countries with the support of EU expertise | 0 | > 100% | 20 in 2027 | 5 | On track |
| Number of nuclear safeguards authorities benefiting from Commission-funded projects | 0 | > 100% | 3 in 2026 | 0 | On track |

(\*) % of target achieved by the end of 2021.

–Performance assessment will be provided once the implementation of the 2021-2027 programme has started.

  

2014-2020 multiannual financial framework – Instrument for Nuclear Safety Cooperation

The predecessor of the INSC in the 2014-2020 multiannual financial framework was the Instrument for Nuclear Safety Cooperation.

Budget implementation

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitment | |  |  | | --- | --- | | |  | | --- | | 314.4 | | | |  |  | | --- | --- | | |  | | --- | | 314.4 | | | |  |  | | --- | --- | | |  | | --- | | 99.99% | | |
| Payments | |  | | --- | | 216.6 | |  | |  |  | | --- | --- | | |  | | --- | | 68.89% | | |

–The incomplete budget consumption at the end of the 2014-2020 multiannual financial framework is explained by the fact that some of the projects need the prior signature of a financing agreement with the beneficiary country, and contracting can occur up to 3 years after the exercise in which the financing agreement is signed. This means that part of the allocated budget of the 2014–2020 INSC will still be contracted in 2021–2023. This is consistent with the outcome of previous exercises.

–The payment appropriations for 2021 covered the costs of projects contracted in previous years and eight projects contracted in 2021.

–The COVID-19 crisis significantly slowed down the implementation of projects in the beneficiary countries during 2020 and 2021, as the nuclear safety cooperation instrument is a fully centrally managed instrument. The very specific and technical nature of the instrument implies technical expertise that is not available in the EU delegations to the partner countries. Therefore, all programming activities from the definition and adoption of the annual action plan to the contracting, management and implementation of the projects, and reporting, are managed at the Commission’s headquarters. Travel restrictions due to the COVID-19 situation impacted the ability to deploy activities on-site.

–Remote cooperation has been used as often as practically feasible, in particular for training activities, but did not allow a 100%-effective recovery plan. Only eight contracts were signed in 2021, compared to an annual average of 12 previously. As a result, the end-of-year payment forecast was lowered as the original payment forecast was not met.

–An example of projects being implemented relates to central Asia. The central Asian states have inherited 1 billion tonnes of hazardous processing waste, which consists of highly toxic chemical and radioactive residues left behind and unsafely stored in uranium legacy sites. The instrument supports the implementation of the remediation programme. The first two remediation projects in Kyrgyzstan began in 2020 and are about to be completed, and activities began in Uzbekistan in 2021.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Nuclear safety culture and radiation protection standards – regulatory documents produced with the support of EU expertise |  | > 100% | 8 | 36 compared to a target of 8 | On track |
| Responsible and safe management of spent fuel and radioactive waste – regulatory documents produced with the support of EU expertise |  | > 100% | 9 | 18 compared to a target of 9 | On track |
| Nuclear safeguard authorities benefiting from Commission-funded projects |  | > 100% | 3 | 4 compared to a target of 3 | On track |

(\*) % of target achieved by the end of 2020.

–Whereas the assessment noted the high relevance and unique benefit of INSC, it also emphasised the need for improvements in cooperating with international organisations such as the Atomic Energy Agency.

–Since 1991, cooperation with the regulatory authorities has primarily aimed at improving the governmental, legal and regulatory frameworks, based on experiences in the EU. This involved the transfer of regulatory practices used in the Member States.

–The competence of staff working in the nuclear area is of the utmost importance to ensure that the use of nuclear technology is safe. The instrument supported training and tutoring actions, which transfer EU knowledge to students and young professionals. Some 2 500 staff were trained in the beneficiary countries between 2014 and 2020. Around 34% of these were women, which contributes to the gender equality goal in a highly specialised scientific area. This confirms the success of the programme.

–A major milestone was to make the Chernobyl site environmentally stable and safe. This goal was met on 29 November 2016 by sliding the New Safe Confinement over the nuclear reactor destroyed in April 1986. The New Safe Confinement is a giant arch-shaped structure that covers the damaged Chernobyl Unit 4 in order to prevent any further radioactive release.

–The total project cost is in the order of EUR 1.5 billion, to which the EU contributed more than EUR 430 million (across several multiannual financial frameworks).

In July 2019, the facility was officially handed over to the Ukrainian government. In 2020, the final facility used for safely storing the spent nuclear fuel was completed and transferred to Ukraine, terminating the long-lasting international engagement for Chernobyl.

HUMA

HUMANITARIAN AID PROGRAMME

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| EUR 2.2 billion  of humanitarian aid was provided to the most vulnerable in 2021. | 82  countries received humanitarian aid from the EU in 2021. | 2.3 million  girls and boys benefited from the ‘education in emergencies’ initiative in 2021. | 21  flights were organised by the EU humanitarian air bridge to deliver more than 400 tons of medical and humanitarian equipment and to transport medical and humanitarian staff and other passengers in 2021. |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 12 484.1 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 9.9 |
| Total budget for 2021-2027 | 12 494.0 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

Humanitarian aid is a key pillar of the EU’s external action and an important element of the EU’s ability to project its values globally. The EU humanitarian aid programme provides emergency, life-saving assistance to people, particularly the most vulnerable, hit by human-induced or natural disasters.

Challenge

The scale, frequency and duration of crises that demand international humanitarian response is increasing, aggravated by long-term trends such as climate change, population growth, rapid and unsustainable urbanisation, resource scarcities and increasingly protracted armed conflicts. These are, and will continue to be, among the main drivers of humanitarian crises, which in turn generate growing humanitarian needs on a global scale. The situation has been exacerbated by the COVID‑19 pandemic and recently by the war in Ukraine.

The 2022 global humanitarian overview presented funding requirements of USD 41 billion to assist 183 million of the 274 million people in need in 63 countries. However, humanitarian funding is not increasing at the same speed as the needs. Funding for the plans included in the 2021 global humanitarian overview reached USD 19 billion, whereas the needs amounted to USD 38 billion. This funding gap is expected to continue to grow, as is the need for front-line lifesaving humanitarian assistance.

The EU is able to fill some of the gaps in global humanitarian aid, including by addressing needs in areas that are difficult to access, and by providing response not only to the biggest and most visible humanitarian crises, but also to those receiving no or insufficient international aid and political/media attention. Member States often look at the EU as a donor to provide assistance in crises where they are not able to intervene in a national capacity. Member States also benefit from the EU’s ‘humanitarian diplomacy’, which aims to increase humanitarian space and lead to more effective provision of humanitarian aid, by encouraging economies of scale. Because of the financial weight (the EU and its Member States together are a leading donor), the EU is a leading player in humanitarian assistance on the international stage and a strong advocate for the respect of international humanitarian law. Another key element of EU added value for Member States lies in the strong operational knowledge and technical expertise of the EU’s unique network of humanitarian field offices spread over almost 40 countries.

Mission

The humanitarian aid programme provides emergency, life-saving assistance to people, particularly the most vulnerable, hit by man-made or natural disasters.

In line with the humanitarian aid regulation (Council Regulation (EC) No 1257/96), people affected by disaster or conflict, irrespective of their race, ethnic group, religion, sex, age, nationality or political affiliation benefit from humanitarian assistance, which must not be guided by, or subject to, political considerations. The EU acts on the basis of the international humanitarian principles of humanity, neutrality, impartiality and independence. Humanitarian aid is often the only EU instrument able to intervene concretely in acute conflict situations. Thanks to its flexibility, humanitarian aid has also made a significant difference in many of the countries and crises at the origin of the global refugee and migration crisis.

Objectives

The humanitarian aid programme’s main specific objectives are to:

–provide needs-based delivery of EU assistance to save and preserve life, prevent and alleviate human suffering, and safeguard the integrity and dignity of populations affected by natural disasters or man-made crises, including protracted crises;

–build the resilience and capacity to recover of vulnerable or disaster-affected communities, in complementarity with other EU instruments.

Actions

Humanitarian interventions mainly consist of funding projects carried out by around 140 partner organisations – non-governmental organisations (e.g. national societies of the Red Cross), international organisations (e.g. United Nations agencies and the Red Cross and Red Crescent movement), and Member States’ specialised agencies. Most of the time, these interventions occur in complex, risky contexts with difficult access conditions. Besides being lead donor, the EU has been playing a leading role in the development of new policy approaches (e.g. education in emergencies, assessment of people-centred intersectoral needs) and innovative funding modalities (e.g. cash-based assistance).

Delivery mode

In most cases, the Commission delivers assistance through financial support via individual agreements with partner organisations (non-governmental organisations, United Nations agencies or other international organisations). The management mode applied with non-governmental organisations is direct management, and the one applied with the United Nations and international organisations is indirect management.

LINK TO THE 2014-2020 multiannual financial framework

The humanitarian aid regulation is not bound by duration to a specific multiannual financial framework, hence the policy and legal framework for the EU’s humanitarian aid is not expected to change.

WEBSITE FOR more information

<http://europa.eu/!br44Rp>

Legal basis

Council Regulation (EC) No 1257/96.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 2 168.1 | 1 806.1 | 1 626.9 | 1 660.7 | 1 693.6 | 1 727.5 | 1 762.4 | 12 484.1 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 9.9 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 9.9 |
| Total | 2 177.9 | 1 845.0 | 1 626.9 | 1 660.7 | 1 693.6 | 1 727.5 | 1 762.4 | 12 494.0 |

(\*) Only Article 15(3) of the financial regulation.

Financial programing: + EUR 915.0 million (+8%) compared to the legal basis.

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 2 168.1 | 1 503.0 |
| Payments | 2 400.5 | 1 900.1 |

–As regards commitment appropriations, the budget amounts adopted in 2021 and requested for 2022 are in line with the financial programming. The payment appropriations are established on the basis of estimated payment needs triggered by old and new commitments. Considering the increasing humanitarian needs, it is expected that the implementation will follow the same trend as the 2014-2020 programme, i.e. 100% implementation, with little to no difficulties.

–In 2021 the Commission allocated attributions under the humanitarian aid programme to respond not only to humanitarian crises attracting widespread attention such as the ones in Syria or Ethiopia, but also forgotten crises (such as the Burundi refugee crisis, the droughts in Madagascar, the Rohingya regional crisis or the Sahrawi crisis in Algeria). The Commission will continue responding to new and protracted crises. This objective will remain very challenging as humanitarian needs will keep growing, a trend that is already being observed in early 2022 with the war in Ukraine. In a context of limited resources, it will be of paramount importance that the increase of humanitarian needs triggered by the crisis in Ukraine be followed by adequate budgetary resources in order not to limit the response capacity for protracted and new crises. However, it remains to be seen whether the Ukrainian crisis will have any medium to long-term consequences on other humanitarian crises. This will depend to a large extent on the duration and severity of the crisis in Ukraine and the evolution of the other crises.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 831.7 | | 0 | Score 1: 2 168.1 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Geographical coverage of the EU humanitarian aid: percentage of countries in need of humanitarian assistance (according to United Nations humanitarian appeals) benefitting from EU-supported operations. | 0% | 0% | 100% annually from 2022. | Target not achieved in 2021. 98% compared to a target of 100%. | On track |
| Percentage of humanitarian aid funding targeting actions in forgotten crises | 0% | 14% | > 15% annually from 2022 | Target achieved in 2021. 30% compared to a target of > 15%. | On track |
| Number of interventions of humanitarian aid operations funded by the Directorate-General for European Civil Protection (beneficiaries) | 0 | 14% | > 177 annually from 2022 | Target achieved in 2021. 590 compared to a target of > 177. | On track |
| Percentage of the initial budget for humanitarian aid allocated to education in emergencies | 0% | 14% | 10% annually from 2022 | Target achieved in 2021. 10% compared to a target of 10%. | On track |
| Number of children reached with EU ‘education in emergencies’ assistance | 0 | 14% | > 1.86 annually from 2022 | Target achieved in 2021. 2.3 compared to a target of > 1.86 | On track |
| Percentage of humanitarian assistance grants including elements of disaster preparedness, resilience and disaster risk reduction | 0% | 0% | 75% from 2024 | Milestone not achieved in 2021. 49% compared to a target of 61% | Deserves attention |

(\*) % of years for which the milestones or target have been achieved during the 2021-2027 period.

–EU humanitarian aid performed well in 2021 in providing emergency assistance to people in need worldwide, particularly the most vulnerable, hit by human-induced or natural disasters, with the COVID‑19 pandemic compounding the needs and, in many cases, complicating the response. The EU and its Member States remain the world’s largest humanitarian aid donor, contributing more than 33.4% of the global share of humanitarian aid contributions.

–Owing to strong operational knowledge and technical expertise of the EU’s unique network of humanitarian field offices spread over 40 non-EU countries, the EU was able to fund more than 126 million interventions and provide assistance in 98% of the countries for which the United Nations launched an appeal. The EU was able to take advantage of a comprehensive range of humanitarian partners (around 140 organisations, including United Nations agencies, the International Red Cross and Red Crescent Movement and non-governmental organisations), through which people in need can receive assistance, even in the areas of the world that are most difficult to reach.

–In 2021, 68% of the budget was spent in countries ranked as being at a ‘very high risk of disaster’ and more than 30% of the initial budget was spent on forgotten crises, thus contributing to the objective of providing needs-based delivery of EU assistance to people faced with natural and human-made disasters and protracted crises.

–The programme also contributed to the objective of building the capacity and resilience of vulnerable and disaster-affected communities. In 2021, approximately 49 million people worldwide benefited from disaster preparedness actions in disaster-prone regions, and disaster risk reduction was mainstreamed in 49% of EU-funded humanitarian operations.

–Examples of EU support in humanitarian crises include:

·humanitarian assistance programmes in Afghanistan, covering the needs of displaced populations, in particular in terms of food security, nutrition, health, hygiene, mine decontamination to protect humanitarian workers, protection and education, with a particular focus on the specific needs of women and girls;

·life-saving assistance and support to millions of people affected by the crisis in Syria;

·a response to the complex crisis in the Sahel for the benefit of the over 10 million forcibly displaced persons across the region, and a response to the food and nutrition crisis induced by climate conditions, poverty and insecurity, compounded by the socio-economic effects of the COVID‑19 pandemic; and

·the provision of health and nutrition, water and sanitation, protection, education in emergencies and support to host communities in response to the Venezuela crisis.

–Since 2021, the EU has been preparing for all scenarios in Ukraine to prepare the humanitarian response to be implemented in 2022. The EU is one of the largest humanitarian donors to eastern Ukraine, with an allocation of EUR 28.9 million in 2021. The EU humanitarian funding, delivered through United Nations agencies, non-governmental organisations and the International Committee of the Red Cross, helped people access healthcare, including better preparation and response to the COVID‑19 pandemic. The funding also supports the rehabilitation of damaged houses, schools and hospitals. It provides affected people with the means to meet their basic needs and access safe water, education in emergencies and protection services including legal support. In 2021, EU-funded humanitarian assistance reached more than 750 000 people in Ukraine’s government-controlled and non-government-controlled areas.

–Delivering principled humanitarian assistance is at times extremely difficult in certain protracted crises, where warring parties occasionally disregard humanitarian principles, violate international humanitarian law and interfere with the delivery of assistance in the field. South Sudan, Syria and the Democratic Republic of the Congo had the highest numbers of attacks. In addition to this, EU humanitarian partners may have to face difficult logistical challenges when delivering assistance in hard-to-reach areas, and other types of unexpected developments in the field that may hinder aid delivery.

–While able to meet acute humanitarian needs on a short-term basis in a highly effective manner, EU humanitarian aid is less well placed to address structural issues, in particular in the context of protracted crises. Here development actors would be best positioned to act, but are not always in a position to take over. Such situations underline the need to further develop the humanitarian–development–peace nexus so that humanitarian aid actors can exit a situation with the confidence that longer-term structural assistance will be available. For example, an initiative focusing on food insecurity was created in 2016.

–As expected, the direct and indirect consequences of the COVID‑19 pandemic were most acutely felt by populations already affected by humanitarian crises: refugees, internally displaced persons and people living in conflict zones and/or in areas devastated by climate change. The EU humanitarian response to needs resulting from the pandemic amounted to a total of approximately EUR 656 million. The EU immediately responded to increase the emergency response and preparedness to the pandemic, in particular in countries where healthcare systems are weak or at risk of being rapidly overwhelmed in case of epidemic outbreak. In addition, to allow Member States and partners to transport humanitarian staff and supplies to fight the COVID‑19 pandemic and to maintain the flow of humanitarian assistance hampered by the pandemic, the EU put in place the EU humanitarian air bridge.

CFSP

COMMON FOREIGN AND SECURITY POLICY

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |
| --- | --- |
| 1 172  Palestinian authority staff were trained by the EU border assistance mission in Rafah from 2015 to 2021. | 1 972  pieces of small arms and light weapons and pieces of ammunition were destroyed in the Western Balkans in 2021. |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 2 679.0 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0.7 |
| Total budget for 2021-2027 | 2 679.7 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The common foreign and security policy (CFSP) contributes to the EU’s objectives of preserving peace, strengthening international security, promoting international cooperation and developing and consolidating democracy, the rule of law and respect for human rights and fundamental freedoms.

Challenge

The EU faces several ongoing challenges in international security and stability. Key ones include organised crime, terrorism, people smuggling, migration, the proliferation of conventional weapons and weapons of mass destruction, and security threats stemming from weak rule of law in some non-EU countries.

It is therefore essential for the EU to support non-EU countries in their security sector reform and help them establish efficient civilian security services, thereby increasing their capacities to tackle internal and external security challenges.

Article 21 of the Treaty on European Union defines the common overarching principles and objectives of the EU’s external action, which are namely to ‘preserve peace, prevent conflicts and strengthen international security’. While the individual activities of Member States clearly contribute to achieving the goals of the EU’s common foreign and security policy, the combined political weight of the EU as a whole helps to provide a critical mass to respond to global challenges. Regarding non-proliferation and disarmament activities, the EU’s support provides significant benefits for the universalisation and effective implementation of international treaties, conventions and agreements addressing the proliferation of both conventional arms and weapons of mass destruction, including their delivery mechanisms.

Mission

The CFSP actions aim to ensure the EU’s ability to act and intervene quickly to address civilian crises and to promote nuclear non-proliferation and disarmament through support for multilateral action. Interventions in both areas help the EU ‘preserve peace, prevent conflict and strengthen international security’, as envisaged under Article 21 of the Treaty on European Union.

Objectives

The CFSP pursues two specific objectives:

7.to promote international cooperation in the field of security sector reform, to develop and consolidate democracy and rule of law, and promote human rights and fundamental freedoms;

8.to promote strategic cooperation with international partners on the non-proliferation of weapons of mass destruction and on combatting the illicit accumulation of small arms and light weapons and other conventional weapons, and to support the EU policy on conventional arms exports.

Actions

The CFSP pursues its objectives by the following means:

–Different types of civilian common security and defence policy missions, depending on the Council of the European Union’s mandate, for example advisory missions counselling host countries on drafting legislation in the security sector, or capacity-building missions providing hands-on operational activities.

–Different types of mandates of EU special representatives promoting EU policies all around the world.

–Actions related to non-proliferation and disarmament. These are implemented through agreements with international organisations, notably within the United Nations family, and for specific purposes with other select organisations in the field of non-proliferation and disarmament.

Delivery mode

The programme is implemented primarily through indirect management for civilian common security and defence policy missions and non-proliferation and disarmament actions, and to a lesser extent through direct management. The lead service for the programming of CFSP actions is the European External Action Service, while the Service for Foreign Policy Instruments is responsible for ensuring the sound financial management of the funds.

The CFSP is implemented on the basis of individual decisions adopted by the Council. Under Articles 42(4) and 43(2) of the Treaty on European Union, the Council adopts the legal framework for civilian common security and defence policy missions. On the basis of Article 28 TEU, Member States may decide to launch operational actions, for example stabilisation actions. As regards actions in the field of non-proliferation and disarmament, the Council adopts decisions on the basis of Articles 28(1) and 31(1) of the Treaty on European Union.

LINK TO THE 2014-2020 multiannual financial framework

Under the 2021-2027 multiannual financial framework, the CFSP remains a separate tool, but complementary with other conflict and crisis response instruments, for example the rapid response pillar of the Neighbourhood, Development and International Cooperation Instrument. It is expected to provide continued strong support for the non-proliferation of weapons of mass destruction and disarmament, with increased levels of support to match Member States’ ambitions.

Impact assessment

Reports on the implementation of the CFSP are produced annually.

For further information, please consult the 
[CFSP annual reports](http://europa.eu/!kB37Tp)
.

WEBSITE FOR more information

<https://ec.europa.eu/fpi/what-we-do/common-foreign-and-security-policy-preserving-peace-and-security_en>

Legal basis

Tasks are resulting from the European Commission’s prerogatives at institutional level, as provided for in Article 58(2) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union.

  

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 352.2 | 361.7 | 371.8 | 382.1 | 392.7 | 403.6 | 414.7 | 2 679.0 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 0.7 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0.7 |
| Total | 352.9 | 361.7 | 371.8 | 382.1 | 392.7 | 403.6 | 414.7 | 2 679.7 |

(\*) Only Article 15(3) of the financial regulation.

Financial programing: + EUR 3.3 million (+0%) compared to the legal basis.

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 352.0 | 351.9 |
| Payments | 345.9 | 328.7 |

–CFSP actions funded under the 2014-2020 multiannual financial framework are still being implemented, and there is a direct and strong link between the CFSP actions implemented under the 2014-2020 multiannual financial framework and the new 2021-2027 multiannual financial framework.

–In 2021, thanks to a flexible handling of the CFSP budget, the Service for Foreign Policy Instruments committed 100% of the available appropriations to cover CFSP entities mainly operating through indirect management, as nominated by Member States in the corresponding Council decisions. It managed to do this despite the COVID‑19 pandemic, which affected the planning, decision-making and implementation of the mandates of civilian common security and defence policy missions.

–However, the Commission had to implement mitigating measures due to the mismatch of political ambitions of Member States and the availability of CFSP funds. This involved splitting commitments for the first year of the mandates of the missions in Kosovo and Libya and of the Kosovo Specialist Chambers between the 2021 and 2022 budget years.

–Despite the significant challenges, all missions have remained operational throughout the pandemic. However, there is a systematic trend of budget under-consumption by the civilian common security and defence policy missions due to a lack of absorption capacity and realistic budget planning. This gap could further increase as the pandemic continues.

Contribution to horizontal priorities

EU budget contribution in 2021 (EUR million):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| 0 | 0 | Score 2: 15  Score 1: 284  Score 0: 53 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Percentage of contribution agreements with EU special representatives and common security and defence policy missions signed within 4 weeks after the adoption of the Council decision | 0 | 0% | 95% annually from 2025 | Milestone not achieved in 2021. 81.3% compared to a milestone of 88.0%. | Moderate progress |
| Percentage of civilian common security and defence policy missions coordinating with interventions financed under other EU instruments | 0 | 14% | 100% annually | Target achieved in 2021. 100% compared to a target of 100%. | On track |
| Percentage of common security and defence policy missions that do not require supervisory measures | 0 | 14% | 100% annually from 2024 | Milestone achieved in 2021. 91% compared to a milestone of 90%. | On track |
| Percentage of relevant non-proliferation and disarmament actions that are complementary to actions funded under the Peace, stability and conflict prevention programme of the Neighbourhood, Development and International Cooperation Instrument (Global Europe) | 0 | 14% | 100% annually | Target achieved in 2021. 100% compared to a target of 100%. | On track |

(\*) % of years for which the milestones or target have been achieved during the 2021-2027 period.

–The EU has significantly enhanced its operational capacity and footprint in recent years thanks to the key contributions to global peace and security of the 11 civilian common security and defence policy missions and operations in the framework of the EU’s integrated approach to external conflicts and crises. This enhances the security of the EU and its citizens.

–The European Commission provided the necessary funds in a timely manner through contribution agreements, which ensured the missions’ operational capacity. The funds allowed the recruitment and training of staff by the missions and the provision of the logistical support to carry out the operations. Nevertheless, civilian missions operating in sometimes insecure environments are facing continuous difficulties in recruiting the required number of staff with the necessary skills to carry out the relevant job functions.

–Considerable progress in the area of finance and procurement could be achieved through the streamlining of administrative and operational procedures in common security and defence policy missions and thanks to the expertise of the mission support platform’s staff.

–Furthermore, since its creation, the mission support platform acted as a knowledge centre on procurement and finance and developed specific tools for the missions to use to achieve a higher level of harmonisation of procedures and thus enhance the civilian missions’ responsiveness. However, public local tendering procedures in difficult theatres of operation remain challenging, with a potential negative impact on the performance of the missions and the achievements of their mandates, including with respect to budget absorption.

–In 2021, the Commission continued to support efforts to curb the proliferation of weapons of mass destruction and the illicit accumulation and trafficking of small arms, light weapons and other conventional weapons by launching eight new non-proliferation and disarmament actions. These actions started in most cases in the fourth quarter of 2021 and in some cases only in December 2021.

–In addition, the implementation of 29 non-proliferation and disarmament actions launched during the 2016-2020 period continued throughout 2021. The main challenge for these 29 actions continued to be the COVID‑19 pandemic and the related travel restrictions, as in‑person workshops, expert missions, trainings and conferences supporting the universalisation and effective implementation of various non-proliferation legal instruments had to be postponed or replaced by virtual or hybrid events. In response, the Commission approved the extension of 13 actions in 2021, thus providing additional time to complete all activities.

DOAG

DECISION ON THE OVERSEAS ASSOCIATION, INCLUDING GREENLAND

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |
| --- | --- | --- |
| 6  childcare organisations in Bonaire created an inclusive pilot initiative for children with special needs to ensure no child is left behind. | 75%  of Greenland’s children attend preschool, which is 6 percentage points higher than 7 years ago. | > 300   remote medical consultations have been possible since 2019 thanks to the EU’s support for an improved internet connection to the remote islands of Wallis and Futuna, enabling the territory’s health agency to develop telemedicine. |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 500.0 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 500.0 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The new decision on the association of the overseas countries and territories (OCTs), including Greenland, with the EU (DOAG) provides an updated legal framework for supporting action by the 13 OCTs in tackling the challenges they face and ensuring their economic and social development. For the first time, the DOAG also incorporates Greenland, placing all OCTs firmly within the same instrument and under the same source of funding: the EU budget. (OCTs other than Greenland previously benefited from the European Development Fund).

The 13 OCTs are not sovereign countries. They are part of the territory of three EU Member States (Denmark, France and the Netherlands), but not of the EU, though they have been associated with the EU since the Treaties of Rome. Except for Wallis and Futuna, OCTs are not eligible for development aid under Organisation for Economic Co-operation and Development criteria.

Challenge

OCTs are especially vulnerable to climate change and environmental degradation due to their geography (all are islands). At the same time, almost all are located in global biodiversity hotspots and – together with the outermost regions – they account for the vast majority of EU biodiversity. They face major challenges in terms of ensuring economic diversification (including moving away from an overreliance on potentially volatile tourism revenues), competitiveness, digital transformation and connectivity (several of the OCT islands are remote and isolated). Finally, the OCTs in the Caribbean also face migratory pressures due to the crisis in Venezuela.

The new DOAG provides an updated legal framework for supporting OCTs’ actions in tackling these challenges and ensuring their economic and social development.

The EU has an interest in supporting the OCTs’ economic and social development, as they share EU values and policy priorities and are important EU ambassadors in their regions. The OCTs can benefit from the EU’s significant expertise in sustainable development.

Mission

The general objective of the DOAG is to promote the economic and social development of the OCTs and to establish close economic relations between them and the EU as a whole. The DOAG will pursue this general objective by enhancing their competitiveness, strengthening their resilience, reducing their economic and environmental vulnerability and promoting cooperation between them and other partners, including the EU as a whole.

Objectives

The association between the EU and the OCTs is based on the pillars of political, trade and cooperation. The specific objectives of the DOAG are:

9.to foster and support cooperation with OCTs, including addressing their major challenges and reaching the United Nations’ sustainable development goals;

10.to support and to cooperate with Greenland in addressing its major challenges, such as raising the education level, and to contribute to the capacity of its administration to formulate and implement national policies.

Actions

Cooperation through the DOAG takes place via the following main types of action:

-geographic/bilateral cooperation with individual OCTs;

-regional programmes benefiting OCTs in the Caribbean, Pacific and Indian Ocean regions, based on shared needs;

-intraregional programmes for cooperation between one or a group of OCTs and one or more non-OCT neighbours, who would participate with their own funds;

-technical assistance and institutional support;

-additionally, the DOAG sets aside a ‘reserve’ to help OCTs respond to unexpected circumstances, emerging challenges (e.g. migratory pressures) and new international priorities.

Delivery mode

The programme is implemented under direct management by the Commission from its headquarters and/or through the EU delegations, and under indirect management by entities such as Member State agencies or international organisations that ensure a level of protection of the EU’s financial interests equivalent to that under direct management. Indirect management may also be entrusted to partner countries or the bodies they designate.

The lead directorate-general is DG International Partnerships, in cooperation with DG Regional and Urban Policy, DG Trade and other line DGs – especially on the external dimensions of internal policies such as climate, environment, energy, health and digital.

LINK TO THE 2014-2020 multiannual financial framework

Under the 2014-2020 multiannual financial framework, cooperation with OCTs was carried out under both the overseas association decision (which also applied to Greenland) and the additional Greenland decision. For simplification purposes, and taking into account the 2017 midterm evaluation of external financing instruments, the overseas association decision and the Greenland decision were merged into a single new DOAG under the 2021-2027 multiannual financial framework.

With the ‘budgetisation’ of the European Development Fund under the 2021-2027 multiannual financial framework, the EU budget became the unified source of financing for all OCTs. For the first time, the new DOAG envisages an earmarked envelope for strengthened cooperation with non-OCT neighbours and two horizontal spending targets: 25% of the overall DOAG envelope for climate-change objectives; and 7.5% of annual spending for biodiversity objectives in 2024 and 10% in 2026 and 2027.

With the new external financing architecture, OCTs will be eligible for investment financing from InvestEU, as the DOAG no longer provides for a dedicated OCT investment facility.

OCTs are also eligible for the thematic and rapid response actions of the Neighbourhood, Development and International Cooperation Instrument – Global Europe, and as a matter of principle they are eligible for EU horizontal programmes.

Impact assessment

The impact assessment of the association of the OCTs with the EU was carried out in 2018.

For further information please consult: 
<https://europa.eu/!gh96VH>

WEBSITE FOR more information

<https://europa.eu/!JF97ku>

Legal basis

Council Decision EU 2021/1764.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 67.0 | 69.0 | 70.0 | 71.4 | 72.9 | 74.3 | 75.4 | 500.0 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 0.0 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 0.0 |

(\*) Only Article 15(3) of the financial regulation.

Financial programing: + EUR 0.0 million (+ 0%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 63.3 | | |  | | --- | | 500.0 | | |  | | --- | | 13% | |
| Payments | |  | | --- | | 0.7 | |  | |  | | --- | | 0% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 63.3 (\*) | 67.0 |
| Payments | 0.7 | 25.5 |

(\*)
   The remaining EUR 3.7 million of the initial voted budget has been automatically carried over to 2022 and will be implemented during 2022.

-Despite the late adoption of the DOAG (in October 2021), 11 out of the 15 programming documents for OCT cooperation (called multiannual indicative programmes) were adopted. The remaining four are scheduled for 2022. The implementation of the financial assistance also led to the adoption of three Commission decisions in December 2021: on Greenland (EUR 60 million for education), support measures (Technical Cooperation Facility, EUR 1.5 million) and support for the OCT association (EUR 1 million).

-In 2022, in relation to the EUR 98.5 million in commitments, six annual action plans for OCTs are ongoing, in French Polynesia (EUR 31.1 million), New Caledonia (EUR 30.9 million), Saba (EUR 4.1 million), Saint Barthélemy (EUR 2.5 million), Saint Pierre and Miquelon (EUR 27 million) and St Eustatius (EUR 2.9 million).

-For 2023, nine new annual action plans are envisaged with up to EUR 96.2 million in commitments, consisting of four action plans for bilateral programmes in OCTs, three for regional cooperation and two for support measures. Of these nine action plans, two are already under formulation in 2022 with a view to early adoption in 2023: a regional programme for the French southern and Antarctic lands (biodiversity, EUR 4 million); and a programme for support measures (EUR 1.5 million).

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| 0 | 5 | Score 1: 60.0  Score 0: 3.3 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| For OCTs except Greenland, exports of goods and services as a percentage of gross domestic product | 19.2% |  |  | No results | No data |
| For OCTs except Greenland, total Government revenue as a percentage of gross domestic product | 26.9% |  |  | No results | No data |
| For Greenland, exports of goods and services as a percentage of gross domestic product | 26.4% |  |  | No results | No data |
| For Greenland, the percentage of the fisheries sector in total exports | 91.4% |  |  | No results | No data |

(\*) % of target achieved by the end of 2021.

Implementation has started. However, it is still too early to report on the performance assessment of these programmes.

MFA

FINANCIAL STATEMENT FOR MACROFINANCIAL ASSISTANCE

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| EUR 1.7 billion  was disbursed in 2021 to support the financial stability of EU partner countries, including in the context of the COVID-19 crisis. | 10  MFA operations received disbursements in 2021. | EUR 6.2 billion  in loans has been disbursed to Ukraine under three regular MFA operations since 2014, and two emergency operations in 2020 and 2022. | EUR 1.4 billion  in loans was made available to Tunisia between 2014 and 2021, to support the country in responding to the economic downturn following the 2011 revolution, the economic and political transition process and the post-COVID-19 economic recovery. |
| EUR 1.08 billion  in loans was made available to Jordan between 2013 and 2021, to support the country after pressing regional conflicts and the COVID-19 pandemic. |  |  |  |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 349.6 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 349.6 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

Macrofinancial assistance (MFA) is a form of financial aid extended by the EU to partner countries experiencing a balance-of-payments crisis.

Challenge

The economic stability and prosperity of its neighbourhood are of key geostrategic importance for the EU. In particular, all EU Member States have a strong interest in supporting neighbouring countries experiencing a balance-of-payments crisis or an unprecedented economic shock (such as the COVID-19 pandemic), to minimise adverse macroeconomic and social spillover. EU-level action is thereby justified, as the benefits of prosperity, stability and security in the EU’s neighbourhood flow to all EU Member States.

Mission

MFA is an EU financial instrument extended to partner countries in the enlargement and European Neighbourhood Policy regions that are experiencing a balance-of-payments crisis. Its primary objective is to help countries overcome acute economic crises and restore their economy on a sustainable growth path, which is to be achieved through economic adjustments and structural reforms that are included in the policy conditionality of the instrument. MFA is provided in conjunction to International Monetary Fund financing.

MFA is part of the EU’s toolkit for macroeconomic stabilisation, which also includes the balance-of-payments assistance mechanism for Member States outside the euro area, and the rescue mechanisms for the euro area created in response to the global financial crisis.

Objectives

MFA has the following specific objectives.

11.MFA fulfils a fundamental macroeconomic stabilisation function by addressing exceptional external financing needs faced by neighbouring countries and restoring their economy to a sustainable path.

12.MFA provides a strong incentive for macroeconomic adjustment and policy reform by means of strict conditionality, and supports the EU’s accession, pre-accession and association agendas in the beneficiary countries.

13.MFA complements the other EU external instruments, as well as resources made available by international financial institutions and other donors, by helping to ensure that beneficiary countries put in place appropriate macroeconomic frameworks and sound economic policies – which are preconditions for the success of other projects by the EU and the donor community aiming at sustainable socioeconomic development.

Actions

MFA provides financial support to partner countries facing a balance-of-payments crisis. The amount of MFA provided is calculated on the basis of the residual financing needs under an International Monetary Fund programme. MFA is predominantly provided in loans, or a mix of loans and grants (the precise mix in any specific assistance depends on criteria such as the receiving country’s level of development and its debt sustainability/creditworthiness). For the loans, the EU passes on to the beneficiary country its own funding costs (namely the interest rate it has to pay to raise funds by issuing bonds). This allows the countries receiving assistance to benefit from the low rates available to the EU as a top-rated borrower. The Commission typically disburses MFA assistance in instalments strictly tied to the beneficiary country’s progress with respect to:

–macroeconomic and financial stabilisation and economic recovery;

–implementation of the agreed policy reforms, as outlined in the memorandum of understanding;

–sound progress with the International Monetary Fund programme, and adherence to the respect for human rights, the rule of law and effective democratic mechanisms (the ‘political pre-condition’).

Delivery mode

MFA is implemented in direct management by the Commission, under the lead of DG Economic and Financial Affairs and with the participation of other Commission services and the European External Action Service.

LINK TO THE 2014-2020 multiannual financial framework

In the 2021-2027 multiannual financial framework, MFA will maintain its current legal status, with assistance being granted on the basis of case-by-case decisions adopted by ordinary legislative procedure under Article 209, 212 or 213 of the Treaty on the Functioning of the European Union. MFA loans will be guaranteed by the new External Action Guarantee, which is backed by the new Common Provisioning Fund.

Impact assessment

All final reports of completed ex post evaluations of MFA operations are published at: 
<https://europa.eu/!pP67Jx>

WEBSITE FOR more information

<http://europa.eu/!Uy76Wq>

Legal basis

Ad hoc decisions under Articles 209, 212 and 213 of the Treaty on the Functioning of the European Union.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 0.2 | 50.0 | 56.7 | 57.4 | 59.3 | 61.5 | 64.5 | 349.6 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities |  |  |  |  |  |  |  |  |

(\*) Only Article 15(3) of the financial regulation.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments (1) | |  | | --- | | 0.2 | | |  | | --- | | 349.6 | | |  | | --- | | 0% | |
| Payments (1) | |  | | --- | | 0.4 | |  | |  | | --- | | 0% | |

(1) MFA is predominantly provided in the form of loans, underpinned by guarantees from the EU budget. The budget implementation figures listed in this fiche refer only to the small proportion of MFA implemented in the form of grants from the EU budget. In 2021, EUR 1 665 million in MFA funds was disbursed in loans, while no grants were disbursed in 2021. The budget lines for commitments related to provisioning of MFA loans in 2021 amounted to EUR 146.1 million.

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 0.2 | 56.4 |
| Payments | 0.4 | 26.0 |

–As part of the EU’s global response to the COVID-19 pandemic, in 2020 the EU approved a EUR 3.0 billion MFA package for 10 enlargement and neighbourhood partners, to help them cope with the economic fallout.

–This package was further implemented during 2021. By the end of 2021, eight of the planned operations had been concluded, with a total disbursement of EUR 2.5 billion in loans. Two remaining programmes are currently under implementation, with the disbursement of the final tranche planned for 2022.

–In the light of Russia’s current invasion of Ukraine, on 24 February 2022 the European Parliament and the Council adopted a decision to provide emergency MFA to Ukraine, in the form of EUR 1.2 billion in loans. The release of the first instalment of EUR 600 million took place in March 2022, and the second in May 2022.

–The Commission’s proposal for additional MFA to Moldova of EUR 150 million is currently awaiting endorsement by the European Parliament and the Council, with a view to the first disbursement occurring by June 2022.

–Besides the financial assistance provided for in the context of the COVID-19 pandemic, the implementation of a third regular MFA programme for Jordan was also taken forward, with the release of the second tranche on 20 July 2021. This third MFA programme for Jordan is expected to be finalised in 2023.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| 0 | 0 | Score 0\*: 0.2 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with likely but not yet clear positive impact on gender equality.

Performance assessment

–By the end of 2021, a total of EUR 2.5 billion in loans had been disbursed to provide assistance in the context of the COVID-19 pandemic.

–Seven of the 10 approved operations have been fully completed: Albania (EUR 180 million), Jordan (EUR 200 million), Kosovo (
[12](#footnote13)
) (EUR 100 million), Moldova (EUR 100 million), Montenegro (EUR 60 million), North Macedonia (EUR 160 million) and Ukraine (EUR 1 200 million).

–The MFA operation to Georgia has only partially been completed. The first disbursement of EUR 75 million took place in November 2020. The second instalment was cancelled in view of the non-fulfilment of an important policy condition related to the judicial system.

–The two remaining programmes for Bosnia and Herzegovina (EUR 250 million in total) and Tunisia (EUR 600 million in total) have already received their first disbursements.

–Besides the financial assistance provided for in the context of the COVID-19 pandemic, the implementation of a third regular MFA programme for Jordan (EUR 500 million in total) was also taken forward, with the release of the second tranche on 20 July 2021.

–The evaluations carried out so far have concluded that MFA operations do contribute, albeit sometimes modestly and indirectly, to improving external sustainability and macroeconomic stability and achieving structural reforms through conditionality in the recipient country.

–In most cases, MFA operations had a positive effect on the balance of payments of the beneficiary country, and contributed to relaxing their budgetary constraints. They also helped maintain or regain market access and led to slightly higher economic growth.

–An important attribute of the EU’s MFA versus alternative sources of financing is its highly concessional terms, i.e. relatively low interest rates, long maturity and a long grace period. This generates fiscal space and contributes to public debt sustainability in the beneficiary countries.

–The ex post evaluations also confirm that previous MFA programmes were implemented efficiently, and were well coordinated with other EU programmes and with the programmes of other donors (notably the International Monetary Fund and the World Bank). MFA policy conditionality is separate from International Monetary Fund conditionality, but is complementary and/or reinforcing.

–However, given its specificities, MFA cannot be linked directly to identifiable outputs, and its concrete achievements are therefore difficult to assess, as effects on macroeconomic variables over time cannot solely be attributed to MFA operations.

–MFA disbursements are sometimes delayed compared to initial expectations. External factors that might impact programme timelines include: the beneficiary country not fulfilling the political preconditions; the International Monetary Fund programme being off track or having expired; the slow implementation of agreed reforms; and changes of government resulting in shifting policy priorities.

–The COVID-19 pandemic has severely challenged the already struggling economies of partners in the southern and eastern neighbourhoods that benefit from MFA. As a consequence, some of the macroeconomic indicators from these countries (e.g. external debt for Jordan and Tunisia) deteriorated in 2020 but most of the enlargement and neighbourhood economies recovered in the course of 2021.

–The most common shortcomings noted in the evaluations are the operation’s lack of visibility and, in some cases, the lengthy legislative approval process for a crisis instrument. The experience with the COVID-19 MFA package and the new emergency MFA to Ukraine shows that the current set-up of MFA can allow for the flexibility necessary for a swift adoption. The Commission worked with the Parliament and the Council to agree on the use of existing urgency procedures that allowed the assistance to be adopted within 1 month of the Commission’s proposal.

IPA III

INSTRUMENT FOR PRE-ACCESSION ASSISTANCE

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 5 500 000  vaccination doses were provided to refugee infants in Turkey by the end of 2021 under the Facility for Refugees in Turkey. | 8 826  housing units were built under the regional housing programme by the end of 2021. | 100 000  students, researchers, staff and others participated in the Erasmus+ activities involving Western Balkans partners in 2014-2020. | 75  monitoring stations were established in Montenegro in 2019-2020 with the support of the fund, in order to monitor water and underground water levels, quantity and quality in line with the EU water framework directive. |
| 75 000  people in Kosovo (\*\*) were connected to district heating in Pristina and Gjakova in 2014-2020, reducing air pollution and increasing energy efficiency. | 400  organisations working on preventing and tackling violence against women in the Western Balkans and Turkey received regional support under the Civil Society Facility in 2014-2020. | 7 800  young people benefited from support under the youth guarantee scheme in North Macedonia in 2014-2021. | 12 000  educational facilities in Turkey were upgraded by 2021 under the Facility for Refugees in Turkey. |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

(\*\*)This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 14 748.7 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 31.3 |
| Total budget for 2021-2027 | 14 780.0 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The Instrument for Pre-accession Assistance (IPA) is the means by which the EU has been supporting reforms in the enlargement region with financial and technical assistance since 2007.

Challenge

For candidate countries and potential candidates, the path towards accession to the EU is a process of gradual and steady convergence with membership criteria and the values and principles of the European Union. This requires ambitious political and economic reforms.

Ensuring progress on the fundamentals (rule of law, fundamental rights, functioning democratic institutions and a market economy) remains a key challenge that IPA will continue to pursue. Addressing the socio-economic divide between the IPA beneficiaries and the EU, linked to their weak competitiveness, high unemployment and significant brain drain – all challenges that are compounded by the COVID‑19 pandemic – will be of utmost importance. Regional cooperation, good neighbourly relations and reconciliation efforts to overcome open bilateral issues and the legacy of the past will continue to be a priority. These challenges will have to be addressed in a wider context where transition to a sustainable, socially just, resilient and climate neutral economy needs to be achieved as a global imperative and where digital transformation will continue to shape economies and societies, including those of the IPA beneficiaries.

In light of the evolution of bilateral relations, IPA III assistance will further strengthen the links between the political framework of our relations with Turkey. Hence, EU financial support will prioritise key areas, notably civil society, people to people contact, climate change and proper functioning of the Customs Union. In addition, following the European Council conclusions of June 2021, the Commission put forward a proposal for an additional EUR 3.5 billion funded exclusively from the EU budget to continue providing support to refugees and host communities. Due to the protracted nature of the refugee crisis, the assistance will continue the shift from humanitarian to development aid, with the double objective of ensuring continuity of support while transitioning to the national structures.

Mission

IPA III will support beneficiaries in adopting and implementing the political, institutional, legal, administrative, social and economic reforms required to comply with EU values and to progressively align with EU rules, standards, policies and practices, with a view to future EU membership, thereby contributing to mutual stability, security, peace and prosperity.

Objectives

IPA III has the following specific objectives:

1.to strengthen the rule of law, democracy, the respect of human rights and fundamental freedoms, including through the promotion of an independent judiciary, reinforced security and the fight against corruption and organised crime, compliance with international law, freedom of media, academic freedom and an enabling environment for civil society;

2.to promote non-discrimination and tolerance, ensure respect for the rights of persons belonging to minorities, promote gender equality and improve migration management, namely by managing borders, tackling irregular migration and addressing forced displacement;

3.to reinforce the effectiveness of public administration and to support transparency, structural reforms and good governance at all levels, including in the areas of public procurement and State aid;

4.to shape the rules, standards, policies and practices of the IPA III beneficiaries in alignment with those of the EU and to reinforce regional cooperation, reconciliation, good neighbourly relations and people-to-people contacts and strategic communication;

5.to strengthen economic and social development and cohesion, with particular attention to youth, including through quality education and employment policies, by supporting investment and private sector development, with a focus on small and medium-sized enterprises and on agriculture and rural development;

6.to reinforce environmental protection, increase resilience to climate change, accelerate the shift towards a low-carbon economy, develop the digital economy and society and strengthen sustainable connectivity in all its dimensions;

7.to support territorial cohesion and cross-border cooperation across land and maritime borders, including transnational and interregional cooperation.

Actions

Actions are based on the IPA III programming framework (Article 7 of Regulation (EU) 2021/1529 of the European Parliament and of the Council establishing the Instrument for Pre-accession Assistance (IPA) III; C(2021) 8914 final). It reflects the specific objectives of the IPA III regulation and is focused on the priorities of the enlargement process, articulated through five thematic windows:

–window 1: rule of law, fundamental rights and democracy;

–window 2: good governance, EU acquis alignment, good neighbourly relations and strategic communication;

–window 3: the green agenda and sustainable connectivity;

–window 4: competitiveness and inclusive growth;

–window 5: territorial and cross-border cooperation.

Actions are deployed, to the benefit of beneficiaries, through annual or multiannual action plans at national or regional level, or through horizontal initiatives targeting specific types of partners (e.g. civil society) or cross-cutting issues. In addition, a number of cross-cutting themes, such as climate change, environmental protection, civil society, gender equality, rights-based approach, is mainstreamed and therefore can be implemented under the five windows.

Delivery mode

IPA III is implemented through direct, indirect and shared management. The Directorate-General for Neighbourhood and Enlargement Negotiations is the leading service. The Directorate-General for Agriculture and Rural Development is responsible for rural development programmes and the Directorate-General for Regional and Urban Policy for cross-border cooperation programmes between IPA beneficiaries and EU Member States.

LINK TO THE 2014-2020 multiannual financial framework

IPA II had been the catalyst for important reforms. IPA III builds on these achievements and ensures their continuation in terms of objectives and priorities. It further improves the alignment of assistance with the enlargement strategy.

The programming of IPA III will ensure a stronger performance-based approach while at the same time guaranteeing the principle of fair share. There will also be a stronger focus on relevance and maturity at the Commission selection stage, with the aim of ensuring stronger linkage with the reform agenda, accelerating implementation and reducing backlog.

Impact assessment

The impact assessment of the IPA III was carried out in 2018.

For further information, please consult: 
<https://europa.eu/!KK86Tv>
.

WEBSITE FOR more information

<https://europa.eu/!Yq39bt>

Legal basis

Regulation (EU) 2021/1529 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 1 883.8 | 2 011.5 | 2 531.1 | 2 016.4 | 2 059.7 | 2 101.7 | 2 144.6 | 14 748.7 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities | 31.3 | p.m. | p.m. | p.m. | p.m. | p.m. | p.m. | 31.3 |
| Total | 1 915.1 | 2 011.5 | 2 531.1 | 2 016.4 | 2 059.7 | 2 101.7 | 2 144.6 | 14 780.0 |

(\*) Only Article 15(3) of the financial regulation.

Financial programming + EUR 587.2 million (+4%) compared to the legal basis.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 1 571.5 | | |  | | --- | | 14  780.0 | | |  | | --- | | 11% | |
| Payments | |  | | --- | | 40.1 | |  | |  | | --- | | 0% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 1 566.3 | 1 901.4 |
| Payments | 35.4 | 65.3 |

–2021 was the year of the programming of the funds, in close coordination with the beneficiary countries. Despite the adoption of the legal basis in June 2021, the Commission implemented 84% of the available 2021 IPA III commitment appropriations by the end of the year. The remaining appropriations were carried over to 2022.

–In 2021, EUR 1.5 billion was committed, including EUR 446.9 million through bilateral actions for Western Balkans beneficiary countries, EUR 165.3 million for Turkey and EUR 919 million through multi-country actions in the annual action plan.

–Multiannual action plans at multi-country level were also adopted in 2021.

–The amounts carried over from 2021 (EUR 318 million) will be used in 2022 to support migration management in the Western Balkans, the refugees and host communities in Turkey, and rural development and cross-border cooperation programmes.

–In 2021, the programming followed the key criteria of the IPA III programming framework: the policy-driven approach, the relevance of proposed IPA interventions, the maturity of the proposals and the progress of the beneficiaries on their enlargement agenda. The programming took into account the performance of each beneficiary and the fair share principle, by targeting and adjusting assistance to the specific situation of each beneficiary.

–For the Western Balkans, the assistance reflects the priorities of the economic and investment plan and of the green agenda for the Western Balkans.

–For Turkey, the assistance reflects developments in the EU’s relations with the country and the European Council’s offer of a possible positive agenda and Turkey’s desire to adopt the European Green Deal.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 509.3 | | 33 | Score 2: 42.8  Score 1: 498.4  Score 0: 1 025.1 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Composite indicator on political criteria - Western Balkans | 2.1 | 0% | 2.8 in 2027 | 2.1 compared to a target of 2.8 | On track |
| Composite indicator on political criteria - Turkey | 1.8 | < 0% | 2.0 in 2027 | 1.5 compared to a target of 2.0 | Deserves attention |
| Readiness of enlargement countries on public administration reform  - Western Balkans | 2.5 | 0% | 2.7 in 2027 | 2.5 compared to a target of 2.7 | On track |
| Readiness of enlargement countries on public administration reform - Turkey | 3.0 | < 0% | 3.2 in 2027 | 2.5 compared to a target of 3.2 | Deserves attention |
| Composite indicator on Union acquis alignment - Western Balkans | 2.5 | 0% | 2.7 in 2027 | 2.5 compared to a target of 2.7 | On track |
| Composite indicator on EU acquis alignment - Turkey | 2.9 | 0% | 3.1 in 2027 | 2.9 compared to a target of 3.1 | On track |
| Composite indicator on economic criteria - Western Balkans | 2.3 | 50% | 2.5 in 2027 | 2.4 compared to a target of 2.5 | On track |
| Composite indicator on economic criteria - Turkey | 4.5 | 0% | 4.7 in 2027 | 4.5 compared to a target of 4.7 | On track |
| Number of cross-border partnerships established, formalised and implemented | 1 085 |  | 1 508 in 2027 |  | No data |

(\*) % of target achieved by the end of 2021.

–No project was finalised in 2021 due to the legal basis having only been adopted in June 2021.

2014-2020 MULTIANNUAL FINANCIAL FRAMEWORK – IPA II

Prepared in partnership with the beneficiaries, IPA II set a new framework for providing pre-accession assistance for the 2014-2020 period.

IPA is a unique programme that supports IPA beneficiaries in their ambitious political and economic reforms and in their progressive alignment with the European Union’s rules, standards, policies and practices on their path towards EU membership. It fosters reforms in candidate and potential candidate countries through a combination of financial assistance and policy dialogue, preparing them for the rights and obligations that come with EU membership.

Budget

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2014-2020 Budget | Implementation rate |
| Commitments | |  | | --- | | 12 813.1 | | |  | | --- | | 12 893.6 | | |  | | --- | | 99% | |
| Payments | |  | | --- | | 7 527.6 | |  | |  | | --- | | 58% | |

–The payment rate is the result of IPA II being first and foremost an investment budget that finances projects that run over a long period of time.

–In addition, a true partnership with the beneficiary countries is crucial for the performance of the fund. Most of the fund is thus implemented based on an agreement signed with the beneficiary countries, which needs to occur within 1 year after appropriations are committed. Afterwards, it is recommended that the countries themselves identify the projects relevant for the support, to ensure true ownership. To this aim, the actual contracts can be signed within 3 years after the signature of the agreement, to ensure sufficient time for the careful selection of projects.

–There are also actions that are implemented in cooperation with international financial institutions (such as blending and guarantees), which have a long implementation period (on average 7-8 and 10 years, respectively).

–On average 3.6 years are needed to pay the total costs of legal commitments, less than the internal Commission target of 4 years for external action programmes. Indeed, in recent years, the Commission accelerated the implementation of the pre-accession assistance, in line with the programme’s life cycle under the 2014-2020 multiannual financial framework.

–In 2021, 47% of IPA II payments were dedicated to actions in social infrastructure and services (which include support to governments and civil society), 24% to multisector actions, 17% to economic infrastructure and services, and 12% to production sectors. 63.7% were implemented through indirect management, 33.2% through direct management and 3% through shared management.

–In the 2021 payments, the implementation of the Facility for Refugees in Turkey – a coordination mechanism covering several financing instruments, including IPA II – continued with EUR 245 million as a direct grant to the Turkish authorities financed by IPA II to support vulnerable refugees via direct cash support.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Cross-border cooperation programmes concluded (IPA–IPA) | 8 | 50% | 10 in 2023 | 9 out of 10 programmes | Moderate progress |
| Cross-border cooperation programmes concluded (IPA–EU Member States) | 12 | 100% | 10 in 2023 | 10 out of 10 programmes | Moderate progress |

(\*) % of target achieved by the end of 2021.

–Candidate countries and potential candidates need to implement difficult and time-consuming structural reforms to make progress in the fundamental areas of the political accession criteria, including sustainable and far-reaching political and societal transformation. Advancing in the fundamental area of the economic criteria, which are interlinked with the political criteria, is also challenging.

–The programme is making progress towards achieving its overall objectives despite the large influence of external factors. For enlargement to become a reality, a firm commitment to the principle of ‘fundamentals first’, including political will, remains particularly essential.

–Regarding political reforms, there are some examples of good progress. IPA has notably supported the training of 4 000 judges and the development or revision of 100 policies to reinforce the effectiveness of public administration and good governance. One key example of good progress supported by IPA is the justice reform. On the other hand, Turkey is experiencing very serious reform reversals regarding the functioning of the judiciary and freedom of expression. Turkey’s continued backsliding in areas linked to political criteria, combined with a low absorption capacity, led to a significant cut in pre-accession support following the 2017 Council decision.

–Candidate countries and potential candidates from the Western Balkans made limited progress on meeting the economic criteria, according to the 2021 enlargement reports. Turkey, on the other hand, is considered to be well advanced in the area of the functioning market economy (with a ‘good level’ as far as competitive pressure is concerned), with no negative impact following the funds being cut. The role of IPA is thus limited in the 2014-2020 period.

–With respect to the alignment with the EU acquis, while Turkey experienced some reversal, the Western Balkans partners have generally improved their preparations. One of the key tools supported via IPA is the Technical Assistance and Information Exchange Instrument, notably used intensively by Montenegro, which has greatly improved its preparedness during the period. This tool allows to share EU best practices and support the alignment of legislation in all sectors of the acquis.

–The rural development programmes are very successful: all our partners are making good progress in aligning with EU standards in the agri-food sector. Progressively upgrading towards these standards is both a political and economic priority.

–A very important aspect of IPA is the cooperation between the Member States and IPA countries. In particular recently, as the IPA supported several packages to tackle the challenges posed by the COVID‑19 crisis in the Western Balkans. By the end of 2021, respectively 89% and 61% of the IPA-related COVID‑19 financial assistance package had been achieved.

–In terms of fostering greater regional integration within the Western Balkans, IPA has focused its support on civil society and the cultural and creative sectors as key drivers of reconciliation in the region. In 2021 still, three new projects were signed focusing on regional cooperation between civil society organisations and a programme in support of the economic sustainability of media business in the region. The regional technical assistance for civil society organisations programme organised more than 60 trainings, consultations and people-to-people events in 2021 for more than 2 000 participants.

EGF

EUROPEAN GLOBALISATION ADJUSTMENT FUND FOR DISPLACED WORKERS

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |  |
| --- | --- | --- | --- |
| 55  applications were received between 2014 and 2020, including six applications received in 2020, excluding those withdrawn or rejected. | 55 168  workers were targeted between 2014 and 2020, including 9 205 workers targeted in mobilised applications received in 2020. | 4 099  young people not in employment, education or training were targeted between 2014 and 2020. | EUR 175 220 016  in contributions from the EGF was requested by 12 Member States between 2014 and 2020, including about EUR 18 million requested through the 2020 applications. |
| 60%  is the average rate of beneficiaries who found employment following an EGF intervention between 2014 and 2020. |

(\*)Key achievements in the table state which period they relate to. Many come from the implementation of the predecessor programmes under the 2014-2020 multiannual financial framework. This is expected and is due to the multiannual life cycle of EU programmes and the projects they finance, where results often follow only after completion of the programmes.

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 1 451.4 (\*\*) |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 1 451.4 |

(\*)Only Article 15(3) of the financial regulation.

(\*\*)In addition, an amount of EUR 16.04 million was used in 2021 from the 2014-2020 programming period to cover EGF cases that were submitted by the Member States at the end of 2020 but paid from the 2021 budget.

Rationale and design of the programme

With a view to achieving economic, social and territorial cohesion in the EU, it is necessary to develop a coordinated strategy for employment. This strategy should particularly focus on the promotion of a skilled, trained and adaptable workforce as well as on labour markets’ responsiveness to economic change. To this end, the Union shall contribute to a high level of employment by supporting and, if necessary, complementing Member State’s action through the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers (EGF) to co-finance measures to support redundant workers in case of major restructuring events. These events, by their scale and effects, cause a significant impact and can test the limits of what regular national labour market programmes are able to provide to assist displaced workers.

Challenge

Globalisation and technological change are likely to increase further the interconnectedness and interdependence of world economies. Labour reallocation is an integral and inevitable part of such economic change. These trends risk further tilting the already unequal distribution of the benefits from globalisation, causing a significant impact on the people and regions adversely affected.

Ensuring a fair distribution of the benefits of change calls for offering assistance to displaced workers. When the number of displaced workers is particularly large, providing assistance may go beyond the means of the individual Member State, requiring EU-level action. In particular, EU intervention through the EGF generates European added value by increasing the number, variety and intensity of services offered to even more dismissed workers and for a longer period of time than would be possible without EGF funding.

Mission

The EGF aims at supporting socioeconomic transformations that are the result of globalisation and of technological advance as well as of environmental changes by helping displaced workers and self‑employed persons whose activity has ceased to adapt to structural change.

The EGF is an emergency fund that operates reactively to assist displaced workers affected by major restructuring events. It is guided by—and helps implement—the principles defined under the European Pillar of Social Rights (including equal opportunities and access to the labour market, fair working conditions, and social protection and inclusion) and enhances social and economic cohesion among regions and Member States. It adds to existing mainstream restructuring assistance programmes and services for labour market actors, without replacing existing resources.

Objectives

The EGF’s objectives are to demonstrate solidarity and promote decent and sustainable employment by offering assistance in the case of major restructuring events.

Actions

The EGF co-finances coordinated packages of personalised services designed to facilitate the re-integration of the targeted beneficiaries, in particular the most disadvantaged among them, into employment or self-employment. Its main focus is on active labour market measures (e.g. training and retraining, job-search assistance, outplacement assistance, aid for self-employment or business start‑ups). Assistance is granted for a limited period.

Delivery mode

EGF is implemented under shared management. DG EMPL is in the lead for the Commission.

LINK TO THE 2014-2020 multiannual financial framework

The EGF builds on its predecessor under the 2014-2020 multiannual financial framework. In particular, it remains outside the budgetary ceiling of the multiannual financial framework given the non-programmable nature of its mandate. The maximum amount for the period 2021–2027 is set at almost EUR 1.467 billion in current prices.

For the 2021-2027 multiannual financial framework, the EGF was redesigned to ensure greater inclusiveness and flexibility to better respond to current and future economic challenges, such as automation and digitalisation, the transition to low‑carbon economy, etc. Therefore, its scope has been broadened to any type of significant restructuring event regardless of the cause, and the eligibility threshold has been lowered from 500 to 200 displaced workers. Moreover, the EGF co-financing rate has been aligned with the highest ESF+ co‑financing rate in the respective Member State.

Impact assessment

The impact assessment of the EGF was carried out in 2018.

For further information please consult SWD(2018) 289 final.

WEBSITE FOR more information

<https://ec.europa.eu/social/main.jsp?catId=326&langId=en>
 

Legal basis

Regulation (EU) 2021/691 of the European Parliament and of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 181.3 (\*\*) | 201.3 | 205.4 | 209.5 | 213.7 | 217.9 | 222.3 | 1 451.4 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities |  |  |  |  |  |  |  |  |
| NB: The EGF uses annual ceilings instead of financial programming. The annual ceiling does not include the transfer of EUR 16.05 million from the reserve to the completion line of the 2014-2020 EGF programme in 2021. | | | | | | | | |

(\*) Only Article 15(3) of the financial regulation.

(\*\*)In addition, an amount of EUR 16.04 million was used in 2021 from the 2014-2020 programming period to cover EGF cases that were submitted by the Member States at the end of 2020 but paid from the 2021 budget.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Total financial programming | Implementation rate |
| Commitments | |  | | --- | | 8.0 | | |  | | --- | | 1 451.4 | | |  | | --- | | 1% | |
| Payments | |  | | --- | | 6.6 | |  | |  | | --- | | 0% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Annual ceiling/voted budget |
| Commitments | 8.0 | 181.3 |
| Payments | 6.6 | 20.0 |
| NB: The EGF uses annual ceilings instead of financial programming for commitment appropriations. Voted budget is only applicable to payment appropriations. The annual ceiling does not include the transfer of EUR 16.05 million from the reserve to the completion line of the 2014-2020 EGF programme in 2021. | | |

–In 2021, five applications, submitted at the end of 2020 by five Member States, were adopted. As a result, they were paid out partly from assigned revenues from the 2014-2020 period and partly from the budget allocated for 2021-2027. Four of these applications were submitted in relation to the repercussions of the COVID-19 crisis, and one application was linked to a trade-related restructuring event.

–The new EGF regulation for 2021-2027 only entered into force in May 2021 but has applied retroactively since 1 January of that year. A derogation clause was therefore introduced to ensure that funding gaps would be avoided. In 2021, eight applications were submitted by four Member States, requesting a total of EUR 20.5 million to assist 3 500 dismissed workers. In five cases, the COVID-19 pandemic was the main factor that led to the dismissals. The remaining three cases had a trade-related background. The EGF was mobilised in 2021 in four cases while the rest, received in the second half of 2021, will benefit from EGF support in the first half of 2022.

–Despite the economic recovery, uncertainty remains, in particular in relation to (1) potential further COVID-19 mutations that could hamper economic recovery, (2) rising inflation, (3) the persistence of supply chain bottlenecks, (4) a possible economic shock due to the Russian invasion of Ukraine and (5) the economic consequences of the EU sanctions against Russia over Ukraine. As an emergency response tool, the EGF will be ready to react to these challenges and to offer assistance in possible further major restructuring events in 2022 and 2023, if needed. As concerns the implementation of ongoing cases, but also possible future applications, the development of the pandemic will have an impact on the implementation of measures. This might also prevent Member States from applying for support, if it is unclear whether measures could be implemented at all.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| Not applicable | Not applicable | Score 0\*: 8.0 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Total EGF beneficiaries in a given case |  |  |  | No results | No data |
| Percentage of EGF beneficiaries who gained a qualification |  |  |  | No results | No data |
| Percentage of EGF beneficiaries in education or training |  |  |  | No results | No data |
| Percentage of EGF beneficiaries in employment (dependent/self-employed) |  |  |  | No results | No data |

(\*) % of target achieved by the end of 2021.

–The main sources of information on EGF’ s results are (1) the final reports submitted by the Member States, 7 months after the end of the implementation, and (2) the beneficiary surveys, which are conducted 6 months after the implementation of the case.

–Even though the EGF’s main aim is sustainable reintegration into quality employment, the mere comparison of reintegration rates is not sufficient to measure the performance of the EGF. This is due, among other reasons, to differences in the characteristics of the beneficiaries targeted and in the socioeconomic situations of the regions affected. Therefore, beneficiary surveys were introduced as a new tool in the 2021-2027 period. Beneficiary surveys will help assess the extent to which the assistance offered had an impact on the perceived change in the employability of beneficiaries or, for those who have already found employment, on the quality of the employment found (e.g. in terms of changes in working hours). Such information will be broken down by gender, age group, education level and level of professional experience. Furthermore, by broadening the scope of the EGF and by making the application procedure easier and faster in the current programming period, the fund is expected to be more inclusive and to reach more displaced workers in need of assistance.

–Considering the delayed start of the 2021-2027 programming period, and taking into account that the implementation of an EGF case takes 24 months, the aforementioned information, which is necessary to assess the EGF’s performance, is only expected by mid 2024.

EUSF

EUROPEAN UNION SOLIDARITY FUND

Programme in a nutshell

Concrete examples of achievements (\*)

|  |  |  |
| --- | --- | --- |
| EUR 935 million  in total was awarded to assist with disasters that occurred in 2020 and 2021. | 10  new EUSF applications were received (for natural disasters) and assessments were commenced in 2021. | 28  assessments of EUSF applications completed in 2021:  -6 natural disaster applications;  -22 health emergency applications. |

(\*)Key achievements in the table state which period they relate to.

Budget for 2021-2027

(EUR million)

|  |  |
| --- | --- |
| Financial programming | 3 876.0 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 3 876.0 |

(\*) Only Article 15(3) of the financial regulation.

The European Union Solidarity Fund (EUSF), created in 2002, is activated upon request of an eligible state when a major national or regional natural disasters occur (such as earthquakes, floods, droughts, forest fires, storms) or in the case of a major public health emergency.

The EUSF brings EU added value to Member States and accession countries, notably because of its readiness to intervene with additional financial resources. Its financial contribution to post-disaster efforts for assisting the affected population and for reconstruction is highly valued. Despite its limited size, the fund is widely recognised as a particularly tangible expression of EU solidarity and support; it is also very visible and raises a lot of interest among politicians and media.

Challenge

Solidarity is one of the fundamental values of the EU and a guiding principle of the European integration process. The EUSF is based on this very principle, in that this mechanism turns solidarity into tangible aid for Member States or countries negotiating their accession to the EU, if they are affected by major or regional natural disaster or a major public health emergency.

Mission

The EUSF is designed to contribute to post-disaster relief in Member States and countries negotiating their accession to the EU (henceforth ‘eligible beneficiaries’) confronted with devastating natural disasters or major public health emergencies.

Objectives

The EUSF’s objective is to grant financial assistance to eligible beneficiaries in the event of a major or regional natural disaster or a major public health emergency with serious repercussions on living conditions, the natural environment or the economy. The fund’s resources can be used for the financing of emergency and recovery operations undertaken by public authorities in support of the affected population.

The support from the fund is used to cover part of the public expenditure incurred in response to the disaster. The fund is designed in such a way that the amount of support is related to the size of the disaster. It also takes into account the country’s capacity to cope on its own with the financial burden triggered by the disaster.

Actions

The EUSF can (re-)finance public emergency and recovery operations from the very onset of the disaster or health emergency. In case of a natural disaster, it can provide financing for restoring the working order of infrastructure and plant in the fields of energy, water and waste water, telecommunications, transport, health and education, provide temporary accommodation, fund rescue services to help the population affected and secure preventive infrastructure and cleaning-up operations. In case of a health emergency, it can finance rapid assistance, including medical aid to the population, and protect the population from the risk of being affected, including by preventing, monitoring and controlling the spread of diseases, combating severe risks to public health or mitigating their impact on public health.

Delivery mode

Eligibility is determined by total direct non-insurable (public) loss and/or damage, which must exceed a threshold specific to each eligible beneficiary. It is set at national level (major disasters) or at regional level (regional disasters). The number and size of eligible disasters determine the amount of aid in a given year.

The total annual budgetary allocation to the fund laid down in the multiannual financial framework is a ceiling rather than a spending target. Disbursements from the fund are therefore not programmable, as they entirely depend on the unpredictable occurrence, nature and magnitude of these disasters.

The European Commission may not activate the EUSF upon its own initiative. Financial assistance from the EUSF is mobilised from appropriations raised by the European Parliament and the European Council over and above the normal EU budget appropriations. This ensures that in each case the aid comes as an expression of solidarity with the full backing of Member States and the Parliament, not just as an administrative act by the Commission.

Once the appropriations become available in the EU budget, the Commission adopts a decision awarding the aid to the affected state, which receives it immediately and in a single instalment. After the aid is paid out, the affected state is responsible for the implementation including the selection of operations and their audit and control. Emergency measures may be financed retroactively from day one of the disaster.

The Directorate-General for Regional and Urban Policy is the lead DG for EUSF implementation. EUSF assistance is implemented through shared management (indirect management for countries negotiating their accession to the EU). However, in order to minimise the administrative burden on countries struggling with a serious disaster and to maximise the budgetary effect, there are no programming or national co-financing requirements.

LINK TO THE 2014-2020 Multiannual financial framework

The EUSF is a special instrument outside the normal EU budget. Its mobilisation requires the approval of the European Parliament and the Council. In the 2021-2027 multiannual financial framework, the EUSF will be financed through the Solidarity and Emergency Aid Reserve. The maximum annual amount of the reserve is EUR 1.2 billion (in 2018 prices). Until 1 September of each year, 75% of the Solidarity and Emergency Aid Reserve annual allocation is released in equal parts to the EUSF and the Emergency Aid Reserve. After 1 September, the unspent amounts from the first period and, after 1 October, the retained 25% can be used by any of the Solidarity and Emergency Aid Reserve components.

Impact assessment

No impact assessment was carried out for the EUSF. An evaluation was completed in 2019.

For further information on the evaluation, please consult: 
<https://europa.eu/!yj89yD>
.

WEBSITE FOR more information

<https://europa.eu/!mu93qX>

Legal basis

Council Regulation (EC) No 2012/2002.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 803.4 | 487.1 | 496.8 | 506.8 | 516.9 | 527.2 | 537.8 | 3 876.0 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities |  |  |  |  |  |  |  |  |

(\*) Only Article 15(3) of the financial regulation.

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 791.4 | 964.6 |
| Payments | 791.4 | 964.6 |

–In 2021, the Commission completed its assessment of six natural disaster applications and 22 health emergency applications and mobilised assistance from the fund. In addition, in 2021, the Commission received 10 new natural disaster applications. Out of these, the assessments of five flood-related applications and the applications from Greece and Spain were started in 2021, with the decisions and mobilisation of the EUSF assistance expected to occur in 2022.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| |  | | --- | | 0.1 | | 0 | Score 0: 791.4 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Population of the EUSF supported countries and regions | 0 | N/A | No targets (demand driven) | 361 million | N/A |
| Number of countries supported by EUSF | 0 | N/A | No targets (demand driven) | 25 | N/A |

(\*) % of target achieved by the end of 2021.

–In 2021, the Commission completed its assessment and mobilised assistance for the natural disaster applications received at the end of 2020.

–The application from Greece submitted in October 2020 concerned the August 2020 floods in the region of Sterea Ellada. Greece received an advance payment of the EUSF financial contribution amounting to EUR 330 thousand in March 2021 and a balance payment amounting to nearly EUR 3 million in July 2021.

–The application from Greece submitted in December 2020 concerned the damages caused by the Mediterranean Cyclone Ianos in September 2020. Greece received an advance payment of the EUSF financial contribution amounting to over EUR 2 million in March 2021 and a balance payment amounting to over EUR 19 million in July 2021.

–The application from France submitted in December 2020 concerned the damages caused by Storm Alex in October 2020. France received an advance payment of the EUSF financial contribution amounting to nearly EUR 6 million in March 2021 and a balance payment amounting to over EUR 53 million in July 2021.

–In 2021, the Commission received 10 new natural disaster applications.

–The application from Greece submitted in January 2021 concerned the earthquake on the islands of Chios, Ikaria and Samos. Greece received an advance payment of the EUSF financial contribution amounting to EUR 253 thousand in March 2021 and a balance payment amounting to over EUR 3 million in July 2021.

–The application from Croatia submitted in March 2021 concerned the series of earthquakes starting from December 2020. Croatia received an advance payment of the EUSF financial contribution amounting to over EUR 41 million in August 2021 and a balance payment amounting to EUR 278 million in December 2021.

–In October 2021, Belgium, Germany, Luxembourg, the Netherlands and Austria submitted their applications regarding the July 2021 floods.

–In December 2021, Spain submitted an application in relation to the volcanic eruption in La Palma, Canary Islands.

–In December 2021, Greece submitted an application in relation to the September 2021 earthquake in Crete.

–Since April 2020, Member States and accession countries can also apply for support from the EU Solidarity Fund for public health emergency reasons.

–By June 2020, the Commission had received 22 applications for a financial contribution from the EUSF. Overall, 19 Member States (Belgium, Czechia, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Latvia, Lithuania, Luxembourg, Hungary, Austria, Poland, Portugal, Romania and Slovenia) and three accession countries (Albania, Montenegro and Serbia) requested assistance in response to the major public health emergency caused by COVID‑19. All applications were assessed in a single package to ensure consistent and equitable treatment.

–In 2020, based on its preliminary assessment, the Commission disbursed a total of EUR 133 million in advance payments to Germany, Ireland, Greece, Spain, Croatia, Hungary and Portugal.

–In May 2021, the budget authority approved the mobilisation of the EUSF for a financial contribution amounting to over EUR 529 million requested by 20 applicant countries in relation to the major public health crisis.

–In total, in the period from September to the end of December 2021, the Commission made 19 payments amounting in total to EUR 385 million.

–The only remaining payment left to execute is the payment to Serbia. The respective payment credit has been carried over to 2022. The signature of the delegation agreement with Serbia is ongoing and the assistance is expected to be carried out after completion of the agreement.

INNOVATION FUND

INNOVATION FUND

Programme in a nutshell

Concrete examples of achievements

|  |  |  |  |  |
| --- | --- | --- | --- | --- |
| 543 | 39 | 30 | 25 | 4 800 |
| proposals were received in the first two Innovation Fund calls. | proposals were invited for grant agreement preparation. | projects signed the grant agreement. | proposals were awarded project development assistance by the European Investment Bank. | people (approximately) participated in/viewed the events organised. |

Budget for 2020-2030

The revised EU emissions trading system directive defines the basic elements of the Innovation Fund, such as its size, scope, maximum funding rate (i.e. the maximum support that can be given to a project) and disbursement rules. It stipulates that the Innovation Fund will be endowed with the revenues from the auctioning of at least 450 million allowances from 2020 to 2030 and any unspent revenues from the second call of the predecessor programme, the NER 300, which translates into around EUR 25 billion (at a carbon price of EUR 50/tCO2).

Rationale and design of the programme

The Innovation Fund aims at catalysing funding for highly innovative technologies and flagship projects in all Member States that can yield significant emission reductions.

Challenge

To meet the objective of a climate-neutral EU by 2050 and the EU target of a net domestic reduction in greenhouse gas emissions of at least 55% by 2030 compared to 1990, there is a need to support and incentivise innovative and low-carbon technologies. The challenge is to enable EU companies to take the lead in developing, deploying and commercialising low-carbon solutions. Low-carbon technology demonstration projects are inherently high-risk endeavours and struggle to attract the required capital. However, they have potentially vast positive beneficial effects, well beyond the individual company or Member State that finances them or carries them out, which warrants public support at the EU level.

Mission

The Innovation Fund aims at catalysing funding for highly innovative technologies and flagship projects in all Member States that can yield significant emission reductions by:

–creating the right financial incentives to invest now in the next generation of technologies needed for the EU’s low-carbon transition; and

–boosting growth and competitiveness by empowering EU companies with a first-mover advantage to become global technology leaders.

The ultimate goal is to help businesses and industry invest in clean technologies, thus boosting economic growth, creating local future-proof jobs and reinforcing Europe’s technological leadership on a global scale.

Objectives

The Innovation Fund’s specific objectives are shown below.

8.Support projects with highly innovative technologies, processes or products, that are sufficiently mature and have a significant potential to reduce greenhouse gas emissions.

9.Offer financial support tailored to market needs and risk profiles of eligible projects, while attracting additional public and private resources.

10.Ensure that the Innovation Fund’s revenues are managed in accordance with the objectives of the EU emissions trading system.

Actions

The Innovation Fund supports highly innovative technologies by sharing their risk with project promoters via:

–grants through calls for large- and small-scale projects focusing on:

–innovative low-carbon technologies and processes in energy-intensive industries, including products substituting carbon-intensive ones, 

–carbon capture and utilisation, 

–construction and operation of carbon capture and storage, 

–innovative renewable energy generation, 

–energy storage;

–contributions to blending operations under the EU investment support instrument; and

–prizes and procurement.

The Innovation Fund resources may contribute to InvestEU financial instruments, to provide debt or equity financing to innovative clean-tech projects.

Delivery mode

The Innovation Fund is implemented in direct management by the Commission (DG Climate Action) with the assistance of the European Climate, Infrastructure and Environment Executive Agency, to which the implementation of the grant component of the programme is delegated. Some activities are implemented in indirect management, through the European Investment Bank, for the management of the project development assistance support, and the channelling of Innovation Fund resources via financial instruments. The monetisation of the Innovation Fund allowances and the management of the Innovation Fund revenues have also been delegated to the European Investment Bank.

LINK TO THE 2014-2020 MulTiannual Financial Framework

The Innovation Fund builds on its predecessor, the NER 300 programme (which was an off-budget fund, thus not part of the 2014-2020 multiannual financial framework), but it is open also to projects from energy-intensive industries, has a larger grant coverage, provides support in more flexible ways, and – following recommendations from the European Court of Auditors – has a streamlined governance and simplified decision-making.

Impact assessment

The 
[impact assessment](https://europa.eu/!Xg96fp)
 of the Innovation Fund was carried out in 2019.

WEBSITE FOR more information

[Innovation Fund website](https://ec.europa.eu/clima/eu-action/funding-climate-action/innovation-fund_en)
 

[European Climate, Infrastructure and Environment Executive Agency website related to the Innovation Fund](https://cinea.ec.europa.eu/innovation-fund_en)

[Funding and tender portal](https://ec.europa.eu/info/funding-tenders/opportunities/portal/screen/programmes/innovfund)
 

Legal basis

Commission Delegated Regulation (EU) 2019/856.

Implementation and performance

Budget

Budget (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Revenues from auctions | 3 816.2 |  |  |  |  |  |  | 3 816.2 |

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 146.6 | | |  | | --- | | 3 816.2 | | |  | | --- | | 4% | |
| Payments | |  | | --- | | 11.2 | |  | |  | | --- | | 0% | |

·First call for large-scale projects

A first call for proposals was launched in July 2020, amounting to EUR 1 billion and addressing large-scale projects. It registered very high interest, receiving as many as 311 project proposals. Following the first-stage evaluation, on 23 March 2021 the European Climate, Infrastructure and Environment Executive Agency invited 70 proposals to submit a full application in the second stage of the call. In total, 66 proposals were received by the 23 June 2021 deadline and the evaluation was carried out in the second half of 2021. The result of the call was seven projects invited for grant agreement, requesting in total more than EUR 1 billion in grants. The grant agreement signatures are expected to take place in the first quarter of 2022.

·First call for small-scale projects

The call for proposals launched in December 2020, amounting to EUR 100 million and addressing small-scale projects, had a deadline of 10 March 2021. The results were published in mid July and, at the end of the evaluation process, the 32 top-ranked proposals within the available budget were invited for grant preparation. By 10 December 2021, 30 of the preselected proposals for funding signed grant agreements with the European Climate, Infrastructure and Environment Executive Agency, representing an assigned budget of more than EUR 100 million.

·Project development assistance

Project development assistance under the Innovation Fund aims to accelerate the bankability and general maturity of projects, so that they are ready to reapply to the fund.

A contribution agreement on project development assistance was signed with the European Investment Bank in April 2021 and is already being implemented. From those proposals not invited to the second stage of the first large-scale call, 15 proposals were invited (
[13](#footnote14)
) to access important project development assistance , delivered by the European Investment Bank (
[14](#footnote15)
), worth EUR 4.4 million. Additionally, 10 small-scale projects were awarded project development assistance worth EUR 1.7 million.

·InvestEU financial instruments

In 2021, EUR 100 million from the Innovation Fund was allocated to InvestEU through Commission Decision C(2021) 7404 of 19.10.2021 and its 
[Annex](https://ec.europa.eu/clima/document/download/ac4d450c-3ebd-4b0f-85ff-64edc3da1b07_en)
 on the activities related to the Innovation Fund, serving as the financing decision for 2021 and as a decision launching the second calls for proposals. The guarantee agreement(s) with the implementing partner(s) are not yet finalised, so the operations have not started. The guarantee agreement with the European Investment Bank will be the first to be signed – this is planned for 2022.

On the revenue side, the implementation is progressing well. A contribution agreement was signed in January 2021 between the EU and the European Investment Bank, ensuring that the monetisation of the allowances set aside for the Innovation Fund is carried out in accordance with the auctioning regulation and the revenues of the Innovation Fund are managed in accordance with the objectives of the EU emissions trading system directive.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate(\*) | Biodiversity | Gender equality (\*\*) |
| 146.6 | NA | 146.6 |

(\*)The Innovation Fund is not part of the Multiannual Financial framework and its expenditures do not count for the achievement of the 30% climate target

(\*\*) Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions; 

­0\*: Score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

Key performance indicators

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Baseline | Progress (\*) | Target | Results | Assessment |
| Absolute greenhouse gas emissions avoidance planned/achieved | 0 |  |  | No results | No data |
| Participants in knowledge events on the clean-tech solutions | 0 | 14% (\*\*) | 150 | Target achieved in 2021. 670 compared to a target of 150 | No data |
| Number of projects supported through grants | 0 |  |  | 30 | No data |
| Investments mobilised by the Innovation Fund grants | 0 |  |  | No results | No data |
| Investments mobilised | 0 |  |  | No results | No data |
| Technology sectors covered | 0 | 48% | 18 | 14 compared to a target of 18 | On track |
| Geographically balanced locations | 0 | 45% | 29 | 13 compared to a target of 29 | No data |

(\*) % of target achieved by the end of 2021.

(\*\*) % of years for which the milestones or target have been achieved during the 2021-2027 period.

–The first two Innovation Fund calls launched in 2020 were closed in the reporting period, the proposals were evaluated and the results communicated. The significant oversubscription in the first two calls shows that the Innovation Fund was needed and expected by the market and that, in line with its rationale, it does address a gap in available funding for clean technologies.

–The lessons learned from the application process led to Delegated Regulation 2019/856 being amended to allow for a one-step application process also for large-scale projects, which in turn should lead to a shortening of the time to grant. The evaluation results also showed a very good project pipeline among the projects rejected due to insufficient budget being available.

–In this context, a second call for large-scale projects was launched in October 2021 with a budgetary increase of 50% (total of EUR 1.5 billion) and a one-step application procedure. The call will be concluded and the results communicated in 2022.

BAR

BREXIT ADJUSTMENT RESERVE

Programme in a nutshell

Budget for 2021-2027

(million EUR)

|  |  |
| --- | --- |
| Financial programming | 5 470.4 |
| NextGenerationEU | 0 |
| Decommitments made available again (\*) | N/A |
| Contributions from other countries and entities | 0 |
| Total budget for 2021-2027 | 5 470.4 |

(\*) Only Article 15(3) of the financial regulation.

Rationale and design of the programme

The withdrawal of a Member State from the EU is an unprecedented situation both for the EU as a whole and for its Member States. The overarching logic behind the Brexit Adjustment Reserve (BAR) instrument is to provide support to the economies of Member States to master the transition from the United Kingdom being an EU Member State to it being a non-EU country.

In that regard, the reserve should support those regions, areas and, where relevant, local communities most adversely affected by the United Kingdom’s withdrawal (e.g. loss of market share, employment, trade volumes, turnover), and thus mitigate the related negative impact on economic, social and territorial cohesion.

Challenge

Since 1 February 2020, the United Kingdom is no longer a Member State of the EU. The challenge is to counter the worst unforeseen and adverse consequences of Brexit on Member States and specific regions. To this end, in July 2020 the European Council agreed to establish a new special instrument with an allocation of EUR 5.47 billion (in current prices). The regulation establishing the BAR was proposed by the European Commission on 25 December 2020 and adopted on 6 October 2021.

Mission

The BAR is a temporary targeted instrument, and it aims to provide swift support to Member States tailored to their specific Brexit-related challenges while minimising administrative burden. For this reason, no advance programming or planning of measures is envisaged. Member States will have to react quickly and in a targeted way in view of a specific impact. The support from the reserve can be used for national measures specifically taken between 1 January 2020 and 31 December 2023.

Objectives

The design of the BAR acknowledges the particular circumstances Member States face as a result of Brexit: it does not ask for advance programming or planning of measures and provides for flexibility in the implementation and in line with the subsidiarity principle.

Actions

The regulation leaves it to Member States to decide which sectors, regions or communities are worst affected and require support. The regulation provides for a list of indicative measures to counter the adverse consequences of the United Kingdom’s withdrawal. This list is non-exhaustive to allow for a flexible use of funds according to the specific situation of the sectors, regions and local communities in Member States.

To be eligible, each Member State needs to demonstrate: (1) the adverse consequences of Brexit; (2) the direct link between the measures carried out and the negative consequences of Brexit; (3) the fulfilment of the eligibility criteria set out by the regulation.

Delivery mode

The BAR is implemented through shared management. In order to minimise the administrative burden, there are neither programming nor national co-financing requirements.

80% of the total BAR allocation will be paid in three tranches of pre-financing in 2021, 2022 and 2023, subject to having received complete notification by the Commission of the designated body or bodies to which the pre-financing shall be paid and confirmation that the descriptions of the management and control systems have been drawn up. The remaining amount will be paid in 2025 against the assessment of sufficient eligible expenditure.

The EU’s contribution shall take the form of reimbursement of eligible costs actually incurred and paid by public authorities in Member States, including payments to public or private entities, for measures carried out and for the benefit of the Member State concerned.

Each Member State shall submit to the Commission an application for a financial contribution from the reserve by 30 September 2024. In this application, the Member States will, inter alia, document their expenditure stemming from measures carried out with BAR support. Against this background, the Commission will assess and determine eligibility for BAR funds, and whether additional payments need to be made or whether funds need to be recovered.

The Directorate-General for Regional and Urban Policy is the lead DG for the BAR implementation.

LINK TO THE 2014-2020 mULTIANNUAL FINANCIAL FRAMEWORK

The BAR is a new programme under the 2021-2027 multiannual financial framework. It addresses new types of challenges arising from Brexit.

Impact assessment

No impact assessment was carried out for the BAR.

WEBSITE FOR more information

<https://ec.europa.eu/regional_policy/en/funding/brexit-adjustment-reserve/>

Legal basis

Regulation (EC) No 2021/1755 of the Council.

Implementation and performance

Budget

Budget programming (million EUR):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| Financial programming | 1 697.9 | 1 298.9 | 1 324.9 | 0.0 | 1 148.7 |  |  | 5 470.4 |
| NextGenerationEU |  |  |  |  |  |  |  |  |
| Decommitments made available again (\*) | N/A |  |  |  |  |  |  | N/A |
| Contributions from other countries and entities |  |  |  |  |  |  |  |  |

(\*) Only Article 15(3) of the financial regulation.

Cumulative implementation rate at the end of 2021 (million EUR):

|  |  |  |  |
| --- | --- | --- | --- |
|  | Implementation | 2021-2027 Budget | Implementation rate |
| Commitments | |  | | --- | | 407.2 | | |  | | --- | | 5 470.4 | | |  | | --- | | 7% | |
| Payments | |  | | --- | | 407.2 | |  | |  | | --- | | 7% | |

Voted budget implementation in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
|  | Voted budget implementation | Initial voted budget |
| Commitments | 407.2 | 0.0 |
| Payments | 407.2 | 0.0 |

–Member States will receive their first pre-financing instalment as soon as they submit the complete notification to the Commission. The two Member States that notified the Commission in 2021 (Ireland and Italy) received the first pre-financing instalment before the year end (EUR 407 million). This represents 24% of the total allocation for the first instalment. As of end of April 2022, 22 Member States had notified the Commission, of which 14 received the 2021 and 2022 instalment of the pre-financing (the final amount is expected to increase in the months to come as the remaining 5 Member State will provide their notifications).

–The regulation does not envisage any penalisation in case of delayed notifications.

Contribution to horizontal priorities

EU budget contribution in 2021 (million EUR):

|  |  |  |
| --- | --- | --- |
| Climate | Biodiversity | Gender equality (\*) |
| 0 | 0 | Score 0\*: 407.2 |

(\*)Based on the applied gender contribution methodology, the following scores are attributed at the most granular level of intervention possible:

­2: interventions the principal objective of which is to improve gender equality;

­1: interventions that have gender equality as an important and deliberate objective but not as the main reason for the intervention;

­0: non-targeted interventions;

­0\*: score to be assigned to interventions with a likely but not yet clear positive impact on gender equality.

Performance assessment

–The performance of the BAR will be assessed on the basis of the data and information collected from the implementation reports of the Member States (to be submitted by 30 September 2024). These reports will include a description of the overall impact of the withdrawal, an identification of the regions, areas and sectors most affected and a description of the measures and the ways in which those measures have contributed to alleviating this impact.

–Indicators to measure performance will become available as output indicators through the reports.

–The Commission has provided and continues to provide support to Member State authorities through bilateral meetings, written replies, an information website and a seminar (held in July 2021) on the clarification of practicalities behind the BAR regulation and the preparation of their potential measures.

–The Commission will then carry out an evaluation of the reserve in 2027 and will submit a report to the Parliament and the Council in 2028.

:   [(1)](#footnoteref2)
    ()
       Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union (OJ L 193, 30.7.2018, p. 1).
:   [(2)](#footnoteref3)
    ()
       This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo declaration of independence.
:   [(3)](#footnoteref4)
    ()
       
    [.](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52021DC0609&qid=1644243660152)
:   [(4)](#footnoteref5)
     
       Europeana, e-identification, e-signature, e-delivery, e-invoicing, e-archiving, public open data, automated translation, cybersecurity, eProcurement, business registers interconnection system, eHealth, electronic exchange of social security information, the European e-Justice portal, European digital media observatory, European platform on digital skills and jobs, online dispute resolution, safer internet, EU student e-card and blockchain.
:   [(5)](#footnoteref6)
    ()
       This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.
:   [(6)](#footnoteref7)
     APV-I: Approach procedure with vertical guidance, category 1
:   [(7)](#footnoteref8)
     LPV-200: Localizer Performance with Vertical guidance to a decision altitude of 200 ft
:   [(8)](#footnoteref9)
    () 
       This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.
:   [(9)](#footnoteref10)
    ()
       COM(2021) 120 final of 27.4.2021.
:   [(10)](#footnoteref11)
     
       Increases in migrants apprehended who also participated in pre-departure measures are also due to the improved operational capacity of the European Border and Coast Guard Agency services and increases in the push-pull factors at the global level.
:   [(11)](#footnoteref12)
    ()
       This designation shall not be construed as recognition of a State of Palestine and is without prejudice to the individual positions of the Member States on this issue.
:   [(12)](#footnoteref13)
    ()
       This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.
:   [(13)](#footnoteref14)
    () 
       At the time of finalising this report, only 14 large-scale proposals had signed a project development assistance support agreement with the European Investment Bank, as one project withdrew from the process.
:   [(14)](#footnoteref15)
    () 
       The European Investment Bank also offers NER 300 financial advisory support – see the presentation of 6 July 2021 to the eighth Meeting of the Innovation Fund Expert Group. Available at: 
    <https://ec.europa.eu/clima/system/files/2021-07/20210706_ifeg_2_en.pdf>

[Top](#document3)

![european flag](./../../../images/eclogo.jpg)EUROPEAN COMMISSION

Strasbourg, 7.6.2022

COM(2022) 401 final

ANNEXES

to the

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS

2021 Annual Management and Performance Report for the EU Budget

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_04002.jpg)

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_04003.jpg)

Contents

Annex 4 – Programme performance overview
   

Annex 5 – Control strategies and results
   

5.1.
   Preventive and corrective measures to protect the EU budget and related concepts
   

5.2.
   Risk at payment/closure reported in the 2021 annual activity reports
   

5.3.
   Reservations reported in the 2021 annual activity reports
   

5.4.
   Preventive and corrective measures applied in 2021
   

Annex 6 – Assurance provided by the Internal Audit Service
   

Financial management: internal auditor’s overall opinion
   

Performance: results of audits by the Internal Audit Service
   

Contribution of the Internal Audit Service to the annual activity reporting of the authorising officers by delegation
   

Follow-up of previous Internal Audit Service recommendations
   

Annex 7 – Summary of the work and conclusions of the Audit Progress Committee
   

Annex 8 – Compliance with payment time limits
   

Annex 9 – Summary of waivers of recoveries
   

Annex 10 – Report on negotiated procedures
   

1.1.
   Legal basis

1.2.
   Methodology
   

1.3.
   Overall results of negotiated procedures recorded
   

1.4.
   Overall results of negotiated procedures recorded
   

Annex 11 – EU trust funds
   

The Bêkou Trust Fund
   

The Syrian Crisis Trust Fund
   

The Africa Trust Fund
   

The Colombia Trust Fund
   

  

Annex 4 – Programme performance overview

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_04004.jpg)

Annex 4 – Programme performance overview

This annex contains a concise overview of the implementation and performance of each spending programme in the 2021‑2027 multiannual financial framework and of those programmes in the 2014-2020 multiannual financial framework for which relevant payments continued to be implemented in 2021. It draws on the information contained in the programme statements attached to the 2023 draft budget.

Important: this annex is exclusively available online

In line with the European Commission’s digital strategy, and with the objective of improving the accessibility of performance information and the user experience, this annex has been published exclusively on the Europa website.

Please visit the following website to access the information on the implementation and performance of the spending programmes of the EU budget in an interactive and user-friendly format:

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_04005.jpg)

[Programme Performance Overview home page](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance_en)

The 2021-2027 spending programmes included in this annex are the following:

Heading 1: Single Market, Innovation and Digital

[Horizon Europe](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/horizon-europe-performance_en)

[Euratom Research and Training Programme](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/euratom-research-and-training-programme-performance_en)

[ITER](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/iter-performance_en)

[InvestEU](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/investeu-performance_en)

[Connecting Europe Facility (CEF)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/connecting-europe-facility-cef-performance_en)

[Digital Europe Programme](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/digital-europe-programme-performance_en)

[Single Market Programme](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/single-market-programme-performance_en)

[EU Anti-Fraud Programme](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/eu-anti-fraud-programme-performance_en)

[Cooperation in the field of taxation (FISCALIS)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/cooperation-field-taxation-fiscalis-performance_en)

[Cooperation in the field of customs (CUSTOMS)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/cooperation-field-customs-customs-performance_en)

[European Space Programme](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-space-programme-performance_en)

Heading 2: Cohesion and Values

[Regional Policy](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/regional-policy-performance_en)

[Support to the Turkish Cypriot community](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/support-turkish-cypriot-community-performance_en)

[Recovery and Resilience Facility](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/recovery-and-resilience-facility-performance_en)

[Technical Support Instrument](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/technical-support-instrument-performance_en)

[Protection of the Euro Against Counterfeiting (Pericles IV)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/protection-euro-against-counterfeiting-pericles-iv-performance_en)

[Union Civil Protection Mechanism (rescEU)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/union-civil-protection-mechanism-resceu-performance_en)

[EU4Health](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/eu4health-performance_en)

[Emergency Support within the Union](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/emergency-support-within-union-performance_en)

[European Social Fund+](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-social-fund-performance_en)

[Erasmus+](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/erasmus-performance_en)

[European Solidarity Corps](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-solidarity-corps-performance_en)

[Justice Programme](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/justice-programme-performance_en)

[Citizens, Equality, Rights and Values programme](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/citizens-equality-rights-and-values-programme-performance_en)

[Creative Europe](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/creative-europe-performance_en)

[Communication](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/communication-performance_en)

[Brexit Adjustment Reserve](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/bar-performance_en)

Heading 3: Natural Resources & Environment

[Common Agricultural Policy](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/common-agricultural-policy-performance_en)

[European Maritime, Fisheries and Aquaculture Fund](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-maritime-fisheries-and-aquaculture-fund-performance_en)

[Fisheries organisations and agreements](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/fisheries-organisations-and-agreements-performance_en)

[Programme for Environment and Climate Action (LIFE)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/programme-environment-and-climate-action-life-performance_en)

[Just Transition Mechanism](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/just-transition-mechanism-performance_en)

Heading 4: Migration & Border Management

[Asylum, Migration and Integration Fund](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/asylum-migration-and-integration-fund-performance_en)

[Integrated Border Management Fund](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance_en)

Heading 5: Security & Defence

[Internal Security Fund](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/internal-security-fund-performance_en)

[Nuclear Decommissioning (Lithuania)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/nuclear-decommissioning-lithuania-performance_en)

[Nuclear Safety and Decommissioning](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/nuclear-safety-and-decommissioning-performance_en)

[European Defence Fund](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-defence-fund-performance_en)

Heading 6: Neighbourhood & the World

[Global Europe: Neighbourhood, Development and International Cooperation Instrument](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/global-europe-neighbourhood-development-and-international-cooperation-instrument-performance_en)

[European Instrument for International Nuclear Safety Cooperation](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-instrument-international-nuclear-safety-cooperation-performance_en)

[Humanitarian Aid](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/humanitarian-aid-performance_en)

[Common Foreign and Security Policy](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/common-foreign-and-security-policy-performance_en)

[Overseas Countries and Territories](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/overseas-countries-and-territories-performance_en)

[Macro-Financial Assistance (MFA)](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/macro-financial-assistance-mfa-performance_en)

[Pre-Accession Assistance](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/pre-accession-assistance-performance_en)

Special instruments and outside the MFF

[European Globalisation Adjustment Fund for Displaced Workers](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-globalisation-adjustment-fund-displaced-workers-performance_en)

[European Union Solidarity Fund](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/european-union-solidarity-fund-performance_en)

[Innovation Fund](https://ec.europa.eu/info/strategy/eu-budget/performance-and-reporting/programmes-performance/innovation-fund-performance_en)

Annex 5 – Control strategies and results

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_04004.jpg)

Annex 5 – Control strategies and results

This annex describes the preventive and corrective measures taken by the Commission, and by the Member States for expenditure under shared management, to protect the EU budget from illegal or irregular expenditure. It also presents their effects, and more specifically:

·the preventive and corrective measures to protect the EU budget and related concepts;

·the risk at payment/closure reported in the 2021 annual activity reports, which measure the effectiveness of the controls;

·the reservations qualifying the assurance provided by the authorising officers by delegation;

·the quantification of the preventive and corrective measures implemented in 2021.

5.1.Preventive and corrective measures to protect the EU budget and related concepts

The Commission has put in place multiannual control strategies to ensure the sound financial management of EU funds (see chart below). These control strategies aim in the first place to prevent errors before payments are made. In case errors could not be avoided, corrective measures are taken after the payments and until the closure of the programmes. The control results are therefore reported at two points in the programme cycle through the estimated risk at payment and risk at closure.

  

CONTROL Objectives

Controls

Preventive measures
  
Ex ante

Main features of the Commission’s control strategies

Source: European Commission.

Preventive and corrective measures

Preventive measures take place before the Commission makes the payment. They mostly result from controls (called ex ante controls) carried out by the Member States and entrusted entities before submitting expenditure to the Commission, and by the Commission before accepting and reimbursing expenditure, clearing pre-financing (i.e. transferring its ownership to the beneficiary) and making interim/final payments. As required by Article 74(5) of the financial regulation, all financial operations are subject to controls before payment, under all management modes.

Examples of such preventive measures are the recovery of unused pre-financing, the (partial) rejection of costs claimed and the financial corrections and deductions made by Member States before submitting their annual accounts to the Commission. Indeed, even though these corrections may have been applied by the Member States after they have made payments to beneficiaries, they intervene before the Commission’s payments and do not affect those.

The intensity, in terms of frequency and/or depth, of these controls depends on the risks and costs involved. Consequently, for low-risk transactions, ex ante controls usually take the form of desk reviews rather than on-site controls at the premises of the beneficiary. Indeed, for such transactions, on-site controls would entail a prohibitive cost compared to the expected benefit.

In shared management, the possibility of interruptions/suspensions of payments to Member States in the event of serious deficiencies detected by national or EU audits in the management and control systems has a preventive character. In addition, the Commission provides training and guidance to Member State authorities on the eligibility aspects of grants and procurement.

Corrective measures take place after the Commission has made the payment or accepted the expenditure. In line with Article 74(6) of the financial regulation, they result from controls (called ex post controls) that are typically performed on-site, on a sample basis, and are either representative or based on a risk assessment. In shared management, the Commission also performs system audits of Member States’ controls and/or the work of the audit bodies after a risk analysis. These audits may lead to financial corrections and recoveries of irregular expenditure (
[1](#footnote2)
).

The quantification of the preventive and corrective measures actually applied by the Member States and the Commission during the 2021 reporting year itself is presented in Section 5.4 of this annex.

The sources and root causes of errors detected by the Commission or by the Member States are also taken into account when preparing future (simplified) legislation and when (re)designing controls to further reduce the level of error in the next generation of funding programmes.

Risk at payment

The risk at payment quantifies any errors that remain after preventive controls have been applied and payments have been made (
[2](#footnote3)
), but before corrective measures have been applied. These errors are typically detected by Commission departments through audits or checks that take place after the payment. Measurement at this stage allows the errors to be corrected and additional preventive measures (e.g. additional guidance for Member States, entrusted entities or beneficiaries) to be taken, if necessary. It also allows the effectiveness of the (ex ante) controls to be gauged, and these controls to be adapted if necessary.

Each department estimates its ‘detected error rates’ per programme or other payment segment. Some departments may use different terminology in their annual activity reports to reflect the specificity of their control environment (
[3](#footnote4)
). Nevertheless, the departments use a consistent methodology to assess the risk of error in their financial operations based on the institutional framework in place. This is typically done through audits of sampled financial transactions taking place after the payments, taking into account and assessing the results of audits carried out by programme authorities in the first instance under shared management. These reveal any errors that may have remained after the ex ante controls and make it possible to estimate those parts of expenditure or revenue likely to be in breach of applicable regulatory and contractual provisions before any correction has taken place. This corresponds to the risk at payment for an individual programme or segment, as a percentage.

For low-risk expenditure, where there are indications that the error rate might be close to zero (e.g. administrative expenditure or operating subsidies for agencies), it is nevertheless recommended that an error rate of 0.5% be used as a conservative estimate.

All types of error, either formal or material, are duly considered and may lead to further enhancement of the control systems in place. Furthermore, in terms of consequences for the EU budget, the Commission calculates the actual financial impact of the errors. This is not necessarily equal to the total value of the EU funding involved: for example, it may only be equal to the amount of overpayment where a grant beneficiary has declared an amount above the reimbursement ceiling, to a pro rata amount of the EU funding where the EU only co-funds a grant or even to zero in the case of merely formal errors that have no financial impact. A special situation in the latter case is where formal errors occur in procurement procedures that do not necessarily preclude the possibility that the best offer was selected, that the output has been delivered in accordance with the contract and that the payments have been regular (
[4](#footnote5)
).

The risk-at-payment value is obtained by multiplying the relevant expenditure per programme or segment by the corresponding error rate.

The results per programme or segment are aggregated to provide – at the level of the department, the policy area and the Commission – the overall risk at payment as a value, which is the sum of all the amounts of risk at payment, and as a percentage, which is the overall weighted average of the risk at payment.

Estimated future corrections

Once an error is detected, it will subsequently be corrected – either via recovery or by being offset against future payments. However, as both detection and remedy may not be immediate, corrections will often not be made in the same financial year as the payment. Nevertheless, the multiannual control systems and corrective mechanisms ensure that any necessary corrections are made within the relevant programme’s life cycle.

Because the majority of the programmes and control strategies are multiannual, the risk at payment determined in the first instance may provide an incomplete picture, as errors can still be corrected over the course of a number of years after the payments have taken place, until the closure of the programme. In addition, corrections resulting from ex post controls rarely take place within the same financial year as the payment.

Therefore, as a second stage, departments estimate the percentage of future corrections they could still apply until the closure of the programme. These are conservative and forward-looking estimates of the corrections that they will implement as a result of (ex post) controls in subsequent years.

The estimates of future corrections described here must not be confused with the actual preventive and corrective measures applied during 2021 (presented on page xxx). Firstly, the scope of the actuals is broader as they include both preventive and corrective measures to protect the EU budget, not just ex post corrections. Secondly, the timing is different as the actuals relate to expenditure from previous years (during which errors may have been higher) as opposed to the estimated future corrections, which are calculated to relate only to 2021 expenditure.

To some extent, this estimate is based on the 7-year historical average of recoveries and financial corrections. However, where the departments are of the opinion that this is not the best available estimate of their ex post corrective capacity for their current activities, they adjust or replace their historical average. Any ex ante elements (e.g. recovery of unused pre-financing), one-off events, (partially) cancelled or waived recovery orders or other factors from past years that are no longer relevant for current programmes (e.g. higher ex post corrections of previously higher errors in earlier generations of grant programmes or current programmes with only ex ante control systems) may be taken out in order to arrive at the best and most conservative estimate of future corrections to be applied for the expenditure of the current programmes.

In 2021, most departments adjusted or replaced their historical average of corrections in order to arrive at their best conservative estimate of the future corrections to be applied to their relevant expenditure for the reporting year.

For programmes with no set closure point (e.g. the European Agricultural Guarantee Fund) and for some multiannual programmes for which corrections are still possible after the end of the programmes (e.g. the European Structural and Investment Funds, including the European Agricultural Fund for Rural Development), all the corrections that remain possible are considered for this estimate.

These future corrections can never be fully equal to the risk at payment. This is because some of the errors may be of a formal nature, and, although it is important to address them, do not always result in undue payments and therefore do not always give rise to financial corrections or recovery orders.

Risk at closure

This risk is estimated at programme closure (
[5](#footnote6)
), meaning when all ex post controls are completed, all corrections are applied and no further action may legally be taken.

The risk at closure is obtained by deducting the estimated future corrections from the risk at payment, as a value and as a percentage. These amounts and percentages represent the most up-to-date estimation of the outcome to be expected by the closure of each programme. The estimation is forward-looking, anticipating the point when all future corrections have been made. The risk at closure is more representative of the multiannual corrective capacity of the Commission and of the real risk to the expenditure.

Similarly to the risk at payment, the results per programme or segment are aggregated to provide – at the level of the department, the policy area and the Commission – the overall risk at closure as a value, which is the sum of all the amounts of risk at closure, and as a percentage, which is the overall weighted average of the risk at closure.

A bottom-up approach that fits the Commission’s management context

The concepts above have been developed to fit the Commission’s management context. Indeed, to be able to provide bottom-up management assurance, and to identify and address issues in specific areas, the Commission calculates the error rates per programme or other relevant segment, thus at a very detailed level. Moreover, the Commission’s methodology takes into account the multiannual nature of the spending programmes for the risk at closure, especially the fact that errors not identified at the point of payment for the specific accounting year under assessment can still be detected and corrected in the subsequent year(s).

The Commission’s approach differs from the European Court of Auditors’ audit approach as it comes from a management perspective, and provides more detailed information. Even if these approaches can lead to differences between the error rates reported by the Court of Auditors and those reported by the Commission, the concepts used largely converge with those used by the Court of Auditors.

·The risk at payment is closer (
[6](#footnote7)
) to the Court of Auditors’ ‘estimated level of error’. For several years the Court of Auditors has recognised that the Commission’s figures are, in most cases, broadly in line with the Courts’ estimates and/or range.

·As a basis for calculating the amount(s) at risk, ‘relevant expenditure’ corresponds to the payments made, minus new pre-financing paid (still owned by the Commission), plus pre-financing paid in previous years and cleared (ownership transferred to the beneficiaries) during the financial year. This is fully in line with the Court of Auditors’ approach (
[7](#footnote8)
).

·The ‘materiality threshold’ set, in most cases, at 2% of the relevant expenditure (
[8](#footnote9)
) is also in line with the Court of Auditors’ methodology (
[9](#footnote10)
).

5.2.Risk at payment/closure reported in the 2021 annual activity reports

The risk at payment and risk at closure are determined against the relevant expenditure of the year, to be in line with the Court of Auditors. They comprise the share of the EU budget managed by the Commission, along with other expenditure for the sake of completeness.

Relevant expenditure

The amount of the Commission’s ‘relevant expenditure’ is determined to be in line with the Court of Auditors’ scope of transactions reviewed (
[10](#footnote11)
). In this approach, pre-financing and retentions are only taken into account when the final recipient of EU funds has provided evidence of their use and the Commission (or another body managing EU funds) has accepted the final use of the funds (by clearing the pre-financing or releasing the amount retained), because this is where errors of legality or regularity may occur (see overall calculation in Table A). Therefore, the risks at payment and at closure are determined against this amount.

Furthermore, to show a complete picture of the funds for which the Commission is responsible (
[11](#footnote12)
), the expenditure made under the European Development Fund and those related to the four EU trust funds have been added (see overall calculation in Table A).

·European Development Fund. Until 2020, this budget was separate from the EU budget, and it is currently co-managed by five departments. In Tables B and C, the corresponding European Development Fund expenditure is included in the policy areas and the departments concerned (DG International Partnerships, plus the Joint Research Centre, DG Education, Youth, Sport and Culture, DG European Civil Protection and Humanitarian Aid Operations (ECHO) and the Education, Audiovisual and Culture Executive Agency).

·EU trust funds. These are the EU Trust Fund for the Central African Republic, the EU Regional Trust Fund in Response to the Syrian Crisis, the EU Emergency Trust Fund for Africa and the EU Trust Fund for Colombia (see also Volume III, Annex 11). In Table B, this expenditure is included in the external relations policy area. In Table C, it is included in DG Neighbourhood and Enlargement Negotiations, DG International Partnerships and DG European Civil Protection and Humanitarian Aid Operations (ECHO). These three departments ensure the transparent and complete coverage of the relevant trust fund(s) in their annual activity reports, based on the reports from the trust fund managers. They make a distinction between their accountability for the contributions from the EU budget and/or the European Development Fund paid into the trust funds, on the one hand, and for the transactions made from the trust funds, i.e. with the funds collected from the EU budget, the European Development Fund and other donors, as a trust fund manager, on the other hand.

|  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
| 2021 (provisional) annual accounts | Payments made  (a) | New pre-financing  (b) | Retentions made  (c) | Cleared pre-financing  (d) | Retentions released  (e) | Relevant expenditure  (f) = (a) – (b) + (c) + (d) – (e) |
| EU budget | 177 169.65 | 36 995.00 | 7 005.13 | 24 476.00 | 2 887.30 | 168 768.46 |
| Contributions from the EU budget to the EU trust funds | – 536.22 | 0.00 | 0.00 | 0.00 | 0.00 | – 536.22 |
| European Development Fund | 3 401.95 | 2 053.02 | 0.00 | 1 757.68 | 0.00 | 3 106.61 |
| Contributions from the European Development Fund to the EU trust funds | – 633.90 | 0.00 | 0.00 | 0.00 | 0.00 | – 633.90 |
| EU trust funds | 1 092.27 | 948.64 | 0.00 | 1 011.53 | 0.00 | 1 155.16 |
| Commission total | 180 493.76 | 39 996.66 | 7 .005.13 | 27 245.18 | 2 887.30 | 171 860.12 |

Table A: Amount of relevant expenditure for the whole Commission (in million EUR)

Source: Commission annual activity reports.

Specifications of columns (a) to (f)

(a)Payments made in 2021, including pre-financing, as registered in the Commission’s accounting system.

(b)Pre-financing paid by the Commission in 2021 (in line with note 2.5.1 ‘Pre-financing’ to the Commission’s (provisional) annual accounts).

(c)In cohesion, a 10% retention is made for all interim payments to the Member States. This is released once the Member States’ accounts have been accepted by the Commission.

(d)Pre-financing that has been cleared during the financial year. This means that the Commission has accepted the final use of the funds by clearing the advance.

(e)Amount of the retention released in 2021 (see (b)) and, also in cohesion, the deductions of expenditure made by the Member States.

(f)Relevant expenditure = (a) – (b) + (c) + (d) – (e).

Overview of the Commission’s risk at payment and at closure

Table B presents an overview of the Commission’s risk at payment/closure, by policy area. Compared to the previous annual management and performance reports, this year seven policy areas have been created in order to stay as close as possible to the seven headings of the new 2021-2027 multiannual financial framework. The splitting of the budget into these headings does not fully correspond to the budget as allocated to the 51 managing Commission departments, and thus as accounted for in their management reporting. For the purposes of this report (a summary of the annual activity reports), each department is allocated in its entirety to (only) one of the seven policy areas (
[12](#footnote13)
), except for DG Defence Industry and Space.

Specifications of the columns in Table B

(a) to (f) Same as in Table A.

(g) Estimated risk at payment (as a value and as a percentage).

The two cohesion-related departments present a range of values, as follows:

·the lower value corresponds to the departments’ risk at payment for the 2021 relevant expenditure based on their confirmed residual total error rate for the 2019/2020 accounting year;

·the upper value corresponds to a worst-case scenario (i.e. maximum risk), taking into account possible additional risks in parts of expenditure not reviewed under EU audits that indicate the possibility for higher error rates for some programmes.

|  |  |  |  |
| --- | --- | --- | --- |
| European Commission Directorates-General | | Lower value | Upper value |
| DG Employment, Social Affairs and Inclusion | Entire DG | 1.7% | 2.5% |
|  | European Social Fund and Youth Employment Initiative | 1.7% | 2.5% |
| DG Regional and Urban policy | Entire DG | 1.9% | 2.5% |
|  | European Regional Development Fund and Cohesion Fund | 1.9% | 2.5% |
| Total | Entire DGs | 1.8% | 2.4% |
|  | Cohesion policy funds | 1.8% | 2.5% |

Beyond the cohesion departments, a few other departments also use a range of ‘minimum-maximum’ rates/amounts for their estimated risk at payment, but with rather minor variances between the two values.

(h) Estimated future corrections (as a value and a percentage).

(i) Estimated risk at closure (as a value and a percentage).

|  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Policy area | Total relevant expenditure   (f) | Estimated risk at payment     (g) = average error   rate applied to (f) | | Estimated future   corrections     (h) = adjusted rate of average recoveries and corrections    applied to (f) | | Estimated risk at closure     (i) = (g) – (h) | |
|  |  | Lowest  value | Highest  value | Lowest  value | Highest  value | Lowest  value | Highest  value |
| Single market, innovation and digital | 17 327.3 | 218.6 | 220.2 | 52.6 | 52.6 | 166.0 | 167.6 |
|  |  | 1.3% | 1.3% | 0.3% | 0.3% | 1.0% | 1.0% |
| Cohesion, resilience and values | 75 779.3 | 1 317.6 | 1 775.4 | 437.7 | 883.0 | 879.8 | 892.4 |
|  |  | 1.7% | 2.3% | 0.6% | 1.2% | 1.2% | 1.2% |
| Natural resources and environment | 56 545.2 | 1 027.1 | 1 027.2 | 841.0 | 841.0 | 186.1 | 186.2 |
|  |  | 1.8% | 1.8% | 1.5% | 1.5% | 0.3% | 0.3% |
| Migration and border management | 2 510.8 | 48.0 | 48.0 | 15.9 | 15.9 | 32.2 | 32.2 |
|  |  | 1.9% | 1.9% | 0.6% | 0.6% | 1.3% | 1.3% |
| Security and defence | 13.8 | 0.1 | 0.1 | 0.0 | 0.0 | 0.1 | 0.1 |
|  |  | 0.5% | 0.5% | 0.0% | 0.0% | 0.5% | 0.5% |
| Neighbourhood and the world | 12 683.4 | 142.6 | 142.6 | 32.7 | 32.7 | 109.9 | 109.9 |
|  |  | 1.1% | 1.1% | 0.3% | 0.3% | 0.9% | 0.9% |
| European public administration | 7 000.3 | 30.1 | 35.4 | 0.0 | 0.0 | 30.1 | 35.4 |
|  |  | 0.4% | 0.5% | 0.0% | 0.0% | 0.4% | 0.5% |
| Total 2021 | 171 860.1 | 2 784.2 | 3 248.9 | 1 379.9 | 1 825.1 | 1 404.3 | 1 423.7 |
|  |  | 1.6% | 1.9% | 0.8% | 1.1% | 0.8% | 0.8% |
| Total 2020 | 147 391.9 | 1.9% | | 1.0% | | 0.9% | |

Table B: Risk at payment/closure by policy area for the whole Commission, 2021 ( in million EUR)

Source: Commission annual activity reports.

NB: Due to the rounding of figures to the nearest million EUR, some financial data in the table above may appear not to add up.

5.3.Reservations reported in the 2021 annual activity reports

Within the context of their overall assurance-building process, authorising officers by delegation perform a detailed analysis for each segment of expenditure of their portfolio. At the end of each financial year, they determine the residual error rate for each programme. This residual error rate is based on the (gross) detected error rate, but takes into account any corrections made up to the end of 2021 (
[13](#footnote14)
). It is a snapshot of the level of error still affecting the 2021 expenditure at the moment of reporting. Where this residual error rate is above the materiality threshold of 2%, the authorising officers duly qualify their declarations of assurance with a reservation. This is in line with the European Court of Auditors’ approach (
[14](#footnote15)
).

Reservations are an important element of the Commission’s governance system. The qualification of a declaration of assurance in an annual activity report with a reservation ensures transparency concerning any challenges or weaknesses encountered and their potential financial impact. Reservations preserve the principal of sound financial management by being a tool to address remaining weaknesses and prevent them in future, by developing action plans to mitigate risks and strengthen control systems.

A reservation may or may not have a quantifiable financial impact (
[15](#footnote16)
). Furthermore, some weaknesses trigger multiple reservations. For example, multiple reservations may arise from programme segments implemented by more than one department, or because the weakness resulting in a ‘new’ reservation for the current programming period is a continuation of one from a previous programming period. However, this reporting method provides more precision and transparency.

2021 reservations

For the 2021 reporting year, all 51 authorising officers by delegation declared in their annual activity reports (
[16](#footnote17)
) that they had reasonable assurance. The majority, 41 authorising officers by delegation, issued unqualified declarations of assurance, while 10 issued qualified declarations with a total of 16 reservations. These reservations affect both revenue and expenditure, and relate to a programme or a specific area in their portfolio affected by a weakness (see chart below). In all cases, the authorising officers by delegation concerned adopted action plans to address the underlying weaknesses and mitigate the resulting risks. The situation regarding reservations can be summarised as follows.

·A total of 13 reservations are recurrent from previous year(s), of which 12 relate to the spending programmes and one relates to the revenue side of the EU budget. These reservations are maintained mainly because, under the current programmes’ frameworks, the root causes of the material level of error can be partially mitigated but not fully eradicated. Seven reservations are entirely or partially non-quantified.

·Three reservations are new and are due to a material level of error or serious weaknesses found in the control systems of implementing partners (Member States). However, the financial impact of all three new reservations is limited, amounting to barely EUR 16 million.

·Six reservations were lifted compared to 2020. In four cases, the underlying issues concerning the programme have been resolved, while in two cases the weakness is no longer considered substantial (application of the de minimis rule).

De minimis rule for reservations

Further to the decision by the Corporate Management Board on 30 April 2019, a de minimis rule for reservations has been introduced (
[17](#footnote18)
).

Reservations relating to cases with a residual error rate above the 2% materiality threshold are deemed not to be substantial for segments that represent less than 5% of the department’s total payments and have a financial impact of less than EUR 5 million. Therefore, quantified reservations that do not exceed both thresholds are not needed (
[18](#footnote19)
). This applies especially but not exclusively to the legacy programmes.

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_04006.jpg)

Number of reservations by policy area (2021)

Source: European Commission annual activity reports.

Financial impact of reservations

In cases where the residual error rate is above the materiality threshold, the financial impact resulting from a reservation is obtained by multiplying the relevant programme or segment’s expenditure by the residual error rate. The total financial impact from all reservations was EUR 987 million for 2021, i.e. 19% lower than 2020 when the figure was EUR 1 219 million. This decrease is mainly attributed to the lower level of the error rate in expenditure for agriculture.

The composition and evolution of the financial impact over the years is presented in the chart and the table below.

![](./../../../resource.html?uri=comnat:COM_2022_0401_FIN.ENG.xhtml.COM_2022_0401_FIN_ENG_04007.jpg)

Financial impact of quantified reservations for the years 2017 until 2021 (in million EUR)

Source: European Commission annual activity reports.

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
| Policy area | Total payments in 2021 | Financial impact of the reservations | | | |
|  |  | in 2021 | | in 2020 | |
| Single market, innovation and digital | 19 191 | 15 | | 2 | |
| Cohesion, resilience and values | 80 603 | 423 | | 341 | |
| Natural resources and environment | 56 577 | 539 | | 849 | |
| Migration and border management | 2 881 | 10 | | 6 | |
| Security and defence | 203 | 0 | | 0 | |
| Neighbourhood and the world | 14 034 | 0 | | 21 | |
| European public administration | 7 004 | 0 | | 0 | |
| Total | 180 494 | 987 | | 1 219 | |
| 2014-2020 programmes |  | 987 | | 1 219 | |
| 2007-2013 programmes |  | 0 | | 0 | |
| Policy area | Total own resources in 2021 | Financial impact of the reservations | | Financial impact of the reservations | |
| Own resources | 165 817 | | — | | — |

Table C: Financial impact of quantified reservations 2021 by heading (in million EUR)

Source: European Commission annual activity reports.

The tables below present the detailed situation concerning the reservations for 2021.

·Table D presents the 16 reservations for 2021 affecting revenue and expenditure. For expenditure, they are divided according to the 2014-2020 and 2007-2013 programme periods.

·Table E presents all the reservations from 2020 that were lifted because the underlying issues were solved.

·Table F presents all the cases where the de minimis rule applied: reservations from 2020 that were lifted or new reservations not issued in 2021 based on this rule.

  

Full list of reservations

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | Policy areas | Description of reservation | Department | Impact on legality and regularity | Financial impact (million EUR) |
| 2014-2020 programmes | Single market, innovation and digital | Connecting Europe Facility – energy sector grants | European Climate, Infrastructure and Environment Executive Agency | Reservation issued in 2021  Quantified | 12.61 |
|  |  | Connecting Europe Facility Telecom sector – digital service infrastructure | European Health and Digital Executive Agency | Reservation issued in 2021  Quantified | 2.38 |
|  | Cohesion, resilience and values | European Regional Development Fund / Cohesion Fund / European Neighbourhood Instrument  (38 programmes in 11 Member States and the United Kingdom, 5 European territorial cooperation programmes and 3 European Neighbourhood Instrument cross-border cooperation programmes) | DG Regional and Urban Policy | Quantified | 342.92 |
|  |  | European Social Fund, Youth Employment Initiative and Fund for European Aid to the Most Deprived  (21 European Social Fund / Youth Employment Initiative programmes and 1 Fund for European Aid to the Most Deprived programme in 10 Member States and the United Kingdom) | DG Employment, Social Affairs and Inclusion | Quantified | 79.65 |
|  | Natural resources and environment | European Agricultural Guarantee Fund market measures  (8 reservations for 4 aid schemes in 6 Member States) | DG Agriculture and Rural Development | Quantified | 36.38 |
|  |  | European Agricultural Guarantee Fund direct payments  (14 paying agencies in 7 Member States) | DG Agriculture and Rural Development | Quantified | 170.44 |
|  |  | European Agricultural Fund for Rural Development expenditure for rural development measures  (26 paying agencies in 17 Member States) | DG Agriculture and Rural Development | Quantified | 331.06 |
|  |  | European Maritime and Fisheries Fund  (control system weakness in 1 Member State) | DG Maritime Affairs and Fisheries | Reservation issued in 2021  Quantified | 0.99 |
|  |  | EU emissions trading system registry – security weakness | DG Climate Action | Non-quantified | — |
|  | Migration and border management | Non-research grant programmes – EU action and emergency assistance | DG Migration and Home Affairs | Quantified | 9.83 |
|  |  | Management and control systems for the Asylum, Migration and Integration Fund  (in 3 Member States)  and the Internal Security Fund  (in 5 Member States and Iceland) | DG Migration and Home Affairs | Non-quantified  Quantified    (1 Member state) | —    0.43 |
|  |  | Decentralised agencies – European Border and Coast Guard Agency | DG Migration and Home Affairs | Non-quantified | — |
|  | Neighbourhood and the world | Projects in Libya and Syria for which assurance building is limited (e.g. no direct on-site access to projects) | DG Neighbourhood and Enlargement Negotiations | Non-quantified | — |
| Total for 2014-2020 programmes | | 13 reservations | 9 departments |  | 986.69 |
| 2013-2017 Programmes | Cohesion, resilience and values | European Regional Development Fund / Cohesion Fund / Instrument for Pre-accession Assistance  (7 programmes in 3 Member States, plus 1 Instrument for Pre-Accession Assistance / cross-border cooperation programme) | DG Regional and Urban Policy | Non-quantified | — |
|  |  | European Social Fund  (2 programmes in 2 Member States) | DG Employment, Social Affairs and Inclusion | Non-quantified | — |
| Total for 2007-2013 programmes | | 2 reservations | 2 departments |  | - |
| Revenue | European public administration | Inaccuracy of the traditional own resources amounts transferred to the EU budget | DG Budget | Non-quantified | — |
| Total for 2021 | | 16 reservations | 10 departments |  | 986.69 |

Table D: 2021 list of reservations (in million EUR)

Source: Commission annual activity reports.

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
| Policy area | Description of reservation | Department | Financial impact 2020 | Financial impact 2021 | Assessment result |
| Cohesion, resilience and values | Non-research grant programmes | DG Justice and Consumers | 1.9 | 1.2 | Lifted  (mitigated) |
| Natural resources and environment | 2014-2020 European Maritime and Fisheries Fund  (1 Member State) | DG Maritime Affairs and Fisheries | Non-quantified | Non-quantified | Lifted  (mitigated) |
| Migration and border management | 2007-2013 General programme ‘solidarity and management of migration flows’ | DG Migration and Home Affairs | Non-quantified | Non-quantified | Lifted  (mitigated) |
| Neighbourhood and the world | Direct management grants | DG Neighbourhood and Enlargement Negotiations | 20.8 | 2.9 | Lifted  (mitigated) |
| Total for 2021 | 4 reservations | 4 departments | 22.7 | 4.1 |  |

Table E: 2020 reservation lifted during 2021 because the underlying issues had been resolved (in million EUR)

Source: Commission annual activity reports.

  

|  |  |  |  |  |
| --- | --- | --- | --- | --- |
| Policy area | Description of reservation | Department | Impact on legality and regularity | Financial impact (million EUR) |
| Single market, innovation and digital | Programme for the competitiveness of enterprises and small and medium-sized enterprises | European Innovation Council and SMEs Executive Agency | Lifted from 2020  Quantified | 0.4 |
|  | Connecting Europe Facility Telecom sector – digital service infrastructure | European Climate, Infrastructure and Environment Executive Agency | Quantified | 0.13 |
|  | Seventh framework programme | DG Communications Networks, Content and Technology | Quantified | 0.17 |
|  | Pilot project and preparatory actions | DG Communications Networks, Content and Technology | Quantified | 0.38 |
|  | Seventh framework programme | DG Energy | Quantified | 1.33 |
|  | Seventh framework programme | European Health and Digital Executive Agency | Quantified | 0.06 |
|  | Single European Sky ATM research deployment manager | DG Mobility and Transport | Quantified | 0.00 |
|  | Seventh framework programme | European Research Executive Agency | Quantified | 0.17 |
|  | Research Fund for Coal and Steel | European Research Executive Agency | Quantified | 1.15 |
|  | Seventh framework programme | DG Research and Innovation | Quantified | 0.66 |
|  | Research Fund for Coal and Steel | DG Research and Innovation | Quantified | 0.13 |
| Cohesion, resilience and values | Technical support funds | DG Structural Reform Support | Lifted from 2020  Quantified | 0.14 |
|  | Lifelong learning programme 2007-2013 | European Education and Culture Executive Agency | Quantified | 0.00 |
|  | Tempus 2007-2013 | European Education and Culture Executive Agency | Quantified | 0.01 |
|  | Youth in action 2007-2013 | European Education and Culture Executive Agency | Quantified | 0.00 |
| Migration and border management | Seventh framework programme | DG Migration and Home Affairs | Quantified | 0.00 |
| Total for 2021 | 16 | 11 departments |  | 4.73 |

Table F: Application of the de minimis rule: reservations not issued or lifted during 2021

Source: Commission annual activity reports.

5.4.Preventive and corrective measures applied in 2021

This subsection outlines the preventive and corrective measures actually applied in 2021, which mainly relate to expenditure from previous years. This covers the results of both the Commission’s supervisory tasks and the Member States’ controls.

Indeed, under shared management, the Member States are primarily responsible for identifying any amounts unduly paid and recovering them from beneficiaries. Controls carried out by Member States represent the first layer of control in the activities to protect the EU budget. In most cases, these controls lead to corrections implemented by the Member States before they submit their payment claims or annual accounts to the Commission and, as such, are a key element of the preventive mechanisms. The Commission can apply preventive measures and/or financial corrections due to irregularities or serious deficiencies identified by Member State authorities, its own verifications and audits, investigations by the European Anti-Fraud Office and audits by the European Court of Auditors.

The chart below provides an overview by heading, and the table on the next page provides a complete picture. These amounts correspond to all of the preventive and corrective measures implemented (
[19](#footnote20)
) in 2021 by the Commission and the Member States to protect the EU budget, irrespective of the year in which the initial expenditure was made. 

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Types of preventive and corrective measures implemented in 2021 by multiannual financial framework heading (in million EUR)

Source: European Commission

|  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Multiannual financial framework    heading | Relevant expenditure | Implemented by Member States (\*) | Implemented by Commission | | | Total Commission and Member States | % of relevant expenditure (\*\*\*) |
|  |  |  | Preventive measures | Corrections | Total |  |  |
|  | (a) | (b) | (c) | (d) | (e) = (c) + (d) | (g) = (b) + (e) | (h) = (g) / (a) |
| 1. Single market, innovation and digital | 17 327 | 0 | 142 | 19 | 162 | 162 | 0.9% |
| 2. Cohesion, resilience and values | 75 779 | 3 763 | 33 | 84 | 118 | 3 881 | 5.1% |
| 3. Natural resources and environment (\*\*) | 56 545 | 794 | 1 | 631 | 632 | 1 425 | 2.5% |
| 4. Migration and border management | 2 511 | 0 | 8 | 9 | 17 | 17 | 0.7% |
| 5. Security and defence | 14 | 0 | 0 | 0 | 0 | 0 | 0.0% |
| 6. Neighbourhood and the world | 12 683 | 0 | 110 | 21 | 131 | 131 | 1.0% |
| 7. European public administration | 7 000 | 0 | 4 | 0 | 4 | 4 | 0.1% |
| Total | 171 860 | 4 557 | 298 | 765 | 1 063 | 5 620 | 3.3% |

Overview of the preventive and corrective measures implemented by the Commission and by the Member States in 2021 (million EUR)

(\*)
   Details for each Member State are provided in the annual activity reports of DG Employment, Social Affairs and Inclusion, DG Agriculture and Rural Development, DG Maritime Affairs and Fisheries and DG Regional and urban policy. 
  
All corrections (withdrawals, recoveries and deductions) implemented by the Member States in the accounting year, regardless of the body that detected the error (Member States, Commission, Court of Auditors).

(\*\*)
   Under this heading, the corrections implemented by the Commission for the European Agricultural Guarantee Fund and the European Agricultural Fund for Rural Development amount to EUR 629 million, including EUR 438 million in net financial corrections imposed by the Commission on Member States and EUR 191 million imposed by Member States on final beneficiaries after payment and reimbursed directly to the EU budget.

(\*\*\*)
   These percentages are not fully comparable with the estimated future corrections as they include both preventive and corrective measures, whereas estimated future corrections include only the corrective measures to be taken after the payment has been made.

NB: Due to the rounding of figures to the nearest million EUR, some financial data in the table above may appear not to add up.

Source: European Commission and the annual activity reports of the directorates-general.

The preventive and corrective measures implemented by the Commission in 2021 amounted to EUR 1 063 million, EUR 298 million of which represented preventive measures, while the corrective measures implemented added up to EUR 765 million.

In addition, the preventive and corrective measures implemented by the Member States amounted to EUR 4 557 million in 2021.

The total amount of EUR 5 620 million, which represents 3.3% of the relevant expenditure for 2021, mainly relates to past payments, and includes both preventive and corrective measures. This amount is not comparable to the estimated future corrections (in the range of 0,8% to 1.1%), which only include corrective measures.

Natural resources and environment

Under this heading, the preventive and corrective measures implemented by the Member States in 2021 amounted to EUR 794 million. This includes EUR 772 million for agriculture and rural development, corresponding to exhaustive ex ante administrative and on-site controls performed by the Member States before the payment to beneficiaries (EUR 528 million) and to controls performed by the Member States after the payment for 2014-2020 rural development programmes (EUR 244 million).

The corrective measures implemented by the Commission amounted to EUR 632 million, including EUR 629 million for agriculture and rural development. The latter consists of EUR 438 million in net financial corrections imposed by the Commission on Member States and EUR 191 million in corrections imposed on final beneficiaries by the Member States after payment and reimbursed to the EU budget. Net corrections leading to a reimbursement to the EU budget are characteristic of the European Agricultural Guarantee Fund and the European Agricultural Fund for Rural Development. In 2021, these net financial corrections related notably to specific deficiencies in the Integrated Administration and Control System, deficiencies in the reasonableness of cost for a cost-based system and deficiencies in the administrative controls to establish eligibility of the aid and in the performance of on-the-spot controls of sufficient quality.

Cohesion, resilience and values

Under this heading, preventive and corrective measures implemented by the Member States in 2021 amount to EUR 3 763 million, corresponding entirely to cohesion policy funds. This amount is deducted by the Member States either from the interim payment applications or directly from the annual programme accounts. It entails all corrections implemented by the Member States regardless of the body that detected the error (Member State, Commission or Court of Auditors). About 25% of this amount corresponds to corrections resulting from the work of the audit authorities; around 60% corresponds to prudent, temporary withdrawals by programme authorities to allow for further verifications on the legality and regularity of the concerned expenditure; and 15% is the result of the work of the managing authorities, the Commission and the Court of Auditors. For 2021, the amounts that the Commission decided to ask for correction from the Member States as a result of its controls amounted to EUR 193 million. Member States may reuse the whole of the correction amounts implemented by them to co-finance other eligible projects.

The set-up of the assurance model for the 2014-2020 programming period reduces the risk of a material level of error appearing in the accounts submitted on a yearly basis by the Member States. This is corroborated by the significant decrease, over the years and in comparison with the 2007-2013 programming period, of the risk at payment determined at the Commission level, thus after the deductions and withdrawals made by the Member States. The legal framework provides for the increased accountability of the programme managing authorities, which have to perform sound management verifications in time for the submission of programme accounts each year. During the accounting year, the Commission retains 10% of each interim payment until the national control cycle is finalised. Member States have the opportunity to correct the declared expenditure during the accounting year or at the moment of the submission of the programme accounts by withdrawing the irregular expenditure and replacing it with new, regular expenditure.

It is in the Member States’ best interests to ensure the timely identification of deficiencies in the functioning of the management and control system and the reporting of reliable error rates, since the Commission will make net financial corrections if Member States have not appropriately addressed serious deficiencies before submitting their annual accounts to the Commission. The co-legislators, however, have set restrictive conditions for the application of such net financial corrections, which in practice limits their application. The regulation for the 2021-2027 programming period should simplify the implementation of net financial corrections for irregular expenditure not detected and reported by the Member States.

Multiannual overview

Multiannual figures provide more useful information on the significance of the protective mechanisms implemented because they take into account the multiannual character of most EU spending and neutralise the impact of one-off events.

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Preventive and corrective measures implemented, years from 2017 to 2021 (in million EUR)

Source: 2017-2021 annual activity reports and annual management and performance reports.

For 2017-2021, the preventive and corrective measures amounted to EUR 26 billion, an annual average of EUR 5.3 billion.

During the 2017-2021 period, large numbers of financial corrections were implemented by the Member States for cohesion, resilience and values and for natural resources and environment. This is consistent with the high level of expenditure during these years, particularly for cohesion, where the implementation of the programmes and the corresponding payments reached full cruising speed. The lower amounts in 2017 and 2020 correspond to lower expenditure declared in the corresponding accounting years.

There was a significant decrease in the number of financial corrections implemented by the Commission in 2020 and 2021. There are two main reasons for this. First, the closure between 2017 and 2019 of the majority of the programmes under the cohesion heading for the 2007-2013 programming period. For that period, most corrections took place at the closure of the programmes and were already applied by the Commission. For the 2014-2020 programming period, whereas no net financial corrections have yet been applied by the Commission itself, Member States directly implement financial corrections resulting from Commission controls according to their corrective responsibilities under shared management. This is also the case for rural development, where Member States are, to an increasing extent, directly implementing corrections that result from controls performed after payment. Second, the corrections implemented by the Commission in 2020 and 2021 for agriculture are affected by one-off reimbursements following judgments by the Court of Justice of the EU.

Net financial corrections implemented by the Commission in 2021

The following table presents the types of net financial corrections applied by the Commission as corrective measures in shared management in 2021.

|  |  |  |  |
| --- | --- | --- | --- |
| Multiannual financial framework heading / fund | Net financial corrections | | |
|  | Recovery Order | Decommitment | Total net financial corrections |
|  | (a) | (b) | (c)=(a)+(b) |
| 2. Cohesion, resilience and values | 57 | 19 | 76 |
| European Regional Development Fund and Cohesion Fund | 56 | 17 | 72 |
| European Social Fund / Youth Employment Initiative and Fund for European Aid to the Most Deprived | 1 | 3 | 4 |
| 3. Natural resources and environment (\*) | 438 | 1 | 439 |
| European Agricultural Guarantee Fund | 358 | 0 | 358 |
| European Agricultural Fund for Rural Development | 80 | 0 | 80 |
| European Maritime and Fisheries Fund / European Fisheries Fund / Financial Instrument for Fisheries Guidance | 0 | 1 | 1 |
| 4. Migration and border management | 8 | 0 | 8 |
| Solidarity mechanisms within and outside the EU (special instruments) | 1 | 0 | 1 |
| Total | 503 | 20 | 523 |

2021 net financial corrections implemented by the Commission (corrective measures in shared management) (in million EUR)

NB: Due to the rounding of figures to the nearest million EUR, some financial data in the table above may appear not to add up.

(\*)
   For the purposes of calculating its corrective capacity in the annual activity report, DG Agriculture and Rural Development only takes into account the amounts that relate to conformity clearance decisions adopted by the Commission and published in the Official Journal of the European Union, and deducts the corrections in respect of cross-compliance infringements.

  

Annex 6 – Assurance provided by the Internal Audit Service

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Annex 6 – Assurance provided by the Internal Audit Service

The work of the Internal Audit Service, its principal findings and recommendations and the information from the Audit Progress Committee contribute to the overall assurance-building process at Commission level. The Audit Progress Committee supports the Commission by ensuring the independence of the internal auditor and that audit recommendations are properly taken into account and appropriately followed up.

For the 2021 reporting year, the Internal Audit Service produced an annual internal audit report, in line with Article 118(4) of the financial regulation, which: (1) summarised the performance audits completed in 2021; (2) presented the overall opinion on financial management for the year 2021; (3) recalled the contribution of the Internal Audit Service to the annual activity reporting of the Commission’s directorates-general and the executive agencies; and (4) reported on progress in implementing its audit recommendations.

Financial management: internal auditor’s overall opinion

As required by its mission charter, the Commission’s Internal Audit Service issued an overall opinion, which is based on the audit work it had carried out in the area of financial management in the Commission concerning the previous 3 years (2019-2021) and takes into account information from other sources, namely the reports from the European Court of Auditors.

Based on this audit information, the internal auditor considered that, in 2021, the Commission had put in place governance, risk management and internal control procedures which, taken as a whole, are adequate to give reasonable assurance on the achievement of its financial objectives. However, the overall opinion is qualified with regard to the reservations the authorising officers by delegation made in their declarations of assurance and issued in their respective annual activity reports. In arriving at the overall opinion, the internal auditor also considered the combined impact of all amounts estimated to be at risk at payment as calculated by the authorising officers by delegation, as these go beyond the amounts put under reservation. The overall amounts at risk at payment are the best estimation by the authorising officers by delegation of the amount of the expenditure authorised that was not in conformity with the applicable contractual and regulatory provisions at the time of the payment in 2021. In their annual activity reports, the directorates-general/services estimate amounts at risk at payment to total between approximately EUR 2 785 million and EUR 3 249 million approximately. This corresponds to between 1.6% and 1.9% of total relevant expenditure (
[20](#footnote21)
) from the Commission budget, EDF and EUTFs in 2021 and therefore below the materiality of 2% as defined in the instructions for the preparation of the 2021 AARs.

These amounts at risk at payment in 2021 do not yet include any financial corrections and recoveries related to deficiencies and errors the Directorates-General/services will detect and correct in the future due to the multi-annual corrective mechanisms built into the Commission's internal control systems (
[21](#footnote22)
).

Given these elements, the internal auditor considers that the EU budget is therefore adequately protected in total and over time.

Without further qualifying the opinion, the internal auditor raised the following three ‘emphases of matter’, highlighting issues that require particular attention.

1. Implementation of the EU budget in the context of the current crisis related to the COVID-19 pandemic

The health, social, economic and financial situation created by the COVID-19 pandemic entails potentially high, cross-cutting risks for the institution as regards the implementation of the EU budget and the delivery of its policy priorities.

This includes the operations which are part of the 2014-2020 multiannual financial framework, for which adequate controls (ex post in particular) still need to be performed, and operations under the 2021-2027 multiannual financial framework and the recovery package under Next Generation EU, on assurance, compliance and performance aspects.

To ensure the budget is duly protected over time in the face of the existing unprecedented challenges, the Internal Audit Service stresses that the Commission’s Directorates-General and services should continue to (i) duly assess the risks caused by the COVID-19 pandemic related to financial management in terms of assurance, performance, compliance with the legal framework, and the potential impact on the effectiveness of the Commission’s ability to implement corrective actions due to possible logistical constraints to undertake controls on the spot and the very challenging economic situation faced at EU and national levels (including the possible bankruptcies of final beneficiaries, which could make it difficult to recover undue amounts); and (ii) define and implement adequate mitigating measures, such as adjusting or redefining their control strategies.

Furthermore, the Commission’s Directorates-General should continue to design and implement appropriate financial management, audit and control strategies for operations to support the recovery under NextGenerationEU, in particular as concerns the Recovery and Resilience Facility. Due to the implementation of a new performance-based approach, certain elements of the design of the control strategy covering legality and regularity are still to be further elaborated in 2022, namely the procedures for suspension of payments and reduction of support in cases where milestones and targets for a particular payment request have not been met partially or fully. In addition, the control design has to be completed as concerns the residual responsibility of the Commission in relation to other elements of compliance (i.e. protection of the financial interests of the Union in the case of fraud, corruption, and conflicts of interest or a serious breach of an obligation resulting from the Loan or Financing Agreement).

2. Supervision strategies regarding third parties implementing policies and programmes.

Although the Commission remains fully responsible for ensuring the legality and regularity of expenditure and sound financial management (and also for the achievement of policy objectives), it has increasingly relied on third parties to implement its programmes. This is mostly done by delegating the implementation of the EU’s operational budget or certain tasks to countries outside the EU, international organisations or international financial institutions, national authorities and national 3 agencies in Member States, joint undertakings, non-EU bodies and EU decentralised agencies. Moreover, in certain policy areas, alternative funding mechanisms such as financial instruments are increasingly used and entail specific challenges and risks for the Commission, as also highlighted by the European Court of Auditors.

To fulfil their overall responsibilities, the Directorates-General have to oversee the implementation of the programmes and policies and provide guidance and assistance where needed. Therefore, they have to define and implement adequate, effective and efficient supervision/monitoring/reporting activities to ensure that the delegated entities and other partners effectively implement the programmes, adequately protect the financial interests of the EU, comply with the delegation agreements, when applicable, and that any potential issues which are identified are addressed as soon as possible.

Although actions have been taken in recent years both at the level of the central services and at that of the relevant Directorates-General to mitigate the risks identified as a result of audit work, further improvements are still needed in some areas and in particular as regards pillar assessment in indirect management. This is relevant not only in relation with the closure of activities delegated under the 2014-2020 multiannual financial framework, but more so in view of the increase in the use of equity, guarantee and risk-sharing instruments in the 2021-2027 multiannual financial framework.

3. Reporting on the corrective capacity of the multiannual control systems

The Commission has put in place, together with the Member States (when applicable), multiannual control systems to ensure the sound financial management of EU funds. These systems encompass preventive measures (i.e. controls aiming at preventing errors before payments are made) as well as corrective measures (i.e. controls carried out after the payments and until the closure of the programmes, when applicable). These measures constitute the Commission’s overall corrective capacity (including measures implemented by the Member States).

Considering the multiannual nature of the Commission’s control system, the control results are reported at two moments of the programmes’ cycle through the estimated ‘risk at payment’ (
[22](#footnote23)
) (i.e. after preventive measures) and ‘risk at closure’ (i.e. after preventive and corrective measures). The ‘risk at closure’ (
[23](#footnote24)
) is calculated by subtracting the ‘estimated future corrections’ (
[24](#footnote25)
) from the estimated ‘risk at payment’.

Overall, the Internal Audit Service notes some improvements made in the Directorates-General’s 2021 annual activity reports and the (draft) Annual Management and Performance Report for the EU Budget regarding the information on preventive and corrective measures applied by the Commission and Member States (
[25](#footnote26)
). However, considering the increasing importance of corrections implemented by Member States as an integral part of the control architecture in shared management, the information provided about the corrective capacity still needs to be further improved (in terms of its clarity and the split of the relevant data) to adequately substantiate the Commission’s overall corrective capacity (including corrections requested by the Commission and accepted by Member States), the ‘estimated future corrections’ and the resulting ‘risk at closure’. In particular, (a) additional data is needed on the split between preventive and corrective measures implemented by the Member States and (b) the relationship between the ‘estimated future corrections’ and the ‘corrections implemented’ has to be clearly explained and supported by relevant data, firstly at Directorates-General level in the annual activity reports and secondly at Commission level in the Annual Management and Performance Report for the EU Budget (
[26](#footnote27)
).

These key improvements are particularly important in the area of Cohesion as most of the corrections are implemented by Member States. The Internal Audit Service notes the commitment of the Cohesion DGs to improve the data in this regard (
[27](#footnote28)
). The Internal Audit Service will monitor the developments regarding the impact of the COVID-19 crisis, the reliance on third parties for the execution of programmes, and the corrective capacity of the multiannual systems, on the closure of the 2014-2020 and the implementation of the 2021- 2027 multiannual financial frameworks (together with the recovery package under NextGenerationEU), the political priorities and the Commission’s financial management. This will be done as part of the Internal Audit Service’s updates of the periodic (strategic) risk assessments and resulting audit plans.

Performance: results of audits by the Internal Audit Service

With a view to contributing to the Commission’s performance-based culture and greater focus on value for money, the Internal Audit Service carried out performance audits and audits that included important performance elements (comprehensive audits) in 2021 as part of its 2021-2023 strategic audit plan.

The Internal Audit Service made recommendations to help improve the overall performance of several key processes in the following areas.

Preparedness for the implementation of the 2021-2027 Multi-annual Financial Framework. The 2021-2027 Multi-annual Financial Framework and the recovery package under Next Generation EU should be implemented in accordance with the Financial Regulation and be complementary as regards the funding opportunities and results to be achieved. A number of audits in 2021 focused on the risks related to the design of the overall package, the Commission’s enhanced role in some areas and its new areas of responsibility. The results of these audits indicate that significant improvements are necessary in this domain going forward, with a number of very important recommendations issued in 2021 addressed to the Directorates-General audited.

One audit assessed the preparation of the 2021-2027 programming period in the Directorates-General for Employment, Social affairs and Inclusion, Maritime Affairs and Fisheries, and Regional and Urban Policy. Although the Directorates-General had designed and implemented adequate processes to support the start of the 2021-2027 programming period, two weaknesses were noted on the support to Member States and the timing of the preparation and operational start of the programming period.

A second audit concerned the preparation for the 2021-2027 programming period of the Directorate-General for Migration and Home Affairs funds. The Internal Audit Service noted that the preparation for the 2021-2027 programming period is a process which was still ongoing at the date of the audit report. Although the Directorate-General for Migration and Home Affairs had designed and implemented adequate processes to support the start of the 2021-2027 programming period, there remained a number of weaknesses, notably on delays in work programmes of the thematic facility and progress monitoring in the programming of the 2021-2027 period and reporting to senior management.

For both audits, given the continuing nature of the preparations and the fact that the audits represented a snapshot at a particular point in time, the weaknesses identified may, if left unaddressed, have an impact on subsequent phases of the programming period.

A third audit assessed the European Anti-Fraud Office’s preparedness to implement the Regulation on the establishment of the European Public Prosecutor’s Office (
[28](#footnote29)
). The Internal Audit Service identified weaknesses in the planning and monitoring of the preparatory process, in the investigation and data protection guidelines and in information technology related aspects and issued three very important recommendations.

A fourth audit assessed the Directorate-General for Competition’s preparedness of the Competition programme. Although the Directorate-General had put in place a framework for the implementation of the Competition programme under the 2021-2027 Multi-annual Financial Framework, the audit identified a remaining weakness in defining and structuring some of the key elements of the Competition programme, which may in turn affect its effective implementation.

Finally, the audit on the preparedness for the new European Statistical Programme under the 2021-2027 programming period in Eurostat did not identify any significant performance issues.

Supervision strategies for the implementation of programmes by third parties. Authorising officers have to set up adequate and effective strategies and activities for supervising and monitoring the delegated entities' effective implementation of the programmes and protection of the EU budget, and for promptly addressing any identified potential difficulties.

In previous years, the Internal Audit Service performed several audits of the supervision arrangements in place in Directorates-General and services for the implementation of programmes (and/or policies) by third parties. It frequently identified weaknesses in the effectiveness of the supervision strategies. In its overall opinion on financial management, and as in previous years, the Internal Audit Service once again formulated an emphasis of matter in relation to the supervision strategies for third parties implementing policies. Based on the 2021 audit results, the Internal Audit Service conclusion is that in some policy areas the situation is improving.

In its 2021-2023 strategic audit plan, the Internal Audit Service aimed for an integrated risk-based approach, to perform, where appropriate, audits encompassing both Commission partner Directorates-General and decentralised agencies or other autonomous EU bodies.

In 2021, the first two multi-entity audits were finalised, focusing, at the level of the Commission Directorates-General, on the supervision arrangements in place between respectively the Directorate-General for Energy and Fusion for Energy (F4E), (the European joint undertaking managing Europe's contribution to ITER (
[29](#footnote30)
)) and between the Directorate-General for Migration and Home Affairs and the European Border and Coast Guard Agency (Frontex). The results were satisfactory with no high residual risks or major weaknesses identified in the Commission Directorates-General audited.

Another audit was performed in the Directorates-General for Climate Action and Environment on their relations with the European Environment Agency and the European Chemicals Agency. The Directorates-General have both put in place adequate processes to support their relations with the decentralised agencies concerned. However, their effectiveness and efficiency was found to be impaired by a weakness was noted that relates to the oversight role of both the Directorates-General for Climate Action and Environment on the European Environment Agency’s resources. Another weakness in the Directorate-General for Environment related to the supervision and coordination mechanisms with the European Environment Agency.

Internal control systems in selected Directorates-General: legality and regularity, compliance. An additional priority of the 2021 audit plan (based on the 2021-2023 strategic audit plan) was to provide reassurance to the College and the Directorates-General and services on the efficient and effective functioning of the internal control systems as regards financial management.

In the area of shared management, the Internal Audit Service finalised three audits. In the audit on interruptions, suspensions and financial corrections for the 2014-2020 European Structural and Investment Fund, the Internal Audit Service acknowledged that the Directorates-General for Employment, Social Affairs and Inclusion, for Maritime Affairs and Fisheries and for Regional and Urban Policy are operating under the constraints of a very challenging legal framework in the form of the Common Provisions Regulation. In particular, the conditions for the application of net financial corrections are stricter than the Commission’s original proposals. Consequently, the audit findings need to be seen in this context. The Internal Audit Service concluded that there were a number of weaknesses that have an impact on the effective implementation of the Directorates-General’s processes for interruptions, suspensions and financial corrections.

The land parcel identification system is a key control mechanism based on aerial or satellite photographs, which records all agricultural parcels in the Member States. The Internal Audit Service found that although adequate controls to support the management of the Member States’ systems were in place, their effectiveness is affected by weaknesses. The monitoring and follow-up of the land parcel identification system quality assessment exercise needs to be improved.

The audit in the Directorate-General for Agriculture and Rural Development on support, monitoring and checks of the work of certification bodies did not result in any significant performance issues.

The Internal Audit Service also finalised various audits in direct management. In the audit on the implementation of audit results in Horizon 2020, the Internal Audit Service found that the audited Directorates-General and Executive Agencies have an adequate and effective internal control system for the implementation of audit results of the Common Audit Service. Nevertheless, weaknesses remain as regards the monitoring and reporting on the implementation of the ex post audit results (
[30](#footnote31)
). 

The Internal Audit Service also examined the Commission’s ‘single electronic data interchange area’ (SEDIA) initiative, a recent Commission initiative unique in its kind. The objective of SEDIA is to fully automate and integrate the process for handling information on procurement and grants. Since its launch in 2017, the initiative suffered from a lack of availability of adequate information technology tools. Although the Research Executive Agency delivers the services for which it is responsible under the SEDIA initiative in an effective manner, there are weaknesses affecting their efficiency and specific elements related to the compliance with personal data protection rules.

The Directorate-General for Structural Reform Support delivers a growing number of technical support projects to EU Member States, mainly through the Structural Reform Support Programme for the 2014-2020 programming period and the Technical Support Instrument for the 2021–2027 programming period. The Internal Audit Service found that while processes and controls were overall adequately designed, weaknesses exist as regards their effective implementation.

The establishment of statutory rights and calculation of individual entitlements are core services provided by the Office for the Administration and Payment of Individual Entitlements to current and former staff of the European Commission and other EU institutions and bodies. Despite an adequately designed control framework to ensure the correct establishment of rights and calculation of entitlements for staff, a very important weakness remains regarding the effectiveness and efficiency of its control strategy.

In several audits the Internal Audit Service did not identify any significant issues: (1) Horizon 2020 grant management in the European Research Council Executive Agency; (2) the Instrument for Pre Accession II grants in direct management in the Directorate-General for Neighbourhood and Enlargement Negotiations; and (3) the closure processes of previous programmes (implemented under different budget implementation modes) in the Directorate-General for Neighbourhood and Enlargement Negotiations.

EU law implementation. A key responsibility of Directorates-General is to support, monitor and enforce the implementation and application of the European Union (EU) law (‘acquis’).

Two audits assessed how the Directorates-General concerned: (1) proactively support and monitor Member States in the correct implementation and application of EU legislation before its entering into force and assess the transposition of EU directives; (2) monitor the ongoing application of EU law, including the handling of stakeholder complaints and management of own-initiative cases; and (3) manage the enforcement of potential breaches and weaknesses via dialogues with Member States and infringement procedures.

The Internal Audit Service acknowledged the particular resource challenges faced by the Directorate-General for Energy due to an increasing portfolio of responsibilities, particularly on the European Green Deal and new policy and legislative initiatives. The Internal Audit Service concluded that despite overall adequately designed internal controls for the support, monitoring and enforcement of EU energy law application, a weakness remains on the effectiveness and efficiency of the management supervision of the compliance assessment process.

At the level of the Directorate-General for Mobility and Transport, the internal control system in place ensures an effective support, monitoring and enforcement of the EU transport law application.

In addition, a third audit targeted the stakeholders’ complaints process in the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs. No significant performance issues were identified.

Information technology security. The Internal Audit Service completed two audits concerning information technology security: a central-level audit on the management and monitoring of compliance with the Commission’s information technology security framework and a local-level, multi-Directorate-General audit on information technology security in the human resources family.

The first audit revealed the magnitude of the task at hand for and the challenges faced by the Directorate-General for Informatics to get all other Directorates-General to report on their compliance with the very high number of information security controls, particularly when they are faced with many other priorities. Although the Directorate-General for Informatics had put in place the necessary corporate tools to support the effective implementation of information technology security requirements across the Commission, significant weaknesses remained in two areas: (1) in information technology security compliance management and reporting practices; and (2) in the compliance management process.

Due to the sensitive nature of the information processed by the services of the human resources family, it is essential to have highly secured information technology systems and adequate security controls. The audit yielded mixed results and showed that information technology security is at varying levels of maturity between services. For the Directorate-General for Human Resources and Security, a number of significant weaknesses led the Internal Audit Service to conclude that the information technology governance, management and control processes need to be further improved to effectively mitigate the risks identified. In the Office for Administration and Payment of Individual Entitlements and the European Personnel Selection Office, despite certain weaknesses, the situation was more positive overall. As regards the role played by the Directorate-General for Informatics as service provider to the human resource family, the audit found a number of significant weaknesses on how it interacts with those Directorates-General/services.

Performance-related issues in other processes. Two audits assessed performance aspects of other processes (external stakeholder management and crisis communication) with satisfactory results. The Internal Audit Service did not identify any significant weaknesses.

Contribution of the Internal Audit Service to the annual activity reporting of the authorising officers by delegation

The Internal Audit Service issued limited conclusions on the state of internal control to every directorate-general and service in February 2022. These limited conclusions contributed to the 2021 annual activity reports of the directorates-general and services concerned. They draw on the audit work carried out in the last 3 years and cover all open recommendations issued by the Internal Audit Service. The Internal Audit Service’s conclusions on the state of internal control in the directorates-general are limited to the management and control systems that were audited in the past 3 years (2019-2021).

Follow-up of previous Internal Audit Service recommendations

The Internal Audit Service’s follow-up work on its previous recommendations confirmed that, overall, these are being implemented satisfactorily by the Commission’s directorates-general, services and executive agencies and the control systems in the audited departments are improving.

·Over the 2017-2021 period, 74% (i.e. 652 out of a total of 881) of the accepted recommendations made by the Internal Audit Service to the Commission departments were assessed by the auditees as implemented, while 26% (229 recommendations) were still in progress (stemming notably from recently completed audits for which the action plans are ongoing) at the cut-off date of 31 January 2022. Out of these 229 recommendations in progress, none is classified as critical and 72 are rated as very important. 65 of these are overdue and only seven (very important) are long overdue (i.e. still open more than 6 months after the original implementation date), representing 0.8% of the total number of accepted recommendations of the past 5 years.

·Once management reports that the recommendations have been completed, the Internal Audit Service conducts follow-up audits to assess the effectiveness of their implementation. The Internal Audit Service concluded that 94% of the recommendations followed up in 2017-2021 had been adequately and effectively implemented by the auditees.

  

Annex 7 – Summary of the work and conclusions of the Audit Progress Committee

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Annex 7 – Summary of the work and conclusions of the Audit Progress Committee

The Audit Progress Committee held four rounds of meetings (
[31](#footnote32)
) between June 2021 and May 2022. Due to the outbreak of the COVID-19 pandemic in 2020, videoconferencing was introduced in March 2020 for all preparatory group and committee meetings. This approach was continued until February 2022 to ensure the continuity of work in these challenging circumstances.

The Audit Progress Committee focused its work on the key objectives set out in its 2021 and 2022 work programmes. During this reporting period, the committee also considered a number of other issues.

In addition to its programmed activities, the committee continued to monitor the COVID-19 situation in connection with its areas of responsibility. It did so, for example, when considering the draft audit plan of the Internal Audit Service for 2022 and the indicative audit plan for 2023, together with the list of critical risks identified by management for 2022, in order to obtain further reassurance about the effective mitigation of risks related to COVID-19 response and recovery measures, as well as the adequate coverage of relevant high risks by internal audit work.

During the reporting period, the Audit Progress Committee also followed up on the European Court of Auditors’ previous request to be more systematically involved in the work of the committee. The committee’s preparatory group invited the Director of the Presidency of the European Court of Auditors to attend its meetings in June 2021 and February 2022, to discuss the Court of Auditors’ multiannual strategy and annual work programmes for 2021 and 2022. In its conclusions, the committee underlined the importance of continuing these exchanges in order to maintain a complete and clear overview of planned external and internal audits as well as key developments in the Court of Auditors’ approach to assurance and performance work at the Commission.

The majority of the committee’s work between June 2021 and May 2022 related to the four main objectives of its annual work programme: (1) considering the audit planning of the internal auditor; (2) analysing the results of internal and external audit work to identify potentially significant risks, including in a thematic manner; (3) monitoring the follow-up to significant residual risks identified by audit work; and (4) ensuring the independence of the internal auditor and monitoring the quality of internal audit work.

The Audit Progress Committee is satisfied with the independence and quality of the internal audit work. This year, the Audit Progress Committee welcomed the overall result of the external quality assessment (
[32](#footnote33)
) of the Internal Audit Service for the 2017-2021 period. It showed that the Commission’s internal audit function is in conformity with the international standards of internal auditing and the code of ethics of the Institute of Internal Auditors, and, from a maturity perspective, is overall an advanced/leading function. The committee noted that this is an important factor for assurance about the quality of the work of the Internal Audit Service, especially in view of its comprehensive reorganisation and the challenging conditions under which it performs its tasks.

The committee was also satisfied that the internal auditor’s planning adequately covers the audit universe and continues to cover the key risk areas. When considering the Internal Audit Service’s audit plan for 2022 and indicative plan for 2023, the committee welcomed the fact that they take due account of the high risks that were identified in key areas for the Commission, such as performance, legality and regularity, data protection and COVID-19 response and recovery measures.

It also took note of the important reassurance provided by the Internal Auditor that the audit plan will provide sufficient coverage for delivering the overall opinion on the Commission’s financial management as well as the limited conclusions on internal control, notwithstanding the resourcing and other challenges which the Internal Audit Services faces in an ever-more complex audit environment. The committee also welcomed the convergence between the critical risks identified by management and the high risks identified by the Internal Audit Service, which continues to illustrate the robustness of the institution’s approach.

The committee took note of the draft annual internal audit report for 2021 and the draft overall opinion, which was positive and only qualified with regard to the reservations set out by the directors-general in their annual activity reports. It welcomed the reassurance provided by the internal auditor that the risks identified through the audit work were properly reported by the Commission services and, where appropriate, the subject of reservations. The committee took note of the three emphases of matter raised by the internal auditor, which do not qualify the overall opinion, but require the attention of the College and the authorising officers by delegation. These concerned: (i) the implementation of the EU budget in the context of the crisis related to the COVID-19 pandemic (third consecutive year), (ii) supervision strategies regarding third parties implementing policies and programmes (seventh consecutive year), and (iii) the clarity of reporting and split of relevant data regarding the corrective capacity of the multiannual control systems. The committee underlined the importance of the elements raised by the internal auditor under these three emphases of matter, two of which have been raised several times before, and called on the Commission’s directorates-general and services to continue to pay due attention to these matters in view of ensuring the sound financial management of EU funds and the effective protection of the EU budget over time.

During the reporting period, the committee examined audit reports on an individual or thematic basis according to the seriousness or significance of the findings. It examined nine final audit reports from the Internal Audit Service in the presence of the auditees. The committee held a planned thematic discussion on information technology security, which was especially relevant and timely in the context of the war in Ukraine and the expected increase in the number and seriousness of cyberattacks.

During the previous reporting period, the Internal Audit Service had raised a total of three critical (
[33](#footnote34)
) audit findings in audits concerning data protection (one finding) and the pillar assessment process in services operating in the field of external action (two findings). Throughout this reporting period, the committee received regular feedback from the Internal Audit Service and other central services on the implementation of the corresponding recommendations, which overall progressed according to plan.

During the reporting period, the committee monitored the effective implementation of internal audit recommendations by reviewing and discussing the quarterly reports on long-overdue recommendations. All very important recommendations issued by the Internal Audit Service in 2021 were accepted, and management established satisfactory action plans to address the risks identified by the Internal Audit Service. Overall, the situation on the implementation of the recommendations was very satisfactory.

The rate of the internal auditor’s recommendations issued between 2017 and 2021 that were found to have been effectively implemented in an Internal Audit Service follow-up audit, was 94%. Overall, the number of very important audit recommendations that are more than 6 months overdue has fallen considerably over recent years, as shown in the chart below.

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Number of critical and very important Internal Audit Service recommendations overdue by more than 6 months.

During the reporting period, the Audit Progress Committee also continued to scrutinise the state of play of the implementation of the Court of Auditors’ recommendations, which remained stable and satisfactory, along with the Commission’s follow-up to the Court’s 14th consecutive unqualified opinion on the reliability of the consolidated EU accounts.

Despite the continuing challenge of the COVID-19 pandemic, the work done during the 2021 reporting year demonstrates that the committee remains an effective actor in the Commission’s governance structures. It continues to play an important role in enhancing governance, organisational performance and accountability across the entire organisation.

Annex 8 – Compliance with payment time limits

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Annex 8 – Compliance with payment time limits

The statutory time limits for payments are laid down in the main body of the financial regulation (
[34](#footnote35)
). There are also some time limits applied in exceptional cases, which are detailed in sector-specific regulations.

Article 116 of the financial regulation provides that payments to creditors must be made within deadlines of 30, 60 or 90 days, depending on how demanding and complex it is to test the deliverables against the contractual obligations. Most of the payments have to be executed within 30 days; this represented a global average of 85% in volume in 2018, 2019, 2020 and 2021. For contracts and grant agreements for which payment depends on the approval of a report or a certificate, the time limit for the purposes of the payment periods is no longer automatically suspended until the report or certificate in question has been approved.

The period of 2 months remains valid for payments under Article 93 of the regulation on the general provisions of the European Regional Development Fund, the European Social Fund and the Cohesion Fund (
[35](#footnote36)
).

Compliance with payment time limits has been reported by the services in their annual activity reports since 2007. In accordance with the applicable rules, the payment times reported in this annex have been calculated based on the data available in the ABAC corporate accounting system, as follows.

·For payments relating to contracts and grant agreements signed before 2013, the time limits specified in the 2007 financial regulation are applied:

·where the payment is contingent upon the approval of a report, the time from approval of the report until payment;

·where no report is required, the time from reception of the payment request until payment.

·For payments relating to contracts and grant agreements signed from 2013 onwards, the 2018 financial regulation is applied:

·both where no report is required and where the payment is contingent upon the approval of a report, the time from reception of the payment request until payment.

The Commission’s global average payment time is monitored by the accounting officer. It has evolved as follows in recent years.

|  |  |  |  |  |
| --- | --- | --- | --- | --- |
| All time limits combined | 2018 | 2019 | 2020 | 2021 |
| Global average net payment time | 18.4 days | 16.3 days | 15.8 days | 16.6 days |
| Global average gross payment time | 21.5 days | 19.1 days | 19.9 days | 21.1 days |

The data show that the global average net payment time of the Commission services, i.e. excluding the period of suspensions, has been below 30 days for 4 years for all time limits combined. Services are encouraged to continue their efforts in this regard and to implement follow-up measures whenever payment-time problems are identified. Taking into account the period of suspensions, the global average gross payment time is also provided in the table above.

The table below illustrates the evolution of late payments, i.e. payments made after the expiry of the statutory time limit in recent years for all payments combined. All the data used have been extracted from the corporate accounting system.

|  |  |  |  |  |
| --- | --- | --- | --- | --- |
| All time limits combined | 2018 | 2019 | 2020 | 2021 |
| Late payments in number | 7.6% | 5.0% | 3.2% | 2.4% |
| Late payments in value | 3.3% | 2.2% | 0.9% | 1.8% |
| Average number of overdue days ( [36](#footnote37) ) | 45.5 days | 42.4 days | 29.9 days | 22.7 days |

The number of late payments and the amounts associated with them have decreased significantly since 2018. This result is believed to be linked to the more stringent requirements associated with the financial regulation, and regular monitoring. Another reason relates to the sufficient availability of payment appropriations.

Concerning the interest paid for late payments (
[37](#footnote38)
) (see figures in the table below), the total amount paid by the Commission in 2021 decreased compared to 2020.

|  |  |  |  |  |
| --- | --- | --- | --- | --- |
|  | 2018 | 2019 | 2020 | 2021 |
| Interest paid for late payments | EUR 385 468 | EUR 380 653 | EUR 341 495 | EUR 235 456 |

The causes of late payments include the complexities of evaluating the supporting documents that are a prerequisite for all payments. This is particularly onerous when the supporting documents are reports of a technical nature that sometimes have to be assessed by external experts. Other causes are associated with difficulties in coordinating the financial and operational checks of payment requests, issues with the management of payment suspensions and a temporary lack of payment appropriations.

·The 2009 communication establishing Commission internal payment targets (
[38](#footnote39)
) provided a clear incentive for services to reduce their payment times. There is scope for reducing payment times further. When setting up action plans in this area, services should focus on further reducing late payments from their current levels of 2.4% of payments in terms of number and 1.8% in terms of value. The aim should be to meet the statutory payment time for every payment.

The table below gives a detailed overview of the suspensions of payments.

|  |  |  |  |  |
| --- | --- | --- | --- | --- |
|  | 2018 | 2019 | 2020 | 2021 |
| Total number of suspensions | 24 643 | 24 765 | 22 095 | 20 552 |

Suspensions are a tool that allows the authorising officer responsible to temporarily withhold the execution of a payment because the amount is not due, because of the absence of appropriate supporting documentation or because there are doubts about the eligibility of the expenditure concerned. They allow the authorising officer to avoid irregular or erroneous payments and are fundamental in ensuring sound financial management and protecting the EU’s financial interests.

Annex 9 – Summary of waivers of recoveries

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Annex 9 – Summary of waivers of recoveries

In accordance with Article 101(5) of the financial regulation, the Commission reports each year to the budgetary authority on the waivers it has granted in an annex to the summary of the annual activity reports.

The table below shows the total value and the number of waivers above and below EUR 60 000 in the 2021 financial year.

The individual annual activity reports provide more details on the individual waivers above EUR 60 000.

|  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
| EU budget area | Department | Total value of waivers | Number (left) and value (right, EUR) of waivers above EUR 60 000 | | Number (left) and value (right, EUR) of waivers below EUR 60 000 | |
| European Commission | Legal Service | 16 512 |  |  | 3 | 16 512 |
|  | DG Communication | 187 602 | 1 | 133 980 | 1 | 53 622 |
|  | DG Budget | 107 |  |  | 2 | 107 |
|  | DG Human Resources and Security | 11 900 |  |  | 1 | 11 900 |
|  | DG Informatics | 5 000 |  |  | 1 | 5 000 |
|  | DG Economic and Financial Affairs | 17 475 |  |  | 2 | 17 475 |
|  | DG Employment, Social Affairs and Inclusion | 6 104 |  |  | 1 | 6 104 |
|  | DG Energy | 1 338 699 | 4 | 1 316 947 | 1 | 21 752 |
|  | DG Environment | 3 937 896 | 2 | 3 892 412 | 2 | 45 484 |
|  | DG Research and Innovation | 281 653 | 1 | 183 710 | 5 | 97 943 |
|  | DG Communications Networks, Content and Technology | 5 613 205 | 22 | 5 197 845 | 46 | 415 360 |
|  | DG Maritime Affairs and Fisheries | 20 |  |  | 1 | 20 |
|  | DG Structural Reform Support | 251 441 | 1 | 168 178 | 3 | 83 263 |
|  | DG Education, Youth, Sport and Culture | 8 437 |  |  | 2 | 8 437 |
|  | DG Migration and Home Affairs | 9 456 |  |  | 1 | 9 456 |
|  | DG Neighbourhood and Enlargement Negotiations | 200 060 | 1 | 71 090 | 14 | 128 970 |
|  | DG International Partnerships | 4 404 950 | 21 | 3 821 017 | 30 | 583 933 |
|  | DG European Civil Protection and Humanitarian Aid Operations (ECHO) | 63 |  |  | 1 | 63 |
|  | Service for Foreign Policy Instruments | 291 401 | 2 | 291 352 | 1 | 49 |
|  | Office for the Administration and Payment of Individual Entitlements | 0 |  |  | 1 | 0 |
|  | European Education and Culture Executive Agency | 763 873 | 4 | 341 198 | 31 | 422 675 |
|  | European Climate, Infrastructure and Environment Executive Agency | 866 423 | 3 | 790 192 | 3 | 76 230 |
|  | European Research Council Executive Agency | 134 283 |  |  | 9 | 134 283 |
|  | Consumers, Health, Agriculture and Food Executive Agency ( [39](#footnote40) ) | 119 852 | 1 | 119 852 |  |  |
| European Commission |  | 18 466 414 | 63 | 16 327 774 | 162 | 2 138 640 |

|  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
| EU budget area | Department | Total value of waivers | Number (left) and value (right, EUR) of waivers above EUR 60 000 | | Number (left) and value (right, EUR) of waivers below EUR 60 000 | |
| European Development Fund |  | 6 635 891 | 5 | 6 363 062 | 15 | 272 829 |
| European Development Fund |  | 6 635 891 | 5 | 6 363 062 | 15 | 272 829 |

|  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
| EU budget area | Department | Total value of waivers | Number (left) and value (right, EUR) of waivers above EUR 60 000 | | Number (left) and value (right, EUR) of waivers below EUR 60 000 | |
| Guarantee funds |  | 6 342 124 | 32 | 5 472 648 | 33 | 869 476 |
| Guarantee funds |  | 6 342 124 | 32 | 5 472 648 | 33 | 869 476 |
|  |  |  |  |  |  |  |
| Total general |  | 31 444 429 | 100 | 28 163 484 | 210 | 3 280 945 |

Annex 10 – Report on negotiated procedures

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Annex 10 – Report on negotiated procedures

1.1.Legal basis

Article 74(10) of the financial regulation (
[40](#footnote41)
) requires authorising officers by delegation to record contracts concluded under negotiated procedures. Furthermore, the Commission is required to annex a report on negotiated procedures to the summary of the annual activity reports referred to in Article 74(9) of the financial regulation.

1.2.Methodology

A distinction has been made between the 49 departments that normally do not provide external aid and those three departments (development, neighbourhood and foreign policy instruments) that conclude procurement contracts in the area of external relations (different legal basis: Chapter 3 of Title VII of the financial regulation) or award contracts on their own account, but outside the territory of the European Union.

These three departments have special characteristics as regards data collection (decentralised services etc.), the total number of contracts concluded and the thresholds to be applied for the recording of negotiated procedures (EUR 20 000), along with the possibility to have recourse to negotiated procedures within the framework of the Rapid-Reaction Mechanism (extreme urgency). For these reasons, a separate approach has been used for procurement contracts awarded by these three departments.

1.3.Overall results of negotiated procedures recorded

The 49 departments, excluding external relations

On the basis of the data received, the following statistics were registered: 73 negotiated procedures with a total value of EUR 898 million were processed out of a total of 603 procurement procedures (negotiated, restricted or open) for contracts over EUR 60 000, with a total value of EUR 4.39 billion.

For the Commission, the average proportion of negotiated procedures in relation to all procedures amounts to 12.1% in number (14.4% in 2020), which represents 20.5% of all procedures in value (58.6% in 2020). The assessment of negotiated procedures compared with the previous year shows a decrease in the order of 2.3 percentage points in terms of the relative number and a decrease of 38.2% percentage points in terms of the relative value.

An authorising department shall report to the institution if the proportion of negotiated procedures awarded in relation to the number of the contracts is ‘distinctly higher than the average recorded for the institution’, i.e. if it exceeds the average proportion by 50% or if the increase from one year to the next is over 10% in proportion. Thus, the reference threshold for 2021 is 18.2% (21.6% in 2020).

Thirteen departments exceeded the reference threshold and nine increased their number of negotiated procedures by more than 10% when compared to 2020, with seven also exceeding the reference threshold. It should be noted that, among these 13 departments, five concluded one to two negotiated procedures, and the low total number of procedures conducted (less than or equal to four) makes their average high; consequently, their respective results are to be considered non-significant. One department, although it did not exceed the reference threshold, increased its number of negotiated procedures by more than 10% when compared to the previous year.

It should be noted that 25 departments have not used any negotiated procedures, including five that awarded no contracts over EUR 60 000 in 2021.

The three external relations departments

On the basis of the data received, the following statistics were registered: 92 negotiated procedures for a total contract value of EUR 156 million were processed out of a total of 268 procedures for contracts over EUR 20 000, with a total value of about EUR 486 million.

For the three external relations departments, the average proportion of negotiated procedures in relation to all procedures amounts to 34.3% in number (26.8% in 2020), which represents 32.1% of all procedures in value (13.4% in 2020). If compared with the previous year, these departments have registered an increase of 7.5 percentage points in terms of the number of negotiated procedures in relation to all procedures and an increase of 18.7 percentage points in terms of the relative value.

An authorising service shall report to the institution if the proportion of negotiated procedures awarded in relation to the number of the contracts is ‘distinctly higher than the average recorded for the institution’, i.e. if it exceeds the average proportion by 50% or if the increase from one year to the next is over 10%. Thus, the reference threshold for 2021 is fixed at 51.5% (40.2% in 2020); one of the three departments exceeds it.

One of the three departments presented an increase of over 10% in the proportion of negotiated procedures compared to the previous year.

1.4.Overall results of negotiated procedures recorded

The number of negotiated procedures in 2021 decreased significantly compared to 2020 (from 96 to 73), which also corresponds to the decrease in the number of procurement procedures (from 668 to 603). Overall, this is a positive result.

The following categories of justifications for the use of a negotiated procedure were presented by the departments exceeding the thresholds.

·Crisis management. One of the main reasons for using negotiated procedures in 2021 was the purchase of medical countermeasures and vaccines to fight the COVID-19 pandemic.

·Similar services/works as provided for in the initial tender specifications. One service in charge of large interinstitutional procurement procedures realises during the implementation of the contract that the needs initially provided for do not match the consumption trend during the execution of the contract. Therefore, the lead service must start a negotiated procedure on behalf of all institutions to increase the ceiling of the framework contract in question. One relevant example of such a justification was the implementation of the digital workplace initiative – for which DG Informatics has to cater as the facilitator and service provider vis-à-vis other directorates-general and other EU institutions – the provisions of which could not be discontinued.

·Objective situations in the sector of economic activity, where the number of operators may be very limited or in a monopoly situation (due to them having specific technical expertise or for specific technical reasons, exclusivity rights, highly specialised markets where competition is limited to very few economic operators or is even completely absent, limited choice of financial software for trading systems and of ratings agencies, etc.). Monopoly situations related to the technical compatibility requirements of previous purchases of scientific equipment, for example maintenance and upgrades that the Commission cannot give to any other organisation aside from the original equipment contractor, which holds the necessary intellectual property rights. Situations of technical captivity may also arise, especially in the information technology domain (absence of competition for technical reasons and/or because of the protection of exclusive rights related to the purchase of proprietary licenses or the maintenance and continuity of existing applications such as upgrades). Another example is the case of a software vendor – the owner of the proprietary software – who is the sole economic operator possessing the expertise to provide related high-level services that are intrinsically linked to the necessary software.

·Unsuccessful open or restricted procedures, leading to a negotiated procedure.

·Additional services not included in the initial contract that become necessary due to extreme urgency brought about by unforeseen circumstances.

Regular available measures are proposed or implemented by the budget department and other departments concerned to redress the use of negotiated procedures when other alternatives may be available, including the following.

·Improved programming of procurement procedures.

·Improvement of the system of evaluation of needs. The Commission’s central services will continue their active communication and consultation policy with the other Commission departments, institutions, agencies and other bodies along the following axes:

·permanent exchange of information via regular meetings with user services and agencies in appropriate forums;

·ad hoc detailed surveys prior to the initiation of (interinstitutional) procurement procedures for the evaluation of needs;

·better estimates of the needs of interinstitutional framework contracts and better monitoring with semester consumption reports from user services or agencies.

·Training and improved interservice communication. The budget department’s Central Financial Service provides regular practical training sessions on procurement and community of practice sessions.

·Presentation of alternative approaches, such as open-source solutions.

·Regular updating of standard corporate model documents and guidance documents on procurement.

·Building of an end-to-end corporate e-procurement solution.

Annex 11 – EU trust funds

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Annex 11 – EU trust funds

The Commission, with several partners, established four EU trust funds between 2014 and 2016.

The EU trust funds’ annual reports set out, in accordance with Article 252 of the financial regulation, the activities they supported, their implementation and performance and their accounts. These reports are annexed to the annual activity reports of the Commission’s DG Neighbourhood and Enlargement Negotiations and DG International Partnerships. The table below summarises the four trust funds and lists the corresponding directorate-general.

|  |  |  |
| --- | --- | --- |
| Established in: | Trust funds | Annual report annexed to the annual activity report of: |
| 2014 | Bêkou Trust Fund – EU Trust Fund for the Central African Republic | DG International Partnerships |
| 2014 | Syrian Crisis Trust Fund – EU Regional Trust Fund in Response to the Syrian Crisis | DG Neighbourhood and Enlargement Negotiations |
| 2015 | Africa Trust Fund – European Union Emergency Trust Fund for stability and addressing root causes of irregular migration and displaced persons in Africa. This trust fund involves three regions: Horn of Africa, Sahel and Lake Chad, and North of Africa (management cross-sub-delegated to DG Neighbourhood and Enlargement Negotiations) | DG International Partnerships |
| 2016 | Colombia Trust Fund – European Union Trust Fund for Colombia | DG International Partnerships |

The constitutive act of an EU trust fund, signed by the European Commission and donors, details the main features of the trust fund, including its specific objectives, the rules for the composition and the internal rules of its board, along with the duration of the trust fund, which is always limited in time.

The EU trust funds were all set up for an initial 60 months (5 years), apart from the Colombia Trust Fund, which was set up for 4 years. Before their end date, they were all subject to an extension of at least 1 year, adopted after consultation with the European Parliament and the Council of the European Union. This 1‑year extension allowed the trust funds to adapt their activities to address the COVID-19 challenge on the ground in the countries within their scope. This also gave them the necessary time to adapt their ongoing actions to the new challenges and to finalise their contracting activities by the end of 2021. The implementation of the existing projects will still continue until 2025, however.

The Bêkou Trust Fund

By the end of 2021, the total amount of contributions from the European Development Fund, the EU budget and external donors (France, Germany, Italy, the Netherlands and Switzerland) had reached over EUR 310 million. By 31 December 2021, the Bêkou Trust Fund had funded actions totalling EUR 307 million in commitments and had concluded contracts with a total value of EUR 305 million.

The priority sectors that the trust fund supports include basic services, notably in health; agriculture development; the restoration of national and local administrations; economic recovery; and reconciliation within Central African society.

The Syrian Crisis Trust Fund

The contributions from the EU budget amounted to more than EUR 2.1 billion by the end of 2021, while the contributions received from Member States and other donors amounted to EUR 262 million, including EUR 24.7 million from Turkey. By 31 December 2021, the EU budget, 22 Member States and Turkey had contributed to the trust fund, with the total contributions made available reaching more than EUR 2.3 billion.

Projects focus mainly on education, livelihoods and health, for which more than EUR 2.3 billion has been contracted to the trust fund’s implementing partners on the ground. The region that benefits is the Middle East – mainly Iraq, Jordan, Lebanon and Turkey.

These projects support refugees and host communities in their need for basic education and child protection, training and higher education, better access to healthcare, and improved water and wastewater infrastructure, along with projects promoting resilience, economic opportunities and social inclusion.

The Africa Trust Fund

In total, the 27 EU Member States, along with Norway, Switzerland and the United Kingdom, had, by the end of 2021, contributed EUR 623 million to this EU trust fund. The contributions through EU instruments and European Development Funds amounted to EUR 4.4 billion.

As of 31 December 2021, a total of EUR 5.081 billion had been made available for commitments, of which EUR 5.061 billion or nearly 100% had been committed. The split is EUR 2.1 billion (42%) for the Sahel and Lake Chad window, EUR 1.8 billion (35%) for the Horn of Africa and EUR 880 million (17%) for the North of Africa region. Contracts have been signed with implementing partners for a total amount of more than EUR 5 billion (
[41](#footnote42)
).

The trust fund aims to help foster stability and contribute to better migration management. In line with the EU’s development-led approach to forced displacement, it also helps address the root causes of instability, forced displacement and irregular migration by promoting economic and equal opportunities, peace and development.

The Colombia Trust Fund

In 2021, the EUTF donors contributed EUR 3.42 million to the Fund, bringing the total contributions for EUTF for Colombia to EUR 130.91 million. Of the total amount, about EUR 37 million (28%) came from 20 EU Member states, the UK and Chile and EUR 94 million (72%) from the EU budget. At the end of 2021, nearly 100% of the total appropriations had been committed and contracted.

The trust fund helps to support the implementation of the peace agreement in the early recovery and stabilisation phases of the post-conflict environment. The overall objectives are to help Colombia secure a stable and lasting peace, to rebuild its social and economic fabric and to give new hope to its people.

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:   [(1)](#footnoteref2)
    ()
       NB: Such corrections are not sanctions and do not include penalties and fines.
:   [(2)](#footnoteref3)
    ()
       Or equivalent, such as after the expenditure is accepted (i.e. registered in the Commission’s accounting system) or after the pre-financing is cleared.
:   [(3)](#footnoteref4)
    ()
       For example, ‘adjusted error rates’ is used by DG Agriculture and Rural Development and ‘residual total error rates’ is used by DG Employment, Social Affairs and Inclusion, DG Maritime Affairs and Fisheries and DG Regional and Urban Policy.
:   [(4)](#footnoteref5)
    ()
       See the Commission decision laying down guidelines for determining financial corrections to be made to expenditure financed by the Union for non-compliance with the applicable rules on public procurement (C(2019) 3452).
:   [(5)](#footnoteref6)
    ()
       In the case of the common agricultural policy, the term ‘estimated final amount at risk’ is used instead, to better reflect the fact that there is no set closure point for European Agricultural Guarantee Fund measures.
:   [(6)](#footnoteref7)
    ()
       European Court of Auditors, 
    [Annual report on the implementation of the EU budget for the 2020 financial year](https://www.eca.europa.eu/Lists/ECADocuments/annualreports-2020/annualreports-2020_EN.pdf)
    , paragraph 1.34.
:   [(7)](#footnoteref8)
    ()
       European Court of Auditors,  
    [Annual report on the implementation of the EU budget for the 2020 financial year](https://www.eca.europa.eu/Lists/ECADocuments/annualreports-2020/annualreports-2020_EN.pdf)
    , Annex 1.1 (on methodology), paragraph 11.
:   [(8)](#footnoteref9)
    ()
       The only exceptions are: (a) 1% for revenue, which is stricter than the Court, in view of the very large amounts; and (b) the range of 2-5% for the Horizon 2020 programme (see details in Section 2.1.2, Annex II, Volume II of this report).
:   [(9)](#footnoteref10)
    ()
       European Court of Auditors, 
    [Annual report on the implementation of the EU budget for the 2020 financial year](https://www.eca.europa.eu/Lists/ECADocuments/annualreports-2020/annualreports-2020_EN.pdf)
    , Annex 1.1 (on methodology), paragraph 20.
:   [(10)](#footnoteref11)
    ()
       European Court of Auditors, 
    [Annual report on the implementation of the EU budget for the 2020 financial year](https://www.eca.europa.eu/Lists/ECADocuments/annualreports-2020/annualreports-2020_EN.pdf)
    , Annex 1.1 (on methodology), paragraph 11.
:   [(11)](#footnoteref12)
    () 
       In line with Volume II Annex 2, this does not include the payments made under the Resilience and Recovery Facility that are dealt with separately in Volume II Annex 3.
:   [(12)](#footnoteref13)
    ()
       As a result, the content of these headings differs slightly from the headings presented in Annexes 1 and 4.
:   [(13)](#footnoteref14)
    ()
       The residual error rate is an ‘intermediate’ type of error rate between estimated risk at payment and estimated risk at closure, up to the time of reporting in the management cycle.
:   [(14)](#footnoteref15)
    ()
       European Court of Auditors, 
    [Annual report on the implementation of the EU budget for the 2020 financial year](https://www.eca.europa.eu/Lists/ECADocuments/annualreports-2020/annualreports-2020_EN.pdf)
    ,, Chapter 1, Annex 1.1 (on methodology), paragraph 20.
:   [(15)](#footnoteref16)
    ()
       Reservations are non-quantified when the financial impact is zero, when it is not possible to assess the financial impact accurately or when the effect is only reputational.
:   [(16)](#footnoteref17)
    ()
       
    [Annual activity reports](https://ec.europa.eu/info/publications/annual-activity-reports_en)
    .
:   [(17)](#footnoteref18)
    ()
       Announced in the 2018 annual management and performance report (p. 173).
:   [(18)](#footnoteref19)
    ()
       Without prejudice to maintaining a reservation for reputational reasons, if applicable.
:   [(19)](#footnoteref20)
    ()
       A financial correction is implemented when: (1) it is recorded in the Commission’s accounts; (2) it is deducted from the amounts declared by the Member State in an interim or final payment claim; (3) the commitment appropriations corresponding to the financial correction amount have been cancelled.
:   [(20)](#footnoteref21)
    ()
       Expenditure means the total amount of payments made in 2021 minus the total amount of new pre-financing paid in 2021 plus the total amount of old pre-financing cleared in 2021 as reported by the Commission services in their 2021 AARs.
:   [(21)](#footnoteref22)
    ()
       In view of the importance of the multi-annual corrective mechanism leading to the amounts at risk at closure, the IAS is carrying out in 2022 a limited review on the reporting of the Commission’s preventive and corrective measures (corrective capacity) in six DGs covering the four policy areas with the highest amounts for these measures.
:   [(22)](#footnoteref23)
    ()
       The ‘risk at payment’ quantifies any errors that remain after preventive measures and payments have been made but before corrective measures have been applied.
:   [(23)](#footnoteref24)
    ()
       The ‘risk at closure’ is the risk estimated when controls are completed and legally no further action can be taken.
:   [(24)](#footnoteref25)
    ()
       The ‘estimated future corrections’ (or ‘estimated corrective measures’) is the amount of expenditure in breach of applicable regulatory and contractual provisions, that the DG conservatively estimates it will identify and correct through controls that will be implemented after the payment is authorised (i.e. not only including those already implemented at the time of reporting (i.e. AAR) but also those that will be implemented during the next years until the end of the programme).
:   [(25)](#footnoteref26)
    ()
       E.g. new table (in the Annual Management and Performance Report for the EU Budget – Annex 5.4) with the total measures applied in 2021 by Commission (preventive and corrective) and by Member States; and new information (in the individual AARs of DG REGIO and DG EMPL- Annexes 7H) on financial corrections accepted by the Member States as a result of the DGs (and ECA) audit activity.
:   [(26)](#footnoteref27)
    ()
       Based on the draft Annual Management and Performance Report for the EU Budget, while the ‘estimated future corrections’ are calculated at a range between 0.8% and 1.1% of the relevant expenditure for 2021, no comparable data exist for the ‘corrections implemented’ as the latter (which represents 3.3% of the relevant expenditure for 2021), includes both preventive and corrective measures while the former includes only corrective measures.
:   [(27)](#footnoteref28)
    ()
       E.g. extract from annual activity report of REGIO (Annex 7H): ‘In particular, financial corrections requested by REGIO in 2021 through its audit activity and accepted by Member States comprise…This represents REGIO’s corrective capacity due to the Commission’s and the audit work of the Court of Auditors. REGIO is currently collecting the required data to be able, in future annual activity reports, to report this information on a multiannual basis per Member State since the beginning of the programming period’. A similar statement is included in the annual activity report of DG EMPL.
:   [(28)](#footnoteref29)
    ()
       Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’)
:   [(29)](#footnoteref30)
    ()
       International Thermonuclear Experimental Reactor
:   [(30)](#footnoteref31)
    ()
       ‘Audit results’ refers to the Common Audit Service and European Court of Auditors audit results (including audit results extensions), as well as European Anti-Fraud Office’s investigation results (under the form of financial recommendations).
:   [(31)](#footnoteref32)
    ()
       The 103rd, 104th, 105th and 106th rounds of the Audit Progress Committee.
:   [(32)](#footnoteref33)
    ()
       The standards of the Institute of Internal Auditors require an external quality assessment of the internal audit function to be performed once every 5 years. The external quality assessment for the 2017-2021 period was performed by EY.
:   [(33)](#footnoteref34)
    ()
       Critical recommendations from the Internal Audit Service relate to the highest level of risk for the institution, and are relatively rare. When they occur, they are discussed by the Audit Progress Committee in the presence of the audited service(s) and the Internal Audit Service.
:   [(34)](#footnoteref35)
    ()
       Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union (OJ L 193, 30.7.2018, p. 1).
:   [(35)](#footnoteref36)
    ()
       Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy (OJ L 231, 30.6.2021, p. 159).
:   [(36)](#footnoteref37)
    ()
       I.e. above the statutory time limit.
:   [(37)](#footnoteref38)
    ()
       I.e. no longer conditional upon the presentation of a request for payment (with the exception of amounts below EUR 200).
:   [(38)](#footnoteref39)
    ()
       Communication from Mrs Grybauskaitė in agreement with the President to the Commission – Streamlining financial rules and accelerating budget implementation to help economic recovery (SEC(2009) 477).
:   [(39)](#footnoteref40)
    ()
       This executive agency closed during 2021.
:   [(40)](#footnoteref41)
    ()
       Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).
:   [(41)](#footnoteref42)
    ()
       
    [Monthly report](https://myintracomm.ec.europa.eu/corp/budget/reporting/official-reporting/Pages/budget-implementation.aspx)
     on the Multiannual Implementation of the EU Trust Funds as of 31.12.2021.

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