Source: EURLEX
Language: en
Format: md

**Council of the**
**European Union**

**Interinstitutional File:**

**2018/0190(COD)**

**LEGISLATIVE ACTS AND OTHER INSTRUMENTS**

**Brussels, 26 March 2021**
**(OR. en)**

**14146/20**

**CULT 93**
**AUDIO 66**
**CADREFIN 461**
**RELEX 1020**
**IA 120**
**CODEC 1371**

Subject: Position of the Council at first reading in a view of the adoption of a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE
COUNCIL establishing the Creative Europe Programme (2021 to 2027)
and repealing Regulation (EU) No 1295/2013

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**REGULATION (EU) 2021/ …**

**OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL**

**of …**

**establishing the Creative Europe Programme (2021 to 2027)**

**and repealing Regulation (EU) No 1295/2013**

**(Text with EEA relevance)**

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular,

Article 167(5), and Article 173(3) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee **[1]**,

Having regard to the opinion of the Committee of the Regions **[2]**,

Acting in accordance with the ordinary legislative procedure **[3]**,

**1** OJ C 110, 22.3.2019, p. 87.
**2** OJ C 168, 16.5.2019, p. 37.
**3**
Position of the European Parliament of … (not yet published in the Official Journal) and
position of the Council at first reading of … (not yet published in the Official Journal).
Position of the European Parliament of … (not yet published in the Official Journal).

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Whereas:

(1) Culture, arts, cultural heritage and cultural diversity are of great value to European society

from a cultural, educational, democratic, environmental, social, human rights and

economic point of view and should be promoted and supported. The Rome Declaration

of 25 March 2017 and the European Council of 14 and 15 December 2017 stated that

education and culture are key to building inclusive and cohesive societies for all and to

sustaining European competitiveness.

(2) According to Article 2 of the Treaty on European Union (TEU), the Union is founded on

the values of respect for human dignity, freedom, democracy, equality, the rule of law and

the respect for human rights, including the rights of persons belonging to a minority. Those

values are common to the Member States in a society in which pluralism,

non-discrimination, tolerance, justice, solidarity and equality between women and men

prevail. Those values are further reaffirmed and articulated in the rights, freedoms and

principles enshrined in the Charter of Fundamental Rights of the European Union (the

‘Charter’), which has the same legal value as the Treaties under Article 6 TEU. In

particular, the freedom of expression and information and the freedom of the arts and

science are enshrined, respectively, in Articles 11 and 13 of the Charter.

(3) Article 3 TEU further specifies that the Union’s aim is to promote peace, its values and the

well-being of its peoples and that, inter alia, it is to respect its rich cultural and linguistic

diversity and ensure that Europe’s cultural heritage is safeguarded and enhanced.

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(4) The communication of the Commission of 22 May 2018 entitled ‘A New European

Agenda for Culture’ sets out objectives for the cultural and creative sectors. It aims to

harness the power of culture and cultural diversity for social cohesion and societal

well-being by fostering the cross-border dimension of cultural and creative sectors and

fostering their capacity to grow, to encourage culture-based creativity in education and

innovation, and for jobs and growth, and to strengthen international cultural relations. The

Creative Europe Programme (the ‘Programme’), together with other Union programmes

and funds, will support the New European Agenda for Culture. The intrinsic value of

culture and of artistic expression should be preserved and promoted, and artistic creation

should be at the heart of the Programme. That is also consistent with the 2005 Unesco

Convention on the Protection and Promotion of the Diversity of Cultural Expressions,

which entered into force on 18 March 2007 and to which the Union and its Member States

are parties.

(5) In order to foster the shared area of cultural diversity for the peoples of Europe, it is

important to promote the transnational circulation of artistic and cultural works, collections

and products, thereby encouraging dialogue and cultural exchanges, and the transnational

mobility of artists and of cultural and creative professionals.

(6) Safeguarding and enhancing cultural heritage facilitates free participation in cultural life, in

line with the United Nations Universal Declaration of Human Rights and the International

Covenant on Economic, Social and Cultural Rights. Therefore, cultural heritage plays an

important role in the construction of a peaceful and democratic society, in processes of

sustainable development and in the promotion of cultural diversity.

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(7) The promotion of European cultural diversity is based on the freedom of artistic

expression, the capabilities and competences of artists and cultural operators, the existence

of flourishing and resilient cultural and creative sectors and the ability of artists and

cultural operators to create, innovate and produce their works and distribute them to a

larger and more diverse European audience. This thereby enlarges the business potential of

the cultural and creative sectors, increases access to and the promotion of creative content,

artistic research and creativity, and contributes to sustainable growth and job creation. In

addition, the promotion of creativity and new knowledge contributes to boosting

competitiveness and sparking innovation in industrial value chains. The Union’s rich

cultural and linguistic diversity is a key asset for the European project. At the same time,

the European cultural and creative market is characterised by geographical specificities,

linguistic specificities, or both, which can cause market fragmentation. Continuing efforts

are therefore required to ensure that the cultural and creative sectors fully benefit from the

European single market and, in particular, from the digital single market.

(8) The digital shift represents a paradigm change for cultural and creative sectors. It has

reshaped habits, relations, and production and consumption models. This presents a

number of challenges. At the same time, the digital shift offers new opportunities for

cultural and creative sectors in terms of the creation of, distribution of and access to

European works, which benefits European society as a whole. The Programme should

encourage cultural and creative sectors to take advantage of those opportunities.

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(9) The Programme should take into account the dual nature of the cultural and creative

sectors, recognising, on the one hand, the intrinsic and artistic value of culture and, on the

other, the economic value of those sectors, including the broader contribution of those

sectors to growth, competitiveness, creativity and innovation. The Programme should also

take into account the positive impact of culture on intercultural dialogue, social cohesion

and the dissemination of knowledge. This requires strong European cultural and creative

sectors, in particular a vibrant European audiovisual industry, given its capacity to reach

diverse audiences and its economic importance, including its economic importance for

other creative sectors. However, competition in global audiovisual markets has been

further intensified by the deepening digital shift, for example changes in media production

and consumption and the growing position of global platforms in the distribution of

content. Therefore, there is a need to step up support for the European industry.

(10) As exemplified by the Union action for the European Capitals of Culture, established by

Decision No 445/2014/EU of the European Parliament and of the Council **[1]** (the ‘European

Capitals of Culture’), the cultural and creative sectors have an important role in enhancing

and revitalising the Union’s territories. In that way, the cultural and creative sectors are key

drivers for boosting quality-based tourism and regional, local and urban development

across the Union.

**1** Decision No 445/2014/EU of the European Parliament and of the Council of 16 April 2014
establishing a Union action for the European Capitals of Culture for the years 2020 to 2033
and repealing Decision No 1622/2006/EC (OJ L 132, 3.5.2014, p. 1).

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(11) In order to be effective, the Programme should take into account the specific nature and

challenges of the different cultural and creative sectors, their different target groups and

their particular needs through tailor-made approaches within a strand dedicated to the

audiovisual sector (the ‘MEDIA strand’), a strand dedicated to the other cultural and

creative sectors (the ‘Culture strand’) and a cross-sectoral strand (the ‘Cross-sectoral

strand’).

(12) The Programme should support actions and activities with European added value, which

complement regional, national, international and other Union programmes and policies and

positively impact European citizens, and should support the development and promotion of

transnational cooperation and exchanges within the cultural and creative sectors. Through

such actions and activities, the Programme contributes to the strengthening of European

identity and values while promoting cultural and linguistic diversity.

(13) Music, in all its forms and expressions, and in particular contemporary and live music, is

an important component of the cultural, artistic and economic landscape of the Union and

its heritage. It is an element of social cohesion and it serves as a key instrument to enhance

economic and cultural development. The Culture strand should therefore pay attention to

the music sector.

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(14) The Culture strand should promote the networking of creative communities and foster

cross-border and multi-disciplinary collaboration with the use of different skillsets, such as

artistic, creative, digital and technological skillsets.

(15) The cross-sectoral strand aims to exploit the potential of collaboration among different

cultural and creative sectors and to address the common challenges they face. There are

benefits in terms of knowledge transfer and administrative efficiencies to be gained from a

joint transversal approach. In this context, the Programme desks contribute to the

achievement of the objectives of the Programme and its implementation.

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(16) Union intervention is needed in the audiovisual sector to accompany the Union’s Digital

Single Market policies. That concerns, in particular, the modernisation of the copyright
framework by means of Directives (EU) 2019/789 **[1]** and (EU) 2019/790 **[2]** of the

European Parliament and of the Council, and Directive 2010/13/EU of the
European Parliament and of the Council **[3]**, as amended by Directive (EU) 2018/1808 of the
European Parliament and of the Council **[4]** . Directives (EU) 2019/789 and (EU) 2019/790

seek to strengthen the capacity of European audiovisual operators to create, finance,

produce and disseminate works that are prominently displayed on different media, for

example TV, cinema or Video On Demand, that are available and attractive to audiences in

a more open and competitive market within Europe and beyond. Those Directives also aim

to achieve a well-functioning market place for creators and right holders, especially for

press publications and online platforms, and to ensure fair remuneration of authors and

performers, which are dimensions that should be taken into account across the Programme.

Furthermore, support should be scaled up in order to address recent market developments,

in particular the stronger position of global platforms of distribution in comparison to

national broadcasters that traditionally invest in the production of European works. As the

market conditions and audiovisual operators continue to evolve, specific criteria to define

what constitutes an independent production company should be provided in the context of

the implementation of the Programme.

**1** Directive (EU) 2019/789 of the European Parliament and of the Council of 17 April 2019
laying down rules on the exercise of copyright and related rights applicable to certain online
transmissions of broadcasting organisations and retransmissions of television and radio
programmes, and amending Council Directive 93/83/EEC (OJ L 130, 17.5.2019, p. 82).
**2** Directive (EU) 2019/790 of the European Parliament and of the Council of 17 April 2019 on
copyright and related rights in the Digital Single Market and amending Directives 96/9/EC
and 2001/29/EC (OJ L 130, 17.5.2019, p. 92).
**3** Directive 2010/13/EU of the European Parliament and of the Council of 10 March 2010 on
the coordination of certain provisions laid down by law, regulation or administrative action
in Member States concerning the provision of audiovisual media services (Audiovisual
Media Services Directive) (OJ L 95, 15.4.2010, p. 1).
**4** Directive (EU) 2018/1808 of the European Parliament and of the Council of 14 November
2018 amending Directive 2010/13/EU on the coordination of certain provisions laid down
by law, regulation or administrative action in Member States concerning the provision of
audiovisual media services (Audiovisual Media Services Directive) in view of changing
market realities (OJ L 303, 28.11.2018, p. 69).

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(17) The Programme should allow for the broadest possible participation of organisations in the

cultural and creative sectors in it and for those organisations to access the Programme in

the broadest way possible, regardless of their geographical origin. The Programme should

support those organisations and the best talent, wherever located, to operate across borders

and internationally. The MEDIA strand should take into account the differences across

countries regarding the production and distribution of audiovisual content and access to

audiovisual content and trends relating to the consumption of audiovisual content, and, in

particular, their linguistic and geographical specificities, thereby providing a more level

playing field, broadening the participation of, and increasing collaboration among,

Member States with different audiovisual capacities and supporting European talent,

wherever located, to operate across borders and internationally. The specificities of the

outermost regions referred to in Article 349 of the Treaty on the Functioning of the

European Union (TFEU) should also be taken into account.

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(18) The special actions under the Programme such as the Union action for the European

Heritage Label established by Decision No 1194/2011/EU of the European Parliament and

of the Council **[1]** (the ‘European Heritage Label’), the European Heritage Days, European

prizes in the areas of contemporary, rock and pop music, literature, heritage and

architecture and the European Capitals of Culture have directly reached millions of

European citizens, have demonstrated the social and economic benefits of European

cultural policies, and should therefore be continued and whenever possible expanded. The

Culture strand should support the networking activities of the European Heritage Label

sites. Consideration should also be paid to the possibility of extending the European prizes

to new fields and sectors, notably theatre.

(19) Culture is key to strengthening inclusive and cohesive communities. In the context of

migration issues and integration challenges, culture plays a fundamental role in providing

opportunities for intercultural dialogue and in integrating migrants and refugees, helping

them to feel part of host societies, and in developing good relations between migrants and

new communities.

(20) In order to contribute to an inclusive society, the Programme should promote and increase

cultural participation across the Union, in particular with regard to people with disabilities

and people from disadvantaged backgrounds.

**1** Decision No 1194/2011/EU of the European Parliament and of the Council of
16 November 2011 establishing a European Union action for the European Heritage Label
(OJ L 303, 22.11.2011, p. 1).

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(21) In accordance with the Davos Declaration of 22 January 2018 entitled ‘Towards a

high-quality Baukultur for Europe’, steps should be taken to promote a new integrated

approach to the shaping of a high-quality built environment which is anchored in culture,

which strengthens social cohesion, which guarantees a sustainable environment and which

contributes to the health and well-being of the population as a whole. That approach should

not only place an emphasis on urban areas, but also on the interconnectivity of peripheral

and rural areas. The concept of Baukultur encompasses all factors which have a direct

impact on the quality of life of citizens and communities, thereby fostering inclusivity,

cohesion and sustainability in a very concrete way.

(22) Freedom of expression and artistic freedom are at the core of vibrant cultural and creative

sectors. In particular, the news media sector needs a free, diverse and pluralistic media

environment. In conjunction with Directive 2010/13/EU, the Programme should therefore

promote a free, diverse and pluralistic media environment, encouraging crossovers and

cross-cutting activities supporting the news media sector. The Programme should provide

support for new media professionals and enhance the development of critical thinking

among citizens by means of promoting media literacy.

(23) The Programme should also stimulate interest in and improve access to European

audiovisual works, in particular through audience development measures, including film

literacy.

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(24) The mobility of artists and cultural workers beyond borders under the Culture strand can

contribute to better linked, stronger and more sustainable cultural and creative sectors in

the Union because this is a way to accelerate the development of skills and the learning

curve within the cultural and creative sectors, to improve intercultural awareness and to

foster the transnational co-creation, co-production, circulation and dissemination of works.

(25) Cooperation projects, in particular small-scale projects, given the specificities of the

cultural and creative sectors, should be at the core of the Culture strand. Therefore, the

Commission should facilitate participation in the Programme by achieving substantial

simplification of bureaucratic procedures, mostly in the application stage, and, for

small-scale projects, by allowing higher co-financing rates.

(26) In line with Articles 8 and 10 TFEU, the Programme, in all its activities, should support

gender mainstreaming and the mainstreaming of non-discrimination objectives and should,

where applicable, define appropriate gender-balance criteria. Women are actively engaged

in cultural and creative sectors as authors, professionals, teachers, artists and audience

members. However, it is less likely that women occupy decision-making positions in

cultural, artistic and creative institutions. Therefore, the Programme should promote

female talent in order to support women’s artistic and professional careers.

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(27) Taking into account the Joint Communication of 8 June 2016 entitled ‘Towards an EU

strategy for international cultural relations’, endorsed by the resolution of the

European Parliament of 5 July 2017 on the mandate for the trilogue on the 2018 draft

budget **[1]**, and the Council conclusions of 24 May 2017 on an EU strategic approach to

international cultural relations, European funding instruments and, in particular, the

Programme should recognise the relevance of culture in international relations and its role

in promoting European values by dedicated and targeted actions designed to have a clear

Union impact on the global scene.

(28) In line with the communication of the Commission of 22 July 2014 entitled ‘Towards an

integrated approach to cultural heritage for Europe’, relevant policies and instruments

should ensure the legacy of the 2018 European Year of Cultural Heritage, which

successfully and efficiently mainstreamed culture into other policy fields, in particular

through a participatory governance approach, in drawing out the long term and

sustainability value of Europe’s cultural heritage, developing a more integrated approach to

its preservation and valorisation and supporting the sustainable safeguarding, the

regeneration, the adaptive reuse and the promotion of its values through awareness-raising

and networking activities. In the culture sector, consideration should be given to supporting

artists, creators and artistic craftspeople skilled in the traditional trades related to cultural

heritage restoration. In the audiovisual sector, in particular, heritage works are a crucial

source of memory and cultural diversity and represent potential market opportunities. In

this context, audiovisual archives and libraries contribute to the preservation and re-use of,

and new market developments for, heritage works.

**1** OJ C 334, 19.9.2018, p. 253.

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(29) In line with the communication of the Commission of 10 March 2020 entitled ‘A New

Industrial Strategy for Europe’, the Union should rely on its strengths, in particular its

diversity, its talents, its values, its way of life and its innovators and creators.

(30) The success of the Programme relies on the development of innovative and effective

projects that generate good practices in terms of transnational European cooperation in the

cultural and creative sectors. Wherever possible, such success stories should be promoted,

encouraging the support of new business models and skills, fostering traditional know-how

and translating creative and interdisciplinary solutions into economic and social value.

(31) The Programme should be open, subject to certain conditions, to the participation of

Members of the European Free Trade Association, acceding countries, candidate countries

and potential candidates benefiting from a pre-accession strategy, European

Neighbourhood Policy countries and the Union’s strategic partners.

(32) Third countries which are members of the European Economic Area may participate in

Union programmes in the framework of the cooperation established under the Agreement

on the European Economic Area **[1]**, which provides for the implementation of the

programmes on the basis of a decision adopted under that Agreement. Third countries may

also participate on the basis of other legal instruments. A specific provision should be

introduced in this Regulation requiring third countries to grant the necessary rights and

access required for the authorising officer responsible, the European Anti-Fraud Office

(OLAF) and the Court of Auditors to comprehensively exercise their respective

competences.

**1** OJ L 1, 3.1.1994, p. 3.

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(33) Third countries should aim to participate fully in the Programme. However, as regards

third countries that do not fulfil the conditions for participating in the MEDIA and

Cross-sectoral strands but participate in the Culture strand, they should be able to set up

and support Programme desks to promote the Programme in their country and to stimulate

cross-border cooperation within the cultural and creative sectors.

(34) Derogations from the obligation to fulfil the conditions set out in Directive 2010/13/EU

should be subject to scrutiny and granted to European Neighbourhood Policy countries in

duly justified cases, taking into account the specific situation of the audiovisual market in

the country concerned and the level of integration in the European audiovisual policy

framework. Progress towards the achievement of the objectives set out in

Directive 2010/13/EU should be monitored on a regular basis. Moreover, participation in

actions funded by the MEDIA strand should be set out on a case-by-case basis in the

relevant work programmes.

(35) The Programme should foster the cooperation between the Union and international

organisations such as Unesco, the Council of Europe, including Eurimages and the

European Audiovisual Observatory (the ‘Observatory’), the Organisation for Economic

Co-operation and Development (OECD) and the World Intellectual Property Organisation.

The Programme should also support the Union commitment relating to the Sustainable

Development Goals, in particular its cultural dimension. As regards the audiovisual sector,

the Programme should ensure the Union’s contribution to the work of the Observatory.

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(36) Reflecting the importance of tackling climate change in line with the Union’s

commitments to implement the Paris Agreement adopted under the United Nations

Framework Convention on Climate Change and to achieve the United Nations’ Sustainable

Development Goals, the Programme is intended to contribute to mainstreaming climate

actions and to the achievement of an overall target of 30 % of Union budget expenditure

supporting climate objectives. In line with the European Green Deal as a blueprint for

sustainable growth, the actions under this Regulation should respect the ‘do no harm’

principle. During the implementation of the Programme, relevant actions should be

identified and put in place without changing the fundamental character of the Programme,

and should be reassessed in the context of the relevant evaluations and review process.

(37) For simplification and efficiency, the Commission should be able to divide budgetary

commitments into annual instalments. In that case, the Commission during the

Programme’s implementation should commit the annual instalments, taking into account

the progress of the actions that receive financial assistance, their estimated needs and the

budget available. The Commission should communicate to the beneficiaries of grants an

indicative timetable covering the commitment of the individual annual instalments.

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(38) Horizontal financial rules adopted by the European Parliament and by the Council on the

basis of Article 322 TFEU apply to this Regulation. Those rules are laid down in the

Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council **[1]** (the

‘Financial Regulation’) and determine in particular the procedure for establishing and

implementing the budget through grants, procurement, prizes and indirect implementation,

and provide for checks on the responsibility of financial actors. Rules adopted on the basis

of Article 322 TFEU also include a general regime of conditionality for the protection of

the Union budget.

(39) ‘LUX - the European Audience Film Award by the European Parliament and the European

Film Academy’ has established itself as a distinctive European prize, promoting and

disseminating European films that reflect European identity and values beyond national

borders, and building on collaborations with a community of renowned film creators and

European film organisations and networks.

**1** 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).

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(40) Since its creation, the European Union Youth Orchestra has developed a unique expertise

in promoting access to music, as well as intercultural dialogue, mutual respect and

understanding through culture, while also favouring the international career development

and training of young musicians. The particularity of the European Union Youth Orchestra

lies in the fact that it is a European orchestra, created by a resolution of the

European Parliament, that transcends cultural boundaries and is composed of young

musicians selected across Europe in accordance with demanding artistic criteria through a

rigorous and transparent annual audition process in all Member States. This special

contribution to Europe’s cultural diversity and identity should be acknowledged by, for

example, providing for actions in which the European Union Youth Orchestra and similar

European cultural entities can apply to participate. The possibility of multiannual funding

for such entities should be provided for in order to ensure the stability of their functioning.

(41) Organisations in the cultural and creative sectors with a large European geographical

coverage and whose activities entail delivering cultural services directly to the European

citizens and that thus have the potential to have direct impact on European identity should

be eligible for Union support.

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(42) In order to ensure the efficient allocation of funds from the general budget of the Union, it

is necessary that all actions and activities carried out under the Programme provide

European added value. It is also necessary to ensure that they complement Member States’

activities. Consistency, complementarity and synergies should be sought with funding

programmes that support policy areas with close links to each other, ensuring that potential

beneficiaries are aware of the different funding opportunities, and with horizontal policies

such as Union competition policy.

(43) Financial support should be used to address market failures or sub-optimal investment

situations in a proportionate manner, and actions should not duplicate or crowd out private

financing or distort competition in the internal market.

(44) It is important that the Programme address the structural challenges of Europe’s cultural

and creative sectors, which have been exacerbated by the COVID-19 pandemic. The

Programme encompasses the fundamental role of European culture and media in citizens’

well-being and in empowering them to take informed decisions. The Programme, together

with other relevant Union funding programmes and Next Generation EU, should support

the short-term recovery of the cultural and creative sectors, enhance their longer-term

resilience and competitiveness in order to best address potential major crises in the future

and accompany their digital and ecological transition.

(45) The policy objectives of the Programme are also addressed through financial instruments

and budgetary guarantees under the policy windows of the 2021-2027 Invest EU

Programme, which, inter alia, continue to facilitate access to finance for small and

medium-sized enterprises and organisations in the cultural and creative sectors.

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(46) Impact, quality and efficiency in the implementation of projects under the Programme

should constitute key evaluation criteria for the selection of the projects in question.

Taking into account the technical expertise required to assess proposals under specific

actions of the Programme, members of committees to evaluate such proposals (‘evaluation

committees’) may be external experts. When selecting the external experts, due

consideration should be paid to their professional backgrounds and to the gender balance

of the committee in question.

(47) The Programme should include a realistic and manageable system of qualitative and

quantitative performance indicators to accompany its actions and to monitor its

performance on a continuous basis. Such monitoring and information and communication

actions relating to the Programme and its actions should build on the three strands of the

Programme.

(48) Considering the importance and complexity of gathering and analysing data and of

measuring the impact of cultural policies, the Commission should help to gather evidence

and statistical data on the trends and developments of the cultural and creative sectors by

making use of its expertise and that of other relevant research institutions and should

regularly report to the European Parliament and to the Council on the data gathered.

(49) The Programme should be established for a period of seven years to align its duration with

that of the multiannual financial framework for the years 2021 to 2027 laid down in

                                        Council Regulation (EU, Euratom) 2020/2093 **[1]** (the ‘2021 2027 MFF’).

**1** Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the
multiannual financial framework for the years 2021 to 2027 (OJ L 433 I, 22.12.2020, p. 11).

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(50) This Regulation lays down a financial envelope for the Programme which is to constitute

the prime reference amount within the meaning of point 18 of the Interinstitutional

Agreement of 16 December 2020 between the European Parliament, the Council of the

European Union and the European Commission on budgetary discipline, on cooperation in

budgetary matters and on sound financial management, as well as on new own resources,

including a roadmap towards the introduction of new own resources **[1]**, for the

European Parliament and the Council during the annual budgetary procedure.

(51) The Financial Regulation applies to this Programme. The Financial Regulation lays down

rules on the implementation of the Union budget, including the rules on grants, including

those to third parties, prizes, procurement, indirect management, financial instruments,

budgetary guarantees, financial assistance and the reimbursement of external experts.

(52) The forms of funding and the methods of implementation under this Regulation should be

chosen on the basis of their ability to achieve the specific objectives of the actions and to

deliver results, taking into account, in particular, the costs of controls, the administrative

burden, and the need for administrative simplification, in particular in the application

process, for the benefit of all parties involved, and the expected risk of non-compliance.

When making that choice, the use of lump sums, unit costs and flat rates, as well as

financing not linked to costs as referred to in Article 125(1) of the Financial Regulation,

should be considered.

**1** OJ L 433 I, 22.12.2020, p. 28.

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(53) In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of

the European Parliament and of the Council **[1]** and Council Regulations (EC, Euratom)

No 2988/95 **[2]**, (Euratom, EC) No 2185/96 **[3]** and (EU) 2017/1939 **[4]**, the financial interests of

the Union are to be protected by means of proportionate measures, including measures

relating to the prevention, detection, correction and investigation of irregularities,

including fraud, to the recovery of funds lost, wrongly paid or incorrectly used, and, where

appropriate, to the imposition of administrative penalties. In particular, in accordance with

Regulations (Euratom, EC) No 2185/96 and (EU, Euratom) No 883/2013, OLAF has the

power to carry out administrative investigations, including on-the-spot checks and

inspections, with a view to establishing whether there has been fraud, corruption or any

other illegal activity affecting the financial interests of the Union. The European Public

Prosecutor’s Office (EPPO) is empowered, in accordance with Regulation

(EU) 2017/1939, to investigate and prosecute criminal offences affecting the financial

interests of the Union as provided for in Directive (EU) 2017/1371 of the

European Parliament and of the Council **[5]** . In accordance with the Financial Regulation, any

person or entity receiving Union funds is to fully cooperate in the protection of the

financial interests of the Union, grant the necessary rights and access to the Commission,

OLAF, the Court of Auditors and, in respect of those Member States participating in

enhanced cooperation pursuant to Regulation (EU) 2017/1939, the EPPO, and ensure that

any third parties involved in the implementation of Union funds grant equivalent rights.

**1** Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of
11 September 2013 concerning investigations conducted by the European Anti-Fraud Office
(OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of
the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).
**2** Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of
the European Communities financial interests (OJ L 312, 23.12.1995, p.1).
**3** Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-thespot checks and inspections carried out by the Commission in order to protect the European
Communities' financial interests against fraud and other irregularities (OJ L 292,
15.11.1996, p. 2).
**4** Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced
cooperation on the establishment of the European Public Prosecutor's Office (‘the EPPO’)
(OJ L 283, 31.10.2017, p. 1).
**5** Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on
the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198,
28.7.2017, p. 29).

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(54) It should be possible to award quality proposals for actions that are eligible under the

Programme but cannot be financed under it due to budgetary constraints with a Seal of

Excellence label, based on a specific set of criteria. The Seal of Excellence label recognises

the quality of the proposal and simplifies the search for alternative funding under the

European Regional Development Fund or the European Social Fund Plus. For actions in

respect of which a Seal of Excellence label could be awarded, additional information

should be provided in the relevant calls for proposals.

(55) In view of Article 349 TFEU and taking into account the communication of the

Commission of 24 October 2017 entitled ‘A stronger and renewed strategic partnership

with the EU's outermost regions’, the specific contribution of the regions referred to in that

Article to the cultural diversity of the Union, as well as their role in promoting exchanges

of, including through mobility, and cooperation with people and organisations from third

countries, in particular from their neighbouring countries, should be valued. Pursuant to

Council Decision 2013/755/EU **[1]** and taking into account the contribution of overseas

countries and territories to the international cultural influence of the Union, persons and

entities established in overseas countries and territories are eligible for funding subject to

the rules and objectives of the Programme and possible arrangements applicable to the

Member State to which the relevant overseas country or territory is linked. It should thus

be possible for people to benefit equally from the competitive advantages that the cultural

and creative industries can offer, in particular economic growth and employment.

**1** Council Decision 2013/755/EU of 25 November 2013 on the association of the overseas
countries and territories with the European Union (Overseas Association Decision)
(OJ L 344, 19.12.2013, p. 1).

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(56) In order to ensure the effective assessment of the Programme’s progress towards the

achievement of its objectives, the power to adopt acts in accordance with Article 290

TFEU should be delegated to the Commission in respect of developing a monitoring and

evaluation framework and of reviewing the Programme indicators. It is of particular

importance that the Commission carry out appropriate consultations during its preparatory

work, including at expert level, and that those consultations be conducted in accordance

with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on

Better Law-Making **[1]** . In particular, to ensure equal participation in the preparation of

delegated acts, the European Parliament and the Council receive all documents at the same

time as Member States’ experts, and their experts systematically have access to meetings

of Commission expert groups dealing with the preparation of delegated acts.

**1** OJ L 123, 12.5.2016, p. 1.

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(57) In accordance with Article 193(2) of the Financial Regulation, it is possible to award a

grant for an action which has already begun, provided that the applicant can demonstrate

the need for starting the action prior to signature of the grant agreement. However, the

costs incurred prior to the date of submission of the grant application are not eligible for

Union financing, except in duly justified exceptional cases. In accordance with

Article 193(4) of the Financial Regulation, the costs incurred prior to the date of

submission of the grant application are also not eligible for Union financing in the case of

operating grants and the grant agreement is to be signed within four months of the start of

the beneficiary’s financial year. In order to avoid any disruption in Union support which

could be prejudicial to Union’s interests, it should be possible to provide in the financing

decision, for a limited period of time at the beginning of the 2021-2027 MFF, and only in

duly justified cases, for the eligibility of activities and costs from 1 January 2021, even if

those activities were implemented and those costs incurred before the grant application was

submitted.

(58) Pursuant to paragraphs 22 and 23 of the Interinstitutional Agreement of 13 April 2016 on

Better Law-Making, the Programme should be evaluated on the basis of information

collected in accordance with specific monitoring requirements, while avoiding an

administrative burden, in particular on Member States, and overregulation. Those

requirements, where appropriate, should include measurable indicators as a basis for

evaluating the effects of the Programme on the ground.

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(59) In order to ensure uniform conditions for the implementation of this Regulation,

implementing powers should be conferred on the Commission to adopt the work

programmes. Those implementing powers should be exercised in accordance with

Regulation (EU) No 182/2011 of the European Parliament and of the Council **[1]** . In

particular, as provided for by this Regulation, time limits should be proportionate and

should afford committee members early and effective opportunities to examine the draft

implementing act and express their views.

(60) It is necessary to ensure that the 2014-2020 Creative Europe Programme established by

Regulation (EU) No 1295/2013 of the European Parliament and of the Council **[2]** (the

‘2014-2020 Programme’) is closed correctly, in particular as regards the continuation of

multiannual arrangements for its management, such as the financing of technical and

administrative assistance. As from 1 January 2021, the technical and administrative

assistance should ensure, where necessary, the management of actions that have not yet

been finalised under the 2014-2020 Programme by 31 December 2020.

(61) This Regulation respects the fundamental rights and observes the principles recognised in

particular by the Charter. In particular, this Regulation seeks to ensure full respect for the

right to equality between men and women and the right to non-discrimination based on

sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation, as

enshrined in Articles 21 and 23 of the Charter. This Regulation is also in line with the

United Nations Convention on the Rights of Persons with Disabilities.

**1** Regulation (EU) No 182/2011 of the European Parliament and of the Council of
16 February 2011 laying down the rules and general principles concerning mechanisms for
control by the Member States of the Commission’s exercise of implementing powers
(OJ L 55, 28.2.2011, p. 13).
**2** Regulation (EU) No 1295/2013 of the European Parliament and of the Council of
11 December 2013 establishing the Creative Europe Programme (2014 to 2020) and
repealing Decisions No 1718/2006/EC, No 1855/2006/EC and No 1041/2009/EC (OJ L 347,
20.12.2013, p. 221).

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(62) Since the objectives of this Regulation cannot be sufficiently achieved by the

Member States but can rather, by reason of their transnational character, the high volume

and wide geographical scope of the mobility and cooperation activities funded, their effects

on access to learning mobility and more generally on Union integration, and their

reinforced international dimension, be better achieved at Union level, the Union may adopt

measures, in accordance with the principle of subsidiarity, as set out in Article 5 TEU. In

accordance with the principle of proportionality, as set out in that Article, this Regulation

does not go beyond what is necessary in order to achieve those objectives.

(63) Regulation (EU) No 1295/2013 should therefore be repealed with effect

from 1 January 2021.

(64) In order to ensure continuity in providing support in the relevant policy area and to allow

the implementation to start from the beginning of the 2021-2027 MFF, this Regulation

should enter into force as a matter of urgency and should apply, with retroactive effect,

from 1 January 2021,

HAVE ADOPTED THIS REGULATION:

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## **Chapter I** **General Provisions**

_Article 1_

_Subject matter_

This Regulation establishes the Creative Europe Programme (the ‘Programme’) for the duration of

the 2021-2027 MFF.

It lays down the objectives of the Programme, the budget for the period from 2021 to 2027, the

forms of Union funding and the rules for providing such funding.

_Article 2_

_Definitions_

For the purposes of this Regulation, the following definitions apply:

(1) ‘cultural and creative sectors’ means all sectors:

(a) whose activities, many of which have potential to generate innovation and jobs in

particular from intellectual property:

(i) are based on cultural values and artistic and other individual or collective

creative expressions; and

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(ii) include the development, the creation, the production, the dissemination and

the preservation of goods and services which embody cultural, artistic or other

creative expressions, as well as related functions such as education or

management;

(b) irrespective of:

(i) whether the activities of those sectors are market-oriented or

non-market-oriented;

(ii) the type of structure that carries out those activities; and

(iii) how that structure is financed;

those sectors include, inter alia, architecture, archives, libraries and museums, artistic

crafts, audiovisual (including film, television, video games and multimedia), tangible and

intangible cultural heritage, design (including fashion design), festivals, music, literature,

performing arts, (including theatre and dance), books and publishing, radio, and visual arts;

(2) ‘legal entity’ means a natural person or a legal person which is created and recognised as

such under national law, Union law or international law, which has legal personality and

which may exercise rights and be subject to obligations when acting in its own name, or an

entity which does not have legal personality as referred to in point (c) of Article 197(2) of

the Financial Regulation;

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(3) ‘blending operation’ means actions supported by the Union budget, including within

blending facilities pursuant to Article 2(6) of the Financial Regulation, that combine

non-repayable forms of support and financial instruments from the Union budget with

repayable forms of support from development or other public finance institutions, or from

commercial finance institutions and investors.

_Article 3_

_Programme objectives_

1. The general objectives of the Programme are to:

(a) safeguard, develop and promote European cultural and linguistic diversity and

heritage;

(b) increase the competitiveness and the economic potential of the cultural and creative

sectors, in particular the audiovisual sector.

2. The Programme has the following specific objectives:

(a) to enhance artistic and cultural cooperation at the European level in order to support

the creation of European works and strengthen the economic, social and external

dimension of and innovation and mobility in Europe’s cultural and creative sectors;

(b) to promote competitiveness, scalability, cooperation, innovation and sustainability,

including through mobility, in the European audiovisual sector;

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(c) to promote policy cooperation and innovative actions supporting all strands of the

Programme and to promote a diverse, independent and pluralistic media

environment, and media literacy, thereby fostering freedom of artistic expression,

intercultural dialogue and social inclusion.

3. The Programme shall cover the following strands:

(a) the Culture strand, which covers cultural and creative sectors with the exception of

the audiovisual sector;

(b) the MEDIA strand, which covers the audiovisual sector;

(c) the Cross-sectoral strand, which covers actions across all cultural and creative

sectors.

4. Recognising the intrinsic and economic value of culture, the Programme objectives shall

be pursued through actions with European added value. The European added value shall be

ensured, inter alia, through:

(a) the transnational character of actions and activities, which complement regional,

national, international and other Union programmes and policies, thereby promoting

European common roots and cultural diversity;

(b) cross-border cooperation, including through mobility, among organisations and

professionals in the cultural and creative sectors, and the potential of such

cooperation to address common challenges, including the digital shift, and to

promote access to culture, active engagement of citizens and intercultural dialogue;

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(c) the economies of scale and growth and jobs which Union support fosters, creating a

leverage effect for additional funds;

(d) providing a more level playing field through actions with European added value

under the MEDIA strand that take into account the specificities of different countries,

in particular regarding the production and distribution of content, access to content,

the size and specificities of their markets and their cultural and linguistic diversity, in

a way that broadens the participation of countries with different audiovisual

capacities and strengthens collaboration between those countries.

5. The Programme objectives shall be pursued in a way that encourages inclusion, equality,

diversity and participation, which, where appropriate, shall be achieved through specific

incentives that:

(a) ensure that people with disabilities, people belonging to minorities and people

belonging to socially marginalised groups have access to the cultural and creative

sectors and that encourage their active participation in those sectors, including in

both the creative process and audience development; and

(b) foster gender equality, in particular as a driver of creativity, economic growth and

innovation.

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_Article 4_

_Programme actions_

The Programme shall support actions that are in accordance with the priorities set out in Articles 5,

6 and 7 and the descriptions set out in Annex I.

_Article 5_

_Culture strand_

1. In line with the Programme objectives referred to in Article 3, the Culture strand shall have

the following priorities:

(a) to strengthen transnational cooperation and the cross-border dimension of the

creation, circulation and visibility of European works and the mobility of operators in

the cultural and creative sectors;

(b) to increase access to and participation in culture and to increase audience

engagement and improve audience development across Europe;

(c) to promote societal resilience and to enhance social inclusion and intercultural

dialogue through culture and cultural heritage;

(d) to enhance the capacity of the European cultural and creative sectors, including the

capacity of individuals working in those sectors, to nurture talent, to innovate, to

prosper and to generate jobs and growth;

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(e) to strengthen European identity and values through cultural awareness, arts education

and culture-based creativity in education;

(f) to promote capacity-building within the European cultural and creative sectors,

including grassroots organisations and micro-organisations, so that they are able to

be active at the international level;

(g) to contribute to the Union’s global strategy for international relations through

culture.

2. The actions through which the priorities set out in paragraph 1 of this Article are to be

pursued are set out in Section 1 of Annex I.

_Article 6_

_MEDIA strand_

1. In line with the Programme objectives referred to in Article 3, the MEDIA strand shall

have the following priorities:

(a) to nurture talent, competence and skills and to stimulate cross-border cooperation,

mobility, and innovation in the creation and production of European audiovisual

works, thereby encouraging collaboration across Member States with different

audiovisual capacities;

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(b) to enhance the circulation, promotion, online distribution and theatrical distribution

of European audiovisual works within the Union and internationally in the new

digital environment, including through innovative business models;

(c) to promote European audiovisual works, including heritage works, and to support the

engagement and development of audiences of all ages, in particular young audiences,

across Europe and beyond.

2. The priorities set out in paragraph 1 of this Article shall be addressed through support for

the development, production, promotion, and dissemination of European works and

support for access to those works, with the objective of reaching diverse audiences within

Europe and beyond, thereby adapting to new market developments and accompanying the

implementation of Directive 2010/13/EU.

3. The actions through which the priorities set out in paragraph 1 of this Article are to be

pursued are set out in Section 2 of Annex I.

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_Article 7_

_Cross-sectoral strand_

1. In line with the Programme objectives referred to in Article 3, the Cross-sectoral strand

shall have the following priorities:

(a) to support cross-sectoral transnational policy cooperation, including cooperation on

the promotion of the role of culture in social inclusion and cooperation on artistic

freedom, to promote the visibility of the Programme and to support the transferability

of the results of the Programme;

(b) to encourage innovative approaches to the creation, distribution and promotion of,

and access to, content across cultural and creative sectors and other sectors, including

by taking into account the digital shift, covering both market and non-market

dimensions;

(c) to promote cross-sectoral activities that aim at adjusting to the structural and

technological changes faced by the media, including enhancing a free, diverse, and

pluralistic media environment, quality journalism and media literacy, including in the

digital environment;

(d) to support the establishment of Programme desks in participating countries and the

activities of Programme desks and to stimulate cross-border cooperation and the

exchange of best practices within the cultural and creative sectors.

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2. The actions through which the priorities set out in paragraph 1 of this Article are to be

pursued are set out in Section 3 of Annex I.

_Article 8_

_Budget_

1. The financial envelope for the implementation of the Programme for the period

from 1 January 2021 to 31 December 2027 shall be EUR 1 842 000 000 in current prices.

2. As a result of the programme-specific adjustment provided for in Article 5 of Regulation

(EU, Euratom) 2020/2093, the amount set out in paragraph 1 of this Article shall be

increased by an additional allocation of EUR 600 000 000 in 2018 prices as specified in

Annex II to that Regulation.

3. The indicative distribution of the amount set out in paragraph 1 of this Article shall be:

(a) at least 33 % for the objective referred to in point (a) of Article 3(2) (Culture strand);

(b) at least 58 % for the objective referred to in point (b) of Article 3(2) (MEDIA

strand);

(c) up to 9 % for the objective referred to in point (c) of Article 3(2)(Cross- sectoral

strand).

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4. The indicative distribution of the amount set out in paragraph 2 of this Article shall be:

(a) at least 33 % for the objective referred to in point (a) of Article 3(2) (Culture strand);

(b) at least 58 % for the objective referred to in point (b) of Article 3(2) (MEDIA

strand);

(c) up to 9 % for the objective referred to in point (c) of Article 3(2) (Cross-sectoral

strand).

5. The amounts set out in paragraphs 1 and 2 may be used for technical and administrative

assistance for the implementation of the Programme, such as preparatory, monitoring,

control, audit and evaluation activities, including corporate information technology

systems.

6. In addition to the amounts set out in paragraphs 1 and 2 of this Article, and in order to

promote the international dimension of the Programme, additional financial contributions

may be made available from a Regulation of the European Parliament and of the Council

establishing the Neighbourhood, Development and International Cooperation Instrument

and from a Regulation of the European Parliament and of the Council establishing the

Instrument for Pre-accession Assistance (IPA III) to support actions that are implemented

and managed in accordance with this Regulation. Such contributions shall be financed in

accordance with the Regulations establishing those instruments.

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7. Resources allocated to Member States under shared management may, at the request of the

Member State concerned, be transferred to the Programme subject to the conditions set out

in Article 26 of a Regulation of the European Parliament and of the Council 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 (the ‘Common Provisions Regulation’). The

Commission shall implement those resources directly in accordance with point (a) of the

first subparagraph of Article 62(1) of the Financial Regulation or indirectly in accordance

with point (c) of that subparagraph. Those resources shall be used for the benefit of the

Member State concerned.

8. Budgetary commitments for actions extending over more than one financial year may be

broken down over several years into annual instalments. Those commitments shall not

exceed 40 % of the amount set out in paragraph 1.

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_Article 9_

_Third countries associated to the Programme_

1. The Programme shall be open to the participation of the following third countries, provided

that they contribute financially to the Programme:

(a) Members of the European Free Trade Association which are members of the

European Economic Area, in accordance with the conditions laid down in the

Agreement on the European Economic Area;

(b) acceding countries, candidate countries and potential candidates, in accordance with

the general principles and general terms and conditions for the participation of those

countries in Union programmes established in the respective framework agreements

and Association Council decisions or in similar agreements and in accordance with

the specific conditions laid down in agreements between the Union and those

countries;

(c) European Neighbourhood Policy countries, in accordance with the general principles

and general terms and conditions for the participation of those countries in Union

programmes established in the respective framework agreements and Association

Council decisions or in similar agreements and in accordance with the specific

conditions laid down in agreements between the Union and those countries;

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(d) other third countries, in accordance with the conditions laid down in a specific

agreement covering the participation of the third country to any Union programme,

provided that the agreement:

(i) ensures a fair balance as regards the contributions and benefits of the third

country participating in the Union programmes;

(ii) lays down the conditions of participation in the programmes, including the

calculation of financial contributions to individual programmes, and their

administrative costs;

(iii) does not confer on the third country a decision-making power in respect of the

Union programme;

(iv) guarantees the rights of the Union to ensure sound financial management and

to protect its financial interests.

The contributions referred to in point (d)(ii) of the first subparagraph shall constitute

assigned revenues in accordance with Article 21(5) of the Financial Regulation.

2. The participation of the countries referred to in paragraph 1 of this Article in the MEDIA

strand and Cross-sectoral strand shall be subject to the fulfilment of the conditions set out

in Directive 2010/13/EU.

3. The agreements concluded with countries as referred to in point (c) of paragraph 1 may

derogate from the obligations set out in paragraph 2 in duly justified cases.

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4. Countries as referred to in points (a) and (b) of paragraph 1 of this Article that fully

participated in the 2014-2020 Programme may fully participate in the Programme on a

provisional basis if they can show that they have taken tangible steps to align their national

law to Directive 2010/13/EU, as amended by Directive (EU) 2018/1808.

5. Countries as referred to in point (b) of paragraph 1 of this Article shall be allowed to

continue to participate in the Programme beyond 31 December 2022 provided that they

provide the Commission with evidence showing that they have fulfilled the conditions set

out in Directive 2010/13/EU.

6. Access to the actions corresponding to the priority referred to in point (d) of Article 7(1)

shall be ensured for countries that exceptionally participate in the Culture strand but do not

fulfil the conditions for participating in the MEDIA strand and Cross-sectoral strand under

paragraph 2 of this Article.

_Article 10_

_Other third countries_

Where it is in the Union’s interest, the Programme may support cooperation with third countries

other than those referred to in Article 9 with regard to actions financed through additional financial

contributions from the external financing instruments in accordance with Article 8(3).

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_Article 11_

_Cooperation with international organisations_

_and the European Audiovisual Observatory_

1. Access to the Programme shall be open to international organisations that are active in the

areas covered by the Programme, in accordance with the Financial Regulation.

2. The Union shall be a member of the Observatory for the duration of the Programme. The

Union’s participation in the Observatory shall contribute to the achievement of the

priorities of the MEDIA strand. The Commission shall represent the Union in its dealings

with the Observatory. The MEDIA strand shall support the payment of the contribution fee

for Union membership of the Observatory and data collection and analysis in the

audiovisual sector.

_Article 12_

_Data gathering on cultural and creative sectors_

To strengthen the evidence base for the development of the cultural and creative sectors and to

measure and analyse their contribution to Europe’s economy and society, the Commission shall

gather appropriate data and information, making use of its own expertise and that of the Council of

Europe, the OECD, Unesco and relevant research institutions, as appropriate. The Commission shall

report regularly to the European Parliament and to the Council on the data gathered. The

Commission shall share relevant findings on the data gathered with stakeholders.

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_Article 13_

_Forms of Union funding and methods of implementation_

1. The Programme shall be implemented under direct management in accordance with the

Financial Regulation or under indirect management with bodies as referred to in point (c)

of Article 62 (1) of that Regulation.

2. The Programme may provide funding in any of the forms laid down in the Financial

Regulation, in particular grants, prizes and procurement. The Programme may also provide

financing in the form of financial instruments within blending operations.

3. Blending operations under the Programme shall be implemented in accordance with

Regulation (EU) 2021/… of the European Parliament and of the Council **[1]** [] and Title X of

the Financial Regulation.

4. Contributions to a mutual insurance mechanism may cover the risk associated with the

recovery of funds due by recipients and shall be considered a sufficient guarantee under the

Financial Regulation. The provisions laid down in Article 37 of Regulation (EU) 2021/…

of the European Parliament and of the Council **[2]** [] shall apply.

**1** Regulation (EU) 2021/… of the European Parliament and of the Council of … (OJ L …).
 OJ: please insert in the text the number of the Regulation contained in file PE-CONS 74/20
(2020/0108 (COD)), and insert the number, date, authors, name and OJ reference of that
Regulation in the footnote.
**2** Regulation (EU) 2021/…of the European Parliament and of the Council of…establishing
Horizon Europe- the Framework Programme for Research and Innovation, laying down its
rules for participation and dissemination (OJ L ..., ..., p. ..).
 OJ: Please insert the number of the Regulation contained in file PE-CONS ST 7064/20
(2018/0224 (COD)), and insert the number, date, authors, name and OJ reference of that
Regulation in the footnote.

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5. Entities active in cultural and creative sectors that have received over 50 % of their annual

revenue from public sources over the last two years shall be considered as having the

necessary financial, professional and administrative capacity to carry out activities under

the Programme. They shall not be required to present further documentation to

demonstrate that capacity.

_Article 14_

_Protection of the Union’s financial interests_

Where a third country participates in the Programme by means of a decision adopted pursuant to an

international agreement or on the basis of any other legal instrument, that third country shall grant

the necessary rights and access required for the authorising officer responsible, OLAF and the Court

of Auditors to comprehensively exercise their respective competences. In the case of OLAF, such

rights shall include the right to carry out investigations, including on-the-spot checks and

inspections, as provided for in Regulation (EU, Euratom) No 883/2013.

_Article 15_

_Work programmes_

1. The Programme shall be implemented through annual work programmes as referred to in

Article 110 of the Financial Regulation. Annual work programmes shall give an indication

of the amount allocated to each action and set out, where applicable, the overall amount

reserved for blending operations. Annual work programmes shall also contain an indicative

timetable for implementation.

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2. The Commission shall adopt annual work programmes by means of implementing acts.

Those implementing acts shall be adopted in accordance with the examination procedure

referred to in Article 24(2).

## **Chapter II** **Grants and eligible entities**

_Article 16_

_Grants_

1. Grants under the Programme shall be awarded and managed in accordance with Title VIII

of the Financial Regulation.

2. In order to ensure that applications are properly evaluated, members of evaluation

committees may be external experts. External experts shall have a professional background

related to the field assessed and, where relevant, knowledge of the geographical area

concerned by the application.

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3. In accordance with point (a) of the second subparagraph of Article 193(2) of the Financial

Regulation, and by way of derogation from Article 193(4) of that Regulation, in duly

justified cases specified in the financing decision, activities supported under this

Regulation and the underlying costs incurred in 2021 may be considered eligible as

of 1 January 2021 even if those activities were implemented and those costs were incurred

before the grant application was submitted. The grant agreements for the operating grants

of the 2021 financial year may exceptionally be signed within six months of the start of the

beneficiary’s financial year.

4. Where applicable, the Programme actions shall set out appropriate criteria to achieve

gender equality.

_Article 17_

_Eligible entities_

1. The eligibility criteria set out in this Article shall apply in addition to the criteria set out in

Article 197 of the Financial Regulation.

2. The following entities are eligible to participate in the Programme if they are active in

cultural and creative sectors:

(a) legal entities established in:

(i) a Member State or an overseas country or territory linked to that

Member State;

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(ii) a third country associated to the Programme; or

(iii) a third country listed in the work programme, subject to the conditions set out

in paragraphs 3 and 4;

(b) legal entities created under Union law;

(c) international organisations.

3. Legal entities active in the cultural and creative sectors established in a third country which

is not associated to the Programme shall exceptionally be eligible to participate in the

Programme where such participation is necessary for the achievement of the objectives of

a given action.

4. Legal entities active in the cultural and creative sectors established in a third country which

is not associated to the Programme shall in principle bear the cost of their participation.

Where it is in the Union’s interest, additional contributions from the external financing

instruments in accordance with Article 8(3) may cover the costs of the participation of such

legal entities.

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## **Chapter III** **Synergies and complementarity**

_Article 18_

_Complementarity_

The Commission, in cooperation with the Member States, shall ensure the overall consistency and

complementarity of the Programme with the relevant Union policies and programmes, in particular

those relating to gender balance, education, in particular digital education and media literacy, youth

and solidarity, employment and social inclusion, in particular for socially marginalised groups and

minorities, research, technology and innovation, including social innovation, industry and

enterprise, agriculture and rural development, environment and climate action, cohesion, regional

and urban policy, sustainable tourism, State aid, mobility and international cooperation and

development.

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_Article 19_

_Cumulative and alternative funding_

1. An action that has received a contribution under the Programme may also receive a

contribution from any other Union programme, including Funds under the Common

Provisions Regulation, provided that the contributions do not cover the same costs. The

rules of the relevant Union programme shall apply to the corresponding contribution to the

action. The cumulative financing shall not exceed the total eligible costs of the action, and

the support from the different Union programmes may be calculated on a pro-rata basis.

2. A project may be awarded a Seal of Excellence label as defined in point 45 of Article 2 of

the Common Provisions Regulation under the Programme where it complies with the

following cumulative conditions:

(a) it has been assessed in a call for proposals under the Programme;

(b) it complies with the minimum quality requirements of that call for proposals; and

(c) it cannot be financed under that call for proposals due to budgetary constraints.

A project that has been awarded a Seal of Excellence label in accordance with the first

subparagraph of this paragraph may receive support from the European Regional

Development Fund or the European Social Fund Plus in accordance with Article 73 (4) of

the Common Provisions Regulation.

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## **Chapter IV** **Monitoring, Evaluation and Control**

_Article 20_

_Monitoring and reporting_

1. Qualitative and quantitative indicators to report on the progress of the Programme towards

the achievement of the objectives laid down in Article 3 are set out in Annex II.

2. To ensure the effective assessment of the Programme’s progress towards the achievement

of its objectives, the Commission is empowered to adopt delegated acts, in accordance

with Article 22, to develop the provisions for a monitoring and evaluation framework,

including amendments to Annex II in order to review or supplement the indicators where

necessary for monitoring and evaluation.

3. The performance reporting system shall ensure that data for monitoring the implementation

and the results of the Programme are collected efficiently, effectively, and in a timely

manner.

4. To that end, proportionate reporting requirements shall be imposed on recipients of Union

funds and, where appropriate, on Member States.

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_Article 21_

_Evaluation_

1. The Commission shall carry out evaluations based on the regular collection of data and

consultation of stakeholders and beneficiaries, in a timely manner to feed into the

decision-making process.

2. Once sufficient information about the implementation of the Programme is available but,

in any event, no later than 31 December 2024, the Commission shall carry out an interim

evaluation of the Programme, which shall be based, inter alia, on external and independent

analyses. The Commission shall submit a report on the interim evaluation to the

European Parliament and to the Council no later than six months after the interim

evaluation has been carried out.

3. After 31 December 2027 but, in any event, no later than 31 December 2029, the

Commission shall carry out a final evaluation of the Programme, which shall be based on

external and independent expertise. The Commission shall submit a report on the final

evaluation to the European Parliament and to the Council no later than six months after the

final evaluation has been carried out.

4. The Commission shall communicate the conclusions of the evaluations referred to in

paragraphs 2 and 3, together with its observations on those evaluations, to the

European Parliament, to the Council, to the European Economic and Social Committee and

to the Committee of the Regions.

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5. The evaluation reporting system shall ensure that data for Programme evaluation are

collected efficiently, effectively, in a timely manner and at the appropriate level of detail.

The recipients of Union funds shall communicate such data and information to the

Commission in a way that complies with other legal provisions. For example, personal data

shall be made anonymous where necessary. To that end, proportionate reporting

requirements shall be imposed on recipients of Union funds.

_Article 22_

_Exercise of the delegation_

1. The power to adopt delegated acts is conferred on the Commission subject to the

conditions laid down in this Article.

2. The power to adopt delegated acts referred to in Article 20 is conferred on the Commission

for a period of seven years from 1 January 2021.

3. The delegation of power referred to in Article 20 may be revoked at any time by the

European Parliament or by the Council. A decision to revoke shall put an end to the

delegation of power specified in that decision. It shall take effect the day following the

publication of the decision in the _Official Journal of the European Union_ or at a later date

specified therein. It shall not affect the validity of any delegated acts already in force.

4. Before adopting a delegated act, the Commission shall consult experts designated by each

Member State in accordance with the principles laid down in the Interinstitutional

Agreement of 13 April 2016 on Better Law-Making.

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5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the

European Parliament and to the Council.

6. A delegated act adopted pursuant to Article 20 shall enter into force only if no objection

has been expressed either by the European Parliament or by the Council within a period of

two months of notification of that act to the European Parliament and the Council, or if,

before the expiry of that period, the European Parliament and the Council have both

informed the Commission that they will not object. That period shall be extended by two

months at the initiative of the European Parliament or of the Council.

## **Chapter V** **Transitional and Final Provisions**

_Article 23_

_Information, communication and publicity_

1. The recipients of Union funds shall acknowledge the origin of those funds and ensure the

visibility of the Union funding, in particular when promoting the actions and their results,

by providing coherent, effective and proportionate targeted information to multiple

audiences, including the media and the public, in particular the name of the Programme

and, for actions funded under the MEDIA strand, the MEDIA logo, as set out in Annex III.

2. The Commission shall implement information and communication actions relating to the

Programme, to actions taken pursuant to the Programme and to the results obtained.

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3. Financial resources allocated to the Programme shall also contribute to the corporate

communication of the political priorities of the Union, insofar as those priorities are related

to the objectives referred to in Article 3.

_Article 24_

_Committee procedure_

1. The Commission shall be assisted by a committee (the ‘Creative Europe Committee’). That

committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall

apply.

3. The Creative Europe Committee may meet in specific configurations to deal with concrete

issues relating to the individual strands of the Programme.

_Article 25_

_Repeal_

Regulation (EU) No 1295/2013 is repealed with effect from 1 January 2021.

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_Article 26_

_Transitional provisions_

1. This Regulation shall not affect the continuation of or modification of actions initiated

pursuant to Regulation (EU) No 1295/2013, which shall continue to apply to those actions

until their closure.

2. The financial envelope for the Programme may also cover the technical and administrative

assistance expenses necessary to ensure the transition between the Programme and the

measures adopted pursuant to Regulation (EU) No 1295/2013.

3. If necessary, appropriations may be entered in the Union budget beyond 2027 to cover the

expenses for the assistance referred to in Article 8(5), to enable the management of actions

not completed by 31 December 2027.

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_Article 27_

_Entry into force_

This Regulation shall enter into force on the day of its publication in the _Official Journal of the_

_European Union_ .

It shall apply from 1 January 2021.

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

Done at …, …

_For the European Parliament_ _For the Council_

_The President_ _The President_

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**ANNEX I**

DESCRIPTION OF THE PROGRAMME ACTIONS

### **S ECTION 1** **C ULTURE STRAND**

The priorities of the Culture strand referred to in Article 5 shall be pursued, including with the aim

of strengthening the circulation of European works in a digital and multilingual environment, and

where appropriate, by means of translation, regardless of the type of medium used, through the

following actions, the details of which, including possible higher co-financing rates for small-scale

projects, shall be defined in the work programmes:

Horizontal actions:

Horizontal actions aim to support all the cultural and creative sectors, with the exception of the

audiovisual sector, in addressing common challenges they face at European level. In particular,

horizontal actions shall co-finance transnational projects for collaboration, networking, mobility and

internationalisation, including through residency programmes, touring, events, exhibitions and

festivals. The following horizontal actions shall be supported under the Programme:

(a) transnational cooperation projects that bring together organisations in the cultural and

creative sectors of all sizes, including micro-organisations and small-sized organisations,

and from different countries to undertake sectoral or cross-sectoral activities;

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(b) European networks of organisations in the cultural and creative sectors from different

countries;

(c) cultural and creative pan-European platforms;

(d) transnational mobility of artists and operators in the cultural and creative sectors and the

transnational circulation of artistic and cultural works;

(e) support, including in terms of capacity building, to organisations in the cultural and

creative sectors in order to help them operate at the international level;

(f) policy development, cooperation and implementation in the field of culture, including

through the provision of data and the exchange of best practices, pilot projects and

incentives to promote gender equality.

Sectoral actions:

To respond to shared needs within the Union, the following sectoral actions shall be supported in

those cultural and creative sectors, notably the music sector, whose specificities or specific

challenges require a more targeted approach that complements the horizontal actions:

(a) support to the music sector: actions that promote diversity, creativity and innovation in the

field of music, including live performance, in particular, the distribution and promotion of

all musical repertoires in Europe and beyond, training actions, participation in and access

to music, and audience development for all European repertoires, and support for data

gathering and analysis; those actions shall build on and continue to support the experiences

and expertise gained within the ‘Music moves Europe’ initiative;

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(b) support to the book and publishing sector: targeted actions that promote diversity,

creativity and innovation, the promotion of European literature across borders in Europe

and beyond, including in libraries, training and exchanges for sector professionals, authors

and translators and transnational projects for collaboration, innovation and development in

that sector; targeted actions that promote the translation of literature and, where possible,

the adaptation of literature into accessible formats for people with disabilities;

(c) support to architecture and cultural heritage for a quality built environment: targeted

actions for the mobility, capacity-building and internationalisation of architecture and

cultural heritage operators; the promotion of Baukultur, peer learning and audience

engagement in order to disseminate high-quality principles in contemporary architecture

and cultural heritage interventions; support to the sustainable safeguarding, the

regeneration and the adaptive reuse of cultural heritage and the promotion of its values

through awareness-raising and networking activities;

(d) support to other sectors of artistic creation where specific needs are identified, including

targeted actions for the development of the creative aspects of sustainable cultural tourism

and of the design and fashion sectors and for the promotion and representation of those

other sectors of artistic creation outside the Union.

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Special actions that aim to render European cultural diversity and heritage visible and tangible and

to nurture intercultural dialogue:

(a) financial support to the European Capitals of Culture;

(b) financial support to the European Heritage Labeland networking activities between the

sites awarded the European Heritage Label;

(c) Union cultural prizes;

(d) European Heritage Days;

(e) support to European cultural entities such as orchestras that aim to train and promote

young, high potential artists and have an inclusive approach with a large geographical

coverage, or entities that deliver direct cultural services to European citizens with a large

geographical coverage.

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### **S ECTION 2** **MEDIA STRAND**

The priorities of the MEDIA strand referred to in Article 6 shall take into account the requirements

of Directive (EU) 2018/1808 and the differences across countries regarding the production and

distribution of, and access to, audiovisual content and the size and specificities of their respective

markets and linguistic diversity, and shall be pursued through the following actions, the details of

which shall be defined in the work programmes:

(a) development of audiovisual works by European independent production companies,

covering a variety of formats (such as feature films, short films, series, documentaries,

narrative video games) and genres, and targeting diverse audiences, including children and

young people;

(b) production of innovative and quality TV content and serial storytelling, addressing diverse

audiences, by European independent production companies;

(c) promotion and marketing tools, including online and through the use of data analytics, to

increase the prominence, visibility, cross-border access, and audience reach of European

works;

(d) support to international sales and circulation of non-national European works on all

platforms (e.g. cinema theatres, online) targeting both small and large-sized productions,

including through coordinated distribution strategies covering several countries and

encouraging the use of subtitling, dubbing and, where applicable, audio description tools;

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(e) support to the multilingual access to cultural TV programmes online through subtitling;

(f) support to networking activities for audiovisual professionals, including creators, and

business-to-business exchanges to nurture and promote talent in the European audiovisual

sector, and facilitate the development and distribution of European and international

co-creations and co-productions;

(g) support to activities of European audiovisual operators at industry events and fairs in

Europe and beyond;

(h) support to the visibility and outreach of European films and audiovisual creations aimed at

wide European audiences beyond national borders, especially young people and

multipliers, including through the organisation of screenings, communication,

dissemination and promotion activities in support of European Awards, in particular

‘LUX - the European Audience Film Award by the European Parliament and the European

Film Academy’;

(i) initiatives promoting audience development and engagement, including film education

activities, addressing in particular young audiences;

(j) training and mentoring activities to enhance the capacity of audiovisual professionals to

adapt to new creative processes, market developments and digital technologies that affect

the whole value chain;

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(k) a network or networks of European Video on Demand operators, screening a significant

proportion of non-national European works;

(l) European festivals and festivals' network(s) screening a significant proportion of

non-national European works, while preserving their identity and unique profile;

(m) A European cinema operators' network, with a broad geographic coverage, screening a

significant proportion of non-national European films, fostering the role of European

cinemas in the circulation of European works;

(n) specific measures to contribute to a more balanced gender participation in the audiovisual

sector, including studies, mentoring, training and networking activities;

–
(o) support to policy dialogue, innovative policy actions and exchange of best practices

including through analytical activities and the provision of reliable data;

(p) transnational exchange of experiences and know-how, peer learning activities and

networking among the audiovisual sector and policy makers.

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### **S ECTION 3** **C ROSS - SECTORAL STRAND**

The priorities of the Cross-sectoral strand referred to in Article 7 shall be pursued through the

following actions, the details of which shall be defined in the work programmes:

Policy cooperation and outreach actions that:

(a) support policy development, the transnational exchange of experiences and know-how,

peer learning and awareness raising activities, networking, and regular cross-sectoral

dialogue among organisations in the cultural and creative sectors and policy makers;

(b) support analytical cross-sectoral activities;

(c) aim to foster cross-border policy cooperation and policy development with regard to the

role of social inclusion through culture;

(d) enhance knowledge of the Programme and the topics it covers, foster citizen outreach and

assist with the transferability of results beyond Member State level.

The ‘creative innovation lab’ actions, which shall:

(a) encourage new forms of creation at the crossroads between different cultural and creative

sectors, for example through experimental approaches and the use of innovative

technologies;

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(b) foster innovative cross-sectoral approaches and tools which shall, where possible,

encompass multilingual and social dimensions to facilitate the distribution, promotion and

monetisation of, and access to, culture and creativity, including cultural heritage.

The ‘Programme desks’ actions, which shall:

(a) promote the Programme at national level, provide relevant information on the various

types of financial support available under Union policy, and assist operators in the cultural

and creative sectors to apply for support under the Programme, including by informing

them of the requirements and procedures related to the various calls for proposals and by

sharing good practices;

(b) support potential beneficiaries in application processes and provide peer mentoring for

newcomers to the Programme, stimulate cross-border cooperation and the exchange of best

practices between professionals, institutions, platforms and networks within and across the

policy areas covered by the Programme and cultural and creative sectors;

(c) support the Commission in ensuring proper communication and dissemination of the

results of the Programme to citizens and operators in the cultural and creative sectors.

Cross-cutting actions that support the news media sector, which shall:

(a) address the structural and technological changes faced by the media sector by promoting

an independent and pluralistic media environment, including by supporting independent

monitoring for assessing risks and challenges to media pluralism and freedom, and by

supporting awareness-raising activities;

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(b) support high-quality media production standards by fostering cooperation, digital skills,

cross-border collaborative journalism, and quality content, thereby contributing to

professional ethics in journalism;

(c) promote media literacy in order to enable citizens to use, and develop a critical

understanding of, the media and support knowledge sharing and exchanges on media

literacy policies and practices;

(d) include specific measures to contribute to a more balanced gender participation in the news

media sector.

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**ANNEX II**

COMMON QUALITATIVE AND QUANTITATIVE IMPACT

PROGRAMME INDICATORS

The number and scale of transnational partnerships created with the support of the Programme,

including the country of origin of the beneficiary organisations.

Qualitative evidence of success stories in the artistic, business and technological innovation fields

due to Programme support.

Indicators

Culture strand:

The number and scale of transnational partnerships created with the support of the Programme.

The number of artists and operators in the cultural and creative sectors that have moved beyond

national borders due to Programme support, indicating country of origin and the proportion of

women.

The number of people who have accessed European cultural and creative works supported by the

Programme, including works from countries other than their own.

The number of projects supported by the Programme addressed to socially marginalised groups.

The number of projects supported by the Programme involving organisations from third countries.

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MEDIA strand:

The number of people who have accessed European audiovisual works supported by the

Programme from countries other than their own.

The number of participants in learning activities supported by the Programme who have assessed

that they have improved their competences and increased their employability, indicating the

proportion of women.

The number, budget and geographical origins of co-productions developed, created and distributed

with the support of the Programme and co-productions with partners from countries with different

audiovisual capacities.

The number of audiovisual works in lesser-used languages developed, produced and distributed

with the support of the Programme.

The number of people reached by Business to Business promotional activities in major markets.

Cross-sectoral strand:

The number and scale of transnational partnerships formed (composite indicator for the ‘creative

innovation lab’ action and cross-cutting actions that support the news media sector).

The number of events or activities promoting the Programme organised by the Programme desks.

The number of participants in the ‘creative innovation lab’ action and cross-cutting actions that

support the news media sector, indicating the proportion of women.

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**ANNEX III**

MEDIA strand logo

The MEDIA strand logo shall be as follows:

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