CELEX: 52011PC0609
Language: en
Date: 2011-10-06
Title: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on a European Union Programme for Social Change and Innovation

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		52011PC0609
		
			Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on a European Union Programme for Social Change and Innovation /* COM/2011/0609 final - 2011/0270 (COD) */
			
				
		
		
			
			   	{SEC(2011)1130
final}
{SEC(2011)1131
final}
EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
·                        
General context
Europe's societies are confronted with
multiple challenges stemming from increased global competition, the fast pace
of technological progress, demographic trends, and climate change. The recent
economic and financial crisis, which hit all Member States and regions in the
Union, has compounded the situation. In the area of employment
and social policy, the Union continues to face complex problems, such as:
–                        
high unemployment rates, especially among the
low-skilled, the young, older workers, migrants and people with disabilities;
–                        
an increasingly fragmented labour market, in
which more flexible work patterns and other challenges are emerging and which have
an impact on job security and working conditions;
–                        
a shrinking workforce and increasing pressure on
social protection systems as a result of demographic change;
–                        
difficulty in combining work and caring responsibilities
and achieving a sustainable work-life balance, hampering personal and family
development; 
–                        
an unacceptably high number of people living
below the poverty line and in social exclusion.
The crisis also highlighted the close links and spill-over
between EU-27 economies, especially in the euro area, whereby reforms or the
lack of them - in one country - affect the performance of the others. This
means that coordinated action at
the Union level is more effective in addressing these challenges than
individual actions of single Member States. To be cost-effective, reforms also
need to be as far as possible based on evidence. The involvement of policy-makers
and other stakeholders in a collective learning process and in developing and
testing new approaches is likely to lead to greater acceptance and ownership
of, and commitment to the Europe 2020 strategy. In this context, social
innovation, and in particular social experimentation, can be a powerful tool for
shaping the reforms and policy adjustments needed to implement Europe 2020.
However, the development and dissemination of a social
innovation approach on a larger scale in the Union is hampered by a number of
factors, including:
–                        
insufficient knowledge of the needs and
capabilities of civil society organisations, social enterprises and social entrepreneurs
and public sector organisations;
–                        
fragmentation of efforts and resources, lack of
transparency and visibility, limited financial support and insufficient
technical skills of the kind that can help organisations to develop and deliver
social innovations;
–                        
low levels of involvements of citizens and
business;
–                        
poor diffusion, and little scale-up of good
practices;
–                        
poor methods of impact evaluation of actions and
policies.
While tackling socio-economic problems is primarily the
responsibility of the Member States and regions and decisions have to be taken
closest to the citizen, the Union has a role to play in putting the need for
specific reforms on the agenda, identifying barriers to change and ways of overcoming
them, ensuring that existing Union level rules are complied with, stimulating
sharing of good practice and mutual learning, and supporting social innovation
and Europe-wide approaches.
·                        
Grounds for the proposal
The European Union Programme for Social
Change and Innovation is based on three existing instruments:
–                        
the Progress Programme established by Decision
No 1672/2006/EC;
–                        
EURES;
–                        
the European Progress Microfinance Facility for
employment and social inclusion established by Decision No 283/2010/EU.
The Progress Programme
Within the
limits of its competence, the Union employment and social policy, seeks mainly
to ensure collective action and effective policy co-ordination between the Member
States. The framework is provided by the Treaty (TEU) which sets out two
principal types of action, namely co-ordination (adoption of measures designed
to encourage co-operation between the Member States) and legislation (adoption,
by means of Directives, of minimum requirements).
Previous
experience in fostering co-operation between Member States in the employment
and social affairs field points to a number of factors which influence the
success of co-ordinated policy responses, including consistent
conceptualisation of key-factors and their interdependency (e.g. how to explain
in-work poverty, how to tackle health inequalities), common terminology and
measurement to allow to monitoring and benchmarking, comparable data, and
convergence or synergies between goals, values and interests of a variety of
stakeholders. 
Since its
inception, the Progress Programme has contributed to delivering effective
policy responses. The strengthened policy framework under the new Europe 2020
strategy implies an even stronger need for evidence-based policy-making so that
Union policies and legislation are responsive to the socio-economic challenges.
The successor to the Progress Programme will assist the Commission in
implementing its tasks:
–                        
fact-finding and evidence-gathering about
relevant policy developments;
–                        
monitoring and reporting on progress made by
Member States towards Union common priorities and objectives;
–                        
ensuring effective and uniform application of
Union law; 
–                        
modernising Union law on working conditions in
line with the Smart Regulation principles.
EURES
Free movement
of workers, one of the four freedoms enshrined in the Treaty, contributes to
economic development and social cohesion in the Union. However, there are a
number of barriers to geographical mobility in the Union, ranging from legal
and administrative obstacles, housing costs, portability of pensions, and linguistic
barriers to lack of transparency of job vacancies and support for matching
job-seekers with job offers. EURES aims to improve labour market transparency
by making job vacancies available on the EURES Job Mobility Portal and to
provide support for information, advice and guidance services at national and
cross-border level.
At the same
time, the role of public employment services (PES) has changed as a result of
the recent economic crisis and the need for more tailor-made services. PES
should become life-long learning providers, offering a wide range of services
(such as skills assessment, training, career guidance, matching jobs and
profiles, client counselling),
and catering for the needs of those furthest from the labour market. In
addition, EURES should promote new working methods with private employment
services.
European
Progress Microfinance Facility
Becoming
self-employed is one of the avenues for unemployed people to get into a job.
Job creation through the establishment and consolidation of new businesses
plays a key-role in achieving the Europe 2020 objectives: a significant number of
new jobs in the Union are created by newly established firms and almost 85% of
these jobs are created in micro-firms. However, the Union is far from
exploiting its full potential in this respect. One of the major obstacles to
business creation is lack of access to finance, and especially micro-credit,
which has been exacerbated by the recent economic crisis. Europe's
micro-finance sector has not yet reached maturity. In order to grow, Union
micro-finance institutions would need to build and maintain adequate funding
models. Therefore, there is a clear need to strengthen institutional
capacity-building (especially of non-banking microfinance institutions) in
order to cover start-up costs and funding for lending to high-risk target
groups.
The European
Union Programme for Social Change and Innovation aims to increase coherence of
EU action in the employment and social areas by bringing together and building
on the implementation of the Progress Programme, EURES and the European
Progress Microfinance facility. In addition, the Programme provides for an opportunity
to simplify implementation through common provisions covering, inter alia,
common general objectives, common typology of actions and rationalisation of
reporting and evaluation. At the same time, the Programme provides for a
limited set of specific provisions applying to the three axes (Progress, EURES
and Microfinance and Social Entrepreneurship) in order to take account of legal
requirements (including comitology rules which only applies to the Progress axis,
geographical coverage and specific reporting and evaluation requirements in the
case of the Microfinance and Social Entrepreneurship axis). 
·                        
Objective of the proposal
The Programme will
seek to achieve the following general objectives:     

(a)         
Strengthen ownership of the Union objectives in
the employment, social and working conditions fields among key Union and
national policy-makers, as well as other interested parties in order to bring
about concrete and coordinated actions at both Union and Member State level; 
(b)         
Support the development of adequate, accessible
and efficient social protection systems and labour markets and facilitate
policy reform, by promoting good governance, mutual learning and social innovation;
(c)         
Modernise Union law in line with the Smart
Regulation principles and ensure that Union law on matters relating to working
conditions is effectively applied;
(d)         
Promote workers’ geographical mobility and boost
employment opportunities by developing Union labour markets that are open and
accessible to all;
(e)         
Promote employment and social inclusion by
increasing the availability and accessibility of microfinance for vulnerable
groups and micro-enterprises and by increasing access to finance for social
enterprises.
The ‛gender equality’
and ‛non-discrimination’ sections of the Progress Programme will be incorporated
into new instruments in the area of justice. However, in pursuing its
objectives, the European Union programme for Social Change and Innovation
promotes gender and non-discrimination mainstreaming.
2.           RESULTS OF CONSULTATIONS WITH THE
INTERESTED PARTIES AND IMPACT ASSESSMENTS
·                        
Consultation with the interested parties
As part of the review
of the current Progress programme, the Commission organised a two-step consultation:
1.                      
A working group comprising the programme’s key stakeholders representatives was set up to
provide the Commission with a set of recommendations on the future instrument’s design, objectives, implementation and funding. 
2.                      
A public online consultation on a successor
instrument to the Progress programme was carried out between 4 April and 27 May
2011. 
The EURES Working
Party and Heads of Public Employment Services (PES) held specific discussions
on the future of EURES during 2011.
With regard to microfinance,
the Commission collected the views of the European Microfinance Network (EMN),
which represents the Union microfinance sector, the managing authorities of the
European Social Fund and the European Investment Fund (which implements the Progress
Microfinance Facility on behalf of the Commission) and the European Investment
Bank. In addition, the findings of two workshops organised by the Commission's
services, which covered both micro-finance and support to social
entrepreneurship, were taken into account.
·                        
Impact assessment
A composite impact
assessment of the financial instruments under the responsibility of the
Directorate-General ‛Employment, Social Affairs and Inclusion’, covering the
European Social Fund, the European Globalisation Adjustment Fund, the Progress
Programme, EURES and the Progress Microfinance Facility was carried out[1]. The impact
assessment considered three options:
–                        
option 1: no policy change: under this option, the Progress programme, EURES and the Progress
micro-finance facility, would continue to exist as separate instruments running
alongside the European Social Fund. 
–                        
option 2: a new integrated programme for social
change and innovation: the new programme is made up
of three separate albeit complementary axes: Progress, EURES and microfinance
and social entrepreneurship.
–                        
option 3: a single instrument for employment
and social affairs: such an instrument would have a
shared management strand (the European Social Fund) and a direct management
strand. 
The impact assessment
has concluded that option 2 is the preferred option that would bring about the
most benefits in terms of efficiency gains, critical mass, coherence and
effectiveness, while avoiding political and institutional risks.
3.           LEGAL ELEMENTS OF THE PROPOSAL
·                        
Legal basis
The proposal is based
on Article 46(d), Article 149, Article 153(2)(a) and the third paragraph of Article
175 of the Treaty.
·                        
Subsidiarity and proportionality principles
As the objectives of
the proposed Programme for Social Change and Innovation cannot be sufficiently achieved by the Member States, the Union may adopt
measures in accordance with the principle of subsidiarity as set out in Article
5 of the Treaty on European Union. In accordance with the principle of
proportionality as set out in that Article, this Regulation does not go beyond
what is necessary to achieve those objectives.
4.           BUDGETARY IMPLICATION 
The financial appropriations for
implementing the Programme for the period from 1 January 2014 to 31 December
2020 will amount to EUR 958.19 million (in current prices).
2011/0270 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
on a European Union Programme for Social
Change and Innovation
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 46(d), Article
149, Article 153(2)(a) and the third paragraph of Article 175 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[2],

Having regard to the opinion of the
Committee of the Regions[3],

Acting in accordance with the ordinary
legislative procedure,
Whereas:
(1)              
In line with the Commission Communication ‘A
budget for Europe 2020’[4],
which recommends rationalising and simplifying the Union’s funding instruments
and sharpening their focus both on Union added value and on impacts and
results, this Regulation establishes a European Union Programme for Social
Change and Innovation (hereinafter ‘the Programme’) to provide for the
continuation and development of activities carried out on the basis of Decision
No 1672/2006/EC of the European
Parliament and of the Council of 24 October 2006
establishing a Community Programme for Employment and Social Solidarity –
Progress[5], Regulation 
No 492/2011 of the European Parliament and of the
Council of
5 April 2011 on freedom of
movement for workers within the Union [6] and
Commission Decision 2003/8/EC of 23 December 2002 implementing Regulation No 1612/1968 as regards the clearance of
vacancies and applications for employment[7]
and Decision No 283/2010/EU of the European Parliament and of the Council
of 25 March 2010 establishing a European Progress Microfinance Facility
for employment and social inclusion[8]
(hereinafter ‘the Facility’).
(2)              
On 17 June 2010 the European Council endorsed
the Commission proposal for a Europe 2020 Strategy for jobs and smart,
sustainable and inclusive growth, which provides for five headline targets
(including three dealing respectively with employment, the fight against
poverty and social exclusion, and education) and seven flagship initiatives,
and thus constitutes a coherent policy framework for the coming decade. The
European Council advocated full mobilisation of the appropriate EU instruments
and policies to support achievement of the common objectives and invited the
Member States to step up coordinated action. 
(3)              
In accordance with Article 148(4) of the Treaty
on the Functioning of the European Union, the Council adopted guidelines for
employment policies on 21 October 2010, which, together with the broad
guidelines for the economic policies of the Member States and of the Union
adopted in accordance with Article 121 of the Treaty, comprise the Europe 2020
integrated guidelines. The Programme should contribute to applying the Europe
2020 integrated guidelines, and in particular Guidelines 7, 8 and 10, while
supporting implementation of the flagship initiatives, with special regard to
the European Platform against Poverty and Social Exclusion, an Agenda for New
Skills and Jobs, and Youth on the Move.
(4)              
The European Platform against Poverty and Social
Exclusion and the Innovation Union flagship initiatives identify social
innovation as a powerful tool for addressing the social challenges arising from
population ageing, poverty, unemployment, new work patterns and life styles,
and citizens' expectations regarding social justice, education and health care.
The Programme should support action to step up social innovation in policy
areas falling within its scope in the public, private and third sectors, taking
due account of the role of regional and local authorities. In particular, it
should help identify, evaluate and scale up innovative solutions and practice
through social experimentation to assist the Member States more effectively in
reforming their labour markets and social protection policies. It should also
act as a catalyst for transnational partnerships and networking between public,
private and third-sector actors as well as supporting their involvement in
designing and implementing new approaches to tackling pressing social needs and
challenges.
(5)              
In line with the Europe 2020 Strategy, the
Programme should pursue a coherent approach to promoting employment and
combating social exclusion and poverty. Its implementation should be
rationalised and simplified, notably through a set of common provisions
including, inter allia, general objectives, typology of actions, monitoring
and evaluation arrangements. The Programme should also focus on large projects with
clear EU added value in order to reach critical mass and reduce administrative
burden for both the beneficiaries and the Commission. In addition, greater use
should be made of simplified cost options (lump-sum and flat-rate financing) in
particular for the implementation of mobility
schemes. The Programme should be a one-stop shop for microfinance providers, providing
financing for micro-credit, capacity building and technical assistance. Lastly, the Programme should provide for budgetary flexibility through
the establishment of a reserve to be allocated on an annual basis in order to respond
to policy priorities.
(6)              
The Union should equip itself with a sound
analytical basis to support policy-making in the employment and social area.
Such an evidence base adds value to national action by providing a Union
dimension and comparison for data-gathering and the development of statistical
tools and methods and common indicators with a view to composing a full picture
of the situation in the fields of employment, social policy and working
conditions across the Union and ensuring high-quality evaluation of the
efficiency and effectiveness of programmes and policies.
(7)              
The Union is uniquely placed to provide a Union
platform for policy exchanges and mutual-learning between the Member States in
the employment and social areas. Knowledge of policies applied in other
countries and of their results broadens the range of options available to
policy-makers, triggers new policy developments and encourages national reform.

(8)              
Ensuring that minimum standards are in place and
that working conditions improve constantly in the Union is a central feature of
Union social policy. The Union has an important role to play both in ensuring
that the legislative framework is adapted, in line with ‘Smart Regulation’
principles, to evolving work patterns and new health and safety risks and in financing measures to improve compliance with Union rules on the
protection of workers' rights.
(9)              
Civil society organisations active at various
levels can play an important role in meeting the objectives of the Programme, by
participating in the policy-making process and contributing to social
innovation.
(10)          
The Union is committed to
strengthening the social dimension of globalisation by promoting decent work
and labour standards internationally, either directly vis-à-vis third
countries or indirectly through cooperation with international organisations. Accordingly,
suitable relations need to be developed with third countries not participating
in the Programme in order to help achieve its objectives, having regard to any agreements of relevance between such countries
and the Union. This may involve the attendance of representatives of these
third countries at events of mutual interest (such as conferences, workshops
and seminars) that take place in countries participating in the Programme. In
addition, cooperation should be developed with the international organisations
concerned, and in particular the International Labour Organisation (ILO), the
Council of Europe and the Organisation for Economic Cooperation and Development
(OECD), with a view to implementing the Programme in a way that takes the role
of such organisations into account.
(11)          
In accordance with Articles 45 and 46 of the
Treaty, Regulation (EU) No 492/2011 lays down provisions intended to
achieve freedom of movement for workers by ensuring close cooperation between
the Member States and with the Commission. EURES should promote better
functioning of the labour markets by facilitating transnational geographical
mobility of workers, providing greater transparency on the labour market,
ensuring the clearance of vacancies and applications for employment and
supporting activities in the areas of recruitment, advice and guidance services
at national and cross-border level, thereby contributing to the objectives of
the Europe 2020 Strategy.
(12)          
EURES’ scope should be widened to develop and
support targeted mobility schemes at Union level with a view to filling
vacancies where labour market shortcomings have been identified. In accordance
with Article 47 of the Treaty, the scheme should
facilitate mobility among young workers.
(13)          
The Europe 2020 Strategy, and in particular
Guideline 7, identifies self-employment and entrepreneurship as crucial to
achieving smart, sustainable and inclusive growth[9]. 
(14)          
Lack of access to credit is one of the main
obstacles to business creation, especially among people furthest from the
labour market. Union and national efforts in this area need to be stepped up in
order to increase the supply of microfinance and meet demand from those who
need it most, and in particular unemployed and vulnerable people who wish to
start up or develop a micro-enterprise, including on a self-employed basis, but
do not have access to credit. As a first step, in
2010 the European Parliament and the Council set up the Facility.
(15)          
Making microfinance more available on the
Union’s young microfinance market calls for the institutional capacity of
microfinance providers, and in particular non-bank microfinance institutions,
to be stepped up in line with the Commission Communication 'A European
Initiative for the development of micro-credit'[10].
(16)          
Social enterprises are a cornerstone of Europe’s
pluralist social market economy. They can act as drivers of social change by
offering innovative solutions, and therefore make a valuable contribution to
meeting the objectives of the Europe 2020 Strategy. The programme should
improve social enterprises’ access to finance and thereby contribute to the
Social Business Initiative launched by the Commission[11]. 
(17)          
In order to capitalise on the experience of
international financial institutions, and in particular the European Investment
Bank Group, action involving microfinance and social entrepreneurship should be
implemented by the Commission indirectly by entrusting budget
implementations tasks to financial institutions in accordance with the
financial regulation. Using Union resources concentrates
leverage from international financial institutions and other investors, unifies
approaches and thus improves access to finance for micro-enterprises,
including the self-employed and social enterprises. The Union contribution thus
assists in the development of the emerging social business sector and the
microfinance market in the Union and encourages cross-border activities. 
(18)          
Pursuant to Articles 8 and 10 of the Treaty, the
Programme should support the mainstreaming of gender equality and
anti-discrimination objectives in all its activities. Regular monitoring and
evaluation should be carried out to assess the way in which gender equality and
anti-discrimination issues are addressed in the Programme's activities. 
(19)          
Pursuant to Article 9 of the Treaty, the
Programme should ensure that
the requirements linked to the promotion of a high-level of employment, a guarantee
of adequate social protection and the fight against social exclusion are taken
into account in defining and implementing the Union’s policies and activities.
(20)          
To ensure more efficiency in
communication to the public at large and stronger synergies between the
communication actions undertaken at the initiative of the Commission, the resources
allocated to information and communication activities under this regulation
shall also contribute to corporate communication of the political priorities of
the European Union as far as they are related to the general objectives of this
Regulation.
(21)          
Since the objectives of this Regulation cannot
be sufficiently achieved at Member State level and can therefore, by reason of
their scale and effects, be better achieved at Union level, the Union may adopt
measures in accordance with the principle of subsidiarity as set out in Article
5 of the Treaty on European Union. In accordance with the principle of
proportionality as set out in that Article, this Regulation does not go beyond what
is necessary to achieve those objectives.
(22)          
This Regulation lays down, for the duration of
the Programme, a total financial amount that constitutes the prime reference,
within the meaning of point 17 of the Interinstitutional Agreement of {…}
between the European Parliament, the Council and the Commission on cooperation
in budgetary matters and on sound financial management, for the budgetary
authority during the annual budgetary procedure.
(23)          
The financial interests of the Union should be
protected through proportionate measures throughout the expenditure cycle,
including the prevention, detection and investigation of irregularities, the
recovery of funds lost, wrongly paid or incorrectly used and, where
appropriate, penalties.
(24)          
Implementing powers should be conferred on the
Commission with a view to ensuring there are uniform conditions for implementing
actions under the EURES and the Microfinance and Social Entrepreneurship axes
of the Programme.
(25)          
The implementing powers relating to actions
carried out under the Progress axis of the Programme should be exercised in
accordance with 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 Member States of the Commission’s exercise
of implementing powers[12].

HAVE ADOPTED THIS REGULATION:
Title I
Common provisions
Article 1
Subject matter 
1.                      
This Regulation establishes a European Union
Programme for Social Change and Innovation (hereinafter ‘the Programme’) which
aims to contribute to the implementation of the Europe 2020 Strategy, its
headline targets and Integrated Guidelines by providing financial support for
the European Union’s objectives in terms of promoting a high level of
employment, guaranteeing adequate social protection, combating social exclusion
and poverty and improving working conditions.
2.                      
The Programme shall run from 1 January 2014 to
31 December 2020. 
Article 2
Definitions
For the purposes of this Regulation:
(a)                   
‘Social enterprise’ means an enterprise whose
primary objective is to achieve social impact rather than generate profit for
owners and stakeholders. It operates in the market through the production of goods
and services in an entrepreneurial and innovative way, and uses surpluses
mainly to achieve social goals. It is managed in an accountable and transparent
way, in particular by involving workers, customers and stakeholders affected by
its business activity. 
(b)                   
‘Microcredit’ means a loan of up to
EUR 25 000.
(c)                   
‘Micro-enterprise’ means an enterprise that employs
less than 10 people, including self-employed persons, and whose annual turnover
and/or annual balance sheet total does not exceed EUR 2 million, in
accordance with Commission Recommendation 2003/361/EC of 6 May 2003 concerning
the definition of micro, small and medium-sized enterprises[13].
(d)                   
‘Microfinance’ includes guarantees,
counter-guarantees, microcredit, equity and quasi-equity extended to persons
and micro-enterprises.
Article 3
Structure of the Programme
1.                      
The Programme shall be made up of the following three
complementarity axes:
(a)     The Progress axis, which shall support
the development, implementation, monitoring and evaluation of Union employment
and social policy and legislation on working conditions and shall promote
evidence-based policy-making and innovation, in partnership with the social
partners, civil society organisations and other interested parties; 
(b)     The EURES axis, which shall support
activities carried out by the EURES network, i.e. the specialist services
designated by the EEA Member States and the Swiss Confederation, together with
other interested parties, to develop information exchanges and dissemination and
other forms of cooperation to promote workers’ geographical mobility;
(c)     The Microfinance and Social
Entrepreneurship axis, which shall facilitate access to finance for
entrepreneurs, especially those furthest from the labour market, and social
enterprises.
2.                      
The common provisions laid down in Articles 1 to
14 shall apply to all three axes set out in points (a), (b) and (c) of paragraph
1, to each of which specific provisions shall also apply.
Article 4
General objectives of the Programme
1.                      
The Programme shall seek to achieve the
following general objectives:
(a)         
Strengthen ownership of the Union objectives in
the employment, social and working conditions fields among key Union and
national policy-makers, as well as other interested parties in order to bring
about concrete and coordinated actions at both Union and Member State level; 
(b)         
Support the development of adequate, accessible
and efficient social protection systems and labour markets and facilitate
policy reform, by promoting good governance, mutual learning and social innovation;
(c)         
Modernise Union law in line with the Smart
Regulation principles and ensure that Union law on matters relating to working
conditions is effectively applied;
(d)         
Promote workers’ geographical mobility and boost
employment opportunities by developing Union labour markets that are open and
accessible to all;
(e)         
Promote employment and social inclusion by
increasing the availability and accessibility of microfinance for vulnerable
groups and micro-enterprises, and by increasing access to finance for social
enterprises.
2.                      
In pursuing those objectives, the Programme
shall aim to: 
(a)         
Promote equality between women and men and combat
discrimination based on sex, racial or ethnic origin, religion or belief,
disability, age or sexual orientation;
(b)         
Ensure that the requirements linked to the
promotion of a high-level of employment, a guarantee of adequate social
protection and the fight against social exclusion are taken into account in defining
and implementing of the Union's policies and activities.
Article 5
Budget
1.                      
The financial appropriations for implementing
the Programme over the period from 1 January 2014 to 31 December 2020 shall amount
to EUR 958.19 million[14].
2.                      
The following indicative percentages shall be
allocated to the axes set out in Article 3 (1) as follows: 
(a)         
60% to the Progress axis, of which at least 17%
shall be allocated to promoting social experimentation as a method for testing
and evaluating innovative solutions with a view to scaling them up; 
(b)         
15% to the EURES axis; 
(c)         
20% to the Microfinance and Social
Entrepreneurship axis.
The remaining 5% shall be apportioned among the
axes on an annual basis in line with policy priorities.
3.                      
The Commission may make use of the
appropriations referred to paragraph 1 to finance technical and/or
administrative assistance, in particular relating to auditing, outsourcing of
translation, meetings of experts, and information and communication activities for
the mutual benefit of the Commission and the beneficiaries.
4.                      
Annual appropriations shall be authorised by the
budgetary authority within the ceilings laid down in the multiannual financial
framework. 
Article 6
Types of actions
The following types of actions may be
financed under the Programme:
1.                      
Analytical activities: 
(a)         
Gathering of data and statistics, as well as
development of common methodologies, classifications, indicators and
benchmarks;
(b)         
Surveys, studies, analyses and reports, including
through the funding of networks of experts;
(c)         
Evaluations and impact assessments;
(d)         
Monitoring and assessment of the transposition
and application of Union law;
(e)         
Preparation and implementation of social
experimentation as a method for testing and evaluating innovative solutions
with a view to scaling them up; 
(f)           
Dissemination of the results of these analytical
activities.
2.                      
Mutual learning, awareness and dissemination
activities:
(a)         
Exchanges and dissemination of good practice,
innovative approaches and experience, peer reviews, benchmarking and mutual
learning at European level;
(b)         
Council Presidency events, conferences and
seminars;
(c)         
Training of legal and policy practitioners, and
EURES advisers;
(d)         
Drafting and publication of guides, reports and
educational material;
(e)         
Information and communication activities;
(f)           
Development and maintenance of information
systems in order to exchange and disseminate information on Union policy and
legislation as well as labour market information.
3.                      
Support for main actors in regard to:
(a)         
The operating costs of key Union-level networks whose
activities relate and contribute to the objectives of the Progress axis;
(b)         
Capacity-building of national administrations
and specialist services responsible for promoting geographical mobility
designated by the Member States and microcredit providers,
(c)         
Organisation of working groups of national
officials to monitor the implementation of Union law; 
(d)         
Networking and cooperation among specialist
bodies, national, regional and local authorities, and employment services at European
level;
(e)         
Funding of European-level observatories;
(f)           
Exchange of personnel between national
administrations.
4.                      
Actions to promote mobility of individuals in
the Union, in particular the development of a multilingual digital platform for
the clearance of job vacancies and applications, and targeted mobility schemes
to fill vacancies where labour market shortcomings have been identified and/or
to help specific groups of workers such as young people.
5.                      
Support to microfinance and social enterprises
in particular through the financial instruments provided for under Title VIII of Part one of
Regulation XXX/2012 [New Financial Regulation] on the financial rules
applicable to the annual budget of the Union, and grants.
Article 7
Joint action
Actions eligible under the Programme may be
implemented jointly with other Union instruments, provided that such actions
meet the objectives of both the Programme and the other instruments concerned. 
Article 8
Consistency and complementarity
1.                      
The Commission, in cooperation with the Member
States, shall ensure that activities carried out under the Programme are
consistent with, and complementary to other Union action, in particular under
the European Social Fund (ESF) and in such areas as social dialogue, justice
and fundamental rights, education, vocational training and youth policy,
research and innovation, entrepreneurship, health, enlargement and external
relations, and general economic policy.
2.                      
The activities supported by the Programme shall
comply with Union and national law, including state aid rules.
Article 9
Cooperation with committees
The Commission shall establish any relations
needed with committees dealing with policies, instruments and actions of
relevance to the Programme in order to ensure that they are regularly and appropriately
informed of progress in implementing the Programme. 
Article 10
Dissemination of results and communication
1.                      
The results of the actions implemented under the
Programme shall be suitably communicated and disseminated in order to maximise
their impact, sustainability and Union added value.
2.                      
Communication activities shall also contribute
to corporate communication of the political priorities of the European Union as
far as they are related to the general objectives of this Regulation.
Article 11
Financial provisions 
1.                      
The Commission shall manage the Programme in
accordance with XXXX/2012 [New Financial Regulation] on the financial rules
applicable to the annual budget of the Union ('the Financial Regulation')[15].
2.                      
Lump-sums and scale of
unit costs and flat-rate financing may be used in respect of support awarded to
programme participants, in particular in respect of mobility schemes referred
to in Article 6(4).
Article 12
Protection of the financial interests of the Union
1.                      
The Commission shall take appropriate preventive
measures ensuring that, when actions financed under this
Regulation are implemented, the financial interests of the Union are
protected against fraud, corruption and any other illegal activities, by
effective checks and, if irregularities are detected, by the recovery of
amounts wrongly paid and, where appropriate, by effective, proportional and
deterrent penalties, in accordance
with Article 325 of the Treaty, Council Regulation (EC, Euratom) No 2988/95 of 18
December 1995 on the protection of the European Communities’ financial
interests[16]
and the Financial Regulation.
2.                      
The Commission or its representatives and the
Court of Auditors shall have the power of audit, on the basis of documents and
on-the-spot, over all grant beneficiaries, contractors and subcontractors as
well as third parties who have received Union funds. OLAF shall be authorised
to carry out on-the-spot checks and inspections on economic operators concerned
directly or indirectly by such funding in accordance with the procedures laid
down in Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning
on-the-spot checks and inspections carried out by the Commission in order to
protect the European Communities' financial interests against fraud and other
irregularities[17] with a view to
establishing any fraud, corruption or other illegal activity in connection with
a grant agreement or decision or a contract concerning Union funding.
3.                      
Without prejudice to paragraphs 1 and 2,
decisions, agreements and contracts resulting from the implementation of this Regulation shall expressly entitle the
Commission, including OLAF, and the Court of Auditors to conduct such
audits, on-the-spot checks and inspections. 
Article 13
Monitoring 
With a view to regular monitoring of the
Programme and making any adjustments needed to its policy and funding
priorities, the Commission shall draw up biennial monitoring reports and send
them to the European Parliament and the Council. Such reports shall cover the
Programme's results and the extent to which gender equality and anti-discrimination
considerations, including accessibility issues, have been addressed through its
activities.
Article 14
Evaluation
1.                      
A mid-term evaluation of the Programme shall be carried
out by the end of 2017 to measure progress made in meeting its objectives, to
determine whether its resources have been used efficiently and to assess its Union
added value. 
2.                      
Two years after the expiry of the Programme at
the latest, the Commission shall carry out an ex-post evaluation measuring its impact
and Union added value and shall forward a report on that evaluation to the
European Parliament, the Council, the European Economic and Social Committee
and the Committee of the Regions.
Title II
Specific Provisions
Chapter I
Progress Axis
Article 15
Specific objectives
In addition to the general objectives set
out in Article 4, the specific objectives of the Progress axis shall be to:
(a)                   
Develop and disseminate high-quality comparative
analytical knowledge in order to ensure that Union employment and social policy
and working conditions legislation are based on sound evidence and are relevant
to needs, challenges and conditions in the individual Member States and the other
participating countries;
(b)                   
Facilitate effective and inclusive information-sharing,
mutual learning and dialogue on Union employment and social policy and working
conditions legislation at Union, national and international level in order to
assist the Member States and the other participating countries in developing
their policies and in implementing Union law;
(c)                   
Provide policy-makers with financial support to
test social and labour market policy reforms, build up the main actors’
capacity to design and implement social experimentation, and make the relevant
knowledge and expertise accessible;
(d)                   
Provide Union and national organisations with financial
support to step up their capacity to develop, promote and support the
implementation of Union employment and social policy and working conditions
legislation.
Article 16
Participation
1.                      
Participation in the Progress axis shall be open
to the following countries: 
(a)         
The Member States;
(b)         
The EFTA and EEA member countries, in accordance
with the EEA Agreement;
(c)         
The candidate countries and potential
candidates, in accordance with the general principles and the general terms and
conditions laid down in the framework agreements concluded with them on their
participation in Union programmes.
2.                      
The Progress axis shall be open to all public and/or private bodies, actors and institutions, and in
particular:
(a)         
National, regional and local authorities;
(b)         
Employment services;
(c)         
Specialist bodies provided for under Union law;
(d)         
The social partners;
(e)         
Non-governmental organisations, and in
particular those organised at Union level;
(f)           
Higher education institutions and research
institutes;
(g)         
Experts in evaluation and in impact assessment;
(h)         
National statistical offices;
(i)           
The media.
3.                      
The Commission may cooperate with international
organisations, and in particular the Council of Europe, the OECD, the ILO and
the World Bank. 
4.                      
The Commission may cooperate with third
countries not participating in the Programme. Representatives
of such third countries may attend events of mutual interest (such as
conferences, workshops and seminars) that take place in countries participating
in the Programme and the cost of their attendance may be covered by the
Programme.
Article 17
Implementing powers conferred on the Commission 
1.                      
Measures relating to the following and which are
necessary for the implementation of the Progress axis shall be adopted in
accordance with the examination procedure referred to in Article 18(3):
(a)         
the multiannual work plans laying down
medium-term policy and funding priorities;
(b)         
the annual work plans, including the criteria
for the selection of beneficiaries following calls for proposals.
2.                      
All other measures necessary for the
implementation of the Progress axis shall be adopted in accordance with the
advisory procedure referred to in Article 18(2). 
Article 18
Committee
1.                      
The Commission shall be assisted by a 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 4 of Regulation (EU) No 182/2011 shall apply. 
3.                      
Where reference is made to this paragraph,
Article 5 of Regulation (EU) No 182/2011 shall apply. 
Article 19
Transitional measures
Actions which are initiated before 1
January 2014 on the basis of Decision 1672/2006/EC (Sections 1, 2 and 3
referred to in Article 3 thereof) shall continue to be governed by that
Decision. With regard to those actions, the Committee referred to in Article 13
of that Decision shall be replaced by the Committee provided for in Article 18
of this Regulation.    

Chapter II
EURES Axis
Article 20
Specific objectives
In addition to the general objectives set
out in Article 4, the specific objectives of the EURES axis shall be to:
(a)                   
Ensure that job vacancies and applications, and
any related information are transparent for the potential applicants and the employers;
this shall be achieved through their exchange and dissemination at transnational,
interregional and cross-border level using standard interoperability forms; 
(b)                   
Develop services for the recruitment and placing
of workers in employment through the clearance of job vacancies and
applications at European level; this shall cover all phases of placement, ranging
from pre-recruitment preparation to post-placement assistance with a view to the
applicant’s successful integration into the labour market; such services shall
include targeted mobility schemes to fill vacancies where labour market shortcomings
have been identified and/or help particular groups of workers such as young
people.
Article 21
Participation
1.                      
Participation in the EURES axis shall be open to
the following countries: 
(a)         
the Member States;
(b)         
the EFTA and EEA member countries in accordance
with the EEA Agreement and with the Agreement between the European Community and its Member States, of
the one part, and the Swiss Confederation, of the other, on the free movement
of persons[18].
2.                      
The EURES axis shall be open to all public and
private bodies, actors and institutions designated by a Member State or the
Commission which fulfil the conditions for participating in the EURES network,
as set out in Commission Decision 2003/8/EC[19].
Such bodies and organisations shall include in particular:
(a)         
National, regional and local authorities;
(b)         
Employment services;
(c)         
Social partner organisations and other
interested parties.
Chapter III
Microfinance and Social Entrepreneurship Axis
Article 22
Specific objectives
In addition to the general objectives set
out in Article 4, the specific objectives of the Microfinance and Social
Entrepreneurship axis shall be to:
1.         Increase access to, and the availability
of, microfinance for:
(a)         
persons who have lost or are at risk of losing
their jobs, or who have difficulty in entering or re-entering the labour
market, persons at risk of social exclusion and vulnerable persons who are in a
disadvantaged position with regard to access to the conventional credit market
and who wish to start up or develop their own micro-enterprises;
(b)         
micro-enterprises, especially those which employ
persons as referred to in point (a);
2.         Build up the institutional
capacity of microcredit providers;
3.         Support the development of
social enterprises, in particular by facilitating access to finance.
Article 23
Participation
1.                      
Participation under the Microfinance and Social
Entrepreneurship axis shall be open to public and private bodies established at
national, regional or local level in the countries referred to in Article 16(1)
and providing in those countries: 
(a)         
microfinance for persons and micro-enterprises; 
(b)         
financing for social enterprises.
2.                      
To reach out to the final beneficiaries and
create competitive, viable micro-enterprises, public and private bodies that carry
out activities as referred to in paragraph 1(a) shall cooperate closely with
organisations representing the interests of the final beneficiaries of
microcredit and with organisations, in particular those supported by the ESF,
which provide mentoring and training programmes to such final beneficiaries.
3.                      
Public and private bodies that carry out
activities as referred to in paragraph 1(a) shall adhere to high standards concerning
governance, management and customer protection in line with the principles of the
European Code of Good Conduct for Microcredit Provision and shall seek
to prevent persons and undertakings from becoming over-indebted. 
Article 24
Financial contribution 
Except in the case of joint actions, the
financial appropriations allocated to the Microfinance and Social Entrepreneurship
axis shall cover the full cost of the actions implemented
through financial instruments, including payment
obligations towards financial intermediaries, such as losses from guarantees,
management fees for the international financial institutions managing the Union’s contribution and
any other eligible costs.
Article 25
Management
1.                      
In order to implement the instruments and grants
referred to in Article 6(5), the Commission may conclude agreements with the
entities listed in Article 55(1) (b) (iii) and (iv) of Regulation XXX/2012 [New
Financial Regulation 2012] on the financial rules applicable to the annual
budget of the Union, and in particular with the European Investment Bank and
the European Investment Fund. Such agreements shall set out detailed provisions
on implementing the tasks entrusted to those financial institutions, including
provisions specifying the need to ensure additionality and coordination with
existing Union and national financial instruments and to apportion the
resources in a balanced way among the Member States and the other participating
countries. Financial instruments, such as risk-sharing instruments, equity
instruments and debt instruments, may be delivered through investment in a
dedicated investment vehicle.
2.                      
Agreements as referred to in paragraph 1 of this
Article shall provide for an obligation on the international financial
institutions to re-invest the resources and proceeds, including dividends and
reimbursements, in actions as referred to in Article 6(5) for a period of ten years
from the starting date of the Programme.
3.                      
In accordance with Article 18(2) of the [Financial
Regulation], revenues and payments generated by one financial instrument shall
be assigned to that financial instrument. For financial instruments already set
up in the previous multiannual financial framework, revenues and payments
generated by operations started in the previous period shall be assigned to the
financial instrument in the current period.
4.                      
On the expiry of the agreements concluded with
the international financial institutions or after the termination of the
investment period of the specialised investment vehicle, the proceeds and balance
due to the Union shall be paid into the general budget of the Union.
5.                      
The international financial institutions and,
where relevant, the fund managers shall conclude written agreements with the
public and private bodies referred to in Article 23. Such agreements shall lay
down the obligations of the public and private providers to use the resources
made available under the Microfinance and Social Entrepreneurship axis in
accordance with the objectives set out in Article 22 and to provide information
for drafting the annual reports provided for in Article 26.
Article 26
Implementation reports
1.                      
The international financial institutions and,
where relevant, the fund managers shall send the Commission annual
implementation reports setting out the activities granted support and covering
their financial implementation and the allocation and accessibility of funding and
investment by sector and type of beneficiary, applications accepted or rejected
and contracts concluded by the public and private bodies concerned, actions
funded and the results, including in terms of social impact, employment
creation and sustainability of the businesses support granted.
2.                      
The information provided in these annual
implementation reports shall feed into the biennial monitoring reports provided
for in Article 13. Such monitoring reports shall include the annual reports
provided for in Article 8(2) of Decision No 283/2010/EU.
Article 27
Evaluation
1.                      
The final evaluation provided for in Article 14(2)
shall include the final evaluation provided for in Article 9 of Decision No
283/2010/EU. 
2.                      
The Commission shall carry out a specific final
evaluation of the Microfinance and Social Entrepreneurship axis no later than
one year after the expiry of the agreements with the international financial
institutions.
Article 28
Amendments
Decision No 283/2010/EU is amended as
follows:
(a)                   
In Article 5, paragraph 4 is replaced by the
following: 
'4. On the expiry of the Facility, the balance
due to the Union shall be made available for microfinance and support for
social enterprises in accordance with Regulation No XX/201X/.'
(b)                   
In Article 8, paragraphs 3 and 4 are deleted. 
Article 29
This Regulation shall enter into force on
the day following that of its publication in the Official Journal of the
European Union.
This Regulation shall be binding
in its entirety and directly applicable in all Member States.
Done at Brussels,
For the European Parliament                       For
the Council
The President                                                 The
President
LEGISLATIVE FINANCIAL STATEMENT
FOR PROPOSALS
1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE 
              1.1.    Title of the proposal/initiative 
              1.2.    Policy
area(s) concerned in the ABM/ABB structure
              1.3.    Nature
of the proposal/initiative 
              1.4.    Objective(s)

              1.5.    Grounds
for the proposal/initiative 
              1.6.    Duration
and financial impact 
              1.7.    Management
method(s) envisaged 
2.           MANAGEMENT MEASURES 
              2.1.    Monitoring
and reporting rules 
              2.2.    Management
and control system 
              2.3.    Measures
to prevent fraud and irregularities 
3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE 
              3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected 
              3.2.    Estimated
impact on expenditure 
              3.2.1. Summary of
estimated impact on expenditure 
              3.2.2. Estimated impact
on operational appropriations 
              3.2.3. Estimated impact
on appropriations of an administrative nature
              3.2.4. Compatibility
with the current multiannual financial framework
              3.2.5. Third-party
participation in financing 
              3.3.    Estimated impact on revenue
LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS

1.                      
FRAMEWORK OF THE PROPOSAL/INITIATIVE 
1.1.                
Title of the proposal/initiative 

Regulation on a European Union Programme for Social Change and
Innovation

1.2.                
Policy area(s) concerned in the ABM/ABB
structure[20] 

Currently: Employment and Social Affairs, Community employment
policies/community employment policy instruments: Progress (04 04 01), Eures
(04 03 04), EPMF (04 04 15)
Future Multiannual Financial Perspectives: Heading 1 (Social
Development agenda)

1.3.                
Nature of the proposal/initiative 

þThe proposal/initiative relates to a new
action 
¨ The
proposal/initiative relates to a new action following a pilot
project/preparatory action
¨ The proposal/initiative relates to the extension of an existing
action
¨ The
proposal/initiative relates to an action redirected towards a new action

1.4.                
Objectives
1.4.1.          
The Commission's multiannual strategic
objective(s) targeted by the proposal/initiative 

The Programme aims to contribute to the implementation of the Europe
2020 Strategy, its headline targets (on poverty, employment and education) and
Integrated Guidelines (in particular 7, 8 and 10) by providing financial support for the European Union’s objectives in
terms of promoting a high level of employment, guaranteeing adequate social
protection, fighting against social exclusion and poverty and improving working
conditions.

1.4.2.          
Specific objective(s) and ABM/ABB activity(ies)
concerned 

Specific objectives:
1.                      
Develop and disseminate high-quality comparative
analytical knowledge in order to ensure that Union employment and social policy
and working conditions legislation are based on sound evidence and are relevant
to needs, challenges and conditions in the individual Member States and other
participating countries;
2.                      
Facilitate effective and inclusive information-sharing,
mutual learning and dialogue on Union employment and social policy and working
conditions legislation at Union, national and international level in order to
assist the Member States and the other participating countries in developing
their policies and in implementing Union law;
3.                      
Provide policy-makers with financial support to
test social and labour market policy reforms, build up the main actors’ capacity
to design and implement social experimentation, and make the relevant knowledge
and expertise accessible;
4.                      
Provide Union and national organisations with financial
support to step up their capacity to develop, promote and support the
implementation of Union employment and social policy and working conditions
legislation.
ABM/ABB activity(ies) concerned:
04 04 01 and 04 01 04 10
Specific objectives:
1.                      
Ensure that job vacancies and applications, and
any related information are transparent for the potential applicants and the employers;
this shall be achieved through their exchange and dissemination at
transnational, interregional and cross-border level using standard
interoperability forms; 
2.                      
Develop services for the recruitment and placing
of workers in employment through the clearance of job vacancies and
applications at European level; this shall cover all phases of placement, ranging
from pre-recruitment preparation to post-placement assistance with a view to the
applicant’s successful integration into the labour market; such services shall
include targeted mobility schemes to fill vacancies where labour market shortcomings
have been identified and/or help particular groups of workers such as young
people.
ABM/ABB activity(ies) concerned:
04 03 04 and 04 01 04 04
Specific objectives:
1.         Increase access to, and the availability
of, microfinance for:
(a)         
persons who have lost or are at risk of losing
their jobs, or who have difficulty in entering or re-entering the labour
market, persons at risk of social exclusion and vulnerable persons who are in a
disadvantaged position with regard to access to the conventional credit market
and who wish to start up or develop their own micro-enterprises;
(b)         
micro-enterprises, especially those which employ
persons as referred to in point (a);
2.         Build up the institutional
capacity of microcredit providers;
3.         Support the development of
social enterprises, in particular by facilitating access to finance.
ABM/ABB activity(ies) concerned:
04 04 15 and 04 01 04 11
Expected result(s) and impact
The programme’s ultimate aim is to achieve positive change in the
socio-economic situation, such as higher employment, less poverty, more social
inclusion and better working conditions. Efforts will focus on contributing to
Europe 2020’s inclusive growth objective and the related headline targets
through high value-added support for the key actions in the flagship
initiatives “An Agenda for New Skills and Jobs”, “The European Platform against Poverty
and Social Exclusion” and “Youth on the Move”.
However, the programme will have very limited control over actual
changes in the socio-economic situation. Rather, the key purpose and role of the
successor instrument is to support the development, coordination and
implementation of modern, effective and innovative Union employment and social
policy in meeting the aforementioned ultimate aim by: 
–              
supporting the Union policy-making process in
the legislative field, in line with the Smart Regulation principles, and in
terms of stronger policy-coordination/economic governance;
–              
focusing on the transnational dimension of Union
employment and social policy, the promotion of which calls for concerted action
in all Member States; 
–              
supporting collective and mutually reinforcing
action by the Member States to consolidate Union cooperation and foster mutual
learning and social innovations;
–              
developing services for the recruitment and
placing of workers (in particular young people) in employment through the
clearance at European level of vacancies and job applications and thereby
promoting workers’ geographical mobility;
–              
facilitating access to finance for entrepreneurs,
especially those furthest from the labour market, and for social enterprises. 

1.4.3.          
Indicators of results and impact

A results-based management approach applied to
the current Progress programme and annual performance monitoring proved to be
successful in demonstrating the programme’s achievements as well as in
enhancing the Union's accountability. Building on this experience, the new
programme has a clear intervention logic (where SMART specific objectives
contribute to the achievement of general objectives) and a set of corresponding
impact and result indicators. One
should bear in mind that the activities related to the Progress axis aim to
contribute to the strategic objectives of the Europe 2020 Strategy; as such
they do not involve the provision of goods or services; instead
Progress-related activities have an indirect impact on the development of EU
employment and social policy, knowing that better policy-making will result in
better socio-economic outcomes. As the Progress axis is primarily
policy-driven, the setting of indicators is problematic; the same applies to
the setting of quantitative targets at a more aggregate level (in this case,
measurement is primarily based of proxy indicators).
It is therefore very difficult to make Progress'
four specific objectives genuinely "measurable" while they are
specific, achievable, realistic and time-dependent (by the end of the
programme). For instance, mutual learning events cannot be quantified because
their number and topics depend on Member States' interest and willingness to host
such events and participate in them; equally the volume of knowledge depends on
policy development needs. For this reason, it is proposed to use subjective
variables, such as satisfaction and knowledge among stakeholders, surveys on
the perception of EU's role in employment and social policy, as well as intended
and actual use of Progress outputs. For similar reasons, it is not possible to
provide specific medium-term targets in all cases. Nevertheless, the approach
remains in line with result-based management which provides for effective
targets at a level close to the activity as such.
See list of indicators under section 2.1.2.

1.5.                
Grounds for the proposal/initiative 
1.5.1.          
Requirement(s) to be met in the short or long
term 

The programme will seek to support the Commission, Member States and
key stakeholders in designing, coordinating and implementing effective policy
reforms which will aim at tackling the following long-term challenges:
–              
high unemployment rates, especially among the
low-skilled, older workers, migrants and people with disabilities;
–              
an increasingly fragmented labour market,
featuring the emergence of more flexible work patterns and other challenges
that have an impact on job security and working conditions;
–              
a shrinking workforce and increasing pressure on
social protection systems as a result of demographic change (ageing
population);
–              
an unacceptably high number of people living below
the poverty line and in social exclusion.
In the short term, the programme will aim at addressing the
following problems/needs:
–              
a need for EU-wide sound, comparable and
accessible evidence, statistics and indicators in order to ensure that
employment and social policy and legislation are relevant to needs, challenges
and conditions in the individual Member States;
–              
a need for EU-level mutual learning in order to
increase understanding and ownership of EU objectives and policies among
policy-makers and stakeholders;
–              
a need for adequate financial support to
policy-makers in order to test, evaluate and scale up innovative solutions;
–              
limited geographical mobility in Europe and
insufficient support for matching job-seekers with job offers;
–              
poor access to finance and micro-credit for
social enterprises and unemployed people, people at risk of losing their jobs
and people from disadvantaged groups, for instance young or older people or
migrants.

1.5.2.          
Added value of EU involvement

The EU is uniquely placed to provide a European platform for policy
exchange and mutual learning in the employment and social area that involves
the Member States (including the EEA and candidate countries). Knowledge of the
policies carried out in other countries increases the range of options
available to policy-makers, triggers innovative policy developments and
encourages national reform. 
The EU action adds value to action at national level by providing a
Europe-wide dimension to the collection and comparing of evidence, the development
of statistical tools and methods and of common indicators in order to build up
a complete picture of the employment and social situation. Such Europe-wide evidence is a prerequisite for a sound analysis of
the key employment and social challenges facing each Member State. It is also
essential for monitoring progress towards meeting the Europe 2020 targets and
for drafting the country-specific recommendations required under the European
Semester.
The need for better application of EU legislation has been recognised
as a key priority under the Smart Regulation agenda. Modernising legislation to
create a level playing-field and guarantee a common level of EU legal
protection for all in the fields of health and safety at work and labour law is
best done at EU level. The EU is also in the best position to finance measures
to improve compliance with EU rules and to systematically review the
application of EU legislation in all Member States. 
Developing the capacity of key European-level civil-society networks
so they can support and develop the Union’s social policy goals is best tackled
at EU level.
Thanks to the new programme, in particular EURES axis, the Member
States will benefit from greater intra-EU labour market mobility, which could
help fill bottleneck or hard-to-fill vacancies and thus bolster economic
activity and contribute to economic growth. Greater European labour market
mobility is also essential for the completion of an
area without internal frontiers and for the strengthening of economic and
social cohesion and active European citizenship. The EU institutions, and in particular the Commission, which has the
administrative resources, expertise and capability to coordinate a
transnational network such as EURES, should therefore support and facilitate action
to bolster geographical labour mobility. The Commission can also add value to
the EURES network by developing policies to overcome remaining obstacles to
free movement, facilitating exchanges of good practice and ensuring mutual
learning between EURES network members. 
Stepping up the availability of microcredit is best achieved at
European level: first, the Commission, in cooperation with the European
Investment Fund, can now build on experience with the current European Progress
Microfinance Facility and other EU-level initiatives in the field of
microfinance. Microfinance institutions in all Member States can now take
advantage of this expertise without their national, regional or local
authorities needing to use their resources to put similar systems in place. 
EU-level action could pave the way for stronger national and
regional action in the future, and should therefore encompass capacity
development and mobilisation of intermediaries and multipliers in order to
create a comprehensive support ecosystem.
In addition, if financial resources are pooled at European level,
additional funding is more likely to be attracted from third-party investors
such as the European Investment Bank, which, in the case of Progress
Microfinance, matched the EU’s €100 million contribution. This is also true of
an EU-level equity fund for investments in social enterprises, which may be
expected to attract more resources from other investors. 

1.5.3.          
Lessons learned from similar experiences in the
past

The mid-term evaluation of the Progress programme (2007-2013) concludes that its objectives are highly relevant to the Commission’s
strategic objectives as set out in the Lisbon Strategy and in the Europe 2020
Strategy. The main types of activities (analytical and mutual learning
activities, support to main actors) that the programme performs are effective
in meeting its objectives. The annual planning, implementation, monitoring cycle
and the evaluation of activities are considered generally suitable; however, it
is recommended that multiannual planning be developed to set strategic
long-term policy objectives alongside annual funding priorities.
An ex-post evaluation of the EURES network (2006-2008) shows that, by
comparison with other EU networks, EURES focuses to a significantly greater
degree on employment opportunities and is also the only network that seeks to
provide specific job-matching services. The EURES Job Mobility Portal is
appreciated by jobseekers, job-changers and employers, who see clear benefits
in being able to access – or post – vacancy information throughout Europe.
Because the EU only began granting support
for microfinance in the second half of 2010, an independent evaluation is yet
to be carried out. Judging by feedback from stakeholders (the European Microfinance
Network (EMN), which represents the European microfinance sector, the EU-level
microfinance instrument meets their expectations. It stimulates the setting-up
of national or regional support schemes; realises economies of scale and/or
minimises the risk of failure in areas where an individual Member State cannot
bring the requisite critical mass to bear; and generates higher leverage than small-scale national schemes.

1.5.4.          
Coherence and possible synergy with other
relevant instruments

The Commission, in cooperation with the Member States, will ensure that
activities carried out under the Programme are consistent with, complementary to
and do not duplicate other Union action, in particular under the European
Social Fund (ESF) and in such areas as social dialogue, justice and fundamental
rights, education, vocational training and youth policy, research and
innovation, entrepreneurship, health, enlargement and external relations, and
general economic policy.

1.6.                
Duration and financial impact 

þ Proposal/initiative of limited
duration 
–     
þ  Proposal/initiative in effect from 01/01/2014 to 31/12/2020 
–     
þ  Financial impact from 2014 to 2020.
¨ Proposal/initiative of unlimited
duration
–     
Implementation with a start-up period from YYYY
to YYYY,
–     
followed by full-scale operation.

1.7.                
Management mode(s) envisaged

þ Centralised direct management by the Commission 
¨ Centralised indirect management with the delegation of implementation tasks to:
–     
¨  executive agencies 
–     
¨  bodies set up by the Communities
–     
¨  national public-sector bodies/bodies with public-service mission 
–     
¨  persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation

¨ Shared management with the Member States 
¨ Decentralised management with third countries 
þ Joint management with international organisations
Centralised direct management mode (Article 53a of the Financial
Regulation) applies to all activities carried out under the Progress and EURES axes.
Activities carried out under the Microfinance and Social Entrepreneurship axis
will be implemented in accordance with Joint management mode (agreements will
be signed by the Commission with international financial institutions such as
EIB/EIF).

2.                      
MANAGEMENT MEASURES 
2.1.                
Monitoring and reporting rules
2.1.1.          
Monitoring and evaluation arrangements

The Programme will be monitored on a biennial basis in order both to
assess progress towards achievement of its general and specific objectives
against clear indicators and to allow for any necessary adjustments of the
policy and funding priorities. The monitoring will also provide a means of
assessing the way in which gender equality and anti-discrimination issues have
been addressed across the programme’s activities. Where relevant, indicators
should be disaggregated by gender, age and disability.
The Programme will be subject to mid-term and
ex-post evaluation. A mid-term evaluation will aim at measuring progress made
in meeting the Programme’s
objectives, determining whether its resources have been used efficiently and
assessing its European added value. The mid-term evaluation
report should be delivered by the end of 2017 to feed into the preparation of a
successor instrument to the Programme. The final evaluation shall, in addition, examine the impact
of the Programme. The ex-post
evaluation report shall be delivered by the end of 2022 at the latest.
Given the longer lifetime of the Microfinance and Social Entrepreneurship
axis (investments will take place until ten years after the start of the
instrument), a specific final evaluation will be undertaken for this axis at
the latest one year after the end of the agreements concluded between the
Commission and the European Investment Fund.

2.1.2.          
Performance indicators

General objectives
 Indicators || Current situation || Long-term targets 
 Strengthen ownership of the Union objectives in the employment, social and working conditions fields among key Union and national policy-makers, as well as other interested parties in order to bring about concrete and coordinated actions at both Union and Member State level 
 Active participation of stakeholders at the EU and Member State levels in debating common challenges and taking concrete action to tackle them || There is no uniform method to measure the level of involvement of stakeholders in policy debate. Recent evaluations[21] have revealed that stakeholders' participation varies depending on policy issue and across the Member States. Latest Annual PROGRESS Performance Report suggests a tendency for authorities (EU, national, regional or local) to have closer ties with each other than with social partners and NGOs. || Equally active participation of all relevant stakeholders at the EU level and across all the Member States 
 Acceptance of the relevant country-specific recommendations || The indicator is based on the Country-specific Recommendations which have been issued in June 2011 for the first time. The Commission assessment of the previous NSRs and content of the previous Country-Specific Integrated Recommendations show that up to three quarters of the Member States have policy or strategies consistent with EU objectives. || All Member States accept the Country-specific Recommendations in the employment, social and working conditions fields (as attested by the strategies and policies reported in the subsequent National Reform Programmes)   
 Support the development of adequate, accessible and efficient social protection systems and labour markets and facilitate policy reform, by promoting good governance, mutual learning and social innovation 
 Incidence of up-take of social innovation results in the design and implementation of active labour market and social protection policies || Supporting social innovation is a new area of intervention. There is a lack of more systematic approach to full use of the social innovation results in active labour market and social protection policies. || Every Member State in its National Reform Programme reports at least one example of planned or actual up-take of available social innovation results in the design and implementation of its active labour market and social protection policies 
 Awareness of social innovation || As above. || As above. 
 Modernise Union law in line with the Smart Regulation principles and ensure that Union law on matters relating to working conditions is effectively applied 
 Share of: (a) the legislative acquis (directives) comprehensively reviewed           (b) resulting number of substantive proposals to revise (abandon, merge) existing or to initiate new legislation ||     (a) One directive (the Working Time Directive) is currently under review.       (b) n/a. ||     (a) 100 % of directives on matters relating to working conditions are comprehensively reviewed by the end of the programme.   (b) Wherever appropriate, the Commission initiates action to amend, clarify or simplify existing legislation or initiate the new one, if justified by an impact assessment, and, where relevant, after consulting EU social partners. 
 Compliance in the Member States with EU legislation (transposition rate and fragmentation factor) || In 2010, the transposition rate was 98.3% for labour law directives and 100% for health and safety at work directives; the corresponding fragmentation factors were 5% and 0%. Historical analysis indicates that these rates tend to get worse after introduction of new legislation. In the light of possible Commission’s action to amend, clarify or simplify the existing or initiate the new legislation, it is important to maintain the high transposition factor and low fragmentation rate. || 100% transposition rate, and correspondingly low, 0% fragmentation factor 
 Active implementation and enforcement || Currently, the presence of active implementation and enforcement is assessed qualitatively (through evaluations and networks of independent experts) and varies by directive and by country. || 100% of working conditions-related directives are actively implemented and enforced in almost all Member States (qualitative assessment) 
 Promote workers’ geographical mobility and boost employment opportunities by developing Union labour markets that are open and accessible to all 
 Impact of geographic mobility on MS' GDP || There are preliminary attempts to model and assess the impact for specific countries (i.e. UK ad Ireland) yet, they do not cover the entire Union. The Employment in Europe report 2008 estimated that mobility flows from the EU-8 have added an extra 0.4% to the Irish GDP and 0.3% to the UK’s GDP by 2007. || Impact of geographical mobility on MS's GDP is assessed for the entire Union and is positive. The long-run estimate forecasts an extra 1.7% to GDP in Ireland and 0.6% in the UK by 2015 compared with the pre-enlargement situation. 
 Impact of geographical mobility on the reduction of unfilled/bottlenecks job vacancies || There are preliminary attempts to model and assess the impact for specific countries, yet they do not cover the entire Union.   || Impact of geographical mobility on the reduction of unfilled/bottleneck job vacancies is assessed for the entire Union and is positive.   
 Difference in labour market participation and employment rates of mobile workers between the host country and the country of origin || Mobile workers in the sense of intra-EU mobility tend to have higher employment rates than non mobile workers. || Information will be made available from Eurostat's Labour Force Survey and other statistics.   
 Promote employment and social inclusion by increasing the availability and accessibility of microfinance for vulnerable groups and micro-enterprises, and by increasing access to finance for social enterprises 
 Number of businesses created or consolidated that have benefitted from EU support || 0 || 51000 (of which 1000 social enterprises) 
 Number of jobs created or maintained through the establishment or development of a business || According to an evaluation of the CIP programme, per microloan provided, 1.2 jobs were created. ||   
 Profile of persons (including, where possible, age, gender, minority, disability and employment status) that have created or further developed a business with EU microfinance support || Not available || 50% of beneficiaries are unemployed people or from disadvantaged groups 

Specific objectives
 Indicators || Latest known results || Medium term target 
 1. Develop and disseminate high-quality comparative analytical knowledge in order to ensure that Union employment and social policy and working conditions legislation are based on sound evidence and are relevant to needs, challenges and conditions in the individual Member States and other participating countries 
 Stakeholders satisfaction with and declared use of knowledge generated by the programme || Various stakeholders (Commission, EP, national administrations, implementing bodies, social partners, NGO, etc.) use the knowledge generated by the current Progress programme. Its 2010 Annual Survey indicates that those aware of the generated knowledge (about 50%) find it helpful (around 85% of responding stakeholders) and (plan to) use it. || Extend the scope of stakeholders who are aware of the knowledge generated by the programme (increased awareness of the key outputs: 75% of the responding stakeholders), and keep the high satisfaction rate (85% or more of responding stakeholders) 
 Share of policy initiatives launched by DG EMPL which are informed by the knowledge generated by the Programme || Not available. || 100% of EU employment and social policy initiatives and action on working conditions legislation are informed by the knowledge generated by the Programme 
 Share of effort[22] dedicated to development of new (previously inexistent) knowledge (ideas, concepts, approaches, models, forward-looking analysis) || There is no exact estimate, but the share of budget allocated to generation of the said type of knowledge is around 10-20%. This share is expected to grow, especially in the light of the emphasis on social innovation. || At least 25% of the budget is dedicated to development of new (previously inexistent) knowledge (ideas, concepts, approaches, models, forward-looking analysis) 
 2. Facilitate effective and inclusive information-sharing, mutual learning and dialogue on Union employment and social policy and working conditions legislation at Union, national and international level in order to assist the Member States and the other participating countries in developing their policies and in implementing Union law 
 The declared gain of better understanding of EU policies and objectives (including, where relevant, gender, non-discrimination and accessibility mainstreaming) || Around 89% of the respondents to 2010 Annual Survey claim to have gained better understanding of EU policy objectives by participating in Progress-funded events. || 9 out of 10 stakeholders claim to have gained better understanding of EU policies and objectives by participating in programme-funded events. 
 The extent to which mutual learning/information sharing events are inclusive and meet minimum standards for consultation || The 2010 follow-up survey reveal that the Progress-funded mutual learning events are highly appreciated for the clarity of discussed issues and involvement of the relevant decision-makers (4 out of 5 responding stakeholders express positive opinion), yet slightly less positive what concerns involvement of other stakeholders (social partners, NGOs, etc.). || 4 out of 5 stakeholders claim that mutual learning/information sharing events are inclusive and fully meet all the standards for consultation. 
 The declared (intended/actual) use of information for policy-making/advocacy by the involved participants but also other decision-makers and stakeholders || Ex-post survey of Progress-funded events in 2010 revealed that around 2/3 of participants intended or actually used the information for policy making or advocacy. The essential challenge (especially in the case of mutual learning events) however is to promote the sharing of acquired information with other relevant decision-makers and stakeholders (i.e., those, who did not participate). || - 3 out of 4 involved participants declare (intended/actual) use of acquired information. - Improved sharing of information with other decision-makers and stakeholders (non-participants) 
 3. Provide policy-makers with financial support to test social and labour market policy reforms, build up the main actors’ capacity to design and implement social experimentation, and make the relevant knowledge and expertise accessible 
 The declared (intended/actual) use of information for policy-making/advocacy and or further social experiments by involved participants but also other decision-makers and stakeholders || Supporting social innovation is a new area of intervention, so there is no baseline. || Due to novelty of this type of activity it could be expected that up to 2/3 of involved participants declared intended or actual use of information acquired through social experimentation for policy making/advocacy and or further social experiments. 
 The presence of adequate conditions (financial resources, accessibility to relevant know-how and expertise) to design and implement social experiments in the field of EU employment and social policy: adequate capacity of the main actors || Supporting social innovation is a new area of intervention, so there is no baseline. || All the key preconditions (financial resources, accessibility to relevant know how and expertise, capacity of the main actors) to design and implement social experiments in the field of EU employment and social policy are assessed (e.g., by evaluation) as sufficient 
 4. Provide Union and national organisations with financial support to step up their capacity to develop, promote and support the implementation of Union employment and social policy and working conditions legislation 
 Strengthened organisations and networks being acknowledged as a useful source of information for the EU and MS policy and decision-makers and other stakeholders || There is no comprehensive baseline for all types of organisations and networks which are planned to be supported under the new programme. Currently (2011), there is only data that up to 9 in 10 of responding stakeholders in general, and some 3 out of 4 responding decision-makers and officials in particular assess the best performing key EU networks and NGOs as a useful source of information. || The most assisted organisations and networks are acknowledged by 3 out of 4 surveyed decision-makers and other stakeholders as a useful source of information to on the EU and Member States' policy 
 The declared change in capacity[23] to further develop, promote and support the implementation of EU employment and social policy and legislation by the participants (individuals or organisations, as relevant) involved in the supported capacity strengthening measures || There is no comprehensive baseline for this type of self-assessment by the participants (individuals or organisations, as relevant) involved in the supported capacity strengthening measures. The first results of similar performance measurements introduced by the Progress-funded key EU networks and NGOs indicate positive change, especially what concerns acquiring specific knowledge relevant to policy-making and advocacy, with somewhat less success in improving internal organisation. || 3 out of 4 participants involved in the supported capacity strengthening measures declare improved capacity to further develop, promote and support the implementation of EU employment and social policy and legislation 
 5. Ensure that job vacancies and applications, and any related information are transparent for the potential applicants and the employers 
 Total number of job vacancies and CVs on EURES Job Mobility Portal, currently the EURES portal hosts more than 1,000,000 job vacancies, and 600,000 CVs || Currently EURES portal hosts more than 1,000,000 job vacancies, and 600,000 CVs || The number of vacancies is expected to grow at a rate of 3% per year. 
 Number of recruitment/ placements and job offers made through the EURES Job Mobility Portal || Currently estimated at 150.000 placements per year || The services responsible for EURES launched a study on "Evaluating Public Employment Services' performance measurement systems and recommendations on geographical mobility indicators" to indentify indicators for EURES 2020. 
 6. Develop services for the recruitment and placing of workers in employment through the clearance of job vacancies and applications at European level 
 Number of transnational placements facilitated by EURES. Increase the number of placements by 3% per year (currently estimated at 150.000 placements per year) || The Commission has only recently launched the preparatory action for the first targeted mobility scheme "Your first EURES job". According to estimates, it will contribute to the placement of 2000 to 3000 young workers. || See above   
 7. Increase access to, and the availability of, microfinance 
 Number of microloans provided by intermediaries to final beneficiaries with EU support. (50000 microloans provided by the end of the total investment period) || 0 || 50000 microloans provided by the end of the total investment period 
 Volume of microloans provided in € (a total volume of close to EUR 450 million, resulting from a leverage of 5 times the Union contribution of EUR 87 million) || Not available || A total volume of EUR 500 million, (corresponding to a leverage of 5 x the Union contribution) 
 Profile of final beneficiaries (age, gender, minority, employment status…) that have received a microloan with EU support. (50% of beneficiaries are unemployed people or from disadvantaged groups) || Not available || 50% of beneficiaries are unemployed people or from disadvantaged groups 
 8. Build up the institutional capacity of microcredit providers 
 Number of micro-credit providers supported through funding for capacity building (50 microcredit providers supported by the end of the support period) || Not available || 50 microcredit providers supported by the end of the total investment period 
 Level of institutional capacity in terms of funding, human resources, operational management as well as systems and infrastructure (Higher capacity of the sector compared to level identified in 2009) || In 2009, weaknesses in capacity building identified were difficulties to cover start-up and operative costs, underdeveloped systems for performance measurement and analysis, only average capacity levels regarding human resource management and a lack of capacity by non-bank microcredit providers for networking and co-operation[24] || Higher capacity of the sector compared to level identified in 2009 
 9. Support the development of social enterprises 
 Number of social enterprises that have been supported through the initiative (1000 social enterprises supported ) || 0 || 900 social enterprises supported by the end of the total investment period 
 Volume of investment provided to social enterprises (270 million, leading to a leverage of 3 times) || 0 || 270 million, corresponding to a leverage of 3 times the EU contribution 

2.2.                
Management and control system 
2.2.1.          
Risk(s) identified 

Under the Progress, centralised direct management will involve (a)
the attribution of numerous contracts and grants for specific activities
(relevant also for the EURES axis), (b) the payment of numerous operating
grants to non-governmental organisations; (c) cooperation with international
organisations (relevant also for the Microfinance and Social Entrepreneurship axis
implemented in accordance with Joint Management mode). The main risk will be relating to the capacity of (especially)
smaller organisations to effectively control expenditure as well as to ensure the transparency of operations carried out.

2.2.2.          
Control method(s) envisaged 

Given the nature of the Programme, the effective management of the appropriations
will be based on a system of cumulative controls that will rest on the internal
control standards, the control of the transactions within DG EMPL and the
control of transactions in the Member States.
The financial circuit put in place to implement the budget will be
based on model 1 (i.e. decentralised at the level of the operational Units with
complementary verification by sampling). This organisation respects the
principle of the 4 eyes in total accordance with the Financial Regulation.
Transactions will be double-checked: 100% of the transactions by the
Financial Verifying Agent (FVA) (1st ex-ante level) and additional
ex-ante desk controls by a Complementary Verifying Agent (CVA) (second ex-ante
level), whose control target will be to verify 10% to 20% of all transactions
representing at least 50% of the budget. Exceptionally, when the Authorising
Officer by Sub-Delegation (AOSD) will not have the assurance that the
underlying operations are regular, on-the-spot checks will be organised before
the final payment. These on-the-spot checks will be carried out by external
auditors. 
Ex-post audits will also be carried out on-the-spot by external
auditors for a sample of transactions. The selection of these transactions will
combine a risk assessment and an ad random selection.
In addition, the current accounting cell will process accounting
ex-post controls.
As far as the international organisations are concerned, they will be obliged, in their accounting, audit and internal control
and procurement procedures, to apply standards which offer guarantees
equivalent to internationally accepted standards. In addition, individual
agreements concluded with the international organisations for the award of
financing shall contain detailed provisions for the implementation of the tasks
entrusted to such international organisations. They will also ensure adequate
annual ex post publication of beneficiaries of funds deriving from the budget. 

2.2.3.          
Costs of control

The costs of controls (covering any activities which are directly or
indirectly related to the verification of the rights of the
beneficiary/contractor as well as the regularity of the expenditure) have been
estimated. The cost data were gathered by interviewing the staff on the full
time equivalents spent on controls. 
Result of the calculation per calendar year:
Ex-ante desk and on-the-spot checks: 5.616.200€ (0.6% of the funds –
958.19M€)
Ex-post on-the-spot checks: 531.000€ (0.05% of the funds – 958.19M€)
Total cost of controls per calendar year: 6.147.200€ (0.64% of the
funds – 958.19M€)

2.2.4.          
Benefits of control

The yearly cost of the suggested level of controls represents
approximately 5% of the yearly budget of the operational expenditure (in
commitments – i.e. 6.147.200€/123.627.000€ for the first year as indicated in
table 3.2.1). This is justified by the high amount of transactions to be
controlled (see outputs under section 3.2.2). Indeed, in the area of employment
and social affairs, direct management and joint management involve the
attribution of numerous contracts and subsidies for actions, and the payment of
numerous operating grants to non-governmental organisations, associations and
trade unions. The risk related to these activities concerns capacity of
(especially) smaller organisations to effectively control expenditure.
Last year, CVAs controlled 21.8% of all transactions, which
represented 84.6% of the total budget (59.4% for expenditure under direct
management). Consequently, the number of errors detected decreased from 95 in
2009 to 67 in 2010, representing an error rate of 8.6% on the number of financial
transactions. The majority of the errors were formal in nature and had no
impact in terms of assurance on the legality and regularity of the transactions
concerned. 
External auditors controlled 20.78% of the budget on-the-spot in
2010. The level of error was under the materiality level (1.08%).

2.2.5.          
Expected level of risk of non-compliance with
applicable rules

The past error rate for the ex-ante controls of the transactions
reached 8.6% of the total number of financial transactions in 2010. As stated
in last year DG EMPL's annual activity report, none of the detected errors had
an impact on the level of assurance on the legality and regularity of the
transactions concerned.
The past error rate for the on-the-spot audits under direct
management was 1.08%. This level of error was considered acceptable, as it was
under the materiality level of 2%.
The proposed changes for the programme will not affect the way the
appropriations are currently managed. The existing control system proved to be
able to prevent and/or to detect errors and/or irregularities, and in case of
errors or irregularities, to correct them. Therefore, historical error rates
are expected to remain at the same levels.

2.3.                
Measures to prevent fraud and irregularities 

Specify existing or
envisaged prevention and protection measures.
The Commission shall take appropriate measures ensuring that, when
actions financed under this Regulation are
implemented, the financial interests of the European Union are protected by the
application of preventive measures against fraud, corruption and any other
illegal activities, by effective checks and, if irregularities are detected, by
the recovery of the amounts wrongly paid and, where appropriate, by effective,
proportional and deterrent penalties,
in accordance with Article 325 of the Treaty on the Functioning of the
European Union, Council Regulation
(EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the
European Communities’ financial interests[25]
and Article 53(a) of the Financial Regulation. 
The Commission or its representatives and the Court of Auditors
shall have the power of audit, on the basis of documents and on-the-spot, over
all grant beneficiaries, contractors and subcontractors who have received Union
funds. OLAF shall be authorised to carry out on-the-spot checks and inspections
on economic operators concerned directly or indirectly by such funding in
accordance with the procedures laid down in Council Regulation (Euratom, EC) No
2185/96 of 11 November 1996[26] with a view to establishing that there has been fraud, corruption or
any other illegal activity in connection with a grant agreement or decision or
a contract concerning Union funding.
Without prejudice to the previous sub-paragraphs, decisions,
agreements and contracts resulting from the implementation of this Regulation shall expressly entitle the
Commission, including OLAF, and the Court of Auditors to conduct such audits,
on-the-spot checks and inspections. 

3.                      
ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
3.1.                
Heading(s) of the multiannual financial
framework and expenditure budget line(s) affected 

·      Existing expenditure budget lines 
In order of
multiannual financial framework headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number [Description………………………...……….] || DA/NDA ([27]) || from EFTA[28] countries || from candidate countries[29] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation 
 1a || 04 03 04 XX Eures - –dépenses opérationnelles || DA || YES || YES || NO || NO 
 1a || 04 04 01 XX Progress - –dépenses opérationnelles   || DA || YES || YES || NO || NO 
 1a || 04 04 15 XX EPMF - –dépenses opérationnelles || DA || NO || NO || NO || NO 
 1a || 04 01 04 04 EURES (services européens de l’emploi) Dépenses pour la gestion administrative || NDA || YES || NO || NO || NO 
 1a || 04 01 04 10 Programme Progress Dépenses pour la gestion administrative || NDA || YES || YES || NO || NO 
 1a || 04 01 04 11 Instrument européen de microfinancement — Dépenses pour la gestion administrative || NDA || NO || NO || NO || NO 
·      New budget lines requested 
In order of multiannual financial framework
headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number [Heading……………………………………..] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation 
 1 || [XX.YY.YY.YY] European Programme for social change and innovation – Progress axis – dépenses opérationnelles   || DA || YES || YES || NO || NO 
 1 || [XX.YY.YY.YY] European Programme for social change and innovation - Eures axis – dépenses opérationnelles || DA || YES || NO || NO || NO 
 1 || [XX.YY.YY.YY] European Programme for social change and innovation - Microfinance and social entrepreneurship axis – dépenses opérationnelles || DA || YES || YES || NO || NO 
 1a || [XX.YY.YY.YY] European Programme for social change and innovation- Progress Axis Dépenses pour la gestion administrative || NDA || YES || YES || NO || NO 
 1a || [XX.YY.YY.YY] European Programme for social change and innovation -EURES axis Dépenses pour la gestion administrative || NDA || YES || NO || NO || NO 
 1a || [XX.YY.YY.YY] European Programme for social change and innovation- Microfinance and social entrepreneurship axis — Dépenses pour la gestion administrative || NDA || YES || YES || NO || NO 

3.2.                
Estimated impact on expenditure 
3.2.1.          
Summary of estimated impact on expenditure 

EUR million (to 3 decimal places)
 Heading of multiannual financial framework: || Number || HEADING 1: Smart and Inclusive Growth 
 DG: <EMPL> ||   ||   || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || 2021 || 2022 || 2023 || TOTAL 
  Operational appropriations ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Progress axis || Commitments || (1) || 74.176 || 75.858 || 77.413 || 78.618 || 80.297 || 82.098 || 85.694 ||   ||   ||   || 554.154 
 Payments || (2) || 23.617 || 46.581 || 50.306 || 70.130 || 68.425 || 69.129 || 71.773 || 61.677 || 52.866 || 39.650 || 554.154 
 Eures axis || Commitments || (1a) || 18.544 || 18.964 || 19.353 || 19.654 || 20.075 || 20.524 || 21.424 ||   ||   ||   || 138.538 
 Payments || (2a) || 14.703 || 15.033 || 15.333 || 15.573 || 15.903 || 16.209 || 16.984 || 14.400 || 14.400 ||   || 138.538 
 Microfinance axis || Commitments || (1a) || 24.726 || 25.286 || 25.804 || 26.206 || 26.766 || 27.366 || 28.564 ||   ||   ||   || 184.718 
 Payments || (2a) || 24.726 || 25.286 || 25.804 || 26.206 || 26.766 || 27.366 || 28.564 ||   ||   ||   || 184.718 
 Reserve || 6.181 || 6.322 || 6.451 || 6.551 || 6.692 || 6.842 || 7.141 ||   ||   ||   || 46.180 
   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations for DG <EMPL> || Commitments || =1+1a +3 || 123.627 || 126.430 || 129.021 || 131.029 || 133.831 || 136.829 || 142.823 ||   ||   ||   || 923.590 
 Payments || =2+2a +3 || 69.227 || 93.222 || 97.894 || 118.460 || 117.786 || 119.546 || 124.462 || 76.077 || 67.266 || 39.650 || 923.590 
  TOTAL operational appropriations || Commitments || (4) || 123.627 || 126.430 || 129.021 || 131.029 || 133.831 || 136.829 || 142.823 ||   ||   ||   || 923.590 
 Payments || (5) || 69.227 || 93.222 || 97.894 || 118.460 || 117.786 || 119.546 || 124.462 || 76.077 || 67.266 || 39.650 || 923.590 
  TOTAL appropriations of an administrative nature financed from the envelop of specific programs || (6) || 4.400 || 4.600 || 5.000 || 5.000 || 5.200 || 5.200 || 5.200 ||   ||   ||   ||   34.600 
 TOTAL appropriations under HEADING 1 of the multiannual financial framework || Commitments || =4+ 6 || 128.027 || 131.030 || 134.021 || 136.029 || 139.030 || 142.029 || 148.024 ||   ||   ||   || 958.190 
 Payments || =5+ 6 || 73.627 || 97.822 || 102.894 || 123.460 || 122.986 || 124.746 || 129.662 || 76.077 || 67.266 || 39.650 || 958.190 
If more than one heading is affected by the proposal /
initiative:
  TOTAL operational appropriations || Commitments || (4) ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || (5) ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
  TOTAL appropriations of an administrative nature financed from the envelop of specific programs || (6) ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || =5+ 6 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Heading of multiannual financial framework: || 5 || ‘ Administrative expenditure ‘ 
EUR million (to 3 decimal places)
   ||   ||   || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL 
 DG: <EMPL.> || 
  Human resources || 14.6 || 14.6 || 14.6 || 14.6 || 14.6 || 14.6 || 14.6 || 102.2 
  Other administrative expenditure || 1.42 || 1.42 || 1.42 || 1.42 || 1.42 || 1.42 || 1.42 || 9.94 
 TOTAL DG <EMPL.> || Appropriations || 16.02 || 16.02 || 16.02 || 16.02 || 16.02 || 16.02 || 16.02 || 112.14 
 TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 16.02 || 16.02 || 16.02 || 16.02 || 16.02 || 16.02 || 16.02 || 112.14 
EUR million (to 3 decimal places)
   ||   ||   || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || 2021 || 2022 || 2023 || TOTAL 
 TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 144.047 || 147.05 || 150.041 || 152.049 || 155.05 || 158.049 || 164.044 ||   ||   ||   || 1,070.33 
 Payments || 89.647 || 133.844 || 118.91 || 139.483 || 139.007 || 140.767 || 145.679 || 76.077 || 67.266 || 39.650 || 1,070.33 

3.2.2.          
Estimated impact on operational appropriations 

–     
¨  The proposal/initiative does not require the use of operational
appropriations 
–     
þ  The proposal/initiative requires the use of operational
appropriations, as explained below:
Commitment appropriations in EUR million (to 3 decimal
places)
 Indicate objectives and outputs   ò ||   ||   || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 
 OUTPUTS 
 Type of output[30] || Average cost of the ouput || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Total number of ouputs || Total cost 
 SPECIFIC OBJECTIVE No 1: Develop and disseminate high-quality comparative analytical knowledge in order to ensure that Union employment and social policy and working conditions legislation are based on sound evidence and are relevant to needs, challenges and conditions in the individual Member States and other participating countries 
 Monitoring and assessment of implementation and impact of EU legilsation and policy in the employment, working conditions and social policy areas, including through relevant expert networks || Data warehouse, country & legal expert network || 0,20 || 14 || 2,698 || 14 || 2,708 || 14 || 2,718 || 14 || 2,968 || 14 || 2,739 || 14 || 3,049 || 14 || 3,191 || 98 || 20,071 
 Research and analysis relating to employment, working conditions and social policy areas in order to inform and shape policy agenda at EU and international level, including through cooperation with international organisations || (Prospective) studies, coop. with intern. org. || 0,34 || 14 || 4,338 || 14 || 4,67 || 14 || 4,495 || 14 || 4,842 || 14 || 4,749 || 14 || 5,267 || 14 || 5,585 || 98 || 33,946 
 Development and dissemination of common methodologies, indicators and benchmarks relating to employment and social policy || European Mobility Lab. Cooperation with CEDEFOP, new indicators, joint projects with JRC || 0,79 || 5 || 3,87 || 5 || 3,886 || 5 || 3,691 || 5 || 3,918 || 5 || 3,936 || 5 || 4,102 || 5 || 4,4 || 35 || 27,803 
 Collection, development and dissemination of data and statistics, in particular in collaboration with ESTAT, surveys || European Standard Classification of occupations (ESCO), European Vacancy Monitor, Eurobarometers, special modules of LFS, LMP database || 0,5 || 10 || 7,112 || 10 || 7,115 || 10 || 6,94 || 10 || 7,187 || 10 || 7,124 || 10 || 7,262 || 10 || 7,301 || 70 || 50,041 
 Impact assessments (IA) and evaluations aiming to inform the Commission policy-making processes, including evaluations of the programme || Reports, preparatory studies for impact assessment || 0,32 || 6 || 1,747 || 5 || 1,549 || 7 || 2,847 || 5 || 1,785 || 7 || 2,915 || 5 || 1.,946 || 7 || 2,376 || 42 || 15,165 
 Annual monitoring of the programme || Annual monitoring reports || 0,3 || 0 || 0 || 1 || 0,3 || 0 || 0 || 1 || 0,3 || 0 ||   || 1 || 0,3 || 0 || 0 || 3 || 0,9 
 Sub-total for specific objective N°1 || 49 || 19,765 || 49 || 20,228 || 50 || 20,691 || 49 || 21 || 50 || 21,463 || 49 || 21,926 || 50 || 22,853 || 346 || 147,926 
 SPECIFIC OBJECTIVE No 2: Facilitate effective and inclusive information-sharing, mutual learning and dialogue on Union employment and social policy and working conditions legislation at Union, national and international level in order to assist the Member States and the other participating countries in developing their policies and in implementing Union law 
 Peer reviews, mutual learning & exchange of good practices in related policy areas || PES to PES dialogue, peer reviews, mutual learning seminars || 0,19 || 30 || 5,71 || 29 || 5,545 || 31 || 6,062 || 31 || 6,1 || 31 || 6,076 || 31 || 6,093 || 32 || 6,471 || 215 || 42,057 
 Development and maintenance of information systems in order to exchange and disseminate information on EU policy and legislation in related areas || Joint projects with OECD, ILO, World Bank, EUROMOD; EU Skills Panorama, Web-tool of Evaluated Employment Services Practices || 0,93 || 6 || 5,15 || 6 || 5,343 || 6 || 5,248 || 6 || 5,514 || 6 || 5,713 || 6 || 6,114 || 6 || 6,143 || 42 || 39,225 
 Training and mutual learning targeted at legal and policy practitioners || Seminars || 0,1 || 8 || 0,8 || 8 || 0,8 || 8 || 0,8 || 8 || 0,8 || 8 || 0,8 || 8 || 0,8 || 8 || 0,8 || 56 || 5,6 
 Information and communication campaigns at EU and national level || Events, audiovisual & promotional material || 0,49 || 4 || 1,9 || 4 || 1,914 || 4 || 1,928 || 4 || 1,943 || 4 || 2,069 || 4 || 1,973 || 4 || 1,988 || 28 || 13,715 
 Exchange of personnel between national administrations || Exchange of Inspectors SLIC, visits, reports || 0,06 || 16 || 0,9 || 0,06 || 0,9 || 0,06 || 0,9 || 0,06 || 0,9 || 0,06 || 0,9 || 0,06 || 0,9 || 0,06 || 0,9 || 112 || 6,3 
 Funding of European-level observatories || European Employment Observatory || 0,29 || 5 || 1,32 || 5 || 1,344 || 5 || 1,368 || 5 || 1,393 || 5 || 1,419 || 5 || 1,445 || 5 || 1,471 || 35 || 9,76 
 Guides, reports and educational material || Good practice guides and other educational publications || 0,16 || 5 || 0,8 || 5 || 0,8 || 5 || 0,8 || 5 || 0,8 || 5 || 0,8 || 5 || 0,8 || 5 || 0,8 || 35 || 5,6 
 Networking activities among specialised bodies at European level || Heads of Public Employment Services Network, other meetings || 0,23 || 6 || 1,39 || 6 || 1,39 || 6 || 1,39 || 6 || 1,39 || 6 || 1,39 || 6 || 1,39 || 6 || 1,39 || 42 || 9,73 
 Internatonal conferences to promote the external dimension of the employment and social policy || International conferences || 0,7 || 14 || 0,9 || 14 || 0,912 || 14 || 0,924 || 14 || 0,937 || 14 || 0,949 || 14 || 0,962 || 14 || 1,336 || 98 || 6,92 
 Conferences, seminars, round tables, etc. on EU law and policy issues in the employment, working conditions and social policy areas || European-level events, Presidency conferences, seminars to support OMC || 0,16 || 18 || 2,906 || 19 || 3,24 || 20 || 3,041 || 20 || 3,082 || 21 || 3,216 || 22 || 3,447 || 23 || 3,85 || 143 ||   
 Valorisation and dissemination of the Programme results || Publications, IT tool || 0,17 || 3 || 0,45 || 3 || 0,5 || 4 || 0,57 || 3 || 0,56 || 3 || 0,55 || 3 || 0,54 || 3 || 0,48 || 22 || 3,65 
 Sub-total for specific objective N°2     || 115 || 22,226 || 115 || 22,688 || 119 || 23,031 || 118 || 23,419 || 119 || 23,882 || 120 || 24,464 || 122 || 25,629 || 828 || 165,339 
 SPECIFIC OBJECTIVE No 3: Provide policy-makers with financial support to test social and labour market policy reforms, build up the main actors’ capacity to design and implement social experimentation, and make the relevant knowledge and expertise accessible 
 Financial support for social experimentation projects || Grants || 1,17 || 9 || 9,8 || 9 || 9,8 || 9 || 10,7 || 9 || 11,2 || 10 || 11,7 || 10 || 12 || 10 || 12,2 || 66 || 77,4 
 Capacity building activities || Research, methodological developments, analysis, training activities including through experts networks, community of practice, digital platforms || 0,14 || 10 || 1,65 || 12 || 1,8 || 10 || 1,3 || 10 || 1,4 || 10 || 1,2 || 8 || 0,986 || 8 || 1,098 || 68 || 9,434 
 Awareness raising activities || Conferences, workshops, peer reviews, & exchange of good practices, communication || 0,15 || 10 || 1,609 || 12 || 1,765 || 14 || 1,671 || 10 || 1,275 || 10 || 1,281 || 10 || 1,5 || 10 || 1,8 || 76 || 10,901 
 Sub-total for specific objective N°3   || 29 || 13,059 || 33 || 13,365 || 33 || 13,671 || 29 || 13,875 || 30 || 14,181 || 28 || 14,486 || 28 || 15,098 || 210 || 97,735 
 SPECIFIC OBJECTIVE No 4: Provide Union and national organisations with financial support to step up their capacity to develop, promote and support the implementation of Union employment and social policy and working conditions legislation 
 Support to key EU-level networks whose activities are linked to the implementation of the programme's objectives (Framework partnership agreements) || Grants (running costs of networks) || 0,71 || 14 || 9 || 14 || 9,3 || 14 || 9,5 || 14 || 9,8 || 14 || 10 || 14 || 10,249 || 14 || 11 || 98 || 68,849 
 Support to public authorities, civil society organisations and other relevant actors (ex. employment services) following publication of calls for proposals || Grants for projects || 0,6 || 16 || 8,927 || 16 || 9,051 || 16 || 9,276 || 16 || 9,249 || 16 || 9,472 || 16 || 9,645 || 16 || 9,775 || 112 || 65,395 
 Capacity building of microcredit providers || Exchanges of good practices, training, consultancy and rating || 0,06 || 20 || 1,2 || 20 || 1,224 || 20 || 1,248 || 20 || 1,273 || 20 || 1,299 || 20 || 1,325 || 20 || 1,341 || 140 || 8,91 
 Sub-total for specific objective N°4 || 50 || 19,127 || 50 || 19,575 || 50 || 20,024 || 50 || 20,322 || 50 || 20,771 || 50 || 21,219 || 50 || 22,116 || 350 || 143,154 
 SPECIFIC OBJECTIVE No 5: Ensure that job vacancies and applications, and any related information are transparent for the potential applicants and the employers 
 Development of the EURES Website and Help-desk and the Job Mobility Portals. || CV and vacancy database of the job mobility portal || 1,5 || 4 || 6,000 || 4 || 6,000 || 4 || 6,000 || 4 || 6,000 || 4 || 6,000 || 4 || 6,000 || 4 || 6,000 || 28 || 42 
 Support of Employment services with a view to the development of European labour markets open and accessible to all through: training & networking of EURES, information and communication activities and organisation of the Job Days || Training s, Coordination meetings, Training Working group meetings, Working party meetings, Communication campaigns, contribution to the organisation of job fairs || 1,4 || 3 || 3,019 || 3 || 3,439 || 3 || 3,829 || 3 || 4,129 || 3 || 4,549 || 3 || 4,999 || 3 || 5,899 || 21 || 29,863 
 Sub-total for specific objective N°5 || 7 || 9,019 || 7 || 9,439 || 7 || 9,829 || 7 || 10,129 || 7 || 10,549 || 7 || 10,999 || 7 || 11,899 || 49 || 71,863 
 SPECIFIC OBJECTIVE No 6: Develop services for the recruitment and placing of workers in employment through the clearance of job vacancies and applications at European level   
 Placing of workers in employment through the clearence of vacancies and applications for employment at European level, including actions to place young people into employment || Number of young workers placed in EU Member States other than their country of residence || 3175 || 3000 || 9,525 || 3000 || 9,525 || 3000 || 9,525 || 3000 || 9,525 || 3000 || 9,525 || 3000 || 9,525 || 3000 || 9,525 || 21000 || 66,675 
 Sub-total for specific objective N°6 || 66,675 
 SPECIFIC OBJECTIVE No 7 Increase access to, and the availability of, microfinance 
 Microloans || Volume of microloans provided (M€) || 0,002 || 5657 || 11,314 || 5837 || 11,674 || 5972 || 11,944 || 6015 || 12,030 || 6074 || 12,148 || 6134 || 12,268 || 6269 || 12,538 || 41958 || 83,916 
 Sub-total for specific objective N°7 || 83,916 
 SPECIFIC OBJECTIVE No 8: Build up the institutional capacity of microcredit providers 
 Funding for building up capacities through grants, loans and equity investments || No of microcredit providers supported || 0,203 || 4 || 0,812 || 5 || 1,015 || 5 || 1,015 || 6 || 1,218 || 7 || 1,421 || 7 || 1,421 || 8 || 1,62 || 42 || 8,522 
 Sub-total for specific objective N°8 || 8,522 
 SPECIFIC OBJECTIVE No 9: Support the development of social enterprises 
 Loans, equity for social entreprises || No of social enterprises that obtained loans / equity || 0,12 || 105 || 12,600 || 105 || 12,600 || 107 || 12,840 || 108 || 12,960 || 110 || 13,200 || 114 || 13,680 || 120 || 14,400 || 769 || 92,28 
 Sub-total for specific objective N°9 || 92,28 
 TOTAL COST (operational appropriations, without allocation of the 5% reserve) ||   || 97,682 ||   || 99,881 ||   || 101,879 ||   || 103,478 ||   || 105,677 ||   || 108,062 ||   || 112,825 ||   || 877,41 

3.2.3.          
Estimated impact on appropriations of an
administrative nature
3.2.3.1.    
Summary 

–     
¨  The proposal/initiative does not require the use of administrative
appropriations 
–     
þ  The proposal/initiative requires the use of administrative
appropriations, as explained below:
EUR million (to 3
decimal places)
   || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL 
 HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   
 Human resources || 14.6 || 14.6 || 14.6 || 14.6 || 14.6 || 14.6 || 14.6 || 102,2 
 Other administrative expenditure || 1.42 || 1.42 || 1.42 || 1.42 || 1.42 || 1.42 || 1.42 || 9.94 
 Subtotal HEADING 5 of the multiannual financial framework || 16.02 || 16.02 || 16.02 || 16.02 || 16.02 || 16.02 || 16.02 || 112.14 
 Outside HEADING 5[31] of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   
 Human resources ||   ||   ||   ||   ||   ||   ||   ||   
 Other expenditure of an administrative nature || 3.567 || 3.567 || 3.567 || 3.567 || 3.567 || 3.567 || 3.567 || 24.969 
 Subtotal outside HEADING 5 of the multiannual financial framework || 3.567 || 3.567 || 3.567 || 3.567 || 3.567 || 3.567 || 3.567 || 24.969 
 TOTAL || 19.587 || 19.587 || 19.587 || 19.587 || 19.587 || 19.587 || 19.587 || 137.109. 

3.2.3.2.    
 Estimated requirements of human resources 

–     
¨  The proposal/initiative does not require the use of human
resources 
–     
þ  The proposal/initiative requires the use of human resources, as
explained below:
Estimate to be expressed in full time
equivalent units without decimal place
 ||   || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 
  Establishment plan posts (officials and temporary agents) || 
 || 04 01 01 01 (Headquarters and Commission’s Representation Offices) || 109 || 109 || 109 || 109 || 109 || 109 || 109 
 || XX 01 01 02 (Delegations) ||   ||   ||   ||   ||   
 || XX 01 05 01 (Indirect research) ||   ||   ||   ||   ||   
 || 10 01 05 01 (Direct research) ||   ||   ||   ||   ||   
 ||  External personnel (in Full Time Equivalent unit: FTE)[32] || 
 || 04 01 02 01 (CA, INT, SNE from the ‘global envelope’) || 11 || 11 || 11 || 11 || 11 || 11 || 11 
 || XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) ||   ||   ||   ||   ||   
 || XX 01 04 yy [33] || - at Headquarters[34] ||   ||   ||   ||   ||   
 || - in delegations ||   ||   ||   ||   ||   
 || XX 01 05 02 (CA, INT, SNE - Indirect research) ||   ||   ||   ||   ||   
 || 10 01 05 02 (CA, INT, SNE - Direct research) ||   ||   ||   ||   ||   
 || Other budget lines (specify) ||   ||   ||   ||   ||   
 || TOTAL || 120 || 120 || 120 || 120 || 120 || 120 || 120 
XX is the
policy area or budget title concerned.
The needs for human and administrative
resources shall be covered within the allocation already granted for managing
this action and/or redeployed within the DG, complemented as the case may be by
any additional allocation that might be granted to the managing DG in the
framework of the annual allocation procedure in the light of budgetary
constraints.
Description of
tasks to be carried out:
 Officials and temporary agents ||   
 External personnel ||   

3.2.4.          
Compatibility with the current multiannual
financial framework 

–     
þ  Proposal/initiative is compatible with the current multiannual
financial framework.
–     
¨  Proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.
Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.
–     
¨  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[35].
Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.

3.2.5.          
Third-party contributions 

–     
The proposal/initiative does not provide for
co-financing by third parties 
–     
The proposal/initiative provides for the
co-financing estimated below:
Appropriations in EUR million (to 3 decimal places)
   || Year N || Year N+1 || Year N+2 || Year N+3 || … enter as many years as necessary to show the duration of the impact (see point 1.6) || Total 
 Specify the co-financing body ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations cofinanced ||   ||   ||   ||   ||   ||   ||   ||   

3.3.                
Estimated impact on revenue 

–     
þ  Proposal/initiative has no financial impact on revenue.
–     
¨  Proposal/initiative has the following financial impact:
¨         on own resources 
¨         on miscellaneous revenue 
EUR million (to 3 decimal places)
 Budget revenue line: || Appropriations available for the ongoing budget exercise || Impact of the proposal/initiative[36] 
 Year N || Year N+1 || Year N+2 || Year N+3 || … insert as many columns as necessary in order to reflect the duration of the impact (see point 1.6) 
 Article …………. ||   ||   ||   ||   ||   ||   ||   ||   
For miscellaneous
assigned revenue, specify the budget expenditure line(s) affected.
-
Specify the method for
calculating the impact on revenue.
-
[1]               Add reference.
[2]               OJ C , , p. .
[3]               OJ C , , p. .
[4]               COM(2011) 500.
[5]               OJ L 315, 15.11.2006, p. 1. 
[6]               OJ L 141,
27.5.2011, p. 1. 
[7]               OJ L 5,
10.1.2003, p. 16. 
[8]               OJ L 87, 7.4.2010, p. 1.
[9]               Council Decision 2010/707/EU of 21 October 2010 on
guidelines for the employment policies of the Member States (OJ L 308,
24.11.2010, p. 46).
[10]             COM(2007) 708, 13.11.2007.
[11]             COM(2011) XXX 
[12]             OJ L 55, 28.2.2011, p. 13.
[13]             OJ L 124, 20.5.2003, p. 36.
[14]             In current prices.
[15]             OJ L XXX, XX.XX.2012, p. XX.
[16]             OJ L 312, 23.12.1995, p. 1.
[17]             OJ L 292, 15.11.1996, p. 2.
[18]             OJ L 114, 30.4.2002, p. 6. 
[19]             OJ L 005, 10.01.2009, p. 16.
[20]             ABM: activity-based management; ABB: activity-based
budgeting.
[21]             Evaluation of the Social OMC,
2011; Study on Stakeholders’ Involvement in the
Implementation of the Social OMC, 2010.
[22]             To be measured as the estimated
share of budget allocated to generation of the said type of knowledge.
[23]             Capacity is understood here as: knowledge relevant to
policy making and advocacy; skills and ability to actively and effectively
advocate them; (in case of organisation) improved internal organisation (incl.
improved strategic planning and performance management).
[24]             Evers and Jung / EMN, EIF Market
studies on micro lending in the European Union: capacity building and policy
recommendations, March 2009. According to the study, institutional capacity
encompasses vision and strategy, funding, human resources, operational
management and systems and infrastructure.
[25]             OJ L 312, 23.12.1995, p. 1.
[26]             OJ L 292, 15.11.1996, p. 2.
[27]             DA= differentiated appropriations / DNA=
non-differentiated appropriations.
[28]             EFTA: European Free Trade Association. 
[29]             Candidate countries and, where applicable, potential
candidate.
[30]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).
[31]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former ‘BA’ lines), indirect research, direct research.
[32]             CA= contract agent; INT= agency staff ("Intérimaire");
JED= "jeune expert en délégation" (young experts in
delegations); LA= local agent; SNE= seconded national expert.
[33]             Under the ceiling for external personnel from operational
appropriations (former ‘BA’ lines).
[34]             Essentially, for Structural Funds, European
Agricultural Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).
[35]             See points 19 and 24 of the Interinstitutional
Agreement.
[36]             As regards traditional own resources (customs duties
and sugar levies), the amounts indicated must be net amounts, i.e. gross
amounts after deduction of 25% for collection costs.