Article 91 Payment applications
1. The Member State shall submit a maximum of six payment applications per programme, per Fund and per accounting year. Every year, one payment application may be submitted at any time in each time period between the following dates: 28 February, 31 May, 31 July, 31 October, 30 November and 31 December. The last payment application submitted by 31 July shall be deemed to be the final payment application for the accounting year that has ended 30 June. The first subparagraph shall not apply to Interreg programmes. 2. Payment applications shall be admissible only where the latest assurance package due, as referred to in Article 98, has been submitted. 3. Payment applications shall be submitted to the Commission in accordance with the template set out in Annex XXIII and include, for each priority and, where applicable, by category of region: (a) the total amount of eligible expenditure incurred by beneficiaries and paid in implementing operations linked to specific objectives for which enabling conditions are fulfilled and operations linked to specific objectives for which enabling conditions are not fulfilled but contribute to the fulfilment of enabling conditions, as entered in the system of the body carrying out the accounting function; the amount for technical assistance calculated in accordance with point (b) of Article 36(5), where applicable; (c) the total amount of public contribution made or to be made linked to specific objectives for which enabling conditions are fulfilled and operations linked to specific objectives for which enabling conditions are not fulfilled but contribute to the fulfilment of enabling conditions, as entered in the system of the body carrying out the accounting function; (d) the total amount of eligible expenditure incurred by beneficiaries and paid in implementing operations linked to specific objectives for which enabling conditions are not fulfilled, with the exception of operations that contribute to the fulfilment of enabling conditions, as entered in the system of the body carrying out the accounting function. By way of derogation from point (a) of paragraph 3, the following shall apply: By way of derogation from paragraph 3, in the case of State aid, the payment application may include advances paid to the beneficiary by the body granting the aid under the following cumulative conditions: (a) those advances are subject to a guarantee provided by a bank or other financial institution established in the Member State or be covered by a facility provided as a guarantee by a public entity or by the Member State; (b) those advances do not exceed 40 % of the total amount of the aid to be granted to a beneficiary for a given operation; (c) those advances are covered by expenditure paid by beneficiaries in implementing the operation and supported by receipted invoices or accounting documents of equivalent probative value at the latest within 3 years following the year of the payment of the advance or on 31 December 2029, whichever is earlier, failing which the next payment application shall be corrected accordingly. Each payment application which includes advances of this type shall separately disclose the total amount paid from the programme as advances, the amount which has been covered by expenditure paid by beneficiaries within 3 years of the payment of the advance in accordance with point (c), and the amount which has not been covered by expenditure paid by beneficiaries and for which the 3-year period has not yet elapsed. 6. By way of derogation from point (c) of paragraph 3 of this Article, in the case of aid schemes under Article 107 TFEU, the public contribution corresponding to the expenditure included in a payment application shall have been paid to the beneficiaries by the body granting the aid.
Article 92 Specific elements for financial instruments in payment applications
2. Where financial instruments are implemented in accordance with Article 59(2), payment applications that include expenditure for financial instruments shall be submitted in accordance with the following conditions: (a) the amount included in the first payment application shall have been paid to the financial instruments and may be up to 30 % of the total amount of programme contributions committed to the financial instruments under the relevant funding agreement, in accordance with the relevant priority and category of region, where applicable; (b) the amount included in subsequent payment applications submitted during the eligibility period shall include the eligible expenditure as referred to in Article 68(1). 3. The amount included in the first payment application, referred to in point (a) of paragraph 2, shall be cleared from Commission accounts no later than the final accounting year. It shall be disclosed separately in payment applications.
Article 93 Common rules for payments
1. Without prejudice to Article 15(5) and (6) and subject to available funding, the Commission shall make interim payments within 60 days of the date on which a payment application is received by the Commission. 2. Each payment shall be attributed to the earliest open budget commitment of the Fund and category of region concerned. The Commission shall reimburse as interim payments 95 % of the amounts included in the payment application, which results from applying the co-financing rate for each priority to the total eligible expenditure or to the public contribution, as appropriate. The Commission shall determine the remaining amounts to be reimbursed or to be recovered when calculating the balance of the accounts in accordance with Article 100. 3. The support from the Funds to a priority in interim payments shall not be higher than the amount of the support from the Funds for the priority laid down in the decision approving the programme. 4. Where the Union contribution takes any of the forms listed in Article 51, the Commission shall not pay more than the amount requested by the Member State. The support from the Funds to a priority in the payment of the balance of the final accounting year shall not exceed any of the following amounts: (a) the public contribution declared in payment applications; (b) support from the Funds paid or to be paid to beneficiaries; (c) the amount requested by the Member State. Amounts reimbursed pursuant to Article 36(5) shall not be taken into account for the purposes of calculating the ceiling set out in point (b) of the first subparagraph of this Article. On the request of a Member State, interim payments may be increased by 10 % above the co-financing rate applicable to each priority for the Funds, if a Member State meets one of the following conditions after 1 July 2021: (a) the Member State receives a loan from the Union pursuant to Council Regulation (EU) No 407/2010 ( 20 ); (b) the Member State receives medium-term financial assistance under the European Stability Mechanism as established by the Treaty establishing the European Stability Mechanism of 2 February 2012 or as referred to in Regulation (EC) No 332/2002 conditional on the implementation of a macroeconomic adjustment programme; (c) financial assistance is made available to the Member State conditional on the implementation of a macroeconomic adjustment programme as specified in Regulation (EU) No 472/2013. The increased rate, which may not exceed 100 %, shall apply to requests for payments until the end of the calendar year in which the related financial assistance comes to an end. 7. Paragraph 6 shall not apply to Interreg programmes.
Article 94 Union contribution based on unit costs, lump sums and flat rates
1. The Commission may reimburse the Union contribution to a programme on the basis of unit costs, lump sums and flat rates in accordance with Article 51, either based on the amounts and rates approved by a decision in accordance with paragraph 3 of this Article or set out in the delegated act referred to in paragraph 4 of this Article. 2. In order to make use of a Union contribution to the programme based on unit costs, lump sums and flat rates, Member States shall submit a proposal to the Commission in accordance with the templates set out in Annexes V and VI, as part of the programme submission or of a request for its amendment. The amounts and rates proposed by the Member State shall be established on the basis of the following and assessed by the audit authority: a fair, equitable and verifiable calculation method based on any of the following: (i) statistical data, other objective information or an expert judgement; (ii) verified historical data; (iii) the application of usual cost accounting practices; (b) draft budgets; (c) the rules on corresponding unit costs, lump sums and flat rates applicable in Union policies for a similar type of operation; (d) the rules on corresponding unit costs, lump sums and flat rates applied under schemes for grants funded entirely by the Member State for a similar type of operation. 3. The decision approving the programme or its amendment shall set out the types of operations covered by the reimbursement based on unit costs, lump sums and flat rates, the definition and the amounts covered by those unit costs, lump sums and flat rates, and the methods for adjustment of the amounts. Member States shall reimburse beneficiaries for the purposes of this Article. That reimbursement may take any form of support. Commission and Member State audits and management verifications carried out by Member States shall exclusively aim at verifying that the conditions for reimbursement by the Commission have been fulfilled. 4. The Commission is empowered to adopt a delegated act in accordance with Article 114 to supplement this Article by defining at Union level unit costs, lump sums, flat rates, their amounts and adjustment methods in the ways referred to in points (a) to (d) of the second subparagraph of paragraph 2 of this Article. 5. This Article shall not apply to the Union contribution for technical assistance reimbursed pursuant to point (e) of Article 51.
Article 95 Union contribution based on financing not linked to costs
The Commission may reimburse the Union contribution to all or parts of a priority of programmes based on financing not linked to costs in accordance with Article 51, either based on the amounts approved by a decision referred to in paragraph 2 of this Article or set out in the delegated act referred to in paragraph 4 of this Article. In order to make use of a Union contribution to the programme based on financing not linked to costs, Member States shall submit a proposal to the Commission in accordance with the templates set out in Annexes V and VI, as part of the programme or of a request for its amendment. The proposal shall contain the following information: (a) identification of the priority concerned and the overall amount covered by the financing not linked to costs; (b) a description of the part of the programme and the type of operations covered by the financing not linked to costs; (c) a description of the conditions to be fulfilled or of the results to be achieved and a timeline; (d) intermediate deliverables triggering reimbursement by the Commission; (e) measurement units; (f) the schedule for reimbursement by the Commission and related amounts linked to the progress in the fulfilment of conditions or achievement of results; (g) the arrangements for verification of the intermediate deliverables and of the fulfilment of conditions or achievement of results; (h) the methods for adjustment of the amounts, where applicable; (i) the arrangements to ensure the audit trail in accordance with Annex XIII demonstrating the fulfilment of conditions or achievement of results; (j) the envisaged type of reimbursement method used to reimburse the beneficiary or beneficiaries within the priority or parts of a priority of programmes concerned by this Article. 2. The decision approving the programme or the request for its amendment shall set out all the elements listed in paragraph 1. 3. Member States shall reimburse beneficiaries for the purposes of this Article. That reimbursement may take any form of support. Commission and Member State audits and management verifications carried out by Member States shall exclusively aim at verifying that the conditions for reimbursement by the Commission have been fulfilled or the results have been achieved. 4. The Commission is empowered to adopt a delegated act in accordance with Article 114 to supplement this Article by establishing amounts for Union-level financing not linked to costs by type of operation, the methods for adjustment of the amounts and the conditions to be fulfilled or the results to be achieved.
Article 96 Interruption of the payment deadline
1. The Commission may interrupt the payment deadline, except for pre-financing, for a maximum period of 6 months where any of the following conditions is met: (a) there is evidence to suggest a serious deficiency for which corrective measures have not been taken; (b) the Commission has to carry out additional verifications following receipt of information that expenditure in a payment application may be linked to an irregularity. The Commission may interrupt the payment deadline, except for pre-financing, for a maximum period of 6 months where any of the following conditions is met: (a) there is evidence to suggest a serious deficiency for which corrective measures have not been taken; (b) the Commission has to carry out additional verifications following receipt of information that expenditure in a payment application may be linked to an irregularity. 2. The Member State may agree to extend the interruption period by 3 months. 3. The Commission shall limit the interruption to the part of the expenditure affected by the elements referred to in paragraph 1, unless it is not possible to identify the part of the expenditure affected. The Commission shall inform the Member State and the managing authority in writing of the reason for interruption and shall request them to remedy the situation. The Commission shall end the interruption as soon as the measures remedying the elements referred to in paragraph 1 have been taken. 4. The Fund-specific rules for the EMFAF may lay down specific bases for interruption of payments linked to non-compliance with rules applicable under the Common Fisheries Policy.
Article 97 Suspension of payments
The Commission may suspend all or part of payments, except for pre-financing, after having given the Member State the opportunity to present its observations, if any of the following conditions is met: (a) the Member State has failed to take the necessary action to remedy the situation giving rise to an interruption under Article 96; (b) there is a serious deficiency; (c) the expenditure in payment applications is linked to an irregularity that has not been corrected; (d) there is a reasoned opinion by the Commission in respect of an infringement procedure under Article 258 TFEU on a matter that puts at risk the legality and regularity of expenditure. 2. The Commission shall end the suspension of all or part of payments when the Member State has taken the measures remedying the elements referred to in paragraph 1. 3. The Fund-specific rules for the EMFAF may lay down specific bases for suspension of payments linked to non-compliance with rules applicable under the Common Fisheries Policy.
Article 98 Content and submission of accounts
For each accounting year for which payment applications have been submitted, the Member State shall submit to the Commission by 15 February, the following documents (‘the assurance package’) which shall cover the preceding accounting year: (a) the accounts in accordance with the template set out in Annex XXIV; the management declaration referred to in point (f) of Article 74(1) in accordance with the template set out in Annex XVIII; the annual audit opinion referred to in point (a) of Article 77(3) in accordance with the template set out in Annex XIX; the annual control report referred to in point (b) of Article 77(3) in accordance with the template set out in Annex XX. 2. The deadline referred to in paragraph 1 may exceptionally be extended by the Commission to 1 March, upon communication by the Member State concerned. The accounts shall include at the level of each priority and, where applicable, by fund and by category of region: (a) the total amount of eligible expenditure entered into the accounting systems of the body carrying out the accounting function which has been included in the final payment application for the accounting year and the total amount of the corresponding public contribution made or to be made linked to specific objectives for which enabling conditions are fulfilled and operations linked to specific objectives for which enabling conditions are not fulfilled but contribute to the fulfilment of enabling conditions; (b) the amounts withdrawn during the accounting year; (c) the amounts of public contribution paid to financial instruments; (d) for each priority, an explanation on any differences between the amounts declared pursuant to point (a) and the amounts declared in payment applications for the same accounting year. 4. The assurance package shall not concern the total amount of eligible expenditure incurred by beneficiaries and paid in implementing operations or the corresponding public contribution made or to be made linked to specific objectives for which enabling conditions are not fulfilled with the exception of operations that contribute to the fulfilment of enabling conditions. 5. The accounts shall not be admissible if Member States have not undertaken the necessary corrections to reduce the residual error rate on the legality and regularity of the expenditure included in the accounts to 2 % or below. 6. Member States shall in particular deduct from the accounts: (a) the irregular expenditure which has been subject to financial corrections in accordance with Article 103; (b) the expenditure which is subject to an ongoing assessment of its legality and regularity; (c) other amounts as necessary to reduce the residual error rate of the expenditure declared in the accounts to 2 % or below. The Member State may include expenditure under point (b) of the first subparagraph in a payment application in subsequent accounting years once its legality and regularity is confirmed. 7. The Member State may correct irregular amounts which it has detected after the submission of the accounts in which the amounts were included by making the corresponding adjustments for the accounting year in which the irregularity is detected, without prejudice to Article 104. 8. As part of the assurance package, the Member State shall submit for the last accounting year the final performance report referred to in Article 43 or the last annual performance report for the AMIF, the ISF or the BMVI.
Article 99 Examination of accounts
The Commission shall satisfy itself that the accounts are complete, accurate and true by 31 May of the year following the end of the accounting year unless Article 102 applies.
Article 100 Calculation of the balance
When the Commission determines the amount chargeable to the Funds for the accounting year and the consequent adjustments in relation to the payments to the Member State, it shall take into account: the amounts in the accounts referred to in point (a) of Article 98(3) and to which the co-financing rate for each priority is to be applied; (b) the total amount of interim payments made by the Commission during that accounting year; (c) for the ERDF, the ESF+, the Cohesion Fund, the JTF and the EMFAF, for the years 2021 and 2022, the amount of pre-financing. 2. Where there is an amount recoverable from the Member State, it shall be subject to a recovery order issued by the Commission which shall be executed, where possible, by offsetting against amounts due to the Member State in subsequent payments to the same programme. Such a recovery shall not constitute a financial correction and shall not reduce support from the Funds to the programme. The amount recovered shall constitute assigned revenue in accordance with Article 21(3) of the Financial Regulation.
Article 101 Procedure for the examination of accounts
1. The procedure set out in Article 102 shall apply in either of the following cases: (a) the audit authority has provided a qualified or adverse audit opinion due to reasons linked to the completeness, accuracy and veracity of the accounts; (b) the Commission has evidence putting into question the reliability of an unqualified audit opinion. The procedure set out in Article 102 shall apply in either of the following cases: (a) the audit authority has provided a qualified or adverse audit opinion due to reasons linked to the completeness, accuracy and veracity of the accounts; (b) the Commission has evidence putting into question the reliability of an unqualified audit opinion. 2. In all other cases, the Commission shall calculate the amounts chargeable to the Funds in accordance with Article 100 and make the respective payments or recoveries before 1 July. That payment or recovery shall constitute the acceptance of accounts.
Article 102 Contradictory procedure for the examination of accounts
1. If the audit authority provides an audit opinion which is qualified or adverse due to reasons linked to the completeness, accuracy and veracity of the accounts, the Commission shall request the Member State to revise these accounts and to resubmit the documents referred to in Article 98(1) within 1 month. Where by the time limit set out in the first subparagraph: (a) the audit opinion is unqualified, Article 100 shall apply and the Commission shall pay any additional amount due or proceed to a recovery within 2 months; (b) the audit opinion is still qualified or documents have not been re-submitted by the Member State, paragraphs 2, 3 and 4 shall apply. 2. If the audit opinion remains qualified due to reasons linked to the completeness, accuracy and veracity of the accounts or if the audit opinion remains unreliable, the Commission shall inform the Member State on the amount chargeable to the Funds for the accounting year. 3. Where the Member State agrees with the amount referred to in paragraph 2 of this Artcile within 1 month, the Commission shall pay within 2 months any additional amount due or proceed to a recovery in accordance with Article 100. 4. Where the Member State does not agree with the amount referred to in paragraph 2 of this Article, the Commission shall establish the amount chargeable to the Funds for the accounting year. Such an act shall not constitute a financial correction and shall not reduce support from the Funds to the programme. The Commission shall pay within 2 months any additional amount due or proceed to a recovery in accordance with Article 100. 5. With regard to the final accounting year, the Commission shall pay or recover the annual balance of the accounts for programmes supported by the ERDF, the ESF+, the Cohesion Fund, the JTF and the EMFAF no later than 2 months after the date of acceptance of the final performance report as referred to in Article 43.
Article 103 Financial corrections by Member States
1. Member States shall protect the Union budget and apply financial corrections by cancelling all or part of the support from the Funds to an operation or programme where expenditure declared to the Commission is found to be irregular. 2. Financial corrections shall be recorded in the accounts for the accounting year in which the cancellation is decided. 3. The support from the Funds cancelled may be reused by the Member State within the programme concerned except for an operation that was subject of that correction or, where a financial correction is made for a systemic irregularity, for any operation affected by the systemic irregularity. 4. The Fund-specific rules for the EMFAF may lay down specific bases for financial corrections by the Member States linked to non-compliance with rules applicable under the Common Fisheries Policy. 5. By way of derogation from paragraphs 1, 2 and 3, in operations comprising financial instruments, a contribution cancelled in accordance with this Article, as a result of an individual irregularity, may be reused within the same operation under the following conditions: (a) where the irregularity that gives rise to the cancellation of the contribution is detected at the level of the final recipient, only for other final recipients within the same financial instrument; (b) where the irregularity that gives rise to the cancellation of the contribution is detected at the level of the body implementing the specific fund, where a financial instrument is implemented through a structure with a holding fund, only for other bodies implementing specific funds. By way of derogation from paragraphs 1, 2 and 3, in operations comprising financial instruments, a contribution cancelled in accordance with this Article, as a result of an individual irregularity, may be reused within the same operation under the following conditions: (a) where the irregularity that gives rise to the cancellation of the contribution is detected at the level of the final recipient, only for other final recipients within the same financial instrument; (b) where the irregularity that gives rise to the cancellation of the contribution is detected at the level of the body implementing the specific fund, where a financial instrument is implemented through a structure with a holding fund, only for other bodies implementing specific funds. Where that irregularity that gives rise to the cancellation of the contribution is detected at the level of the body implementing the holding fund, or at the level of the body implementing the specific fund where a financial instrument is implemented through a structure without a holding fund, the contribution cancelled shall not be reused within the same operation. Where a financial correction is made for a systemic irregularity, the contribution cancelled shall not be reused for any operation affected by the systemic irregularity. 6. The bodies implementing financial instruments shall reimburse to Member States programme contributions affected by irregularities, together with interest and any other gains generated by these contributions. The bodies implementing financial instruments shall not reimburse to Member States the amounts referred to in the first subparagraph provided that those bodies demonstrate for a given irregularity that the following cumulative conditions are fulfilled: (a) the irregularity occurred at the level of final recipients or, in the case of a holding fund, at the level of bodies implementing specific funds or final recipients; (b) the bodies implementing financial instruments carried out their obligations, in relation to the programme contributions affected by the irregularity, in accordance with applicable law and acted with the degree of professional care, transparency and diligence expected from a professional body experienced in implementing financial instruments; (c) the amounts affected by the irregularity could not be recovered notwithstanding that the bodies implementing financial instruments pursued all applicable contractual and legal measures with due diligence.
Article 104 Financial corrections by the Commission
The Commission shall make financial corrections by reducing support from the Funds to a programme where it concludes that: (a) there is a serious deficiency which has put at risk the support from the Funds already paid to the programme; (b) expenditure contained in accepted accounts is irregular and was not detected and reported by the Member State; (c) the Member State has not complied with its obligations under Article 97 prior to the opening of the financial correction procedure by the Commission. Where the Commission applies flat-rate or extrapolated financial corrections, this shall be carried out in accordance with Annex XXV. 2. Before taking a decision on a financial correction, the Commission shall inform the Member State of its conclusions and give the Member State the opportunity to present, within 2 months, its observations and to demonstrate that the actual extent of irregularity is less than the Commission’s assessment. The deadline can be extended if mutually agreed. 3. Where the Member State does not accept the conclusions of the Commission, the Member State shall be invited to a hearing by the Commission, in order to ensure that all relevant information and observations are available to form the basis for Commission conclusions on the application of the financial correction. 4. The Commission shall decide on a financial correction taking into account the extent, the frequency and financial implications of the irregularities or serious deficiencies, by means of an implementing act within 10 months of the date of the hearing or of the submission of additional information as required by the Commission. When deciding on a financial correction, the Commission shall take account of all information and observations submitted. Where a Member State agrees to the financial correction for cases referred to in points (a) and (c) of the first subparagraph of paragraph 1 before the adoption of the decision referred to in the first subparagraph of this paragraph, the Member State may reuse the amounts concerned. That possibility shall not apply to a case of a financial correction under point (b) of the first subparagraph of paragraph 1. 5. The Fund-specific rules for the EMFAF may lay down specific bases for financial corrections by the Commission linked to non-compliance with rules applicable under the Common Fisheries Policy. 6. The Fund-specific rules for the JTF may lay down specific bases for financial corrections by the Commission linked to the under-achievement of targets established for the JTF.
Article 105 Decommitment principles and rules
1. The Commission shall decommit any amount in a programme which has not been used for pre-financing, in accordance with Article 90, or for which a payment application has not been submitted, in accordance with Articles 91 and 92, by 31 December of the third calendar year following the year of the budget commitments for the years 2021 to 2026. 2. The part of commitments still open on 31 December 2029 shall be decommitted if the assurance package and the final performance report for programmes supported by the ERDF, the ESF+, the Cohesion Fund, the JTF and the EMFAF have not been submitted to the Commission by the time limit set out in Article 43(1).
Article 106 Exceptions to the decommitment rules
1. The amount concerned by decommitment shall be reduced by the amounts equivalent to that part of the budget commitment for which: (a) the operations are suspended by a legal proceeding or by an administrative appeal having suspensory effect; or (b) it has not been possible to make a payment application for reasons of force majeure seriously affecting implementation of all or part of the programme. The amount concerned by decommitment shall be reduced by the amounts equivalent to that part of the budget commitment for which: (a) the operations are suspended by a legal proceeding or by an administrative appeal having suspensory effect; or (b) it has not been possible to make a payment application for reasons of force majeure seriously affecting implementation of all or part of the programme. The national authorities claiming force majeure shall demonstrate the direct consequences of the force majeure on the implementation of all or part of the programme. 2. By 31 January, the Member State shall send to the Commission information on the exceptions referred to in points (a) and (b) of the first subparagraph of paragraph 1 for the amount to be declared by 31 December of the preceding year.
Article 107 Procedure for decommitment
1. On the basis of the information it has received as of 31 January, the Commission shall inform the Member State of the amount of the decommitment resulting from that information. 2. The Member State shall have 2 months to agree to the amount to be decommitted or to submit its observations. 3. By 30 June, the Member State shall submit to the Commission an amended financing plan reflecting, for the calendar year concerned, the reduced amount of support over one or more priorities of the programme. For programmes supported by more than one Fund, the amount of support shall be reduced by Fund proportionately to the amounts concerned by the decommitment that had not been used in the calendar year concerned. In the absence of such a submission, the Commission shall amend the financing plan by reducing the contribution from the Funds for the calendar year concerned. That reduction shall be allocated to each priority proportionately to the amounts concerned by the decommitment that had not been used in the calendar year concerned. 4. The Commission shall amend the decision approving the programme no later than 31 October.
Article 108 Geographical coverage of support for the Investment for jobs and growth goal
1. The ERDF, the ESF+ and the Cohesion Fund shall support the Investment for jobs and growth goal in all regions corresponding to level 2 of the common classification of territorial units for statistics (‘NUTS level 2 regions’) established by Regulation (EC) No 1059/2003 as amended by Regulation (EU) 2016/2066. 2. Resources from the ERDF and ESF+ for the Investment for jobs and growth goal shall be allocated among the following three categories of NUTS level 2 regions: (a) less developed regions, whose GDP per capita is less than 75 % of the average GDP per capita of the EU-27 (‘less developed regions’); (b) transition regions, whose GDP per capita is between 75 % and 100 % of the average GDP per capita of the EU-27 (‘transition regions’); (c) more developed regions, whose GDP per capita is above 100 % of the average GDP per capita of the EU-27 (‘more developed regions’). The classification of regions under one of the three categories of region shall be determined on the basis of how the GDP per capita of each region, measured in purchasing power standards (PPS) and calculated on the basis of Union figures for the period 2015-2017, relates to the average GDP per capita of the EU-27 for the same reference period. 3. The Cohesion Fund shall support those Member States whose gross national income (GNI) per capita, measured in PPS and calculated on the basis of Union figures for the period 2015-2017, is less than 90 % of the average GNI per capita of the EU-27 for the same reference period. 4. The Commission shall adopt a decision, by means of implementing act, setting out the list of regions fulfilling the criteria of one of the three categories of region and of Member States fulfilling the criteria of paragraph 3. That list shall be valid from 1 January 2021 to 31 December 2027.
Article 109 Resources for economic, social and territorial cohesion
1. The resources for economic, social and territorial cohesion available for budgetary commitment for the 2021-2027 period under the MFF shall be EUR 330 234 776 621 in 2018 prices for the ERDF, the ESF+ and the Cohesion Fund, and EUR 7 500 000 000 in 2018 prices for the JTF. The resources referred to in the first subparagraph shall be completed by an amount of EUR 10 000 000 000 in 2018 prices for measures referred to in Article 1(2) of Council Regulation (EU) 2020/2094 ( 21 ) for the purposes of the JTF Regulation. This amount shall constitute external assigned revenue for the purpose of Article 21(5) of the Financial Regulation. For the purposes of programming and subsequent inclusion in the budget of the Union, amounts referred to in the first and second subparagraphs shall be indexed at 2 % per year. 2. The Commission shall adopt a decision, by means of implementing act, setting out the annual breakdown of the global resources for the ERDF, the ESF+ and the Cohesion Fund by Member State under the Investment for jobs and growth goal and, where applicable, by category of region, in accordance with the methodologies set out in Annex XXVI. That decision shall also set out the annual breakdown of the global resources per Member State under the European territorial cooperation goal (Interreg). 3. 0,35 % of the resources referred to in the first and second subparagraphs of paragraph 1, after the deduction of the support to the CEF referred to in Article 110(3), shall be allocated to technical assistance at the initiative of the Commission.
Article 110 Resources for the Investment for jobs and growth goal and for the European territorial cooperation goal (Interreg)
1. Resources for the Investment for jobs and growth goal under the MFF shall amount to 97,6 % of the global resources (i.e. a total of EUR 329 684 776 621 ) and shall be allocated as follows: (a) 61,3 % (i.e. a total of EUR 202 226 984 629 ) for less developed regions; (b) 14,5 % (i.e. a total of EUR 47 771 802 082 ) for transition regions; (c) 8,3 % (i.e. a total of EUR 27 202 682 372 ) for more developed regions; (d) 12,9 % (i.e. a total of EUR 42 555 570 217 ) for Member States supported by the Cohesion Fund; (e) 0,6 % (i.e. a total of EUR 1 927 737 321 ) as additional funding for the outermost regions identified in Article 349 TFEU and the NUTS level 2 regions fulfilling the criteria laid down in Article 2 of Protocol No 6 to the 1994 Act of Accession; (f) 0,2 % (i.e. a total of EUR 500 000 000 ) for interregional innovation investments; (g) 2,3 % (i.e. a total of EUR 7 500 000 000 ) for the Just Transition Fund. 2. The amount of resources available for the ESF+ under the Investment for jobs and growth goal shall be EUR 87 319 331 844 . The amount of additional funding for the regions referred to in point (e) in paragraph 1 allocated to the ESF+ shall be EUR 472 980 447 . 3. The amount of support from the Cohesion Fund to be transferred to the CEF shall be EUR 10 000 000 000 . It shall be spent for transport infrastructure projects, taking into account the investment infrastructure needs of Member States and regions, by launching specific calls in accordance with the CEF Regulation exclusively in Member States eligible for funding from the Cohesion Fund. The Commission shall adopt an implementing act setting out the amount to be transferred from each Member State’s Cohesion Fund allocation to the CEF and determined on a pro rata basis for the whole period. The Cohesion Fund allocation of each Member State shall be reduced accordingly. The annual appropriations corresponding to the support from the Cohesion Fund referred to in the first subparagraph shall be entered in the relevant budget lines of the CEF as of the 2021 budgetary exercise. 30 % of the resources transferred to the CEF shall be available immediately after the transfer to all Member States eligible for funding from the Cohesion Fund to finance transport infrastructure projects in accordance with the CEF Regulation. Rules applicable for the transport sector under the CEF Regulation shall apply to the specific calls referred to in the first subparagraph. Until 31 December 2023, the selection of projects eligible for financing shall respect the national allocations under the Cohesion Fund with regard to 70 % of the resources transferred to the CEF. As of 1 January 2024, resources transferred to the CEF which have not been committed to a transport infrastructure project shall be made available to all Member States eligible for funding from the Cohesion Fund to finance transport infrastructure projects in accordance with the CEF Regulation. In order to support Member States which are eligible for funding from the Cohesion Fund and which might experience difficulties in designing projects that are of a sufficient maturity, quality, or both, and that have sufficient Union added value, particular attention shall be given to technical assistance which aims to strengthen the institutional capacity and the efficiency of public administrations and public services in relation to the development and implementation of projects listed in the CEF Regulation. The Commission shall do its utmost to enable Member States eligible for funding from the Cohesion Fund to attain, by the end of the 2021-2027 period, the highest possible absorption of the amount transferred to the CEF, including through the organisation of additional calls. Particular attention and support under the eighth and ninth subparagraph shall be given to those Member States whose GNI per capita, measured in PPS for the period 2015- 2017, is less than 60 % of the average GNI per capita of the EU-27. In respect of Member States whose GNI per capita, measured in PPS for the period 2015-2017, is less than 60 % of the average GNI per capita of the EU-27, 70 % of 70 % of the amount of money that those Member States have transferred to the CEF shall be guaranteed until 31 December 2024. 4. EUR 400 000 000 of the resources for the Investment for jobs and growth goal shall be allocated to the European Urban Initiative under direct or indirect management by the Commission. 5. EUR 175 000 000 of the ESF+ resources for the Investment for jobs and growth goal shall be allocated for transnational cooperation supporting innovative solutions under direct or indirect management. 6. The amount referred to in point (f) of paragraph 1 shall be allocated from the ERDF resources under the Investment for jobs and growth goal for interregional innovative investments under direct or indirect management. 7. Resources for the European territorial cooperation goal (Interreg) shall amount to 2,4 % of the global resources available for budgetary commitment from the Funds for the 2021-2027 period (i.e. a total of EUR 8 050 000 000 ). 8. The amount referred to in the second subparagraph of Article 109(1) shall be part of the resources for the Investments for jobs and growth goal.
Article 111 Transferability of resources
1. The Commission may accept a proposal by a Member State, in its submission of the Partnership Agreement or in the context of the mid-term review, for a transfer: (a) adding up to not more than 5 % of the initial allocations for less developed regions to transition regions or more developed regions and from transition regions to more developed regions; (b) from the allocations for more developed regions or transition regions to less developed regions and from more developed regions to transition regions. The Commission may accept a proposal by a Member State, in its submission of the Partnership Agreement or in the context of the mid-term review, for a transfer: (a) adding up to not more than 5 % of the initial allocations for less developed regions to transition regions or more developed regions and from transition regions to more developed regions; (b) from the allocations for more developed regions or transition regions to less developed regions and from more developed regions to transition regions. By way of derogation from point (a) of the first subparagraph, the Commission may accept an additional transfer of up to 10 % of the total allocations for less developed regions to transition regions or more developed regions within those Member States whose GNI per capita, measured in PPS for the period 2015- 2017, is less than 90 % of the average GNI per capita of the EU-27. Resources of any additional transfer shall be used to contribute to the policy objectives referred to in points (a) and (b) of Article 5(1). 2. The total allocations to each Member State in respect of the Investment for jobs and growth goal and the European territorial cooperation goal (Interreg) shall not be transferable between these goals. 3. In order to uphold the effective contribution of the Funds to the actions referred to in Article 5(2), and by way of derogation from paragraph 2 of this Article, the Commission may, in duly justified circumstances, and subject to the condition laid down in paragraph 4 of this Article, accept by means of an implementing act a proposal by a Member State in its first submission of the Partnership Agreement to transfer a part of its appropriations for the European territorial cooperation goal (Interreg) to the Investment for jobs and growth goal. 4. The share of the European territorial cooperation goal (Interreg) in the Member State making the proposal referred to in paragraph 3 shall be not less than 35 % of the total allocated to that Member State in respect of the Investment for jobs and growth goal and the European territorial cooperation goal (Interreg), and after transfer shall be not less than 25 % of that total.
Article 112 Determination of co-financing rates
1. The decision approving a programme shall fix the co-financing rate and the maximum amount of support from the Funds for each priority. 2. For each priority, the Commission decision shall set out whether the co-financing rate for the priority is to be applied to either of the following: (a) total contribution, including public and private contribution; (b) public contribution. For each priority, the Commission decision shall set out whether the co-financing rate for the priority is to be applied to either of the following: (a) total contribution, including public and private contribution; (b) public contribution. The co-financing rate for the Investment for jobs and growth goal at the level of each priority shall not be higher than: (a) 85 % for the less developed regions; 85 % for the less developed regions; (b) 70 % for transition regions that were classified as less developed regions for the 2014-2020 period; 70 % for transition regions that were classified as less developed regions for the 2014-2020 period; (c) 60 % for the transition regions; 60 % for the transition regions; (d) 50 % for more developed regions that were classified as transition regions or had a GDP per capita below 100 % for the 2014-2020 period; 50 % for more developed regions that were classified as transition regions or had a GDP per capita below 100 % for the 2014-2020 period; (e) 40 % for the more developed regions. 40 % for the more developed regions. The co-financing rates set out under point (a) of the first subparagraph shall also apply to the outermost regions , including the additional allocation for the outermost regions. The co-financing rate for the Cohesion Fund at the level of each priority shall not be higher than 85 %. The ESF+ Regulation may establish higher co-financing rates in accordance with Articles 10 and 14 of that Regulation. The co-financing rate, applicable to the region where the territory or territories identified in the territorial just transition plans are located, for the priority supported by the JTF shall not be higher than: (a) 85 % for less developed regions; 85 % for less developed regions; (b) 70 % for transition regions; 70 % for transition regions; (c) 50 % for more developed regions. 50 % for more developed regions. 4. The co-financing rate for Interreg programmes shall be no higher than 80 % except in cases where the Interreg Regulation establishes higher co-financing rates for Interreg strand D and for external cross-border cooperation programmes. 5. The maximum co-financing rates listed under paragraphs 3 and 4 shall be increased by ten percentage points for priorities entirely delivered through community-led local development. 6. Technical assistance measures implemented at the initiative of, or on behalf of, the Commission may be financed at the rate of 100 %.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The Russian war of aggression against Ukraine has brought a series of unexpected challenges for the European Union just when the Union and its Member States have been engaged in the recovery of our economies and societies after the COVID-19 pandemic. Since Russia’s unprovoked invasion of Ukraine on 24 February, the Union has received over 6.2 million Ukrainian nationals fleeing Russian aggression. The EU has reacted rapidly, supporting Member States and regions in managing this arrival of people by mobilising all available funding. However, with the rising number of arrivals, it is clear that further action is required. The special meeting of the European Council in May 2022 invited the Commission to “present new initiatives … within the Multiannual Financial Framework” to support the effort of providing protection to millions of refugees fleeing the war in Ukraine. In addition to providing support to Member States in the context of the inflow of displaced persons, the Commission has also been monitoring closely the on-going impact of Russia’s unprovoked invasion of Ukraine on the implementation of cohesion policy in particular. The consequences on infrastructure projects have been especially noted, both in terms of the availability and costs of raw materials and the availability of labour force. The European Parliament, the Council and regions have all raised concerns about the effect these issues may have on finalising the implementation of the 2014-2020 programmes and ensuring the start up of the new 2021-2027 programmes. Since 24 February, the Commission has already tabled a number of proposals, under Cohesion’s Action for Refugees in Europe (CARE), to ensure that all the funding available under the 2014-2020 cohesion policy and European Fund for the Most Deprived programmes are speedily mobilised to address the immediate challenges faced by the Member States and several of their eastern regions in particular, notably as regards those fleeing Russian aggression. These amendments have secured the possibility to mobilise available funding to address the immediate consequences of the Russian war of aggression against Ukraine, while allowing Member States to continue their efforts to ensure a green, digital and resilient recovery of their economies from the crisis resulting from the COVID-19 pandemic. The possibility to use the European Regional Development Fund (ERDF) and the European Social Fund (ESF) for operations addressing the migratory challenges resulting from the military aggression by Russia under the rules of the other fund enables the use of available resources for existing needs, without the need for a transfer. Furthermore, these operations are made eligible as from the date of the invasion, to allow support for all related needs. Moreover, a new unit cost has been introduced and reporting arrangements on participants have been simplified to reduce the administrative burden for both beneficiaries and Member State administrations in the context of addressing migratory challenges. Finally, the possibility to make use of up to 100% co-financing was extended for these measures also to the accounting year ending on 30 June 2022 in order to contribute to alleviating the burden on Member States’ public finances, and the substantial increase of pre-financing from REACT-EU resources provided Member States with liquidity needed to cover the most pressing needs. The consequences of the Russian military aggression have grown in scope and its impact has expanded. As a result, Member States are facing continuous substantial inflows of persons fleeing the Russian aggression. At the same time, some Member States are facing labour shortages and a scarcity of input materials in certain sectors. This situation comes on top of the consequences of the COVID-19 pandemic, notably the disruption of value chains, which challenges public budgets that were focused on the recovery of the economy, but also risks delaying investments, especially in infrastructure. While the measures already adopted have played a major role in supporting Member States and regions addressing the immediate effects of the war, it is clear that the evolving situation calls for additional action. In particular, increased flexibility will help optimise the use of the remaining 2014-2020 resources and allow a smoother phasing of delayed projects between 2014-2020 and 2021-2027 programmes. Consequently, further flexibility to allow quicker and more complete support from the Funds should be introduced to alleviate the burden on national budgets and facilitate the implementation of operations addressing both migratory challenges, as well as market disruptions of key economic sectors. For operations addressing migratory challenges resulting from the military aggression by the Russian Federation , i t is therefore appropriate , as part of that more complete support and as an exceptional measure , without prejudice to the rules that should apply under regular circumstances, to derogate from the requirement s linked to the location of the operation within a given Member State , given that the persons fleeing the war may move location more than once . In addition, given the continuation of the Russian aggression , an extension in time and increase of the newly established unit cost allow ed to cover the basic needs and support of persons granted temporary protection or other adequate protection under national law in accordance with Council Implementing Decision (EU) 2022/382 1 and Council Directive 2001/55/EC 2 in all Member States is justified . Furthermore, i t is also proposed to allow the remaining resources from the 2014-2020 Cohesion Fund to support operations falling within the scope of either the ERDF or the ESF, in accordance with the rules applicable to those Funds. This implies the extension to the Cohesion Fund of the flexibility for the use of ERDF and ESF resources introduced with Regulation (EU) 2022/562 of the European Parliament and of the Council 3 . Similarly, given that the eligibility for operations addressing the migratory challenges as a result of the military aggression by Russia was set as of 24 February 2022, the possibility to declare expenditure for such operations also when they are already physically completed or fully implemented should be made possible. These possibilities should also be extended to the European Maritime and Fisheries Fund ( EMFF ) as a result of the consequences of the war on the fishery and aquaculture sector. In the same spirit and with the intention of alleviating the administrative burden on Member States that are constantly adjusting to the evolving needs, transfers between thematic objectives within a priority and within a Fund and category of region should be made possible without the need for a decision of the Commission amending the programme. In addition, it is proposed to increase the ceiling of the flexibility between priorities for calculating the final balance of the contribution from the Funds. Moreover, for priorities promoting the socio-economic integration of third country nationals, including those dedicated to operations addressing migratory challenges as a result of the military aggression by the Russian Federation, the possibility of a co-financing rate up to 100% should be established in both programming periods, in order to support Member States in addressing the needs of displaced people both now and in the future. To reflect the easier conditions for phasing of projects between programming periods, it is also necessary to introduce targeted flexibilities for the 2021-2027 programming period. In order to assist all Member States in addressing the impact of the war with their 2021-2027 programmes, support from the ERDF, ESF+ and Cohesion Fund under the Investment for jobs and growth goal should be mobilised quickly by increasing the rate of pre-financing. In addition, the co-financing rate of up to 100% should be introduced for priorities promoting the socio-economic integration of third country nationals from the 2021-2027 programmes until mid-2024 and should be reviewed on the basis of how it has been used. Finally, the ceiling for the possibility to phase operations from the 2014-2020 programmes to those of the 2021-2027 programming period should be lowered to enlarge this possibility to more operations facing delays. Moreover, the second phase of operations under 2021-2027 programmes should be made eligible in accordance with 2014-2020 rules and managing authorities should be given the possibility to grant support to such operations directly, provided that a limited number of key conditions are met. Such phasing flexibility will not affect Member States’ obligations to comply with thematic concentration requirements and climate contribution targets. 
Revised version (Article 112 Determination of co-financing rates):
1. The decision approving a programme shall fix the co-financing rate and the maximum amount of support from the Funds for each priority. 2. For each priority, the Commission decision shall set out whether the co-financing rate for the priority is to be applied to either of the following: (a) total contribution, including public and private contribution; (b) public contribution. For each priority, the Commission decision shall set out whether the co-financing rate for the priority is to be applied to either of the following: (a) total contribution, including public and private contribution; (b) public contribution. The co-financing rate for the Investment for jobs and growth goal at the level of each priority shall not be higher than: (a) 85 % for the less developed regions; 85 % for the less developed regions; (b) 70 % for transition regions that were classified as less developed regions for the 2014-2020 period; 70 % for transition regions that were classified as less developed regions for the 2014-2020 period; (c) 60 % for the transition regions; 60 % for the transition regions; (d) 50 % for more developed regions that were classified as transition regions or had a GDP per capita below 100 % for the 2014-2020 period; 50 % for more developed regions that were classified as transition regions or had a GDP per capita below 100 % for the 2014-2020 period; (e) 40 % for the more developed regions. 40 % for the more developed regions. The co-financing rates set out under point (a) of the first subparagraph shall also apply to the outermost regions , including the additional allocation for the outermost regions. The co-financing rate for the Cohesion Fund at the level of each priority shall not be higher than 85 %. The ESF+ Regulation may establish higher co-financing rates in accordance with Articles 10 and 14 of that Regulation. The co-financing rate, applicable to the region where the territory or territories identified in the territorial just transition plans are located, for the priority supported by the JTF shall not be higher than: (a) 85 % for less developed regions; 85 % for less developed regions; (b) 70 % for transition regions; 70 % for transition regions; (c) 50 % for more developed regions. 50 % for more developed regions. 4. The co-financing rate for Interreg programmes shall be no higher than 80 % except in cases where the Interreg Regulation establishes higher co-financing rates for Interreg strand D and for external cross-border cooperation programmes. 5. The maximum co-financing rates listed under paragraphs 3 and 4 shall be increased by ten percentage points for priorities entirely delivered through community-led local development. 6. Technical assistance measures implemented at the initiative of, or on behalf of, the Commission may be financed at the rate of 100 %. 7. Where a separate priority is established within a programme to support operations promoting the socioeconomic integration of third country nationals, a co-financing rate of up to 100 % shall be applied to expenditure declared in payment applications until the end of the accounting year ending on 30 June 2024. After that date, the co-financing rate set out in the programme in accordance with the maximum co-financing rates listed under paragraphs 3 and 4 shall apply. The total amount programmed under such priorities in a Member State shall not exceed 5 % of the initial national allocation from the ERDF and the ESF+ combined. The Commission shall review the co-financing rate by 30 June 2024. At least 30 % of the financial allocation of such a separate priority shall be attributed to operations which have beneficiaries that are local authorities or civil society organisations operating in local communities. Member States shall report on the fulfilment of that condition in the final performance report required under Article 43. Where that condition is not fulfilled, reimbursement by the Commission under the priority concerned shall be reduced proportionately to ensure that that condition is respected when calculating the final balance to be paid to the programme.
Article 113 Delegation of powers as regards certain Annexes
The Commission is empowered to adopt delegated acts in accordance with Article 114 to amend the Annexes to this Regulation, except Annexes III, IV, XI, XIII, XIV, XVII and XXVI, in order to adapt them to changes occurring during the programming period.
Article 114 Exercise of the delegation
1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article. 2. The power to adopt delegated acts referred to in Articles 79(4), 94(4) and 95(4) and Article 113 shall be conferred on the Commission for an indeterminate period of time from 1 July 2021. 3. The delegation of power referred to in Articles 79(4), 94(4) and 95(4), Article 113 and Article 117(2) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force. 4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. 5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. 6. A delegated act adopted pursuant to Articles 79(4), 94(4) and 95(4), Article 113 and Article 117(2) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of 2 months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by 2 months at the initiative of the European Parliament or of the Council.
Article 115 Committee procedure
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.
Article 116 Review
The European Parliament and the Council shall review this Regulation by 31 December 2027 in accordance with Article 177 TFEU.
Article 117 Transitional provisions
1. Regulation (EU) No 1303/2013 or any other act applicable to the 2014–2020 programming period shall continue to apply only to operational programmes and operations supported by the ERDF, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund under that period. 2. The empowerment conferred in paragraph 3 of Article 5 of Regulation (EU) No 1303/2013 on the Commission to adopt a delegated act to provide for a European code of conduct on partnership shall remain in force for the 2021-2027 programming period. The delegation of power shall be exercised in accordance with Article 114 of this Regulation.
Article 118 Conditions for operations subject to phased implementation
The managing authority may proceed with the selection of an operation consisting of the second phase of an operation selected for support and started under Regulation (EU) No 1303/2013, provided that the following cumulative conditions are met: (a) the operation, as selected for support under Regulation (EU) No 1303/2013, has two phases identifiable from a financial point of view with separate audit trails; (b) the total cost of the operation referred to in point (a) exceeds EUR 5 000 000 ; (c) expenditure included in a payment application in relation to the first phase is not included under any payment applications in relation to the second phase; (d) the second phase of the operation complies with applicable law and is eligible for support from the ERDF, the ESF+, the Cohesion Fund or the EMFAF under the provisions of this Regulation or the Fund-specific Regulations; (e) the Member State commits to complete during the programming period and render operational the second and final phase in the final implementation report, or in the context of the European Maritime and Fisheries Fund in the last annual implementation report, submitted in accordance with Article 141 of Regulation (EU) No 1303/2013. 2. The provisions of this Regulation shall apply to the second phase of the operation.
Article 119 Entry into force
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 the Member States in accordance with the Treaties.