Article 1 Subject matter and scope
This Regulation lays down rules on the implementation and the financing of the general budget of the Union (‘the budget’) in 2020 in relation to the withdrawal of the United Kingdom from the Union without a withdrawal agreement and on actions under direct, indirect and shared management for which the eligibility is fulfilled through the membership of the United Kingdom in the Union at the date on which the Treaties cease to apply to and in the United Kingdom (‘date of withdrawal’). This Regulation applies without prejudice to the territorial cooperation programmes covered by Regulation (EU) 2019/491 of the European Parliament and of the Council ( 9 ) and to the learning mobility activities under the Erasmus+ programme covered by Regulation (EU) 2019/499 of the European Parliament and of the Council ( 10 ) .
Article 2 Conditions for eligibility
1. Where the United Kingdom, or a person or entity established in the United Kingdom, receive Union funding under an action carried out in direct, indirect or shared management pursuant to legal commitments signed or adopted before the date of withdrawal or, where applicable, in 2019 in application of Article 4 of Regulation (EU, Euratom) 2019/1197 and eligibility under that action depends on the membership of the United Kingdom in the Union, they shall continue to be eligible for Union funding for eligible expenditure incurred in 2020 following the date of withdrawal, if the following conditions are met, and as long as no decision as referred to in Article 3(2) has entered into force: (a) the United Kingdom, on 1 January 2020 or within 7 calendar days after the entry into force of this Regulation or after the date of its application, whichever is the later, has confirmed in writing to the Commission that it will contribute in euros, in accordance with the payment schedule laid down in this Regulation, the amount resulting from the following formula: UK OR DB2020 + UK GNI key DB2020 x (PA B2020 – PA DB2020); (b) the United Kingdom, on 20 January 2020 or within 20 calendar days after the entry into force of this Regulation or after the date of its application, whichever is the later, has paid on the account determined by the Commission the first payment which corresponds to [3,5] twelfths of the amount referred to in point (a) of this subparagraph; (c) the United Kingdom, on 1 January 2020 or within 7 calendar days after the entry into force of this Regulation or after the date of its application, whichever is the later, has confirmed the commitment in writing to the Commission that it will continue to accept the controls and audits which cover the entire period of the programmes and actions in accordance with the applicable rules; (d) the Commission has adopted the decision pursuant to Article 2(2) of Regulation (EU, Euratom) 2019/1197 and has not adopted a decision pursuant to Article 3(2) of Regulation (EU, Euratom) 2019/1197; and (e) the Commission has adopted the decision referred to in paragraph 4 of this Article confirming that the conditions referred to in points (a), (b) and (c) of this subparagraph have been fulfilled. The condition set out in point (d) of the first subparagraph shall only apply insofar as Regulation (EU, Euratom) 2019/1197 has become applicable before the end of the financial year 2019. 2. For the purposes of the formula set out in point (a) of the first subparagraph of paragraph 1, the following shall apply: (a) ‘UK OR DB2020’ shall be the amount displayed in the line ‘United Kingdom’ and the column ‘Total own resources’ of table 7 of the part ‘A. Introduction and financing of the general budget’ of the revenue part of the budget for 2020 set out in the draft budget of the European Union for the financial year 2020, as proposed on 5 July 2019; (b) ‘UK GNI key DB2020’ shall be the amount displayed in the line ‘United Kingdom’ and the column ‘GNI-based own resources’ of table 7 of the part ‘A. Introduction and financing of the general budget’ of the revenue part of the budget for 2020 set out in the draft budget of the European Union for the financial year 2020, as proposed on 5 July 2019, divided by the amount displayed in the line ‘Total’ of the same column; (c) ‘PA B2020 — PA DB2020’ shall be the difference between the amount displayed in the line ‘Total expenditure’ and the column ‘Budget 2020’ of the table ‘Expenditure’ of the part ‘A. Introduction and financing of the general budget’ of the revenue part of the budget of the European Union for the financial year 2020 as adopted, and the amount displayed in the same line and the same column of the same table of the same part of the draft budget of the European Union for the financial year 2020, as proposed on 5 July 2019; Notwithstanding the first subparagraph, if the budget 2020 is not definitively adopted by the date of entry into force of this Regulation or by the date of its application, whichever is the later, the ‘PA B2020 — PA DB2020’ shall be set at zero. 3. The amount referred to in point (a) of the first subparagraph of paragraph 1, after deduction of the amount of the first payment referred to in point (b) of the first subparagraph of paragraph 1, shall be broken down into equal instalments. The number of instalments shall correspond to the number of full months between the date of the first payment referred to in point (b) of the first subparagraph of paragraph 1 and the end of the year 2020. The amount referred to in point (a) of the first subparagraph of paragraph 1 shall be entered in the general budget of the Union as other revenue after deduction of a specific amount aiming at ensuring the budgetary distribution as provided in the column ‘Total own resources’ of the table referred to in point (a) of paragraph 2 and subject to dedicated practical arrangements to that effect. The commitment referred to in point (c) of the first subparagraph of paragraph 1 shall include in particular the cooperation in the protection of the financial interests of the Union and the acceptance of the rights of the Commission, the Court of Auditors and the European Anti-Fraud Office to access data and documents relating to Union contributions, and perform controls and audits. 4. The Commission shall adopt a decision on whether the conditions laid down in points (a), (b) and (c) of the first subparagraph of paragraph 1 have been fulfilled. 5. The Commission is empowered to adopt delegated acts in accordance with Article 7 concerning the extension of the deadlines set out in points (a), (b) and (c) of the first subparagraph of paragraph 1 of this Article. Where, in the case of a risk of serious disruption of the implementation and financing of the Union budget in 2020, imperative grounds of urgency so require, the procedure provided for in Article 8 shall apply to delegated acts adopted pursuant to this paragraph.
Article 3 Continuation of eligibility of United Kingdom and of persons and entities established in the United Kingdom
1. The eligibility of the United Kingdom, and persons and entities established in the United Kingdom, established in accordance with Article 2 shall continue in the year 2020 as long as the following conditions are fulfilled: (a) the United Kingdom has, following the first payment made in accordance with point (b) of the first subparagraph of Article 2(1), paid on the account determined by the Commission the monthly instalment referred to in Article 2(3) on the first working day of each month until August 2020; (b) the United Kingdom has paid on the account determined by the Commission on the first working day of September 2020 the remaining monthly instalments referred to in Article 2(3), unless the Commission communicates to the United Kingdom a different payment schedule for this payment by 31 August 2020; and (c) no significant deficiencies have been observed in the execution of the controls and audits referred to in point (c) of the first subparagraph of Article 2(1). 2. Where one or more of the conditions referred to in paragraph 1 are not fulfilled, the Commission shall adopt a decision to that effect. That decision shall be published in the Official Journal of the European Union . As of the date of entry into force of the decision referred to in the first subparagraph of this paragraph, the United Kingdom, and persons and entities established in the United Kingdom, shall cease to be eligible under paragraph 1 of this Article, and under Articles 2 and 4, actions shall cease to be eligible under Article 6(2), and Article 5 shall cease to apply. 3. The Commission is empowered to adopt delegated acts in accordance with Article 7 concerning a different payment schedule for the payments referred to in points (a) and (b) of paragraph 1 of this Article. Where, in the case of a risk of a serious disruption of the implementation and financing of the Union budget in 2020, imperative grounds of urgency so require, the procedure provided for in Article 8 shall apply to delegated acts adopted pursuant to this paragraph.
Article 4 Participation in calls and eligibility of resulting expenditures
1. As of the date of entry into force of the decision referred to in point (e) of the first subparagraph of Article 2(1), and as long as no decision as referred to in Article 3(2) has entered into force, the United Kingdom, or persons and entities established in the United Kingdom, shall be eligible in 2020 for the purposes of conditions set in any calls, tenders, contests or any other procedure which may lead to financing from the Union’s budget to the same extent as Member States and persons or entities established in the Member States, and be eligible for Union funding for eligible expenditure incurred in 2020. Notwithstanding the first subparagraph: (a) contracts signed in application of Title VII of Regulation (EU, Euratom) 2018/1046 (‘the Financial Regulation’) until the end of 2020 shall be implemented in accordance with their terms and until their end date; (b) expenditure in respect of the United Kingdom direct payments scheme for the claim year 2020 pursuant to Regulation (EU) No 1307/2013 of the European Parliament and of the Council ( 11 ) shall not be eligible for Union funding. 2. Notwithstanding paragraph 1, the United Kingdom, or persons or entities established in the United Kingdom, shall not be eligible under Regulation (EU) No 1309/2013, as amended by Regulation (EU) 2019/1796, for actions covering workers made redundant and self-employed persons whose activity has ceased as a consequence of a withdrawal without an agreement nor under Regulation (EC) No 2012/2002, as amended for actions covering serious financial burden inflicted on Member States directly imputable to a withdrawal without a withdrawal agreement. 3. The first subparagraph of paragraph 1 shall not apply: (a) where the participation is limited to the Member States and persons or entities established in the Member States for security reasons; (b) to financial operations carried out within financial instruments managed directly or indirectly under Title X of the Financial Regulation, or to financial operations guaranteed by the Union budget under the European Fund for Strategic Investments (EFSI) established by Regulation (EU) 2015/1017 of the European Parliament and of the Council ( 12 ) or under the European Fund for Sustainable Development (EFSD) established by Regulation (EU) 2017/1601 of the European Parliament and of the Council ( 13 ) .
Article 5 Other necessary adaptations
If the conditions laid down in Article 2(1) are fulfilled, and as long as no decision as referred to in Article 3(2) has entered into force, for the purpose of the application of any rules governing the actions carried out under the legal commitments referred to in the first subparagraph of Article 2(1), the calls referred to in Article 4 and the actions carried out under the legal commitments signed or adopted following the calls referred to in Article 4, which are necessary to give effect to Articles 2(1) and 4(1), the United Kingdom shall be treated as a Member State, subject to this Regulation. However, the United Kingdom, or United Kingdom representatives, shall not be allowed to participate in any committee assisting in the management under the rules of the relevant basic act, or expert groups or other bodies advising on the programmes or on the actions, with the exception of monitoring or similar committees specific for the particular operational, national or similar programmes in shared management.
Article 6 Eligibility of actions that relate to the United Kingdom, where the Member States or persons or entities established in the Member States receive the Union funds
1. Actions under direct, indirect and shared management for which the Member States, or persons or entities established in the Member States, receive Union funds under legal commitments signed or adopted before the date of withdrawal or, where applicable, in 2019 in application of Article 4 of Regulation (EU, Euratom) 2019/1197, and for which the eligibility is fulfilled through the membership of the United Kingdom in the Union at the date of withdrawal or, where applicable, through the eligibility of the United Kingdom in application of Article 4 of Regulation (EU, Euratom) 2019/1197, shall be eligible for Union funding for eligible expenditure incurred in 2020 as of the date of withdrawal. 2. Actions for which the eligibility condition of a minimum number of participants from different Member States in a consortium is fulfilled at the date of withdrawal through a member of the consortium which is a person or entity established in the United Kingdom, shall be eligible for Union funding for eligible expenditure incurred in 2020 where the conditions set out in Article 2(1) are fulfilled and as long as no decision as referred to in Article 3(2) has entered into force. 3. The non-fulfilment of the condition referred to in point (c) of the first subparagraph of Article 2(1) or a Commission decision as referred to in Article 3(2) concerning the non-fulfilment of conditions referred to in point (c) of Article 3(1), shall be taken into account by the responsible authorising officer for the purposes of assessment of a possible serious deficiency in complying with the main obligations in the implementation of the legal commitment referred to in paragraph 1 of this Article.
Article 7 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 2 and 3 shall be conferred on the Commission for an indeterminate period of time from the date of entry into force of this Regulation. 3. The delegation of power referred to in Articles 2 and 3 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 2 and 3 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of one month of notification of that act to the European Parliament and to 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 one month at the initiative of the European Parliament or of the Council.
Article 8 Urgency procedure
1. Delegated acts adopted under this Article shall enter into force without delay and shall apply as long as no objection is expressed in accordance with paragraph 2. The notification of a delegated act to the European Parliament and to the Council shall state the reasons for the use of the urgency procedure. 2. Either the European Parliament or the Council may object to a delegated act in accordance with the procedure referred to in Article 7(6). In such a case, the Commission shall repeal the act immediately following the notification of the decision to object by the European Parliament or by the Council.
Article 9 Transitional provision
By way of derogation from point (b) of the second subparagraph of Article 4(1) of Regulation (EU, Euratom) 2019/1197, expenditure in respect of the United Kingdom direct payment scheme for the claim year 2019 pursuant to Regulation (EU) No 1307/2013 shall be eligible for Union funding after the Commission adopted the decision referred to in Article 2(4) of this Regulation, unless it adopts a decision referred to in Article 3(2) of this Regulation.
Article 10 Entry into force and application
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union . It shall apply from the day following that on which the Treaties cease to apply to and in the United Kingdom pursuant to Article 50(3) of the TEU. However, this Regulation shall not apply if a withdrawal agreement concluded with the United Kingdom in accordance with Article 50(2) TEU has entered into force by the date referred to in the second paragraph of this Article.